Note 17. Segment Information

Due to similarities of its products, methods of production and it's management and administrative structure, the Company operates as a single operating and reportable segment.

The following table presents segment revenue, gross profit, net loss and certain operating financial results of the Company’s single operating segment for the periods presented, as viewed by the CODM:

 

 

Years Ended December 31,

 

 

2025

 

 

2024

 

Sales

$

51,779

 

 

$

60,599

 

Less cost of goods sold:

 

 

 

 

 

Other cost of goods sold

 

28,504

 

 

 

34,899

 

Stock-based compensation

 

216

 

 

 

311

 

Amortization of intangible assets

 

355

 

 

 

355

 

Depreciation

 

159

 

 

 

232

 

Gross profit

 

22,545

 

 

 

24,802

 

Gross margin

 

43.5

%

 

 

40.9

%

Less research and development:

 

 

 

 

 

Other research and development expenses

 

8,468

 

 

 

10,207

 

Stock-based compensation expense

 

715

 

 

 

1,379

 

Severance and exit costs

 

112

 

 

 

 

Depreciation

 

247

 

 

 

278

 

Total research and development

 

9,542

 

 

 

11,864

 

Less sales and marketing:

 

 

 

 

 

Other sales and marketing expenses

 

8,944

 

 

 

8,811

 

Stock-based compensation expense

 

226

 

 

 

379

 

Severance and exit costs

 

141

 

 

 

 

Depreciation

 

14

 

 

 

13

 

Total sales and marketing

 

9,325

 

 

 

9,203

 

Less general and administrative:

 

 

 

 

 

Other general and administrative expenses

 

7,398

 

 

 

7,459

 

Stock-based compensation expense

 

1,807

 

 

 

2,566

 

Amortization of intangible assets

 

2,880

 

 

 

2,613

 

Severance and exit costs

 

33

 

 

 

 

Depreciation

 

43

 

 

 

25

 

Total general and administrative

 

12,161

 

 

 

12,663

 

Loss from operations

 

(8,483

)

 

 

(8,928

)

Plus employee retention credit refund

 

1,989

 

 

 

 

Interest income, net

 

351

 

 

 

115

 

Income tax benefit (expense)

 

(73

)

 

 

152

 

Less other segment expenses (1)

 

210

 

 

 

27

 

Net loss

$

(6,426

)

 

$

(8,688

)

(1) Other segment expenses are primarily foreign currency transaction remeasurements and franchise taxes.

 

The CODM reviews the segment assets that are reported in the Consolidated Balance Sheets.

Historical Timeline

Fiscal YearFiled
2025Feb 26, 2026Showing above
2024Feb 27, 2025

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.