Quarterly report [Sections 13 or 15(d)]

Note 22 - Segment and Geographical Disclosures

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Note 22 - Segment and Geographical Disclosures
9 Months Ended
Aug. 31, 2026
Notes to Financial Statements  
Segment Reporting [Text Block]

22.

SEGMENT AND GEOGRAPHICAL DISCLOSURES

 

Beginning with its Annual Report on Form 10-K for the year ended November 30, 2025, the Company manages and reports 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. Prior to that time, including in its Quarterly Report on Form 10-Q for the quarter ended August 31, 2025, the Company reported a single operating and reportable segment. The prior-year reportable sales channel information presented below has been recast to conform to the current presentation and was not previously reported in this form.

 

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 and nine months ended August 31, 2026 and 2025, respectively, and long-lived assets and total assets as of  August 31, 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

 

August 31, 2026

  $ 14,245     $ —     $ 381     $ 670     $ 15,296  

August 31, 2025

  $ 25,236     $ 998     $ 1,477     $ 468     $ 28,179  

 

Nine Months Ended

 

U.S./Mexico

   

South Africa

   

Europe/South America/Asia

   

Canada

   

Total

 

August 31, 2026

  $ 57,115     $ 1     $ 1,581     $ 2,036     $ 60,733  

August 31, 2025

  $ 74,391     $ 1,456     $ 5,656     $ 1,371     $ 82,874  

 

Long-lived assets

 

US

   

South Africa

   

Total

 

August 31, 2026

  $ 9,109     $ —     $ 9,109  

November 30, 2025

  $ 14,256     $ 93     $ 14,349  

 

Total Assets

 

US

   

South Africa

   

Canada

   

Total

 

August 31, 2026

  $ 62,893     $ 1,399     $ 291     $ 64,583  

November 30, 2025

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

 

Wholesale revenue presented in the reportable sales channel tables below includes royalty revenue, which is presented separately as Royalties in the revenue disaggregation tables in Note 10.

 

The table below (in thousands) summarizes the Company’s revenue by reportable sales channel for the three and nine months ended August 31, 2026:

 

   

Three Months Ended

 
   

August 31, 2026

 
                         
   

DTC

   

Wholesale

   

Total

 

Revenue

  $ 11,096     $ 4,200     $ 15,296  

COS

    2,041       1,101       3,142  

Gross Margin

  $ 9,055     $ 3,099     $ 12,154  

Gross Margin %

    81.6 %     73.8 %     79.5 %
                         

Operating Expenses

                $ 15,084  
                         

Loss from operations

                  $ (2,930 )

Operating Margin %

                    -19.2 %

 

   

Nine Months Ended

 
   

August 31, 2026

 
                         
   

DTC

   

Wholesale

   

Total

 

Revenue

  $ 41,546     $ 19,187     $ 60,733  

COS

    17,394       12,000       29,394  

Gross Margin

  $ 24,152     $ 7,187     $ 31,339  

Gross Margin %

    58.1 %     37.5 %     51.6 %
                         

Operating Expenses

                $ 46,186  
                         

Loss from operations

                  $ (14,847 )

Operating Margin %

                    -24.4 %

 

The tables below (in thousands) summarize the Company’s revenue by reportable sales channel for the three and nine months ended August 31, 2025:

 

   

Three Months Ended

 
   

August 31, 2025

 
                         
   

DTC

   

Wholesale

   

Total

 

Revenue

  $ 17,382     $ 10,797     $ 28,179  

COS

    5,877       5,380       11,257  

Gross Margin

  $ 11,505     $ 5,417     $ 16,922  

Gross Margin %

    66.2 %     50.2 %     60.1 %
                         

Operating Expenses

                $ 14,059  
                         

Profit from operations

                  $ 2,863  

Operating Margin %

                    10.2 %

 

   

Nine Months Ended

 
   

August 31, 2025

 
                         
   

DTC

   

Wholesale

   

Total

 

Revenue

  $ 55,164     $ 27,710     $ 82,874  

COS

    18,820       13,644       32,464  

Gross Margin

  $ 36,344     $ 14,066     $ 50,410  

Gross Margin %

    65.9 %     50.8 %     60.8 %
                         

Operating Expenses

                $ 42,525  
                         

Profit from operations

                  $ 7,885  

Operating Margin %

                    9.5 %