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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
%