Segment Information
For the fiscal years ended January 31, 2026, 2025, and 2024 the Company was managed as a single operating segment. The Chief Executive Officer, who is the Company’s Chief Operating Decision Maker (“CODM”), reviews financial information on an aggregate basis for purposes of allocating resources and assessing financial performance, as well as for making strategic operational decisions and managing the organization. As such, the Company has one reportable segment. Additionally, all of the Company’s assets are maintained in the United States. The CODM utilizes net income as the
primary measure of segment performance and relies on this metric in determining whether to allocate additional resources to the segment or other corporate purposes.
Segment reporting for the fiscal years ended January 31, (in thousands):
For the Fiscal Years Ended
January 31, 2026January 31, 2025January 31, 2024
Net Sales$171,714 $123,328 $103,284 
Costs of sales128,668 92,795 72,951 
Gross profit43,046 30,533 30,333 
Less: (A)
Research and development288 455 414 
Direct Variable Costs (B)
11,200 7,798 7,161 
Other selling, general, and administrative expenses24,446 17,403 13,868 
Total operating expenses35,934 25,656 21,443 
Income from operations7,112 4,877 8,890 
Interest expense(435)(477)(549)
Interest income211 218 — 
Amortization of debt discount(37)(16)(22)
Other income— 104 27 
Income from equity method investment— — 223 
Income tax provision(1,565)(995)(2,008)
Segment net income5,286 3,711 6,561 
Reconciliation of profit
Adjustments and reconciling items
Consolidated net income$5,286 $3,711 $6,561 
(A) The significant expense categories and amounts align with the information that is regularly provided to the chief operating decision maker.
(B) This category contains commission expenses, royalty expenses, and freight-related expenses

Historical Timeline

Fiscal YearFiled
2026Apr 14, 2026Showing above
2025Apr 8, 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.