SEGMENT REPORTING

6 Months Ended

Jun. 30, 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 June 30, 2021, the company generated and incurred $964,618 of net sales and $746,451 of cost of goods sold from the hospitality segment of our business. For the three months ended June 30, 2021, the company generated and incurred $919,701 of net sales and $604,640 of cost of goods sold from the disinfectant segment of our business.

For the six months ended June 30, 2021, the company generated and incurred $2,532,469 of net sales and $1,817,775 of cost of goods sold from the hospitality segment of our business. For the six months ended June 30, 2021, the company generated and incurred $1,664,465 of net sales and $921,665 of cost of goods sold from the disinfectant segment of our business.

For the three months ended June 30, 2021, the hospitality segment of our business incurred $670,215 of selling, general and administrative expense. The disinfectant segment of our business incurred $1,562,667 of selling, general and administrative expense.

For the six months ended June 30, 2021, the hospitality segment of our business incurred $1,220,230 of selling, general and administrative expense. The disinfectant segment of our business incurred $2,403,428 of selling, general and administrative expense.

For the three and six months ended June 30, 2021, all research and development costs was incurred from the disinfectant segment of our business.

For the three months ended June 30, 2021, the hospitality segment of our business incurred $237,144 of stock-based compensation expense. For the three months ended June 30, 2021, the disinfectant segment of our business incurred $228,456 of stock-based compensation expense.

For the six months ended June 30, 2021, the hospitality segment of our business incurred $343,130 of stock-based compensation expense. For the six months ended June 30, 2021, the disinfectant segment of our business incurred $333,211 of stock-based compensation expense.

For the six and three months ended June 30, 2020, all net sales and cost of goods sold was generated or incurred from the hospitality segment of our business. During the six months ended June 30, 2020, the hospitality segment of our business incurred $762,761 of selling, general and administrative expenses. The disinfectant segment of our business incurred $52,114 of selling, general and administrative expenses. During the three months ended June 30, 2020, the hospitality segment of our business incurred $386,795 of selling, general and administrative expenses. The disinfectant segment of our business incurred $39,882 of selling, general and administrative expenses.

As of June 30, 2021 and December 31, 2020 assets from the hospitality segment of our business was $1,211,523 and $12,655,779, respectively. As of June 30, 2021 and December 31, 2020, total assets from the disinfectant segment of our business was $10,078,639 and $463,042, respectively. As of June 30, 2021 and December 31, 2020, total assets allocated to our corporate segment was $7,150,572 and $0, respectively. 

As of June 30, 2021 and December 31, 2020, total liabilities from the hospitality segment of our business was $2,245,768 and $2,430,349, respectively. As of June 30, 2021 and December 31, 2020, total liabilities from the disinfectant segment of our business amounted to $1,304,952 and $642,669, respectively. As of June 30, 2021 and December 31, 2020, total liabilities allocated to our corporate segment was $435,577 and $0, respectively.