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Segment and Geographic Information
 12 Months Ended
Dec. 31, 2024
Segment Reporting [Abstract]  
Segment and Geographic Information

NOTE 17 – SEGMENT AND GEOGRAPHIC INFORMATION

The Company operates in two reportable segments: OSS and Bressner. OSS designs, manufactures, and markets specialized enterprise class high-performance compute, high speed switch fabrics, and storage hardware and software to target edge applications. Bressner operates as a system integrator with standard and custom all-in-one hardware systems and components for many kinds of industrial environments. The Company evaluates financial performance on a Company-wide basis.

Segment Information

The accounting policies of the segments are the same as those described in the summary of significant accounting policies of the Company. Intersegment sales are generally recorded at cost plus a specified fee or at a negotiated fixed price. Intersegment sales are eliminated in consolidation and segment results are presented net of eliminations.

The Company's chief operating decision maker is our Chief Executive Officer. The CODM evaluates performance for both reportable segments based on segment gross profit and segment operating profit. The CODM uses these measures to assess actual and forecasted segment performance and to make decisions regarding the allocation of capital and personnel.

Segment detail for the years ended December 31, 2024 and 2023, is as follows:

 

 

 

For the Twelve Months Ended December 31, 2024

 

 

For the Twelve Months Ended December 31, 2023

 

 

 

OSS

 

 

Bressner

 

 

Total

 

 

OSS

 

 

Bressner

 

 

Total

 

Revenues

 

$

24,558,809

 

 

$

30,135,550

 

 

$

54,694,358

 

 

$

28,809,888

 

 

$

32,086,910

 

 

$

60,896,797

 

Cost of revenues

 

 

(23,935,886

)

 

 

(23,040,166

)

 

 

(46,976,051

)

 

 

(18,544,902

)

 

 

(24,397,274

)

 

 

(42,942,175

)

Gross profit

 

 

622,923

 

 

 

7,095,384

 

 

 

7,718,307

 

 

 

10,264,986

 

 

 

7,689,636

 

 

 

17,954,622

 

Gross margin %

 

 

2.5

%

 

 

23.5

%

 

 

14.1

%

 

 

35.6

%

 

 

24.0

%

 

 

29.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Research & development

 

 

(3,466,077

)

 

 

(631,152

)

 

 

(4,097,229

)

 

 

(3,813,460

)

 

 

(517,564

)

 

 

(4,331,024

)

Other segment operating expenses

 

 

(12,820,332

)

 

 

(4,157,559

)

 

 

(16,977,892

)

 

 

(17,928,561

)

 

 

(3,618,190

)

 

 

(21,546,751

)

(Loss) income from operations

 

$

(15,663,486

)

 

$

2,306,672

 

 

$

(13,356,813

)

 

$

(11,477,034

)

 

$

3,553,882

 

 

$

(7,923,153

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Twelve Months Ended December 31, 2024

 

 

For the Twelve Months Ended December 31, 2023

 

 

 

OSS

 

 

Bressner

 

 

Total

 

 

OSS

 

 

Bressner

 

 

Total

 

Interest income

 

$

477,745

 

 

$

-

 

 

$

477,745

 

 

$

544,958

 

 

 

 

 

$

544,958

 

Interest expense

 

 

(4,027

)

 

 

(70,089

)

 

 

(74,116

)

 

 

1,612

 

 

 

(119,386

)

 

 

(117,774

)

Depreciation and amortization of intangibles

 

 

(927,282

)

 

 

(114,555

)

 

 

(1,041,837

)

 

 

(1,017,038

)

 

 

(60,478

)

 

 

(1,077,516

)

Other significant non-cash items:

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Inventory reserves

 

 

(7,088,114

)

 

 

(260,276

)

 

 

(7,348,390

)

 

 

(1,068,280

)

 

 

105,823

 

 

 

(962,458

)

Goodwill impairment

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(5,630,788

)

 

 

-

 

 

 

(5,630,788

)

Stock based compensation expense

 

 

(1,856,417

)

 

 

(131,709

)

 

 

(1,988,125

)

 

 

(2,207,344

)

 

 

(138,014

)

 

 

(2,345,358

)

Total assets

 

 

20,552,197

 

 

 

16,381,785

 

 

 

36,933,982

 

 

 

32,560,602

 

 

 

15,705,050

 

 

 

48,265,652

 

Capital expenditures

 

 

(228,258

)

 

 

(134,491

)

 

 

(362,748

)

 

 

(636,066

)

 

 

(185,687

)

 

 

(821,753

)

 

Revenue from customers with non-U.S. billing addresses represented approximately 58% and 65% of the Company’s revenue for the years ended December 31, 2024 and 2023, respectively.

As of December 31, 2024, substantially all the Company’s long-lived assets were located in the United States of America, with the exception of long-lived assets of $345,898 located in Germany.