17.

SEGMENT AND RELATED INFORMATION

The Company operates

three

reportable business segments: (

) Aerospace Components, (

) Commercial Air Handling, (

) and Industrial Hose. The Company operated the Test and Measurement business segment through

June 1, 2018,

at which time it was sold to Hickok Waekon, LLC. The Company's management evaluates segment performance based primarily on operating income. Certain corporate costs are allocated to the segments and interest expense directly related to financing the acquisition of a business is allocated to that segment, respectively. Intangible assets are allocated to each segment and the related amortization of these assets are recorded in selling, general and administrative expenses.

Aerospace Components:

The Aerospace Components segment was added

July 1, 2018,

when the Company purchased all of the issued and outstanding shares of capital stock of CAD Enterprises, Inc. (“CAD”) in Phoenix, Arizona. This segment manufactures precision components primarily for customers in the aerospace industry. This segment provides complete end-to-end engineering, machining, grinding, welding, brazing, heat treat and assembly solutions. Utilizing state-of-the-art machining and welding technologies, this segment is an industry leader in providing complex components produced from nickel-based superalloys and stainless steels. Our quality certifications include ISO

9001:2015/AS9100D,

as well as Nadcap accreditation for Fluorescent Penetrant Inspection (FPI), Heat Treating/Braze, Non-Conventional Machining EDM, TIG/E-Beam welding.

Commercial Air Handling:

The Commercial Air Handling segment was added

June 1, 2017,

when the Company purchased certain assets and assumed certain liabilities of Air Enterprises Acquisition LLC in Akron, Ohio. The acquired business, which operates under the name Air Enterprises, is an industry leader in designing, manufacturing and installing large-scale commercial, institutional, and industrial custom air handling solutions. Its customers are typically in the health care, education, pharmaceutical and industrial manufacturing markets in the United States. This segment also sells to select international markets. The custom air handling units are constructed of non-corrosive aluminum, resulting in sustainable, long-lasting, and energy efficient solutions with life expectancies of

years or more. These products are distributed through a network of sales representatives, based on relationships with health care networks, building contractors and engineering firms. The custom air handling equipment is designed, manufactured and installed under the brand names FactoryBilt® and SiteBilt®. FactoryBilt® air handling solutions are designed, fabricated and assembled in a vertically integrated process entirely within the Akron, Ohio facility. SiteBilt® air handling solutions are designed and fabricated in Akron, but are then crated and shipped to the field and assembled on-site.

Industrial Hose:

The Industrial Hose segment was added

July 1, 2016,

when the Company purchased the assets of the Federal Hose Manufacturing, LLC in Painesville, Ohio. This business segment includes the manufacture of flexible interlocking metal hoses and the distribution of silicone and hydraulic hoses. Metal hoses are sold primarily to major heavy-duty truck manufacturers and major aftermarket suppliers in North America. Metal hoses are also sold into the agricultural, industrial and petrochemical markets. Silicone hoses are distributed to a number of industries in North America, including agriculture and general industrial markets.

Test and Measurement:

The Test and Measurement segment is the legacy business that was started in

1910

when the Company was founded, and was sold

June 1, 2018.

This business segment included electronic testing products designed and manufactured for the automotive and trucking industries and included indicators and gauges for the locomotive and aircraft industries. The automotive diagnostic products are sold to original equipment manufacturers and to the aftermarket under several brand names and through a variety of distribution methods. In the aircraft industry, primary customers are manufacturers of commercial, military and personal airplanes. In the locomotive industry, indicators and gauges are sold to manufacturers and servicers of railroad equipment and locomotives.

Corporate and Other:

Corporate costs

not

allocated to the

three

primary business segments are aggregated with the results of DG, acquired in

April 2019.

	Year Ended December 31, 2019
	Commercial Air Handling		Aerospace Components		Industrial Hose		Corporate and Other			Consolidated
Sales	$	51,564,344	$	30,126,438	$	7,171,164	$	836,581		$	89,698,527
Gross Profit		12,350,412		5,015,003		1,970,149		239,071			19,574,635
Operating Income		7,141,097		2,876,304		859,114		(365,849	)		10,510,666
Pretax Income		7,140,398		2,073,239		635,995		(430,142	)		9,419,490
Net Income		5,291,035		1,536,270		471,272		(318,714	)		6,979,863

	Year Ended December 31, 2018
	Commercial Air Handling		Aerospace Components		Industrial Hose		Corporate and Other			Consolidated
Sales		41,833,444		14,397,557		6,942,886		3,204,419			66,378,306
Gross Profit		11,046,113		1,653,123		1,813,752		790,979			15,303,967
Operating Income		6,409,687		807,860		820,881		(723,969	)		7,314,459
Pretax Income		6,328,158		630,966		619,909		(2,297,303	)		5,281,730
Net Income		4,746,119		473,225		464,461		(2,070,095	)		3,613,710

Geographical Information

Included in the consolidated financial statements are the following amounts related to geographic locations:

	Year Ended December 31, 2019		Year Ended December 31, 2018


United States of America	$	89,370,005	$	64,874,554
Canada		283,011		351,211
China		23,134		-
Mexico		-		53,246
Poland		1,750		10,299
Peru		12,202		-
Other		8,425		1,088,996
	$	89,698,527	$	66,378,306

All export sales to foreign countries are made in US Dollars.