Note 13 – 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. 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 2019 and 2018. The Company’s 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, 2019 and 2018 is as follows:

	Three months ended June 30				Six months ended June 30
In thousands	2019		2018		2019		2018
Revenues:
Digital product sales	$	3,113	$	2,353	$	6,204	$	6,301
Digital product lease and maintenance		634		709		1,142		1,296
Total revenues	$	3,747	$	3,062	$	7,346	$	7,597
Operating (loss) income:
Digital product sales	$	248	$	(442)	$	364	$	118
Digital product lease and maintenance		415		258		673		548
Corporate general and administrative expenses		(628)		(710)		(1,241)		(1,421)
Total operating income (loss)		35		(894)		(204)		(755)
Interest expense, net		(80)		(218)		(335)		(414)
(Loss) gain on foreign currency remeasurement		(50)		50		(107)		122
Loss on debt extinguishment		(245)		-		(193)		-
Gain on sale leaseback transaction		-		-		-		11
Pension (expense) benefit		(19)		34		(37)		68
Loss before income taxes		(359)		(1,028)		(876)		(968)
Income tax expense		(6)		-		(12)		-
Net loss	$	(365)	$	(1,028)	$	(888)	$	(968)

	June 30 2019		December 31 2018
	June 30 2019		December 31 2018
Assets
Digital product sales	$	8,466	$	7,689
Digital product lease and maintenance		4,246		3,054
Total identifiable assets		12,712		10,743
General corporate		1,413		723
Total assets	$	14,125	$	11,466