Quarterly report pursuant to Section 13 or 15(d)

Segment

v3.22.1
Segment
 3 Months Ended
Mar. 31, 2022
Segment Reporting [Abstract]  
Segment

12. 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. 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 three months ended March 31,2022 and 2021:

  

 

 

                               
    Gas-Powered Boats   Franchise   Electric Boat and Development   Total
Net sales   $ 5,887,032     $ (1,032 )   $ —     $ 5,886,000  
Cost of products sold     3,439,541       1,027       11,078       3,451,646  
Operating expense     2,953,616       26,255       502,636       3,482,507  
(Loss) from operations     (506,125 )     (28,314 )     (513,714 )     (1,048,153 )
Other loss     (120,353 )     (22,234 )     (577 )     (143,164 )
Net loss   $ (626,478 )   $ (50,548 )   $ (514,291 )   $ (1,191,317 )

 

    For the Three Months Ended March 31, 2021
    Gas-Powered Boats   Franchise   Electric Boat and Development   Total
Net sales   $ 3,207,643     $ —     $ —     $ 3,207,643  
Cost of products sold     1,719,737       —       —       1,719,737  
Operating expense     1,333,144       —       —       1,333,144  
Income from operations     154,762       —       —       154,762  
Other loss     (22,813 )     —       —       (22,813 )
Net income   $ 131,949     $ —     $ —     $ 131,949  

 

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

  

               
    March 31,   December 31,
    2022   2021
Gas-Powered Boats   $ 3,165,344     $ 2,547,410  
Franchise   $ —     $ 100,196  
Electric-Boats   $ 267,698     $ 235,565