Segment, Customer and Geographical Reporting

3 Months Ended

Dec. 31, 2012

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

Note 9 – Segment, Customer and Geographical Reporting

Segment Financial Information

Dynasil’s business is comprised of four segments: contract research (“Contract Research”), optics (“Optics”), instruments (“Instruments”) and biomedical (“Biomedical”). Within these segments, there is a segregation of reportable units based upon the organizational structure used to evaluate performance and make decisions on resource allocation, as well as availability and materiality of separate financial results consistent with that structure. The Contract Research segment is one of the largest small business participants in U.S. government-funded research. The Optics segment manufactures optical materials, components and coatings. The Instruments segment manufactures specialized instruments used in various applications in the medical, industrial, and homeland security/defense sectors. The Biomedical segment is developing technologies for a wide spectrum of applications, including hematology, hypothermic core cooling and tissue sealants and will primarily pursue product commercialization of technologies and technology licensing opportunities though no assurance can be given that any of these technologies will become successfully commercialized.

The Company’s segment information for the three months ended December 31, 2012 and 2011 is summarized below:

Results of Operations for the Three Months Ended December 31,
2012
	Contract Research			Optics		Instruments			Biomedical			Total
Revenue		4,910,840			4,251,940		1,284,038			106,457			10,553,275
Gross Profit		2,214,053			1,700,555		605,801			106,457			4,626,866
Operating Income (Loss)		(606	)		385,676		(455,694	)		(120,663	)		(191,287	)
Depreciation and Amortization		62,782			185,628		163,048			15,000			426,458
Capital expenditures		186,330			122,146		7,092			-			315,568
Intangibles, Net		339,886			946,525		5,016,201			224,996			6,527,608
Goodwill		4,938,625			1,310,802		4,015,072			-			10,264,499
Total Assets		13,290,669			10,607,828		12,092,507			388,671			36,379,675

Results of Operations for the Three Months Ended December 31,
2011
	Contract Research		Optics		Instruments		Biomedical			Total
Revenue		6,225,283		3,912,551		1,983,536		10,925			12,132,295
Gross Profit		2,440,288		1,462,418		1,251,423		(27,181	)		5,126,948
Operating Income (Loss)		145,217		164,123		79,544		(202,556	)		186,328
Depreciation and Amortization		37,160		193,503		134,457		15,000			380,120
Capital expenditures		262,020		140,876		2,445		-			405,341
Intangibles, Net		429,400		1,075,619		5,493,933		285,000			7,283,952
Goodwill		4,938,625		1,283,775		6,299,571		-			12,521,971
Total Assets		11,284,826		13,692,936		15,351,880		384,688			40,714,330

Customer Financial Information

For the three months ended December 31, 2012 and 2011, the top three customers for the Contract Research segment were various agencies of the U.S. Government. For the three months ended December 31, 2012 and 2011, these customers made up 68% and 78%, respectively, of Contract Research revenue.

For the three months ended December 31, 2012 and 2011, there was no customer in the Optics segment whose revenue represented more than 10% of the total segment revenue for the three months ended December 31, 2012 and 2011.

For the three months ended December 31, 2012 and 2011, the top three customers for the Instruments segment made up 40% and 36%, respectively, of Instruments revenue.

For the three months ended December 31, 2012, the Biomedical segment had two customers whose revenue represented 100% of the total segment revenue. There was no revenue for the three months ended December 31, 2011.

Geographic Financial Information

Revenue by geographic location in total and as a percentage of total revenue, for the three months ended December 31, 2012 and 2011 are as follows:

	Three Months Ended					Three Months Ended
	December 31, 2012					December 31, 2011
Geographic Location	Revenue		% of Total			Revenue		% of Total
United States		8,494,488		80.5	%	$	10,028,479		82.7	%
Europe		888,341		8.4	%		1,126,352		9.3	%
Other		1,170,446		11.1	%		977,464		8.1	%
	$	10,553,275		100.0	%	$	12,132,295		100.0	%