v3.25.1
SEGMENT REPORTING
 3 Months Ended
Mar. 31, 2025
Segment Reporting [Abstract]  
SEGMENT REPORTING

NOTE 10: SEGMENT REPORTING

 

The Company has determined that it has three reportable segments, organized primarily based on product offerings, as follows:

 

  ● CVD Equipment – manufactures chemical vapor deposition, physical vapor transport and thermal process equipment.

 

  ● SDC - manufactures ultra-high purity gas and chemical delivery control systems.

 

  ● MesoScribe - provided electronic printing services and products (heaters, antennas, and sensors).

 

 

Both CVD Equipment and SDC also sell spares and parts and provide services related to the equipment each segment sells. One other business, Tantaline, did not meet the quantitative threshold for separate reporting and has been reflected as “Other” below.

 

The chief operating decision maker (“CODM”) of the Company is the Company’s chief executive officer. The CODM assesses performance and decides how to allocate resources, including employees, financial or capital resources, based on segment net income (loss). The CODM considers actual-to-actual variances on a quarterly basis when making decisions about allocating capital and other resources to the segments and to assess the performance for each segment.

 

Financial results for the reportable segments and other business are prepared on a basis consistent with the internal disaggregation of financial information to assist the CODM is making internal operating decisions.

 

Certain income and expenses are excluded from segment net income (loss) and included in the unallocated amounts in the reconciliation of reportable segment net income (loss) to net loss. These items are not used by the CODM in allocating resources or evaluating the results of the segments and include the following: corporate expenses consisting of employment costs of executives, finance, information technology and human resources; board of director fees; professional fees; shareholder and investor relations expense; directors’ and officers’ insurance; interest income and income tax expense. Segment income (loss) from operations may not be consistent with measures used by other companies.

 

 

NOTE 10: SEGMENT REPORTING (continued)

 

The following provides segment information as described below (in thousands):

 

                 
   For the three months ended March 31, 2025 
   CVD   SDC   MesoScribe   Total 
Segment revenue  $6,314   $2,142   $22   $8,478 
Less:                    
Cost of revenue   4,530    1,251    1    5,782 
Research and development   734    47    -    781 
Selling   367    53    -    420 
General and administrative   177    202    -    379 
Interest expense   3    -    -    3 
Segment net income  $503   $589   $21   $1,113 
Segment assets  $18,430   $3,012   $-   $21,442 
Capital expenditures  $39   $6   $-   $45 
Depreciation and amortization  $172   $13   $-   $185 

 

                 
   For the three months ended March 31, 2024 
   CVD   SDC   MesoScribe   Total 
Segment revenue  $2,946   $1,932   $59   $4,937 
Less:                    
Cost of revenue   3,052    1,016    72    4,140 
Research and development   678    68    -    746 
Selling   373    46    -    419 
General and administrative   225    170    12    407 
Interest expense   6    -    -    6 
Segment net income  $(1,388)  $632   $(25)  $(781)
Segment assets  $20,159   $3,882   $183   $24,224 
Capital expenditures  $70   $-   $-   $70 
Depreciation and amortization  $141   $12   $-   $153 

 

The following table presents a reconciliation of revenue of reportable segments to consolidated revenue (in thousands):

SCHEDULE OF RECONCILIATION OF REVENUE OF REPORTABLE SEGMENTS TO CONSOLIDATED REVENUE

 

         
   Three months ended
March 31,		 
   2025   2024 
Revenue of reportable segments  $8,478   $4,937 
Intersegment revenue   (162)   (15)
Consolidated total revenue  $8,316   $4,922 

 

Intersegment revenues are determined based on similar product sales to external customers of the Company.

 

 

NOTE 10: SEGMENT REPORTING (continued)

 

The following table presents a reconciliation of net income (loss) of reportable segments to consolidated net loss (in thousand):

 

         
   Three months ended
March 31,		 
   2025   2024 
Net income (loss) of reportable segments  $1,113   $(781)
Unallocated amounts:          
Corporate expenses   (847)   (848)
Interest income   110    157 
Income tax (expense) benefit   (16)   - 
Consolidated net loss  $360   $(1,472)

 

The following table presents a reconciliation of total assets of reportable segments to consolidated total assets (in thousands):

 

         
   Three months ended
March 31,		 
   2025   2024 
Total assets of reportable segments  $21,442   $24,224 
Unallocated amounts:          
Cash equivalents   9,550    11,129 
Other current assets   88    90 
Consolidated total assets  $31,080   $35,443 

 

The following table presents revenue by geographic area (in thousands):

 

         
   Three months ended
March 31,		 
   2025   2024 
United States  $8,137   $4,768 
North America, excluding US   3    1 
Europe, Middle East and Africa   55    54 
Asia-Pacific   121    99 
Consolidated total revenue  $8,316   $4,922 

 

For geographical reporting, revenues are attributed to the location in which the customer facility is located. All the Company’s long-lived assets are located in the United States.