SEGMENT REPORTING

12 Months Ended

Dec. 31, 2020

Dec. 31, 2019

Segment Reporting [Abstract]

SEGMENT REPORTING

NOTE 15 - 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 systems for use in public spaces, hospitals and other healthcare facilities (disinfectant 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.

For the year ended December 31, 2020, the company generated and incurred $5,645,998 of net sales, $4,664,938 of cost of goods sold, and other income (expense) of $10,936 from the hospitality segment of our business. For the year ended December 31, 2019, all net sales, cost of goods sold, and other income (expense) was generated or incurred from the hospitality segment of our business. For the year ended December 31, 2020, the company generated $86,736 of net sales, $58,460 of cost of goods sold, and other income (expense) of $0 from the disinfectant mirror segment of our business.

For the years ended December 31, 2020 and 2019, the hospitality segment of our business incurred $2,347,134 and $1,860,422, respectively, of selling, general and administrative expenses. For the years ended December 31, 2020 and 2019, the disinfectant mirror segment of our business incurred $97,691 and $55,781, respectively, of selling, general and administrative expenses.

For the years ended December 31, 2020 and 2019, the hospitality segment of our business incurred $115,946 and $0, respectively, of stock based compensation expense. For the years ended December 31, 2020 and 2019, the disinfectant mirror segment of our business incurred $571,558 and $0, respectively, of stock based compensation expense.

For the year ended December 31, 2020, all research and development costs were incurred from the disinfectant mirror segment of our business. The company did not incur any research and development costs for the year ended December 31, 2019.

As of December 31, 2020 and 2019, total assets from the hospitality segment of our business amounted to $12,655,779 and $4,142,785, respectively. As of December 31, 2020 and 2019, total assets from the disinfectant mirror segment of our business amounted to $463,042 and $626,602, respectively.

As of December 31, 2020 and 2019, total liabilities from the hospitality segment of our business amounted to $2,721,396 and $3,581,690, respectively. As of December 31, 2020 and 2019, total liabilities from the disinfectant mirror segment of our business amounted to $642,669 and $37,477, respectively.

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 systems for use in public spaces, hospitals and other healthcare facilities (disinfectant 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 years ended December 31, 2019 and 2018, the hospitality segment of our business incurred $1,860,422 and $1,857,240, respectively, of selling, general and administrative expenses. For the years ended December 31, 2019 and 2018, the disinfectant mirror segment of our business incurred $55,963 and $55,861, respectively, of selling, general and administrative expenses.

As of December 31, 2019 and 2018, total assets from the hospitality segment of our business amounted to $4,706,535 and $3,090,548, respectively. As of December 31, 2019 and 2018, total assets from the disinfectant mirror segment of our business amounted to $62,852 and $21,434, respectively.

As of December 31, 2019 and 2018, total liabilities from the hospitality segment of our business amounted to $3,581,690 and $4,471,181, respectively. As of December 31, 2019 and 2018, total liabilities from the disinfectant mirror segment of our business amounted to $37,477 and $57,417, respectively.