Quarterly report pursuant to Section 13 or 15(d)

Segment Reporting

v3.10.0.1
Segment Reporting
6 Months Ended
Jun. 30, 2018
Segment Reporting [Abstract]  
Segment Reporting Disclosure [Text Block]
Note 11 — Segment Reporting
 
The Company’s principal operating segments coincide with the types of products to be sold. The products from which revenues are derived are consistent with the reporting structure of the Company’s internal organization. The Company’s two reportable segments for the three and six months ended June 30, 2018 and 2017 were the SRM segment and the Fergco segment. Xspand incurs operating expenses related to the corporate level and these costs are not allocated to the
Company’s operating 
segments.
CB does not have any reportable operations. 
The Company’s chief operating decision-maker has been identified as the Chairman and CEO, who reviews operating results to make decisions about allocating resources and assessing performance for the entire Company. Segment information is presented based upon the Company’s management organization structure as of June 30, 2018 and the distinctive nature of each segment. Future changes to this internal financial structure may result in changes to the reportable segments disclosed. There are no inter-segment revenue transactions and, therefore, revenues are only to external customers.
 
Segment operating profit is determined based upon internal performance measures used by the chief operating decision-maker. The Company derives the segment results from its internal management reporting system. The accounting policies the Company uses to derive reportable segment results are the same as those used for external reporting purposes. Management measures the performance of each reportable segment based upon several metrics, including net revenues, gross profit and operating loss. Management uses these results to evaluate the performance of, and to assign resources to, each of the reportable segments. The Company manages certain operating expenses separately at the corporate level and does not allocate such expenses to the segments. Segment income from operations excludes interest income/expense and other income or expenses and income taxes according to how a particular reportable segment’s management is measured. Management does not consider impairment charges, and unallocated costs in measuring the performance of the reportable segments.
 
 
Segment information available with respect to these reportable business segments for the three and six months ended June 30, 2018 and 2017 was as follows:
 
 
 
For the Three Months

Ended June 30,
 
 
For the Six Months

Ended 
June 30,
 
 
 
2018
 
 
2017
 
 
2018
 
 
2017
 
Revenues:
 
 
 
 
 
 
 
 
 
 
 
 
Fergco
 
$
1,718,409
 
 
$
1,378,061
 
 
$
3,025,328
 
 
$
2,676,832
 
SRM
 
 
2,668,788
 
 
 
3,156,909
 
 
 
4,793,199
 
 
 
5,719,914
 
Total segment and consolidated revenues
 
$
4,387,197
 
 
$
4,534,970
 
 
$
7,818,527
 
 
$
8,396,746
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Gross profit:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fergco
 
$
500,285
 
 
$
352,295
 
 
$
860,722
 
 
$
705,441
 
SRM
 
 
762,691
 
 
 
897,232
 
 
 
1,504,590
 
 
 
1,608,190
 
Total segment and consolidated gross profit
 
$
1,262,976
 
 
$
1,249,527
 
 
$
2,365,312
 
 
$
2,313,631
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income (loss) from operations:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fergco
 
$
83,664
 
 
$
(90,426
)
 
$
141,258
 
 
$
(65,738
)
SRM
 
 
660,637
 
 
 
684,729
 
 
 
1,207,890
 
 
 
1,216,326
 
Corporate
 
 
(1,139,763
)
 
 
-
 
 
 
(3,195,011
)
 
 
-
 
Total segment and consolidated (loss) income from operations
 
$
(395,462
)
 
$
594,303
 
 
$
(1,845,863
)
 
$
1,150,588
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Depreciation and amortization:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fergco
 
$
27,767
 
 
$
34,086
 
 
$
55,534
 
 
$
68,172
 
SRM
 
 
11,864
 
 
 
17,381
 
 
 
23,728
 
 
 
34,762
 
Total segment depreciation and amortization
 
$
39,631
 
 
$
51,467
 
 
$
79,262
 
 
$
102,934
 
   
 
 
June 30,
 
 
December 
31,
 
 
 
2018
 
 
2017
 
Segment total assets:
 
 
 
 
 
 
 
 
Fergco
 
$
2,259,670
 
 
$
1,853,273
 
SRM
 
 
3,359,352
 
 
 
2,217,296
 
Corporate
 
 
4,019,748
 
 
 
258
 
Total segment and consolidated assets
 
$
9,638,770
 
 
$
4,070,827