Segment, Customer and Geographical Reporting

3 Months Ended

Dec. 31, 2013

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, through Xcede Technologies, Inc., a majority owned, joint venture (“Xcede”), is focused on developing a tissue sealant technology for a wide spectrum of applications though no assurance can be given that this technology will become successfully commercialized.

As discussed in Note 2, substantially all the operating assets of the Instruments segment were sold in the three months ended December 31, 2013.

The Company’s segment information for the three months ended December 31, 2013 and 2012 is summarized below:

Results of Operations for the Three Months Ended December 31,
2013
	Contract
	Research		Optics		Instruments		Biomedical		Total
Revenue	$	5,840,442	$	4,098,508	$	772,578	$	-	$	10,711,528
Gross Profit		2,529,539		1,597,259		323,730		-		4,450,528
Operating Income (Loss)		348,394		398,428		1,041,768		(174,372)		1,614,218
Depreciation and Amortization		69,547		178,108		2,003		16,667		266,325
Capital expenditures		-		130,918		-		-		130,918
Intangibles, Net		324,185		869,974		-		163,333		1,357,492
Goodwill		4,938,625		1,317,698		-		-		6,256,323
Total Assets	$	10,359,612	$	12,538,356	$	752,431	$	504,904	$	24,155,303

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

Customer Financial Information

For the three months ended December 31, 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 December 31, 2013 and 2012, these customers made up 64% and 68%, respectively, of Contract Research revenue.

For the three months ended December 31, 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 months ended December 31, 2013 and 2012.

For the three months ended December 31, 2013 and 2012, the top three customers for the Instruments segment made up 24% and 40%, 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, 2013.

Geographic Financial Information

Revenue by geographic location in total and as a percentage of total revenue, for the three months ended December 31, 2013 and 2012 are as follows:

	Three Months Ended				Three Months Ended
	December 31, 2013				December 31, 2012
Geographic Location	Revenue		% of Total		Revenue		% of Total
United States	$	8,907,730	83	%	$	8,494,488	81	%
Europe		829,437	8	%		888,341	8	%
Other		974,361	9	%		1,170,446	11	%
	$	10,711,528	100	%	$	10,553,275	100	%