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

NOTE 10: SEGMENT REPORTING

 

The Company has determined that it has three reportable segments, organized primarily based on product offerings, as follows:

 

  ● CVD Equipment – manufactures chemical vapor deposition, physical vapor transport and thermal process equipment.

 

  ● SDC – manufactures ultra-high purity gas and chemical delivery control systems.

 

  ● MesoScribe – provided electronic printing services and products (heaters, antennas, and sensors). The operations of MesoScribe were closed down during 2024.

 

Both CVD Equipment and SDC also sell spares and parts and provide services related to the equipment each segment sells.

 

The chief operating decision maker (“CODM”) of the Company is the Company’s chief executive officer. The CODM assesses performance and decides how to allocate resources, including employees, financial or capital resources, based on segment net income (loss). The CODM considers actual-to-actual variances on a quarterly basis when making decisions about allocating capital and other resources to the segments and to assess the performance for each segment.

 

Financial results for the reportable segments and other business are prepared on a basis consistent with the internal disaggregation of financial information to assist the CODM in making internal operating decisions.

 

 

NOTE 10: SEGMENT REPORTING (continued)

 

Certain income and expenses are excluded from segment net income (loss) and included in the unallocated amounts in the reconciliation of reportable segment net income (loss) to net loss. These items are not used by the CODM in allocating resources or evaluating the results of the segments and include the following: corporate expenses consisting of employment costs of executives, finance, information technology and human resources; board of director fees; professional fees; shareholder and investor relations expense; directors’ and officers’ insurance; interest income and income tax expense. Segment income (loss) from operations may not be consistent with measures used by other companies.

 

The following provides segment information as described below (in thousands):

 

   CVD   SDC   MesoScribe   Total 
   For the three months ended June 30, 2025 
   CVD   SDC   MesoScribe   Total 
                 
Segment revenue  $3,403   $1,734   $9   $5,146 
Less:                    
Cost of revenue   (2,928)   (1,142)   (3)   (4,073)
Research and development   (639)   (47)           -    (686)
Selling   (282)   (67)   -    (349)
General and administrative   (169)   (247)   -    (416)
Interest expense   (3)   -    -    (3)
Segment net income (loss)  $(618)  $231   $6   $(381)
Segment assets  $20,022   $3,923   $-   $23,945 
Capital expenditures  $4   $-   $-   $4 
Depreciation and amortization  $156   $13   $-   $169 

 

   CVD   SDC   MesoScribe   Total 
   For the three months ended June 30, 2024 
   CVD   SDC   MesoScribe   Total 
                 
Segment revenue  $4,107   $2,315   $55   $6,477 
Less:                               
Cost of revenue   (3,586)   (1,285)   (64)   (4,935)
Research and development   (599)   (66)   -    (665)
Selling   (375)   (51)   -    (426)
General and administrative   (257)   (198)   (36)   (491)
Other expense   (4)   -    -    (4)
Interest expense   (4)   -    -    (4)
Segment net income (loss)  $(718)  $715   $(45)  $(48)
Segment assets  $19,460   $4,310   $222   $23,992 
Capital expenditures  $108   $4   $-   $112 
Depreciation and amortization  $142   $12   $-   $154 

 

 

NOTE 10: SEGMENT REPORTING (continued)

 

The following provides segment information as described below (in thousands):

 

   CVD   SDC   MesoScribe   Total 
   For the six months ended June 30, 2025 
   CVD   SDC   MesoScribe   Total 
                 
Segment revenue  $9,718   $3,876   $      31   $13,625 
Less:                    
Cost of revenue   (7,458)   (2,394)   (4)   (9,856)
Research and development   (1,373)   (94)   -    (1,467)
Selling   (649)   (120)   -    (769)
General and administrative   (345)   (449)   -    (794)
Interest expense   (7)   -    -    (7)
Segment net income  $(114)  $819   $27   $732 
Capital expenditures  $43   $6   $-   $49 
Depreciation and amortization  $328   $26   $-   $354 

 

   CVD   SDC   MesoScribe   Total 
   For the six months ended June 30, 2024 
   CVD   SDC   MesoScribe   Total 
 Segment revenue  $7,054   $4,246   $114   $11,414 
Less:                    
Cost of revenue   (6,650)   (2,301)   (137)   (9,088)
Research and development   (1,276)   (134)             -    (1,410)
Selling   (747)   (98)   -    (845)
General and administrative   (475)   (368)   (48)   (891)
Other income   1    -    -    1 
Interest expense   (10)   -    -    (10)
Segment net income  $(2,103)  $1,345   $(71)  $(829)
Capital expenditures  $178   $4   $-   $182 
Depreciation and amortization  $283   $24   $-   $307 

 

Intersegment revenues are determined based on similar product sales to external customers of the Company.

 

The following table presents a reconciliation of net income (loss) of reportable segments to consolidated net loss (in thousands):

 

   2025   2024   2025   2024 
   Three months ended June 30,   Six months ended June 30, 
   2025   2024   2025   2024 
Net income (loss) of reportable segments  $(381)  $(48)  $732   $(829)
Unallocated amounts:                    
Corporate expenses   (762)   (858)   (1,609)   (1,706)
Interest income   82    145    192    302 
Income tax (expense) benefit   -    -    (16)   - 
                     
Consolidated net loss  $(1,061)  $(761)  $(701)  $(2,233)

 

 

NOTE 10: SEGMENT REPORTING (continued)

 

The following table presents revenue by geographic area (in thousands):

 

   2025   2024   2025   2024 
   Three months ended June 30,   Six months ended June 30, 
   2025   2024   2025   2024 
                 
United States  $4,630   $5,822   $12,585   $10,143 
North America, excluding US   -    16    3    16 
Europe, Middle East and Africa   386    220    564    343 
Asia-Pacific   95    287    275    765 
                     
Consolidated total revenue  $5,111   $6,345   $13,427   $11,267 

 

For geographical reporting, revenues are attributed to the location in which the customer facility is located. All the Company’s long-lived assets are located in the United States.