Note 17 - Segment Information

12 Months Ended

Dec. 31, 2024

Notes

Note 17 - Segment Information

Note 17 – Segment Information

The Company operates as 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 gross profit margin, 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 allocation of budget between cost of sales, sales and marketing, research and development, and general and administrative expenses.

The following table presents selected financial information with respect to the Company’s single operating segment for the years ended December 31, 2024, 2023 and 2022:

	Year Ended December 31,
	2024	2023	2022
Revenues	40,903	50,224	52,281
Less:
Standard cost of sales	13,406	17,400	16,939
Other cost of sales	3,353	2,786	3,146
Gross Profit	24,143	30,038	32,196
Gross Profit Margin	59.0%	59.8%	61.6%
Sales & Marketing	1,901	1,685	1,507
Research & Development	813	560	493
Litigation Fees	2,139	1,660	670
Amortization	2,030	5,661	6,386
Other General & Administrative	3,666	3,695	3,350
Operating Income	13,594	16,777	19,790
Operating Income Margin	33.2%	33.4%	37.9%
Other Income
Interest income	3,367	3,036	661
Other income (expense)	(159)	276	209
Income before income taxes	16,802	20,089	20,659
Provision for income taxes	2,928	3,454	4,186
Net Income	13,874	16,635	16,473

See the consolidated financial statements for other financial information regarding the Company’s operating segment.