SEGMENT INFORMATION

We operate in

two

segments: North America and International. Our reportable operating segments have been determined as separately identifiable business units, and we measure segment earnings as operating earnings, defined as income before interest and income taxes.

	North America			International			Total
For the quarter ended September 30 , 20 1 8
Net sales	$	18,046,045		$	841,054		$	18,887,099
Gross profit		11,383,738			463,095			11,846,833
Operating income (loss)		566,544			(251,100	)		315,444
Interest (expense)		(80,710	)		-			(80,710	)
Other income (expense), net		34,583			6,263			40,846
Income (loss) before income taxes		520,417			(244,837	)		275,580

Depreciation and amortization		407,841			23,948			431,789
Fixed asset additions		437,615			28,202			465,817
Total assets	$	72,009,096		$	4,656,654		$	76,665,750

For the quarter ended September 30 , 20 1 7
Net sales	$	17,421,013		$	967,368		$	18,388,381
Gross profit		11,037,486			597,845			11,635,331
Operating income (loss)		649,797			478			650,275
Interest (expense)		(53,141	)		-			(53,141	)
Other income (expense), net		94,196			1,740			95,936
Income (loss) before income taxes		690,852			2,218			693,070

Depreciation and amortization		513,250			23,876			537,126
Fixed asset additions		523,546			2,095			525,641
Total assets	$	70,083,363		$	4,288,478		$	74,371,841

	North America			International			Total
For the nine months ended September 30 , 20 1 8
Net sales	$	55,640,190		$	2,713,594		$	58,353,784
Gross profit		36,128,829			1,679,408			37,808,237
Operating income (loss)		4,383,393			(317,507	)		4,065,886
Interest (expense)		(223,534	)		-			(223,534	)
Other income (expense), net		108,110			18,349			126,459
Income (loss) before income taxes		4,267,969			(299,158	)		3,968,811

Depreciation and amortization		1,237,093			73,651			1,310,744
Fixed asset additions		780,696			106,983			887,679
Total assets	$	72,009,096		$	4,656,654		$	76,665,750

For the nine months ended September 30 , 20 1 7
Net sales	$	55,080,152		$	2,738,844		$	57,818,996
Gross profit		35,239,645			1,577,265			36,816,910
Operating income (loss)		4,276,247			(233,044	)		4,043,203
Interest (expense)		(143,165	)		-			(143,165	)
Other income (expense), net		127,045			(11,446	)		115,599
Income (loss) before income taxes		4,260,127			(244,490	)		4,015,637

Depreciation and amortization		1,398,319			68,215			1,466,534
Fixed asset additions		1,508,426			22,121			1,530,547
Total assets	$	70,083,363		$	4,288,478		$	74,371,841

Net sales for geographic areas were as follows:

Three months ended September 30,	20 18		20 17
United States	$	16,200,989	$	15,551,725
Canada		1,579,521		1,653,051
All other countries		1,106,589		1,183,605
	$	18,887,099	$	18,388,381

Nine months ended September 30,	201 8		2017
United States	$	49,910,923	$	49,380,463
Canada		4,942,124		5,072,785
All other countries		3,500,737		3,365,748
	$	58,353,784	$	57,818,996

Geographic sales information is based on the location of the customer.

single foreign country, except for Canada, accounted for any material amount of our consolidated net sales for the

three

and

nine

-month periods ended

September 30, 2018

and

2017.

We do

not

have any significant long-lived assets outside of the United States.