v3.26.1
CONCENTRATIONS OF RISKS AND SEGMENT
3 Months Ended
Mar. 31, 2026
Risks and Uncertainties [Abstract]  
CONCENTRATIONS OF RISKS AND SEGMENT

NOTE 10 CONCENTRATIONS OF RISKS AND SEGMENT

 

Major Customers and Accounts Receivable

 

The Company had no customers whose revenue individually represented 10% or more of the Company’s total revenue during the three-month periods ended March 31, 2026, and 2025. The Company had no customers with accounts receivable balances representing more than 10% on March 31, 2026, and March 31, 2025, and one and three third party payors representing 43% and 36% of the Company’s total accounts receivable on March 31, 2026, and 2025, 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, and increasingly, smart-based 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 its segment(s) includes the basis of organization and 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.

 

   2026   2025 
   For the three months ended March 31, 
   2026   2025 
Revenues from external customers and consolidated revenues  $22,094,389   $20,113,938 
           
Cost of revenues   15,468,946    14,402,488 
Compensation costs, excluding share-based payments   2,931,157    2,416,572 
Share-based payments   3,097,885    3,041,157 
Marketing programs   5,109,313    4,677,381 
Professional fees, excluding share-based payments   2,083,137    1,677,936 
Depreciation, amortization, and impairment of intangibles   1,179,223    1,007,817 
Other operating expenses   386,888    603,612 
Total operating expenses, net  $30,256,549   $27,826,963
           
Other expenses          
Amortization of debt discount   278,499    278,499 
Interest expense, net   834,918    1,060,604 
Net loss  $(9,275,577)  $(9,052,128)