Segment Information and Foreign Operations

9 Months Ended

Sep. 30, 2024

Segment Information and Foreign Operations

Segment Information and Foreign Operations

Note 11. Segment Information and Foreign Operations

Segment Information

We operate in one segment for the design, development, manufacture and distribution of high-performance compound and single element semiconductor substrates and sale of raw materials integral to these substrates. In accordance with ASC Topic 280, Segment Reporting, our chief operating decision maker has been identified as the Chief Executive Officer, who reviews operating results to make decisions about allocating resources and assessing performance for the Company. Since we operate in one segment, all financial segment and product line information can be found in the condensed consolidated financial statements.

Product Information

The following table represents revenue amounts (in thousands) by product type:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2024		2023		2024		2023
Product Type:
Substrates	$	15,007	$	10,385	$	51,655	$	34,901
Raw Materials and Other		8,638		6,981		22,601		20,465
Total	$	23,645	$	17,366	$	74,256	$	55,366

Geographical Information

The following table represents revenue amounts (in thousands) reported for products shipped to customers in the corresponding geographic region:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2024		2023		2024		2023
Geographical region:
China	$	13,807	$	10,307	$	42,271	$	28,698
Taiwan		2,140		2,491		10,142		6,369
Japan		1,623		558		3,409		3,489
Asia Pacific (excluding China, Taiwan and Japan)		797		894		2,307		2,722
Europe (primarily Germany)		2,720		2,407		11,134		8,992
North America (primarily the United States)		2,558		709		4,993		5,096
Total	$	23,645	$	17,366	$	74,256	$	55,366

Long-lived assets consist primarily of property, plant and equipment and operating lease right-of-use assets, and are attributed to the geographic location in which they are located. Long-lived assets, net of depreciation, by geographic region were as follows (in thousands):

	As of
	September 30,		December 31,
	2024		2023
Long-lived assets by geographic region, net of depreciation:
North America	$	1,423	$	1,631
China		167,487		167,516
	$	168,910	$	169,147

Significant Customers

No customer represented 10% of our revenue for the three months ended September 30, 2024 and 2023. Our top five customers, although not the same five customers for each period, represented 29% and 31% of our revenue for the three months ended September 30, 2024 and 2023, respectively.

No customer represented 10% of our revenue for the nine months ended September 30, 2024 and 2023. Our top five customers, although not the same five customers for each period, represented 30% and 25% of our revenue for the nine months ended September 30, 2024 and 2023, respectively.

We perform ongoing credit evaluations of our customers’ financial condition, and limit the amount of credit extended when deemed necessary, but generally do not require collateral. One customer accounted for more than 10% of our accounts receivable balance as of September 30, 2024, and no customer accounted for more than 10% of our accounts receivable balance as of December 31, 2023.