| Segment Reporting |
Note 15.
Segment Reporting
In accordance with ASC 280, operating segments
are defined as components of an enterprise about which separate financial information is available that is regularly reviewed by the
CODM in assessing performance and deciding how to allocate resources. The Company’s CODM is its CEO, who performs such assessments
and allocates resources based on information at the consolidated level.
The Company’s two reportable segments
are: (1) Deep Isolation US & EMEA and (2) Freestone. See Note 2 for a description of the Company’s reportable segments. The
Company had no inter-segment sales for the years presented.
The
Company’s income statements by segment, significant segment expenses, and segment assets are presented below (in thousands):
| |
|
Year
Ended December 31, 2025 |
|
| |
|
Deep
Isolation US
& EMEA |
|
|
Freestone |
|
|
Total |
|
| Revenues |
|
$ |
2,494 |
|
|
$ |
3,642 |
|
|
$ |
6,136 |
|
| Cost of services |
|
|
1,093 |
|
|
|
1,541 |
|
|
|
2,634 |
|
| Depreciation and amortization expense |
|
|
1 |
|
|
|
114 |
|
|
|
115 |
|
| Selling, general and administrative expenses |
|
|
7,232 |
|
|
|
1,521 |
|
|
|
8,753 |
|
| Research and development costs |
|
|
404 |
|
|
|
- |
|
|
|
404 |
|
| Operating (loss) income |
|
$ |
(6,236 |
) |
|
$ |
466 |
|
|
$ |
(5,770 |
) |
| Other income, net |
|
|
433 |
|
|
|
2 |
|
|
|
435 |
|
| Segment (loss) income before income
tax |
|
$ |
(5,803 |
) |
|
$ |
468 |
|
|
$ |
(5,335 |
) |
| Income tax expense |
|
|
1 |
|
|
|
- |
|
|
|
1 |
|
| Segment (loss) income |
|
$ |
(5,804 |
) |
|
$ |
468 |
|
|
$ |
(5,336 |
) |
| |
|
As
of December 31, 2025 |
|
| |
|
Deep
Isolation US
& EMEA |
|
|
Freestone |
|
|
Total |
|
| Cash and cash equivalents |
|
$ |
25,926 |
|
|
$ |
1,508 |
|
|
$ |
27,434 |
|
| Accounts receivable, net |
|
|
140 |
|
|
|
299 |
|
|
|
439 |
|
| Contract assets |
|
|
44 |
|
|
|
231 |
|
|
|
275 |
|
| Other current assets |
|
|
641 |
|
|
|
31 |
|
|
|
672 |
|
| Property, plant and equipment, net |
|
|
66 |
|
|
|
62 |
|
|
|
128 |
|
| Intangible assets, net |
|
|
- |
|
|
|
73 |
|
|
|
73 |
|
| Finance lease right-of-use assets |
|
|
- |
|
|
|
11 |
|
|
|
11 |
|
| Operating lease right-of-use assets |
|
|
- |
|
|
|
269 |
|
|
|
269 |
|
| Other non-current assets |
|
|
140 |
|
|
|
- |
|
|
|
140 |
|
| Goodwill |
|
|
- |
|
|
|
182 |
|
|
|
182 |
|
| |
|
Year
Ended December 31, 2024 |
|
| |
|
Deep
Isolation US
& EMEA |
|
|
Freestone |
|
|
Total |
|
| Revenues |
|
$ |
2,877 |
|
|
$ |
4,176 |
|
|
$ |
7,053 |
|
| Cost of services |
|
|
1,841 |
|
|
|
1,824 |
|
|
|
3,665 |
|
| Depreciation and amortization expense |
|
|
2 |
|
|
|
108 |
|
|
|
110 |
|
| Selling, general and administrative expenses |
|
|
2,886 |
|
|
|
1,256 |
|
|
|
4,142 |
|
| Research and development costs |
|
|
202 |
|
|
|
- |
|
|
|
202 |
|
| Operating (loss) income |
|
$ |
(2,054 |
) |
|
$ |
988 |
|
|
$ |
(1,066 |
) |
| Other income/(expense), net |
|
|
182 |
|
|
|
(109 |
) |
|
|
73 |
|
| Segment (loss) income before income tax |
|
$ |
(1,872 |
) |
|
$ |
879 |
|
|
$ |
(993 |
) |
| Income tax (benefit) expense |
|
|
1 |
|
|
|
- |
|
|
|
1 |
|
| Segment (loss) income |
|
$ |
(1,873 |
) |
|
$ |
879 |
|
|
$ |
(994 |
) |
| |
|
As
of December 31, 2024 |
|
| |
|
Deep
Isolation US
& EMEA |
|
|
Freestone |
|
|
Total |
|
| Cash and cash equivalents |
|
$ |
944 |
|
|
$ |
1,205 |
|
|
$ |
2,149 |
|
| Accounts receivable, net |
|
|
348 |
|
|
|
651 |
|
|
|
999 |
|
| Contract assets |
|
|
20 |
|
|
|
91 |
|
|
|
111 |
|
| Other current assets |
|
|
50 |
|
|
|
30 |
|
|
|
80 |
|
| Property, plant and equipment, net |
|
|
3 |
|
|
|
52 |
|
|
|
55 |
|
| Intangible assets, net |
|
|
- |
|
|
|
153 |
|
|
|
153 |
|
| Finance lease right-of use assets |
|
|
- |
|
|
|
14 |
|
|
|
14 |
|
| Operating lease right-of-use assets |
|
|
4 |
|
|
|
383 |
|
|
|
387 |
|
| Goodwill |
|
|
- |
|
|
|
182 |
|
|
|
182 |
|
Geographical
Information
The
Company is domiciled in the United States, but also has operations in EMEA (UK). The following table summarizes net sales by geographic
area (in thousands):
| |
|
Year
Ended December 31, |
|
| |
|
2025 |
|
|
2024 |
|
| U.S. |
|
$ |
6,058 |
|
|
$ |
6,555 |
|
| EMEA |
|
|
78 |
|
|
|
498 |
|
| Total |
|
$ |
6,136 |
|
|
$ |
7,053 |
|
The
following table summarizes long-lived assets by geographic area (in thousands):
| |
|
As
of December 31, |
|
| |
|
2025 |
|
|
2024 |
|
| U.S. |
|
$ |
481 |
|
|
$ |
609 |
|
| EMEA |
|
|
- |
|
|
|
- |
|
| Total |
|
$ |
481 |
|
|
$ |
609 |
|
Major
Customers
During the years ended December 31,
2025 and 2024, four customers, accounted for approximately 81% and 90%, respectively, of the Company’s revenue as follows (in thousands):
| |
|
Year
Ended December 31, |
|
| |
|
2025 |
|
|
2024 |
|
| |
|
$ |
|
|
% |
|
|
$ |
|
|
% |
|
| Revenue earned from the U.S.
Department of Energy |
|
$ |
719 |
|
|
|
12 |
% |
|
$ |
1,529 |
|
|
|
22 |
% |
| Revenue earned from the CPCCO |
|
|
2,117 |
|
|
|
35 |
% |
|
|
2,792 |
|
|
|
40 |
% |
| Revenue earned from Oklo |
|
|
668 |
|
|
|
11 |
% |
|
|
342 |
|
|
|
5 |
% |
| Revenue earned from the H2C (formerly WRPS) |
|
|
1,109 |
|
|
|
24 |
% |
|
|
1,490 |
|
|
|
24 |
% |
| Total revenues from major customers |
|
$ |
4,613 |
|
|
|
81 |
% |
|
$ |
6,153 |
|
|
|
90 |
% |
|