| 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 and six months ended June 30, 2024 and 2023:
For the three months ended June 30, 2024
| Schedule of reportable segments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Gas-Powered Boats |
|
Franchise |
|
Electric Boat and Development
|
|
Total |
| Net sales |
|
$ |
4,326,821 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
4,326,821 |
|
| Cost of products sold |
|
|
4,097,640 |
|
|
|
— |
|
|
|
26,841 |
|
|
|
4,124,481 |
|
| Operating expense |
|
|
1,943,927 |
|
|
|
927 |
|
|
|
2,916,563 |
|
|
|
4,861,416 |
|
| Loss from operations |
|
|
(1,714,746 |
) |
|
|
(927 |
) |
|
|
(2,943,404 |
) |
|
|
(4,659,076 |
) |
| Other income (expense) |
|
|
22,733 |
|
|
|
5,297 |
|
|
|
111,850 |
|
|
|
139,880 |
|
| Net loss |
|
$ |
(1,681,419 |
) |
|
$ |
(6,224 |
) |
|
$ |
(2,831,554 |
) |
|
$ |
(4,519,196 |
|
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 |
|
|
7,148,121 |
|
|
|
— |
|
|
|
40,796 |
|
|
|
7,188,917 |
|
| Operating expense |
|
|
2,400,942 |
|
|
|
278 |
|
|
|
1,578,722 |
|
|
|
3,979,942 |
|
| 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 six months ended June 30, 2024
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Gas-Powered Boats |
|
Franchise |
|
Electric Boat and Development
|
|
Total |
| Net sales |
|
$ |
9,603,164 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
9,603,164 |
|
| Cost of products sold |
|
|
9,067,098 |
|
|
|
— |
|
|
|
56,413 |
|
|
|
9,123,511 |
|
| Operating expense |
|
|
3,478,677 |
|
|
|
927 |
|
|
|
4,202,330 |
|
|
|
7,681,934 |
|
| Loss from operations |
|
|
(2,942,611 |
) |
|
|
(927 |
) |
|
|
(4,258,743 |
) |
|
|
(7,202,281 |
) |
| Other income (expense) |
|
|
93,835 |
|
|
|
(5,297 |
) |
|
|
259,352 |
|
|
|
347,890 |
|
| Net loss |
|
$ |
(2,848,776 |
) |
|
$ |
(6,224 |
) |
|
$ |
(3,999,391 |
) |
|
$ |
(6,854,391 |
) |
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 |
|
|
14,365,837 |
|
|
|
— |
|
|
|
90,737 |
|
|
|
14,456,574 |
|
| Operating expense |
|
|
4,299,093 |
|
|
|
1,399 |
|
|
|
3,658,531 |
|
|
|
7,959,023 |
|
| 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 |
) |
Property and equipment, net, classified by business were as follows:
| Schedule of property and equipment, net |
|
|
|
|
|
|
|
|
| |
|
June 30,
2024 |
|
December 31,
2023 |
| Gas-Powered Boats |
|
$ |
8,941,665 |
|
|
$ |
8,825,027 |
|
| Franchise |
|
$ |
— |
|
|
$ |
— |
|
| Electric-Boats |
|
$ |
4,565,007 |
|
|
$ |
3,468,961 |
|
|