Note 4 - Disaggregation of Revenue

 

Disaggregation of Revenue

 

Revenue presented for the year ended December 31, 2025 represents revenue from continuing operations and excludes revenue from the Inpixon Business, which has been classified as discontinued operations. Revenue presented for the year ended December 31, 2024 relates entirely to the Inpixon Business and has been reclassified to discontinued operations in the accompanying consolidated financial statements.

 

Revenues arise substantially from the Company’s UAS offerings through the following channels (in thousands):

 

   For the Year Ended
December 31,
2025
 
Wholesale  $15,347 
Direct Sales   4,425 
Retail   2,718 
Total revenue  $22,490 

 

Wholesale revenue represents sales through resellers and channel partners.

 

Direct sales revenue represents sales to enterprise, commercial, and governmental end customers, including public safety agencies, that utilize drones as part of their operations.

 

Retail revenue represents sales to consumers, including those transacted through the Company’s e-commerce platform.

 

Enterprise, commercial, and governmental customers may also purchase through the Company’s e-commerce platform; such transactions are classified as direct sales based on customer type.

 

Revenue is primarily generated in the United States; however, approximately 25% of total revenue for the year ended December 31, 2025 was derived from a customer located in Poland. No other individual customer accounted for more than 10% of total revenue.

Historical Timeline

Fiscal YearFiled
2025Apr 15, 2026Showing above
2024Apr 15, 2025
2023Apr 16, 2024
2022Apr 17, 2023
2021Mar 16, 2022
2020Mar 31, 2021
2019Mar 3, 2020
2018Mar 28, 2019
2017Mar 27, 2018
2016Apr 17, 2017
2015Mar 30, 2016

About Revenue Disclosures

Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.

Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.