10.

SEGMENT REPORTING

Operating segments are defined in accordance with ASC

280

as components of an enterprise for which separate financial information is available that is evaluated regularly by the chief operating decision maker, or decision making group, in deciding how to allocate resources and in assessing performance. The measurement basis of segment profit or loss is income (loss) from operations.

Management has identified

six

operating segments based on the activities of the Company in accordance with the ASC

280

10.

These operating segments have been aggregated into

two

reportable segments, and an Other category. The

two

reportable segments are Power and Electromechanical and Energy. The Power and Electromechanical segment is focused on the operations of CUI, CUI-Canada and CUI Japan for the sale of internal and external power supplies, related components and industrial controls. The Power and Electromechanical segment also includes CUI Properties, LLC that owns the Company's Tualatin, Oregon facility. The Energy segment is focused on the operations of Orbital Gas Systems Ltd. and Orbital Gas Systems, North America, Inc. which includes gas related test and measurement systems, including the GasPT. The Other category represents the remaining activities that are

not

included as part of the other reportable segments and represents primarily corporate activity.

During the

three

months ended

March 31, 2018,

the Company’s total revenues consisted of

77%

from the Power and Electromechanical segment and

23%

from the Energy segment. During the

three

months ended

March

31,

2017,

the Company's total revenues consisted of

77%

from the Power and Electromechanical segment and

23%

from the Energy segment.

The following information represents segment activity for the

three

months ended

March

31,

2018

and selected balance sheet items as of

March

31,

2018:

(in thousands)	Power and Electro- Mechanical		Energy			Other			Total
Revenues from external customers	$	17,020	$	4,946		$	—		$	21,966
Depreciation and amortization (1)		364		366			—			730
Interest expense		53		2			59			114
Profit (loss) from operations		9		(2,524	)		(1,264	)		(3,779	)
Segment assets		45,401		29,645			8,879			83,925
Other intangible assets, net		8,906		6,702			—			15,608
Goodwill		13,097		4,723			—			17,820
Expenditures for long-lived assets (2)		320		73			—			393

(

)

For the Power and Electromechanical segment, for the

three

months ended

March

31,

2018,

depreciation and amortization includes

$201

thousand classified as cost of revenues in the Condensed Consolidated Statements of Operations.

(

)

Includes purchases of property, plant and equipment and the investment in other intangible assets.

The following information represents segment activity for the

three

months ended

March

31,

2017

and selected balance sheet items as of

March

31,

2017:

(in thousands)	Power and Electro- Mechanical			Energy			Other			Total
Revenues from external customers	$	13,662		$	4,182		$	—		$	17,844
Depreciation and amortization (1)		381			319			—			700
Interest expense		54			—			62			116
Loss from operations		(534	)		(2,264	)		(1,212	)		(4,010	)
Segment assets		49,414			29,180			309			78,903
Other intangibles assets, net		9,082			6,785			—			15,867
Goodwill		13,089			7,128			—			20,217
Expenditures for segment assets (2)		204			65			—			269

(

)

For the Power and Electromechanical segment, depreciation and amortization totals for the

three

months ended

March 31, 2017,

include

$148

thousand classified as cost of revenues in the Condensed Consolidated Statements of Operations.

(

)

Includes purchases of property plant and equipment and the investment in other intangible assets.

The following represents revenue by country:

(dollars in thousands)	For the Three Months Ended March 31,
	2018					2017
	Amount		%			Amount		%
USA	$	13,807		63	%	$	10,113		57	%
United Kingdom		3,360		15	%		3,083		17	%
All Others		4,799		22	%		4,648		26	%
Total	$	21,966		100	%	$	17,844		100	%