3. SEGMENT INFORMATION

 

The Company operates as a single reportable segment. The Company’s CODM, its Chief Executive Officer ("CEO"), reviews financial information on a consolidated basis to make operating decisions, assess financial performance, and allocate resources.

 

In evaluating performance, the CODM primarily assesses operating income (loss) and net income (loss), as reported on the consolidated statement of operations and regularly reviews certain significant expense categories, including royalty expense; license, participation and technology costs; other direct operation costs; payroll and related expenses; professional services; advertising and marketing; amortization; and other general and administrative. These expense categories are considered key factors in managing the business and guiding resource allocation decisions.


This approach ensures that the Company’s financial reporting reflects the way management monitors expenses and overall financial performance.


The following table presents financial information with respect to the Company’s single operating segment for the years ended March 31, 2025, and 2024:
 

 

 

For the Fiscal Year Ended
March 31

 

 

 

2025

 

 

2024

 

Revenues

 

$

78,181

 

 

$

49,131

 

Less:

 

 

 

 

 

 

Royalty expense

 

 

24,243

 

 

 

7,693

 

License, participation and technology costs

 

 

7,118

 

 

 

4,582

 

Other direct operating costs

 

 

6,182

 

 

 

6,837

 

Payroll and related

 

 

16,900

 

 

 

17,471

 

Professional services

 

 

3,112

 

 

 

3,460

 

Advertising and marketing

 

 

1,385

 

 

 

582

 

Amortization and depreciation

 

 

3,797

 

 

 

3,771

 

Other general and administrative

 

 

7,520

 

 

 

6,410

 

Impairment of goodwill

 

 

 

 

 

14,025

 

Total operating expenses

 

 

70,257

 

 

 

64,831

 

Operating income (loss)

 

 

7,924

 

 

 

(15,700

)

Interest expense

 

 

(4,365

)

 

 

(1,066

)

Other income (expense)

 

 

311

 

 

 

(4,489

)

Income (loss) before income taxes

 

 

3,870

 

 

 

(21,255

)

Provision for income taxes

 

 

(106

)

 

 

(10

)

Net income (loss)

 

$

3,764

 

 

$

(21,265

)

Historical Timeline

Fiscal YearFiled
2025Jun 30, 2025Showing above
2023Jun 29, 2023
2022Jul 1, 2022
2021Jul 30, 2021
2020Jul 6, 2020
2019Jul 16, 2019
2018Jun 26, 2018
2017Jun 29, 2017
2016Jul 14, 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.