Quarterly report [Sections 13 or 15(d)]

Note 22 - Segment and Geographical Disclosures

v3.26.1
Note 22 - Segment and Geographical Disclosures
3 Months Ended
Feb. 28, 2026
Notes to Financial Statements  
Segment Reporting Disclosure [Text Block]

22.

SEGMENT AND GEOGRAPHICAL DISCLOSURES

 

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 website, 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, by geographic region, the Company’s revenue for the three months ended February 28, 2026 and 2025, respectively, and long-lived assets and total assets as of  February 28, 2026 and November 30, 2025, respectively. The Company’s long-lived assets consist of intangible assets, property and equipment, right of use assets, and deposits for equipment:

 

Revenue:

                                       

Three Months Ended

 

U.S./Mexico

   

South Africa

   

Europe/South America/Asia

   

Canada

   

Total

 

February 28, 2026

  $ 27,796     $     $ 529     $ 724     $ 29,049  

February 28, 2025

  $ 24,141     $ 143     $ 1,316     $ 590     $ 26,190  

 

Long-lived assets

 

US

   

South Africa

   

Total

 

February 28, 2026

  $ 14,153     $ 18     $ 14,171  

November 30, 2025

  $ 14,256     $ 93     $ 14,349  

 

Total Assets

 

US

   

South Africa

   

Canada

   

Total

 

February 28, 2026

  $ 75,947     $ 3,561     $ 392     $ 79,900  

November 30, 2025

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

 

The table below (in thousands) summarize the Company’s revenue by reportable sales channel as of February 28, 2026:

 

   

Three Months Ended

 
   

February 28, 2026

 
                         
   

DTC

   

Wholesale

   

Total

 

Revenue

  $ 18,122     $ 10,927     $ 29,049  

COS

    6,329       5,319       11,648  

Gross Margin

  $ 11,793     $ 5,608     $ 17,401  

Gross Margin %

    65.1 %     51.3 %     59.9 %
                         

Operating Expenses

                  $ 16,473  
                         

Profit from operations

                  $ 928  

Operating Margin %

                    3.2 %

 

The table below (in thousands) summarize the Company’s revenue by reportable sales channel as of February 28, 2025:

 

   

Three Months Ended

 
   

February 28, 2025

 
                         
   

DTC

   

Wholesale

   

Total

 

Revenue

  $ 19,898     $ 6,292     $ 26,190  

COS

    6,947       3,319       10,266  

Gross Margin

  $ 12,951     $ 2,973     $ 15,924  

Gross Margin %

    65.1 %     47.3 %     60.8 %
                         

Operating Expenses

                  $ 14,228  
                         

Profit from operations

                  $ 1,696  

Operating Margin %

                    6.5 %