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Segment Information
 6 Months Ended
Jun. 30, 2025
Segment Reporting [Abstract]  
Segment Information

Note 3. Segment Information

 

The Company operates as a single operating segment which is engaged in the development and marketing of technology and devices to control the flow of light (as described in Note 2). The Company develops and licenses our patented suspended particle device (“SPD-Smart”) light-control technology to other companies that manufacture and/or market the: (i) SPD-Smart chemical emulsion, (ii) light-control film made from the chemical emulsion, (iii) the light-control panels made by laminating the film, (iv) electronics to power end-products incorporating the film, or (v) lamination services for and the end-products themselves such as “smart” windows, skylights and sunroofs. The Company currently has over 40 licensees that, in the aggregate, are licensed to primarily serve five major SPD-Smart application areas (aerospace, architectural, automotive, marine and display products) in every country of the world. The Company derives revenue from licensees in North America, Europe and Asia. The Company’s Chief Operating Decision Maker (“CODM”) reviews revenue and consolidated net operating loss as a total and not by industry of licensees, and the royalty rates that we charge our licensees are consistent when measuring the Company’s profitability and allocating resources across geographical location and by industry. The Company does not have intra-entity sales or transfers. The Company’s long-lived assets consist of property and equipment and operating lease right-of-use assets (“ROU”), all of which are located in the United States. During the six month periods ended June 30, 2025 and 2024, 99% and 61%, respectively, of the Company’s revenue was generated from sources outside of the United States.

 

The CODM is the Company’s Chief Executive Officer and acting Chief Financial Officer. The CODM assesses performance for the single operating segment and decides how to allocate resources based on consolidated net operating loss that is also reported on the Company’s condensed consolidated statements of operations.

 

Consolidated net operating loss is used by the Company’s CODM to monitor budget versus actual results; conducting this monitoring on at least a quarterly basis as a part of the Company’s quarterly 10-Q and annual 10-K filing processes. Included in the review process is a detailed review and discussion related to the Company’s Management’s Discussion and Analysis. In addition, meetings of the Company’s Audit Committee are also held at least quarterly and those meetings include a review of consolidated operating results.

 

 

The following table illustrates the information about the Company’s single reportable segment, which the Company’s CODM regularly evaluates in addition to the information already presented on the Company’s condensed consolidated statements of operations and identifies expense items exceeding the Company’s significant expense thresholds described above:

   2025   2024   2025   2024 
   Six months ended June 30,   Three months ended June 30, 
   2025   2024   2025   2024 
                 
Revenue  $689,680   $802,972   $129,904   $489,594 
                     
Operating Expenses:                    
Employee compensation   599,072    515,686    312,560    268,776 
Professional fees   132,657    114,114    44,757    50,964 
Directors fees and expenses   227,107    121,306    107,107    1,065 
Marketing and investor relations   79,002    97,241    48,756    47,119 
Insurance**   91,544    98,383    45,355    46,009 
Occupancy costs   42,132    30,147    20,615    14,735 
Credit loss expense   124,253    -    124,253    - 
Patent costs   27,117    34,196    15,313    14,454 
Stock listing fees   35,000    32,750    17,500    16,375 
Legal fees   1,070    27,975    1,070    3,390 
Depreciation and amortization   5,723    7,422    2,864    3,718 
Other operating expenses*   47,721    31,065    35,772    10,293 
Operating expenses   1,412,398    1,110,285    775,922    476,898 
                     
Research and Development Expenses:                    
Employee compensation   90,643    80,050    43,280    33,344 
Insurance**   89,635    95,799    44,425    44,903 
Occupancy costs   127,796    90,446    63,252    44,197 
Depreciation and amortization   443    5,530    223    2,785 
Other research and development costs   23,446    6,746    17,906    3,601 
Research and development expenses   331,963    278,571    169,086    128,830 
                     
Operating Loss  $(1,054,681)  $(585,884)  $(815,104)  $(116,134)

 

* Other operating expenses and other research and development expenses consist principally of miscellaneous expenses, each of which is under the Company’s threshold to be separately presented as a significant expense.
   
** Insurance includes all coverage including property, liability, directors’ and officers’ and employees’ medical.