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6. Segment Information
The Company operates as one operating segment. Our chief operating decision maker (“CODM”) is our Chief Executive Officer, who reviews financial information presented on a consolidated basis. The CODM uses consolidated operating loss and net loss to assess financial performance and allocate resources. These financial metrics are used by the CODM to make key operating decisions, such as the allocation of budget between cost of revenues, research and development, sales and marketing, and general and administrative expenses.
The following table presents key financial information with respect to the Company’s single operating segment (in thousands):
| | | Three months ended March 31, | |
| | | 2026 | | | 2025 | |
| Revenues | | $ | 614 | | | $ | 513 | |
| | | | | | | | | |
| Costs and expenses(a): | | | | | | | | |
| Cost of revenues | | | 4 | | | | 9 | |
| Product R&D | | | 65 | | | | 41 | |
| General and administrative, including rent | | | 320 | | | | 196 | |
| Payroll and related | | | 1,652 | | | | 1,703 | |
| Professional fees and IP | | | 534 | | | | 369 | |
| Marketing and travel | | | 98 | | | | 160 | |
| Total costs and expenses | | | 2,673 | | | | 2,478 | |
| Other segment items(b) | | | (12 | ) | | | - | |
| Other income, net | | | 209 | | | | 155 | |
| Loss before provision for income taxes | | | (1,862 | ) | | | (1,810 | ) |
| Provision for (benefit from) income taxes | | | 1 | | | | (10 | ) |
| Loss from continuing operations | | $ | (1,863 | ) | | $ | (1,800 | ) |
| (a) | The significant expense categories and amounts align with the segment-level information that is regularly provided to the chief operating decision-maker. |
| (b) | Other segment items primarily include depreciation and amortization, payroll and related - re-allocated to cost of revenues, and stock options expense. |
The following table presents the long-lived assets property and equipment and right-of-use assets by geographic area (in thousands):
| | | March 31, 2026 | | | December 31, 2025 | |
| United States | | $ | 68 | | | $ | 72 | |
| Sweden | | | 413 | | | | 528 | |
| Total | | $ | 481 | | | $ | 600 | |
We report revenues from external customers based on the country where the customer is located. The following table presents net revenues by country (in thousands):
| | | Three months ended March 31, | |
| | | 2026 | | | 2025 | |
| | | Amount | | | Percentage | | | Amount | | | Percentage | |
| Japan | | $ | 430 | | | | 70.0 | % | | $ | 350 | | | | 68.3 | % |
| Sweden | | | 57 | | | | 9.3 | % | | | 33 | | | | 6.4 | % |
| Germany | | | 7 | | | | 1.1 | % | | | 10 | | | | 1.9 | % |
| China | | | 1 | | | | 0.2 | % | | | 6 | | | | 1.2 | % |
| Other | | | - | | | | - | % | | | 1 | | | | 0.2 | % |
| | | $ | 495 | | | | 80.6 | % | | $ | 400 | | | | 78.0 | % |
| United States | | | 119 | | | | 19.4 | % | | | 113 | | | | 22.0 | % |
| Total | | $ | 614 | | | | 100.0 | % | | $ | 513 | | | | 100.0 | % |
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