Segment

3 Months Ended

Mar. 31, 2022

Segment Reporting [Abstract]

Segment

12. Segment

The Company reports segment information based on the “management” approach. The management approach designates the internal reporting used by management for making decisions and assessing performance as the source of the Company’s reportable segments.

The Company reported its financial performance based on the following segments: Gas-powered Boats, Franchise and Electric Boats.

The Company evaluates the performance of its reportable segments based on net sales and operating income. Net sales for business segments are generally based on the sale of boats and the sale of franchises. Operating income (loss) for each segment includes net sales to third parties, related cost of sales and operating expenses directly attributable to the segment. Operating income for each segment excludes other income and expense. The Company does not include intercompany transfers between segments for management reporting purposes.

The following table shows information by reportable segments for the three months ended March 31,2022 and 2021:

	Gas-Powered Boats			Franchise			Electric Boat and Development			Total
Net sales	$	5,887,032		$	(1,032	)	$	—		$	5,886,000
Cost of products sold		3,439,541			1,027			11,078			3,451,646
Operating expense		2,953,616			26,255			502,636			3,482,507
(Loss) from operations		(506,125	)		(28,314	)		(513,714	)		(1,048,153	)
Other loss		(120,353	)		(22,234	)		(577	)		(143,164	)
Net loss	$	(626,478	)	$	(50,548	)	$	(514,291	)	$	(1,191,317	)

	For the Three Months Ended March 31, 2021
	Gas-Powered Boats			Franchise		Electric Boat and Development		Total
Net sales	$	3,207,643		$	—	$	—	$	3,207,643
Cost of products sold		1,719,737			—		—		1,719,737
Operating expense		1,333,144			—		—		1,333,144
Income from operations		154,762			—		—		154,762
Other loss		(22,813	)		—		—		(22,813	)
Net income	$	131,949		$	—	$	—	$	131,949

Property and equipment, net classified by business were as follows:

	March 31,		December 31,
	2022		2021
Gas-Powered Boats	$	3,165,344	$	2,547,410
Franchise	$	—	$	100,196
Electric-Boats	$	267,698	$	235,565