Quarterly report pursuant to Section 13 or 15(d)

Segment Reporting

v3.24.3
Segment Reporting
 9 Months Ended
Sep. 30, 2024
Segment Reporting [Abstract]  
Segment Reporting Segment Reporting
The Company operates in four segments: the Smart Windows division, the Fiber Optics division, Slant Wells group and Element 82.

Smart Windows Division: This division focuses on developing and selling optical switching films that can be embedded between sheets of glass or applied to the surface of glass or other rigid substrates like acrylic, to electronically control opacity. The technology, initially developed by Hewlett-Packard, enables a transition between clear and dark states in seconds. It is aimed at various applications including commercial buildings, automotive sunroofs, and residential windows. The Company partners with leading glass and film manufacturers for the mass production and distribution of its DynamicTint product. This segment also includes Smart Window Inserts, designed for retrofitting in commercial and residential settings, offering dynamic tinting along with additional insulation and soundproofing.

Fiber Optics Division: The Company's involvement in fiber optics is relatively recent, marked by the acquisition of Amerigen 7's assets, which was focused on the construction of 5G fiber optics infrastructure. The Fiber Optics division provides contracting services to the fiber optics and telecommunications infrastructure industry. Services range from program management and engineering to the construction of aerial and underground fiber networks. This division aims to capitalize on the demand for enhanced telecommunications bandwidth, with efforts to expand through selective market share increase, potential acquisitions, and leveraging new equipment like micro trenchers to gain a strategic advantage.

Slant Wells Group: This division focuses on the construction of slant wells for the provision of ocean water to desalination plants that in turn produces fresh water to the planned development sites.

Element 82: Element 82 is a water pipeline inspection service provider focused on lead detection and condition assessment. Element 82 plays a vital role in lead testing and prevention, working closely with health departments to address lead exposure risks, especially among children.

The CODM does not evaluate operating segments using asset or liability information.

The following table presents a comparative summary of the Company’s revenues by reportable segment for the periods presented (in thousands):
For the three months ended,
September 30		 For the nine months ended
September 30,
2024 2023 2024 2023
Segment Revenue
Smart Windows $ —  $ —  $ —  $ — 
Fiber Optics
 4,969  —  10,299  59 
Slant Wells 2,836  —  2,836  — 
Element 82 232  —  232  — 
Total Revenue $ 8,037  $ —  $ 13,367  $ 59 
Operations by reportable segment for the three months ended September 30, 2024 and 2023, are as follows (in thousands):

For the three months ended September 30, 2024
Smart Windows Fiber Optics Slant Wells Element 82
Corporate and Other(a)
Total
Revenue $ —  $ 4,969  $ 2,836  $ 232  $ —  $ 8,037 
Cost of revenue —  5,411  1,117  95  —  6,623 
Gross (loss) profit —  (442) 1,719  —  137  —  —  —  1,414 
Operating expenses:
Research and development 720  —  —  —  —  720 
General and administrative —  1,107  1  140  5,259  6,507 
Total operating expenses 720  1,107  1  140  5,259  7,227 
Income (loss) from operations (720) (1,549) 1,718  (3) (5,259) (5,813)
       
Other income (expense), net:      
Interest income (expense) —  (5) —  (1) 6  — 
Other income (expense), net —  8  —  —  (59) (51)
Total other income (expense), net —  3  —  (1) (53) (51)
       
Net income (loss) $ (720) $ (1,546) $ 1,718  $ (4) $ (5,312) $ (5,864)
(a)The Corporate and Other are expenses that are not currently allocated among our Smart Windows division, Fiber Optics division, Slant Wells group and Element 82.
For the three months ended September 30, 2023
Smart Windows Fiber Optics Slant Wells Element 82 Corporate and Other(a) Total
Revenue $ —  $ —  $ —  $ —  $ —  $ — 
Cost of revenue —  —  —  —  —  — 
Gross profit (loss) —  —  —  —  —  — 
Operating expenses:
Research and development 492  —  —  —  —  492 
General and administrative —  471  —  —  2,470  2,941 
Total operating expenses 492  471  —  —  2,470  3,433 
Loss from operations (492) (471) —  —  (2,470) (3,433)
       
Other income (expense), net:      
Interest expense —  (1) —  —  (2,444) (2,445)
Change in fair value of warrants —  —  —  —  2,688  2,688 
Change in fair value of notes —  —  —  —  (40) (40)
Change in fair value of derivative liability —  —  —  —  401  401 
Other expense, net —  —  —  —  (30) (30)
Total other income (expense), net —  (1) —  —  575  574 
       
Net loss $ (492) $ (472) $ —  $ —  $ (1,895) $ (2,859)
(a) The Corporate and Other are expenses that are not currently allocated among our Smart Windows division, Fiber Optics division, Slant Wells group and Element 82.
For the nine months ended September 30, 2024
Smart Windows Fiber Optics Slant Wells Element 82 Corporate and Other(a) Total
Revenue $ —  $ 10,299  $ 2,836  $ 232  $ —  $ 13,367 
Cost of revenue —  11,213  1,135  94  —  12,442 
Gross (loss) profit —  (914) 1,701  138  —  925 
Operating expenses:
Research and development 1,945  —  —  —  —  1,945 
General and administrative —  1,815  5  140  11,445  13,405 
Total operating expenses 1,945  1,815  5  140  11,445  15,350 
Income (loss) from operations (1,945) (2,729) 1,696  (2) (11,445) (14,425)
       
Other income (expense), net:      
Interest expense —  (168) (4) (1) (828) (1,001)
Other income (expense), net —  8  —  —  (87) (79)
Total other expense, net —  (160) (4) (1) (915) (1,080)
       
Net income (loss) $ (1,945) $ (2,889) $ 1,692  $ (3) $ (12,360) $ (15,505)
(a)The Corporate and Other are expenses that are not currently allocated among our Smart Windows division, Fiber Optics division, Slant Wells group and Element 82.
For the nine months ended September 30, 2023
Smart Windows Fiber Optics Slant Wells Element 82 Corporate and Other(a) Total
Revenue $ —  $ 59  $ —  $ —  $ —  $ 59 
Cost of revenue —  54  —  —  —  54 
Gross (loss) profit —  5  —  —  —  5 
Operating expenses:
Research and development 1,523  —  —  —  —  1,523 
General and administrative —  3,381  —  —  7,545  10,926 
Total operating expenses 1,523  3,381  —  —  7,545  12,449 
Loss from operations (1,523) (3,376) —  —  (7,545) (12,444)
       
Other income (expense), net:      
Interest expense —  (10) —  —  (6,960) (6,970)
Loss on extinguishment of warrant liability —  —  —  —  (504) (504)
Loss on extinguishment of debt —  —  —  —  (2,345) (2,345)
Gain on issuance of convertible notes —  —  —  —  64  64 
Change in fair value of warrants —  —  —  —  10,424  10,424 
Change in fair value of notes —  —  —  —  (7,040) (7,040)
Change in fair value of derivative liability —  —  —  —  401  401 
Other expense, net —  —  —  —  (1,264) (1,264)
Total other expense, net —  (10) —  —  (7,224) (7,234)
       
Net loss $ (1,523) $ (3,386) —  $ —  $ (14,769) $ (19,678)
(a)The Corporate and Other are expenses that are not currently allocated among our Smart Windows division, Fiber Optics division, Slant Wells group and Element 82.
The following table presents long-lived assets by segment (in thousands):

As of September 30 As of December 31
2024 2023
Smart Windows $ 2,110  $ 2,490 
Fiber Optics $ 2,632  $ 2,021 
Slant Wells $ 802  $ — 
Element 82 $ 985  $ —