XML 45 R18.htm IDEA: XBRL DOCUMENT v3.4.0.3
Segment Reporting
 3 Months Ended
Mar. 31, 2016
Segment Reporting [Abstract]  
Segment Reporting

NOTE 11—SEGMENT REPORTING

 

The Company currently operates in two reportable operating segments:

 

  ● Energy & Security Sonar Solutions. The Company provides sonar and acoustic related solutions for energy, defense and commercial markets with a focus on underwater site security for strategic energy installations and other advanced acoustic systems and real-time embedded hardware and software development and production through its DSIT Solutions Ltd. (“DSIT”) subsidiary. (See below)
     
  ● Power Generator Monitoring (“PGM”) (formerly known as Machine-to-Machine Critical Asset Monitoring & Control). The PGM segment provides wireless remote monitoring and control systems and services for critical assets as well as Internet of Things applications. These activities are performed through the Company’s OmniMetrix subsidiary.

 

Other operations include certain IT activities (protocol management software for cancer patients and billing software) and outsourced consulting activities performed by the Company’s DSIT subsidiary as well as Corrosion Protection Monitoring activities performed by the Company’s OmniMetrix subsidiary (for remote monitoring of cathodic protection systems on gas pipelines for gas utilities and pipeline companies) that do not meet the quantitative thresholds under applicable accounting principles.

 

Previously, the Company reported GridSense’s activities in its Smart Grid Distribution Automation segment which developed and produced fiber optic sensing systems for the energy and security markets. With the suspension of operations at GridSense (see Note 3(a)), its activities are reflected as discontinued operations.

 

Following the closing of the DSIT Transaction (see Note 12 – Subsequent Events), beginning with the Company’s second quarter 2016 report, the Company will no longer be consolidating the results of DSIT, but will be reporting on its investment in DSIT on the equity method. Accordingly, beginning with the Company’s second quarter 2016 report, the Company will no longer be reporting on the results of its Energy & Security Sonar Solutions segment.

 

    Energy & Security Sonar Solutions     PGM     Other     Total  
Three months ended March 31, 2016                                
Revenues from external customers   $ 3,582     $ 667     $ 512     $ 4,761  
Intersegment revenues     —       —       —          
Segment gross profit     1,133       333       165       1,631  
Depreciation and amortization     43       16       12       71  
Segment net income (loss) before income taxes     67       (239 )     (26 )     (198 )
                                 
Three months ended March 31, 2015                                
Revenues from external customers   $ 2,660     $ 553     $ 497     $ 3,710  
Intersegment revenues     —       —       —       —  
Segment gross profit     605       340       297       1,242  
Depreciation and amortization     45       18       11       74  
Segment net income (loss) before income taxes     (294 )     (278 )     105       (467 )

 

Reconciliation of Segment Income (Loss) to Consolidated Net Loss Before Income Taxes

 

    Three months ended March 31,  
    2015     2016  
Total net loss before income taxes for reportable segments   $ (572 )   $ (172 )
Other operational segment net income (loss) before income taxes     105       (26 )
Total segment net loss before income taxes     (467 )     (198 )
Unallocated cost of corporate headquarters*     (1,033 )     (1,419 )
Unallocated benefit (cost) of DSIT headquarters     10       (15 )
Consolidated loss before income taxes   $ (1,490 )   $ (1,632 )

 

* Includes stock compensation expense of $208 and $220 for the three month periods ended March 31, 2015 and 2016, respectively. The three month period ended March 31, 2016 also includes $460 of salary and associated costs and medical insurance associated with the resignation of Mr. Moore and $250 of interest expense to Leap Tide and directors.