Quarterly report pursuant to Section 13 or 15(d)

Segment

v3.23.1
Segment
 3 Months Ended
Mar. 31, 2023
Segment Reporting [Abstract]  
Segment

14. 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.

 

The following table shows information by reportable segments for the three months ended March 31, 2023 and 2022:

  

For the three months ended March 31, 2023

  

                                 
    Gas-Powered Boats   Franchise   Electric Boat and Development   Total
Net sales   $ 8,877,215     $ —     $ —     $ 8,877,215  
Cost of products sold     5,605,444       —       49,941       5,655,385  
Operating expense     3,510,423       1,121       2,079,809       5,591,353  
Loss from operations     (238,652 )     (1,121 )     (2,129,750 )     (2,369,523 )
Other income (expense)     420,501       (4,062 )     124,619       541,058  
Net loss   $ 181,849     $ (5,183 )   $ (2,005,131 )   $ (1,828,465 )


For the three months ended March 31, 2022

  

                                 
    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 expenses     (120,353 )     (22,234 )     (577 )     (143,164 )
Net loss   $ (626,478 )   $ (50,548 )   $ (514,291 )   $ (1,191,317 )

  

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

  

                     
    March 31,   December 31,
    2023   2022
  Gas-Powered Boats     $ 5,132,365     $ 4,694,607  
  Franchise     $ —     $ —  
  Electric-Boats     $ 1,021,674     $ 765,406