Quarterly report [Sections 13 or 15(d)]

SEGMENT REPORTING

v3.25.3
SEGMENT REPORTING
 9 Months Ended
Sep. 30, 2025
Segment Reporting [Abstract]  
SEGMENT REPORTING

NOTE 12. SEGMENT REPORTING

 

We define our segments as those operations whose results are regularly reviewed by our CODM to analyze performance and allocate resources. Therefore, segment information is prepared on the same basis that management reviews financial information for operational decision-making purposes. The CFO acts as the CODM.

 

We determined we had one operating segment as of September 30, 2025. This operating segment aligns with how we manage our business as of the fourth quarter of 2024. The accounting policies of the reportable segments are the same as those described in “Note 2 - Summary of Significant Accounting Policies.”

 

 

Our CODM assesses the performance of our one operating segment based on the operating segments’ net sales and gross profit. The following table sets forth information by reportable segment for the three months ended September 30, 2025 and 2024.

 

(in thousands)   2025     2024  
    Three Months Ended September 30,  
(in thousands)   2025     2024  
Net sales   $ 737     $ 4,038  
Cost of sales     5,840       1,011  
Gross profit (loss)   $ (5,103 )   $ 3,027  

 

(in thousands)   2025     2024  
    Nine Months Ended September 30,  
(in thousands)   2025     2024  
Net sales   $ 2,994     $ 11,616  
Cost of sales     7,374       6,066  
Gross profit (loss)   $ (4,380 )   $ 5,550  

 

The following table sets forth specific asset categories which are reviewed by our CODM in the evaluation of operating segments:

 

(in thousands)   June 30, 2025     December 31, 2024  
    As of  
(in thousands)   September 30, 2025     December 31, 2024  
Accounts receivable, net   $ 4,138     $ 4,262  
Inventories   $ 6,250     $ 14,215  
Vendor deposits   $ 64     $ 3,091  

 

The following table sets forth net sales disaggregated by geography:

 

(in thousands)   2025     2024  
    Three Months Ended September 30,  
(in thousands)   2025     2024  
United States   $ 733     $ 4,027  
Canada     4       —  
Europe     —       11  
Total net sales   $ 737     $ 4,038  

 

(in thousands)   2025     2024  
    Nine Months Ended September 30,  
(in thousands)   2025     2024  
United States   $ 2,990     $ 9,252  
Canada     4       157  
Europe     —       2,207  
Total net sales   $ 2,994     $ 11,616  

 

The following table sets forth our long-lived assets by geographic area, which consist of property and equipment, net, and operating lease right-of-use assets:

 

             
    As of  
(in thousands)   September 30, 2025     December 31, 2024  
United States   $ 1,401     $ 2,459  
Canada     —       4  
Europe     —       —  
Total long-lived assets   $ 1,401     $ 2,463