Annual report [Section 13 and 15(d), not S-K Item 405]

Entity Level Information

v3.25.1
Entity Level Information
 12 Months Ended
Dec. 31, 2024
Segment Reporting [Abstract]  
Entity Level Information

NOTE 12 —Entity Level Information

 

Segment Information—The Company operates in one reporting segment.

 

The Company’s Chief Executive Officer is the Company’s chief operating decision maker (“CODM”). The Company’s CODM primarily uses consolidated net income (loss) to allocate resources and assess Company performance, primarily through periodic budgeting and Company performance reviews. The CODM utilizes discrete financial information at the consolidated level, including profit and loss statements, cash flow and revenue forecasts, inventory reports, and vendor payment plans.

 

The following table details the revenues, significant expenses and other segment items regularly provided to and reviewed by the CODM for the years ended December, 31:

 

    2024     2023  
Revenues   $ 58,298     $ 93,632  
Less:                
Cost of sales     38,364       69,121  
Amortization of contract fulfillment assets     3,486       2,159  
Other cost of sales     6,528       3,028  
Research and development     14,235       1,772  
Sales and marketing     12,962       8,768  
General and administrative, excluding legal fees     10,916       7,271  
Legal fees     1,468       1,000  
Impairment of contract fulfillment assets     3,464       —  
Restructuring charges     514       —  
Interest expense, net     29       15  
Other (income) expense, net     (246 )     214  
Income tax expense     226       374  
Consolidated segment net loss   $ (33,648 )   $ (90 )
Reconciliation of profit or loss                
Adjustments and reconciling items     —       —  
Consolidated net loss   $ (33,648 )   $ (90 )

 

The following table summarizes total net revenues by region based on ship-to destinations:

 

    2024     2023  
    For the Years Ended  
    December 31,  
    2024     2023  
United States   $ 39,726     $ 33,180  
Canada     9,101       10,572  
Europe and Middle East     642       4,299  
Asia Pacific     8,829       45,581  
Total net revenues   $ 58,298     $ 93,632  

 

Long-lived assets, substantially comprised of contract fulfillment assets, located in the United States and Asia Pacific region were $7,384 and $187 as of December 31, 2024, respectively, and $9,365 and $48 as of December 31, 2023, respectively.

 

Inventory located in the United States and Asia Pacific region was $3,383 and $7,238 as of December 31, 2024, respectively, and $4,167 and $2,350 as of December 31, 2023, respectively.

 

The following table summarizes the composition of total net revenues:

 

    2024     2023  
    For the Years Ended  
    December 31,  
    2024     2023  
Product Sales   $ 58,290     $ 93,628  
Services     8       4  
Total net revenues   $ 58,298     $ 93,632  

 

Concentrations of Revenue Risk—The Company’s white label tablet customer accounted for 42% of net revenues for 2023. In the fourth quarter of 2023, tablet sales to this customer stopped as the product reached the end of its life cycle. After 2023, there is no longer a significant risk due to the concentration of revenue with this customer. One customer accounted for 41% and 29% of total net revenues for 2024 and 2023, respectively. Two additional customers accounted for 15% and 13% of total net revenues for 2024, respectively.