14. Segment Reporting

The following table presents financial information with respect to the Company’s single operating segment, including significant segment expenses, which are regularly provided to the CODM and included within consolidated operating loss:

 

 

Year Ended December 31,

 

 

2025

 

 

2024

 

Revenues

 

$

28,508,000

 

 

$

30,776,000

 

Cost of revenue

 

 

15,323,000

 

 

 

30,396,000

 

Operating expenses

 

 

 

 

 

 

Salaries, wages, and benefits

 

 

24,353,000

 

 

 

51,136,000

 

Contracted services

 

 

9,304,000

 

 

 

18,892,000

 

Non-inventory materials

 

 

953,000

 

 

 

2,716,000

 

Consulting

 

 

1,203,000

 

 

 

4,659,000

 

Rent and facilities

 

 

2,553,000

 

 

 

4,095,000

 

Depreciation and amortization

 

 

7,161,000

 

 

 

8,826,000

 

Travel and entertainment

 

 

619,000

 

 

 

1,654,000

 

Administrative and other

 

 

378,000

 

 

 

12,385,000

 

Total operating expenses

 

 

46,524,000

 

 

 

104,363,000

 

Loss from operations

 

$

(33,339,000

)

 

$

(103,983,000

)

Administrative and other primarily includes operating expenses for gain on lease termination/modification, intangible assets and other long-lived assets impairment, changes in fair value of contingent consideration, disposals of property, plant, and equipment, and taxes, interest, and fees.

Historical Timeline

Fiscal YearFiled
2025Mar 23, 2026Showing above
2024Mar 31, 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.