Annual report [Section 13 and 15(d), not S-K Item 405]

Note 19 - Segment and Geographical Disclosures

v3.25.4
Note 19 - Segment and Geographical Disclosures
12 Months Ended
Nov. 30, 2025
Notes to Financial Statements  
Segment Reporting Disclosure [Text Block]

19.

SEGMENT AND GEOGRAPHICAL DISCLOSURES

 

Effective for the fiscal year ended November 30, 2025, the Company adopted ASU 2023‑07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. As a result, the Company expanded its segment disclosures to provide information about significant segment channel expenses, other segment items, and the measures used by the Company’s Chief Operating Decision Maker (“CODM”) in evaluating segment performance. Beginning in fiscal 2025, the Company manages its operations through two reportable channels: (1) Direct‑to‑Consumer (“DTC”) – includes sales through the Company’s e‑commerce websites, Amazon storefronts, and Company‑operated retail stores, and (2) Wholesale ("dealer/distributor") – includes sales to distributors, law‑enforcement agencies, retailers, and international distributors.

 

The CEO, who is also the CODM, evaluates sales channel performance primarily based on sales channel revenue less cost of sales and gross margin. Operating expenses, including marketing and variable expenses, executive compensation, public company costs, certain IT infrastructure costs, share‑based compensation, and items not allocable to a specific segment, are reported as Other Items. No segment‑specific balance sheet information is regularly reviewed by the CODM; therefore, the Company does not report segment assets or segment liabilities.

 

The tables below (in thousands) summarize the Company’s revenue, long-lived assets and total assets as of November 30, 2025 and 2024, respectively by geographic region. The Company’s long-lived assets consist of intangible assets, property and equipment, right of use assets, and deposits for equipment:

 

Revenue

 

U.S./Mexico

   

South Africa

   

Europe/South America/Asia

   

Canada

   

Total

 

2025

  $ 106,128     $ 1,365     $ 8,114     $ 2,513     $ 118,120  

2024

  $ 78,932     $ 198     $ 4,156     $ 2,470     $ 85,756  

 

 

Long-lived assets

 

US

   

South Africa

   

Total

 

2025

  $ 14,256     $ 93     $ 14,349  

2024

  $ 10,966     $ 896       11,862  

 

 

Total Assets

 

US

   

South Africa

   

Canada

   

Total

 

2025

  $ 80,160     $ 3,990     $ 338     $ 84,488  

2024

  $ 66,794     $ 5,128     $     $ 71,922  

 

The table below (in thousands) summarize the Company’s revenue by reportable sales channel as of November 30, 2025:

 

   

Year Ended

 
   

November 30, 2025

 
                         
   

DTC

   

Wholesale

   

Total

 

Revenue

  $ 76,572     $ 41,548     $ 118,120  

COS

    26,493       20,157       46,650  

Gross Margin

  $ 50,079     $ 21,391     $ 71,470  

Gross Margin %

    65.4 %     51.5 %     60.5 %
                         

Operating Expenses

                  $ 59,632  
                         

Profit from operations

                  $ 11,838  

Operating Margin %

                    10.0 %

 

The table below (in thousands) summarize the Company’s revenue by reportable sales channel as of November 30, 2024:

 

   

Year Ended

 
   

November 30, 2024

 
                         
   

DTC

   

Wholesale

   

Total

 

Revenue

  $ 65,856     $ 19,900     $ 85,756  

COS

    22,863       10,121     $ 32,984  

Gross Margin

  $ 42,993     $ 9,779     $ 52,772  

Gross Margin %

    65.3 %     49.1 %     61.5 %
                         

Operating Expenses

                  $ 46,101  
                         

Profit from operations

                  $ 6,671  

Operating Margin %

                    7.8 %