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BUSINESS SEGMENTS
 6 Months Ended
Jun. 30, 2025
Segment Reporting [Abstract]  
BUSINESS SEGMENTS

8. BUSINESS SEGMENTS

 

We currently have two business segments: (i) the sale of physical products, including portable hand-held breathalyzers and related accessories, supplies, education, training (“Product Sales”), and royalties from development contracts with OEM manufacturers (“Royalties” and, together with Product Sales, the "Products" segment), and (ii) rental of a portion of our building (the “Rentals” segment).  The accounting policies of the segments are the same as those described in the summary of significant accounting policies in Note 2. 

 

Operating losses for these segments exclude unallocated corporate items.  Administrative and staff costs were commonly used by all business segments and were indistinguishable.

 

The following sets forth information about the operations of the business segments for the three months ended June 30, 2025 and 2024. There were no intersegment revenues.

        
Revenues:  2025   2024 
  Product sales  $2,191,260   $2,370,433 
  Royalties   19,800    8,824 
  Products subtotal   2,211,060    2,379,257 
  Rentals   8,316    8,073 
  Total   2,219,376    2,387,330 
           
Gross profit:          
  Product sales   900,903    980,482 
  Royalties   19,800    8,824 
  Products subtotal   920,703    989,306 
  Rentals   3,896    4,290 
  Total   924,599    993,596 
           
Interest expense:          
  Product sales   25,276    8,964 
  Royalties   —    — 
  Products subtotal   25,276    8,964 
  Rentals   1,029    1,093 
  Total   26,305    10,057 
           
Net (loss) before taxes:          
  Product sales   (421,376)   (410,463)
  Royalties   19,800    8,824 
  Products subtotal   (401,576)   (401,639)
  Rentals   7,937    3,197 
  Total  $(393,639)  $(398,442)

 

The following sets forth information about the operations of the business segments for the six months ended June 30, 2025 and 2024. There were no intersegment revenues. 

        
Revenues:  2025   2024 
  Product sales  $4,454,307   $4,504,867 
  Royalties   25,471    19,760 
  Products subtotal   4,479,778    4,524,627 
  Rentals   16,632    16,146 
  Total   4,496,410    4,540,773 
           
Gross profit:          
  Product sales   1,800,145    1,799,837 
  Royalties   25,471    19,760 
  Products subtotal   1,825,616    1,819,597 
  Rentals   7,549    9,306 
  Total   1,833,165    1,828,903 
           
Interest expense:          
  Product sales   48,730    17,859 
  Royalties   —    — 
  Products subtotal   48,730    17,859 
  Rentals   2,070    2,348 
  Total   50,800    20,207 
           
Net (loss) before taxes:          
  Product sales   (717,274)   (797,865)
  Royalties   25,471    19,760 
  Products subtotal   (691,803)   (778,105)
  Rentals   5,478    6,958 
  Total  $(686,325)  $(771,147)

 

Significant segment expenses for the three months ended June 30, 2025 are as follows. We have excluded our rentals segment and allocated all expenses to the products segment in the table below as the rentals segment is immaterial. Similarly, royalties are excluded as none of the expenses are attributable to royalties. Operating income from royalties was $19,800 and $8,824 for the three months ended June 30, 2025 and 2024 respectively, and for building rentals it was $3,896 and $4,692 respectively.

        
   Three Months Ended June 30, 
   2025   2024 
Product sales  $2,191,260   $2,370,433 
Cost of sales   (1,290,357)   (1,390,352)
Gross profit   900,903    980,081 
Less: research , development and sustaining engineering   (623,262)   (662,276)
Sales and marketing   (339,528)   (365,374)
General and administrative   (340,074)   (363,009)
Interest income   10,931    8,677 
Interest expense   (26,305)   (10,057)
Operating loss before royalties and building rentals   (417,335)   (411,958)
Royalties   19,800    8,824 
Building rentals operating income   3,896    4,692 
Operating (loss) before taxes  $(393,639)  $(398,442)

 

Significant segment expenses for the six months ended June 30, 2025 are as follows. We have excluded our rentals segment and allocated all expenses to the products segment in the table below as the rentals segment is immaterial. Similarly, royalties are excluded as none of the expenses are attributable to royalties. Operating income from royalties was $25,471 and $19,760 for the six months ended June 30, 2025 and 2024 respectively, and for building rentals it was $7,549 and $6,840 respectively.

        
   Six Months Ended June 30, 
   2025   2024 
Product sales  $4,454,307   $4,504,867 
Cost of sales   (2,654,162)   (2,702,564)
Gross profit   1,800,145    1,802,303 
Less: research, development and sustaining engineering   (1,092,942)   (1,217,875)
Sales and marketing   (674,084)   (710,383)
General and administrative   (724,952)   (677,934)
Interest income   23,288    26,349 
Interest expense   (50,800)   (20,207)
Operating loss before royalties and building rentals   (719,345)   (797,747)
Royalties   25,471    19,760 
Building rentals operating income   7,549    6,840 
Operating (loss) before taxes  $(686,325)  $(771,147)

 

The following sets forth domestic and international product sales for the three months ended June 30, 2025 and 2024.

        
    Three Months Ended June 30, 
    2025   2024 
 Domestic   $1,384,590   $1,659,473 
 International    806,670    710,960 
 Total   $2,191,260   $2,370,433 

 

The following sets forth domestic and international product sales for the six months ended June 30, 2025 and 2024.

          
    Six Months Ended June 30, 
    2025   2024 
 Domestic   $2,984,386   $3,288,553 
 International    1,469,921    1,216,314 
 Total   $4,454,307   $4,504,867 

 

 

Our purchases of assets for the above products segment for the six months ended June 30, 2025 and June 30, 2024 were as follows.

        
   2025   2024 
Property, plant and equipment  $22,810   $263,937 
Research and development equipment, software and space modifications
not in service		   219,441    227,354 
Patent filing cost   —    21,708 
Total  $242,251   $512,999 

No assets were purchased for the rentals segment.

 

At June 30, 2025, $104,697 of our assets were used in the Rentals segment, with the remainder, $8,518,457, used in the Products and unallocated segments. The lease in place at June 30, 2025 expired for our Rentals segment and was not renewed. At December 31, 2024, $104,697 of our assets were used in the Rentals segment, with the remainder, $8,620,072 used in the Products and unallocated segments.

 

The following is the disaggregation of revenue into broad categories, which we have defined as shown below for the three months ended June 30, 2025 and June 30, 2024.

        
Product sales:  2025   2024 
Product sales and supplies  $2,006,196   $2,182,535 
Training and certification   160,427    167,101 
Service plans and equipment rental   24,637    20,797 
Product sales subtotal   2,191,260    2,370,433 
Royalties   19,800    8,824 
Rental income   8,316    8,073 
Total revenues  $2,219,376   $2,387,330 

 

The following is the disaggregation of revenue into broad categories, which we have defined as shown below for the six months ended June 30, 2025 and June 30, 2024.

         
Product sales:  2025   2024 
Product sales and supplies  $4,117,766   $4,094,359 
Training and certification   288,985    371,160 
Service plans and equipment rental   47,556    39,348 
Product sales subtotal   4,454,307    4,504,867 
Royalties   25,471    19,760 
Rental income   16,632    16,146 
Total revenues  $4,496,410   $4,540,773