Genasys Inc. Segments Disclosure
19. SEGMENT INFORMATION
The Company is engaged in the design, development and commercialization of critical communications hardware and software solutions designed to alert, inform, and protect. The Company operates in two business segments: Hardware and Software and its principal markets are North and South America, Europe, the Middle East and Asia.
As reviewed by the CODM, the Company evaluates the performance of each segment based on sales, gross margin, operating income (loss), certain expenses including sales and marketing expense, research and development expense, depreciation and amortization expense, and stock-based compensation expense to
allocate resources in the annual planning process. Cash and cash equivalents, marketable securities, accounts receivable, inventory, property and equipment, deferred tax assets, goodwill and intangible assets are primary assets identified by segment. The operating segments are not evaluated using asset information. The accounting policies for segment reporting are the same for the Company as a whole and transactions between the two operating segments are not material.
The following table presents the Company’s segment disclosures for the year ended September 30, 2025:
|
|
Years ended |
|
|||||
|
|
September 30, 2025 |
|
|||||
|
|
Hardware |
|
|
Software |
|
||
Revenues |
|
$ |
31,839 |
|
|
$ |
8,918 |
|
Cost of revenues |
|
|
20,128 |
|
|
|
3,673 |
|
Gross profit |
|
|
11,711 |
|
|
|
5,245 |
|
Gross margin |
|
|
37 |
% |
|
|
59 |
% |
|
|
|
|
|
|
|
||
Operating expenses: |
|
|
|
|
|
|
||
Selling, general and administrative |
|
|
13,697 |
|
|
|
11,963 |
|
Research and development |
|
|
2,941 |
|
|
|
5,165 |
|
Total operating expenses |
|
|
16,638 |
|
|
|
17,128 |
|
Loss from operations |
|
|
(4,927 |
) |
|
|
(11,883 |
) |
|
|
|
|
|
|
|
||
Other income (expenses): |
|
|
|
|
|
|
||
Depreciation and amortization expense |
|
|
357 |
|
|
|
2,422 |
|
Stock-based compensation |
|
|
1,344 |
|
|
|
319 |
|
|
|
|
|
|
|
|
||
Loss before income taxes |
|
|
(6,226 |
) |
|
|
(11,767 |
) |
Income tax (benefit) expense |
|
|
121 |
|
|
|
(2 |
) |
Net loss |
|
$ |
(6,347 |
) |
|
$ |
(11,765 |
) |
The following table presents the Company’s segment disclosures for the year ended September 30, 2024:
|
|
Years ended |
|
|||||
|
|
September 30, 2024 |
|
|||||
|
|
Hardware |
|
|
Software |
|
||
Revenues |
|
$ |
16,668 |
|
|
$ |
7,340 |
|
Cost of revenues |
|
|
10,481 |
|
|
|
3,338 |
|
Gross profit |
|
|
6,187 |
|
|
|
4,002 |
|
Gross margin |
|
|
37 |
% |
|
|
55 |
% |
|
|
|
|
|
|
|
||
Operating expenses: |
|
|
|
|
|
|
||
Selling, general and administrative |
|
|
14,665 |
|
|
|
12,596 |
|
Research and development |
|
|
3,340 |
|
|
|
6,304 |
|
Total operating expenses |
|
|
18,005 |
|
|
|
18,900 |
|
Loss from operations |
|
|
(11,818 |
) |
|
|
(14,898 |
) |
|
|
|
|
|
|
|
||
Other income (expenses): |
|
|
|
|
|
|
||
Depreciation and amortization expense |
|
|
394 |
|
|
|
2,535 |
|
Stock-based compensation |
|
|
1,165 |
|
|
|
487 |
|
|
|
|
|
|
|
|
||
Loss before income taxes |
|
|
(17,239 |
) |
|
|
(14,896 |
) |
Income tax (benefit) expense |
|
|
58 |
|
|
|
(463 |
) |
Net loss |
|
$ |
(17,297 |
) |
|
$ |
(14,433 |
) |
The following table presents the Company’s segment assets as of September 30, 2025 and September 30, 2024:
|
|
September 30, |
|
|||||
|
|
2025 |
|
|
2024 |
|
||
Long-lived assets |
|
|
|
|
|
|
||
Hardware |
|
$ |
1,046 |
|
|
$ |
1,203 |
|
Software |
|
|
6,226 |
|
|
|
8,594 |
|
|
|
$ |
7,272 |
|
|
$ |
9,797 |
|
|
|
|
|
|
|
|
||
Total assets |
|
|
|
|
|
|
||
Hardware |
|
$ |
40,908 |
|
|
$ |
30,216 |
|
Software |
|
|
22,961 |
|
|
|
23,720 |
|
|
|
$ |
63,869 |
|
|
$ |
53,936 |
|
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.