SEGMENT INFORMATION

9 Months Ended

Sep. 30, 2015

Segment Reporting [Abstract]

SEGMENT INFORMATION

3. SEGMENT INFORMATION

The Company’s reportable segments are strategic business units that offer different products and services. The Company’s reportable segments are organized, managed and internally reported separately because each business requires different technology and marketing strategies. The Company currently has two operating segments, Nanotechnology and ViralProtec.  

The accounting policies of the segments are the same as those described in the summary of significant accounting policies of the Company.  The Company accounts for intersegment sales and transfers as if the sales or transfers were to third parties, that is, at current market prices. The Company relies on intersegment cooperation and management does not represent that these segments, if operated independently, would report the results contained herein.  For purposes of determining segment loss, corporate overhead is primarily included in Nanotechnology, other than direct expense of ViralProtec.  

A summary of the two segments is as follows:

Nanotechnology Research, development, production and marketing of its proprietary technologies relating to the treatment and separation of nanotubes from halloysite clay and the development of related commercial applications for cosmetics, health and beauty products and polymers, plastics and composites.

ViralProtec Distributor and reseller of personal protective equipment and supplies to protect medical workers from infection and contagious incidents.

Information concerning the Company’s operations by reportable segment for the three and nine months ended September 30, 2015 and 2014 are as follows:

	Nanotechnology						ViralProtec					Consolidated
	For the three months ended						For the three months ended					For the three months ended
	September 30, 2015			September 30, 2014			September 30, 2015			September 30, 2014		September 30, 2015			September 30, 2014
Revenue	$	24,371		$	89,600		$	9,760			—	$	34,131		$	89,600
Loss from operations	$	(53,472	)	$	(32,774	)	$	(52,303	)		—	$	(105,775	)	$	(32,774	)
Interest expense		(69,601	)		(50,362	)		—			—		(69,601	)		(50,362	)
Net loss (gain) on derivative liabilities		(48,751	)		52,977			—			—		(48,751	)		52,977
Gain on forgiveness and modification of debt		—			325,335			—			—		—			325,335
Gain on sale of equipment		50,000			—			—			—		50,000			—
Provision for reserve on receivable due from MJ Enterprises		—			(100,000)			—			—		—			(100,000)
Net income (loss)	$	(121,824	)	$	195,176		$	(52,303	)		—	$	(174,127	)	$	195,176

	Nanotechnology						ViralProtec					Consolidated
	For the nine months ended						For the nine months ended					For the nine months ended
	September 30, 2015			September 30, 2014			September 30, 2015			September 30, 2014		September 30, 2015			September 30, 2014
Revenue	$	131,652		$	135,774		$	91,969			—	$	223,621		$	135,774
(Loss) income from operations	$	(373,168	)	$	(310,469	)	$	(33,140	)		—	$	(406,308	)	$	(310,469	)
Interest expense		(201,229	)		(242,626	)		—			—		(201,229	)		(242,626	)
Net loss on derivative liabilities		(132,614	)		(337,132	)		—			—		(132,614	)		(337,132	)
Gain on forgiveness and modification of debt		7,900			4,032,608			—			—		7,900			4,032,608
Gain on sale of equipment		50,000			—			—			—		50,000			—
Provision for reserve on receivable due from MJ Enterprises		—			(100,000	)		—					—			(100,000	)
Net income (loss)	$	(649,111	)	$	3,042,381		$	(33,140	)		—	$	(682,251	)	$	3,042,381
Assets	$	32,817		$	145,113		$	115,520			—	$	148,337		$	145,113

Geographic Areas – The Company had no long-lived assets in any country other than the United States for any period presented. The Company had $10,200 in sales outside of the United States in the nine month ended September 30, 2015.

Major Customers – During the nine months ended September 30, 2015, the Company derived 64% of total revenue from one Nanotechnology customer and 11% from one ViralProtec customer. During the nine months ended September 30, 2014, the Company derived 93% of total revenue from one Nanotechnology customer.