SEGMENT REPORTING

3 Months Ended

Mar. 31, 2021

Segment Reporting [Abstract]

SEGMENT REPORTING

NOTE 12 - 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 disinfecting systems for use in healthcare, hospitality, and commercial municipal and residential markets (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, segment selling, general and administrative expenses, research and development costs and stock-based compensation. It does not include other charges (income), net and interest and other, net.

For the three months ended March 31, 2021, the company generated and incurred $1,567,851 of net sales and $1,071,324 of cost of goods sold from the hospitality segment of our business. For the three months ended March 31, 2021, the company generated and incurred $744,764 of net sales and $317,025 of cost of goods sold from the disinfectant segment of our business.

For the three months ended March 31, 2021, the hospitality segment of our business incurred $550,015 of selling, general and administrative expense. The disinfectant segment of our business incurred $840,761 of selling, general and administrative expense.

For the three months ended March 31, 2021, all research and development costs was incurred from the disinfectant segment of our business.

For the three months ended March 31, 2021, the hospitality segment of our business incurred $105,986 of stock-based compensation expense. For the three months ended March 31, 2021, the disinfectant segment of our business incurred $104,755 of stock-based compensation expense.

For the three months ended March 31, 2020, all net sales and cost of goods sold was generated or incurred from the hospitality segment of our business. The hospitality segment of our business incurred $316,416 of selling, general and administrative expenses. The disinfectant segment of our business incurred $12,231 of selling, general and administrative expenses.

As of March 31, 2021 and December 31, 2020 assets from the hospitality segment of our business was $1,266,576 and $12,665,779, respectively. As of March 31, 2021 and December 31, 2020, total assets from the disinfectant segment of our business was $10,198,741 and $463,042, respectively. As of March 31, 2021 and December 31, 2020, total assets allocated to our corporate segment was $8,870,401 and $0, respectively. 

As of March 31, 2021 and December 31, 2020, total liabilities from the hospitality segment of our business was $2,354,747 and $2,721,396, respectively. As of March 31, 2021 and December 31, 2020, total liabilities from the disinfectant segment of our business amounted to $1,591,947 and $642,669, respectively. As of March 31, 2021 and December 31, 2020, total liabilities allocated to our corporate segment was $446,525 and $0, respectively.