Revenue, Segment and Geographic Information

6 Months Ended

Jun. 30, 2021

Segment Reporting [Abstract]

Revenue, Segment and Geographic Information

NOTE 13 – REVENUE, SEGMENT AND GEOGRAPHIC INFORMATION

The Company operates in two reportable segments: the design and manufacture of high-performance customized computers and flash arrays, which is inclusive of in-flight entertainment & connectivity, and value-added reseller with minimal customization. The Company evaluates financial performance on a company-wide basis.  As of June 1, 2020, CDI’s operations became fully integrated and combined with the operation of OSS’ core business operations located in Escondido, California.  It is the Company’s intention to dissolve CDI as a standalone entity upon resolution of certain outstanding items.

Segment detail for the three and six month periods ended June 30, 2021 and 2020, is as follows:

	For the Three Months Ended June 30, 2021									For the Three Months Ended June 30, 2020
	OSS			Bressner			Total			OSS			Bressner			Total
Revenues	$	9,102,435		$	5,802,574		$	14,905,009		$	7,305,302		$	4,320,025		$	11,625,327
Cost of revenues		(5,762,867	)		(4,489,398	)		(10,252,265	)		(4,802,177	)		(3,497,955	)		(8,300,132	)
Gross profit		3,339,568			1,313,176			4,652,744			2,503,125			822,070			3,325,195
Gross margin %		36.7	%		22.6	%		31.2	%		34.3	%		19.0	%		28.6	%
Total operating expenses		(3,172,432	)		(963,662	)		(4,136,094	)		(2,844,838	)		(886,243	)		(3,731,081	)
Income (loss) from operations	$	167,136		$	349,514		$	516,650		$	(341,713	)	$	(64,173	)	$	(405,886	)
	For the Six Months Ended June 30, 2021									For the Six Months Ended June 30, 2020
	OSS			Bressner			Total			OSS			Bressner			Total
Revenues	$	17,704,406		$	10,516,355		$	28,220,761		$	15,745,525		$	9,239,439		$	24,984,964
Cost of revenues		(11,104,229	)		(8,031,004	)		(19,135,233	)		(10,923,086	)		(7,340,996	)		(18,264,082	)
Gross profit		6,600,177			2,485,351			9,085,528			4,822,439			1,898,443			6,720,882
Gross profit %		37.3	%		23.6	%		32.2	%		30.6	%		20.5	%		26.9	%
Total operating expenses		(6,424,217	)		(1,869,630	)		(8,293,847	)		(6,831,047	)		(1,806,875	)		(8,637,922	)
Income (loss) from operations	$	175,960		$	615,721		$	791,681		$	(2,008,608	)	$	91,568		$	(1,917,040	)

Revenue from customers with non-U.S. billing addresses represented approximately 65% and 56%, of the Company’s revenue during the three month periods ended June 30, 2021 and 2020, respectively. Revenue from customers with non-U.S. billing addresses represented approximately 65% and 64%, of the Company’s revenue during the six month periods ended June 30, 2021 and 2020, respectively.

As of June 30, 2021, substantially all the Company’s long-lived assets are located in the United States of America with the exception of assets of $202,804 located in Germany.