(8) Segment Information

6 Months Ended

Jun. 30, 2025

Notes

(8) Segment Information

8) 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 quarters ended June 30, 2025 and June 30, 2024:

	Quarter Ended June 30,
	2025	2024
Revenues	9,953	10,400
Less:
Standard cost of sales	3,763	3,307
Other cost of sales	595	840
Gross Profit	5,595	6,253
Gross Profit Margin	56.2%	60.1%
Sales & Marketing	525	546
Research & Development	135	254
Litigation Fees	284	637
Amortization	540	509
Other General & Administrative	915	869
Operating Income	3,196	3,438
Operating Income Margin	32.1%	33.1%
Other Income
Interest income	679	858
Other income (expense)	(40)	(85)
Income before income taxes	3,835	4,211
Provision for income taxes	787	758
Net Income	3,048	3,453