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SEGMENTS AND DISAGGREGATION OF REVENUE
 6 Months Ended
Jun. 28, 2025
Segment Reporting [Abstract]  
SEGMENTS AND DISAGGREGATION OF REVENUE

12. SEGMENTS AND DISAGGREGATION OF REVENUE

 

Operating segments are defined as components of an entity for which separate financial information is available and that is regularly reviewed by the Chief Operating Decision Maker (“CODM”) in deciding how to allocate resources to an individual segment and in assessing performance. The Company’s CODM is its President and Chief Executive Officer. The Company has determined that it operates in one operating segment and one reportable segment, as the CODM reviews financial information presented on a consolidated basis for purposes of making operating decisions, allocating resources, and evaluating financial performance.

 

The CODM assesses performance and decides how to allocate resources and make operating decisions based on revenues, loss from operations, and net loss that are reported on the Consolidated Statements of Operations. These metrics are also used to monitor budget versus actual results. The measure of segment assets is reported on the Consolidated Balance Sheets as total assets. Revenues, expenses, and assets requiring disclosure in accordance with ASC 280, Segment Reporting, are also included in the accompanying Condensed Consolidated Financial Statements. See the Condensed Consolidated Statements of Operations for the three and six months ended June 28, 2025 and June 29, 2024 and the Consolidated Balance Sheets as of June 28, 2025 and December 28, 2024, for details.

 

Total long-lived assets by country at June 28, 2025 and December 28, 2024 were:

 

Total Long-lived Assets (in thousands)  June 28, 2025   December 28, 2024 
United States  $4,463   $4,153 
United Kingdom   434    82 
Total  $4,897   $4,235 

 

The Company disaggregates its revenue from contracts with customers by geographic location and by display application, as it believes this best depicts how the nature, amount, timing and uncertainty of its revenue and cash flows are affected by economic factors.

 

During the three and six months ended June 28, 2025 and June 29, 2024, the Company derived its sales from the following geographies:

 

   Three Months
Ended		   Three Months
Ended		   Six Months
Ended		   Six Months
Ended		 
   June 28, 2025   June 29, 2024   June 28, 2025   June 29, 2024 
(In thousands, except percentages)  Revenue   % of Total   Revenue   % of Total   Revenue   % of Total   Revenue   % of Total 
United States  $8,184    97%  $11,556    93%  $18,236    96%  $20,740    92%
Other Americas   23    —    —    —    34    —    5    — 
Total Americas   8,207    97    11,556    93    18,270    96    20,745    92 
Asia - Pacific   118    1    578    5    376    2    1,249    6 
Europe   130    2    202    2    347    2    375    2 
Total Revenues  $8,455    100%  $12,336    100%  $18,993    100%  $22,369    100%

 

During the three and six months ended June 28, 2025 and June 29, 2024, the Company derived its sales from the following display applications:

 

   Three Months Ended   Three Months Ended   Six Months Ended   Six Months Ended 
(In thousands)  June 28, 2025   June 29, 2024   June 28, 2025   June 29, 2024 
Defense  $6,222   $10,439   $14,683   $18,672 
Industrial   1,031    615    1,423    1,383 
Medical   213    —    572    — 
Consumer and other   32    —    50    25 
R&D   908    1,170    2,145    2,070 
License and royalties   49    112    120    219 
Total Revenues  $8,455   $12,336   $18,993   $22,369 

 

The issues associated with the global shortage of semiconductor circuit chips and other raw materials decreased in 2024 as compared to 2023 and 2022. However, the Company has identified several semiconductor components which continue to have long lead delivery times. The Company continues to search for and procure all necessary components from its current vendors and new alternative vendors. In certain situations, the Company can obtain the components but at a significantly increased cost. The inability to procure a single component will prevent the completion of the Company’s product and the ability to sell the product. The Company’s products go through extensive qualification processes and therefore its customers may not accept a replacement component. The Company is unable to determine if it will be able to obtain all necessary components for fiscal 2025. If the Company is unable to obtain all necessary components, it may be required to stop production, which would negatively affect its cash flow and results of operations. In addition, the Company depends on a Taiwanese foundry for the manufacture of integrated circuits for its AMLCD display products and on Chinese, Korean, and European foundries for its OLED display products. If there was a disruption of supply from these foundries it would take a significant period of time to identify, and qualify, if possible, a new source.