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

Note 11. Segment Reporting

 

The Company operates as a single reportable segment, as the Chief Operating Decision Maker (“CODM”), the Chief Executive Officer (“CEO”), evaluates the business on a consolidated basis and does not receive discrete financial information for multiple business units.

 

Measure of Segment Profit or Loss

 

The CODM assesses the Company’s financial performance based on operating loss, which aligns with the amount reported in the statement of comprehensive loss. The following table presents a reconciliation of segment operating loss to net income (loss):  

        
  

Three Months ended

March 31

   2025  2024
Revenues      
   Licenses, royalties and fees  $190,300   $86,500 
   Product and other sales   288,700    311,800 
Total revenues   479,000    398,300 
Cost of revenues          
   Licenses, royalties and fees   43,500    51,800 
   Product and other sales   161,800    180,900 
Total cost of revenues   205,300    232,700 
Gross profit   273,700    165,600 
           
Operating expenses          
   Research and development   45,000    41,400 
   Sales and marketing   91,000    69,000 
   General and administrative   223,500    1,214,800 
Total operating expenses   359,500    1,325,200 
Net loss from operations   (85,800)   (1,159,600)
           
Other income (expenses)          
   Interest income   117,200    137,100 
   Interest expense and bank charges   (5,900)   (5,700)
Total other income (expenses)   111,300    131,400 
Net income (loss) before income taxes   25,500    (1,028,200)
   Income taxes   —      —   
Net income (loss)  $25,500   $(1,028,200)

 

Significant Segment Expenses

 

The Company considers the following as significant expenses in evaluating its segment performance:

 

  · Research and Development: includes costs related to personnel, laboratory materials and supplies and product development and testing for ink technologies.

 

  · General and Administrative: includes personnel costs, professional fees, and other overhead expenses.

 

  · Sales and Marketing: includes personnel costs and other sales related expenses.

 

  · Cost of Revenues: represents labor costs, material costs and manufacturing overhead costs associated with the production of materials transferred to the customer from the Company’s facility.

Since the Company has only one reportable segment, no additional segment disclosures are required beyond entity-wide disclosures presented below.

Entity-Wide Disclosures

 

  · Geographic Revenue Information: For the three months ended March 31, 2025 39% of the Company’s net sales were generated in North America and 61% internationally. For the three months ended March 31, 2024, 20% of the Company’s net sales were generated in North America and 80% were generated internationally. Refer to Note 9.

 

  · Major Customers:. The Company had three customers that accounted for 84% of revenue and 88% of net accounts receivable for the three months ended March 31, 2025. In addition, the Company had two customers that accounted for 84% of revenue for the three months ended March 31, 2024 and 93% of net accounts receivable as of December 31, 2024. Refer to Note 9.