ONE STOP SYSTEMS, INC. Segments Disclosure
NOTE 17 – SEGMENT AND GEOGRAPHIC INFORMATION
The Company's continuing operations comprise a reportable segment. Operating segments are identified based on the manner in which the Chief Operating Decision Maker ("CODM") evaluates financial performance and allocates resources.
The Company's has been identified as the CODM. The CODM reviews financial information for purposes of assessing performance and making decisions regarding resource allocation. The CODM evaluates performance using gross profit and operating profit.
Although the Company generates revenue from multiple products and serves customers across various geographical regions, its products are designed and manufactured using similar processes and supported by centralized functions, including sales, marketing, finance, and human resources. Additionally, the Company's long-lived assets and capital expenditures related to continuing operations are deployed and managed on a consolidated basis.
The Company, through its single reportable segment, designs, manufactures, and markets specialized enterprise class high-performance compute, high speed switch fabrics, and storage hardware and software to target edge applications.
Segment detail for the years ended December 31, 2025 and 2024, is as follows:
|
|
For the Twelve Months Ended December 31, |
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|
2025 |
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|
2024 |
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||
Revenues |
|
$ |
32,215,500 |
|
|
$ |
24,558,809 |
|
Cost of revenues |
|
|
(16,233,017 |
) |
|
|
(23,935,885 |
) |
Gross profit |
|
|
15,982,483 |
|
|
|
622,924 |
|
Gross margin % |
|
|
49.6 |
% |
|
|
2.5 |
% |
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||
General and administrative |
|
|
(7,357,357 |
) |
|
|
(7,203,628 |
) |
Marketing and selling |
|
|
(6,566,701 |
) |
|
|
(5,616,704 |
) |
Research and development |
|
|
(5,437,537 |
) |
|
|
(3,466,077 |
) |
Total operating expenses |
|
|
(19,361,595 |
) |
|
|
(16,286,409 |
) |
Loss from operations |
|
$ |
(3,379,112 |
) |
|
$ |
(15,663,485 |
) |
|
|
|
|
|
|
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||
|
|
|
|
|
|
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||
|
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|
For the Twelve Months Ended December 31, |
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|||||
|
|
2025 |
|
|
2024 |
|
||
Interest income |
|
$ |
278,788 |
|
|
$ |
477,745 |
|
Interest expense |
|
$ |
(2,523 |
) |
|
$ |
(4,027 |
) |
Depreciation |
|
|
(771,552 |
) |
|
|
(927,282 |
) |
Stock based compensation expense |
|
|
(1,820,705 |
) |
|
|
(1,856,417 |
) |
Capital expenditures |
|
|
(114,596 |
) |
|
|
(228,258 |
) |
|
|
|
|
|
|
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||
|
|
As of December 31, |
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|||||
|
|
2025 |
|
|
2024 |
|
||
Total assets |
|
|
52,821,543 |
|
|
|
20,552,197 |
|
Revenue from customers with non-U.S. billing addresses represented approximately 6.8% and 7.1% of the Company’s revenue for the years ended December 31, 2025 and 2024, respectively.
As of December 31, 2025, substantially all the Company’s long-lived assets were located in the United States of America.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 18, 2026 | Showing above |
| 2024 | Mar 19, 2025 | |
| 2023 | Mar 21, 2024 | |
| 2022 | Mar 23, 2023 | |
| 2021 | Mar 24, 2022 | |
| 2020 | Mar 25, 2021 | |
| 2019 | Mar 26, 2020 | |
| 2018 | Mar 21, 2019 | |
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.