Quarterly report pursuant to Section 13 or 15(d)

Segment Information

v3.22.2.2
Segment Information
 9 Months Ended
Sep. 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 nine-month periods ended September 30, 2022 and 2021 are as follows:

IT Solutions &

Intercompany

Solar

Services

Other

Eliminations

Total

Three Months Ended September 30, 2022

Sales

$

5,888,162

$

1,860,111

$

—

$

(39,211)

$

7,709,062

Cost of sales

4,483,989

1,211,331

—

—

5,695,320

Gross profit

1,404,173

648,780

—

(39,211)

2,013,742

Selling, general and

administrative expenses

1,250,734

620,471

1,290,982

(39,211)

3,122,976

Amortization expense

863,574

162,788

—

—

1,026,362

Transaction costs

—

3,018

262,365

—

265,383

Operating loss

(710,135)

(137,497)

(1,553,347)

—

(2,400,979)

Other income (expense)

(149,065)

20,829

9,219

—

(119,017)

Loss before income tax

$

(859,200)

$

(116,668)

$

(1,544,128)

$

—

$

(2,519,996)

Depreciation and amortization

$

878,853

$

184,204

$

—

$

—

$

1,063,057

Capital expenditures

$

101,456

$

3,736

$

—

$

—

$

105,192

Assets

$

41,572,863

$

9,676,492

$

—

$

—

$

51,249,355

IT Solutions &

Intercompany

Solar

Services

Other

Eliminations

Total

Three Months Ended September 30, 2021

Sales

$

25,417

$

—

$

—

$

—

$

25,417

Cost of sales

—

—

—

—

—

Gross profit

25,417

—

—

—

25,417

Selling, general and

administrative expenses

241,728

—

—

—

241,728

Amortization expense

357,324

—

—

—

357,324

Transaction costs

545,934

—

—

—

545,934

Operating loss

(1,119,569)

—

—

—

(1,119,569)

Other expense

(275,694)

—

—

—

(275,694)

Loss before income tax

$

(1,395,263)

$

—

$

—

$

—

$

(1,395,263)

Depreciation and amortization

$

357,324

$

—

$

—

$

—

$

357,324

Assets

$

3,205,000

$

—

$

—

$

—

$

3,205,000

IT Solutions &

Intercompany

Solar

Services

Other

Eliminations

Total

Nine Months Ended September 30, 2022

Sales

$

10,338,483

$

3,679,990

$

—

$

(99,975)

$

13,918,498

Cost of sales

7,966,159

2,567,203

—

—

10,533,362

Gross profit

2,372,324

1,112,787

—

(99,975)

3,385,136

Selling, general and

administrative expenses

2,683,953

1,442,286

2,627,532

(99,975)

6,653,796

Amortization expense

2,084,470

325,575

—

—

2,410,045

Transaction costs

949,330

80,501

417,453

—

1,447,284

Operating loss

(3,345,429)

(735,575)

(3,044,985)

—

(7,125,989)

Other income (expense)

(628,376)

116,949

4,676,438

—

4,165,011

Income (loss) before income tax

$

(3,973,805)

$

(618,626)

$

1,631,453

$

—

$

(2,960,978)

Depreciation and amortization

$

2,108,901

$

374,714

$

—

$

—

$

2,483,615

Capital expenditures

$

106,421

$

9,886

$

—

$

—

$

116,307

IT Solutions &

Intercompany

Solar

Services

Other

Eliminations

Total

Nine Months Ended September 30, 2021

Sales

$

25,417

$

—

$

—

$

—

$

25,417

Cost of sales

—

—

—

—

—

Gross profit

25,417

—

—

—

25,417

Selling, general and

administrative expenses

697,985

—

—

—

697,985

Amortization expense

1,071,971

—

—

—

1,071,971

Transaction costs

1,977,436

—

—

—

1,977,436

Operating loss

(3,721,975)

—

—

—

(3,721,975)

Other expense

(1,004,964)

—

—

—

(1,004,964)

Loss before income tax

$

(4,726,939)

$

—

$

—

$

—

$

(4,726,939)

Depreciation and amortization

$

1,071,971

$

—

$

—

$

—

$

1,071,971