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SEGMENT INFORMATION
 12 Months Ended
Dec. 31, 2025
Segment Reporting [Abstract]  
SEGMENT INFORMATION

NOTE 9. SEGMENT INFORMATION

 

Our results of operations for the years ended December 31, 2025 and 2024 represent a single operating and reporting segment referred to as Contract Manufacturing within the EMS industry. The Company operates in the Medical Device, Medical Imaging, Aerospace and Defense, and Industrial markets with over 50% of its net sales coming from the medical-related markets. We strategically direct production between our various manufacturing facilities based on a number of considerations to best meet our customers’ needs. Our plants generate net sales over several of the markets the Company serves. We share resources for sales, marketing, engineering, supply chain, information services, human resources, payroll, and all corporate accounting functions. Our chief operating decision maker (the “CODM”) is the Company’s President and Chief Executive Officer. The CODM regularly evaluates financial information on a consolidated basis to assess performance and allocate resources.

 

The following table presents selected financial information with respect to the Company’s single operating segment for the years ended December 31, 2025 and 2024:

 

   2025   2024 
         
Net sales  $118,365   $128,133 
Cost of goods sold   100,359    111,411 
Gross profit   18,006    16,722 
Operating expenses:          
Selling   4,803    3,446 
General and administrative   10,790    11,709 
Research and development   1,172    1,191 
Restructuring charges   266    571 
Total operating expenses   17,031    16,917 
Income (loss) from operations   975    (195)
Other expense:          
Interest expense   (964)   (744)
Income (loss) before income taxes   11    (939)
Income tax expense   263    356 
Net loss  $(252)  $(1,295)

 

 

The Company’s long-lived tangible assets, including the Company’s operating lease assets recognized on the consolidated balance sheets were geographically located as follows as of December 31:

 

 SCHEDULE OF LONG LIVED TANGIBLE ASSETS

   2025   2024 
United States  $8,876   $10,429 
Mexico   2,015    2,445 
China   1,328    1,497 
Total long-lived tangible assets  $12,219   $14,371 

 

Export net from our U.S. domestic operations represent approximately 3.3% and 3.4% of consolidated net sales for the years ended December 31, 2025 and 2024, respectively. Net sales by our major EMS industry markets are as follows for the years ended December 31:

 SCHEDULE OF NET SALES BY EMS INDUSTRY MARKETS

   2025   2024 
Medical Device  $31,930   $34,636 
Medical Imaging   39,999    37,492 
Industrial   30,940    35,517 
Aerospace and Defense   15,496    20,488 
Total net sales  $118,365   $128,133