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SEGMENT REPORTING
 9 Months Ended
Sep. 30, 2023
Segment Reporting [Abstract]  
SEGMENT REPORTING

NOTE 10: SEGMENT REPORTING

 

The Company operates through three segments: CVD Equipment, Stainless Design Concepts (“SDC”) and CVD Materials. The CVD Equipment segment manufactures and sells chemical vapor deposition, physical vapor transport and similar equipment. The SDC segment designs and manufactures ultra-high purity gas and chemical delivery control systems. The CVD Materials segment provides material coatings for aerospace, medical, electronic and other applications and is not considered a core business of the Company. See Note 11 for the disposition of the Tantaline subsidiary and planned disposition of the MesoScribe subsidiary which comprise the CVD Materials segment. 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 “Corporate” 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 options and shares of restricted stock granted to corporate administration employees, certain consulting expenses, investor and shareholder relations activities, and all of the Company’s legal, auditing and professional fees.

 

Elimination entries included in the “Eliminations” column represent intersegment revenues and cost of revenues that are eliminated in consolidation. Intersegment sales by the SDC segment to the CVD Equipment segment for the three months ended September 30, 2023 and 2022 were $0.2 million and $72,000, respectively, and $0.6 million and $0.5 million for the nine months ended September 30, 2023 and 2022, respectively. Intersegment sales by the CVD Equipment segment to the SDC segment for the three months and nine months ended September 30, 2023 were $39,000 and $0.1 million, respectively. There were no intersegment sales by the CVD Equipment segment to the SDC segment in 2022.

 

 

NOTE 10: SEGMENT REPORTING (continued)

 

The following table presents certain information regarding the Company’s segments as of and for the three months ended September 30, 2023 and 2022 (in thousands):

 

2023

                        
   CVD Equipment  

SDC

  

CVD

Materials

  

 

Eliminations

  

 

Corporate

  

 

Consolidated

 
Assets  $32,915   $4,237   $177   $(102)  $-   $37,227 
                               
Revenue  $4,795   $1,572   $90   $(223)  $-   $6,234 
Operating (loss) income   (323)   436    (35)   (76)   (992)   (990)
Pretax (loss) income   (262)   434    (31)   (76)   (818)   (753)
Depreciation and amortization  $137   $12   $4   $-   $-   $153 
Purchase of property, plant & equipment
  $83   $-   $-   $-   $-   $83 

 

2022                        
   CVD Equipment   SDC  

CVD

Materials

   Eliminations   Corporate   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    257    -    (615)   63 
Depreciation and amortization  $107   $12   $17   $-   $-   $136 
Purchase of property, plant & equipment **  $610   $-   $-   $-   $-   $610 

 

**Includes $0.4 million of purchased equipment financed with a loan.

 

 

NOTE 10: SEGMENT REPORTING (continued)

 

The following table presents certain information regarding the Company’s segments as of and for the nine months ended September 30, 2023 and 2022 (in thousands):

 

2023                        
   CVD Equipment  

 

SDC

  

CVD

Materials

  

 

Eliminations

  

 

Corporate

  

 

Consolidated

 
                         
Revenue  $13,774   $5,679   $1,099   $(554)  $-   $19,998 
Operating (loss) income   (581)   1,430    (178)*   (104)   (2,977)   (2,410)
Pretax (loss) income   (518)   1,430    (126)*   (104)   (2,577)   (1,895)
Depreciation and amortization  $404   $36   $105   $-   $-   $545 
Purchase of property, plant & equipment
  $298   $10   $-   $-   $-   $308 

 

2022

                        
   CVD Equipment  

 

SDC

  

CVD

Materials

  

 

Eliminations

  

 

Corporate

  

 

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    394    -    (1,903)   (1,772)
Depreciation and amortization  $439   $37   $62   $-   $-   $538 
Purchase of property, plant & equipment **  $1,038   $2   $30   $-   $-   $   1,070 

 

*Includes loss on sale of Tantaline of $0.2 million and an impairment charge related to MesoScribe fixed assets of $0.1 million.

 

**Includes $0.4 million of purchased equipment financed with a loan.