Palladyne AI Corp. Segments Disclosure
14. Segment Information
The Company has determined that it has a operating segment. The Company derives revenues from services contracts, existing product lines and manufacturing. The accounting policies of the segment are the same as those described in Note 1, Basis of Presentation and Summary of Significant Accounting Policies.
The Company's is the Chief Operating Decision Maker ("CODM"). The CODM allocates resources and makes operating decisions based on consolidated net income. The CODM does not evaluate profitability below the level of the consolidated company. Net income (loss) is used to monitor results on a budget versus actual basis. Net income (loss) is adjusted for various non-recurring and non-cash transactions such as stock compensation expenses and impairment expenses.
The following table presents selected financial information with respect to the Company's single operating segment:
|
|
Year Ended December 31, |
|
|||||
(In thousands) |
|
2025 |
|
|
2024 |
|
||
Segment Revenue |
|
$ |
5,243 |
|
|
$ |
5,120 |
|
Other Revenue (1) |
|
|
3 |
|
|
|
2,666 |
|
Total Revenue |
|
|
5,246 |
|
|
|
7,786 |
|
Less: |
|
|
|
|
|
|
||
Cost of revenue |
|
|
2,638 |
|
|
|
2,393 |
|
Research and development |
|
|
12,471 |
|
|
|
10,322 |
|
General and administrative |
|
|
13,131 |
|
|
|
14,013 |
|
Sales and marketing |
|
|
4,043 |
|
|
|
3,530 |
|
Intangible amortization expense |
|
|
118 |
|
|
|
— |
|
Other (2) |
|
|
5,249 |
|
|
|
4,451 |
|
Interest income, net |
|
|
(1,944 |
) |
|
|
(1,244 |
) |
(Gain) loss on warrant liabilities |
|
|
(37,740 |
) |
|
|
46,935 |
|
Other income, net |
|
|
(221 |
) |
|
|
(2 |
) |
Income tax benefit (expense) |
|
|
(2,538 |
) |
|
|
5 |
|
Net income (loss) |
|
$ |
10,039 |
|
|
$ |
(72,617 |
) |
The Company's revenue is derived primarily from U.S. customers. During the years ended December 31, 2025 and 2024, the Company had no revenue earned from customers located outside the United States.
All long-lived assets are maintained in the United States. All losses are attributable to operations within the United States.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 5, 2026 | Showing above |
| 2024 | Feb 20, 2025 | |
| 2023 | Feb 28, 2024 | |
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.