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Note 21 - Segment and Geographic Information
 12 Months Ended
Sep. 30, 2025
Notes to Financial Statements  
Segment Reporting Disclosure [Text Block]

21. Segment and Geographic Information

 

Effective October 1, 2024, the Company changed the composition of its three operating business segments and changed its methodology for allocating manufacturing costs including overhead and other costs of revenue to the segments. 

 

The Company's business segments are now comprised of: Smart Water, Energy Solutions and Intelligent Industrial. The Smart Water segment emphasizes the Company’s targeted approach in the water management industry. This business segment contains the Hydroconn® smart water connectivity offerings and the Company's Aquana products. The Energy Solutions segment encompasses the Company’s traditional business in oil and gas land and marine exploration products, reservoir monitoring solutions, and will additionally incorporate emerging energy solutions and microseismic monitoring. This segment will include energy-related business from Quantum’s SADAR® products and associated analytics.  The Intelligent Industrial segment includes seismic sensor products used for vibration monitoring geotechnical applications such as mine safety applications and earthquake detection, seismic products targeted at the border and perimeter security markets, imaging products, as well as providing contract manufacturing services. The change in methodology for allocating manufacturing costs affected each business segment's operating income (loss) but had no effect on consolidated operating income (loss).  

 

The Company defines its segments as those operations our chief operating decision maker (“CODM”) regularly reviews to analyze performance and allocate resources. The Company’s CODM is the Chief Executive Officer. The CODM regularly reviews revenue, gross profit, operating expenses and operating income (loss) by segment as the primary measures of segment performance. The CODM reviews revenue as a primary indicator of operational performance, assessing how much revenue is brought in from core business activities, which reflects demand and execution of each segment’s strategy. Gross profit is reviewed by the CODM as a diagnostic metric, particularly useful in evaluating margin trends. Operating income is the key profitability metric used to assess performance across segments and make decisions related to resource allocation, including capital expenditures, headcount, and other investment initiatives. Each of these metrics is considered in budgeting, forecasting, and operational planning decisions.

 

For financial reporting purposes, we are organized into these reportable segments and “Corporate”, which includes the remainder of our businesses.  The following table summarizes the Company’s segment information (in thousands).  Segment information for the fiscal year ended September 30, 2024 has been recast for comparability.

 

  

YEAR ENDED SEPTEMBER 30,

 
  

2025

  

2024

 

Revenue:

        

Smart Water

 $35,816  $32,434 

Energy Solutions

  50,706   77,977 

Intelligent Industrial

  23,960   24,891 

Corporate

  321   296 
  110,803  135,598 
       

Cost of revenue:

        

Smart Water

  21,106   16,653 

Energy Solutions

  36,580   46,922 

Intelligent Industrial

  20,082   19,335 

Corporate

  138   115 
  77,906  83,025 
       

Gross profit:

        

Smart Water

  14,710   15,781 

Energy Solutions

  14,126   31,055 

Intelligent Industrial

  3,878   5,556 

Corporate

  183   181 
  32,897  52,573 
       

Operating expenses:

        

Smart Water

  9,047   6,566 

Energy Solutions

  13,738   12,485 

Intelligent Industrial

  8,207   12,247 

Corporate

  17,805   14,158 
  48,797  45,456 
       

Gain on disposal of property:

        

Corporate

  4,616   — 
       

Income (loss) from operations:

        

Smart Water

  5,663   9,215 

Energy Solutions

  388   18,570 

Intelligent Industrial

  (4,329)  (6,691)

Corporate

  (13,006)  (13,977)
  (11,284) 7,117 
       

Other segment disclosures:

        
       

Interest income:

        

Smart Water

  —   315 

Energy Solutions

  1,694   — 

Intelligent Industrial

  —   — 

Corporate

  843   1,243 
  2,537  1,558 

Interest expense:

        

Smart Water

  —   17 

Energy Solutions

  23   — 

Corporate

  146   170 
  169  187 
       

Depreciation and amortization expenses:

        

Smart Water

  1,145   482 

Energy Solutions

  7,333   13,243 

Intelligent Industrial

  1,049   653 

Corporate

  619   388 
  10,146  14,766 

Impairment, inventory obsolescence and stock-based compensation expenses:

        

Smart Water

  31   189 

Energy Solutions

  2,618   993 

Intelligent Industrial

  907   2,830 

Corporate

  1,020   642 
  4,576  4,654 

 

 

The Company’s manufacturing operations for its business segments are combined. Therefore, the Company does not segregate and report separate balance sheet accounts for each of its segments and, therefore, no such segment balance sheet information is presented in the table above.

 

“Corporate” expense from operations primarily consists of the Company’s Houston headquarters general and administrative expenses.

 

The Company generates revenue from product sales, product rentals and services from its subsidiaries located in the United States, Canada, Colombia, the Russian Federation (sold in August 2024) and the United Kingdom. Revenue generated by the Company’s subsidiaries is as follows (in thousands):

 

  

YEAR ENDED SEPTEMBER 30,

 
  

2025

  

2024

 

United States

 $106,603  $127,488 

Canada

  1,552   1,777 

Russian Federation

  —   3,487 

United Kingdom

  2,648   2,846 
  $110,803  $135,598 

 

A summary of revenue by geographic area is as follows (in thousands):

 

  

YEAR ENDED SEPTEMBER 30,

 
  

2025

  

2024

 

Asia (including Russian Federation)

 $26,552  $51,103 

Canada

  2,931   2,015 

Europe

  5,067   13,817 

Mexico

  2,746   1,959 

South America

  3,146   2,798 

United States

  69,291   63,061 

Other

  1,070   845 
  $110,803  $135,598 

 

Revenue is attributed to countries based on the ultimate destination of the product sold, if known. If the ultimate destination is not known, revenue is attributed to countries based on the geographic location of the initial shipment.

 

Long-lived asset balances are as follows (in thousands):

 

  

AS OF SEPTEMBER 30,

 
  

2025

  

2024

 

United States

 $63,332  $61,487 

Canada

  366   414 

Colombia

  392   399 

United Kingdom

  447   528 
  $64,537  $62,828