v3.26.3
SEGMENT REPORTING
 9 Months Ended
Sep. 30, 2026
Segment Reporting [Abstract]  
SEGMENT REPORTING

NOTE 11— SEGMENT REPORTING

 

As of September 30, 2026, the Company operates in three reportable operating segments, each of which is performed through the Company’s OmniMetrix subsidiary:

 

  ● Power Generation (“PG”). OmniMetrix’s PG services provide wireless remote monitoring and control systems and Internet of Things (“IoT”) applications for commercial/industrial and residential power generation equipment. In 2025, the Company launched the Omni family of products—the OmniPro commercial monitor and the Omni residential monitor—built on a new proprietary common communications core called the OCOM, a platform designed to enhance connectivity, reliability and performance in remote monitoring systems. These products are replacing the Company’s legacy TrueGuard and AIRGuard product lines, offering enhanced flexibility, expandability, and improved connectivity with easier installation. Following the Gen-Tracker Acquisition in September 2026 (see Note 14), PG also includes the Gen-Tracker product line: the GTU Series, which monitors standby generators of virtually any make, model or age through the automatic transfer switch, and the MBX Series, which connects directly to the generator controller. OmniMetrix also offers the Smart Annunciator product for commercial customers who require a visual representation of generator status via a touchscreen display.
     
  ● Cathodic Protection (“CP”). OmniMetrix’s CP services provide remote monitoring and control products for cathodic protection systems on gas pipelines serving the gas utilities market and pipeline operators. The CP product lineup includes solutions to remotely monitor and control rectifiers, test stations and bonds. In 2025, the Company launched the RADex, an OCOM-based expansion of the Company’s RAD™ (Remote AC Mitigation Disconnect) that adds cathodic protection measurements while retaining the ability to remotely disconnect/connect AC mitigation tools on solid-state decouplers, reducing expense and increasing employee safety.

 

  ● Infrastructure Solutions (“IS”). OmniMetrix’s IS services provide smart infrastructure monitoring hardware, software and solutions for telecommunications, energy and data center infrastructure asset management in the North American market. Under a Technology Partnership Agreement effective January 1, 2026 with AIO Systems Ltd. (“AIO”), an Israel-based technology company, OmniMetrix has the exclusive right to market, distribute, integrate and sell, on a white-label basis, AIO’s IoT monitoring controllers, sensors, power management devices, security products, environmental monitoring equipment, and a cloud-based Management-of-Management (MOM) platform that provides centralized monitoring, alerting, ticketing and workflow orchestration for telecommunications towers, energy sites and data centers. Revenue in the IS segment is expected to be derived from hardware product sales, recurring monitoring service contracts and other bundled arrangements. The IS segment had no revenue for the nine months ended September 30, 2026 as operations were in the pre-revenue stage.

 

The Company’s reportable segments are strategic business units, offering different products and services, and are organized based on the end markets they serve.

 

The Company’s chief operating decision maker (“CODM”) is the Company’s Chief Executive Officer (CEO).

 

 

(b) Information about profit or loss and assets

 

The accounting policies of all the segments are those described in the summary of significant accounting policies. The Company evaluates performance by segment based on revenue (driven by the number of connections), gross profit and net income or loss before taxes.

 

The Company does not allocate assets, liabilities or equity to its segments. Only income statement activity is reported by segment, and segment results include depreciation expense without allocation of the related assets.

 

Segment expenses that are routinely provided to the CODM are COGS and R&D expense. R&D expense may be allocated to each segment based on the percentage of segment revenue to total revenue or based on estimated time on dedicated projects within the segment. SG&A expense and interest income is allocated to each segment based on the percentage of segment revenue to total revenue instead of being specifically identified to each segment since the Company’s resources have a high level of shared utilization between the segments. Further, the CODM does not review the assets by segment.

 

The following tables represent segment data for the nine- and three-month periods ended September 30, 2026 and 2025 (in thousands):

 

 

   PG   CP   IS   Total 
Nine months ended September 30, 2026:                    
Revenues from external customers  $6,892   $415   $—   $7,307 
COGS   1,261    124    —    1,385 
Segment gross profit   5,631    291    —    5,922 
R&D expense   643    99    —    742 
SG&A expense   3,134    260    116    3,510 
Segment operating income (loss)   1,854    (68)   (116)   1,670 
Interest income   89    6    —    95 
Interest expense – accretion of discount on deferred acquisition consideration   (8)   —    —    (8)
Segment income (loss) before income taxes  $1,935   $(62)  $(116)  $1,757 
                     
Nine months ended September 30, 2025:                    
Revenues from external customers  $8,507   $594    —   $9,101 
COGS   1,976    215    —    2,191 
Segment gross profit   6,531    379    —    6,910 
R&D expense   767    56    —    823 
SG&A expense   3,024    221    —    3,245 
Segment operating income   2,740    102    —    2,842 
Interest income, net   76    6    —    82 
Segment income before income taxes  $2,816   $108    —   $2,924 

 

 

   PG   CP   IS   Total 
Three months ended September 30, 2026:                    
Revenues from external customers  $2,442   $149   $—   $2,591 
COGS   457    47    —    504 
Segment gross profit   1,985    102    —    2,087 
R&D expense   211    37    —    248 
SG&A expense   1,164    86    36    1,286 
Segment operating income (loss)   610    (21)   (36)   553 
Interest income, net   30    2    —    32 
Interest expense – accretion of discount on deferred acquisition consideration   (8)   —    —    (8)
Segment income (loss) before income taxes  $632   $(19)  $(36)  $577 
                     
Three months ended September 30, 2025:                    
Revenues from external customers  $2,260   $218    —   $2,478 
COGS   451    82    —    533 
Segment gross profit   1,809    136    —    1,945 
R&D expense   243    24    —    267 
SG&A expense   999    73    —    1,072 
Segment operating income   567    39    —    606 
Interest income, net   30    3    —    33 
Segment income before income taxes  $597   $42    —   $639 

 

Reconciliation of Segment Income to Consolidated Net Income Before Income Taxes

 

   2026   2025   2026   2025 
  

Nine months ended

September 30,

  

Three months ended

September 30,

 
   2026   2025   2026   2025 
   (in thousands) 
Total net income before income taxes for reportable segments  $1,757   $2,924   $577   $639 
Unallocated cost of corporate headquarters   (1,234)   (1,129)   (363)   (446)
Consolidated net income before income taxes  $523   $1,795   $214   $193