Segment Reporting

12 Months Ended

Dec. 31, 2015

Segment Reporting

Segment Reporting

18. Segment Reporting

        Although the Company is transitioning its business from being a niche manufacturer of emissions control solutions for the automotive and heavy duty diesel markets to becoming an advanced materials technology provider for these markets, this transition has not yet affected the Company's current reportable segments. Currently, the Company has two business division segments based on the products it delivers:

        Catalyst division—The Catalyst division develops and produces catalysts to reduce emissions from gasoline, diesel and natural gas combustion engines. Most catalytic systems require significant amounts of costly PGMs to operate effectively. Using its proprietary mixed-phase catalyst, or MPC®, technology, the Catalyst division has developed a family of unique high-performance catalysts, featuring inexpensive base-metals with low or even no PGM content. It has recently developed a new generation of catalyst technologies, which the Company believes will enable further advances in catalyst performance and further reductions in PGM usage. Since 2001, the Catalyst division has supplied over twelve million catalyst parts to light duty vehicle OEM customers. The Catalyst division is also a supplier of products for the Company's Heavy Duty Diesel Systems division. Intersegment revenues are based on market prices.

        Heavy Duty Diesel Systems division—The Heavy Duty Diesel Systems division designs and manufactures exhaust emissions control solutions for a wide range of heavy duty diesel applications. It offers a full range of DuraFit™ OEM replacement diesel particulate filters (DPFs) and diesel oxidation catalysts (DOCs), and products for the verified retrofit and non-retrofit OEM markets through its distribution/dealer network and direct sales. The Company believes that its Heavy Duty Diesel Systems division offers one of the industry's most comprehensive portfolios of emissions control systems for use in engine retrofit programs that have been evaluated and verified as compliant with applicable state and federal regulations, as well as regulations imposed by several European countries. The Company has received certification from the Verification of Emission Reduction Technologies Association (VERT) for our Purifilter® exhaust gas recirculation (EGR) diesel particulate filter system, which expands its retrofit market opportunities into South America and other international locations. Sales of emissions control systems by the Heavy Duty Diesel Systems division are driven by the regulation of diesel emissions, particularly in the State of California.

        Corporate—Corporate includes cost for personnel, insurance and public company expenses such as legal, audit and taxes that are not allocated down to the operating divisions.

        Summarized financial information for the Company's reportable segments is as follows (in thousands):

	Years Ended December 31,
	2015			2014
Net sales
Catalyst	$	26,224		$	23,772
Heavy Duty Diesel Systems		16,664			19,577
Eliminations(1)		(3,150	)		(2,118	)
Total	$	39,738		$	41,231
Income (loss) from operations
Catalyst	$	(1,612	)	$	(775	)
Heavy Duty Diesel Systems		(1,699	)		183
Corporate		(6,780	)		(6,894	)
Eliminations		(228	)		(139	)
Total	$	(10,319	)	$	(7,625	)
Depreciation and amortization
Catalyst	$	170		$	135
Heavy Duty Diesel Systems		754			872
Total	$	924		$	1,007
Capital expenditures
Catalyst	$	644		$	338
Heavy Duty Diesel Systems		17			116
Total	$	661		$	454

(1)           Elimination of Catalyst revenue related to sales to Heavy Duty Diesel Systems.

	December 31,
	2015			2014
Total assets
Catalyst	$	44,457		$	43,333
Heavy Duty Diesel Systems		43,580			40,552
Eliminations		(62,935	)		(56,228	)
Total	$	25,102		$	27,657

        Net sales by geographic region based on location of sales organization is as follows (in thousands):

	Years Ended December 31,
	2015		2014
United States	$	24,323	$	22,678
Canada		12,143		14,300
Europe		3,272		4,253
Total international		15,415		18,553
Total revenues	$	39,738	$	41,231

        Net fixed assets and total assets by geographic region as of December 31, 2015 and 2014 is as follows (in thousands):

	Fixed Assets				Total Assets
	2015		2014		2015		2014
United States	$	1,247	$	723	$	11,266	$	14,618
Canada		290		632		11,641		10,394
Europe		1		2		2,195		2,645
Total international		291		634		13,836		13,039
Total	$	1,538	$	1,357	$	25,102	$	27,657