Segment and Geographical Data

6 Months Ended

Dec. 31, 2025

Segment and Geographical Data

Segment and Geographical Data

NOTE 14 – Segment and Geographical Data

Operating segments are defined as components of an enterprise about which separate discrete information is available for evaluation by the chief operating decision maker. We have one operating and reportable segment.

The Company’s CODM, (the President and Chief Operating Officer) evaluates performance of the Company and makes decisions regarding the allocation of resources based on total Company results. The measure of segment assets is reported on the balance sheet as total consolidated assets. The consolidated net income is the measure of segment profit that is most consistent with U.S. GAAP. Segment profit is used in developing the overall strategy and during the annual budget process, as well as considered in budget-to-actual variances on a monthly basis when making decisions about the allocation of operating and capital resources.

The CODM is regularly provided with not only the consolidated expenses as noted on the face of the income statement, but also the significant segment expenses as below:

	Three months ended December 31,				Six months ended December 31,
	2025		2024		2025		2024
	(in thousands)				(in thousands)
Net Revenue	$	48,172	$	42,933	$	97,340	$	86,936
Less:
Cost of revenue		19,934		18,444		41,256		37,831
Compensation-related expenses(1)		7,657		7,001		14,821		14,019
Commission expenses		1,595		1,462		3,410		2,959
Marketing, advertising and other promotional expenses		916		916		1,852		1,807
Research and development (excluding compensation related benefits)		316		316		664		675
Selling, general, and administrative expenses(2)		3,001		3,623		6,941		6,618
Interest and other (income), net		(986)		(921)		(1,978)		(2,065)
Provision for Income Taxes		2,236		1,625		4,706		3,440
Segment Profit	$	13,503	$	10,467	$	25,668	$	21,652

(1) Excludes stock based compensation.

(2) Excludes compensation-related expenses, commission expenses and marketing, advertising and other promotional expenses.

Geographic Information for Revenue

The Company is engaged in one major line of business: the development, manufacture, and distribution of security products, encompassing access control systems, door-locking products, intrusion and fire alarm systems and video surveillance products for commercial and residential use. The Company also provides wireless communication service for intrusion and fire alarm systems. These products are used for commercial, residential, institutional, industrial and governmental applications, and are sold worldwide principally to independent distributors, dealers and installers of security equipment. Sales to unaffiliated customers are primarily shipped from the United States. The Company has customers worldwide with major concentrations in North America. All of the Company’s sales

originate in the United States and are shipped primarily from the Company’s facilities in the United States. There were no sales into any one foreign country in excess of 10% of total Net Revenue. The following table presents net revenue by geographic area.

	Three months ended December 31,				Six months ended December 31,
	2025		2024		2025		2024
Sales to external customers:
United States	$	47,593	$	42,679	$	96,465	$	86,367
Foreign		579		254		875		569
Total Net Revenue	$	48,172	$	42,933	$	97,340	$	86,936

Geographic Information for Long-Lived Assets

Long-lived assets include property and equipment, net and operating lease right-of-use assets, net. Our long-lived assets are based on the physical location of the assets. The following table presents long-lived assets by geographic area.

	December 31, 2025		June 30, 2025
Long-lived assets:
United States	$	5,316	$	5,264
Dominican Republic		8,754		9,157
Total Long-lived assets	$	14,070	$	14,421