SEGMENTS AND DISAGGREGATION OF REVENUE |
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| Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| SEGMENTS AND DISAGGREGATION OF REVENUE | 12. SEGMENTS AND DISAGGREGATION OF REVENUE
Operating segments are defined as components of an entity for which separate financial information is available and that is regularly reviewed by the Chief Operating Decision Maker (“CODM”) in deciding how to allocate resources to an individual segment and in assessing performance. The Company’s CODM is its President and Chief Executive Officer. The Company has determined that it operates in one operating segment and one reportable segment, as the CODM reviews financial information presented on a consolidated basis for purposes of making operating decisions, allocating resources, and evaluating financial performance.
The CODM assesses performance and decides how to allocate resources and make operating decisions based on revenues, loss from operations, and net loss that are reported on the Consolidated Statements of Operations. These metrics are also used to monitor budget versus actual results. The measure of segment assets is reported on the Consolidated Balance Sheets as total assets. Revenues, expenses, and assets requiring disclosure in accordance with ASC 280, Segment Reporting, are also included in the accompanying Condensed Consolidated Financial Statements. See the Condensed Consolidated Statements of Operations for the three months ended March 29, 2025 and March 30, 2024 and the Consolidated Balance Sheets as of March 29, 2025 and December 28, 2024, for details.
Total long-lived assets by country at March 29, 2025 and December 28, 2024 were:
The Company disaggregates its revenue from contracts with customers by geographic location and by display application, as it believes this best depicts how the nature, amount, timing and uncertainty of its revenue and cash flows are affected by economic factors.
During the three months ended March 29, 2025 and March 30, 2024, the Company derived its sales from the following geographies:
During the three months ended March 29, 2025 and March 30, 2024, the Company derived its sales from the following display applications:
The issues associated with the global shortage of semiconductor circuit chips and other raw materials decreased in 2024 as compared to 2023 and 2022. However, the Company has identified several semiconductor components which continue to have long lead delivery times. The Company continues to search for and procure all necessary components from its current vendors and new alternative vendors. In certain situations, the Company can obtain the components but at a significantly increased cost. The inability to procure a single component will prevent the completion of the Company’s product and the ability to sell the product. The Company’s products go through extensive qualification processes and therefore its customers may not accept a replacement component. The Company is unable to determine if it will be able to obtain all necessary components for fiscal 2025. If the Company is unable to obtain all necessary components, it may be required to stop production, which would negatively affect its cash flow and results of operations. In addition, the Company depends on a Taiwanese foundry for the manufacture of integrated circuits for its AMLCD display products and on Chinese, Korean, and European foundries for its OLED display products. If there was a disruption of supply from these foundries it would take a significant period of time to identify, and qualify, if possible, a new source.
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