Segment Reporting

9 Months Ended

Nov. 30, 2024

Segment Reporting [Abstract]

Segment Reporting

(23) Segment Reporting

The Company operates in three distinct segments based on our products and our internal organizational structure. The three operating segments, which are also the Company’s reportable segments, are Automotive Electronics, Consumer Electronics, and Biometrics.

Our Automotive Electronics segment designs, manufactures, distributes and markets automotive security, vehicle access, and remote start modules and systems; smart phone telematics applications; mobile multi-media infotainment products and rear-seat entertainment products, including overhead, seat-back, and headrest systems; rear observation and collision avoidance systems; blind spot sensors; automotive sensing and camera systems; driver distraction products; 360 camera applications; distribution of satellite radios, including plug and play models and direct connect models; cruise control systems; private label audio products; heated seats; interior lighting solutions; security and shock sensors; turn signal switches; puddle lamps; box lights; harnesses; Electric Vehicle Sound Systems ("EVSS"); interior lighting systems; and logo lighting modules.

Our Consumer Electronics segment designs, manufactures, distributes and markets premium loudspeakers; architectural speakers; commercial and cinema speakers; outdoor speakers; wireless and Bluetooth speakers; A/V receivers; high performance 2 channel loudspeakers; high performance 2 channel electronics; high performance party speakers; home theater systems; business music systems; streaming music systems; on-ear and in-ear headphones; wired and wireless headphones and ear buds; Bluetooth headphones and ear buds; soundbars; solar powered balcony systems; High-Definition Television ("HDTV") antennas; Wireless Fidelity ("WiFi") antennas; High-Definition Multimedia Interface ("HDMI") accessories; karaoke products; home electronic accessories such as cabling, power cords, and other connectivity products; performance enhancing electronics; power supply systems and charging products; electronic equipment cleaning products; set-top boxes; and home and portable stereos.

Our Biometrics segment consists of an equity investment in BioCenturion LLC (see Note 13) which designs, manufactures, markets, and distributes iris identification and biometric security related products.

The accounting principles applied at the consolidated financial statement level are generally the same as those applied at the operating segment level and intersegment sales are not material. The segments are allocated interest expense, based upon a pre-determined formula, which utilizes a percentage of each operating segment's intercompany balance, which is offset in Corporate/Eliminations.

Segment data for each of the Company's segments is presented below:

	Automotive Electronics			Consumer Electronics			Biometrics (a)			Corporate/ Eliminations			Total
Three Months Ended November 30, 2024
Net sales	$	31,716		$	73,368			-		$	91		$	105,175
Equity in income (loss) of equity investees (b)		860			-			(478	)		-			382
Interest expense and bank charges		358			1,036			439			(478	)		1,355
Depreciation and amortization expense		740			1,408			-			562			2,710
Loss before income taxes (a) (b) (c)		(14,846	)		(34,018	)		(878	)		(232	)		(49,974	)
Three Months Ended November 30, 2023
Net sales	$	35,920		$	99,995		$	92		$	(747	)	$	135,260
Equity in income of equity investees		1,101			-			-			-			1,101
Interest expense and bank charges		440			1,925			435			(908	)		1,892
Depreciation and amortization expense		773			1,466			70			644			2,953
Income (loss) before income taxes		299			5,903			(1,259	)		(4,063	)		880
Nine Months Ended November 30, 2024
Net sales	$	85,782		$	203,344		$	8		$	190		$	289,324
Equity in income (loss) of equity investees (b)		2,776			-			(1,843	)		-			933
Interest expense and bank charges		1,128			4,530			1,338			(1,530	)		5,466
Depreciation and amortization expense		2,229			4,354			-			1,856			8,439
Loss before income taxes (a) (b) (c) (d)		(18,474	)		(29,409	)		(3,243	)		(6,227	)		(57,353	)
Nine Months Ended November 30, 2023
Net sales	$	109,749		$	251,369		$	401		$	(691	)	$	360,828
Equity in income of equity investees		3,958			-			-			-			3,958
Interest expense and bank charges		1,484			5,991			1,296			(3,760	)		5,011
Depreciation and amortization expense		2,471			4,420			210			2,344			9,445
Loss before income taxes		(1,601	)		(1,064	)		(4,341	)		(16,547	)		(23,553	)

(a) Included in Loss before income taxes within the Automotive Electronics and Consumer Electronics segments for the three and nine months ended November 30, 2024 are impairment charges of $1,452 and $26,719, respectively, related to goodwill, and $7,436 and $7,381, respectively, related to definite-lived intangible assets. Also included in Loss before income taxes within the Consumer Electronics segment for the three and nine months ended November 30, 2024 is an impairment charge of $1,276 related to indefinite-lived intangible assets.

(b) On March 1, 2024, the Company's majority owned subsidiary, EyeLock LLC, contributed assets, including inventory and intangible assets, to a newly formed joint venture, BioCenturion LLC, which will operate a Biometrics business. For the three and nine months ended November 30, 2024, the Company accounted for its investment in BioCenturion LLC as an equity method investment (see Note 13).

(c) Included in Loss before income taxes within Corporate/Eliminations for the three and nine months ended November 30, 2024 is a gain on the sale of assets in the amount of $7,299 representing the sale of the Company's manufacturing facility in Lake Nona, FL (see Note 20).

(d) Included in Loss before income taxes within the Consumer Electronics segment for the nine months ended November 30, 2024 is a gain on the sale of a business in the amount of $8,300 and a gain on the sale of assets in the amount of $2,154 (see Note 2).