v3.26.1
Segment Information
 6 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
Segment Information

Note 3. Segment Information

 

The Company operates as a single operating segment which is engaged in the development and marketing of technology and devices to control the flow of light (as described in Note 2). The Company develops and licenses our patented suspended particle device (“SPD-Smart”) light-control technology to other companies that manufacture and/or market the: (i) SPD-Smart chemical emulsion, (ii) light-control film made from the chemical emulsion, (iii) the light-control panels made by laminating the film, (iv) electronics to power end-products incorporating the film, or (v) lamination services for and the end-products themselves such as “smart” windows, skylights and sunroofs. The Company currently has numerous licensees that, in the aggregate, are licensed to primarily serve five major SPD-Smart application areas (aerospace, architectural, automotive, marine and display products) in every country of the world. The Company derives revenue from licensees in North America, Europe and Asia. The Company’s Chief Operating Decision Maker (“CODM”) reviews revenue and consolidated net operating loss as a total and not by industry of licensees, and the royalty rates that we charge our licensees are consistent when measuring the Company’s profitability and allocating resources across geographical location and by industry. The Company does not have intra-entity sales or transfers. The Company’s long-lived assets consist of property and equipment and operating lease right-of-use assets (“ROU”), all of which are located in the United States. During the six month periods ended June 30, 2026 and 2025, 93% and 99%, respectively, of the Company’s revenue was generated from sources outside of the United States.

 

The CODM is the Company’s Chief Executive Officer and acting Chief Financial Officer. The CODM assesses performance for the single operating segment and decides how to allocate resources based on consolidated net operating loss that is also reported on the Company’s condensed consolidated statements of operations.

 

Consolidated net operating loss is used by the Company’s CODM to monitor budget versus actual results; conducting this monitoring on at least a quarterly basis as a part of the Company’s quarterly 10-Q and annual 10-K filing processes. Included in the review process is a detailed review and discussion related to the Company’s Management’s Discussion and Analysis. In addition, meetings of the Company’s Audit Committee are also held at least quarterly and those meetings include a review of consolidated operating results.

 

 

The following table illustrates the information about the Company’s single reportable segment, which the Company’s CODM regularly evaluates in addition to the information already presented on the Company’s condensed consolidated statements of operations and identifies expense items exceeding the Company’s significant expense thresholds described above:

 

   2026   2025   2026   2025 
   Six months ended
June 30,		   Three months ended
June 30,		 
   2026   2025   2026   2025 
                 
Revenue  $222,665   $689,680   $86,346   $129,904 
                     
Operating Expenses:                    
Employee compensation   460,885    599,072    201,731    312,560 
Professional fees   162,204    132,657    55,404    44,757 
Directors fees and expenses   154    227,107    154    107,107 
Marketing and investor relations   56,465    79,002    35,209    48,756 
Insurance**   67,359    91,544    31,243    45,355 
Occupancy costs   39,664    42,132    19,998    20,615 
Credit loss expense   150,000    124,253    150,000    124,253 
Patent costs   54,532    27,117    21,957    15,313 
Stock listing fees   36,250    35,000    18,125    17,500 
Legal fees   96,224    1,070    76,675    1,070 
Depreciation and amortization   289    5,723    145    2,864 
Other operating expenses*   24,572    47,721    16,575    35,772 
Operating expenses   1,148,598    1,412,398    627,216    775,922 
                     
Research and Development Expenses:                    
Employee compensation   81,588    90,643    34,167    43,280 
Insurance**   65,848    89,635    30,612    44,425 
Occupancy costs   118,989    127,796    59,993    63,252 
Depreciation and amortization   342    443    173    223 
Other research and development costs*   7,467    23,446    3,939    17,906 
Research and development expenses   274,234    331,963    128,884    169,086 
                     
Operating Loss  $(1,200,167)  $(1,054,681)  $(669,754)  $(815,104)

 

* Other operating expenses and other research and development expenses consist principally of miscellaneous expenses, each of which is under the Company’s threshold to be separately presented as a significant expense.
   
** Insurance includes all coverage including property, liability, directors’ and officers’ and employees’ medical.