SEGMENT REPORTING

9 Months Ended

Sep. 30, 2020

SEGMENT REPORTING

SEGMENT REPORTING

NOTE 14 - SEGMENT REPORTING

FASB Codification Topic 280, Segment Reporting, establishes standards for reporting financial and descriptive information about an enterprise’s reportable segments. The Company has two reportable segments: the design, manufacture, assembly and distribution of automated disinfecting mirror systems for use in hospitals and other healthcare facilities (disinfectant mirror segment) and the manufacture of fine mirrors specifically for the hospitality industry (hospitality segment). The segments are determined based on several factors, including the nature of products and services, the nature of production processes, customer base, delivery channels and similar economic characteristics.

An operating segment’s performance is evaluated based on its pre-tax operating contribution, or segment income. Segment income is defined as net sales less cost of sales, and segment selling, general and administrative expenses, and does not include amortization of intangibles, stock-based compensation, other charges (income), net and interest and other, net.

All net sales, cost of goods sold, and other income (expense) was generated or incurred from the hospitality segment of our business. For the nine months ended September 30, 2020 and 2019, the hospitality segment of our business incurred $1,371,531 and $1,335,583, respectively, of selling, general and administrative expenses. For the nine months ended September 30, 2020 and 2019, the disinfectant mirror segment of our business incurred $110,483 and $41,521, respectively, of selling, general and administrative expenses. For the nine months ended September 30, 2020 and 2019, the disinfectant mirror segment of our business incurred $65,037 and $0, respectively, of research and development expenses

As of September 30, 2020 and December 31, 2019 assets from the hospitality segment of our business amounted to $7,495,572 and $4,706,535, respectively. As of September 30, 2020 and December 31, 2019, total assets from the disinfectant mirror segment of our business amounted to $266,306 and $62,852, respectively.

As of September 30, 2020 and December 31, 2019, total liabilities from the hospitality segment of our business amounted to $2,178,425 and $3,347,120, respectively. As of September 30, 2020 and December 31, 2019, total liabilities from the disinfectant mirror segment of our business amounted to $137,941 and $37,477, respectively.