Quarterly report pursuant to Section 13 or 15(d)

Segment

v3.22.2
Segment
 6 Months Ended
Jun. 30, 2022
Segment Reporting [Abstract]  
Segment

13. 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. Operating income (loss) 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 six months ended June 30, 2022 and 2021:

 

                               
    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  
(Loss) Income from operations     103,843       (7,723 )     (568,099 )     (471,979 )
Total Other (expenses) income     (31,089 )     (3,882 )     (31,832 )     (66,803 )
Net income (loss)   $ 72,754     $ (11,605 )   $ (599,931 )   $ (538,782 )

 

                                 
    For the Three Months Ended June 30, 2021
    Gas-Powered Boats   Franchise   Electric Boat and Development   Total
Net sales   $ 3,297,571     $ —     $ —     $ 3,297,571  
Cost of products sold     1,981,427       —       —       1,981,427  
Operating expense     1,415,527       —       17,550       1,433,077  
Income from operations     (99,383 )     —       (17,550 )     (116,933 )
Other income     231,590       —       (63,806 )     167,784  
Net income (loss)   $ 132,207     $ —     $ (81,356 )   $ 50,851  

 

                                 
    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  
Income from operations     (402,282 )     (36,037 )     (1,081,813 )     (1,520,132 )
Other loss     (151,442 )     (26,116 )     (32,409 )     (209,967 )
Net loss   $ (553,724 )   $ (62,153 )   $ (1,114,222 )   $ (1,730,099 )

 

                                 
    For the Six Months Ended June 30, 2021
    Gas-Powered Boats   Franchise   Electric Boat and Development   Total
Net sales   $ 6,505,214     $ —     $ —     $ 6,505,214  
Cost of products sold     3,701,164       —       —       3,701,164  
Operating expense     2,731,121       —       35,100       2,766,221  
Income from operations     72,929       —       (35,100 )     37,829  
Other income     210,419       —       (65,448 )     144,971  
Net income (loss)   $ 283,348     $ —     $ (100,548 )   $ 182,800  

 

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

  

               
    June 30,   December 31,
    2022   2021
Gas-Powered Boats   $ 3,984,376     $ 2,547,410  
Franchise   $ —     $ 100,196  
Electric-Boats   $ 378,382     $ 235,565