Annual report pursuant to Section 13 and 15(d)

Segment

v3.22.1
Segment
 12 Months Ended
Dec. 31, 2021
Segment Reporting [Abstract]  
Segment

17. 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.

 

We reported our 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. Operating income (loss) 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 expense. The Company does not include intercompany transfers between segments for management reporting purposes.

 

The following table shows information by reportable segments for the years ended December 31,2021 and 2020:

 

               
Boat   2021   2020
Net sales   $ 15,757,435     $ 11,063,619  
Cost of products sold     9,483,158       6,289,316  
Operating expense     7,461,787       4,053,469  
Income (loss) from operations     (1,187,510 )   $ 720,834  
Other income     699,486       —  
Net loss   $ (488,024 )   $ —  
                 
Franchise                
Net sales   $ 16,735     $ —  
Cost of products sold     15,226       —  
Operating expense     63,173       —  
Income (loss) from operations     (61,664 )     —  
Other loss     (3,769 )     —  
Net loss   $ (65,433 )   $ —  
                 
Electric Boat and Development                
Net sales   $ —     $ —  
Cost of products sold     —       —  
Operating expense     381,547       —  
Loss from operations     (381,547 )     —  
Other loss     (76,005 )     —  
Net loss   $ (457,552 )   $ —  

 

Property and equipment, net classified by business were as follows:

 

    December 31,   December 31,
    2021   2020
Gas-Powered Boats     $ 2,547,410     $ 1,365,029  
Franchise     $ 100,196     $ —  
Electric-Boats     $ 235,565     $ —