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Note 11 - Segment Information and Foreign Operations
 9 Months Ended
Sep. 30, 2025
Notes to Financial Statements  
Segment Reporting Disclosure [Text Block]

Note 11. Segment Information and Foreign Operations

 

Segment Information

 

We operate in one segment for the design, development, manufacture and distribution of high-performance compound and single element semiconductor substrates and sale of raw materials integral to these substrates. In accordance with ASC Topic 280, Segment Reporting, our chief operating decision‑maker (“CODM”) has been identified as the Chief Executive Officer, who reviews operating results to make decisions about allocating resources and assessing performance for the Company. Since we operate in one segment, all financial segment and product line information can be found in the consolidated financial statements. The CODM regularly evaluates consolidated net income (loss) and functional expenses, including cost of revenue, selling, general and administrative and research and development, to manage Company operations. No additional disaggregated expense categories are presented beyond those already disclosed in the primary financial statements.

 

Product Information

 

The following table represents revenue amounts (in thousands) by product type:

 

  

Three Months Ended

  

Nine Months Ended

 
  

September 30,

  

September 30,

 
  

2025

  

2024

  

2025

  

2024

 

Product Type:

                

Substrates

 $21,259  $15,007  $43,633  $51,655 

Raw Materials and Other

  6,696   8,638   21,652   22,601 

Total

 $27,955  $23,645  $65,285  $74,256 

 

Geographical Information

 

The following table represents revenue amounts (in thousands) reported for products shipped to customers in the corresponding geographic region:

 

  

Three Months Ended

  

Nine Months Ended

 
  

September 30,

  

September 30,

 
  

2025

  

2024

  

2025

  

2024

 

Geographical region:

                

China

 $13,145  $13,807  $41,063  $42,271 

Taiwan

  9,045   2,140   10,796   10,142 

Japan

  1,854   1,623   3,276   3,409 

Asia Pacific (excluding China, Taiwan and Japan)

  347   797   1,555   2,307 

Europe (primarily Germany)

  3,424   2,720   7,122   11,134 

North America (primarily the United States)

  140   2,558   1,473   4,993 

Total

 $27,955  $23,645  $65,285  $74,256 

 

Long-lived assets consist primarily of property, plant and equipment and operating lease right-of-use assets, and are attributed to the geographic location in which they are located. Long-lived assets, net of depreciation, by geographic region were as follows (in thousands):

 

  

As of

 
  

September 30,

  

December 31,

 
  

2025

  

2024

 

Long-lived assets by geographic region, net of depreciation:

        

North America

 $1,115  $1,353 

China

  160,271   160,847 
  $161,386  $162,200 

 

Significant Customers

 

Two customers represented 19% and 13%, respectively of our revenue for the three months ended September 30, 2025 and no customer represented 10% of our revenue for the three months ended September 30, 2024. Our top five customers, although not the same five customers for each period, represented 45% and 29% of our revenue for the three months ended September 30, 2025 and 2024, respectively.

 

No customer represented 10% of our revenue for the nine months ended September 30, 2025 and 2024. Our top five customers, although not the same five customers for each period, represented 32% and 30% of our revenue for the nine months ended September 30, 2025 and 2024, respectively.

 

We perform ongoing credit evaluations of our customers’ financial condition, and limit the amount of credit extended when deemed necessary, but generally do not require collateral. Three customers accounted for more than 10% of our accounts receivable balance as of September 30, 2025 and one customer accounted for more than 10% of our accounts receivable balance as of   December 31, 2024.