| Segment Information |
NOTE 15 - SEGMENT INFORMATION
Due to the nature of our businesses,
we are operating in two reportable segments, which are managed separately based upon fundamental differences in their operations.
Martech, Dragon, Colmek, Tactical and Innalogic operate as contractors, and the balance of our operations is comprised of product
sales.
Segment operating income is total segment
revenue reduced by operating expenses identifiable with the business segment. Corporate includes general corporate administrative
costs.
The Company evaluates performance and
allocates resources based upon operating income. The accounting policies of the reportable segments are the same as those described
in the summary of accounting policies.
There are inter-segment sales between
our engineering contracting businesses and our products businesses, which have been removed from the information shown below.
The following table summarizes asset
and operating balances by reportable segment.
| |
|
October 31, 2010 |
|
|
October 31, 2009 |
|
| |
|
Contracting |
|
|
Products |
|
|
Corporate |
|
|
Contracting |
|
|
Products |
|
|
Corporate |
|
| Current assets, excl. interco. |
|
$ |
2,365,546 |
|
|
$ |
1,996,444 |
|
|
$ |
1,324,982 |
|
|
$ |
3,033,658 |
|
|
$ |
2,706,461 |
|
|
$ |
1,636,319 |
|
| Property and equipment, net |
|
|
18,131 |
|
|
|
62,221 |
|
|
|
34,117 |
|
|
|
98,277 |
|
|
|
99,131 |
|
|
|
70,556 |
|
| Deferred financing costs |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
1,271,170 |
|
| Goodwill |
|
|
3,037,260 |
|
|
|
369,945 |
|
|
|
- |
|
|
|
3,462,224 |
|
|
|
62,315 |
|
|
|
- |
|
| Other intangible assets |
|
|
445,644 |
|
|
|
- |
|
|
|
68,998 |
|
|
|
640,928 |
|
|
|
- |
|
|
|
56,341 |
|
| Total assets |
|
|
5,866,581 |
|
|
|
2,428,610 |
|
|
|
1,428,097 |
|
|
|
7,235,301 |
|
|
|
2,867,907 |
|
|
|
3,034,386 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Current liabilities, excl. interco. |
|
|
2,791,350 |
|
|
|
2,953,940 |
|
|
|
16,854,297 |
|
|
|
3,062,818 |
|
|
|
1,253,173 |
|
|
|
3,502,967 |
|
| Long term liabilities |
|
|
- |
|
|
|
160,350 |
|
|
|
- |
|
|
|
- |
|
|
|
165,594 |
|
|
|
13,067,929 |
|
| Total liabilities |
|
|
2,791,350 |
|
|
|
3,114,290 |
|
|
|
16,854,297 |
|
|
|
3,062,818 |
|
|
|
1,418,767 |
|
|
|
16,570,896 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Capital expenditure |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
7,825 |
|
|
|
32,747 |
|
|
|
7,186 |
|
| |
|
Year ended October 31, 2010 |
|
|
Year ended October 31, 2009 |
|
| Revenues |
|
$ |
7,152,989 |
|
|
$ |
4,352,223 |
|
|
$ |
4,721 |
|
|
$ |
8,355,041 |
|
|
$ |
4,869,393 |
|
|
$ |
- |
|
| Gross profit (loss) |
|
|
2,859,903 |
|
|
|
2,469,676 |
|
|
|
4,721 |
|
|
|
3,033,337 |
|
|
|
3,875,137 |
|
|
|
- |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Research and development |
|
|
- |
|
|
|
1,762,035 |
|
|
|
- |
|
|
|
2,240,189 |
|
|
|
412,524 |
|
|
|
- |
|
| Selling, general & administrative |
|
|
2,918,173 |
|
|
|
2,931,157 |
|
|
|
533,268 |
|
|
|
2,493,261 |
|
|
|
1,679,450 |
|
|
|
6,824,122 |
|
| Stock based compensation |
|
|
- |
|
|
|
*51,771 |
|
|
|
- |
|
|
|
73,305 |
|
|
|
- |
|
|
|
217,417 |
|
| Depreciation & amortization |
|
|
*316,472 |
|
|
|
*66,795 |
|
|
|
*33,182 |
|
|
|
311,246 |
|
|
|
98,677 |
|
|
|
279,821 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total operating expenses |
|
|
2,918,173 |
|
|
|
4,693,192 |
|
|
|
533,268 |
|
|
|
4,733,450 |
|
|
|
2,091,974 |
|
|
|
6,824,122 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Operating income (loss) |
|
|
(58,270 |
) |
|
|
(2,223,516 |
) |
|
|
(528,547 |
) |
|
|
(1,700,113 |
) |
|
|
1,783,163 |
|
|
|
(6,824,122 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Other income |
|
|
1,636 |
|
|
|
916,363 |
|
|
|
833,478 |
|
|
|
343,834 |
|
|
|
(153,494 |
) |
|
|
11,408 |
|
| Interest expense |
|
|
(130,307 |
) |
|
|
(91,562 |
) |
|
|
(1,783,967 |
) |
|
|
(184,396 |
) |
|
|
(27,722 |
) |
|
|
(1,634,765 |
) |
| Amortization of deferred financing costs |
|
|
- |
|
|
|
- |
|
|
|
(1,271,170 |
) |
|
|
- |
|
|
|
- |
|
|
|
(242,128 |
) |
| Impairment of investment |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(782,595 |
) |
| Gain on change in fair value of derivative liability |
|
|
- |
|
|
|
- |
|
|
|
2,557,546 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
| Net income (loss) before income taxes |
|
$ |
(186,941 |
) |
|
$ |
(1,398,715 |
) |
|
$ |
(192,660 |
) |
|
$ |
(1,540,675 |
) |
|
$ |
1,601,947 |
|
|
$ |
(9,472,202 |
) |
*) These
amounts are included in the amounts stated for Selling, general and administrative
The Company’s reportable business
segments operate in two geographic locations. Those geographic locations are:
* United States
* Europe
The Company evaluates performance and
allocates resources based upon operating income. The accounting policies of the reportable segments are the same as those described
in the summary of accounting policies. There are inter-segment sales which have been removed upon consolidation and for the purposes
of the information shown below.
Information concerning principal geographic
areas is presented below according to the area where the activity is taking place for the years ended October 31, 2010 and 2009
respectively:
| |
|
2010 |
|
|
2009 |
|
| Revenues: |
|
|
|
|
|
|
|
|
| United States |
|
$ |
5,791,411 |
|
|
$ |
5,939,535 |
|
| Europe |
|
|
5,718,522 |
|
|
|
7,284,899 |
|
| Corporate and other |
|
|
- |
|
|
|
- |
|
| Total Revenues |
|
$ |
11,509,933 |
|
|
$ |
13,224,435 |
|
| |
|
|
|
|
|
|
|
|
| Assets: |
|
|
|
|
|
|
|
|
| United States |
|
$ |
4,029,742 |
|
|
$ |
5,882,644 |
|
| Europe |
|
|
5,006,304 |
|
|
|
4,220,350 |
|
| Corporate and other |
|
|
687,242 |
|
|
|
3,034,386 |
|
| Total Assets |
|
$ |
9,723,288 |
|
|
$ |
13,137,380 |
|
|