Quarterly report [Sections 13 or 15(d)]

Entity Level Information

v3.25.3
Entity Level Information
 9 Months Ended
Sep. 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     Nine Months Ended  
    September 30,     September 30,  
    2025     2024     2025     2024  
Revenues   $ 16,214     $ 15,022     $ 44,125     $ 43,314  
Less:                                
Cost of sales     11,857       9,101       26,341       28,402  
Amortization of contract fulfillment assets     908       896       2,592       2,595  
Other cost of sales     1,633       793       4,175       2,214  
Research and development     181       715       2,723       1,728  
Sales and marketing     2,452       3,045       9,136       8,756  
General and administrative, excluding legal fees     2,712       2,415       7,649       6,799  
Legal fees     451       433       1,576       1,138  
Impairment of contract fulfillment assets     —       —       —       3,217  
Interest expense, net     522       —       1,002       17  
Other (income) expense, net     161       19       340       203  
Income tax expense     90       117       361       279  
Consolidated segment net income (loss)   $ (4,753 )   $ (2,512 )   $ (11,770 )   $ (12,034 )

 

 

 

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

 

    2025     2024     2025     2024  
    Three Months Ended     Nine Months Ended  
    September 30,     September 30,  
    2025     2024     2025     2024  
United States   $ 11,762     $ 11,667     $ 34,215     $ 27,999  
Asia Pacific     10       98       581       7,831  
Canada     2,618       3,180       5,453       7,364  
Europe and Middle East     1,824       77       3,876       120  
Total net revenues   $ 16,214     $ 15,022     $ 44,125     $ 43,314  

 

Long-lived assets, substantially comprised of contract fulfillment assets, located in the United States and Asia Pacific region were $9,756 and $162 as of September 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 $2,083 and $8,903 as of September 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

September 30,

    

Nine Months Ended

September 30,

  
    2025     2024     2025     2024  
Customer A     31 %     37 %     45 %     40 %
Customer B     20 %     16 %     16 %     12 %
Customer C (related party)     -*       -*       -*       18 %
Customer D     *       11 %     -*       -*  

 

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