Segment Reporting

12 Months Ended

Jun. 30, 2014

Segment Reporting [Abstract]

Segment Reporting

Segment Reporting

Management reviews financial information, allocates resources and manages the business as two segments, Sonomed-Escalon and Escalon Medical Corp. The Sonomed-Escalon segment consists of Sonomed, Escalon Digital Imaging and Trek, all of which are engaged in the development and sale of Ophthalmic medical devices. The Escalon Medical Corp. segment presents the administrative corporate operations of the consolidated group.

The table below sets forth the loss from continuing operations for the years ended June 30, 2014 and 2013.

	Sonomed Escalon					Corporate						Total
	2014		2013			2014			2013			2014			2013
Revenues, net:
Product revenue	$	12,354	$	11,497		$	—		$	—		$	12,354		$	11,497
Total revenue, net	12,354		11,497			—			—			12,354			11,497
Costs and expenses:															—
Cost of goods sold	6,292		5,905			—			—			6,292			5,905
Marketing, general & admin	4,698		5,300			415			419			5,113			5,719
Research & development	1,306		1,105			—			—			1,306			1,105
Goodwill impairment	—		—			—			—			—			—
Total costs and expenses	12,296		12,310			415			419			12,711			12,729
Income (loss) from operations	58		(813		)	(415		)	(419		)	(357		)	(1,232		)
Other (expense) and income:
Other income (expense)	—		—			7			78			7			78
Interest income	—		—			—			—			—			—
Interest expense	—		—			—			(79		)	—			(79		)
Total other (expense) and income	—		—			7			(1		)	7			(1		)
Income (loss) before taxes	58		(813		)	(408		)	(420		)	(350		)	(1,233		)
Income taxes benefit from continuing operations	—		—			—			—			—			—
Net (loss) income from continuing operations	$	58	$	(813	)	$	(408	)	$	(420	)	$	(350	)	$	(1,233	)

The Company operates in the healthcare market, specializing in the development, manufacture and marketing of ophthalmic medical devices and pharmaceuticals. The business segments reported above are the segments for which separate financial information is available and for which operating results are evaluated regularly by executive management in deciding how to allocate resources and assessing performance. The accounting policies of the business segments are the same as those described in the summary of significant accounting policies. For the purposes of this illustration, corporate expenses, which consist primarily of executive management and administrative support functions, are allocated across the business segments based upon a methodology that has been established by the Company, which includes a number of factors and estimates and that has been consistently applied across the business segments. These expenses are otherwise included in the corporate segment.

During the fiscal years ended June 30, 2014 and 2013, Sonomed-Escalon derived its revenue from the sale of A-Scans, B-Scans and pachymeters. These products are used for diagnostic or biometric applications in ophthalmology. Revenue from the sale of ISPAN gas products and various disposable ophthalmic surgical products are from CFA digital imaging systems and related products.

No customer represented more than 10% of consolidated revenue from continuing operations for the years ended June 30, 2014 and 2013. Foreign sales in 2014 increased $706,192 or 15% to $5,420,401.

	2014			2013
Sonomed-Escalon	$	5,420,401		$	4,714,209
Total	$	5,420,401		$	4,714,209
Total Net Revenue	$	12,353,796		$	11,496,834
	43.9		%	41.0		%