Quarterly report pursuant to Section 13 or 15(d)

Segment

v3.24.1.1.u2
Segment
 3 Months Ended
Mar. 31, 2024
Segment Reporting [Abstract]  
Segment

 15. 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, 2024 and 2023:

 

For the three months ended March 31, 2024

 

                               
    Gas-Powered Boats   Franchise   Electric Boat and
Development		   Total
Net sales   $ 5,276,343     $ —     $ —     $ 5,276,343  
Cost of products sold     4,969,458       —       29,572       4,999,030  
Operating expense     1,533,981       772       1,285,767       2,820,520  
Loss from operations     (1,227,096 )     (772 )     (1,315,339 )     (2,543,207 )
Other income (expense)     63,139       (2,629 )     147,502       208,012  
Net income (loss)   $ (1,163,957 )   $ (3,401 )   $ (1,167,837 )   $ (2,335,194 )

  

For the three months ended March 31, 2023

 

                                 
            Electric Boat and    
    Gas-Powered Boats   Franchise   Development   Total
Net sales   $ 8,877,215     $ —     $ —     $ 8,877,215  
Cost of products sold     7,217,716       —       49,941       7,267,657  
Operating expense     1,898,151       1,121       2,079,809       3,979,081  
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 income (loss)   $ 181,849     $ (5,183 )   $ (2,005,131 )   $ (1,828,465 )

 

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

 

               
    March 31,   December 31,
    2024   2023
Gas-Powered Boats   $ 8,907,117     $ 8,825,027  
Franchise   $ —     $ —  
Electric-Boats   $ 4,984,213     $ 3,468,961