Segment information

9 Months Ended

Sep. 30, 2014

Segment information [Text Block]

11. Segment information

(a)	Operating segments:
	The Company organizes its business into two reportable segments: manufacturing and servicing. The manufacturing segment designs, produces and sells intercom and door access control systems that utilize telecommunications to control access to buildings and other facilities for security purposes. The servicing segment provides maintenance to these intercom and door access control systems.
	Management evaluates performance based on profit or loss from operations before income taxes and nonrecurring gains and losses, if any. Retail prices are used to report intersegment sales.

For the three month ended September 30, 2014		Manufacturing			Servicing		Total
Sales to external customers	$	1,044,226		$	374,978	$	1,419,204
Depreciation and amortization		15,913			5,223		21,136
Segment income (loss) before other items		(324,480	)		80,248		(244,232	)
Total assets	$	2,106,063		$	10,447	$	2,116,510

For the three months ended September 30, 2013		Manufacturing			Servicing		Total
Sales to external customers	$	846,395		$	229,420	$	1,075,815
Depreciation and amortization		710			5,223		5,933
Segment income (loss) before other items		(381,189	)		64,371		(316,818	)
Total assets	$	1,033,616		$	52,231	$	1,085,847

For the nine month ended September 30, 2014		Manufacturing			Servicing		Total
Sales to external customers	$	2,842,222		$	870,018	$	3,712,240
Depreciation and amortization		20,668			15,669		36,337
Segment income (loss) before other items		(3,278,132	)		210,160		(3,488,292	)
Total assets	$	2,106,063		$	10,447	$	2,116,510

For the nine months ended September 30, 2013		Manufacturing			Servicing		Total
Sales to external customers	$	2,084,430		$	860,793	$	2,945,223
Depreciation and amortization		2,265			15,669		17,934
Segment income (loss) before other items		(1,142,204	)		275,619		(866,585	)
Total assets	$	1,256,121		$	31,339	$	1,287,460

(b)	Of the total sales for the nine months ended September 30, 2014, $947,821 (2013 - $322,496) was derived from U.S.-based customers and $2,764,419 (2013 - $2,338,321) from Canadian-based customers. Substantially all of the Company's operations, assets and employees are located in Canada.
(c)	Major customers:
	No customer represented more than 10% of total sales in either of the years presented.
(d)	Products:
	MESH sales represented 38.5% of total revenue during the nine months ended September 30, 2014 (2013 – 49.5%). FREEDOM sales represented 34.0% of total revenue during the nine months ended September 30, 2014 (2013 – 19.9%). The balance of the Company’s revenues are derived from other products such as access tracking and control, closed circuit monitors, infrared and radio frequency remotes and servicing of intercom equipment.