SolarMax Technology, Inc. Segments Disclosure
24. Segment Reporting
The chief operating decision maker ("CODM") is the Chief Executive Officer. As of January 1, 2024, the Company has determined that it has one reporting segment which is solar energy systems in the United States. The Company has not generated any revenue from its China operations since 2021, it does not have any contracts for services in China, it does not have any marketing activities in China and its China operations is no longer considered a reporting segment. The CODM regularly reviews operations and financial performance at the consolidated level and uses net income (loss) to allocate resources (including labor, technology and capital resources) for the single reporting segment to make decisions regarding annual budget, entering new markets, marketing decisions, pursuing new business, and driving the Company's mission.
The following table shows the operations of the Company’s reporting segment for the years ended December 31, 2025 and 2024:
|
| Years Ended December 31, |
| |||||
|
| 2025 |
|
| 2024 |
| ||
Segment revenue |
|
|
|
|
|
| ||
Large-scale EPC contracts |
| $ | 60,172,308 |
|
| $ | - |
|
Solar energy systems |
|
| 21,461,983 |
|
|
| 16,675,612 |
|
Battery only sales |
|
| 1,794,460 |
|
|
| 1,136,065 |
|
LED operations |
|
| 7,191,567 |
|
|
| 4,737,254 |
|
|
|
| 90,620,318 |
|
|
| 22,548,931 |
|
Reconciliation of revenue |
|
|
|
|
|
|
|
|
Finance revenue |
|
| 277,667 |
|
|
| 336,937 |
|
Other non-core revenue |
|
| 84,550 |
|
|
| 101,013 |
|
|
|
| 90,982,535 |
|
|
| 22,986,881 |
|
Less |
|
|
|
|
|
|
|
|
Direct and indirect costs |
|
| 81,662,519 |
|
|
| 10,949,411 |
|
Subcontractor costs |
|
| 737,547 |
|
|
| 2,154,031 |
|
Commissions and lender fees |
|
| 3,491,278 |
|
|
| 2,805,218 |
|
Compensation and benefits |
|
| 2,289,447 |
|
|
| 6,991,057 |
|
Leasing and rental expense |
|
| 662,387 |
|
|
| 752,086 |
|
Insurance expense |
|
| 1,486,295 |
|
|
| 1,041,734 |
|
Selling and marketing expense |
|
| 3,165,250 |
|
|
| 517,058 |
|
Professional services |
|
| 1,482,262 |
|
|
| 1,658,190 |
|
|
|
| (3,994,450 | ) |
|
| (3,881,904 | ) |
Reconciliation of segment profit or loss |
|
|
|
|
|
|
|
|
Other corporate overhead expense |
|
| 1,157,140 |
|
|
| 1,238,470 |
|
Provision for various reserves |
|
| 450,722 |
|
|
| 620,236 |
|
Stock-based compensation |
|
| 95,717 |
|
|
| 18,536,184 |
|
Interest expense, net |
|
| 867,703 |
|
|
| 1,094,244 |
|
Other (gains) and other (income), net |
|
| 842,952 |
|
|
| (239,384 | ) |
China goodwill impairment |
|
| - |
|
|
| 7,461,888 |
|
China other expenses |
|
| 300,191 |
|
|
| 699,060 |
|
Elimination adjustment |
|
| (248,932 | ) |
|
| 5,904 |
|
Income before income taxes |
| $ | (7,459,943 | ) |
| $ | (33,298,506 | ) |
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Apr 6, 2026 | Showing above |
| 2024 | Mar 31, 2025 | |
| 2023 | Apr 16, 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.