Segment, Customer and Geographical Reporting

9 Months Ended

Jun. 30, 2013

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

Note 10 – 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 June 30, 2013 and 2012 is summarized below:

Results of Operations for the Three Months Ended June 30,
2013
	Contract Research		Optics		Instruments		Biomedical		Total
Revenue	$	5,933,085	$	3,860,648	$	1,498,609	$	30,000	$	11,322,342
Gross Profit		2,514,235		1,500,419		783,225		30,000		4,827,879
Impairment of goodwill & long-lived assets		-0-		-0-		-0-		-0-		-0-
Operating Income (Loss)		22,869		25,402		(48,219)		(215,559)		(215,507)
Depreciation and Amortization		88,770		191,741		163,715		15,000		459,226
Capital expenditures		-0-		206,898		-0-		-0-		206,898
Intangibles, Net		332,800		848,046		2,230,334		194,997		3,606,177
Goodwill		4,938,625		1,197,503		-0-		-0-		6,136,128
Total Assets	$	13,562,650	$	8,780,459	$	5,142,707	$	262,955	$	27,748,771

Results of Operations for the Three Months Ended June 30,
2012
	Contract Research		Optics		Instruments		Biomedical		Total
Revenue	$	6,473,078	$	4,157,751	$	1,443,756	$	7,452	$	12,082,037
Gross Profit		2,487,372		1,696,071		794,875		6,341		4,984,659
Operating Income (Loss)		202,551		336,112		(441,905)		(236,109)		(139,351)
Depreciation and Amortization		59,058		184,512		133,203		15,000		391,773
Capital expenditures		3,273		(35,156)		108,583		-0-		76,700
Intangibles, Net		375,467		388		5,255,067		255,000		5,885,922
Goodwill		4,938,625		2,049,611		6,299,571		-0-		13,287,807
Total Assets	$	13,895,142	$	11,351,634	$	14,916,226	$	309,461	$	40,472,463

The Company’s segment information for the nine months ended June 30, 2013 and 2012 is summarized below:

Results of Operations for the Nine Months Ended June 30,
2013
	Contract Research		Optics		Instruments		Biomedical		Total
Revenue	$	16,331,775	$	12,044,354	$	3,796,967	$	187,051	$	32,360,147
Gross Profit		7,376,158		4,832,981		1,850,127		187,051		14,246,317
Impairment of goodwill & long-lived assets		-0-		-0-		6,763,072		-0-		6,763,072
Operating Income (Loss)		254,278		413,414		(7,774,714)		(547,786)		(7,654,808)
Depreciation and Amortization		231,189		562,065		491,147		45,000		1,329,401
Capital expenditures		(1,095)		416,580		7,092		-0-		422,577
Intangibles, Net		332,800		848,046		2,230,334		194,997		3,606,177
Goodwill		4,938,625		1,197,503		-0-		-0-		6,136,128
Total Assets	$	13,562,650	$	8,780,459	$	5,142,707	$	262,955	$	27,748,771

Results of Operations for the Nine Months Ended June 30,
2012
	Contract Research		Optics		Instruments		Biomedical		Total
Revenue	$	19,677,334	$	11,754,515	$	5,056,540	$	24,953	$	36,513,342
Gross Profit		7,699,303		4,629,856		2,883,666		(16,875)		15,195,950
Operating Income (Loss)		506,046		531,205		(901,357)		(688,633)		(552,739)
Depreciation and Amortization		153,995		533,612		402,359		45,000		1,134,966
Capital expenditures		350,492		289,685		123,851		-0-		764,028
Intangibles, Net		375,467		388		5,255,067		255,000		5,885,922
Goodwill		4,938,625		2,049,611		6,299,571		-0-		13,287,807
Total Assets	$	13,895,142	$	11,351,634	$	14,916,226	$	309,461	$	40,472,463

Customer Financial Information

For the three and nine months ended June 30, 2013 and 2012, the top three customers for the Contract Research segment were various agencies of the U.S. Government. For the three months ended June 30, 2013 and 2012, these customers made up 58% and 56%, respectively, of Contract Research revenue. For the nine months ended June 30, 2013 and 2012, these customers made up 59% and 70%, respectively, of Contract Research revenue.

For the three and nine months ended June 30, 2013 and 2012, there was no customer in the Optics segment whose revenue represented more than 10% of the total segment revenue for the three or the nine months ended June 30, 2013 and 2012.

For the three months ended June 30, 2013 and 2012, the top three customers for the Instruments segment made up 28% and 32%, respectively, of Instruments revenue. For the nine months ended June 30, 2013 and 2012, the top three customers for the Instruments segment made up 28% and 29%, respectively, of Instruments revenue. As of June 30, 2013, an international distributer represented 38% of the Instruments segments’ accounts receivable.

For the three and nine months ended June 30, 2013, the Biomedical segment had one customer whose revenue represented 100% of the total segment revenue. For the three and nine months ended June 30, 2012, the Biomedical segment had one customer whose revenue represented 100% of the total segment revenue.

Geographic Financial Information

Revenue by geographic location in total and as a percentage of total revenue, for the three months ended June 30, 2013 and 2012 are as follows:

	Three Months Ended					Three Months Ended
	June 30, 2013					June 30, 2012
Geographic Location	Revenue		% of Total			Revenue		% of Total
United States	$	9,426,542		83	%	$	10,130,936		84	%
Europe		975,941		9	%		981,147		8	%
Other		919,859		8	%		969,954		8	%
	$	11,322,342		100	%	$	12,082,037		100	%

Revenue by geographic location in total and as a percentage of total revenue, for the nine months ended June 30, 2013 and 2012 are as follows:

	Nine Months Ended					Nine Months Ended
	June 30, 2013					June 30, 2012
Geographic Location	Revenue		% of Total			Revenue		% of Total
United States	$	26,493,062		82	%	$	30,446,812		83	%
Europe		2,711,944		8	%		3,210,520		9	%
Other		3,155,141		10	%		2,856,010		8	%
	$	32,360,147		100	%	$	36,513,342		100	%