Segment, Customer and Geographical Reporting

3 Months Ended

Dec. 31, 2015

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

Note 10 – Segment, Customer and Geographical Reporting

Segment Financial Information

Dynasil’s business is comprised of three segments: optics (“Optics”), contract research (“Contract Research”) and biomedical (“Biomedical”). The Company’s Instruments segment was substantially disposed of in the first quarter of fiscal 2014, has had no subsequent operations and had no remaining assets as of December 31, 2015. Consequently, it is no longer reported as a separate segment. At December 31, 2014, the Company had approximately $0.3 million of assets related to the businesses formerly comprising the Instruments segment.

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 Optics segment manufactures optical materials, components and coatings. The Contract Research segment is one of the largest small business participants in U.S. government-funded research. The Biomedical segment, through Xcede Technologies, Inc., a majority owned, joint venture, is focused on developing a tissue sealant technology though no assurance can be given that this technology will become successfully commercialized.

The Company’s segment information for the three months ended December 31, 2015 and 2014 is summarized below:

Results of Operations for the Three Months Ended December 31,
2015
				Contract
	Optics			Research			Biomedical		Total
Revenue	$	6,214,000		$	4,990,000		$	-	$	11,204,000
Gross Profit		2,110,000			1,855,000			-		3,965,000
GM %		34.0	%		37.2	%		-		35.4	%
SG&A		1,751,000			1,706,000			348,000		3,805,000
Gain on sale of assets		4,000			-			-		4,000
Operating Income (Loss)		363,000			149,000			(348,000)		164,000
Depreciation and Amortization		228,000			80,000			17,000		325,000
Capital expenditures		565,000			7,000			31,000		603,000
Intangibles, Net		644,000			256,000			297,000		1,197,000
Goodwill		1,155,000			4,939,000			-		6,094,000
Total Assets	$	16,506,000		$	8,273,000		$	857,000	$	25,636,000

Results of Operations for the Three Months Ended December 31,
2014
				Contract
	Optics			Research			Biomedical		Total
Revenue	$	4,948,000		$	4,663,000		$	-	$	9,611,000
Gross Profit		1,495,000			2,098,000			-		3,593,000
GM %		30.2	%		45.0	%		-		37.4	%
SG&A		2,091,000			1,881,000			235,000		4,207,000
Gain on sale of assets		185,000			-			-		185,000
Operating Income (Loss)		(410,000)			216,000			(235,000)		(429,000)
Depreciation and Amortization		204,000			74,000			15,000		293,000
Capital expenditures		244,000			-			-		244,000
Intangibles, Net		752,000			290,000			229,000		1,271,000
Goodwill		1,232,000			4,939,000			-		6,171,000
Total Assets	$	15,419,000		$	9,036,000		$	922,000	$	25,377,000

Customer Financial Information

For the three months ended December 31, 2015, one customer in the Optics segment represented more than 10% of the total segment revenue. For the three months ended December 31, 2014, the single largest customer in the Optics segment made up 21% and 9%, respectively of the total segment revenue.

For the three months ended December 31, 2015, five customers of the Contract Research segment, all various agencies of the U.S. Government, each represented more than 10% of the total segment revenue. For the three months ended December 31, 2015 and 2014, these customers made up 76% and 74%, respectively, of Contract Research revenue.

Geographic Financial Information

Revenue by geographic location in total and as a percentage of total revenue, for the three months ended December 31, 2015 and 2014 are as follows:

	Three Months Ended					Three Months Ended
	December 31, 2015					December 31, 2014
Geographic Location	Revenue		% of Total			Revenue		% of Total
United States	$	8,235,000		74	%	$	7,682,000		80	%
Europe		2,041,000		18	%		884,000		9	%
Other		928,000		8	%		1,045,000		11	%
	$	11,204,000		100	%	$	9,611,000		100	%