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Note 12 - Segment Reporting
 9 Months Ended
Sep. 30, 2022
Notes to Financial Statements  
Segment Reporting Disclosure [Text Block]

NOTE 12:

SEGMENT REPORTING

 

The Company operates through three segments: CVD Equipment (“CVD”), Stainless Design Concepts (“SDC”) and CVD Materials (“Materials”). The CVD segment manufactures and sells chemical vapor deposition equipment. SDC is the Company’s ultra-high purity manufacturing division for gas control systems. The Materials segment provides material coatings for aerospace, medical, electronic and other applications. The Company evaluates performance based on several factors, of which the primary financial measure is income (loss) before taxes.

 

The Company’s corporate administration activities are reported in the “Eliminations and Unallocated” column. These activities primarily include expenses related to certain corporate officers and support staff, expenses related to the Company’s Board of Directors, stock option expense for shares granted to corporate administration employees, certain consulting expenses, investor and shareholder relations activities, and all of the Company’s legal, auditing and professional fees, and interest expense.

 

 

Elimination entries included in the “Eliminations and Unallocated” column represent intersegment revenues and cost of revenues that are eliminated in consolidation. Intersegment sales for the three months ended September 30, 2022 and 2021 by the SDC segment to the CVD Equipment segment were 72,409 and $6,882, respectively. Intersegment sales for the nine months ended September 30, 2022 and 2021 by the SDC segment to the CVD Equipment segment were $497,306 and $121,920, respectively.

 

Three months ended September 30,

(In thousands)

 

              

Eliminations

     

2022

 

CVD

  

SDC

  

Materials

  

and Unallocated

  

Consolidated

 

Assets

 $22,415  $8,800  $2,345  $42  $33,602 
                     

Revenue

  5,718   1,663   809   (71)  8,119 

Operating (loss) income

  (32)  448   365   (659)  122 

Pretax (loss) income

  (27)  448   258   (615)  64 
                     

2021

                    

Assets

 $27,248  $7,053  $1,655  $2  $35,958 
                     

Revenue

  2,074   1,326   937   (7)  4,330 

Operating (loss) income

  (911)  275   441   (727)  (922)

Pretax (loss) income

  (920)  275   7,373(1)  (727)  6,001 

 

Nine months ended September 30,

(In thousands)

 

              

Eliminations

     

2022

 

CVD

  

SDC

  

Materials

  

and Unallocated

  

Consolidated

 
                     

Revenue

  12,324   4,669   2,083   (497)  18,579 

Operating (loss) income

  (1,391)  1,117   642   (1,970)  (1,602)

Pretax (loss) income

  (1,380)  1,117   392   (1,903)  (1,772)
                     

2021

                    
                     

Revenue

  5,884   3,314   2,654   (122)  11,730 

Operating (loss) income

  (2,664)  637   828   (2,425)  (3,624)

Pretax (loss) income

  (259)(2)  637   8,014(1)  (2,425)  5,967 

 

 

(1)

Materials segment includes a gain on the sale of building in the amount of $6,894,109 for the nine months ended September 30, 2021.

 

 

(2)

CVD segment includes a gain on the forgiveness of the PPP loan for the nine months ended September 30, 2021.