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SEGMENT REPORTING
 9 Months Ended
Sep. 30, 2021
Segment Reporting [Abstract]  
SEGMENT REPORTING

NOTE 8— SEGMENT REPORTING

 

As of September 30, 2021, 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 monitoring device for industrial air compressors and dryers, and a line of annunciators.
     
  ● The CP (Cathodic Protection) segment provides 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 and nine-month periods ended September 30, 2021 and 2020 (in thousands):

 

   PG   CP   Total 
Nine months ended September 30, 2021:               
Revenues from external customers  $4,283   $739   $5,022 
Segment gross profit   3,241    433    3,674 
Depreciation and amortization   48    8    56 
Segment income (loss) before income taxes  $774   $(15)  $759 
                
Nine months ended September 30, 2020:               
Revenues from external customers  $3,633   $690   $4,323 
Segment gross profit   2,656    365    3,021 
Depreciation and amortization   17    4    21 
Segment income (loss) before income taxes  $414   $(79)  $335 
                
Three months ended September 30, 2021:               
Revenues from external customers  $1,446   $260   $1,706 
Segment gross profit   1,091    151    1,242 
Depreciation and amortization   16    3    19 
Segment income (loss) before income taxes  $264   $2   $266 
                
Three months ended September 30, 2020:               
Revenues from external customers  $1,262   $255   $1,517 
Segment gross profit   936    141    1,077 
Depreciation and amortization   —    —    — 
Segment income (loss) before income taxes  $210   $(7)  $203 

 

 

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 does not review the assets by segment.

 

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

 

   2021   2020   2021   2020 
  

Nine months ended

September 30,

  

Three months ended

September 30,

 
   2021   2020   2021   2020 
Total net income before income taxes for reportable segments  $759   $335   $266   $203 
Unallocated cost of corporate headquarters   (708)   (682)   (241)   (234)
Consolidated net income (loss) before income taxes  $51   $(347)  $25   $(31)