Annual report pursuant to Section 13 and 15(d)

Segment

v3.23.1
Segment
 12 Months Ended
Dec. 31, 2022
Segment Reporting [Abstract]  
Segment

17. 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, 2022 and 2021:

  

                               
For the Year Ended December 31, 2022   Gas-Powered Boats   Franchise   Electric Boat 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  
Income (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 )

 

                                 
For the Year Ended December 31, 2021   Gas-Powered Boats   Franchise   Electric Boat and Development   Total
Net sales   $ 15,757,435     $ 16,735     $ —     $ 15,774,170  
Cost of products sold     9,483,158       15,226       —       9,498,384  
Operating expense     7,461,787       63,173       381,547       7,906,507  
Loss from operations     (1,187,510 )     (61,664 )     (381,547 )     (1,630,721 )
Other income (expense)     699,486       (3,769 )     (76,005 )     619,712  
Net loss   $ (488,024 )   $ (65,433 )   $ (457,552 )   $ (1,011,009 )

  

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

  

               
    December 31,   December 31,
    2022   2021
Gas-Powered Boats   $ 4,694,607     $ 2,547,410  
Franchise   $ —     $ 100,196  
Electric-Boats   $ 765,406     $ 235,565