Reportable Business Segments

12 Months Ended

Dec. 31, 2014

Segment Reporting [Abstract]

Reportable Business Segments

Note 4 – Reportable Business Segments

For the nine months ended September 30, 2014, we reported our business in two operating segments in addition to corporate expenses of selling, general and administrative functions. See note 3 for a discussion of the business acquired giving rise to segment reporting. These operating segments were:

· Our reprocessed plastics segment typically purchased various plastic wastes and through its efforts, reprocessed that plastic waste into flakes or pellets which became raw material for other manufacturers, our customers. In certain situations we applied our processes to our customers’ inventory of plastic waste, and returned it to them including a charge for our tolling effort.

· Our engineered products segment takes certain recycled plastics and plastic composites, and through a proprietary extrusion process, manufactures rail ties, construction mats, boards, I-beams, etc. through two product lines. Our ECOTRAX product line primarily serves the rail industry by selling all lengths of rail ties. Our STRUXURE product line sells products supporting other infrastructure requirements, with a current focus on heavy- and light-equipment construction mats.

Our segment reporting was consistent with the then current manner of how our Chief Operating Decision Maker (“CODM”) and our board of directors viewed our business.

In order to position our strategic focus to allow our CODM and management to make business decisions, during the nine months ended September 30, 2014, we reported two segments – our reprocessed plastics segment and our engineered products segment. Decisions regarding allocation of resources and investment of capital were made based on the reportable segments contribution to the financial success of the consolidated enterprise.

Based on our financial results for the reprocessed plastics business during the six months ended June 30, 2014, we decided during the three months ended September 30, 2014 to transition the assets acquired of the reprocessing plastics business to our business of extruding our proprietary products. Beginning October 1, 2014, after we had ceased operating our reprocessed plastics segment, we no longer have two reportable business segments as of September 30, 2014.