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Segment Reporting and Geographic Information
 12 Months Ended
Dec. 31, 2020
Segment Reporting [Abstract]  
Segment Reporting and Geographic Information

NOTE 12—SEGMENT REPORTING AND GEOGRAPHIC INFORMATION

 

(a) General Information

 

As of December 31, 2020, 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, 2020 and 2019 (in thousands). 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, 2020:                        
Revenues from external customers   $ 4,988       934       5,922  
Intersegment revenues     —       —       —  
Segment gross profit     3,626       505       4,131  
Depreciation and amortization     19       3       22  
Segment income (loss) before income taxes     624       (75 )     549  
                         
Year ended December 31, 2019:                        
Revenues from external customers   $ 4,282     $ 1,208     $ 5,490  
Intersegment revenues     —       —       —  
Segment gross profit     3,030       560       3,590  
Depreciation and amortization     43       13       56  
Segment income (loss) before income taxes     353       (198 )     155  

 

(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, 2020 and 2019 (in thousands):

 

    Year ended
December 31,		  
    2020     2019  
Total net income before income taxes for reportable segments   $ 549     $ 155  
Gain on PPP loan extinguishment     421       —  
Gain on sale of interest in DSIT     —       50  
Unallocated net cost of corporate headquarters*     (894 )     (852 )
Consolidated net income (loss) before taxes on income   $ 76     $ (647 )

 

* Includes approximately $35,000 and $22,000 of stock compensation expense for the years ended December 31, 2020 and 2019, respectively.

 

    As of December 31,  
    2020     2019  
    (in thousands)  
Assets:            
Total assets for OmniMetrix subsidiary   $ 4,870     $ 3,965  
Assets of corporate headquarters     331       1,019  
Total consolidated assets   $ 5,201     $ 4,984  

 

 

   

Year ended

December 31,

  
    2020     2019  
Revenues based on location of customer (in thousands):            
United States   $ 5,887     $ 5,423  
Other     35       67  
    $ 5,922     $ 5,490  

 

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

 

(d) Revenues and Accounts Receivable Balances from Major Customers (in thousands):

 

    Invoiced Sales     Accounts Receivable  
    2020     2019     2020     2019  
Customer   Total     %     Total     %     Balance     %     Balance     %  
A   $ 776       13 %   $ 700       12 %   $ 124       20 %   $ 139       14 %
B     *       *       *       *       *       *     $ 172       18 %
C     *       *       *       *     $ 71       12 %     *       *  

 

* Balance is not significant.