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Segment Reporting
 3 Months Ended
Mar. 31, 2020
Segment Reporting [Abstract]  
Segment Reporting

NOTE 8— SEGMENT REPORTING

 

As of March 31, 2020, 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 PG segment includes OmniMetrix’s air compressor monitoring device that provides performance monitoring on industrial air compressors and dryers.
     
  ● 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 three-month periods ended March 31, 2020 and March 31, 2019 (in thousands):

 

    PG     CP     Total  
Three months ended March 31, 2020:                        
Revenues from external customers   $ 1,109     $ 229     $ 1,338  
Segment gross profit     805       117       922  
Depreciation and amortization     13       3       16  
Segment income(loss) before income taxes   $ 5     $ (62 )   $ (57 )
                         
Three months ended March 31, 2019:                        
Revenues from external customers   $ 996     $ 331     $ 1,327  
Segment gross profit     686       135       821  
Depreciation and amortization     20       7       27  
Segment income (loss) before income taxes   $ 23     $ (85 )   $ (62 )

 

The gross profit of the PG segment during the three months ended March 31, 2019 included a $30,000 accrual, which unfavorably impacted gross margin by approximately 2%. The accrual was for an estimated payment of approximately $30,000 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

 

   

Three months ended

March 31,

  
    2020     2019  
Total net loss before income taxes for reportable segments   $ (57 )   $ (62 )
Unallocated cost of corporate headquarters     (227 )     (199 )
Consolidated loss before income taxes   $ (284 )   $ (261 )