Segment Information and Foreign Operations

3 Months Ended

Mar. 31, 2025

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 (“CODM”) 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 consolidated financial statements. The CODM regularly evaluates consolidated net income (loss) and functional expenses, including cost of revenue, selling, general and administrative and research and development, to manage Company operations. No additional disaggregated expense categories are presented beyond those already disclosed in the primary financial statements.

Product Information

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

	Three Months Ended
	March 31,
	2025		2024
Product Type:
Substrates	$	11,082	$	16,903
Raw Materials and Other		8,274		5,785
Total	$	19,356	$	22,688

Geographical Information

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

	Three Months Ended
	March 31,
	2025		2024
Geographical region:
China	$	13,426	$	11,517
Taiwan		1,221		4,582
Japan		718		990
Asia Pacific (excluding China, Taiwan and Japan)		781		798
Europe (primarily Germany)		2,101		3,725
North America (primarily the United States)		1,109		1,076
Total	$	19,356	$	22,688

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
	March 31,		December 31,
	2025		2024
Long-lived assets by geographic region, net of depreciation:
North America	$	1,281	$	1,353
China		160,107		160,847
	$	161,388	$	162,200

Significant Customers

No customer represented 10% of our revenue for the three months ended March 31, 2025 and one customer represented 12% of our revenue for the three months ended March 31, 2024. Our top five customers, although not the same five customers for each period, represented 36% and 33% of our revenue for the three months ended March 31, 2025 and 2024, 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 March 31, 2025, and December 31, 2024, respectively.