ACORN ENERGY, INC. Segments Disclosure
NOTE 12—SEGMENT REPORTING AND GEOGRAPHIC INFORMATION
(a) General Information
As of December 31, 2025, the Company continues to operate in two reportable operating segments, PG and CP, both of which are performed through the Company’s OmniMetrix subsidiary. See Note 1, Nature of Operations, for a description of these segments.
The Company’s reportable segments are strategic business units, offering different products and services and are managed separately by the CODM as each business requires different technology and marketing strategies.
The CODM is the Company’s Chief Executive Officer (CEO).
(b) Information about profit or loss and assets
The accounting policies of all the segments are those described in the summary of significant accounting policies. The Company evaluates performance by segment based on revenue (driven by the number of connections), gross profit and net income or loss before taxes.
The Company does not systematically allocate assets to the divisions of the subsidiaries constituting its consolidated group, unless the division constitutes a significant operation. Accordingly, where a division of a subsidiary constitutes a segment that does not meet the quantitative thresholds of applicable accounting principles, depreciation expense is recorded against the operations of such segment, without allocating the related depreciable assets to that segment. However, where a division of a subsidiary constitutes a segment that does meet the quantitative thresholds, related depreciable assets, along with other identifiable assets, are allocated to such division.
Segment expense that is routinely provided to the CODM is COGS and R&D expense. R&D expense is allocated to each segment based on estimated time on projects within the segment. SG&A expense and interest income is allocated to each segment based on the percentage of segment revenue to total revenue instead of being specifically identified to each segment since the Company’s resources have a high level of shared utilization between the segments. Further, the CODM does not review the assets by segment.
The following tables represent segmented data for the years ended December 31, 2025 and 2024 (in thousands).
| PG | CP | Total | ||||||||||
| Year ended December 31, 2025: | ||||||||||||
| Revenues from external customers | $ | 10,741 | $ | 737 | $ | 11,478 | ||||||
| COGS | 2,397 | 266 | 2,663 | |||||||||
| Segment gross profit | 8,344 | 471 | 8,815 | |||||||||
| R&D expense | 1,022 | 72 | 1,094 | |||||||||
| SG&A expense | 4,056 | 296 | 4,352 | |||||||||
| Segment operating income | 3,266 | 103 | 3,369 | |||||||||
| Interest income, net | 110 | 8 | 118 | |||||||||
| Segment income before income taxes | $ | 3,376 | $ | 111 | $ | 3,487 | ||||||
| Year ended December 31, 2024: | ||||||||||||
| Revenues from external customers | $ | 9,882 | $ | 1,104 | $ | 10,986 | ||||||
| COGS | 2,548 | 439 | 2,987 | |||||||||
| Segment gross profit | 7,334 | 665 | 7,999 | |||||||||
| R&D expense | 851 | 161 | 1,012 | |||||||||
| SG&A expense | 3,609 | 421 | 4,030 | |||||||||
| Segment operating income | 2,874 | 83 | 2,957 | |||||||||
| Interest income, net | 64 | 6 | 70 | |||||||||
| Segment income before income taxes | $ | 2,938 | $ | 89 | $ | 3,027 | ||||||
(c) The following tables represent a reconciliation of the segment data to the consolidated statement of operations and balance sheet data for the years ended and as of December 31, 2025 and 2024 (in thousands):
Year ended December 31, | ||||||||
| 2025 | 2024 | |||||||
| Total net income before income taxes for reportable segments | $ | 3,487 | $ | 3,027 | ||||
| Unallocated cost of corporate headquarters, net of interest income | (1,377 | ) | (1,017 | ) | ||||
| Consolidated net income before income taxes | $ | 2,110 | $ | 2,010 | ||||
As of December 31, | ||||||||
| 2025 | 2024 | |||||||
| Assets: | ||||||||
| Total assets for OmniMetrix subsidiary | $ | 8,294 | $ | 5,901 | ||||
| Assets of corporate headquarters | 141 | 260 | ||||||
| Deferred tax assets | 4,899 | 4,435 | ||||||
| Total consolidated assets | $ | 13,334 | $ | 10,596 | ||||
Year ended December 31, | ||||||||
| 2025 | 2024 | |||||||
| Revenues based on location of customer: | ||||||||
| United States | $ | 11,437 | $ | 10,955 | ||||
| Other | 41 | 31 | ||||||
| $ | 11,478 | $ | 10,986 | |||||
All of the Company’s long-lived assets are located in the United States.
(d) Revenues and Accounts Receivable Balances from Major Customers (in thousands):
| Invoiced Sales | Accounts Receivable | |||||||||||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||||||||||||||||||
| Customer | Total | % | Total | % | Balance | % | Balance | % | ||||||||||||||||||||||||
| A | $ | 3,045 | 28 | % | $ | 1,843 | 19 | % | $ | 374 | 42 | % | $ | 1,188 | 61 | % | ||||||||||||||||
| The revenue and accounts receivable of customer A are within the PG segment. |
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 5, 2026 | Showing above |
| 2024 | Mar 6, 2025 | |
| 2023 | Mar 7, 2024 | |
| 2022 | Mar 16, 2023 | |
| 2021 | Mar 31, 2022 | |
| 2020 | Mar 16, 2021 | |
| 2019 | Mar 25, 2020 | |
| 2018 | Mar 27, 2019 | |
| 2017 | Mar 26, 2018 | |
| 2016 | Mar 29, 2017 | |
| 2015 | Mar 30, 2016 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.