| Segment |
15. Segment
The Company reports segment information based on the
“management” approach. The management approach designates the internal reporting used by management for making decisions and
assessing performance as the source of the Company’s reportable segments.
The Company reported its financial performance based
on the following segments: Gas-powered Boats, Franchise and Electric Boats.
The Company evaluates the performance of its reportable segments based on net
sales and operating income. Net sales for business segments are generally based on the sale of boats and the sale of franchises. Income
(loss) from operations for each segment includes net sales to third parties, related cost of sales and operating expenses directly attributable
to the segment. Operating income for each segment excludes other income and expenses. The Company does not include intercompany transfers
between segments for management reporting purposes. Inasmuch as we determined to discontinue and wind down Forza’s business related
to the development and sale of electric boats utilizing its proprietary outboard electric motor, the Company does not anticipate having
an electric boat segment in the future.
The following table shows information by reportable
segments for the three and nine months ended September 30, 2024 and 2023:
For the three
months ended September 30, 2024
| Schedule of reportable segments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Gas-Powered Boats |
|
Franchise |
|
Electric Boat and Development |
|
Total |
| Net sales |
|
$ |
2,901,318 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
2,901,318 |
|
| Cost of products sold |
|
|
3,035,053 |
|
|
|
— |
|
|
|
11,922 |
|
|
|
3,046,975 |
|
| Operating expense |
|
|
1,990,512 |
|
|
|
610 |
|
|
|
852,451 |
|
|
|
2,843,573 |
|
| Loss from operations |
|
|
(2,124,247 |
) |
|
|
(610 |
) |
|
|
(864,373 |
) |
|
|
(2,989,230 |
) |
| Other income (expense) |
|
|
10,857 |
|
|
|
(205 |
) |
|
|
(31,329 |
) |
|
|
(20,677 |
) |
| Net loss |
|
$ |
(2,113,390 |
) |
|
$ |
(815 |
) |
|
$ |
(895,702 |
) |
|
$ |
(3,009,907 |
) |
For the three months ended September 30, 2023
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Gas-Powered Boats |
|
Franchise |
|
Electric Boat and Development |
|
Total |
| Net sales |
|
$ |
8,057,986 |
|
|
$ |
— |
|
|
$ |
18,559 |
|
|
$ |
8,076,545 |
|
| Cost of products sold |
|
|
7,459,413 |
|
|
|
— |
|
|
|
11,621 |
|
|
|
7,471,034 |
|
| Operating expense |
|
|
2,124,980 |
|
|
|
988 |
|
|
|
1,258,966 |
|
|
|
3,384,934 |
|
| Loss from operations |
|
|
(1,526,407 |
) |
|
|
(988 |
) |
|
|
(1,252,028 |
) |
|
|
(2,779,423 |
) |
| Other income (expense) |
|
|
133,885 |
|
|
|
(4,185 |
) |
|
|
205,714 |
|
|
|
335,414 |
|
| Net loss |
|
$ |
(1,392,522 |
) |
|
$ |
(5,173 |
) |
|
$ |
(1,046,314 |
) |
|
$ |
(2,444,009 |
) |
For the nine months ended September 30, 2024
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Gas-Powered Boats |
|
Franchise |
|
Electric Boat and Development |
|
Total |
| Net sales |
|
$ |
12,504,482 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
12,504,482 |
|
| Cost of products sold |
|
|
12,102,151 |
|
|
|
— |
|
|
|
68,335 |
|
|
|
12,170,486 |
|
| Operating expense |
|
|
5,469,191 |
|
|
|
1,537 |
|
|
|
5,054,781 |
|
|
|
10,525,509 |
|
| Loss from operations |
|
|
(5,066,860 |
) |
|
|
(1,537 |
) |
|
|
(5,123,116 |
) |
|
|
(10,191,513 |
) |
| Other income (expense) |
|
|
104,284 |
|
|
|
(5,092 |
) |
|
|
228,023 |
|
|
|
327,215 |
|
| Net loss |
|
$ |
(4,962,576 |
) |
|
$ |
(6,629 |
) |
|
$ |
(4,895,093 |
) |
|
$ |
(9,864,298 |
) |
For the nine months ended September 30, 2023
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Gas-Powered Boats |
|
Franchise |
|
Electric Boat and Development |
|
Total |
| Net sales |
|
$ |
24,962,343 |
|
|
$ |
— |
|
|
$ |
18,559 |
|
|
$ |
24,980,902 |
|
| Cost of products sold |
|
|
21,825,735 |
|
|
|
— |
|
|
|
102,358 |
|
|
|
21,928,093 |
|
| Operating expense |
|
|
6,326,098 |
|
|
|
2,386 |
|
|
|
4,917,498 |
|
|
|
11,245,982 |
|
| Loss from operations |
|
|
(3,189,490 |
) |
|
|
(2,386 |
) |
|
|
(5,001,297 |
) |
|
|
(8,193,173 |
) |
| Other income (expense) |
|
|
1,563,128 |
|
|
|
(12,369 |
) |
|
|
466,197 |
|
|
|
2,016,956 |
|
| Net loss |
|
$ |
(1,626,362 |
) |
|
$ |
(14,755 |
) |
|
$ |
(4,535,100 |
) |
|
$ |
(6,176,217 |
) |
Property and equipment, net, classified by business were as follows:
| Schedule of property and equipment, net |
|
|
|
|
|
|
|
|
| |
|
September 30,
2024 |
|
December 31,
2023 |
| Gas-Powered Boats |
|
$ |
9,828,812 |
|
|
$ |
8,825,027 |
|
| Franchise |
|
$ |
— |
|
|
$ |
— |
|
| Electric-Boats |
|
$ |
4,388,229 |
|
|
$ |
3,468,961 |
|
|