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Segment
 3 Months Ended
Mar. 31, 2024
Segment Reporting [Abstract]  
Segment

 15. Segment

 

The Company reports segment information based on the “management” approach. The management approach designates the internal reporting used by management for making decisions and assessing performance as the source of the Company’s reportable segments.

 

The Company reported its financial performance based on the following segments: Gas-powered Boats, Franchise and Electric Boats.

 

The Company evaluates the performance of its reportable segments based on net sales and operating income. Net sales for business segments are generally based on the sale of boats and the sale of franchises. Income (loss) from operations for each segment includes net sales to third parties, related cost of sales and operating expenses directly attributable to the segment. Operating income for each segment excludes other income and expenses. The Company does not include intercompany transfers between segments for management reporting purposes.

 

The following table shows information by reportable segments for the three months ended March 31, 2024 and 2023:

 

For the three months ended March 31, 2024

 

                    
   Gas-Powered Boats  Franchise  Electric Boat and
Development		  Total
Net sales  $5,276,343   $—   $—   $5,276,343 
Cost of products sold   4,969,458    —    29,572    4,999,030 
Operating expense   1,533,981    772    1,285,767    2,820,520 
Loss from operations   (1,227,096)   (772)   (1,315,339)   (2,543,207)
Other income (expense)   63,139    (2,629)   147,502    208,012 
Net income (loss)  $(1,163,957)  $(3,401)  $(1,167,837)  $(2,335,194)

  

For the three months ended March 31, 2023

 

                     
         Electric Boat and   
   Gas-Powered Boats  Franchise  Development  Total
Net sales  $8,877,215   $—   $—   $8,877,215 
Cost of products sold   7,217,716    —    49,941    7,267,657 
Operating expense   1,898,151    1,121    2,079,809    3,979,081 
Loss from operations   (238,652)   (1,121)   (2,129,750)   (2,369,523)
Other income (expense)   420,501    (4,062)   124,619    541,058 
Net income (loss)  $181,849   $(5,183)  $(2,005,131)  $(1,828,465)

 

Property and equipment, net, classified by business were as follows:

 

          
   March 31,  December 31,
   2024  2023
Gas-Powered Boats  $8,907,117   $8,825,027 
Franchise  $—   $— 
Electric-Boats  $4,984,213   $3,468,961