v3.25.2
SEGMENT REPORTING
 6 Months Ended 12 Months Ended
Jun. 30, 2025
Dec. 31, 2024
Segment Reporting [Abstract]    
SEGMENT REPORTING

NOTE 15. SEGMENT REPORTING

Operating segments are defined as components of an entity about which discrete financial information is evaluated regularly by the Chief Operating Decision Maker ("CODM") in deciding how to allocate resources and assess performance. The Company operates and manages its business as one business segment, which is high-power, high-brightness blue laser technology. Accordingly, the Company has one reportable

segment. The Company has a single management team that reports to the Executive Chairman, the Company's CODM, who comprehensively manages the entire Company. The accounting policies of the segment are the same as those described in the summary of significant accounting policies.

When evaluating the Company’s financial performance, the CODM is regularly provided with more detailed expense information than what is included in the Company’s statements of operations. The CODM uses net loss, as reported in the consolidated statements of operations, in evaluating the performance of the segment. Decisions regarding resource allocation are made primarily during the annual budget planning process and reallocated as needed throughout the year. The measure of segment assets is reported on the balance sheets as total assets.

The following table shows a reconciliation of the Company’s net loss, including the significant expense categories regularly provided to and reviewed by the CODM, as computed under U.S. GAAP, to the Company’s total net loss in the condensed consolidated statements of operations:

 

 

Three months ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2025

 

 

2024

 

 

2025

 

 

2024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$

—

 

 

$

49,278

 

 

$

—

 

 

$

142,827

 

Cost of revenue:

 

 

 

 

 

 

 

 

 

 

 

 

Materials

 

 

11,870

 

 

 

12,789

 

 

 

16,463

 

 

 

50,160

 

Direct labor

 

 

(1,408

)

 

 

441,762

 

 

 

151,708

 

 

 

934,658

 

Direct job costs

 

 

(15,000

)

 

 

148,364

 

 

 

(48,273

)

 

 

243,748

 

Overhead

 

 

—

 

 

 

130,811

 

 

 

111,281

 

 

 

362,116

 

Total cost of revenue

 

 

(4,538

)

 

 

733,726

 

 

 

231,179

 

 

 

1,590,682

 

Gross margin

 

 

4,538

 

 

 

(684,448

)

 

 

(231,179

)

 

 

(1,447,855

)

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

 

—

 

 

 

683,381

 

 

 

184,563

 

 

 

1,449,876

 

Selling and marketing

 

 

526,996

 

 

 

(73,070

)

 

 

1,070,333

 

 

 

272,520

 

General and administrative

 

 

4,095,229

 

 

 

1,940,448

 

 

 

6,174,034

 

 

 

4,593,243

 

Total operating expenses

 

 

4,622,225

 

 

 

2,550,759

 

 

 

7,428,930

 

 

 

6,315,639

 

Other segment items (1)

 

 

(7,607,288

)

 

 

(9,403,676

)

 

 

(21,176,291

)

 

 

(10,580,487

)

Segment net loss

 

$

(12,224,975

)

 

$

(12,638,883

)

 

$

(28,836,400

)

 

$

(18,343,981

)
Other segment items consist of interest income, interest expense, change in fair value of warrant liabilities, change in fair value of derivative liability, change in fair value of notes payable, loss on issuance of notes payable, loss on extinguishment of notes payable, gain on sale of intellectual property intangible assets, loss on impairment of inventories, property and equipment and operating lease right-of-use asset, interest expense recognized on remeasurement of preferred stock liability and other gain (loss), net.

NOTE 14. SEGMENT REPORTING

Operating segments are defined as components of an entity about which discrete financial information is evaluated regularly by the Chief Operating Decision Maker ("CODM") in deciding how to allocate resources and assess performance. The Company operates and manages its business as one business segment, which is high-power, high-brightness blue laser technology. Accordingly, the Company has one reportable segment. The Company has a single management team that reports to the Chief Executive Officer, the Company's CODM, who comprehensively manages the entire Company. The accounting policies of the segment are the same as those described in the summary of significant accounting policies.

When evaluating the Company’s financial performance, the CODM is regularly provided with more detailed expense information than what is included in the Company’s statements of operations. The CODM uses net loss, as reported in the consolidated statements of operations, in evaluating the performance of the segment. Decisions regarding resource allocation are made primarily during the annual budget planning process and reallocated as needed throughout the year. The measure of segment assets is reported on the balance sheets as total assets.

The following table shows a reconciliation of the Company’s net loss, including the significant expense categories regularly provided to and reviewed by the CODM, as computed under U.S. GAAP, to the Company’s total net loss in the consolidated statements of operations:

 

 

Year Ended
December 31,

 

 

 

2024

 

 

2023

 

 

 

 

 

 

 

 

Revenue

 

$

152,127

 

 

$

2,085,532

 

Cost of revenue:

 

 

 

 

 

 

Materials

 

 

57,867

 

 

 

944,615

 

Direct labor

 

 

1,336,722

 

 

 

1,457,823

 

Direct job costs

 

 

222,835

 

 

 

2,833,893

 

Overhead

 

 

588,052

 

 

 

459,102

 

Total cost of revenue

 

 

2,205,476

 

 

 

5,695,433

 

Gross margin

 

 

(2,053,349

)

 

 

(3,609,901

)

Operating expenses:

 

 

 

 

 

 

Research and development

 

 

1,821,816

 

 

 

5,462,680

 

Selling and marketing

 

 

468,074

 

 

 

1,539,690

 

General and administrative

 

 

8,807,651

 

 

 

11,117,525

 

Total operating expenses

 

 

11,097,541

 

 

 

18,119,895

 

Other segment items (1)

 

 

(21,364,864

)

 

 

1,019,350

 

Segment net loss

 

$

(34,515,754

)

 

$

(20,710,446

)

 

(1) Other segment items consist of interest income, interest expense, change in fair value of warrant liabilities, change in fair value of derivative liability, loss on extinguishment of debt and other income, net.