Quarterly report pursuant to Section 13 or 15(d)

Segment Disclosures

v2.4.0.8
Segment Disclosures
 9 Months Ended
Sep. 30, 2014
Segment Disclosures [Abstract]  
Segment Disclosures

13. Segment Disclosures

 

We have two reportable segments, Engineering Services and Medical Devices. Engineering Services generates revenue principally from collaborative research and development service arrangements, technology license agreements, and government grants where we use our robotics domain knowledge in bionic exoskeletons to bid on and procure contracts and grants from entities such as the United States Special Operations Command, the Defense Advanced Research Projects Agency and the National Science Foundation. The Medical Devices segment designs, engineers, and manufactures and sells exoskeletons for applications in the medical markets.

 

We evaluate performance and allocate resources based on segment gross profit margin. The reportable segments are each managed separately because they serve distinct markets, and one segment provides a service and the other manufactures and distributes a unique product. We do not consider net assets as a segment measure and, accordingly, assets are not allocated.

 

Segment reporting information is as follows:

 

  Engineering   Medical        
  Services   Devices     Total  

Three months ended September 30, 2014

                        
Revenue   $ 799,884     $ 788,299     $ 1,588,183  
Cost of revenue     529,657       578,737       1,108,394  
Gross profit (loss)   $ 270,227     $ 209,562     $ 479,789  
                         

Three months ended September 30, 2013

                        
Revenue   $ 417,082     $ 416,682     $ 833,764  
Cost of revenue     287,468       245,575       533,043  
Gross profit   $ 129,614     $ 171,107     $ 300,721  
                         

Nine months ended September 30, 2014

                        
Revenue   $ 1,841,355     $ 2,005,592     $ 3,846,947  
Cost of revenue     1,431,802       1,410,285       2,842,087  
Gross profit   $ 409,553     $ 595,307     $ 1,004,860  
                         

Nine months ended September 30, 2013

                        
Revenue   $ 1,375,010     $ 1,138,995     $ 2,514,005  
Cost of revenue     1,018,801       775,007       1,793,808  
Gross profit   $ 356,209     $ 363,988     $ 720,197  

 

Geographic information for revenue based on location of customer is as follows:

 

 

Three Months Ended

Nine Months Ended

  
 

September 30,

September 30,

  
  2014 2013     2014     2013  
                         
North America   $ 1,271,149     $ 700,316     $ 3,102,292     $ 2,195,004  
Europe, Middle East Asia     317,034       133,448       744,655       319,001  
    $ 1,588,183     $ 833,764     $ 3,846,947     $ 2,514,005