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SEGMENT REPORTING
 6 Months Ended
Jun. 30, 2023
Segment Reporting [Abstract]  
SEGMENT REPORTING

NOTE 9— SEGMENT REPORTING

 

As of June 30, 2023, the Company operates in two reportable operating segments, both of which are performed through the Company’s OmniMetrix subsidiary:

 

  ● Power Generation (“PG”). OmniMetrix’s PG services provide wireless remote monitoring and control systems and IoT applications for residential and commercial/industrial power generation equipment. This includes OmniMetrix’s AIRGuard product, which remotely monitors and controls industrial air compressors and its Smart Annunciator product which is typically sold to commercial customers that require a visual representation of the generator’s status and has a touch-screen display that indicates the current state of that generator.
     
  ● Cathodic Protection (“CP”). OmniMetrix’s CP services provide remote monitoring and control products for cathodic protection systems on oil and gas pipelines serving the gas utilities market and pipeline operators. The CP product lineup includes solutions to remotely monitor and control rectifiers, test stations and bonds. OmniMetrix also offers the industry’s first RADTM (Remote AC Mitigation Disconnect) that mounts onto existing Solid-state Decouplers in the field and can remotely disconnect/connect these AC mitigation tools which can drastically reduce a company’s expense while increasing employee safety.

 

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 six-month and three-month periods ended June 30, 2023 and 2022 (in thousands):

 

   PG   CP   Total 
Six months ended June 30, 2023:               
Revenues from external customers  $3,196   $526   $3,722 
Segment gross profit   2,495    311    2,806 
Depreciation and amortization   65    11    76 
Segment income (loss) before income taxes  $530   $(40)  $490 
                
Six months ended June 30, 2022:               
Revenues from external customers  $2,825   $547   $3,372 
Segment gross profit   2,164    340    2,504 
Depreciation and amortization   41    8    49 
Segment income (loss) before income taxes*  $262   $(45)  $217 
                
Three months ended June 30, 2023:               
Revenues from external customers  $1,689   $284   $1,973 
Segment gross profit   1,316    174    1,490 
Depreciation and amortization   32    6    38 
Segment income before income taxes  $331   $8   $339 
                
Three months ended June 30, 2022:               
Revenues from external customers  $1,380   $241   $1,621 
Segment gross profit   1,091    155    1,246 
Depreciation and amortization   24    5    29 
Segment income (loss) before income taxes*  $73   $(24)  $49 

 

* Software impairment of $51,000 is not related to a specific segment and, thus, is not included in the “Segment income (loss) before income taxes” for the six and three months ended June 30, 2022.

 

 

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

 

   2023   2022   2023   2022 
  

Six months ended

June 30,

  

Three months ended

June 30,

 
   2023   2022   2023   2022 
Total net income before income taxes for reportable segments*  $490   $217   $339   $49 
Unallocated cost of corporate headquarters   (475)   (511)   (240)   (221)
Consolidated net income (loss) before income taxes  $15   $(294)  $99   $(172)

 

* Software impairment of $51,000 is not related to a specific segment and, thus, is not included in the “Total net income before income taxes for reportable segments” for the six and three months ended June 30, 2022.