v3.26.1
Segments
 3 Months Ended
Apr. 03, 2026
Segment [Abstract]  
SEGMENTS

19. SEGMENTS

 

The Company operates and manages its business through its divisions: CMC and EMP. Operating segments are defined as components of an entity for which separate financial information is available and that is regularly reviewed by the CODM, the Company’s CEO, in deciding how to allocate resources, assess performance, and establish budgets and forward-looking forecasts.

 

The Company reports its financial results in two operating and reportable business segments: CMC and EMP. The Company’s reportable segments reflect the way in which internally reported financial information is used to make decisions and allocate resources, as the CODM primarily reviews financial performance at distinct levels between CMC and EMP when making operating decisions, allocating resources, and evaluating financial performance. Refer to Note 1 — Business and Organization for further information on the operations of the CMC and EMP divisions. The segment information below excludes the results from discontinued operations.

 

The remaining operations of the Company do not meet the quantitative thresholds for separate segment disclosure and are included within Corporate and Other in the below reconciliation of reportable segment results to the Company’s consolidated results. Corporate and Other includes corporate administrative functions and other consolidated entities that are insignificant to the Company’s consolidated results.

 

The CODM assesses performance and decides how to allocate resources and make operating decisions based on income from continuing operations before taxes that is reported on the consolidated statements of operations. This metric is also used to monitor budget versus actual results. The measure of segment assets is reported on the consolidated balance sheets as total assets. Revenues, expenses, and assets requiring disclosure by segment are also included in the accompanying consolidated financial statements.

 

The following tables (i) summarize total revenues by segment, (ii) reconcile each segment’s revenues to their respective segment operating income, including segment operating expenses, (iii) reconcile each segment’s income from continuing operations before taxes and (iv) reconcile (loss) income from continuing operations for the three months ended April 3, 2026 and March 31, 2025:

 

    Three Months Ended April 3, 2026  
    CMC     EMP     Corporate and Other     Total  
Revenue:                        
Revenue – Point in time   $ 31,177     $ 6,280     $ —     $ 37,457  
Revenue – Over time     17,029       1,521       —       18,550  
Total revenue     48,206       7,801       —       56,007  
Cost of goods sold     38,415       5,744       —       44,159  
Gross profit     9,791       2,057       —       11,848  
Operating expenses:                                
General and administrative(1)     2,692       1,418       2,958       7,068  
Research and development     518       330       2       850  
Sales and marketing     1,366       548       153       2,067  
Operating expenses     4,576       2,296       3,113       9,985  
Operating income (loss)     5,215       (239 )     (3,113 )     1,863  
Interest expense (income)     542       89       (18 )     613  
Interest expense – related party     368       78       181       627  
Other (income) expense, net(2)     11       (29 )     (3,731 )     (3,749 )
Income (loss) from continuing operations before taxes     4,294       (377 )     455       4,372  
Income tax provision     —       4       4,706       4,710  
Income (loss) from continuing operations   $ 4,294     $ (381 )   $ (4,251 )   $ (338 )

 

 
(1) Includes stock-based compensation of approximately $0.6 million within the Corporate and Other segments, respectively. There is no stock-based compensation within the CMC and EMP segments.
(2) Includes the following line items from the consolidated statement of operations: (i) change in fair value of derivative asset and (ii) other (income) expense, net.

 

 

    Three Months Ended March 31, 2025  
    CMC     EMP     Corporate and Other     Total  
Revenue:                        
Revenue – Point in time   $ 33,060     $ 6,211     $ —     $ 39,271  
Revenue – Over time     6,053       1,063       —       7,116  
Total revenue     39,113       7,274       —       46,387  
Cost of goods sold     33,196       4,580       —       37,776  
Gross profit     5,917       2,694       —       8,611  
Operating expenses:                                
General and administrative     1,645       1,291       323       3,259  
Research and development     477       334       —       811  
Sales and marketing     1,204       336       143       1,683  
Operating expenses     3,326       1,961       466       5,753  
Operating income (loss)     2,591       733       (466 )     2,858  
Interest expense     335       95       80       510  
Interest expense (income) – related party     392       55       (31 )     416  
Other (income) expense, net     50       (25 )     54       79  
Income (loss) from continuing operations before taxes     1,814       608       (569 )     1,853  
Income tax provision     —       —       —       —  
Income (loss) from continuing operations   $ 1,814     $ 608     $ (569 )   $ 1,853  

 

For the three months ended April 3, 2026, there was one customer related to the CMC segment that accounted for more than 10% of the Company’s total revenue, accounting for approximately 11% of total revenue for the period. For the three months ended March 31, 2025, there was one customer related to the CMC segment that accounted for more than 10% of the Company’s total revenue, accounting for approximately 12% of the total revenue for the period.

 

Depreciation and amortization expense by segment for the three months ended April 3, 2026 and March 31, 2025 were as follows:

 

    Three Months Ended April 3, 2026  
    CMC     EMP     Corporate
and Other		     Total  
Depreciation and amortization   $ 1,632     $ 288     $ 3     $ 1,923  
Total depreciation and amortization   $ 1,632     $ 288     $ 3     $ 1,923  

 

    Three Months Ended March 31, 2025  
    CMC     EMP     Corporate and Other     Total  
Depreciation and amortization   $ 1,315     $ 289     $ —     $ 1,604  
Total depreciation and amortization   $ 1,315     $ 289     $ —     $ 1,604  

 

Total assets for the Company’s business segments, as of April 3, 2026 and December 31, 2025, were as follows: 

 

    April 3, 2026  
    CMC     EMP     Corporate and Other     Total  
Total assets   $ 156,025     $ 26,283     $ 4,939     $ 187,247  

 

    December 31, 2025  
    CMC     EMP     Corporate and Other     Total  
Total assets   $ 148,704     $ 26,322     $ 620     $ 175,646  

 

Capital expenditures net of grants proceeds, by segment during the three months ended April 3, 2026 and March 31, 2025 were as follows:

 

    Three Months Ended April 3, 2026  
    CMC     EMP     Corporate and Other     Total  
Purchases of property, plant and equipment, net of grant proceeds   $ 2,318     $ 19     $ —     $ 2,337  

 

    Three Months Ended March 31, 2025  
    CMC     EMP     Corporate and Other     Total  
Purchases of property, plant and equipment, net of grant proceeds   $ 2,710     $ 12     $ 11     $ 2,733  

 

The accounting policies of the business segments are the same as those for the Company.

 

As of April 3, 2026 and December 31, 2025, geographic information about long-lived assets associated with particular regions are as follows:

 

    April 3, 2026  
    United States     Europe     Total  
Property, plant and equipment, net   $ 44,185     $ —     $ 44,185  
Operating lease right-of-use assets     10,435       13       10,448  
Intangible assets, net     6,622       248       6,870  
Goodwill     2,686       1,861       4,547  
Deferred tax assets, net     —       84       84  
Other assets     872       —       872  
Total long-lived assets   $ 64,800     $ 2,206     $ 67,006  

 

    December 31, 2025  
    United States     Europe     Total  
Property, plant and equipment, net   $ 42,342     $ —     $ 42,342  
Operating lease right-of-use assets     10,570       16       10,586  
Intangible assets, net     6,922       262       7,184  
Goodwill     2,685       1,898       4,583  
Other assets     878       —       878  
Total long-lived assets   $ 63,397     $ 2,176     $ 65,573