19.

SEGMENT AND GEOGRAPHICAL DISCLOSURES

 

Effective for the fiscal year ended November 30, 2025, the Company adopted ASU 2023‑07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. As a result, the Company expanded its segment disclosures to provide information about significant segment channel expenses, other segment items, and the measures used by the Company’s Chief Operating Decision Maker (“CODM”) in evaluating segment performance. Beginning in fiscal 2025, the Company manages its operations through two reportable channels: (1) Direct‑to‑Consumer (“DTC”) – includes sales through the Company’s e‑commerce websites, Amazon storefronts, and Company‑operated retail stores, and (2) Wholesale ("dealer/distributor") – includes sales to distributors, law‑enforcement agencies, retailers, and international distributors.

 

The CEO, who is also the CODM, evaluates sales channel performance primarily based on sales channel revenue less cost of sales and gross margin. Operating expenses, including marketing and variable expenses, executive compensation, public company costs, certain IT infrastructure costs, share‑based compensation, and items not allocable to a specific segment, are reported as Other Items. No segment‑specific balance sheet information is regularly reviewed by the CODM; therefore, the Company does not report segment assets or segment liabilities.

 

The tables below (in thousands) summarize the Company’s revenue, long-lived assets and total assets as of November 30, 2025 and 2024, respectively by geographic region. The Company’s long-lived assets consist of intangible assets, property and equipment, right of use assets, and deposits for equipment:

 

Revenue

 

U.S./Mexico

  

South Africa

  

Europe/South America/Asia

  

Canada

  

Total

 

2025

 $106,128  $1,365  $8,114  $2,513  $118,120 

2024

 $78,932  $198  $4,156  $2,470  $85,756 

 

 

Long-lived assets

 

US

  

South Africa

  

Total

 

2025

 $14,256  $93  $14,349 

2024

 $10,966  $896   11,862 

 

 

Total Assets

 

US

  

South Africa

  

Canada

  

Total

 

2025

 $80,160  $3,990  $338  $84,488 

2024

 $66,794  $5,128  $  $71,922 

 

The table below (in thousands) summarize the Company’s revenue by reportable sales channel as of November 30, 2025:

 

  

Year Ended

 
  

November 30, 2025

 
             
  

DTC

  

Wholesale

  

Total

 

Revenue

 $76,572  $41,548  $118,120 

COS

  26,493   20,157   46,650 

Gross Margin

 $50,079  $21,391  $71,470 

Gross Margin %

  65.4%  51.5%  60.5%
             

Operating Expenses

         $59,632 
             

Profit from operations

         $11,838 

Operating Margin %

          10.0%

 

The table below (in thousands) summarize the Company’s revenue by reportable sales channel as of November 30, 2024:

 

  

Year Ended

 
  

November 30, 2024

 
             
  

DTC

  

Wholesale

  

Total

 

Revenue

 $65,856  $19,900  $85,756 

COS

  22,863   10,121  $32,984 

Gross Margin

 $42,993  $9,779  $52,772 

Gross Margin %

  65.3%  49.1%  61.5%
             

Operating Expenses

         $46,101 
             

Profit from operations

         $6,671 

Operating Margin %

          7.8%

 

Historical Timeline

Fiscal YearFiled
2025Feb 5, 2026Showing above
2024Feb 7, 2025
2023Feb 14, 2024
2022Feb 9, 2023
2021Feb 11, 2022
2020Feb 26, 2021
2019May 18, 2020
2018Mar 1, 2019
2017Mar 15, 2018
2016Mar 13, 2017
2015Feb 29, 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.