NOTE 5

SEGMENT INFORMATION

The Company has two reportable business segments: the design and assembly of dynamic balancing systems and components for the machine tool industry (Balancer), and the design and assembly of laser-based test and measurement systems (Measurement). The Company operates in three principal geographic markets: United States, Europe and Asia.

 

		Year Ended May 31,
		2018								2017								2016
		Balancer				Measurement				Balancer				Measurement				Balancer				Measurement
Gross sales		$	10,769,250			$	4,861,501			$	8,319,896			$	5,331,535			$	8,257,036			$	4,728,905
Intercompany sales			(1,742,420	)			(268	)			(1,237,422	)			(16,366	)			(1,294,290	)			(6,298	)
Net sales		$	9,026,830			$	4,861,233			$	7,082,474			$	5,315,169			$	6,962,746			$	4,722,607
Operating income (loss)		$	(50,686	)		$	206,058			$	(931,770	)		$	(56,914	)		$	(992,342	)		$	(444,132	)
Depreciation expense		$	63,390			$	37,266			$	70,018			$	37,534			$	94,954			$	39,340
Amortization expense		$	0			$	104,583			$	0			$	111,530			$	0			$	111,530
Capital expenditures		$	4,353			$	4,114			$	46,495			$	6,138			$	3,520			$	0

Geographic Information

 

		Year Ended May 31,
		2018				2017				2016
North America		$	8,371,376			$	8,162,340			$	7,749,753
Europe			2,258,495				1,451,293				1,435,280
Asia			3,122,484				2,500,191				2,288,550
Other markets			135,708				283,819				211,770
Total net sales		$	13,888,063			$	12,397,643			$	11,685,353

 

		Year Ended May 31,
		2018								2017								2016
		United States				Europe				United States				Europe				United States				Europe
Operating income (loss)		$	(225,594	)		$	380,966			$	(947,514	)		$	(41,170	)		$	(1,255,589	)		$	(180,885	)
Depreciation expense		$	100,656			$	0			$	107,552			$	0			$	134,294			$	0
Amortization expense		$	104,583			$	0			$	111,530			$	0			$	111,530			$	0
Capital expenditures		$	8,467			$	0			$	52,633			$	0			$	3,520			$	0

Segment and Geographic Assets

 

		May 31, 2018				May 31, 2017
Segment assets to total assets
Balancer		$	6,461,974			$	4,791,100
Measurement			2,712,553				3,340,327
Corporate assets			2,111,533				874,917
Total assets		$	11,286,060			$	9,006,344
Geographic assets to long-lived assets
United States		$	770,915			$	865,224
Europe			0				0
Total assets		$	770,915			$	865,224
Geographic assets to total assets
United States		$	10,110,683			$	8,149,507
Europe			1,175,377				856,837
Total assets		$	11,286,060			$	9,006,344

Note – Europe is defined as the European subsidiary, Schmitt Europe, Ltd.