Quarterly report pursuant to Section 13 or 15(d)

Segment Information

v3.22.2.2
Segment Information
 6 Months Ended
Jun. 30, 2022
Segment Information [Abstract]  
Segment Information NOTE 12 – SEGMENT INFORMATION

The Company classifies its business operations into two segments as follows:

Solar: generates revenue through the sale and installation of residential and commercial solar systems, battery storage, and grid service solutions.

IT Solutions & Services: provides technology solutions that address prevalent IT challenges, including network resiliency, security products and services, network virtualization, and cloud migrations, IT managed services, wired and wireless network design and implementation, and converged infrastructure configuration, deployment and management.

Our chief operating decision maker evaluates segment financial performance based on segment revenues and segment operating income and allocates resources to achieve our operating profit goals through these two operating segments. Management has chosen to organize the Company and disclose reportable segments based on our products and services. Intercompany revenues are eliminated upon consolidation. “Other” includes corporate costs that are not allocated to the segments.

Information concerning the Company’s operations in its segments for the three- and six-month periods ended June 30, 2022 and 2021 are as follows:

IT Solutions &

Intercompany

Solar

Services

Other

Eliminations

Total

Three Months Ended June 30, 2022

Sales

$

4,218,000

$

1,734,000

$

—

$

(61,000)

$

5,891,000

Cost of sales

3,316,000

1,298,000

—

—

4,614,000

Gross profit

902,000

436,000

—

(61,000)

1,277,000

Selling, general and

administrative expenses

1,177,000

781,000

1,337,000

(61,000)

3,234,000

Amortization expense

863,000

163,000

—

—

1,026,000

Transaction costs

1,000

58,000

155,000

—

214,000

Operating loss

(1,139,000)

(566,000)

(1,492,000)

—

(3,197,000)

Other income (expense)

(129,000)

101,000

4,668,000

—

4,640,000

Income (loss) before income tax

$

(1,268,000)

$

(465,000)

$

3,176,000

$

—

$

1,443,000

Depreciation and amortization

$

872,000

$

186,000

$

—

$

—

$

1,058,000

Capital expenditures

$

5,000

$

6,000

$

—

$

—

$

11,000

Assets

$

39,866,000

$

18,768,000

$

—

$

—

$

58,634,000

IT Solutions &

Intercompany

Solar

Services

Other

Eliminations

Total

Three Months Ended June 30, 2021

Sales

$

—

$

—

$

—

$

—

$

—

Cost of sales

—

—

—

—

—

Gross profit

—

—

—

—

—

Selling, general and

administrative expenses

225,000

—

—

—

225,000

Amortization expense

357,000

—

—

—

357,000

Transaction costs

1,263,000

—

—

—

1,263,000

Operating loss

(1,845,000)

—

—

—

(1,845,000)

Other expense

(418,000)

—

—

—

(418,000)

Loss before income tax

$

(2,263,000)

$

—

$

—

$

—

$

(2,263,000)

Depreciation and amortization

$

357,000

$

—

$

—

$

—

$

357,000

Assets

$

4,163,000

$

—

$

—

$

—

$

4,163,000

IT Solutions &

Intercompany

Solar

Services

Other

Eliminations

Total

Six Months Ended June 30, 2022

Sales

$

4,450,000

$

1,820,000

$

—

$

(61,000)

$

6,209,000

Cost of sales

3,482,000

1,356,000

—

—

4,838,000

Gross profit

968,000

464,000

—

(61,000)

1,371,000

Selling, general and

administrative expenses

1,433,000

822,000

1,337,000

(61,000)

3,531,000

Amortization expense

1,220,000

163,000

—

—

1,383,000

Transaction costs

949,000

77,000

156,000

—

1,182,000

Restructuring expense

—

—

—

—

—

Operating loss

(2,634,000)

(598,000)

(1,493,000)

—

(4,725,000)

Other income (expense)

(479,000)

96,000

4,667,000

—

4,284,000

Income (loss) before income tax

$

(3,113,000)

$

(502,000)

$

3,174,000

$

—

$

(441,000)

Depreciation and amortization

$

1,229,000

$

191,000

$

—

$

—

$

1,420,000

Capital expenditures

$

5,000

$

6,000

$

—

$

—

$

11,000

IT Solutions &

Intercompany

Solar

Services

Other

Eliminations

Total

Six Months Ended June 30, 2021

Sales

$

—

$

—

$

—

$

—

$

—

Cost of sales

—

—

—

—

—

Gross profit

—

—

—

—

—

Selling, general and

administrative expenses

456,000

—

—

—

456,000

Amortization expense

715,000

—

—

—

715,000

Transaction costs

1,432,000

—

—

—

1,432,000

Operating loss

(2,603,000)

—

—

—

(2,603,000)

Other expense

(729,000)

—

—

—

(729,000)

Loss before income tax

$

(3,332,000)

$

—

$

—

$

—

$

(3,332,000)

Depreciation and amortization

$

715,000

$

—

$

—

$

—

$

715,000