Quarterly report pursuant to Section 13 or 15(d)

Segment Disclosures

v3.2.0.727
Segment Disclosures
 6 Months Ended
Jun. 30, 2015
Segment Disclosures [Abstract]  
Segment Disclosures

14. Segment Disclosures

 

The Company has two reportable segments, Engineering Services and Medical. Engineering Services generates revenue principally from collaborative research and development service arrangements, technology license agreements, and government grants where the Company uses its robotics domain knowledge in bionic exoskeletons to bid on and procure contracts and grants from entities such as such as the National Science Foundation and the Defense Advanced Research Projects Agency. The Medical segment designs, engineers, and manufactures exoskeletons for applications in the medical and military markets.

 

The Company evaluates performance and allocates 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. The Company does 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 June 30, 2015                      
Revenue   $ 1,066     $ 1,048     $ 2,114  
Cost of revenue     642       970       1,612  
Gross profit   $ 424     $  78     $ 502  
             
Three months ended June 30, 2014            
Revenue    $ 507 $ 690 $ 1,197  
Cost of revenue      650 502 1,152  
Gross profit (loss)   $ (143 ) $ 188 $ 45  
             
Six months ended June 30, 2015                    
Revenue $ 1,770     $ 2,033     $ 3,803  
Cost of revenue     1,130       1,768       2,898  
Gross profit   $ 640     $ 265     $ 905  
                         
Six months ended June 30, 2014                        
Revenue   $ 1,042     $ 1,217     $ 2,259  
Cost of revenue     902       832       1,734  
Gross profit   $ 140     $ 385     $ 525  

 

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

 

 

Three Months Ended

June 30,

  

Six Months Ended

June 30,

  
  2015
     2014
   2015     2014  
                         
North America   $ 1,622     $ 941   $ 2,894     $ 1,831  
Europe, Middle East, Asia   492       256     909       428  
    $ 2,114    

$

 1,197     $ 3,803     $ 2,259