Segment, Customer and Geographical Reporting

12 Months Ended

Sep. 30, 2013

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

Note 17 – Segment, Customer and Geographical Reporting

Segment Financial Information

Operating segments are based upon Dynasil’s internal organizational structure, the manner in which the operations are managed, the criteria used by the Chief Operating Decision Makers (CODM) to evaluate segment performance and the availability of separate financial information. During the fourth quarter of fiscal year 2012, the Company changed its internal reporting structure and adjusted it reportable segments. Dynasil now reports four reportable 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. Dynasil’s 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. The Company’s segment information is summarized below:

Results of Operations for the Fiscal Year Ended September 30,
2013
	Contract Research			Optics			Instruments			Biomedical			Total
Revenue	$	21,888,746		$	15,564,766		$	5,104,812		$	194,508		$	42,752,832
Gross Profit		9,821,711			5,647,680			2,421,846			194,508			18,085,745
SG&A		9,345,214			5,624,291			3,486,729			969,532			19,425,766
Impairment of goodwill & long-lived assets		-			-			6,829,072			-			6,829,072
Operating Income (Loss)		476,497			23,389			(7,893,955)			(775,024)			(8,169,093)
GM %		44.9	%		36.3	%		47.4	%		100.0	%		42.3	%
Depreciation and Amortization		316,864			765,018			454,569			60,000			1,596,451
Capital expenditures		31,439			506,371			7,092			-			544,902
Intangibles, Net		332,717			882,296			2,089,573			179,997			3,484,583
Goodwill		4,938,625			1,302,358			-			-			6,240,983
Total Assets	$	9,831,209		$	12,380,248		$	4,253,926		$	211,843		$	26,677,226

Results of Operations for the Fiscal Year Ended September 30,
2012
	Contract Research			Optics			Instruments			Biomedical			Total
Revenue	$	25,273,308		$	16,055,952		$	6,452,603		$	105,287		$	47,887,150
Gross Profit		9,862,413			5,875,551			3,684,320			83,459			19,505,743
SG&A		9,523,642			5,398,350			5,065,794			939,149			20,926,935
Impairment of goodwill		-			-			2,284,499			-			2,284,499
Operating Income (Loss)		338,771			477,201			(3,665,973)			(855,690)			(3,705,691)
GM %		39.0	%		36.6	%		57.1	%		79.3	%		40.7	%
Depreciation and Amortization		237,623			796,847			575,246			60,003			1,669,719
Capital expenditures		348,314			462,445			207,454			-			1,018,213
Intangibles, Net		366,853			960,821			5,135,634			239,997			6,703,305
Goodwill		4,938,625			1,300,463			4,015,072			-			10,254,160
Total Assets	$	12,870,151		$	11,588,145		$	12,537,403		$	469,729		$	37,465,428

Customer Financial Information

For the years ended September 30, 2013 and 2012, the top three customers for the Contract Research segment were each various agencies of the U.S. Government. For the years ended September 30, 2013 and 2012, these customers made up 57.3% and 69.6%, respectively, of Contract Research revenue.

For the Optics segment, there was no customer whose revenue represented more than 10% of the total segment revenues for the years ended September 30, 2013 and 2012.

For the Instruments segment, there was one customer whose revenue represented 18.1% and 18.5%, respectively, of the Instruments segment revenue in the years ended September 30, 2013 and 2012.

For the Biomedical segment, there was one customer whose revenue represented 100% of the revenue for the year ended September 30, 2013. The Biomedical segment had no revenue or customers in the year ended September 30, 2012.

Geographic Financial Information

Revenues by geographic location in total and as a percentage of total revenue, for the years ended September 30, 2013 and 2012 are as follows:

	2013					2012
Geographic Location	Revenue		% of Total			Revenue		% of Total
United States	$	35,017,754		82	%	$	39,520,178		83	%
Europe		3,718,683		9	%		4,274,119		9	%
Other		4,016,395		9	%		4,092,853		8	%
	$	42,752,831		100	%	$	47,887,150		100	%