Activity of Business Segments

The

Company operates through

three

business segments:

Building Supply

: consisting of a line of construction supply weatherization products. The construction supply weatherization products consist of housewrap and synthetic roof underlayment, as well as other woven material. The majority of the Company’s equity in income of unconsolidated affiliate (Harmony) is included in the total segment income for the Building Supply segment.

Disposable Protective Apparel

: consisting of a complete line of disposable protective clothing, such as shoecovers (including the Aqua Trak® and spunbond shoecovers), bouffant caps, coveralls, frocks, lab coats, gowns and hoods for the pharmaceutical, cleanroom, industrial and medical markets. A portion of the Company’s equity in income of unconsolidated affiliate (Harmony) is included in the total segment income for the Disposable Protective Apparel segment.

Infection Control

: consisting of a line of face masks and eye shields.

Segment data excludes charges allocated to the principal executive office

and other unallocated expenses and income tax. The Company evaluates the performance of its segments and allocates resources to them based primarily on net sales.

The following table

presents consolidated net sales for each segment for the

three

and

nine

months ended

September 30, 2017

and

2016:

	For the Three Months Ended				For the Nine Months Ended
	September 30,				September 30,
	2017		2016		2017		2016
Building Supply	$	7,076,000	$	7,022,000	$	19,298,000	$	21,700,000
Disposable Protective Apparel		3,845,000		3,698,000		10,914,000		11,147,000
Infection Control		1,128,000		1,059,000		3,870,000		3,487,000
Consolidated net sales	$	12,049,000	$	11,779,000	$	34,082,000	$	36,334,000

The following table

presents the reconciliation of consolidated segment income to consolidated net income for the

three

and

nine

months ended

September 30, 2017

and

2016:

	For the Three Months Ended				For the Nine Months Ended
	September 30,				September 30,
	2017		2016		2017		2016
Building Supply	$	1,339,000	$	1,618,000	$	3,471,000	$	4,287,000
Disposable Protective Apparel		764,000		617,000		1,977,000		1,327,000
Infection Control		396,000		375,000		1,405,000		1,211,000
Total segment income		2,499,000		2,610,000		6,853,000		6,825,000

Unallocated corporate overhead expenses		893,000		1,162,000		3,328,000		3,462,000
Provision for income taxes		503,000		429,000		1,068,000		1,040,000
Consolidated net income	$	1,103,000	$	1,019,000	$	2,457,000	$	2,323,000

The following table

presents the consolidated net property and equipment, goodwill and definite-lived intangible assets (“consolidated assets”) by segment as of

September 30, 2017

and

December 31, 2016:

	September 30,		December 31,
	2017		2016

Building Supply	$	2,168,000	$	2,208,000
Disposable Protective Apparel		341,000		346,000
Infection Control		14,000		140,000
Total segment assets		2,523,000		2,694,000

Unallocated corporate assets		556,000		41,000
Total consolidated assets	$	3,079,000	$	2,735,000