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Segments
 3 Months Ended
Mar. 31, 2025
Segment Reporting [Abstract]  
Segments

Note 13 - Segments

 

Effective January 2025, our operations team implemented some internal restructuring and consolidation throughout the company to better align business functions and improve efficiency, as well as promote stronger unity in our brand identity because of our many past acquisitions. With this reorganization, we also needed to reassess segment reporting, our new structure and what type of discrete information was reviewed by our middle managers and our Chief Operating Decision Maker (“CODM”). One aspect of our restructuring specifically addressed the activities and personnel, which were previously reported under our Professional Services Segment. All professional consulting services, which also includes data analysis and other reporting metrics, provide support to our primary activities of verification and certification. This segment now reports to the same management team under the Verification and Certification Segment. With our restructuring, we now only have one reportable segment. The factors considered in determining this aggregated reporting segment include the economic similarity of the businesses, the nature of services provided, production processes, types of customers and distribution methods.

 

The Company’s chief operating decision maker (the Company’s CEO) allocates resources and assesses the performance of its operating segment. Management makes decisions, measures performance, and manages the business utilizing internal reporting operating information. Performance of the operating segment is based on net sales, gross profit, selling, general and administrative expenses and most importantly, operating income.

 

 

The following table shows information for the reportable operating segment (amounts in thousands):

 

   2025   2024 
   Three months ended March 31, 
   2025   2024 
Assets:        
Goodwill  $2,946   $2,946 
All other assets, net   12,266    12,447 
Total assets  $15,212   $15,393 
           
Revenues:          
Verification and certification service revenue  $4,182   $4,434 
Product sales   702    733 
Professional services   389    415 
Total revenues  $5,273   $5,582 
Costs of revenues:          
Costs of verification and certification services   2,395    2,515 
Costs of products   428    434 
Costs of professional services   255    304 
Total costs of revenues   3,078    3,253 
Gross profit   2,195    2,329 
Depreciation & amortization   173    155 
Other operating expenses:          
Salaries and benefits   903    846 
Rent and lease expense   161    167 
Software and technology   207    206 
Legal and professional expenses   165    196 
Tradeshows and marketing   127    202 
Conferences and training   66    24 
Investor relations   37    41 
Other expenses   214    231 
Total Other operating expenses   1,880    1,913 
Operating income/(loss)  $142   $261 
Other items to reconcile operating income/(loss) to net income/(loss):          
Other income/(loss)   (73)   4 
Income tax benefit/(expense)   (38)   (87)
Net income/(loss)  $31   $178