XML 30 R13.htm IDEA: XBRL DOCUMENT

Segment Reporting

9 Months Ended

Sep. 30, 2019

Segment Reporting [Abstract]

Segment Reporting

NOTE 6— SEGMENT REPORTING

As of September 30, 2019, the Company operates in two reportable operating segments, both of which are performed through the Company’s OmniMetrix subsidiary:

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

	●	The CP (Cathodic Protection) 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.

The following tables represent segmented data for the nine- and three-month periods ended September 30, 2019 and September 30, 2018:

		PG				CP				Total
Nine months ended September 30, 2019:
Revenues from external customers		$	3,143			$	947			$	4,090
Segment gross profit			2,206				438				2,644
Depreciation and amortization			43				13				56
Segment income(loss) before income taxes		$	231			$	(160	)		$	71

Nine months ended September 30, 2018:
Revenues from external customers		$	2,698			$	1,078			$	3,776
Segment gross profit			1,847				465				2,312
Depreciation and amortization			35				14				49
Segment income (loss) before income taxes		$	47			$	(235	)		$	(188	)

Three months ended September 30, 2019:
Revenues from external customers		$	1,090			$	296			$	1,386
Segment gross profit			772				150				922
Depreciation and amortization			18				4				22
Segment income (loss) before income taxes		$	126			$	(26	)		$	100

Three months ended September 30, 2018:
Revenues from external customers		$	931			$	406			$	1,337
Segment gross profit			666				165				831
Depreciation and amortization			11				5				16
Segment income (loss) before income taxes		$	86			$	(80	)		$	6

The gross profit of the PG segment during the nine months ended September 30, 2019 included a $29 accrual, which unfavorably impacted gross margin by approximately 1%. The accrual was for an estimated payment of approximately $29 related to a long-term purchase commitment of what is now discontinued technology that has been replaced with upgraded technology. This adjustment is recorded in cost of sales – other.

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.

Reconciliation of Segment Loss to Consolidated Net Loss Before Income Taxes

		Nine months ended September 30,								Three months ended September 30,
		2019				2018				2019				2018
Total net income (loss) before income taxes for reportable segments		$	71			$	(188	)		$	100			$	6
Unallocated cost of corporate headquarters			(657	)			(1,030	)			(221	)			(233	)
Consolidated loss before income taxes		$	(586	)		$	(1,218	)		$	(121	)		$	(227	)