Segment Reporting

3 Months Ended

Mar. 31, 2019

Segment Reporting [Abstract]

Segment Reporting

NOTE 6— SEGMENT REPORTING

As of March 31, 2019, the Company operates in two reportable operating segments, both of which are performed though the Company’s OmniMetrix subsidiary:

● The PG (Power Generation) segment provides wireless remote monitoring and control systems and services for critical assets as well as Internet of Things applications.

● The CP (Cathodic Protection) segment provides for remote monitoring of cathodic protection systems on gas pipelines for gas utilities and pipeline companies.

The Company’s reportable segments are strategic business units, offering different products and services and are managed separately as each business requires different technology and marketing strategies.

The following tables represent segmented data for the three-month periods ended March 31, 2019 and March 31, 2018:

	PG			CP			Total
Three months ended March 31, 2019:
Revenue from external customers	$	996		$	331		$	1,327
Intersegment revenue		—			—			—
Segment gross profit		686			135			821
Depreciation and amortization		20			7			27
Segment income (loss) before income taxes	$	23		$	(85	)	$	(62	)
Three months ended March 31, 2018:
Revenue from external customers	$	886		$	323		$	1,209
Intersegment revenue		—			—			—
Segment gross profit		589			156			745
Depreciation and amortization		12			5			17
Segment loss before income taxes	$	(22	)	$	(63	)	$	(85	)

The gross profit of the PG segment during the three months ended March 31, 2019 included a $30 accrual, which unfavorably impacted gross margin by 2%. The accrual was for an estimated payment of approximately $30 related to a long-term purchase commitment of what is now discontinued technology that has been replaced with upgraded technology. This adjustment is recorded in cost of sales – other.

The Company does not currently break out total assets by reportable segment as there is a high level of shared utilization between the segments. Further, the Chief Decision Maker (CDM) does not review the assets by segment.

Reconciliation of Segment Loss to Consolidated Net Loss Before Income Taxes

	Three months ended March 31,
	2019			2018
Total net loss before income taxes for reportable segments	$	(62	)	$	(85	)
Unallocated cost of corporate headquarters		(199	)		(335	)
Consolidated loss before income taxes	$	(261	)	$	(420	)