v3.26.3
Segment Reporting
 6 Months Ended 12 Months Ended
Jun. 30, 2026
Dec. 31, 2025
Segment Reporting [Abstract]    
Segment Reporting

Note 13. Segment Reporting

 

The Company uses “the management approach” in determining reportable operating segments. Operating segments are defined as components of an entity where discrete financial information is evaluated regularly by the chief operating decision maker (“CODM”). The management approach considers the internal organization and reporting used by the Company’s CODM for making operating decisions and assessing performance as the source for determining the Company’s reportable segments. The Company’s CODM is the chief executive officer of the Company, who reviews operating results to make decisions about operating decisions, allocating resources and assessing performance for the entire Company. The CODM reviews and utilizes consolidated financial information, including revenue, gross profit, operating income (loss) and net income (loss) as reported on the condensed consolidated statements of comprehensive loss, to assess performance and allocate resources to support strategic priorities. Consolidated net income (loss) is our segment's primary measure of profit or loss. The measure of segment assets is reported on the consolidated balance sheets as total consolidated assets. The single segment constitutes all the consolidated entities, and the accompanying consolidated financial statements and the notes to the accompanying consolidated financial statements are representative of such amounts. For the three and six months ended June 30, 2026 and 2025, the Company operates in one operating segment.

 

The table below provides information about the Company’s revenue, significant segment expenses and other segment expenses for the following periods.

        
  

Three Months ended

June 30,

 
   2026   2025 
Revenues        
   Licenses, royalties and fees  $66,000   $140,100 
   Product and other sales   895,012    219,900 
Total revenues   961,012    360,000 
Cost of revenues          
   Licenses, royalties and fees   47,000    39,100 
   Product and other sales   556,631    129,400 
Total cost of revenues   603,631    168,500 
Gross profit   357,381    191,500 
Less Segment expenses          
   Research and development   48,300    43,200 
   Sales and marketing   89,092    57,300 
   Professional and consulting expenses   417,300    118,300 
   Compensation and related taxes - general and administrative   236,695    65,300 
   Other general and administrative   133,726    79,900 
Total operating expenses   925,113    364,000 
Net loss from operations   (567,732)   (172,500)
Other income (expenses)          
   Interest income   102,005    120,000 
   Interest expense and bank charges   (6,200)   (6,100)
Total other income   95,805    113,900 
Segment Net loss  $(471,927)  $(58,600)

 

         
  

Six Months ended

June 30,

 
   2026   2025 
Revenues        
   Licenses, royalties and fees  $166,700   $330,400 
   Product and other sales   1,184,012    508,600 
Total revenues   1,350,712    839,000 
Cost of revenues          
   Licenses, royalties and fees   93,400    82,600 
   Product and other sales   709,331    291,200 
Total cost of revenues   802,731    373,800 
Gross profit   547,981    465,200 
Less Segment expenses          
   Research and development   104,100    88,200 
   Sales and marketing   163,592    148,300 
   Professional and consulting expenses   485,300    222,600 
   Compensation and related taxes - general and administrative   331,095    136,300 
   Other general and administrative   193,126    128,100 
Total operating expenses   1,277,213    723,500 
Net loss from operations   (729,232)   (258,300)
Other income (expenses)          
   Interest income   207,205    237,200 
   Interest expense and bank charges   (12,200)   (12,000)
Total other income   195,005    225,200 
Segment Net loss  $(534,227)  $(33,100)

  

           
    June 30, 2026    December 31, 2025 
Segment Assets  $16,005,854   $14,037,600 

 

Significant Segment Expenses

 

The Company considers the following as significant expenses in evaluating its segment performance:

 

  · Research and Development: includes costs related to personnel, laboratory materials and supplies and product development and testing for ink technologies.

 

  · General and Administrative: includes personnel costs, professional fees, and other overhead expenses.

 

  · Sales and Marketing: includes personnel costs and other sales related expenses.

 

  · Cost of Revenues: represents labor costs, material costs and manufacturing overhead costs associated with the production of materials transferred to the customer from the Company’s facility.

 

Since the Company has only one reportable segment, no additional segment disclosures are required beyond entity-wide disclosures presented below.

 

Entity-Wide Disclosures

 

·Geographic Revenue Information: For the three months ended June 30, 2026, approximately 70% of the Company’s net sales were generated in North America and 30% internationally. For the six months ended June 30, 2026, approximately 56% of the Company’s net sales were generated in North America and 44% internationally. For both the three and six months ended June 30, 2025, 38% of the Company’s net sales were generated in North America and 62% internationally. Refer to Note 11.

 

  · Major Customers: The Company had one customer that accounted for 21% and 35% of revenue for the three and six months ended June 30, 2026, respectively, and two customers that accounted for 67% of net accounts receivable as of June 30, 2026. In addition, the Company had two and three customers that accounted for 82% and 83% of revenue for the three and six months ended June 30, 2025, respectively; and one customer that accounted for 82% of net accounts receivable as of December 31, 2025. Refer to Note 11.

 

13. Segment Reporting

 

The Company operates as a single reportable segment, as the Chief Operating Decision Maker (“CODM”), the Chief Executive Officer (“CEO”), evaluates the business on a consolidated basis and does not receive discrete financial information for multiple business units.

 

Measure of Segment Profit or Loss

 

The CODM assesses the Company’s financial performance based on operating loss, which aligns with the amount reported in the statement of comprehensive loss. The following table presents a reconciliation of segment operating loss to net loss:

    
   Years ended December 31 
   2025   2024 
Revenues        
Licenses, royalties and fees  $605,100   $511,500 
Product and other sales   888,700    1,606,300 
Total revenues   1,493,800    2,117,800 
Cost of revenues          
Licenses, royalties and fees   154,900    218,800 
Product and other sales   525,500    798,700 
Total cost of revenues   680,400    1,017,500 
Gross profit   813,400    1,100,300 
Operating expenses          
Research and development   179,900    178,200 
Sales and marketing   282,600    322,400 
General and administrative   952,300    3,900,000 
Total operating expenses   1,414,800    4,400,600 
Net loss from operations   (601,400)   (3,300,300)
Other income (expenses)          
      Other income   —    84,000 
Interest income   470,600    560,700 
Interest expense and bank charges   (24,100)   (23,300)
Total other income   446,500    621,400 
Net loss before income taxes   (154,900)   (2,678,900)
Income taxes (benefit)   —    — 
Net loss  $(154,900)  $(2,678,900)

 

Significant Segment Expenses

 

The Company considers the following as significant expenses in evaluating its segment performance:

 

  · Research and Development: includes costs related to personnel, laboratory materials and supplies and product development and testing for ink technologies.

 

  · General and Administrative: includes personnel costs, professional fees, and other overhead expenses.

 

  · Sales and Marketing: includes personnel costs and other sales related expenses.

 

  ·

Cost of Revenues: includes labor costs, material costs and manufacturing overhead costs associated with the production of materials transferred to the customer from the Company’s facility.

 

Since the Company has only one reportable segment, no additional segment disclosures are required beyond entity-wide disclosures presented below.

Entity-Wide Disclosures

 

  · Geographic Revenue Information: For the year ended December 31, 2025 40% of the Company’s net sales were generated in North America and 60% internationally. For the year ended December 31, 2024, 23% of the Company’s net sales were generated in North America and 77% were generated internationally. Refer to Note 11.

 

  · Major Customers: The Company has two customers that accounted for 75% of revenue and 82% of net accounts receivable for the year ended December 31, 2025 and 88% of revenue and 93% of net accounts receivable for the year ended December 31, 2024. Refer to Note 11.