Segment, Customer and Geographical Reporting

9 Months Ended

Jun. 30, 2014

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 3, 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 June 30, 2014 and 2013 is summarized below:

Results of Operations for the Three Months Ended June 30,
2014
	Contract Research		Optics		Instruments		Biomedical		Total
Revenue	$	5,460,853	$	5,172,217	$	-	$	7,457	$	10,640,527
Gross Profit		2,121,495		1,778,695		-		7,457		3,907,647
Impairment of goodwill		-		-		-		-		-
Operating Income (Loss)		64,007		224,705		39,983		(172,509)		156,186
Depreciation and Amortization		70,149		189,381		-		15,000		274,530
Capital expenditures		-		1,937,479		-		-		1,937,479
Intangibles, Net		307,118		893,062		-		133,333		1,333,513
Goodwill		4,938,625		1,393,771		-		-		6,332,396
Total Assets	$	9,451,010	$	16,053,222	$	335,290	$	632,094	$	26,471,616

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		1,372,490		783,225		30,000		4,699,950
Impairment of goodwill & long-lived assets		-		-		-		-		-
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		-		206,898		-		-		206,898
Intangibles, Net		332,800		848,046		2,230,334		194,997		3,606,177
Goodwill		4,938,625		1,197,503		-		-		6,136,128
Total Assets	$	13,562,650	$	8,780,459	$	5,142,707	$	262,955	$	27,748,771

The Company’s segment information for the nine months ended June 30, 2014 and 2013 is summarized below:

Results of Operations for the Nine Months Ended June 30,
2014
	Contract Research		Optics		Instruments		Biomedical		Total
Revenue	$	16,915,355	$	14,059,393	$	772,578	$	11,186	$	31,758,512
Gross Profit		7,092,752		5,295,215		317,908		11,186		12,717,061
Impairment of goodwill		-		-		-		-		-
Operating Income (Loss)		654,339		1,145,249		1,006,161		(568,120)		2,237,629
Depreciation and Amortization		209,645		550,989		2,003		46,666		809,303
Capital expenditures		12,028		2,606,365		-		-		2,618,393
Intangibles, Net		307,118		893,062		-		133,333		1,333,513
Goodwill		4,938,625		1,393,771		-		-		6,332,396
Total Assets	$	9,451,010	$	16,053,222	$	335,290	$	632,094	$	26,471,616

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		4,434,381		1,850,127		187,051		13,847,717
Impairment of goodwill & long-lived assets		-		-		6,763,072		-		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		-		422,577
Intangibles, Net		332,800		848,046		2,230,334		194,997		3,606,177
Goodwill		4,938,625		1,197,503		-		-		6,136,128
Total Assets	$	13,562,650	$	8,780,459	$	5,142,707	$	262,955	$	27,748,771

Customer Financial Information

For the three and nine months ended June 30, 2014 and 2013, the top three customers for the Contract Research segment were various agencies of the U.S. Government. For the three months ended June 30, 2014 and 2013, these customers made up 68% and 58%, respectively, of Contract Research revenue. For the nine months ended June 30, 2014 and 2013, these customers made up 67% and 59%, respectively, of Contract Research revenue.

For the three and nine months ended June 30, 2014, a single customer in the Optics segment made up 18% and 10%, respectively of the total segment revenue. For the three and nine months ended June 30, 2013, there was no customer in the Optics segment whose revenue represented more than 10% of the total segment revenue.

For the three months ended June 30, 2014, there was no revenue in the Instruments segment. For the three months ended June 30, 2013, the top three customers for the Instruments segment made up 28% of Instruments revenue. For the nine months ended June 30, 2014 and 2013, the top three customers for the Instruments segment made up 24% and 28%, respectively, of Instruments revenue.

For both the three and nine months ended June 30, 2014 and 2013, 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, 2014 and 2013 are as follows:

	Three Months Ended					Three Months Ended
	June 30, 2014					June 30, 2013
Geographic Location	Revenue		% of Total			Revenue		% of Total
United States	$	8,254,373		78	%	$	9,426,542		83	%
Europe		688,855		6	%		975,941		9	%
Other		1,697,299		16	%		919,859		8	%
	$	10,640,527		100	%	$	11,322,342		100	%

Revenue by geographic location in total and as a percentage of total revenue, for the nine months ended June 30, 2014 and 2013 are as follows:

	Nine Months Ended				Nine Months Ended
	June 30, 2014				June 30, 2013
Geographic Location	Revenue		% of Total		Revenue		% of Total
United States	$	25,783,653	81	%	$	26,493,062	82	%
Europe		2,363,255	8	%		2,711,944	8	%
Other		3,611,604	11	%		3,155,141	10	%
	$	31,758,512	100	%	$	32,360,147	100	%