SEGMENTS

9 Months Ended

Sep. 30, 2021

Segment Reporting [Abstract]

SEGMENTS

NOTE 18 – SEGMENTS

The Company has two reportable segments:

● Beverages. Includes four types of beverage products: (i) hemp-infused energy drinks, (ii) CBD-infused energy water, (iii) CBD-infused high-alkaline water, and (iv) lemonade beverages, as well as apparel with the Kona Gold logo. The Beverages Segment includes all of Kona’s and HighDrate’s operations. The Company considers this a single operating segment for purposes of presenting financial information and evaluating performance. As such, the accompanying Consolidated Financial Statements present financial information in a format that is consistent with the internal financial information used by management. We do not accumulate revenues by product classification and, therefore, it is impractical to present such information.

● Distribution. Includes the distribution of premium beverages and snacks in key markets. These markets include over 900 accounts in grocery stores, convenience stores, smoke shops, vape shops, and specialty stores located in Florida and South Carolina. In addition to distributing the Company’s own beverage products, the Company also distributes other products, including alkaline waters, beverages for kids, energy drinks, fruit flavored sodas, low-carb lemonade, healthy aloe juice drinks, and CBD-infused jellybeans, all of which complement the Company’s current product offerings. The Distribution Segment includes all of Gold Leaf’s operations.

Amounts that do not relate to a reportable segment have been allocated to “Corporate and Eliminations.”

The following tables present information about our reportable segments.

	September 30, 2021			December 31, 2020
CURRENT ASSETS:
Beverages Segment	$	1,386,003		$	824,835
Distribution Segment		(253,117	)		(146,894	)
Corporate and eliminations		427,563			105,671
Total Current Assets	$	1,560,449		$	783,612
NON-CURRENT ASSETS:
Beverages Segment	$	2,216,976		$	1,063,074
Distribution Segment		638,620			85,546
Corporate and eliminations		7,968			8,233
Total Non-Current Assets	$	2,683,564		$	1,156,853
CURRENT LIABILITIES:
Beverages Segment	$	1,899,473		$	1,879,305
Distribution Segment		144,926			72,576
Corporate and eliminations		3,796,611			1,424,367
Total Current Liabilities	$	5,841,010		$	3,376,248
NON-CURRENT LIABILITIES:
Beverages Segment	$	2,993,658		$	2,616,018
Distribution Segment		654,434			192,350
Corporate and eliminations		—			—
Total Non-Current Liabilities	$	3,648,092		$	2,808,368

	Three Months Ended September 30,						Nine Months Ended September 30,
	2020			2021			2020			2021
REVENUES, NET OF SALES, RETURNS, AND ALLOWANCES:
Beverages Segment	$	245,918		$	207,763		$	613,016		$	1,018,041
Distribution Segment		108,719			374,247			228,881			883,825
Corporate and Eliminations		(41,928	)		(36,635	)		(100,085	)		(102,867	)
Total Revenues, Net of Sales, Returns, and Allowances	$	312,709		$	545,375		$	741,812		$	1,798,999
COST OF REVENUES:
Beverages Segment	$	160,289			201,413			417,159			864,872
Distribution Segment		83,912			258,151			173,638			622,210
Corporate and Eliminations		(22,090	)		(16,798	)		(67,023	)		(43,355	)
Total Cost of Revenues	$	222,111		$	442,766		$	523,774		$	1,443,727
OPERATING EXPENSES:
Beverages Segment	$	339,688		$	514,995		$	1,380,612		$	1,308,456
Distribution Segment		70,385			152,578			198,547			353,239
Corporate and Eliminations		90,160			88,537			260,845			307,146
Total Operating Expenses	$	500,233		$	756,110		$	1,840,004		$	1,968,841
OTHER INCOME / (EXPENSE):
Beverages Segment	$	(19,455	)	$	(34,964	)	$	(35,887	)	$	11,964
Distribution Segment		(1,173	)		(1,708	)		3,932			4,041
Corporate and Eliminations		(79,178	)		(1,540,542	)		(517,371	)		(2,825,835	)
Total Other Income / (Expense)	$	(99,806	)	$	1,577,214		$	(549,326	)	$	(2,809,830	)
NET LOSS:
Beverages Segment	$	(273,514	)	$	(543,609	)	$	(1,220,642	)	$	(1,167,251	)
Distribution Segment		(46,751	)		(38,190	)		(139,372	)		(87,583	)
Corporate and Eliminations		(189,176	)		(1,648,916	)		(811,278	)		(3,168,565	)
Total Net Loss	$	(509,441	)	$	(2,230,715	)	$	(2,171,292	)	$	(4,423,399	)