Operating Segments and Related Information

3 Months Ended

Mar. 31, 2014

Operating Segments and Related Information [Abstract]

Segment Reporting Disclosure

Operating Segments and Related Information

The Company's operations are focused on two primary business areas:  Spire Solar (comprised of solar equipment and solar research) and Spire Biomedical (comprised of biomedical surface treatments and biophotonics research).  Spire Solar and Spire Biomedical operate out of the Company's facility in Bedford, Massachusetts. Each business area is independently managed and has separate financial results that are reviewed by the Board of Directors and Chief Executive Officer and the chief executive officers of each operating division.

On September 18, 2013, the Company completed the sale of the Bio Business Unit to N2 Bio, whereas the Company has a controlling financial interest in N2 Bio and is less than wholly-owned by the Company. N2 Bio qualifies as a variable interest entity and the Company is determined to be the primary beneficiary; therefore assets, liabilities and results of operations of N2 Bio are consolidated into the Company's financial statements. The Bio Business Unit is being reported in our biomedical segment. See Note 14 to the unaudited condensed consolidated financial statements.

The following table presents certain operating division information in accordance with the provisions of ASC 280, Segments Reporting.

(in thousands)	Solar			Biomedical		Consolidated
For the three months ended March 31, 2014
Net sales and revenues	$	2,243		$	1,843	$	4,086
Income (loss) from operations	$	(3,186	)	$	557	$	(2,629	)
For the three months ended March 31, 2013
Net sales and revenues	$	1,446		$	1,792	$	3,238
Income (loss) from operations	$	(2,792	)	$	190	$	(2,602	)

Income (loss) from operations is net sales and revenues less cost of sales, selling, general and administrative expenses and internal research and development, but is not affected by non-operating income (expense) or by income taxes. In calculating income (loss) from operations for individual business units, substantial administrative expenses incurred at the operating level that are common to more than one segment are allocated on a net sales basis. Certain corporate expenses of an operational nature are also allocated to the divisions based on factors including occupancy, employment, and purchasing volume. All intercompany transactions have been eliminated.

The following table shows net sales and revenues by geographic area (based on customer location):

	Three Months Ended March 31,
(in thousands)	2014		%		2013		%
United States	$	2,610	64	%	$	2,273	70	%
Asia	728		18		609		19
Europe/Africa	567		14		336		10
Rest of the world	181		4		20		1
	$	4,086	100	%	$	3,238	100	%

Revenues from contracts with United States government agencies for the three months ended March 31, 2014 and 2013 were approximately $1 thousand and $0.4 million or 0.02% and 14% of total net sales and revenues, respectively.

Revenues from the delivery of biomedical services to two customers accounted for 18% and 18% of total net sales and revenues for the three month period ended March 31, 2014. Revenues from the delivery of equipment research and development to one customer and solar equipment to one customer accounted for 26% and 12%, respectively, of total net sales and revenues for the three month period ended March 31, 2014.

 Revenues from the delivery of biomedical services to two customers accounted for 23% and 16% of total net sales and revenues for the three month period ended March 31, 2013.

Three customers represented approximately 26%, 33% and 12%, respectively, of net accounts receivable, trade at March 31, 2014 and two customers represented approximately 36% and 17% of net accounts receivable, trade at December 31, 2013.