v3.26.1
Note 22 - Segment and Geographical Disclosures
6 Months Ended
May 31, 2026
Notes to Financial Statements  
Segment Reporting [Text Block]

22.

SEGMENT AND GEOGRAPHICAL DISCLOSURES

 

Beginning in fiscal year 2025, the Company manages its operations through two reportable channels: (1) Direct to Consumer (“DTC”) – includes sales through the Company’s e commerce website, Amazon storefronts, and Company operated retail stores, and (2) Wholesale ("dealer/distributor") – includes sales to distributors, law enforcement agencies, retailers, and international distributors.

 

The CEO, who is also the CODM, evaluates sales channel performance primarily based on sales channel revenue less cost of sales and gross margin. Operating expenses, including marketing and variable expenses, executive compensation, public company costs, certain IT infrastructure costs, share-based compensation, and items not allocable to a specific segment, are reported as Other Items. No segment specific balance sheet information is regularly reviewed by the CODM; therefore, the Company does not report segment assets or segment liabilities

 

The tables below (in thousands) summarize, by geographic region, the Company’s revenue for the three and six months ended May 31, 2026 and 2025, respectively, and long-lived assets and total assets as of  May 31, 2026 and November 30, 2025, respectively. The Company’s long-lived assets consist of intangible assets, property and equipment, right of use assets, and deposits for equipment:

 

Revenue:

                    

Three Months Ended

 

U.S./Mexico

  

South Africa

  

Europe/South America/Asia

  

Canada

  

Total

 

May 31, 2026

 $15,190  $1  $555  $641  $16,387 

May 31, 2025

 $25,037  $283  $2,872  $313  $28,505 

 

Six Months Ended

 

U.S./Mexico

  

South Africa

  

Europe/South America/Asia

  

Canada

  

Total

 

May 31, 2026

 $42,869  $1  $1,200  $1,366  $45,436 

May 31, 2025

 $49,155  $458  $4,178  $904  $54,695 

 

Long-lived assets

 

US

  

South Africa

  

Total

 

May 31, 2026

 $9,241  $17  $9,258 

November 30, 2025

 $14,256  $93  $14,349 

 

Total Assets

 

US

  

South Africa

  

Canada

  

Total

 

May 31, 2026

 $65,324  $2,824  $269  $68,417 

November 30, 2025

 $80,160  $3,990  $338  $84,488 

 

The table below (in thousands) summarize the Company’s revenue by reportable sales channel for the three and six months ended May 31, 2026:

 

  

Three Months Ended

 
  

May 31, 2026

 
             
  

DTC

  

Wholesale

  

Total

 

Revenue

 $10,999  $5,388  $16,387 

COS

  8,103   6,501   14,604 

Gross Margin

 $2,896  $(1,113) $1,783 

Gross Margin %

  26.3%  -20.7%  10.9%
             

Operating Expenses

     $14,629  $14,629 
             

Profit from operations

         $(12,846)

Operating Margin %

          -78.4%

 

  

Six Months Ended

 
  

May 31, 2026

 
             
  

DTC

  

Wholesale

  

Total

 

Revenue

 $29,120  $16,316  $45,436 

COS

  14,373   11,879   26,252 

Gross Margin

 $14,747  $4,437  $19,184 

Gross Margin %

  50.6%  27.2%  42.2%
             

Operating Expenses

     $31,102  $31,102 
             

Profit from operations

         $(11,918)

Operating Margin %

          -26.2%

 

The tables below (in thousands) summarize the Company’s revenue by reportable sales channel for the three and six months ended May 31, 2025:

 

  

Three Months Ended

 
  

May 31, 2025

 
             
  

DTC

  

Wholesale

  

Total

 

Revenue

 $16,840  $11,665  $28,505 

COS

  5,666   5,275   10,941 

Gross Margin

 $11,174  $6,390  $17,564 

Gross Margin %

  66.4%  54.8%  61.6%
             

Operating Expenses

     $14,238  $14,238 
             

Profit from operations

         $3,326 

Operating Margin %

          11.7%

 

  

Six Months Ended

 
  

May 31, 2025

 
             
  

DTC

  

Wholesale

  

Total

 

Revenue

 $36,703  $17,992  $54,695 

COS

  12,582   8,625   21,207 

Gross Margin

 $24,121  $9,367  $33,488 

Gross Margin %

  65.7%  52.1%  61.2%
             

Operating Expenses

     $28,466  $28,466 
             

Profit from operations

         $5,022 

Operating Margin %

          9.2%