Quarterly report [Sections 13 or 15(d)]

Entity Level Information

v3.25.2
Entity Level Information
 6 Months Ended
Jun. 30, 2025
Segment Reporting [Abstract]  
Entity Level Information

NOTE 10 — 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: 
 

    2025     2024     2025     2024  
    Three Months Ended     Six Months Ended  
    June 30,     June 30,  
    2025     2024     2025     2024  
Revenues   $ 11,190     $ 11,516     $ 27,911     $ 28,292  
Less:                                
Cost of sales     7,845       6,812       14,484       19,301  
Amortization of contract fulfillment assets     751       830       1,684       1,699  
Other cost of sales     1,749       905       2,542       1,421  
Research and development     909       557       2,542       1,013  
Sales and marketing     3,445       3,219       6,684       5,711  
General and administrative, excluding legal fees     2,512       1,994       4,937       4,384  
Legal fees     711       452       1,125       705  
Impairment of contract fulfillment assets     —       3,217       —       3,217  
Interest expense, net     389       17       480       17  
Other (income) expense, net     215       92       179       184  
Income tax expense     139       37       271       162  
Consolidated segment net income (loss)   $ (7,475 )   $ (6,616 )   $ (7,017 )   $ (9,522 )

  

 

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

 

    2025     2024     2025     2024  
    Three Months Ended     Six Months Ended  
    June 30,     June 30,  
    2025     2024     2025     2024  
United States   $ 9,685     $ 9,066     $ 22,453     $ 16,332  
Asia Pacific     42       70       571       7,733  
Canada     453       2,378       2,835       4,184  
Europe and Middle East     1,010       2       2,052       43  
Total net revenues   $ 11,190     $ 11,516     $ 27,911     $ 28,292  

 

Long-lived assets, substantially comprised of contract fulfillment assets, located in the United States and Asia Pacific region were $8,780 and $175 as of June 30, 2025, respectively, and $7,384 and $187 as of December 31, 2024, respectively.

 

Inventory located in the United States and Asia Pacific region was $2,742 and $7,147 as of June 30, 2025, respectively, and $3,383 and $7,238 as of December 31, 2024, respectively.

 

Concentrations of Revenue Risk

 

Revenue from customers with concentration greater than 10% accounted for approximately the following percentage of net revenues:

    Three Months Ended
June 30,		     Six Months Ended
June 30,		  
    2025     2024     2025     2024  
Customer A     44 %     55 %     53 %     41 %
Customer B     26 %     13 %     14 %     10 %
Customer C (related party)     -*       -*       *-       27 %

 

* Customer revenue did not exceed 10% in the respective period.