Note 6 - Segment Reporting

9 Months Ended

Sep. 30, 2023

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

Note 6 - Segment Reporting

Segment information reported in the tables below represents the operating segments of the Company organized in a manner consistent with which separate information is available and for which segment results are evaluated regularly by our chief operating decision-maker in assessing performance and allocating resources. Our activities are organized into two major segments: facilities and systems integration. Our facilities unit is involved in the design, project management and maintenance of data center and mission-critical business operations. Our systems integration unit integrates IT equipment for OEM vendors and customers to be used inside data center environments, including modular data centers, and also includes our reseller services where we procure equipment to be used in our integration activities. All revenues are derived from the U.S. market. Segment operating results reflect earnings before acquisition related expenses, other expenses, net, and provision for income taxes.

Revenue and operating results by reportable segment reconciled to reportable net income (loss) for the three and nine-month periods ended September 30, 2023 and 2022 and other segment-related information is as follows (in ‘000’s, unaudited):

	Three Months Ended September 30,					Nine Months Ended September 30,
	2023		2022			2023			2022
Revenues:
Facilities	$	1,804	$	3,309		$	5,603		$	8,987
Systems integration services		7,076		4,768			24,388			10,703
Total revenues	$	8,880	$	8,077		$	29,991		$	19,690
Depreciation and amortization expense:
Facilities	$	36	$	52		$	104		$	161
Systems integration services		36		16			145			87
Consolidated depreciation and amortization expense	$	72	$	68		$	249		$	248
Income from operations:
Facilities	$	240	$	1,036		$	1,051		$	2,276
Systems integration services		475		(165	)		(26	)		(639	)
Total income from operations	$	715	$	871		$	1,025		$	1,637
Interest expense, net:
Facilities	$	7	$	164		$	199		$	345
Systems integration services		475		91			1,043			192
Consolidated interest expense	$	482	$	255		$	1,242		$	537

	September 30, 2023		December 31, 2022
Total Assets:
Facilities	$	730	$	675
Systems integration services		8,828		3,790
Other consolidated activities		35,039		26,941
Total	$	44,597	$	31,406

Other consolidated activities include assets not specifically attributable to each business segment including cash and cash equivalents, prepaid expenses and other assets that are managed at a corporate level.