v3.26.1
Segment Reporting
 3 Months Ended
Mar. 31, 2026
Segment Reporting [Abstract]  
Segment Reporting

Note 10. Segment Reporting

 

The Company operates as a single reportable segment, as the Chief Operating Decision Maker (“CODM”), the Chief Executive Officer (“CEO”), evaluates the business on a consolidated basis and does not receive discrete financial information for multiple business units.

 

Measure of Segment Profit or Loss

 

The CODM assesses the Company’s financial performance based on operating loss, which aligns with the amount reported in the statement of comprehensive loss. The following table presents a reconciliation of segment operating loss to net (loss) income:  

    
  

Three Months ended

March 31

 
   2026   2025 
Revenues        
   Licenses, royalties and fees  $100,700   $190,300 
   Product and other sales   289,000    288,700 
Total revenues   389,700    479,000 
Cost of revenues          
   Licenses, royalties and fees   46,400    43,500 
   Product and other sales   152,700    161,800 
Total cost of revenues   199,100    205,300 
Gross profit   190,600    273,700 
Operating expenses          
   Research and development   55,800    45,000 
   Sales and marketing   74,500    91,000 
   General and administrative   221,800    223,500 
Total operating expenses   352,100    359,500 
Net loss from operations   (161,500)   (85,800)
           
Other income (expenses)          
   Interest income   105,200    117,200 
   Interest expense and bank charges   (6,000)   (5,900)
Total other income   99,200    111,300 
Net (loss) income before income taxes   (62,300)   25,500 
   Income taxes   —    — 
Net (loss) income  $(62,300)  $25,500)

 

Significant Segment Expenses

 

The Company considers the following as significant expenses in evaluating its segment performance:

 

  · Research and Development: includes costs related to personnel, laboratory materials and supplies and product development and testing for ink technologies.

 

  · General and Administrative: includes personnel costs, professional fees, and other overhead expenses.

 

  · Sales and Marketing: includes personnel costs and other sales related expenses.

 

  · Cost of Revenues: represents labor costs, material costs and manufacturing overhead costs associated with the production of materials transferred to the customer from the Company’s facility.

 

Since the Company has only one reportable segment, no additional segment disclosures are required beyond entity-wide disclosures presented below.

 

Entity-Wide Disclosures

 

  · Geographic Revenue Information: For the three months ended March 31, 2026, 21% of the Company’s net sales were generated in North America and 79% internationally. For the three months ended March 31, 2025, 39% of the Company’s net sales were generated in North America and 61% were generated internationally. Refer to Note 8.

 

  · Major Customers: The Company had two customers that accounted for 85% of revenue and 87% of net accounts receivable for the three months ended March 31, 2026. In addition, the Company had three customers that accounted for 84% of revenue for the three months ended March 31, 2025 and one customer that accounted for 82% of net accounts receivable as of December 31, 2025. Refer to Note 8.