Note 8 – Segment Reporting

 

We operate as one operating segment focused on cloud-based AI video surveillance and remote guarding security services. Operating segments are defined as components of an enterprise for which separate financial information is available for evaluation by the CODM in deciding how to allocate resources and assess performance. Our CODM evaluates our financial information and resources and assesses the performance of these resources on a consolidated basis. There is no expense or asset information supplemental to the information disclosed in these financial statements that is regularly provided to the CODM. The allocation of resources and assessment of performance of the operating segment is based on net income as shown in our statement of operations. The CODM considers net income in the annual forecasting process and reviews actual results when making decisions about allocating resources. Since we operate as one operating segment, financial segment information, including profit or loss and asset information, can be found in these financial statements.

          
   Surveillance Segment 
   Year ended December 31, 
   2025   2024 
Revenue  $5,066   $1,364 
Less:          
COGS   3,577    990 
R&D   1,883    1,266 
Sales & Marketing   2,882    1,813 
G&A   2,439    1,241 
Non Cash Expenses   2,432    2,245 
Other (settlements, interest, etc)   317    344 
           
Segment net income/(loss)   (8,465)   (6,535)
           
Reconciliation of profit or loss          
Adjustments and reconciling items        
Consolidated net income/(loss)  $(8,465)  $(6,535)

 

Major Customers

 

For the year ended December 31, 2025, two customers each individually accounted for 10% or more of the Company's consolidated revenues. Revenue from Hasta Capital was approximately $861,000 (17% of total revenues) and revenue from RV Mobile Power was approximately $861,000 (17% of total revenues). Both customers are reported within the Company's single reportable segment. No other customer accounted for 10% or more of total revenues during the year ended December 31, 2025.

 

For the year ended December 31, 2024, two customers each individually accounted for 10% or more of the Company's consolidated revenues. Revenue from SunRoad Enterprises was approximately $246,000 (18% of total revenues) and revenue from Avenue 5 was approximately $150,000 (11% of total revenues). Both customers are reported within the Company's single reportable segment.

 

Historical Timeline

Fiscal YearFiled
2025Mar 31, 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.