Note 18 - Segment Information

12 Months Ended

Dec. 31, 2024

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

18. Segment Information

Aterian, Inc. is a technology-enabled consumer products company that predominantly operates through online retail channels such as Amazon, Walmart, and Target and its own direct to consumer websites. The Company operates its owned brands, which were either incubated or purchased, selling products in multiple categories, including home and kitchen appliances, kitchenware, air quality appliances, health and beauty products and essential oils.

The Company has determined that it has one operating segment. The Company's chief operating decision maker ("CODM") is its chief executive officer, who reviews financial information presented on a consolidated basis. The CODM uses consolidated operating margin and net income to assess financial performance and allocate resources. These financial metrics are used by the CODM to make key operating decisions, such as the determination of the rate at which the Company seeks to grow operating margin and the allocation of budget between cost of sales, variable sales costs, and other vendor and payroll expenses.

	December 31,			December 31,
	2023			2024
Net revenue	$	142,566		$	99,045
Less:
Cost of Sales		72,281			37,550
Variable sales costs (1)		68,864			44,553
Other vendor and payroll expenses		25,661			19,566
Depreciation and amortization		3,886			1,689
Impairment loss on intangibles		39,728			—
Stock-based compensation expense		8,336			7,510
Other segment items (2)		(1,626	)		39
Net loss	$	(74,564	)	$	(11,862	)

(1)	Variable sales costs primarily include e-commerce platform commissions, online advertising, and selling and logistics expenses.
(2)	Other segment items primarily include incomes taxes, interest expense, and the change in fair value of warrant liabilities.

The CODM does not use total assets as a financial metric when making key operating decisions.