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SEGMENT REPORTING AND GEOGRAPHIC INFORMATION
 12 Months Ended
Dec. 31, 2022
Segment Reporting [Abstract]  
SEGMENT REPORTING AND GEOGRAPHIC INFORMATION

NOTE 11—SEGMENT REPORTING AND GEOGRAPHIC INFORMATION

 

(a) General Information

 

As of December 31, 2022, the Company continues to operate in two reportable operating segments, both of which are performed through 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 by the Chief Decision Maker (CDM) 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, 2022 and 2021 (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 CDM does not review the assets by segment.

 

   PG   CP   Total 
Year ended December 31, 2022:               
Revenues from customers  $5,894   $1,106   $7,000 
Segment gross profit   4,426    645    5,071 
Depreciation and amortization   103    19    122 
Segment income (loss) before income taxes   489    (107)   382 
                
Year ended December 31, 2021:               
Revenues from customers  $5,787   $989   $6,776 
Segment gross profit   4,328    571    4,899 
Depreciation and amortization   64    11    75 
Segment income (loss) before income taxes   963    (27)   936 

 

* The software impairment of $51,000 recorded during 2022 is not related to a specific segment and, thus, is not included in the “Segment income (loss) before income taxes” for the year ended December 31, 2022.

 

 

(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, 2022 and 2021 (in thousands):

 

   2022   2021 
  

Year ended

December 31,

 
   2022   2021 
Total net income before income taxes for reportable segments  $331   $921 
Unallocated net cost of corporate headquarters   (962)   (934)
Consolidated net loss before taxes on income  $(631)  $(13)

 

    2022     2021  
    As of December 31,  
    2022     2021  
Assets:                
Total assets for OmniMetrix subsidiary   $ 5,931     $ 5,938  
Assets of corporate headquarters     53       104  
Total consolidated assets   $ 5,984     $ 6,042  

 

    2022     2021  
   

Year ended

December 31,

  
    2022     2021  
Revenues based on location of customer:                
United States   $ 6,960     $ 6,729  
Other     40       47  
Revenues   $ 7,000     $ 6,776  

 

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  
    2022       2021     2022       2021  
Customer   Total     %       Total     %     Balance     %       Balance     %  
A   $       *       * %     $ *       * %   $ 72       12 %     $ *       * %

 

*   Balance is not significant.