| Segment Information |
18. SEGMENT INFORMATION The Company is engaged in the design, development and commercialization of critical communications hardware and software solutions designed to alert, inform, and protect. The Company operates in two business segments: Hardware and Software and its principal markets are North and South America, Europe, the Middle East and Asia. Our Chief Operating Decision Maker (“CODM”) is our Chief Executive Officer, Richard Danforth. As reviewed by the CODM, the Company evaluates the performance of each segment based on sales, gross margin, operating income (loss), certain expenses including sales and marketing expense, research and development expense, depreciation and amortization expense, and share-based compensation expense to allocate resources in the annual planning process. Cash and cash equivalents, marketable securities, accounts receivable, inventory, property and equipment, deferred tax assets, goodwill and intangible assets are primary assets identified by segment. The operating segments are not evaluated using asset information. The accounting policies for segment reporting are the same for the Company as a whole and transactions between the two operating segments are not material. The following table presents the Company’s segment disclosures for three and nine months ended June 30, 2026:
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Three Months Ended |
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Nine Months Ended |
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|
June 30, 2026 |
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|
June 30, 2026 |
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|
Hardware |
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|
Software |
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|
Hardware |
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|
Software |
|
Revenues |
|
$ |
4,627 |
|
|
$ |
2,668 |
|
|
$ |
32,541 |
|
|
$ |
7,324 |
|
Cost of revenues |
|
|
2,080 |
|
|
|
1,050 |
|
|
|
15,036 |
|
|
|
2,662 |
|
Gross profit |
|
|
2,547 |
|
|
|
1,618 |
|
|
|
17,505 |
|
|
|
4,662 |
|
Gross margin |
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|
55 |
% |
|
|
61 |
% |
|
|
54 |
% |
|
|
64 |
% |
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|
|
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|
Operating expenses: |
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Selling, general and administrative |
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|
3,406 |
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|
|
2,721 |
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|
|
10,909 |
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|
|
8,064 |
|
Research and development |
|
|
988 |
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|
|
1,086 |
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|
|
3,030 |
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|
|
3,270 |
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Total operating expenses |
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|
4,394 |
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|
3,807 |
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|
|
13,939 |
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|
|
11,334 |
|
(Loss) income from operations |
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|
(1,847 |
) |
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|
(2,189 |
) |
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|
3,566 |
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|
|
(6,672 |
) |
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|
|
|
|
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Other expenses: |
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Depreciation and amortization expense |
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|
97 |
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|
567 |
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|
282 |
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|
1,753 |
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Stock-based compensation |
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|
201 |
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|
68 |
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|
1,023 |
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|
216 |
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(Loss) income before income taxes |
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(2,478 |
) |
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|
(2,140 |
) |
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|
2,124 |
|
|
|
(6,566 |
) |
Income tax expense |
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|
59 |
|
|
|
— |
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|
329 |
|
|
|
— |
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Net (loss) income |
|
$ |
(2,537 |
) |
|
$ |
(2,140 |
) |
|
$ |
1,795 |
|
|
$ |
(6,566 |
) |
The following table presents the Company’s segment disclosures for three and nine months ended June 30, 2025:
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Three Months Ended |
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Nine Months Ended |
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June 30, 2025 |
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|
June 30, 2025 |
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Hardware |
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|
Software |
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Hardware |
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|
Software |
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Revenues |
|
$ |
7,656 |
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|
$ |
2,201 |
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|
$ |
16,966 |
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|
$ |
6,763 |
|
Cost of revenues |
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|
6,294 |
|
|
|
966 |
|
|
|
12,615 |
|
|
|
2,729 |
|
Gross profit |
|
|
1,362 |
|
|
|
1,235 |
|
|
|
4,351 |
|
|
|
4,034 |
|
Gross margin |
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|
18 |
% |
|
|
56 |
% |
|
|
26 |
% |
|
|
60 |
% |
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Operating expenses: |
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Selling, general and administrative |
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|
3,178 |
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|
3,244 |
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|
10,825 |
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|
9,079 |
|
Research and development |
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|
773 |
|
|
|
1,327 |
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|
|
2,478 |
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|
4,124 |
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Total operating expenses |
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|
3,951 |
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|
4,571 |
|
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|
13,303 |
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|
13,203 |
|
Loss from operations |
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(2,589 |
) |
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(3,336 |
) |
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|
(8,952 |
) |
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(9,169 |
) |
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Other expenses: |
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Depreciation and amortization expense |
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|
86 |
|
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|
599 |
|
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|
271 |
|
|
|
1,843 |
|
Share-based compensation |
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|
355 |
|
|
|
104 |
|
|
|
978 |
|
|
|
286 |
|
|
|
|
|
|
|
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|
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Loss before income taxes |
|
|
(3,159 |
) |
|
|
(3,320 |
) |
|
|
(7,499 |
) |
|
|
(9,126 |
) |
Income tax expense (benefit) |
|
|
10 |
|
|
|
(2 |
) |
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|
81 |
|
|
|
(2 |
) |
Net loss |
|
$ |
(3,169 |
) |
|
$ |
(3,318 |
) |
|
$ |
(7,580 |
) |
|
$ |
(9,124 |
) |
The following table presents the Company’s segment assets as of June 30, 2026 and September 30, 2025:
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June 30, |
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September 30, |
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|
2026 |
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|
2025 |
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Long-lived assets |
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Hardware |
|
$ |
805 |
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$ |
1,046 |
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Software |
|
|
4,472 |
|
|
|
6,226 |
|
|
|
$ |
5,277 |
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|
$ |
7,272 |
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Total assets |
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|
|
|
|
Hardware |
|
$ |
39,008 |
|
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$ |
40,908 |
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Software |
|
|
19,244 |
|
|
|
22,961 |
|
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|
$ |
58,252 |
|
|
$ |
63,869 |
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