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

Note 12 - Segments

 

Effective January 2025, our operations team implemented some internal restructuring and consolidation throughout the company to better align business functions and improve efficiency, as well as promote stronger unity in our brand identity because of our many past acquisitions. With this reorganization, we also needed to reassess segment reporting, our new structure and what type of discrete information was reviewed by our middle managers and our Chief Operating Decision Maker (“CODM”). One aspect of our restructuring specifically addressed the activities and personnel, which were previously reported under our Professional Services Segment. All professional consulting services, which also includes data analysis and other reporting metrics, provide support to our primary activities of verification and certification. This segment now reports to the same management team under the Verification and Certification Segment. With our restructuring, we now only have one reportable segment. The factors considered in determining this aggregated reporting segment include the economic similarity of the businesses, the nature of services provided, production processes, types of customers and distribution methods.

 

The Company’s chief operating decision maker (the Company’s CEO) allocates resources and assesses the performance of its operating segment. Management makes decisions, measures performance, and manages the business utilizing internal reporting operating information. Performance of the operating segment is based on net sales, gross profit, selling, general and administrative expenses and most importantly, operating income.

 

 

The following table shows information for the reportable operating segment (amounts in thousands):

 

   2026   2025   2026   2025 
   Three months ended September 30,   Nine months ended September 30, 
   2026   2025   2026   2025 
Assets:                    
Goodwill  $2,946   $2,946   $2,946   $2,946 
All other assets, net   11,425    13,908    11,425    13,908 
Total assets  $14,371   $16,854   $14,371   $16,854 
                     
Revenues:                    
Verification and certification service revenue  $5,897   $5,556   $15,710   $15,070 
Product sales   1,211    1,202    2,861    2,868 
Professional services   218    257    731    912 
Total revenues  $7,326   $7,015   $19,302   $18,850 
Costs of revenues:                    
Costs of verification and certification services   3,400    3,348    9,321    9,025 
Costs of products   681    781    1,682    1,826 
Costs of professional services   159    200    487    658 
Total costs of revenues   4,240    4,329    11,490    11,509 
Gross profit   3,086    2,686    7,812    7,341 
Depreciation & amortization   179    149    512    481 
Other operating expenses:                    
Salaries and benefits   990    942    2,726    2,774 
Rent and lease expense   138    152    413    480 
Software and technology   208    226    648    634 
Legal and professional expenses   257    125    570    390 
Tradeshows and marketing   61    169    178    401 
Conferences and training   12    15    107    111 
Investor relations   33    27    111    98 
Other expenses   242    306    618    706 
Total Other operating expenses   1,941    1,962    5,371    5,594 
Operating income/(loss)  $966   $575   $1,929   $1,266 
Other items to reconcile operating income/(loss) to net income/(loss):                    
Other income/(loss)   189    1,051    17    1,201 
Income tax benefit/(expense)   (330)   (480)   (616)   (728)
Net income/(loss)  $825   $1,146   $1,330   $1,739