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SEGMENT REPORTING
 9 Months Ended
Sep. 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 ceased 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 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 income (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):

 

 SCHEDULE OF SEGMENT INFORMATION

                 
   For the three months ended September 30, 2025 
   CVD   SDC   MesoScribe   Total 
                 
Segment revenue  $5,677   $1,858   $6   $7,541 
Less:                    
Cost of revenue   (3,867)   (1,254)   1    (5,120)
Research and development   (558)   (36)   -    (594)
Selling   (270)   (58)   -    (328)
General and administrative   (203)   (243)   -    (446)
Interest expense   (3)   -    -    (3)
Segment net income  $776   $267   $7   $1,050 
Segment assets  $18,982   $3,156   $(2)  $22,136 
Capital expenditures  $-   $-   $-   $- 
Depreciation and amortization  $150   $13   $-   $163 

 

                 
   For the three months ended September 30, 2024 
   CVD   SDC   MesoScribe   Total 
                 
Segment revenue  $5,683   $2,005   $661   $8,349 
Less:                    
Cost of revenue   (5,233)   (1,215)   (138)   (6,586)
Research and development   (597)   (47)   -    (644)
Selling   (368)   (50)   (5)   (423)
General and administrative   (315)   (156)   (39)   (510)
Gain on equipment   -    -    625    625 
Interest expense   (5)   -    -    (5)
Segment net income (loss)  $(835)  $537   $1,104   $806 
Segment assets  $17,770   $3,805   $836   $22,411 
Capital expenditures  $31   $7   $-   $38 
Depreciation and amortization  $158   $12   $-   $170 

 

 

NOTE 10: SEGMENT REPORTING (continued)

 

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

 

                 
   For the nine months ended September 30, 2025 
   CVD   SDC   MesoScribe   Total 
                 
Segment revenue  $15,396   $5,733   $37   $21,166 
Less:                    
Cost of revenue   (11,325)   (3,648)   (3)   (14,976)
Research and development   (1,931)   (130)   -    (2,061)
Selling   (919)   (178)   -    (1,097)
General and administrative   (734)   (691)   -    (1,425)
Interest expense   (10)   -    -    (10)
Segment net income  $477   $1,086   $34   $1,597 
Capital expenditures  $43   $6   $-   $49 
Depreciation and amortization  $477   $40   $-   $517 

 

                 
   For the nine months ended September 30, 2024 
   CVD   SDC   MesoScribe   Total 
 Segment revenue  $12,738   $6,252   $775   $19,765 
Less:                    
Cost of revenue   (11,884)   (3,516)   (274)   (15,674)
Research and development   (1,874)   (181)   -    (2,055)
Selling   (1,116)   (147)   (5)   (1,268)
General and administrative   (1,080)   (523)   (87)   (1,690)
Gain on Equipment             625    625 
Other income   2    -    -    2 
Interest expense   (14)   -    -    (14)
Segment net income (loss)  $(3,228)  $1,885   $1,034   $(309)
Capital expenditures  $209   $10   $-   $219 
Depreciation and amortization  $441   $35   $-   $476 

 

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 income (loss) (in thousands):

 

                 
  

Three months ended September 30,

   Nine months ended September 30, 
   2025   2024   2025   2024 
Net income (loss) of reportable
segments		  $1,050   $806   $1,597   $(309)
Unallocated amounts:                    
Corporate expenses   (745)   (734)   (2,170)   (2,154)
Interest income   79    136    272    438 
Income tax (expense)   -    (5)   (16)   (5)
Consolidated net income (loss)  $384   $203   $(317)  $(2,030)

 

 

NOTE 10: SEGMENT REPORTING (continued)

 

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

 

 SCHEDULE OF REVENUE BY GEOGRAPHIC AREA

                 
   Three months ended September 30,   Nine months ended September 30, 
   2025   2024   2025   2024 
                 
United States  $7,139   $6,610   $19,726   $16,753 
North America, excluding US   -    30    3    47 
Europe, Middle East and Africa   136    1,355    699    1,698 
Asia-Pacific   133    199    408    964 
                     
Consolidated total revenue  $7,408   $8,194   $20,836   $19,462 

 

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.