CREATIVE REALITIES, INC. Segments Disclosure

NOTE 16: SEGMENT REPORTING

 

We currently operate in one reportable segment, marketing technology solutions. The marketing technology solutions segment generates revenue through four primary sources which includes (1) hardware sales from reselling digital signage hardware from original equipment manufacturers, (2) services from helping customers design, deploy, and manage their digital signage and ad-based networks, (3) recurring subscription licensing and support revenue from our digital signage and ad-tech software platforms, which are generally sold via a SaaS model, and (4) selling digital out-of-home (DOOH) advertising on infrastructure it owns or operates at retail malls, shopping centers, office buildings, and other commercial properties.

 

Our Chief Executive Officer is our chief operating decision maker (the “CODM”). Our CODM evaluates performance and makes operating decisions about allocating resources based on financial data presented on a consolidated basis, accompanied by information about revenue disaggregated by service. Our CODM uses the segment information primarily to evaluate the profitability and strategic growth potential of the segment. The reported measures of profit or loss are benchmarked against historical performance and market expectations. Based on this analysis, the CODM determines whether or not to invest in new technology or reallocate operating expenses - namely personnel. In addition, the CODM reviews supplementary metrics such as disaggregated revenue as disclosed in Note 4, Revenue Recognition, and customer growth to ensure that our strategic decisions are aligned with long-term performance goals.

 

The measure used by our CODM to assess performance and make operating decisions is net loss as reported on our consolidated statements of operations. Significant segment expenses are reported as total expenses on the consolidated statements of operations. Segment assets are disclosed in the consolidated balance sheets.

 

Significant Customers

 

We had one customer that accounted for 10% of revenue for the year ended December 31, 2025. Three customers accounted for 15%, 13% and 10% of revenue for the year ended December 31, 2024.

 

We had one customer that accounted for 12% of accounts receivable as of December 31, 2025 and one customer that accounted for 16% of accounts receivable as of December 31, 2024.

 

Revenues by Geographical Area

 

The following table summarizes our revenue recognized in the consolidated statements of operations by geographical area:

 

		For the Years Ended
		December 31,
		2025				2024
Revenues by Geographical Area:
United States		$	45,304			$	50,854
Canada			11,928				-
Total Revenues		$	57,232			$	50,854

 

Significant Vendors

 

We had three vendors that accounted for 30%, 18% and 10% of outstanding accounts payable as of December 31, 2025 and two vendors that accounted for 27% and 10% of outstanding accounts payable as of December 31, 2024.

 

Long Lived Assets by Geographical Region

 

The following table sets forth our long-lived assets by geographic area, which consists of property and equipment, net and operating and finance lease right-of-use assets:

 

		December 31,
		2025				2024
United States		$	1,950			$	1,108
Canada			25,762				-
Total		$	27,712			$	1,108