Segment Reporting

9 Months Ended

Sep. 30, 2014

Segment Reporting

Segment Reporting

Note 8 – Segment Reporting

ASC Topic 280, “Segment Reporting,” requires use of the “management approach” model for segment reporting. The management approach model is based on the way a company’s management organizes segments within the company for making operating decisions and assessing performance. The Company has two reportable segments:Optron and Overhoff. Optron is located in Canoga Park, California and Overhoff is located in Milford, Ohio.

The following tables summarize the Company’s segment information for the three and nine months ended September 30, 2014 and 2013:

			Three months ended September 30,				Nine months ended September 30,
			2014		2013		2014		2013
Sales
	Optron	$	145,734	$	137,557	$	330,698	$	720,885
	Overhoff		328,917		353,168		783,458		757,454
		$	474,651	$	490,725	$	1,114,156	$	1,478,339
Gross profit
	Optron	$	82,601	$	150,511	$	162,162	$	421,635
	Overhoff		148,295		78,823		364,726		316,482
		$	230,896	$	229,334	$	526,888	$	738,117
Loss from operations
	Optron	$	(132,577)	$	(194,891)	$	(480,167)	$	(322,950)
	Overhoff		33,502		(33,457)		(33,387)		(73,619)
		$	(99,075)	$	(228,348)	$	(513,554)	$	(396,569)
Other Income
	Optron	$	113,500	$	57,000	$	170,500	$	160,000
	Overhoff		-		-		-		-
		$	113,500	$	57,000	$	170,500	$	160,000
Interest Expenses
	Optron	$	938	$	938	$	2,794	$	2,602
	Overhoff		-		203		-		203
		$	938	$	1,141	$	2,794	$	2,805
Net income (loss)
	Optron	$	81,085	$	(138,829)	$	(211,361)	$	(165,552)
	Overhoff		(67,598)		(33,660)		(134,487)		(73,822)
		$	13,487	$	(172,489)	$	(345,848)	$	(239,374)

			September 30,		December 31,
			2014		2013
Total Assets
	Optron	$	1,137,950	$	952,092
	Overhoff		1,705,472		1,915,755
		$	2,843,422	$	2,867,847
Goodwill
	Optron	$	-	$
	Overhoff		570,176		570,176
		$	570,176	$	570,176