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 represented less than 10% of the Company’s revenues in the three and six months ended June 30, 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 and six months ended June 30, 2017 and 2016 and as of June 30, 2017 and December 31, 2016 is as follows:


	Three Months Ended June 30				Six Months Ended June 30
In thousands	2017		2016		2017		2016
Revenues:
Digital product sales	$	3,360	$	4,998	$	5,940	$	7,998
Digital product lease and maintenance		618		776		1,115		1,613
Total revenues	$	3,978	$	5,774	$	7,055	$	9,611
Operating (loss) income:
Digital product sales	$	(512)	$	608	$	(988)	$	248
Digital product lease and maintenance		187		222		258		491
Corporate general and administrative expenses		(760)		(799)		(1,442)		(1,671)
Total operating (loss) income		(1,085)		31		(2,172)		(932)
Interest expense, net		(138)		(40)		(312)		(75)
Loss on foreign currency remeasurement		(64)		(8)		(91)		(142)
Gain on sale/leaseback transaction		33		33		66		55
Warrant expense		-		(7)		-		(14)
(Loss) income before income taxes		(1,254)		9		(2,509)		(1,108)
Income tax benefit		-		73		-		73
Net (loss) income	$	(1,254)		82	$	(2,509)	$	(1,035)

	June 30 2017		December 31 2016
	June 30 2017		December 31 2016
Assets:
Digital product sales	$	8,344	$	8,753
Digital product lease & maintenance		4,222		4,055
Total identifiable assets		12,566		12,808
General corporate		792		606
Total assets	$	13,358	$	13,414