| Segment and Geographic Information |
NOTE 11 – SEGMENT AND GEOGRAPHIC INFORMATION The Company operates in two reportable segments: OSS and Bressner. OSS designs, manufactures, and markets specialized enterprise class high-performance compute, high speed switch fabrics, and storage hardware and software to target edge applications. Bressner operates as a system integrator with standard and custom all-in-one hardware systems and components for many kinds of industrial environments. The Company evaluates financial performance on a Company-wide basis. Segment Information The accounting policies of the segments are the same as those described in the summary of significant accounting policies of the Company. Intersegment sales are generally recorded at cost plus a specified fee or at a negotiated fixed price. Intersegment sales are eliminated in consolidation and segment results are presented net of eliminations. The Company's chief operating decision maker (CODM) is our Chief Executive Officer. The CODM evaluates performance for both reportable segments based on segment gross profit and segment operating profit. The CODM uses these measures to assess actual and forecasted segment performance and to make decisions regarding the allocation of capital and personnel. Segment detail for the three months ended March 31, 2025 and 2024, is as follows:
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For the Three Months Ended March 31, 2025 |
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For the Three Months Ended March 31, 2024 |
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|
OSS |
|
Bressner |
|
Total |
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|
OSS |
|
Bressner |
|
Total |
|
Revenues |
$ |
5,206,810 |
|
$ |
7,052,277 |
|
$ |
12,259,088 |
|
|
$ |
5,533,872 |
|
$ |
7,117,914 |
|
$ |
12,651,786 |
|
Cost of revenues |
|
(2,837,600 |
) |
|
(5,424,495 |
) |
|
(8,262,096 |
) |
|
|
(3,641,095 |
) |
|
(5,287,397 |
) |
|
(8,928,493 |
) |
Gross profit |
|
2,369,210 |
|
|
1,627,782 |
|
|
3,996,992 |
|
|
|
1,892,777 |
|
|
1,830,515 |
|
|
3,723,293 |
|
Gross margin % |
|
45.5 |
% |
|
23.1 |
% |
|
32.6 |
% |
|
|
34.2 |
% |
|
25.7 |
% |
|
29.4 |
% |
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|
|
|
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|
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Research & development |
|
(1,205,142 |
) |
|
(152,150 |
) |
|
(1,357,293 |
) |
|
|
(824,556 |
) |
|
(146,320 |
) |
|
(970,877 |
) |
Other segment operating expenses |
|
(3,515,259 |
) |
|
(1,069,300 |
) |
|
(4,584,559 |
) |
|
|
(3,022,713 |
) |
|
(991,716 |
) |
|
(4,014,430 |
) |
Total operating expenses |
|
(4,720,401 |
) |
|
(1,221,450 |
) |
|
(5,941,852 |
) |
|
|
(3,847,270 |
) |
|
(1,138,036 |
) |
|
(4,985,307 |
) |
(Loss) income from operations |
$ |
(2,351,191 |
) |
$ |
406,332 |
|
$ |
(1,944,860 |
) |
|
$ |
(1,954,493 |
) |
$ |
692,479 |
|
$ |
(1,262,014 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended March 31, 2025 |
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|
For the Three Months Ended March 31, 2024 |
|
|
OSS |
|
Bressner |
|
Total |
|
|
OSS |
|
Bressner |
|
Total |
|
Interest income |
$ |
73,066 |
|
$ |
(555 |
) |
$ |
72,511 |
|
|
$ |
141,725 |
|
$ |
- |
|
$ |
141,725 |
|
Interest expense |
|
- |
|
|
(14,186 |
) |
|
(14,186 |
) |
|
|
(2,329 |
) |
|
(33,013 |
) |
|
(35,342 |
) |
Depreciation |
|
(194,780 |
) |
|
(29,067 |
) |
|
(223,847 |
) |
|
|
(257,669 |
) |
|
(31,878 |
) |
|
(289,547 |
) |
Stock based compensation expense |
|
(578,405 |
) |
|
(34,156 |
) |
|
(612,561 |
) |
|
|
(381,042 |
) |
|
(27,698 |
) |
|
(408,740 |
) |
Capital expenditures |
|
(6,441 |
) |
|
(6,352 |
) |
|
(12,793 |
) |
|
|
(69,136 |
) |
|
(98,032 |
) |
|
(167,168 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2025 |
|
|
December 31, 2024 |
|
|
OSS |
|
Bressner |
|
Total |
|
|
OSS |
|
Bressner |
|
Total |
|
Total assets |
|
19,481,026 |
|
|
17,624,767 |
|
|
37,105,793 |
|
|
|
20,552,197 |
|
|
16,381,785 |
|
|
36,933,982 |
|
|