Quarterly report pursuant to Section 13 or 15(d)

Segment Disclosures

v2.4.0.8
Segment Disclosures
 6 Months Ended
Jun. 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 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 June 30, 2014                        
Revenue   $ 506,513     $ 690,540     $ 1,197,053  
Cost of revenue     650,043       501,425       1,151,468  
Gross profit (loss)   $ (143,530 )   $ 189,115     $ 45,585  
                         
Three months ended June 30, 2013                        
Revenue   $ 594,598     $ 389,394     $ 983,992  
Cost of revenue     384,119       296,869       680,988  
Gross profit   $ 210,479     $ 92,525     $ 303,004  
                         
Six months ended June 30, 2014                        
Revenue   $ 1,041,471     $ 1,217,293     $ 2,258,764  
Cost of revenue     902,146       831,550       1,733,696  
Gross profit   $ 139,325     $ 385,743     $ 525,068  
                         
Six months ended June 30, 2013                        
Revenue   $ 957,928     $ 722,313     $ 1,680,241  
Cost of revenue     731,333       529,432       1,260,765  
Gross profit   $ 226,595     $ 192,881     $ 419,476  

 

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

 

    Three Months Ended     Six Months Ended  
    June 30,     June 30,  
    2014     2013     2014     2013  
                         
North America   $ 941,358     $ 871,203     $ 1,831,143     $ 1,494,688  
Europe, Middle East Asia     255,695       112,789       427,621       185,553  
    $ 1,197,053     $ 983,992     $ 2,258,764     $ 1,680,241