v3.26.1
CONCENTRATIONS OF RISKS
12 Months Ended
Dec. 31, 2025
Risks and Uncertainties [Abstract]  
CONCENTRATIONS OF RISKS

NOTE 12 CONCENTRATIONS OF RISKS

 

Major Customers and Accounts Receivable

 

The Company had no customers whose revenue individually represented 10% or more of the Company’s total revenue. The Company had two and three third-party payor accounts receivable balance representing 59% and 24% of the Company’s total accounts receivable at December 31, 2025 and 2024, respectively.

 

Liquidity

 

The Company’s cash and cash equivalents are held primarily with two financial institutions. The Company has deposits which exceed the amount insured by the FDIC. To reduce the risk associated with the failure of such counterparties, the Company periodically evaluates the credit quality of the financial institutions in which it holds deposits.

 

Product and Geographic Markets

 

The Company generates its income primarily from lighting and heating products sold primarily in the United States.

 

Segment and Expense Disaggregation

 

The Company operates in one segment: advanced-safe-smart technologies and related products. The Company used the following factors to identify includes the basis of organization, the relative similarities in types of product offerings. The chief operating decision maker consists of a team comprised of the Company’s Executive Chairman and its Chief Executive Officer. The total assets of the segments amount to the Company’s consolidated assets. Long-lived assets, which consists of property and equipment and right of use assets are located in the United States.

 

The Company has concluded that consolidated net income or loss is the measure of segment profitability. The following is a reconciliation of the Company’s revenues from external customers and consolidated revenues and the consolidated and segment loss, including significant disaggregated segment expenses.

 

   2025   2024 
   For the year ended December 31, 
   2025   2024 
Revenues from external customers and consolidated revenues  $92,009,949   $86,276,876 
           
Cost of revenues   (64,173,870)   (61,682,934)
Compensation costs, excluding share-based payments   (10,180,474)   (9,730,111)
Share-based payments   (13,560,580)   (13,474,433)
Marketing programs   (20,800,181)   (18,800,142)
Professional fees, excluding share-based payments   (6,795,654)   (7,149,168)
Depreciation, amortization, and impairment of intangibles   (4,176,466)   (5,185,706)
Other operating expenses   (1,866,114)   (2,366,621)
Total operating expenses, net  $(121,553,339)  $(118,389,115)
           
Other expenses          
Amortization of debt discount   (1,113,996)   (1,211,974)
Interest expense, net   (2,758,218)   (2,843,931)
Gain on extinguishment of debt   -    400,000 
Net loss  $(33,415,604)  $(35,768,144)