Company: AWRE
Filing Date: 2025-03-13
Form Type: 10-K
Source: 0000950170-25-038714
Chunk: 65

Company: AWARE INC /MA/
Filing Date: 2025-03-13
Form: 10-K
Item: Item 5
Chunk 65
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 operating decision maker (CODM), evaluates financial performance and allocates resources on a consolidated basis. In making operating decisions, management and the Board receive regular reporting on revenue, cost of revenue, operating expenses, and profitability metrics. The primary financial measures used to assess performance include revenue growth, gross margin, adjusted EBITDA, and operating income.  Significant expense categories reviewed by our CODM for our single operating segment include research and development, selling and marketing, and general and administrative expenses, as presented in our consolidated statement of operations.To determine our single reportable segment, we evaluated factors such as the nature of our products and services, customer base, distribution methods, and how the business is managed. Given that we provide a unified suite of biometric and identity solutions, serve a common customer base, and operate under a single management team with an integrated resource allocation strategy, we concluded that a single operating segment best represents how we manage the business.We do not allocate assets to individual business units or product lines for internal reporting purposes. Our CODM reviews the company’s assets on a consolidated basis, and as a result, we do not present segment asset information separately in our financial statements

42

We conduct our operations in the United States and sell our products and services to domestic and international customers.  Revenues were generated from the following geographic regions (in thousands):  

          Year endedDecember 31,

          2024

          2023

          United States
           
          $
          7,597

          $
          11,953

          United Kingdom

          4,720

          1,524

          Rest of world

          5,072

          4,767

          $
          17,389

          $
          18,244

         Revenue by product group was (in thousands): 

          Year endedDecember 31,

          2024

          2023

          License and service contracts
           
          $
          13,431

          $
          14,272

          Subscription-based contracts

          3,958

          3,972

          $
          17,389

          $
          18,244

        Revenue by product group consists of all revenue associated with a contract, including license revenue, maintenance revenue, and services and other revenue. Revenue may be recognized at a point in time or over time, depending on the nature of the underlying performance obligations. These revenues are attributable to contracts with fixed fees and those with guaranteed