Annual report pursuant to Section 13 and 15(d)

Segment

v3.24.1
Segment
 12 Months Ended
Dec. 31, 2023
Segment Reporting [Abstract]  
Segment

18. 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 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 and year ended December 31, 2023 and 2022:

 

                               
For the Year Ended December 31, 2023                
            Electric Boat    
    Gas-Powered Boats   Franchise   and
Development		   Total
Net sales   $ 33,388,794     $ —     $ 37,118     $ 33,425,912  
Cost of products sold     23,545,248       —       157,637       23,702,885  
Operating expense     15,234,159       3,253       6,472,914       21,710,326  
Loss from operations     (5,390,613 )     (3,253 )     (6,593,433 )     (11,987,299 )
Other income (expense)     1,559,742       (14,959 )     660,320       2,205,103  
Net loss   $ (3,830,871 )   $ (18,212 )   $ (5,933,113 )   $ (9,782,196 )

                                 
For the Year Ended December 31, 2022                
                 
            Electric Boat    
    Gas-Powered Boats   Franchise   and
Development		   Total
Net sales   $ 31,988,756     $ (1,032 )   $ —     $ 31,987,724  
Cost of products sold     21,097,148       1,027       232,743       21,330,918  
Operating expense     13,274,952       35,399       3,368,163       16,678,514  
Loss from operations     (2,383,344 )     (37,458 )     (3,600,906 )     (6,021,708 )
Other income (expense)     239,177       (34,060 )     23,177       228,294  
Net loss   $ (2,144,167 )   $ (71,518 )   $ (3,577,729 )   $ (5,793,414 )

 

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

 

               
    December 31,   December 31,
    2023   2022
Gas-Powered Boats   $ 8,825,027     $ 4,694,607  
Franchise   $ —     $ —  
Electric-Boats   $ 3,468,961     $ 765,406