Business Segments and Geographic Area Information

12 Months Ended

Dec. 31, 2015

Segment Reporting [Abstract]

Business Segments and Geographic Area Information

Business Segments and Geographic Area Information.

Business Segments

The Company is a leading United States based manufacturer and global supplier operating two segments: Foam and Coatings. The Company’s segments are organized based on manufacturing competencies.

Foam. The Foam segment primarily supplies both roofing and building envelope insulation applications. Roofing applications consist of foam and coatings systems in new and retrofit commercial and industrial applications. Insulation is used in commercial and industrial, as well as residential, applications. We manufacture our own roofing and wall insulation foams. Additionally, this segment also supplies polyurethane as an adhesive for board stock insulation to roofing substrates for commercial and industrial applications, sundry items, and application equipment. Spray Rigs are an integral part of our business insofar that they are required for the application of our foam and used for large scale coating jobs. We began making and selling our own spray rigs during 2008. This is a basic assembly operation and we undertake this task to provide turnkey service to our customers. We allocate sales amounts for Spray Rigs to either our foam or coatings segments, as applicable.

Coatings. The Coatings segment primarily supplies a variety of protective coatings for roofing systems for new and retrofit commercial and industrial applications, as well as residential, applications. Additionally, this segment also supplies caulking for general application in the construction industry, and sundry items. We manufacture our own roof coatings. The AirTight Division involves application of interior insulation foams that we produce and installation of other energy reducing products in multi-family properties by subcontractors hired by the Company on a limited basis. We allocate sales amounts for The AirTight Division to our foam segment.

The Company maintains centralized manufacturing and spray rig building operations in Houston, Texas. Each of the businesses in which the Company is engaged is highly competitive. However, diversification of products within these segments and national, including limited international, markets served tends to minimize the impact on the Company’s total sales and earnings of changes in demand for a particular product. The accounting policies of the segments are the same as those described in the summary of significant accounting policies in Note 1. The Company allocates resources to segments and evaluates the performance of segments based upon reported segment income before income taxes. A substantial amount of administrative expenses are allocated to the segments. The portion not allocated to the segments represents the unallocated cost of certain corporate expenses and are included in Unallocated Amounts. There are no intersegment sales or transfers. The following are selected results of reportable segments:

Note 19. Business Segments and Geographic Area Information – continued.

Segments
2015	Foam		Coatings		Totals
Sales	$	66,029,544	$	12,619,785	$	78,649,329
Depreciation	110,159		21,054		131,213
Amortization of Other Intangible Assets	214,714		41,037		255,751
Interest Expense	955,185		182,558		1,137,743
Segment Profit	4,514,488		1,814,525		6,329,013
Segment Assets (1)	19,340,580		4,371,971		23,712,551
Expenditures for Segment Assets	$	47,921	$	9,038	$	56,959
2014	Foam		Coatings		Totals
Sales	$	62,477,449	$	9,587,566	$	72,065,015
Depreciation	129,752		19,911		149,663
Amortization of Other Intangible Assets	217,558		33,386		250,944
Interest Expense	945,571		145,104		1,090,675
Segment Profit	1,265,026		941,743		2,206,769
Segment Assets (1)	18,477,410		3,665,095		22,142,505
Expenditures for Segment Assets	$	179,626	$	27,565	$	207,191

The following are reconciliations of reportable segment profit or loss, and assets, to the Company’s totals for the years indicated: 

Segments Profit
	2015			2014
Total Profit for Reportable Segments	$	6,329,013		$	2,206,769
Unallocated Amounts:
Corporate Expenses	(6,905,894		)	(5,867,718		)
Loss Before Income Taxes	$	(576,881	)	$	(3,660,949	)

Assets	2015		2014
Total Assets for Reportable Segments (1)	$	23,712,551	$	22,142,505
Other Unallocated Amounts (2)	2,414,217		355,550
Total	$	26,126,768	$	22,498,055

⁽¹⁾Segment assets are the total assets used in the operation of each segment.

⁽²⁾Includes corporate assets which are principally cash and prepaid expenses.

Geographic Area Information

The Company does not operate any manufacturing sites nor maintain a permanent establishment in any particular country outside of the United States at this time. The Company’s products are sold to independent distributors globally for select target markets. Sales are attributed to geographic areas based on customer location. Long-lived assets are attributable to geographic areas based on asset location.

Geographic Area
	United						Rest of
2015	States		Europe		Middle East		World		Total
Sales	$	76,589,379	$	687,483	$	—	$	1,372,467	$	78,649,329
Long-Lived Assets	$	23,712,551	$	—	$	—	$	—	$	23,712,551
	United						Rest of
2014	States		Europe		Middle East		World		Total
Sales	$	69,746,725	$	665,365	$	3,505	$	1,649,420	$	72,065,015
Long-Lived Assets	$	22,142,505	$	—	$	—	$	—	$	22,142,505