v3.26.1
Note 11 - Segment Information and Foreign Operations
 6 Months Ended
Jun. 30, 2026
Notes to Financial Statements  
Segment Reporting [Text Block]

Note 11. Segment Information and Foreign Operations

 

Segment Information

 

We operate in one segment for the design, development, manufacture and distribution of high-performance compound and single element semiconductor substrates and sale of raw materials integral to these substrates. In accordance with ASC Topic 280, Segment Reporting, our chief operating decision‑maker (“CODM”) has been identified as the Chief Executive Officer, who reviews operating results to make decisions about allocating resources and assessing performance for the Company. Since we operate in one segment, all financial segment and product line information can be found in the consolidated financial statements. The CODM regularly evaluates consolidated net income (loss) and functional expenses, including cost of revenue, selling, general and administrative and research and development, to manage Company operations. No additional disaggregated expense categories are presented beyond those already disclosed in the primary financial statements.

 

Product Information

 

The following table represents revenue amounts (in thousands) by product type:

 

  

Three Months Ended

  

Six Months Ended

 
  

June 30,

  

June 30,

 
  

2026

  

2025

  

2026

  

2025

 

Product Type:

                

Substrates

 $37,563  $11,292  $56,844  $22,374 

Raw Materials and Other

  10,026   6,682   17,669   14,956 

Total

 $47,589  $17,974  $74,513  $37,330 

 

Geographical Information

 

The following table represents revenue amounts (in thousands) reported for products shipped to customers in the corresponding geographic region:

 

  

Three Months Ended

  

Six Months Ended

 
  

June 30,

  

June 30,

 
  

2026

  

2025

  

2026

  

2025

 

Geographical region:

                

China

 $30,841  $14,492  $47,406  $27,918 

Taiwan

  2,483   530   3,182   1,751 

Japan

  1,462   704   3,008   1,422 

Asia Pacific (excluding China, Taiwan and Japan)

  3,489   427   5,672   1,208 

Europe (primarily Germany)

  9,153   1,597   14,877   3,698 

North America (primarily the United States)

  161   224   368   1,333 

Total

 $47,589  $17,974  $74,513  $37,330 

 

Long-lived assets consist primarily of property, plant and equipment and operating lease right-of-use assets, and are attributed to the geographic location in which they are located. Long-lived assets, net of depreciation, by geographic region were as follows (in thousands):

 

  

As of

 
  

June 30,

  

December 31,

 
  

2026

  

2025

 

Long-lived assets by geographic region, net of depreciation:

        

North America

 $888  $1,040 

China

  175,802   162,802 
  $176,690  $163,842 

 

Significant Customers

 

No customer represented 10% of our revenue for the three months ended  June 30, 2026 and one customer represented 11% of our revenue for the three months ended  June 30, 2025. Our top five customers, although not the same five customers for each period, represented 30% and 32% of our revenue for the three months ended June 30, 2026 and 2025, respectively.

 

No customers represented 10% of our revenue for six months ended June 30, 2026 and one customer represented 10% of our revenue for six months ended June 30, 2025. Our top five customers, although not the same five customers for each period, represented 31% and 29% of our revenue for six months ended June 30, 2026 and 2025, respectively.

 

We perform ongoing credit evaluations of our customers’ financial condition, and limit the amount of credit extended when deemed necessary, but generally do not require collateral. No customer accounted for more than 10% of our accounts receivable balance as of June 30, 2026 and one customer accounted for more than 10% of our accounts receivable balance  December 31, 2025.