ULTRALIFE CORP Segments Disclosure

Note 10 - Business Segment Information

 

Operating segments represent a component of the Company that engages in business activities from which it may recognize revenues and incur expenses whose operating results are regularly reviewed by the public entity’s chief operating decision maker (“CODM”) to make decisions about resources to be allocated to the segment and assess its performance, and for which discrete financial information is available.  Once operating segments are identified, the Company determined which of those operating segments are required to be presented as reportable segments based on the quantitative thresholds.

 

We structure our operations primarily around the products we sell and report our financial results in following two operating segments: Battery & Energy Products and Communications Systems. The Battery & Energy Products segment includes Lithium 9-volt, cylindrical and various other non-rechargeable batteries, in addition to rechargeable batteries, uninterruptable power supplies, charging systems and accessories. The Communications Systems segment includes RF amplifiers, power supplies, cable and connector assemblies, amplified speakers, equipment mounts, case equipment, man-portable systems, integrated communication systems for fixed or vehicle applications and communications and electronics systems design.

 

Our Chief Operating Decision Maker (“CODM”) is Mike Manna, President & Chief Executive Officer. Both of our business segments are regularly reviewed by the CODM through weekly revenue, gross margin and consolidated financial forecast updates, bi-weekly business and financial reviews to assess business performance, top priorities, utilization of resources and to regularly communicate with segment management, who are part of the CODM’s executive leadership team, and monthly meetings with the executive leadership team. In his role as CODM, Mr. Manna is deeply involved in business operations through daily updates by the segment management and ongoing financial, revenue and operations discussions.

 

The primary financial measures used by the CODM to monitor and evaluate the performance of the operating segments is segment contribution, as defined by gross profit less direct research and development (“R&D”) and direct selling, general and administrative (“SG&A”) expenses. This metric is used as a consistent benchmark for comparison across reporting periods.

 

The significant segment expenses regularly reviewed by the CODM and included in segment contribution are cost of products sold and direct R&D and SG&A expenses. There are no other segment items included in segment contribution beyond the significant expenses disclosed.

 

Corporate general and administrative (“G&A”) expenses, including costs associated with our acquisitions, include corporate functions including board of directors, executive officers, accounting & finance, human resources, legal, information technology and their related functional expenses. These costs are not directly allocable to the business segments.

 

2025:

 

		Battery & Energy Products				Communications Systems				Corporate				Total
Revenue		$	178,042			$	13,117			$	-			$	191,159
Cost of products sold			(135,402	)			(9,736	)			-				(145,138	)
Gross profit			42,640				3,381				-				46,021
Direct R&D and SG&A expenses			(22,417	)			(4,671	)			-				(27,088	)
Segment contribution			20,223				(1,290	)			-				18,933
Corporate G&A expenses			-				-				(24,835	)			(24,835	)
Operating loss															(5,902	)
Other expense, net											(2,496	)			(2,496	)
Income tax provision											2,447				2,447
Non-controlling interest											53				53
Net loss attributable to Ultralife														$	(5,898	)
Total assets		$	165,592			$	27,201			$	24,119			$	216,912
Capital expenditures		$	3,872			$	-			$	-			$	3,872
Goodwill		$	33,883			$	11,493			$	-			$	45,376
Depreciation and amortization of intangible assets		$	5,115			$	231			$	153			$	5,499
Stock-based compensation		$	602			$	97			$	236			$	935

 

2024:

 

		Battery & Energy Products				Communications Systems				Corporate				Total
Revenue		$	144,081			$	20,375			$	-			$	164,456
Cost of products sold			(107,764	)			(14,378	)			-				(122,142	)
Gross profit			36,317				5,997				-				42,314
Direct R&D and SG&A expenses			(17,320	)			(4,806	)			-				(22,126	)
Segment contribution			18,997				1,191				-				20,188
Corporate G&A expenses			-				-				(10,223	)			(10,223	)
Operating profit															9,965
Other expense, net											(1,664	)			(1,664	)
Income tax provision											(1,892	)			(1,892	)
Non-controlling interest											(97	)			(97	)
Net income attributable to Ultralife														$	6,312
Total assets		$	173,954			$	26,876			$	19,621			$	220,451
Capital expenditures		$	1,261			$	513			$	158			$	1,932
Goodwill		$	33,513			$	11,493			$	-			$	45,006
Depreciation and amortization of intangible assets		$	3,676			$	237			$	244			$	4,157
Stock-based compensation		$	383			$	96			$	219			$	698

 

 

Long-lived assets (comprised of property, plant and equipment; goodwill; and other intangible assets) held outside the U.S., principally in Canada, United Kingdom and China, were $19,777 and $22,306, net of accumulated depreciation and amortization, as of December 31, 2025, and 2024, respectively.

 

The following tables disaggregate our business segment revenues by major source and geography.

 

Commercial and Government/Defense Revenue Information:

 

Year ended December 31, 2025:

		Total Revenue				Commercial				Government/ Defense
Battery & Energy Products		$	178,042			$	125,295			$	52,747
Communications Systems			13,117				-				13,117
Total		$	191,159			$	125,295			$	65,864
							66	%			34	%

 

Year ended December 31, 2024:

		Total Revenue				Commercial				Government/ Defense
Battery & Energy Products		$	144,081			$	102,082			$	41,999
Communications Systems			20,375				-				20,375
Total		$	164,456			$	102,082			$	62,374
							62	%			38	%

 

U.S. and Non-U.S. Revenue Information¹:

 

Year ended December 31, 2025:

		Total Revenue				United States				Non-United States
Battery & Energy Products		$	178,042			$	125,903			$	52,139
Communications Systems			13,117				11,174				1,943
Total		$	191,159			$	137,077			$	54,082
							72	%			28	%

 

Year ended December 31, 2024:

		Total Revenue				United States				Non-United States
Battery & Energy Products		$	144,081			$	82,227			$	61,854
Communications Systems			20,375				14,813				5,562
Total		$	164,456			$	97,040			$	67,416
							59	%			41	%

 

¹ Sales classified to U.S. include shipments to U.S.-based prime contractors which in some cases may serve non-U.S. projects.