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Segment Information
 9 Months Ended
Sep. 30, 2025
Segment Reporting [Abstract]  
Segment Information

Note 15 – Segment Information

 

Segment Information

 

On August 1, 2025, the Company sold its Singing Machine business to Stingray USA. Prior to this transaction, the Company operated two reportable segments: (i) the Singing Machine business, a home karaoke consumer products business, and (ii) the SemiCab business, an AI-enabled software logistics and distribution platform. Following the sale, the Company’s operations consist solely of its SemiCab business. The Company is therefore managed on a consolidated basis and now has a single operating and reportable segment. As a result of the sale, the operating results and cash flows of the Singing Machine business have been reclassified as discontinued operations for all periods presented. Additional information regarding the discontinued operations is provided in Note 19 – Discontinued Operations.

 

In accordance with ASC 280, Segment Reporting, an operating segment is defined as a component of an enterprise that engages in business activities from which it may earn revenues and incur expenses, for which discrete financial information is available, and whose operating results are regularly reviewed by the CODM in allocating resources and assessing performance.

 

The Company’s CODM, its Chief Executive Officer, reviews consolidated operating results including net sales, gross profit, loss from operations, and net loss from continuing operations, as presented in the consolidated statements of operations. The CODM also considers consolidated operating expenses, non-financial information, and qualitative factors in evaluating performance, monitoring budgeted to actual results, and making decisions regarding capital allocation and levels of investment in operating activities. The CODM does not review segment asset information for purposes of allocating resources.

 

Geographic Information

 

Revenue is attributed to geographic areas based on the location where services are rendered. For the three and nine months ended September 30, 2025 and September 30, 2024, substantially all of the Company’s revenues were generated from customers located in India.