NOTE

– SEGMENT INFORMATION

In its operation of the business, management reviews certain financial information, including segmented internal profit and loss statements prepared on a basis consistent with U.S. GAAP. Our

two

segments are Power Supplies and Data Storage. The

two

segments discussed in this analysis are presented in the way we internally manage and monitor performance for the

three

and

nine

months ended

September 30, 2019

and

2018.

Our allocations of internal resources were made to the

two

business segments for the

three

and

nine

months ended

September 30, 2019

and

2018.

The types of products and services provided by each segment are summarized below:

Power Supplies

— The Company designs and markets high-efficiency switching power supplies. We utilize contract manufacturers in Asia to produce the power supply products. These power supplies are used to convert AC line voltage to DC voltages, or DC voltages to other DC voltages for use in a wide variety of electronic equipment such as communications equipment, industrial machine tools, wireless systems, as well as medical and gaming devices. We sell our products globally through authorized resellers and directly to original equipment manufacturers (“OEMs”).

Storage

— The data storage industry is experiencing a tremendous increase in newly generated digital data due to Rich Media Content, Internet of Things, Data Mining and the Cloud. Tape based storage solution providers enable businesses to manage the massive growth of digital data assets in a cost-effective manner. Our tape-based data storage product lines address long-term archive, backup and recovery of electronic data. These products consist of networked libraries that store and move high-density tape cartridges and high-speed tape drives that stream data to and from the tape cartridges. These optimized solutions allow the video centric markets such as media and entertainment, oil and gas, surveillance, digital security and medical imaging to achieve targeted data workflows.

Segment revenue, income before taxes and total assets were as follows (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	201 9		201 8		201 9		201 8
Revenue
Power Supplies	$	1,450	$	1,612	$	4,117	$	4,598
Storage:
Product		1,148		789		3,060		1,973
Service		1,105		753		2,821		2,749
Total storage	$	2,253	$	1,542	$	5,881	$	4,722
Revenue	$	3,703	$	3,154	$	9,998	$	9,320

	Three Months Ended September 30,					Nine Months Ended September 30,
	2019			2018		2019			2018
Income (Loss) before Taxes
Power Supplies	$	(141	)	$	164	$	(497	)	$	181
Storage		190			241		676			1,288
Income (loss) before taxes	$	49		$	405	$	179		$	1,469

	September 30, 201 9		December 31, 201 8
Total Assets	( unaudited )
Power Supplies
Cash and cash equivalents	$	285	$	381
Accounts receivable, net		948		1,048
Inventories, net		1,261		1,576
Property and equipment, net		12		47
Other assets		115		102
Total power supply assets		2,621		3,154
Storage
Cash and cash equivalents	$	3,986	$	4,400
Restricted cash		100		100
Accounts receivable, net		1,229		761
Inventories, net		1,467		1,321
Prepaid expenses and other current assets		240		168
Property and equipment, net		120		65
Other assets		762		29
Total storage assets		7,904		6,844
Total Assets	$	10,525	$	9,998