Quarterly report pursuant to Section 13 or 15(d)

Segment

v3.23.2
Segment
 6 Months Ended
Jun. 30, 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 and six months ended June 30, 2023 and 2022:

 

For the three months ended June 30, 2023

 

                               
    Gas-Powered Boats   Franchise   Electric Boat and Development   Total
Net sales   $ 8,124,632     $ —     $ —     $ 8,124,632  
Cost of products sold     5,823,374       —       40,796       5,864,170  
Operating expense     3,725,689       278       1,578,722       5,304,689  
Loss from operations     (1,424,431 )     (278 )     (1,619,518 )     (3,044,227 )
Other income (expense)     1,008,741       (4,122 )     135,865       1,140,484  
Net loss   $ (415,690 )   $ (4,400 )   $ (1,483,653 )   $ (1,903,743 )

 

For the three months ended June 30, 2022

 

                                 
    Gas-Powered Boats   Franchise   Electric Boat and Development   Total
Net sales   $ 8,519,613     $ —     $ —     $ 8,519,613  
Cost of products sold     5,059,389       —       13,012       5,072,401  
Operating expense     3,356,381       7,723       555,087       3,919,191  
Income (loss) from operations     103,843       (7,723 )     (568,099 )     (471,979 )
Other expense     (31,089 )     (3,882 )     (31,832 )     (66,803 )
Net income (loss)   $ 72,754     $ (11,605 )   $ (599,931 )   $ (538,782 )

 

For the six months ended June 30, 2023

 

                                 
    Gas-Powered Boats   Franchise   Electric Boat and Development   Total
Net sales   $ 17,001,847     $ —     $ —     $ 17,001,847  
Cost of products sold     11,428,818       —       90,737       11,519,555  
Operating expense     7,236,112       1,399       3,658,531       10,896,042  
Loss from operations     (1,663,083 )     (1,399 )     (3,749,268 )     (5,413,750 )
Other income (expense)     1,429,242       (8,184 )     260,484       1,681,542  
Net loss   $ (233,841 )   $ (9,583 )   $ (3,488,784 )   $ (3,732,208 )

 

For the six months ended June 30, 2022

 

                                 
    Gas-Powered Boats   Franchise   Electric Boat and Development   Total
Net sales   $ 14,406,645     $ (1,032 )   $ —     $ 14,405,613  
Cost of products sold     8,498,930       1,027       24,090       8,524,047  
Operating expense     6,309,997       33,978       1,057,723       7,401,698  
Loss from operations     (402,282 )     (36,037 )     (1,081,813 )     (1,520,132 )
Other expense     (151,442 )     (26,116 )     (32,409 )     (209,967 )
Net loss   $ (553,724 )   $ (62,153 )   $ (1,114,222 )   $ (1,730,099 )

 

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

 

       
    June 30,   December 31,
    2023   2022
  Gas-Powered Boats     $ 8,558,194     $ 4,770,496  
  Franchise     $ —     $ —  
  Electric-Boats     $ 997,973     $ 765,406