Quarterly report pursuant to Section 13 or 15(d)

Segment

v3.23.3
Segment
 9 Months Ended
Sep. 30, 2023
Segment Reporting [Abstract]  
Segment

 14. 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 nine months ended September 30, 2023 and 2022:

 

For the three months ended September 30, 2023

 

                               
            Electric Boat    
    Gas-Powered       &    
    Boats   Franchise   Development   Total
Net Sales   $ 8,057,986     $ —     $ 18,559     $ 8,076,545  
Cost of Products Sold     5,529,693       —       11,621       5,541,314  
Operating Expenses     4,054,700       988       1,258,966       5,314,654  
Operating Loss     (1,526,407 )     (988 )     (1,252,028 )     (2,779,423 )
Other Income (Expense)     133,885       (4,185 )     205,714       335,414  
Net Loss   $ (1,392,523 )   $ (5,173 )   $ (1,046,314 )   $ (2,444,009 )

 

For the three months ended September 30, 2022

 

                                 
            Electric Boat    
    Gas-Powered       &    
    Boats   Franchise   Development   Total
Net Sales   $ 8,812,021     $ —     $ —     $ 8,812,021  
Cost of Products Sold     5,411,404       —       66,543       5,477,947  
Operating Expenses     3,210,920       529       979,585       4,191,034  
Operating Income (Loss)     189,697       (529 )     (1,046,128 )     (856,960 )
Other Income (Expense)     (29,673 )     (3,942 )     3,465       (30,149 )
Net Income (Loss)   $ 160,025     $ (4,471 )   $ (1,042,663 )   $ (887,109 )

 

For the nine months ended September 30, 2023

 

                                 
            Electric Boat    
    Gas-Powered       &    
    Boats   Franchise   Development   Total
Net Sales   $ 24,962,343     $ —     $ 18,559     $ 24,980,902  
Cost of Products Sold     16,958,995       —       102,358       17,061,354  
Operating Expenses     11,192,837       2,386       4,917,498       16,112,721  
Operating Loss     (3,189,490 )     (2,386 )     (5,001,297 )     (8,193,173 )
Other Income (Expense)     1,563,128       (12,369 )     466,197       2,016,956  
Net Loss   $ (1,626,362 )   $ (14,755 )   $ (4,535,100 )   $ (6,176,217 )

 

For the nine months ended September 30, 2022

 

                                 
            Electric Boat    
    Gas-Powered       &    
    Boats   Franchise   Development   Total
Net Sales   $ 23,218,666     $ (1,032 )   $ —     $ 23,217,634  
Cost of Products Sold     13,910,386       975       90,633       14,001,994  
Operating Expenses     9,468,511       34,560       2,089,661       11,592,732  
Operating Loss     (160,231 )     (36,567 )     (2,180,294 )     (2,377,092 )
Other Income (Expense)     (181,114 )     (30,059 )     (28,944 )     (240,116 )
Net Loss   $ (341,344 )   $ (66,626 )   $ (2,209,238 )   $ (2,617,208 )

 

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

 

                   
    September 30,   December 31,
    2023   2022
  Gas-Powered Boats     $ 9,074,229     $ 4,770,496  
  Franchise     $ —     $ —  
  Electric-Boats     $ 979,118     $ 765,406