| Segment Information |
14. Segment Information We have two reporting segments, High Performance Products and Technology Solutions, discussed below. The Company’s country of domicile is the United States. High Performance Products (HPP) – The HPP segment consists of primarily of the following product lines: ARIA, Multicomputer, and Myricom. Most of the revenue is from US customers for all product lines, but the segment has expanded into APAC and Africa regions with its ARIA product line. The segment’s operations are based in Lowell, Massachusetts. Technology Solutions (TS) – The TS segment generates revenue by reselling third-party computer hardware, software, and related support/maintenance/warranty as a value-added reseller (“VAR”). The TS segment generates service revenues by the delivery of professional services for complex IT solutions, including advanced security; unified communications and collaboration; wireless and mobility; data center solutions; and network solutions as well as managed IT services that primarily serve the small and mid-sized business market. TS has two divisions – United Kingdom and U.S. which are displayed separately and in total below. The U.S. division, located in Boca Raton, Florida, primarily has U.S. customers and the United Kingdom division, located in Wokingham, Berkshire, primarily has U.K. customers as well as other European countries. The factors used in identifying the Company’s reportable segments include geographical location of operations and the types of products and services. The accounting policies of the Company's segments are consistent with those described in Note 1 Basis of presentation and Summary of Significant Accounting Policies of the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2025. All intercompany revenues are eliminated in consolidation and are not reviewed when evaluating segment performance. The Company's Chief Operating Decision Maker (“CODM”) Victor Dellovo, Chief Executive Officer, assesses segment performance and allocates resources based upon revenues and operating income before certain other nonroutine items, if any. Asset information utilized by the CODM for purposes of assessing performance and allocating resources includes Cash and cash equivalents, Accounts receivable, and Financing receivables. Cash and cash equivalents are utilized due to the HPP segment incurring losses and receiving cash from the TS-US division. Accounts and Financing receivables are regularly provided to the CODM to assess customer trends, credit policies, and operational efficiency. The following tables presents certain operating segment information. | | | | | | | | | | | | | | | | | | | | | Technology Solutions Segment | | | | | | High | | | | | | | | | | | | | | | Performance | | | | | | | | | | | | | | | Products | | United | | | | | | | | Consolidated | Three months ended June 30, | | Segment | | Kingdom | | U.S. | | Total | | Total | | | | (Amounts in thousands) | 2026 | | | | | | | | | | | | | | | | Sales: | | | | | | | | | | | | | | | | Product | | $ | 148 | | $ | 14 | | $ | 9,781 | | $ | 9,795 | | $ | 9,943 | Service | | | 275 | | | 14 | | | 4,166 | | | 4,180 | | | 4,455 | Total sales | | | 423 | | | 28 | | | 13,947 | | | 13,975 | | | 14,398 | Cost of sales: | | | | | | | | | | | | | | | | Product | | | 40 | | | 14 | | | 7,836 | | | 7,850 | | | 7,890 | Services | | | 167 | | | — | | | 2,008 | | | 2,008 | | | 2,175 | Total cost of sales | | | 207 | | | 14 | | | 9,844 | | | 9,858 | | | 10,065 | Gross profit | | | 216 | | | 14 | | | 4,103 | | | 4,117 | | | 4,333 | Research and development | | | 832 | | | — | | | — | | | — | | | 832 | Selling, general and administrative | | | 1,062 | | | 313 | | | 3,668 | | | 3,981 | | | 5,043 | Total operating expenses | | | 1,894 | | | 313 | | | 3,668 | | | 3,981 | | | 5,875 | Operating (loss) income | | $ | (1,678) | | $ | (299) | | $ | 435 | | $ | 136 | | $ | (1,542) | | | | | | | | | | | | | | | | | Interest expense | | $ | (4) | | $ | — | | $ | (178) | | $ | (178) | | $ | (182) | Interest income | | $ | 2 | | $ | 33 | | $ | 489 | | $ | 522 | | $ | 524 | Depreciation and amortization | | $ | (3) | | $ | — | | $ | (33) | | $ | (33) | | $ | (36) | Cash and cash equivalents | | $ | 124 | | $ | 5,069 | | $ | 19,473 | | $ | 24,542 | | $ | 24,666 | Accounts receivable, net of allowance | | $ | 120 | | $ | 72 | | $ | 11,164 | | $ | 11,236 | | $ | 11,356 | Financing receivables, net of allowance | | $ | — | | $ | — | | $ | 16,543 | | $ | 16,543 | | $ | 16,543 | Total assets | | $ | 12,236 | | $ | 5,234 | | $ | 53,311 | | $ | 58,545 | | $ | 70,781 | Capital expenditures | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | | | | | | | | | | | | | | | | 2025 | | | | | | | | | | | | | | | | Sales: | | | | | | | | | | | | | | | | Product | | $ | 12 | | $ | 50 | | $ | 10,088 | | $ | 10,138 | | $ | 10,150 | Service | | | 372 | | | 111 | | | 4,815 | | | 4,926 | | | 5,298 | Total sales | | | 384 | | | 161 | | | 14,903 | | | 15,064 | | | 15,448 | Cost of sales: | | | | | | | | | | | | | | | | Product | | | 44 | | | 48 | | | 8,461 | | | 8,509 | | | 8,553 | Services | | | 216 | | | 21 | | | 2,205 | | | 2,226 | | | 2,442 | Total cost of sales | | | 260 | | | 69 | | | 10,666 | | | 10,735 | | | 10,995 | Gross profit | | | 124 | | | 92 | | | 4,237 | | | 4,329 | | | 4,453 | Research and development | | | 791 | | | — | | | — | | | — | | | 791 | Selling, general and administrative | | | 1,162 | | | 164 | | | 3,559 | | | 3,723 | | | 4,885 | Total operating expenses | | | 1,953 | | | 164 | | | 3,559 | | | 3,723 | | | 5,676 | Operating (loss) income | | $ | (1,829) | | $ | (72) | | $ | 678 | | $ | 606 | | $ | (1,223) | | | | | | | | | | | | | | | | | Interest expense | | $ | (3) | | $ | — | | $ | (102) | | $ | (102) | | $ | (105) | Interest income | | $ | 10 | | $ | 42 | | $ | 388 | | $ | 430 | | $ | 440 | Depreciation and amortization | | $ | (18) | | $ | — | | $ | (47) | | $ | (47) | | $ | (65) | Cash and cash equivalents | | $ | 48 | | $ | 3,881 | | $ | 22,379 | | $ | 26,260 | | $ | 26,308 | Accounts receivable, net of allowance | | $ | 177 | | $ | 1,043 | | $ | 12,233 | | $ | 13,276 | | $ | 13,453 | Financing receivables, net of allowance | | $ | — | | $ | — | | $ | 6,938 | | $ | 6,938 | | $ | 6,938 | Total assets | | $ | 11,488 | | $ | 8,302 | | $ | 46,994 | | $ | 55,296 | | $ | 66,784 | Capital expenditures | | $ | (10) | | $ | — | | $ | (56) | | $ | (56) | | $ | (66) |
| | | | | | | | | | | | | | | | | | | | | Technology Solutions Segment | | | | | | High | | | | | | | | | | | | | | | Performance | | | | | | | | | | | | | | | Products | | United | | | | | | | | Consolidated | Nine months ended June 30, | | Segment | | Kingdom | | U.S. | | Total | | Total | | | | (Amounts in thousands) | 2026 | | | | | | | | | | | | | | | | Sales: | | | | | | | | | | | | | | | | Product | | $ | 421 | | $ | 83 | | $ | 27,253 | | $ | 27,336 | | $ | 27,757 | Service | | | 1,203 | | | 55 | | | 13,431 | | | 13,486 | | | 14,689 | Total sales | | | 1,624 | | | 138 | | | 40,684 | | | 40,822 | | | 42,446 | Cost of sales: | | | | | | | | | | | | | | | | Product | | | 56 | | | 65 | | | 22,449 | | | 22,514 | | | 22,570 | Services | | | 560 | | | — | | | 5,776 | | | 5,776 | | | 6,336 | Total cost of sales | | | 616 | | | 65 | | | 28,225 | | | 28,290 | | | 28,906 | Gross profit | | | 1,008 | | | 73 | | | 12,459 | | | 12,532 | | | 13,540 | Research and development | | | 2,508 | | | — | | | — | | | — | | | 2,508 | Selling, general and administrative | | | 3,139 | | | 513 | | | 9,885 | | | 10,398 | | | 13,537 | Total operating expenses | | | 5,647 | | | 513 | | | 9,885 | | | 10,398 | | | 16,045 | Operating (loss) income | | $ | (4,639) | | $ | (440) | | $ | 2,574 | | $ | 2,134 | | $ | (2,505) | | | | | | | | | | | | | | | | | Interest expense | | $ | (11) | | $ | — | | $ | (466) | | $ | (466) | | $ | (477) | Interest income | | $ | 3 | | $ | 101 | | $ | 1,548 | | $ | 1,649 | | $ | 1,652 | Depreciation and amortization | | $ | (39) | | $ | — | | $ | (127) | | $ | (127) | | $ | (166) | Cash and cash equivalents | | $ | 124 | | $ | 5,069 | | $ | 19,473 | | $ | 24,542 | | $ | 24,666 | Accounts receivable, net of allowance | | $ | 120 | | $ | 72 | | $ | 11,164 | | $ | 11,236 | | $ | 11,356 | Financing receivables, net of allowance | | $ | — | | $ | — | | $ | 16,543 | | $ | 16,543 | | $ | 16,543 | Total assets | | $ | 12,236 | | $ | 5,234 | | $ | 53,311 | | $ | 58,545 | | $ | 70,781 | Capital expenditures | | $ | (3) | | $ | — | | $ | (116) | | $ | (116) | | $ | (119) | | | | | | | | | | | | | | | | | 2025 | | | | | | | | | | | | | | | | Sales: | | | | | | | | | | | | | | | | Product | | $ | 367 | | $ | 600 | | $ | 28,750 | | $ | 29,350 | | $ | 29,717 | Service | | | 1,094 | | | 220 | | | 13,234 | | | 13,454 | | | 14,548 | Total sales | | | 1,461 | | | 820 | | | 41,984 | | | 42,804 | | | 44,265 | Cost of sales: | | | | | | | | | | | | | | | | Product | | | 167 | | | 552 | | | 23,832 | | | 24,384 | | | 24,551 | Services | | | 584 | | | 70 | | | 5,836 | | | 5,906 | | | 6,490 | Total cost of sales | | | 751 | | | 622 | | | 29,668 | | | 30,290 | | | 31,041 | Gross profit | | | 710 | | | 198 | | | 12,316 | | | 12,514 | | | 13,224 | Research and development | | | 2,340 | | | — | | | — | | | — | | | 2,340 | Selling, general and administrative | | | 3,439 | | | 385 | | | 9,631 | | | 10,016 | | | 13,455 | Total operating expenses | | | 5,779 | | | 385 | | | 9,631 | | | 10,016 | | | 15,795 | Operating (loss) income | | $ | (5,069) | | $ | (187) | | $ | 2,685 | | $ | 2,498 | | $ | (2,571) | | | | | | | | | | | | | | | | | Interest expense | | $ | (8) | | $ | — | | $ | (251) | | $ | (251) | | $ | (259) | Interest income | | $ | 12 | | $ | 134 | | $ | 1,197 | | $ | 1,331 | | $ | 1,343 | Depreciation and amortization | | $ | (56) | | $ | — | | $ | (131) | | $ | (131) | | $ | (187) | Cash and cash equivalents | | $ | 48 | | | 3,881 | | | 22,379 | | $ | 26,260 | | $ | 26,308 | Accounts receivable, net of allowance | | $ | 177 | | | 1,043 | | | 12,233 | | $ | 13,276 | | $ | 13,453 | Financing receivables, net of allowance | | $ | — | | | — | | | 6,938 | | $ | 6,938 | | $ | 6,938 | Total assets | | $ | 11,488 | | $ | 8,302 | | $ | 46,994 | | $ | 55,296 | | $ | 66,784 | Capital expenditures | | $ | (13) | | $ | — | | $ | (107) | | $ | (107) | | $ | (120) |
Depreciation and amortization are included in Selling, general, and administrative expenses. Operating (loss) income is not affected by either non-operating charges/income or by income taxes. Non-operating charges/income consists principally of foreign exchange gain (loss), interest income, and interest expense. Our long-lived assets are located in the United States. Concentrations of Credit Risk All customers below are in the U.S. division of our TS segment. Each customer’s letter (e.g. “Customer E”) does not change meaning if Customer E is in multiple tables, it is the same customer. Below are customers with 10% or more of accounts receivable as of June 30, 2026 or September 30, 2025. | | | | | | | | | | | | | | | As of June 30, 2026 | | | As of September 30, 2025 | | | | | (Amounts in millions) | | | | | | % of Total | | | | | % of Total | | | | Accounts receivable | | Accounts receivable | | Accounts receivable | | Accounts receivable | | | | | | | | | | | | | | Customer A | | $ | 1.1 | | 10 | % | | $ | — | | - | % |
Below are customers with 10% or more of financing receivables as of June 30, 2026 or September 30, 2025. | | | | | | | | | | | | | | | As of June 30, 2026 | | | As of September 30, 2025 | | | | | (Amounts in millions) | | | | | | % of Total | | | | | % of Total | | | | Financing Receivables | | Financing Receivables | | Financing Receivables | | Financing Receivables | | | | | | | | | | | | | | Customer E | | $ | 2.4 | | 15 | % | | $ | 0.8 | | 5 | % | Customer B | | $ | 2.9 | | 18 | % | | $ | 5.9 | | 40 | % | Customer C | | $ | 2.2 | | 13 | % | | $ | 0.2 | | 1 | % | Customer D | | $ | 2.5 | | 15 | % | | $ | 2.8 | | 19 | % | Customer G | | $ | 0.9 | | 5 | % | | $ | 1.6 | | 11 | % |
The following table lists customers from which the Company derived revenues of 10% or more of total revenues for the three and nine months ended June 30, 2026 and 2025. | | | | | | | | | | | | | | | | | | | | | | | | | | | Three months ended June 30, | | | Nine months ended June 30, | | | | 2026 | | | 2025 | | | 2026 | | | 2025 | | | | | (Amounts in millions) | | | (Amounts in millions) | | | | Customer | | % of Total | | | Customer | | % of Total | | | Customer | | % of Total | | | Customer | | % of Total | | | | Revenues | | Revenues | | | Revenues | | Revenues | | | Revenues | | Revenues | | | Revenues | | Revenues | | | | | (Amounts in millions) | | Customer E | | $ | 0.8 | | 6 | % | | $ | — | | - | % | | $ | 4.1 | | 10 | % | | $ | — | | - | % | Customer F | | $ | — | | - | % | | $ | 2.3 | | 15 | % | | $ | — | | - | % | | $ | 3.4 | | 8 | % |
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