Note 12 – Business Segment Data

Operating segments are based on the Company’s business components about which separate financial information is available and are evaluated regularly by the Company’s chief operating decision makers in deciding how to allocate resources and in assessing performance of the business.

The Company evaluates segment performance and allocates resources based upon operating income (loss). The Company’s operations are managed in two reportable business segments: Digital product sales and Digital product lease and maintenance. Both design and produce large-scale, multi-color, real-time digital displays and LED lighting, which has a line of energy-saving lighting solutions that provide facilities and public infrastructure with “green” lighting solutions that emit less heat, save energy and enable creative designs. Both operating segments are conducted on a global basis, primarily through operations in the United States. The Company also has operations in Canada. The Digital product sales segment sells equipment and the Digital product lease and maintenance segment leases and maintains equipment. Corporate general and administrative items relate to costs that are not directly identifiable with a segment. There are no intersegment sales.

Foreign revenues represent less than 10% of the Company’s revenues in 2018 and 2017. The Company’s foreign operation does not manufacture its own equipment; the domestic operation provides the equipment that the foreign operation leases or sells. The foreign operation operates similarly to the domestic operation and has similar profit margins. Foreign assets are immaterial.

Information about the Company’s operations in its two business segments for the three and six months ended June 30, 2018 and 2017 is as follows:

	Three months ended June 30				Six months ended June 30
In thousands	2018		2017		2018		2017
Revenues:
Digital product sales	$	2,353	$	3,360	$	6,301	$	5,940
Digital product lease and maintenance		709		618		1,296		1,115
Total revenues	$	3,062	$	3,978	$	7,597	$	7,055
Operating income (loss):
Digital product sales	$	(442)	$	(512)	$	118	$	(988)
Digital product lease and maintenance		258		187		548		258
Corporate general and administrative expenses		(710)		(768)		(1,421)		(1,459)
Total operating income (loss)		(894)		(1,093)		(755)		(2,189)
Interest expense, net		(218)		(138)		(414)		(312)
Gain (loss) on foreign currency remeasurement		50		(64)		122		(91)
Gain on sale leaseback transaction		-		33		11		66
Pension benefit		34		8		68		17
Loss before income taxes		(1,028)		(1,254)		(968)		(2,509)
Income tax expense		-		-		-		-
Net loss	$	(1,028)	$	(1,254)	$	(968)	$	(2,509)

	June 30 2018		December 31 2017
	June 30 2018		December 31 2017
Assets
Digital product sales	$	8,474	$	9,722
Digital product lease and maintenance		3,965		4,515
Total identifiable assets		12,439		14,237
General corporate		264		747
Total assets	$	12,703	$	14,984