OPERATING SEGMENTS

The Company manages and organizes its business in two distinct reportable segments: (i) modular building manufacturing and (ii) structural wall panel and wood foundation manufacturing, including building supply retail operations. The modular building manufacturing segment, through KBS, manufactures modular buildings for both single-family residential homes and larger, commercial building projects. The structural wall panel and wood foundation manufacturing segment (which also includes the building supply retail operations), manufactures structural wall panels for both residential and commercial projects as well as permanent wood foundation systems for residential homes, through the EdgeBuilder subsidiary, in addition to operating a local building supply retail operation through the Glenbrook subsidiary. The Company also has corporate level activities and expenditures which are not considered a reportable segment.

Each segments’ accounting policies are the same as those described in the summary of significant accounting policies (Note 3). There are no intersegment sales.

The Company’s reportable business segments are strategic business units that offer different products and services. Each segment is managed separately because they have different manufacturing processes and market to different customer bases, in geographically different markets.

The following table presents certain financial information regarding each reportable segment (in thousands):



	Modular Home Manufacturing						Structural Wall Panel Manufacturing						Total
December 31,	2018			2017			2018			2017			2018			2017
Segment net sales	$	16,907		$	24,229		$	17,570		$	16,324		$	34,477		$	40,553
Depreciation and amortization expense	538			504			201			399			739			903
Segment goodwill impairment expense	—			—			—			3,020			—			3,020
Interest expense, net	337			378			532			792			869			1,170
Segment net loss	(1,069		)	(1,948		)	(998		)	(4,166		)	(2,067		)	(6,114		)
Total segment assets	6,611			7,468			4,326			4,541			10,937			12,009
Expenditures for segment assets	12			405			109			38			121			443

Reconciliation of Segment Information

The following table presents the reconciliation of revenues (in thousands):



December 31,	2018		2017
Total net sales for reportable segments	$	34,477	$	40,553
Consolidated net sales	$	34,477	$	40,553

The following table presents the reconciliation of net loss (in thousands):



December 31,	2018			2017
Total net loss for reportable segments	$	(2,067	)	$	(6,114	)
Unallocated amounts:
Other corporate expenses	(1,327		)	(1,805		)
Interest expense	(128		)	(1,108		)
Change in fair value of contingent earn-out	6			361
Provision for income taxes	—			(11		)
Consolidated net loss	$	(3,516	)	$	(8,677	)

The following table presents the reconciliation of assets (in thousands):



December 31,	2018		2017
Total assets for reportable segments	$	10,937	$	12,009
Other assets	641		906
Consolidated assets	$	11,578	$	12,915

The following table presents the reconciliation other significant adjustments (in thousands):



	Segment Totals				Unallocated Amounts				Consolidated Totals
December 31,	2018		2017		2018		2017		2018		2017
Depreciation and amortization expense	$	739	$	903	$	—	$	—	$	739	$	903
Segment goodwill impairment expense	—		3,020		—		—		—		3,020
Interest expense	869		1,170		128		1,108		997		2,278

The unallocated amounts of to interest expense is the amount of interest incurred by the Company at the parent level, but not allocated to the operating segments. The other unallocated amounts reflect amounts incurred at the parent not allocated to the operating segments. None of the other adjustments are considered significant.