Note 11 – Business Segment Data

Operating segments are based on the Company’s business components about which separate financial information is available and are evaluated regularly by the Company’s chief operating decision makers in deciding how to allocate resources and in assessing performance of the business.

The Company evaluates segment performance and allocates resources based upon operating income (loss). The Company’s operations are managed in two reportable business segments: Digital product sales and Digital product lease and maintenance. Both design and produce large-scale, multi-color, real-time digital displays and LED lighting, which has a line of energy-saving lighting solutions that provide facilities and public infrastructure with “green” lighting solutions that emit less heat, save energy and enable creative designs. Both operating segments are conducted on a global basis, primarily through operations in the United States. The Company also has operations in Canada. The Digital product sales segment sells equipment and the Digital product lease and maintenance segment leases and maintains equipment. Corporate general and administrative items relate to costs that are not directly identifiable with a segment. There are no intersegment sales.

Foreign revenues represent less than 10% of the Company’s revenues in 2017 and 2016. The foreign operation does not manufacture its own equipment; the domestic operation provides the equipment that the foreign operation leases or sells. The foreign operation operates similarly to the domestic operation and has similar profit margins. Foreign assets are immaterial.

Information about the Company’s operations in its two business segments for the three months ended March 31, 2017 and 2016 is as follows:

	Three Months Ended March 31
In thousands	2017		2016
Revenues:
Digital product sales	$	2,580	$	3,000
Digital product lease and maintenance		497		837
Total revenues		3,077		3,837
Operating (loss) income:
Digital product sales	$	(476)	$	(360)
Digital product lease and maintenance		71		269
Corporate general and administrative expenses		(682)		(872)
Total operating loss		(1,087)		(963)
Interest expense, net		(174)		(35)
Loss on foreign currency remeasurement		(27)		(134)
Gain on sale/leaseback transaction		33		22
Warrant expense		-		(7)
Loss before income taxes		(1,255)		(1,117)
Income tax expense		-		-
Net loss	$	(1,255)	$	(1,117)