PRODUCT AND GEOGRAPHIC INFORMATIONWe focus our efforts on the sale of LED lighting and controls products in the commercial market and MMM. Our products are sold primarily in the United States through a combination of direct sales employees, lighting agents, independent sales representatives and distributors. We currently operate in a single industry segment, developing and selling our LED lighting products and controls into the MMM and commercial markets.
International sales increased to 17% of total net sales in 2025 (compared to 0% in 2024), driven primarily by a $0.5 million UPS project delivered to a customer in Taiwan (representing 15% of total sales), as well as additional LED lighting projects delivered in other international markets.
The following table provides a breakdown of product net sales for the years indicated (in thousands):
| | | | | | | | | | | | | |
| | Year ended December 31, |
| | 2025 | | 2024 | | |
| Commercial products | $ | 1,536 | | | $ | 1,390 | | | |
| MMM products | 1,989 | | | 3,470 | | | |
| Setup Service | 35 | | | — | | | |
| Total net sales | $ | 3,560 | | | $ | 4,860 | | | |
A geographic summary of net sales is as follows (in thousands):
| | | | | | | | | | | | | |
| | For the year ended December 31, |
| | 2025 | | 2024 | | |
| United States | $ | 2,967 | | | $ | 4,848 | | | |
| International | 593 | | | 12 | | | |
| Total net sales | $ | 3,560 | | | $ | 4,860 | | | |
At December 31, 2025 and 2024, approximately 100% of our long-lived assets, which consist of property and equipment, were located in the United States.
SEGMENT INFORMATION
Operating segments are defined as components of an entity for which discrete financial information is available that is regularly reviewed by the Chief Operating Decision Maker (“CODM”) in deciding how to allocate resources to an individual segment and in assessing performance. The Company’s Chief Executive Officer is the CODM. The CODM reviews financial information presented at a consolidated level on a recurring basis for purposes of making operating decisions, allocating resources, and evaluating financial performance. The Company’s operations are organized into one operating and one reportable segment, which includes both Commercial and MMM product lines that, although discussed separately and may exhibit counter-cyclical trends, are managed and reported together.
The CODM allocates resources and assesses performance of the Company based on net income (loss), as reported on the Consolidated Statement of Operations, which as the segment measure of profit and loss that is based on U.S. GAAP, is the required segment measure.
The CODM reviews these measures (i) to evaluate the Company's operating results and the effectiveness of business strategies, and (ii) internally as benchmarks to compare the Company's performance to its competitors. Additionally, the Company believes these measures are important to evaluate the performance and profitability of our products, individually and in the aggregate.
The CODM does not review segment assets and segment expenses at a level different than what is reported in the Company's Consolidated Balance Sheet and Consolidated Statement of Operations. Additionally, the CODM regularly receives information about the Company's capital expenditures which are reported in the Company's Consolidated Statement of Cash Flows as purchase of property and equipment under investing activities.