v3.26.1
Note 12 - Segment Information
9 Months Ended
Jun. 30, 2026
Notes to Financial Statements  
Segment Reporting [Text Block]

12. Segment Information

 

The Company's business segments are comprised of: Smart Water, Energy Solutions and Intelligent Industrial. The Smart Water segment emphasizes the Company’s targeted approach in the water management industry. This business segment contains the Hydroconn® smart water connectivity offerings and the Company's Aquana products. The Energy Solutions segment encompasses the Company’s traditional business in oil and gas land and ocean bottom exploration products, reservoir monitoring solutions, and will additionally incorporate emerging energy solutions and microseismic monitoring. This segment will include energy-related business from Quantum’s SADAR® products and associated analytics.  The Intelligent Industrial segment includes seismic sensor products used for vibration monitoring geotechnical applications such as mine safety applications and earthquake detection, designs seismic products targeted at the border and perimeter security markets, imaging products, as well as providing contract manufacturing services. 

 

The Company defines its segments as those operations our chief operating decision maker (“CODM”) regularly reviews to analyze performance and allocate resources. The Company’s CODM is the Chief Executive Officer. The CODM regularly reviews revenue, gross profit, operating expenses and operating income (loss) by segment as the primary measures of segment performance. The CODM reviews revenue as a primary indicator of operational performance, assessing how much revenue is brought in from core business activities, which reflects demand and execution of each segment’s strategy. Gross profit, is reviewed by the CODM as a diagnostic metric and is particularly useful in evaluating margin trends. Operating income is the key profitability metric used to assess performance across segments and make decisions related to resource allocation, including capital expenditures, headcount, and other investment initiatives. Each of these metrics are considered in budgeting, forecasting, and operational planning decisions.

 

For financial reporting purposes, we are organized into these reportable segments and “Corporate”, which includes the remainder of our businesses.  The following table summarizes the Company’s segment information (in thousands).  

 

  

Three Months Ended

  

Nine Months Ended

 
  

June 30, 2026

  

June 30, 2025

  

June 30, 2026

  

June 30, 2025

 

Revenue:

                

Smart Water

 $4,622  $10,518  $14,106  $27,278 

Energy Solutions

  5,851   8,107   30,116   34,977 

Intelligent Industrial

  5,246   6,136   16,656   17,596 

Corporate

  85   82   254   238 
   15,804   24,843   61,132   80,089 
                 

Cost of revenue:

                

Smart Water

  3,394   5,946   10,025   16,670 

Energy Solutions

  7,596   6,213   33,619   19,337 

Intelligent Industrial

  4,274   5,107   13,499   14,545 

Corporate

  44   38   103   101 
   15,308   17,304   57,246   50,653 
                 

Gross profit (loss):

                

Smart Water

  1,228   4,572   4,081   10,608 

Energy Solutions

  (1,745)  1,894   (3,503)  15,640 

Intelligent Industrial

  972   1,029   3,157   3,051 

Corporate

  41   44   151   137 
   496   7,539   3,886   29,436 
                 

Operating expenses:

                

Smart Water

  2,176   2,339   7,452   6,585 

Energy Solutions

  2,845   3,128   9,303   10,260 

Intelligent Industrial

  1,436   2,070   5,021   6,319 

Corporate

  4,177   4,249   13,914   12,965 
   10,634   11,786   35,690   36,129 
                 

Gain on disposal of property

     4,616      4,616 
                 

Income (loss) from operations:

                

Smart Water

  (948)  2,233   (3,371)  4,023 

Energy Solutions

  (4,590)  (1,234)  (12,806)  5,380 

Intelligent Industrial

  (464)  (1,041)  (1,864)  (3,268)

Corporate

  (4,136)  411   (13,763)  (8,212)
   (10,138)  369   (31,804)  (2,077)
                 

Other segment disclosures:

                
                 

Interest income:

                

Smart Water

            

Energy Solutions

  464   403   1,598   1,202 

Intelligent Industrial

            

Corporate

  57   134   173   773 
   521   537   1,771   1,975 

Interest expense:

                

Smart Water

            

Energy Solutions

  40      112    

Intelligent Industrial

            

Corporate

     44      131 
   40   44   112   131 
                 

Depreciation and amortization expenses:

                

Smart Water

  502   118   999   351 

Energy Solutions

  1,218   1,417   4,798   4,827 

Intelligent Industrial

  547   121   1,010   375 

Corporate

  363   743   1,093   2,105 
   2,630   2,399   7,900   7,658 
                 
                 

Inventory obsolescence and stock-based compensation expenses:

                

Smart Water

  96   51   457   74 

Energy Solutions

  293   42   1,351   1,117 

Intelligent Industrial

  267   271   892   338 

Corporate

  160   135   634   771 
   816   499   3,334   2,300 
                 

 

The Company's manufacturing operations for its operating business segments are combined.  Therefore, the Company does not segregate and report separate balance sheet accounts for each of its segments and therefore, no such segment balance sheet information is presented in the table above.

 

"Corporate" expense from operations primarily consists of the Company's Houston headquarters general and administrative expenses.

 

The Company generates revenue from product sales, product rentals and services from its subsidiaries located in the United States, Canada and the United Kingdom.  Revenue generated by the Company's subsidiaries is as follows (in thousands):

 

  

Three Months Ended

  

Nine Months Ended

 
  

June 30, 2026

  

June 30, 2025

  

June 30, 2026

  

June 30, 2025

 

United States

 $14,780  $23,839  $57,845  $76,888 

Canada

  362   335   1,246   1,234 

United Kingdom

  662   669   2,041   1,967 
  $15,804  $24,843  $61,132  $80,089 

 

A summary of revenue by Geographic area is as follows (in thousands):

 

  

Three Months Ended

  

Nine Months Ended

 
  

June 30, 2026

  

June 30, 2025

  

June 30, 2026

  

June 30, 2025

 

Asia (including Russian Federation)

 $3,189  $1,484  $5,793  $23,111 

Canada

  485   1,094   2,536   1,987 

Europe

  873   2,119   2,638   4,633 

Mexico

  368   240   476   2,332 

United States

  8,906   18,333   42,303   45,861 

South America

  1,450   1,390   5,753   1,742 

Other

  533   183   1,633   423 
  $15,804  $24,843  $61,132  $80,089 

 

Revenue is attributable to countries based on the ultimate destination of the product sold, if known.  If the ultimate destination is not known, revenue is attributed to countries based on the geographic location of the initial shipment.

 

Long-lived asset balances are as follows (in thousands):

 

  

June 30, 2026

  

September 30, 2025

 

United States

 $55,158  $63,332 

Canada

  333   366 

Colombia

  421   392 

United Kingdom

  406   447 
  $56,318  $64,537