Note 34 – Segmented Financial Information

The Company’s two reportable segments include OnSite Generation and Power Systems. Segmentation is based on the internal reporting and organizational structure, taking into account the different risk and income structures of the key products and production processes of the Company. Where applicable, corporate and other activities are reported separately as Corporate and Other. OnSite Generation includes the design, development, manufacture and sale of hydrogen generation products. Power Systems includes the design, development, manufacture and sale of fuel cell products

Financial information by reportable segment for the years ended December 31, 2018 and 2017 was as follows:



	OnSite		Power		Corporate
Year ended December 31, 2018	Generation		Systems		and Other		Total
Revenue transferred at a point in time	$	17,463	$	12,152	$	–	$	29,615
Revenue transferred over time		845		3,436		–		4,281
Revenues from external customers		18,308		15,588		–		33,896
Gross profit		2,648		6,077		–		8,725
Selling, general and administrative expenses		2,959		4,276		4,378		11,613
Research and product development expenses		2,927		4,495		64		7,486
Segment loss		(3,238)		(2,694)		(4,442)		(10,374)
Loss in joint venture		–		–		(1,637)		(1,637)
Interest expense, net		–		–		(1,469)		(1,469)
Foreign currency gains, net		–		–		144		144
Other finance gains, net		–		–		297		297
Loss before income taxes	$	(3,238)	$	(2,694)	$	(7,107)		(13,039)



	OnSite		Power		Corporate
Year ended December 31, 2017	Generation		Systems		and Other		Total
Revenue transferred at a point in time	$	24,385	$	19,393	$	–	$	43,778
Revenue transferred over time		883		3,454				4,337
Revenues from external customers		25,268		22,847		–		48,115
Gross profit		3,663		8,015		–		11,678
Selling, general and administrative expenses		3,381		4,321		5,924		13,626
Research and product development expenses		1,275		4,996		105		6,376
Segment loss		(993)		(1,302)		(6,029)		(8,324)
Loss in joint venture		–		–		(334)		(334)
Interest expense, net		–		–		(1,812)		(1,812)
Foreign currency gains, net		–		–		635		635
Other finance losses, net		–		–		(931)		(931)
Loss before income taxes	$	(993)	$	(1,302)	$	(8,471)		(10,766)

Revenue, cost of sales and selling, general and administrative expenses for the comparative year have been restated to reflect the retrospective application of IFRS 15 adopted effective January 1, 2018. See Note 5.

Balance sheet information by reportable segment at December 31, 2018 and 2017 was as follows:



	OnSite		Power		Corporate
At December 31, 2018	Generation		Systems		and Other		Total
Cash and cash equivalents and restricted cash	$	5,343	$	162	$	3,232	$	8,737
Trade and other receivables		1,949		4,779		–		6,728
Contract assets (current and non-current)		1,678		4,545		–		6,223
Inventories		6,324		10,850		–		17,174
Prepaid expenses		368		1,353		239		1,960
Investment in joint ventures		–		–		1,644		1,644
Property, plant and equipment		272		2,595		–		2,867
Goodwill and intangibles		4,427		10		154		4,591
Total Assets	$	20,361	$	24,294	$	5,269	$	49,924
Current liabilities	$	12,039	$	15,408	$	3,346	$	30,793
Non-current liabilities		1,180		3,575		3,415		8,170
Total Liabilities	$	13,219	$	18,983	$	6,761	$	38,963



	OnSite		Power		Corporate
At December 31, 2017	Generation		Systems		and Other		Total
Cash and cash equivalents and restricted cash	$	6,836	$	1,160	$	14,418	$	22,414
Trade and other receivables		4,936		3,800		–		8,736
Contract assets (current and non-current)		676		6,547		–		7,223
Inventories		8,045		7,003		–		15,048
Prepaid expenses		270		928		176		1,374
Investment in joint venture		–		–		2,797		2,797
Property, plant and equipment		329		3,545		–		3,874
Goodwill and intangibles		4,659		6		84		4,749
Total Assets	$	25,751	$	22,989	$	17,475	$	66,215
Current liabilities	$	11,400	$	14,538	$	4,356	$	30,294
Non-current liabilities		1,138		4,737		5,873		11,748
Total Liabilities	$	12,538	$	19,275	$	10,229	$	42,042

Assets and liabilities for the comparative year have been restated to reflect the retrospective application of IFRS 15 adopted effective January 1, 2018. See Note 5.

Property, plant and equipment are located in the following countries:



Year ended December 31,	2018		2017
Canada	$	2,497	$	3,371
Belgium		272		329
Germany		98		174
Total	$	2,867	$	3,874

Revenue from external customers by region was as follows:



Year ended December 31,	2018		2017
				Restated (Note 5)
Asia	$	12,514	$	24,120
European Union		10,891		16,917
North America		3,400		1,514
Eastern Europe		2,896		2,697
South and Central America		2,698		350
Africa		616		1,145
Middle East		456		1,037
Oceania and Caribbean		425		335
Total	$	33,896	$	48,115

Revenue by product type was as follows:

Year ended December 31,	2018		2017
				Restated (Note 5)
Sale of equipment	$	24,295	$	40,601
Spare parts and maintenance		6,267		5,662
Product development services		2,063		581
Exclusivity fees		1,271		1,271
Total revenues by product type	$	33,896	$	48,115

Revenue by market application was as follows:

Year ended December 31,	2018		2017
				Restated (Note 5)
Heavy duty motive	$	13,855	$	21,955
Back-up power		1,082		–
Technology solutions		1,397		850
Power to gas energy storage		1,086		8,069
Industrial hydrogen		14,259		16,578
Fueling stations		2,217		663
Total revenues by market application	$	33,896	$	48,115

Revenue for the largest customers as a percentage of the total revenue was as follows:


Year ended December 31,	2018		2017
First largest (Power segment)	13	%	21	%
Second largest (Power segment)	9	%	10	%
Third largest (Power segment)	5	%	8	%
Fourth largest (OnSite Generation segment)	5	%	7	%
All other customers	68	%	54	%
Total	100	%	100	%