Business Segments and Geographic Information

3 Months Ended

Mar. 31, 2013

Segment Reporting [Abstract]

Business Segments and Geographic Information

Business Segments and Geographic Information

Business Segments

We classify our business into three reporting segments: Fuel Storage & Vehicle Systems, Renewable Energy and Corporate. Due to our plan to dispose of Schneider Power within the next 12 months, the Renewable Energy business segment, consisting entirely of the operations of Schneider Power, is classified as discontinued operations (see Note 2).

The chief operating decision maker allocates resources and tracks performance by the reporting segments. We evaluate performance based on profit or loss from operations before interest, non-operating income and expenses, and income taxes.

Fuel Storage & Vehicle Systems Segment

Our Fuel Storage & Vehicle Systems segment is a leader in the development and production of compressed natural gas (CNG) fuel storage systems and the integration of alternative fuel vehicle system technologies including engine and vehicle control systems and drivetrains.

This segment designs and manufactures advanced light-weight CNG storage tanks and supplies these tanks, in addition to fully-integrated natural gas storage systems, to truck and automotive OEMs and aftermarket and OEM truck integrators. These high-pressure CNG and hydrogen storage tanks use advanced composite technology and are capable of storage at up to 10,000 psi. This segment's powertrain engineering, system integration, vehicle manufacturing, and assembly capabilities provides fast-to-market solutions to support the integration and production of natural gas fuel and storage systems, hybrid, fuel cell, and specialty vehicles, as well as modular, transportable hydrogen refueling stations.

Our Fuel Storage & Vehicle Systems segment generates revenues from two sources - product sales and contract revenues. Product sales are derived primarily from (i) the sale and installation of our alternative fuel (e.g. CNG and hydrogen) storage, delivery, and electronic control systems and (ii) the sale of transportable hydrogen refueling stations.

Our Fuel Storage & Vehicle Systems segment generates contract revenue by providing engineering design and support to OEMs and other customers, so that our fuel systems and advanced propulsion systems integrate and operate with our customer's CNG, hybrid or fuel cell applications. Contract revenue is also generated from customers in the aerospace industry, military and other governmental entities and agencies.

Research and development is expensed as incurred and is primarily related to the operations of the Fuel Storage & Vehicle Systems segment for each of the periods presented. Research and development expense includes both customer-funded research and development and internally-sponsored research and development. Customer-funded research and development consists primarily of expenses associated with contract revenue. These expenses include applications development costs in our Fuel Storage & Vehicle Systems segment that are funded under customer contracts.

Corporate Segment

The Corporate segment consists of general and administrative expenses incurred at the corporate level that are not directly attributable to the Fuel Storage & Vehicle Systems or Renewable Energy reporting segments. Corporate expenses consist primarily of personnel costs, share-based compensation costs and related general and administrative costs for executive, finance, legal, human resources, investor relations and our board of directors.

Geographic Information

Our long-lived assets as of March 31, 2013 are primarily based within facilities in Lake Forest and Irvine, California for our two continuing business segments and on two wind farms located in Ontario, Canada for our discontinued Renewable Energy segment. The Renewable Energy segment also owns land in Nova Scotia, Canada that could be developed as a renewable energy project.

Financial Information by Business Segment

Selected financial information of continuing operations by business segment is as follows:

	Three months ended March 31,
	2012			2013
Total Revenue
Fuel Storage & Vehicle Systems	$	5,905,304		$	4,407,257
Operating Income (Loss)
Fuel Storage & Vehicle Systems	$	(1,578,174	)	$	(1,918,880	)
Corporate	(2,457,161		)	(1,960,846		)
Total	$	(4,035,335	)	$	(3,879,726	)
Product Gross Profit
Fuel Storage & Vehicle Systems:
Net product sales	$	3,545,741		$	3,505,095
Cost of product sales	(2,506,879		)	(2,603,876		)
Gross profit	$	1,038,862		$	901,219
Capital Expenditures
Fuel Storage & Vehicle Systems	$	82,273		$	592,677
Corporate	582			—
Total	$	82,855		$	592,677
Depreciation
Fuel Storage & Vehicle Systems	$	253,827		$	244,287
Corporate	5,329			10,315
Total	$	259,156		$	254,602

Identifiable assets by reporting segment are as follows:

	December 31, 2012		March 31, 2013
Identifiable Assets
Fuel Storage & Vehicle Systems	$	22,488,400	$	24,244,419
Renewable Energy - Held for Sale	34,226,458		31,108,058
Corporate	4,546,502		3,048,929
	$	61,261,360	$	58,401,406