Note 9 - Segment information

We aggregate operating divisions into two reporting segments that have similar economic characteristics primarily in the following areas: (1) the nature of the product and services; (2) the nature of the production process; (3) the type or class of customer for their products and services; (4) the methods used to distribute their products or services; (5) if applicable, the nature of the regulatory environment. Based upon this evaluation, as of January 31, 2020, we had two segments – RF Connector and Cable Assembly (“RF Connector segment”) and Custom Cabling Manufacturing and Assembly (“Custom Cabling segment”).

The RF Connector segment consisted of one division and the Custom Cabling segment was composed of four divisions. The five divisions that met the quantitative thresholds for segment reporting are the RF Connector and Cable Assembly division (“RF Connector division”), Cables Unlimited, Rel-Tech, C Enterprises, and Schrofftech. While each segment has similar products and services, there was little overlapping of these services to their customer base. The biggest difference in segments is in the channels of sales: sales or product and services for the RF Connector segment were primarily through the distribution channel, while the Custom Cabling segment sales were through a combination of distribution and direct to the end customer.

Management identifies segments based on strategic business units that are, in turn, based along market lines. These strategic business units offer products and services to different markets in accordance with their customer base and product usage. For segment reporting purposes, the RF Connector division constitutes the RF Connector segment, and the Cables Unlimited, Rel-Tech, C Enterprises, and Schrofftech divisions constitute the Custom Cabling segment.

As reviewed by our chief operating decision maker, we evaluate the performance of each segment based on income or loss before income taxes. We charge depreciation and amortization directly to each division within the segment. Accounts receivable, inventory, property and equipment, right of use assets, goodwill and intangible assets are the only assets identified by segment. Except as discussed above, the accounting policies for segment reporting are the same for the Company as a whole.

Substantially all of our operations are conducted in the United States; however, we derive a portion of our revenue from export sales. We attribute sales to geographic areas based on the location of the customers. The following table presents the sales by geographic area for the three months ended January 31, 2020 and 2019 (in thousands):


	Three Months Ended January 31,
	2020		2019
United States	$	12,173	$	10,470
Foreign Countries:
Canada		116		165
Mexico		5		—
All Other		120		12
		241		177

Totals	$	12,414	$	10,647

Net sales, income before provision for income taxes and other related segment information for the three months ended January 31, 2020 and 2019 are as follows (in thousands):


	RF Connector		Custom Cabling
	and		Manufacturing and
2020	Cable Assembly		Assembly		Corporate		Total
Net sales	$	3,189	$	9,225	$	—	$	12,414
Income (loss) before provision for income taxes		282		(281)		11		12
Depreciation and amortization		42		213		—		255
Total assets		7,496		17,158		15,178		39,832

2019
Net sales	$	3,258	$	7,389	$	—	$	10,647
Income before provision for income taxes		280		506		22		808
Depreciation and amortization		45		92		—		137
Total assets		6,635		11,026		14,846		32,507