SEGMENT REPORTING

9 Months Ended

12 Months Ended

Sep. 30, 2025

Dec. 31, 2024

14.

SEGMENT REPORTING

The Company’s chief operating decision maker is its chief executive officer who reviews financial information presented on a consolidated basis for the purposes of making operating decisions, assessing financial performance, and allocating resources. The Company’s chief operating decision maker reviews segment performance and allocates resources based upon revenues and expenses. As the Company has only one reportable segment, revenues and expenses are reported only on a consolidated basis. The measure of segment assets is reported in the balance sheet as total consolidated assets.

The following table presents selected financial information about revenues, expenses and net loss for the three and nine months ended September 30, 2025 and 2024 for the Company’s one reportable segment:


		Three Months Ended September 30,						Nine Months Ended September 30,
		2025			2024			2025			2024
Revenues:
Hardware		$	3,768		$	7,713		$	11,908		$	17,115
Software			4,319			5,612			8,667			10,222
Services			706			894			2,436			2,226
Total revenues			8,793			14,219			23,011			29,563
Cost of goods sold
Hardware			2,665			5,545			8,010			12,563
Software			1,081			1,665			2,520			3,509
Services			501			329			1,375			1,072
Excess and obsolete			47			318			227			322
Total cost of goods sold			4,294			7,857			12,132			17,466
Gross profit			4,499			6,362			10,879			12,097
Operating expenses:
Research and development			266			165			580			915
Software engineering			452			288			1,156			916
Platform engineering			850			586			2,201			2,256
Sales			2,110			1,681			5,954			6,086
General and administrative			3,385			2,035			11,159			10,772
Marketing and business development			2,104			1,449			5,938			5,325
International sales			126			134			398			721
Total operating expenses			9,293			6,338			27,386			26,991
Loss from operations			(4,794)			24			(16,507)			(14,894)
Other (expense) income:
Interest expense			(306)			(596)			(1,109)			(2,235)
Other income (expense), net			78			368			148			18
Gain on change in fair value of convertible debt			(1,148)			—			(623)			—
Loss on extinguishment of debt			—			—			—			(52)
Loss before income taxes			(6,170)			(204)			(18,091)			(17,163)
Income tax expense (benefit)			(1)			—			12			34
Segment net loss		$	(6,169)		$	(204)		$	(18,103)		$	(17,197)

13.

SEGMENT REPORTING

The following table presents selected financial information about revenues, expenses and net loss for the years ended December 31, 2024 and 2023 for the Company’s one reportable segment:


	Year Ended December 31,
	2024			2023
Revenues:
Hardware	$	21,991		$	27,461
Software		12,857			13,229
Services		3,250			3,232
Total revenues		38,098			43,922
Cost of goods sold
Hardware		15,950			19,741
Software		5,025			5,545
Services		1,152			779
Other		402			963
Total cost of goods sold		22,529			27,028
Gross profit		15,569			16,894
Operating expenses:
Research and development		849			402
Software engineering		1,158			1,054
Platform engineering		2,886			2,762
Sales		8,370			7,225
General and administrative		12,419			6,710
Marketing and business development		6,712			4,722
International sales		833			951
Other operating expenses		—			1,683
Total operating expenses		33,227			25,509
Loss from operations		(17,658)			(8,615)
Other (expense) income:
Interest expense		(2,815)			(2,900)
Other income (expense), net		43			23
Loss on extinguishment of debt		(359)			(1,541)
Loss before income taxes		(20,789)			(13,033)
Income tax expense		34			3
Segment net loss	$	(20,823)		$	(13,036)

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

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