Segment Reporting and Geographic Information

9 Months Ended

Sep. 30, 2014

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

14. Segment Reporting and Geographic Information

The Company has two business division segments based on the products it delivers:

Heavy Duty Diesel Systems division — The Heavy Duty Diesel Systems division designs and manufactures verified exhaust emissions control solutions. This division offers a full range of products for the verified retrofit and non-retrofit OEM and replacement markets through its distributor/dealer network and direct sales. These products are used to reduce exhaust emissions created by on-road, off-road and stationary diesel and alternative fuel engines including propane and natural gas. The retrofit market in the U.S. is driven in particular by state and municipal environmental regulations and incentive funding for voluntary early compliance. The Heavy Duty Diesel Systems division derives significant revenues from retrofit with a portfolio of solutions verified by the California Air Resources Board and the United States Environmental Protection Agency.

Catalyst division — The Catalyst division produces catalysts to reduce emissions from gasoline, diesel and natural gas combustion engines that are offered for multiple markets and a wide range of applications. The Catalyst Division developed a family of unique high-performance catalysts, featuring inexpensive base-metals with low or even no platinum group metals, or PGMs, to provide increased catalytic function and value for technology-driven automotive industry customers. The Catalyst division’s technical and manufacturing competence in the light duty vehicle market is aimed at meeting auto makers’ most stringent requirements, and it has supplied over eleven million parts to light duty vehicle customers since 2001. The Catalyst division also provides catalyst formulations for the Company’s Heavy Duty Diesel Systems division. Intersegment revenues are based on market prices.

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): 

		Three Months Ended September 30,				Nine Months Ended September 30,
		2014		2013		2014		2013
Revenues
	Heavy Duty Diesel Systems	$	3,672	$	7,073	$	16,047	$	19,714
	Catalyst		6,186		7,199		18,286		19,951
	Eliminations (1)		(547)		(963)		(1,770)		(2,246)
	Total	$	9,311	$	13,309	$	32,563	$	37,419
(Loss) income from operations
	Heavy Duty Diesel Systems	$	(640)	$	678	$	223	$	205
	Catalyst		90		597		673		850
	Corporate		(1,847)		(1,202)		(5,371)		(4,278)
	Eliminations (1)		(3)		34		(13)		112
	Total	$	(2,400)	$	107	$	(4,488)	$	(3,111)
(1) Elimination of Catalyst revenue and profit in ending inventory related to sales to Heavy Duty Diesel Systems.

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

	Three Months Ended September 30,				Nine Months Ended September 30,
	2014		2013		2014		2013
United States	$	5,972	$	6,450	$	17,068	$	18,124
Canada		2,413		5,794		12,129		15,477
Europe		926		1,065		3,366		3,818
Total international		3,339		6,859		15,495		19,295
Total revenues	$	9,311	$	13,309	$	32,563	$	37,419