Segment and Geographic Area Information

3 Months Ended

Jul. 31, 2022

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

Note L – Segment and Geographic Area Information

The Company’s reportable segments are strategic business units that offer different products and services. They are managed separately because each business requires different technology and marketing strategies. Separate financial information is regularly evaluated by the Chief Operating Decision Maker (“CODM”) in deciding how to allocate resources. For the Company, the CODM is the Company’s Chief Executive Officer.

The EMS reportable segment includes printed circuit board assemblies, electro-mechanical subassemblies and completely assembled (box-build) electronic products. In connection with the production of assembled products, the EMS segment provides services to its customers, including (1) automatic and manual assembly and testing of products; (2) material sourcing and procurement; (3) manufacturing and test engineering support; (4) design services; (5) warehousing and distribution services; (6) assistance in obtaining product approval from governmental and other regulatory bodies and (7) compliance reporting. The EMS segment produces the Freedom Smart Dog Collar™ sold by the Pet Tech segment.

The Pet Tech reportable segment offers electronic products such as the Freedom Smart Dog Collar™, a wireless geo-mapped fence and wellness system, along with apparel and accessories.

The accounting policies of the reportable segments are the same as those described in the summary of significant accounting policies. The CODM allocates resources to and evaluates the performance of each operating segment based on operating income.

Note L – Segment and Geographic Area Information – Continued

The tables below present information about the Company’s reportable segments.

		Three Months Ended July 31, 2022
		EMS		Pet Tech
		Segment		Segment		Consolidated
Net sales (1)	$	105,189,979	$	382,877	$	105,572,856
Operating income (loss)		5,047,378		(2,223,561)		2,823,817
Other income						(35,816)
Interest expense, net						953,558
Income before income taxes					$	1,906,075
Purchases of machinery and equipment		1,134,998		60,243		1,195,241
Depreciation and amortization of property, machinery ‎and equipment		1,451,780		18,653		1,470,433
Amortization of intangible assets		85,248		150,514		235,762
Identifiable assets	$	292,367,580	$	23,685,666	$	316,053,246

		Three Months Ended July 31, 2021
		EMS		Pet Tech
		Segment		Segment		Consolidated
Net sales	$	85,739,434	$	-	$	85,739,434
Operating income		3,471,463		-		3,471,463
Gain on extinguishment of long-term debt						(6,282,973)
Other income						(37,141)
Interest expense, net						237,916
Income before income taxes					$	9,553,661
Purchases of machinery and equipment		3,611,704		-		3,611,704
Depreciation and amortization of property, machinery ‎and equipment		1,356,277		-		1,356,277
Amortization of intangible assets		87,122		-		87,122
Identifiable assets	$	217,587,993	$	-	$	217,587,993

(1)The EMS segment manufactures products sold to the Pet Tech segment. Related intersegment sales of $83,516 have been eliminated.

Note L – Segment and Geographic Area Information – Continued

The following tables set forth net sales and tangible long-lived assets by geographic area where the Company operates. Tangible long-lived assets include property, plant and equipment and operating lease assets.

	Three Months Ended
		July 31,		July 31,
		2022		2021
Net sales:
U.S.	$	25,890,629	$	18,984,369
China		13,592,386		12,030,679
Vietnam		3,592,644		3,974,931
Mexico		62,497,197		50,749,455
Total net sales	$	105,572,856	$	85,739,434

Tangible long-lived assets include property, plant and equipment and operating lease assets consisted of the following at July 31, 2022 and April 30, 2022:

		July 31,		April 30,
		2022		2022
Tangible long-lived assets, net:
U.S.	$	21,529,540	$	21,968,745
China		4,864,734		4,778,610
Mexico		18,308,523		19,606,131
Other		1,172,033		566,493
Total tangible long-lived assets, net	$	45,874,831	$	46,919,979