Segment Information

6 Months Ended

Jun. 30, 2021

Segment Reporting [Abstract]

Segment Information

12. Segment Information

The Company operates in two business segments, Test and Measurement Instrumentation and Cryptocurrency. The Test and Measurement Instrumentation segment designs, manufactures, markets and services computer-based balancing systems for aircraft engines, high performance test and measurement instruments and systems, and wafer characterization tools for the semiconductor and solar industries. The Cryptocurrency segment is focused on cryptocurrency and the blockchain ecosystem. The Company’s principal operations in both segments are located in North America.

The accounting policies of the Test and Measurement Instrumentation and Cryptocurrency segments are similar to those described in the summary of significant accounting policies herein and in the Annual Report. The Company evaluates performance based on profit or loss from operations before income taxes, accounting changes, items management does not deem relevant to segment performance, and interest income and expense. Inter-segment sales and expenses are not significant.

Summarized financial information concerning the Company’s reportable segments is shown in the following table. The “Other” column includes corporate related items and items such as income taxes or unusual items, which are not allocated to reportable segments. In addition, segments’ non-cash items include any depreciation and amortization in reported profit or loss.

(Dollars in thousands)	Test and Measurement Instrumentation			Cryptocurrency			Other			Condensed Consolidated Totals
Three months ended June 30, 2021
Product revenue	$	1,647		$	—		$	—		$	1,647
Cryptocurrency revenue		—			1,657			—			1,657
Research and product development expenses		406			—			—			406
Selling, general and administrative expenses		526			292			2,212			3,030
Segment profit / (loss) from operations before income taxes		(270	)		710			(1,611	)		(1,171	)
Segment profit / (loss)		(270	)		710			(1,614	)		(1,174	)
Total assets		2,636			3,883			19,040			25,559
Capital expenditures		13			1,229			—			1,242
Depreciation and amortization		17			149			—			166
Three months ended June 30, 2020
Product revenue	$	2,390		$	—		$	—		$	2,390
Cryptocurrency revenue		—			50			—			50
Research and product development expenses		362			—			—			362
Selling, general and administrative expenses		437			109			301			847
Segment profit / (loss) from operations before income taxes		831			(73	)		(156	)		602
Segment profit / (loss)		831			(73	)		(156	)		602
Total assets		3,687			1,090			2,480			7,257
Capital expenditures		5			335			—			340
Depreciation and amortization		21			9			—			30
Six months ended June 30, 2021
Product revenue	$	2,984		$	—		$	—		$	2,984
Cryptocurrency revenue		—			2,652			—			2,652
Research and product development expenses		792			—			—			792
Selling, general and administrative expenses		1,066			855			2,946			4,867
Segment profit / (loss) from operations before income taxes		(672	)		771			(1,936	)		(1,837	)
Segment profit / (loss)		(672	)		771			(1,939	)		(1,840	)
Total assets		2,636			3,883			19,040			25,559
Capital expenditures		18			1,525			—			1,543
Depreciation and amortization		34			224			—			258
Six months ended June 30, 2020
Product revenue	$	3,973		$	—		$	—		$	3,973
Cryptocurrency revenue		—			50			—			50
Research and product development expenses		764			—			—			764
Selling, general and administrative expenses		853			180			609			1,642
Segment profit / (loss) from operations before income taxes		959			(144	)		(353	)		462
Segment profit / (loss)		959			(144	)		(350	)		465
Total assets		3,687			1,090			2,480			7,257
Capital expenditures		13			335			—			348
Depreciation and amortization		44			9			—			53

The following table presents the details of “Other” segment loss:

(Dollars in thousands)	Three Months Ended June 30,						Six Months Ended June 30,
	2021			2020			2021			2020
Corporate and other (expenses) income:
Salaries and Benefits	$	(1,279	)	$	(119	)	$	(1,480	)	$	(240	)
Income tax (expense) benefit		(3	)		—			(3	)		3
Other expense, net		(332	)		(37	)		(456	)		(113	)
Total income (expense)	$	(1,614	)	$	(156	)	$	(1,939	)	$	(350	)