Segment, Customer and Geographical Reporting

12 Months Ended

Sep. 30, 2015

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. Dynasil 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 manufactured specialized instruments used in various applications in the medical, industrial, and homeland security/defense sectors until substantially all its businesses were sold in the first quarter of fiscal year 2014. The Biomedical segment consists of a single business unit, Dynasil Biomedical Corporation (“Dynasil Biomedical”), a medical technology incubator which owns rights to certain early stage medical technologies. Dynasil Biomedical holds the common stock of the Xcede joint venture which is developing a tissue sealant technology and currently has no other operations. The Company’s segment information is summarized below:

Results of Operations for the Fiscal Year Ended September 30,
2015
	Contract
	Research			Optics			Instruments		Biomedical		Total
Revenue	$	18,753,000		$	21,783,000		$	-	$	-	$	40,536,000
Gross Profit		8,176,000			7,076,000			-		-		15,252,000
GM %		43.6	%		32.5	%		-		-		37.6	%
SG&A		7,629,000			6,516,000			-		1,151,000		15,296,000
Gain on sale of assets		-			178,000			-		-		178,000
Operating Income (Loss)		547,000			738,000			-		(1,151,000)		134,000
Depreciation and Amortization		296,000			839,000			-		61,000		1,196,000
Capital expenditures		18,000			1,166,000			-		119,000		1,303,000
Intangibles, Net		264,000			678,000			-		283,000		1,225,000
Goodwill		4,939,000			1,192,000			-		-		6,131,000
Total Assets	$	7,692,000		$	15,948,000		$	48,000	$	828,000	$	24,516,000

Results of Operations for the Fiscal Year Ended September 30,
2014
	Contract
	Research			Optics			Instruments			Biomedical			Total
Revenue	$	21,935,000		$	19,590,000		$	773,000		$	11,000		$	42,309,000
Gross Profit		9,301,000			7,100,000			318,000			11,000			16,730,000
GM %		42.4	%		36.2	%		41.1	%		100.0	%		39.5	%
SG&A		8,546,000			5,482,000			527,000			778,000			15,333,000
Gain on sale of assets		-			-			1,297,000			-			1,297,000
Operating Income (Loss)		755,000			1,618,000			1,087,000			(765,000)			2,695,000
Depreciation and Amortization		280,000			781,000			2,000			60,000			1,123,000
Capital expenditures		12,000			1,326,000			-			110,000			1,448,000
Intangibles, Net		299,000			854,000			-			230,000			1,383,000
Goodwill		4,939,000			1,308,000			-			-			6,247,000
Total Assets	$	8,857,000		$	16,019,000		$	313,000		$	1,188,000		$	26,377,000

Customer Financial Information

For the years ended September 30, 2015 and 2014, the top three customers for the Contract Research segment were each various agencies of the U.S. Government. For the years ended September 30, 2015 and 2014, these customers made up 57% and 69%, respectively, of Contract Research revenue.

For the Optics segment, there was one customer whose revenue represented 9% and 11% of the total segment revenues for the years ended September 30, 2015 and 2014.

Neither the Instruments nor the Biomedical segment had any revenue in the year ending September 30, 2015. One customer’s revenue represented 10% of the Instruments segment revenue in the year ended September 30, 2014. One customer’s revenue represented 100% of the Biomedical segment revenue for the year ended September 30, 2014.

Geographic Financial Information

Revenues by geographic location in total and as a percentage of total revenue, for the years ended September 30, 2015 and 2014 are as follows:

	2015					2014
Geographic Location	Revenue		% of Total			Revenue		% of Total
United States	$	30,928,000		76	%	$	33,936,000		80	%
Europe		4,902,000		12	%		3,001,000		7	%
Other		4,706,000		12	%		5,372,000		13	%
	$	40,536,000		100	%	$	42,309,000		100	%