Segment Reporting, Significant Market Segments and Customers

12 Months Ended

Dec. 31, 2025

Segment Reporting [Abstract]

Segment Reporting, Significant Market Segments and Customers

Segment Reporting, Significant Market Segments and Customers

Operating segments are defined as components of an entity about which discrete financial information is evaluated regularly by the Company's Chief Operating Decision Maker ("CODM") in deciding how to allocate resources and assess performance. Rockwell operates in one market segment, the hemodialysis market, which involves the manufacture, sale and distribution of hemodialysis products to hemodialysis clinics, including pharmaceutical, dialysis concentrates, dialysis kits and other ancillary products used in the dialysis process. Accordingly, the Company has one reportable segment. The Company has a single management team that reports to its Chief Executive Officer, the Company's CODM, who comprehensively manages the entire Company. The accounting policies of the segment are the same as those described in the summary of significant accounting policies.

The CODM assesses performance for the segment and decides how to allocate resources based on net loss that also is reported on the statements of operations and comprehensive loss as net loss. The CODM uses net loss to monitor budget and forecast versus actual results in assessing segment performance, as well as cash forecast models, in order to evaluate operating results and performance in deciding how to allocate resources. The measure of segment assets is reported on the consolidated balance sheets as total assets.

The Company’s significant segment expenses for its one segment for the years ended December 31, 2025 and 2024 consisted of the following (table in thousands):

	Year Ended December 31,
	2025		2024
Net Sales	$	69,258	$	101,489
Cost of Sales	57,563		84,005
Gross Profit	11,695		17,484
Employee Compensation	10,140		9,452
Administrative Costs	6,246		7,424
Operating (Loss) Income	(4,691)		608
Other Income (Expense):
Realized Gain on Available-for-Sale Investments	267		74
Interest Expense	(1,124)		(1,254)
Interest Income	234		92
Total Other Expense, net	(623)		(1,088)
Net Loss	$	(5,314)	$	(480)

Significant Market Segments and Customers

Rockwell's customer mix is diverse, with most customer sales concentrations under 10%, however, one customer, DaVita, accounted for approximately 16% of Rockwell's total net product sales in 2025 and 45% of its total net product sales in 2024. Rockwell's accounts receivable from DaVita were approximately 14% and 20% of the total net consolidated accounts receivable balance as of December 31, 2025 and 2024, respectively. For additional information regarding the Company's contracts with DaVita, see Note 3. No other current customer accounted for more than 10% of sales in any of the last two years, however one other customer accounted for 17% of the Company's total net consolidated account receivable balance as of December 31, 2025.

The majority of Rockwell's international sales in each of the last two years were sales to domestic distributors that were resold to end users outside the United States. Rockwell's sales to foreign customers and distributors accounted for approximately 12% and 9% of its total sales in 2025 and 2024, respectively.