v3.25.2
Segment Reporting
 6 Months Ended
Jun. 30, 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 loss:  

 

 

                    
   Three Months ended
June 30		   Six Months ended
June 30		 
   2025   2024   2025   2024 
Revenues                
Licenses, royalties and fees  $140,100   $89,000   $330,400   $175,500 
Product and other sales   219,900    370,000    508,600    681,800 
Total revenues   360,000    459,000    839,000    857,300 
                     
Cost of revenues                    
Licenses, royalties and fees   39,100    51,000    82,600    102,700 
Product and other sales   129,400    177,700    291,200    358,700 
Total cost of revenues   168,500    228,700    373,800    461,400 
Gross profit   191,500    230,300    465,200    395,900 
                     
Operating expenses                    
Research and development   43,200    42,100    88,200    83,500 
Sales and marketing   57,300    75,900    148,300    144,900 
General and administrative   263,500    1,254,700    487,000    2,469,500 
Total operating expenses   364,000    1,372,700    723,500    2,697,900 
Net income (loss) from operations   (172,500)   (1,142,400)   (258,300)   (2,302,000)
                     
Other income (expenses)                    
Interest income   120,000    142,800    237,200    279,900 
Interest expense and bank charges   (6,100)   (5,800)   (12,000)   (11,500)
Total other income (expenses)   113,900    137,000    225,200    268,400 
Net income (loss) before income taxes   (58,600)   (1,005,400)   (33,100)   (2,033,600)
Income taxes   —    —    —    — 
Net income (loss)  $(58,600)  $(1,005,400)  $(33,100)  $(2,033,600)

 

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 both the three and six months ended June 30, 2025, 38% of the Company’s net sales were generated in North America and 62% internationally. For both the three and six months ended June 30, 2024, 19% of the Company’s net sales were generated in North America and 81% were generated internationally. Refer to Note 9.

 

  · Major Customers:. The Company had two and three customers that accounted for 82% and 83% of revenue for the three and six months ended June 30, 2025, respectively; and two customers that accounted for 89% of net accounts receivable for the quarter ended June 30, 2025. In addition, the Company had two customers that accounted for 83% and 84% of revenue for the three and six months ended June 30, 2024, respectively; and two customers that accounted for 93% of net accounts receivable as of December 31, 2024. Refer to Note 9.