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Segment Reporting and Geographic Information

12 Months Ended

Dec. 31, 2018

Segment Reporting [Abstract]

Segment Reporting and Geographic Information

NOTE 16—SEGMENT REPORTING AND GEOGRAPHIC INFORMATION

(a) General Information

As of December 31, 2018, the Company operates in two reportable operating segments, both of which are performed though the Company’s OmniMetrix subsidiary:

	●	The PG segment provides wireless remote monitoring and control systems and services for critical assets as well as Internet of Things applications.

	●	The CP segment provides for remote monitoring of cathodic protection systems on gas pipelines for gas utilities and pipeline companies.

The Company’s reportable segments are strategic business units, offering different products and services and are managed separately as each business requires different technology and marketing strategies.

(b) Information about Profit or Loss and Assets

The accounting policies of all the segments are those described in the summary of significant accounting policies. The Company evaluates performance based on net income or loss before taxes.

The Company does not systematically allocate assets to the divisions of the subsidiaries constituting its consolidated group, unless the division constitutes a significant operation. Accordingly, where a division of a subsidiary constitutes a segment that does not meet the quantitative thresholds of applicable accounting principles, depreciation expense is recorded against the operations of such segment, without allocating the related depreciable assets to that segment. However, where a division of a subsidiary constitutes a segment that does meet the quantitative thresholds, related depreciable assets, along with other identifiable assets, are allocated to such division.

The following tables represent segmented data for the years ended December 31, 2018 and 2017. The Company does not currently break out total assets by reportable segment as there is a high level of shared utilization between the segments. Further, the Chief Decision Maker (CDM) does not review the assets by segment.

		PG				CP				Total
Year ended December 31, 2018:
Revenues from external customers		$	3,656			$	1,431			$	5,087
Intersegment revenues			—				—				—
Segment gross profit			2,524				598				3,122
Depreciation and amortization			48				18				66
Segment income (loss) before income taxes			117				(323	)			(206	)

Year ended December 31, 2017:
Revenues from external customers		$	3,355			$	995			$	4,350
Intersegment revenues			—				—				—
Segment gross profit			2,017				430				2,447
Depreciation and amortization			58				17				75
Segment loss before income taxes			(531	)			(340	)			(871	)

The Company does not currently break out total assets by reportable segment as there is a high level of shared utilization between the segment. Also, the CDM does not review assets by segment.

(c) The following tables represent a reconciliation of the segment data to consolidated statement of operations and balance sheet data for the years ended and as of December 31, 2018 and 2017:

		Year ended December 31,
		2018				2017
Total net loss before income taxes for reportable segments		$	(206	)		$	(871	)
Other operational segment net loss before income taxes			—				—	)
Segment loss before income taxes			(206	)			(871	)
Loss on sale of interest in DSIT, net of transaction costs			(607	)			—
Unallocated net cost of corporate headquarters*			(1,274	)			(1,271	)
Consolidated net loss before taxes on income		$	(2,087	)		$	(2,142	)

* Includes $26 and $22 of stock compensation expense for the years ended December 31, 2018 and 2017, respectively. Also includes $26 and $107 of interest expense with respect to former director loans for the years ended December 31, 2018 and 2017, respectively.

		As of December 31,
		2018				2017
Assets:
Total assets for OmniMetrix subsidiary		$	2,823			$	2,931
Assets of corporate headquarters *			1,096				6,291
Total consolidated assets		$	3,919			$	9,222

* Includes the investment in DSIT of $5,800 at December 31, 2017.

Other Significant Items		Segment Totals				Adjustments				Consolidated Totals
Year ended December 31, 2018
Depreciation and amortization		$	66			$	—			$	66
Year ended December 31, 2017
Depreciation and amortization		$	75			$	—			$	75

		Year ended December 31,
		2018				2017
Revenues based on location of customer:
United States		$	5,087			$	4,327
Other			―				23
		$	5,087			$	4,350

All of the Company’s long-lived assets are located in the United States.

(d) Revenues and Accounts Receivable Balances from Major Customers

Customers are related to OmniMetrix’s CP segment.

		Revenue																Accounts Receivable**
		2018								2017								2018								2017
Customer		Balance				%				Balance				%				Balance				%				Balance				%
A			*				*				*				*			$	115				17	%			297				27

* Balance is not significant