Description of Capstone Green Energy Holdings Inc's Business Segments
The Company operates as a single reportable segment focused on the development, manufacture, sale, and rental of microturbine energy systems and related parts and services. The Chief Executive Officer, serving as the Chief Operating Decision Maker (CODM), evaluates performance and allocates resources on a consolidated basis using consolidated net income or loss in accordance with GAAP. Significant expenses reported to the CODM include Cost of Revenue—comprising direct materials, direct labor, manufacturing overhead, warranty costs, and service costs under Firm Price Purchase (FPP) and Long-Term Maintenance Agreement (LTMA) contracts—Research and Development expenses related to microturbine technology design and improvement, Selling, General and Administrative expenses covering salaries, benefits, commissions, marketing, occupancy, and corporate costs, as well as Non-Recurring Professional Expenses such as restructuring costs, financing fees, litigation and legal expenses, financial restatement costs, and SEC investigation expenses. The primary measure of segment profitability is consolidated net income or loss, with Fiscal 2026 reflecting a return to profitability following a net loss in Fiscal 2025. There are no intersegment sales or transfers within the consolidated entity, and the CODM does not assess the segment based on asset or liability information.
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