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Segment Information
 9 Months Ended
Sep. 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 nine-month periods ended September 30, 2025 and 2024, 78% and 59%, 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 
   Nine months ended September 30,   Three months ended September 30, 
   2025   2024   2025   2024 
                 
Revenue  $1,049,125   $1,157,380   $359,444   $354,408 
                     
Operating Expenses:                    
Employee compensation   834,855    746,582    235,785    230,896 
Professional fees   185,039    151,614    52,382    37,500 
Directors fees and expenses   227,254    121,306    148    - 
Marketing and investor relations   187,467    125,187    109,201    27,946 
Insurance**   131,079    144,534    39,535    46,151 
Occupancy costs   63,229    43,457    21,097    13,306 
Credit loss expense   124,253    25,001    -    25,001 
Patent costs   58,944    54,535    31,826    20,339 
Stock listing fees   52,500    49,125    17,500    16,375 
Legal fees   1,070    33,062    -    5,087 
Depreciation and amortization   8,603    11,211    2,879    3,789 
Other operating expenses*   59,748    59,538    11,289    28,476 
Operating expenses   1,934,041    1,565,152    521,642    454,866 
                     
Research and Development Expenses                    
Employee compensation   125,743    115,561    35,100    35,511 
Insurance**   128,302    140,973    38,668    45,174 
Occupancy costs   192,374    133,883    64,578    43,437 
Depreciation and amortization   676    8,371    233    2,841 
Other research and development costs   26,614    11,029    3,167    4,283 
Research and development expenses   473,709    409,817    141,746    131,246 
                     
Operating Loss  $(1,358,625)  $(817,589)  $(303,944)  $(231,704)

 

* 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.