15. Segment and Geographic Information

The Company’s CODM is the CEO and reviews the financial information presented on a consolidated basis for purposes of making operating decisions, assessing financial performance, and allocating resources. The CODM uses revenue, gross margin, operating expenses and net loss by its single operating and reportable segment to make strategic business decisions.

The following table sets forth the Company’s disaggregation of operating expenses which were reviewed by the CODM for the years ended December 31, 2025 and 2024 (in thousands):

 

2025

 

 

2024

 

Research and development

 

$

38,486

 

 

$

37,168

 

Sales and marketing

 

 

10,570

 

 

 

10,731

 

General and administrative

 

 

22,582

 

 

 

17,005

 

Total operating expenses

 

$

71,638

 

 

$

64,904

 

The following is a summary of net sales for the years ended December 31, 2025 and 2024, based on the country to which the Company's products were shipped, which may be different from the geographic locations of the ultimate end customers (in thousands):

 

2025

 

 

2024

 

 

 

 

 

 

 

 

China

 

 

30,664

 

 

 

54,728

 

Taiwan

 

 

25,835

 

 

 

18,190

 

Singapore

 

 

7,306

 

 

 

 

Rest of the World*

 

 

8,709

 

 

 

3,149

 

Total

 

$

72,514

 

 

$

76,067

 

*Other countries individually less than 10%

 

 

 

 

 

 

The following illustrates property, equipment and software, net, and right-of-use assets, net by geographic locations based on physical location (in thousands):

 

2025

 

 

2024

 

Taiwan

 

$

3,515

 

 

$

2,139

 

China

 

 

633

 

 

 

593

 

North America

 

 

593

 

 

 

786

 

Rest of the World*

 

 

34

 

 

 

26

 

Total

 

$

4,775

 

 

$

3,544

 

*Other countries individually less than 10%

 

 

 

 

 

 

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.