Annual report pursuant to Section 13 and 15(d)

Segment Reporting

v2.4.0.6
Segment Reporting
 12 Months Ended
Sep. 30, 2011
Segment Reporting [Abstract]  
Segment Reporting Disclosure [Text Block]
NOTE 16 — 
Segment Reporting
 
 In accordance with ASC 280 “Segment Reporting,” our operating segments are those components of our business for which separate and discrete financial information is available and is used by our chief operating decision makers, or decision-making group, in making decisions on how we allocate resources and assess performance.
 
In accordance with ASC 280, the Company reports two operating segments, North America and Europe. The Company’s chief decision-makers review financial information presented on a consolidated basis, accompanied by disaggregated information about net sales and operating profit each year by operating segment. This information is used for purposes of allocating resources and evaluating financial performance.
 
The accounting policies of the segments are the same as those described in the “Summary of Significant Accounting Policies.” Segment data includes net sales, operating profitability, and total assets by segment. Shared corporate operating expenses are reported in the North American segment.
 
The Company is organized primarily on the basis of operating units which are segregated by geography in North America and Europe. For the years ended September 30, 2011 our segment results, net of Discontinued Operations (see Note 4 for more details) are as follows:
 
For the year ended September 30, 2010:
  
North America
    
Europe
    
Total
  
                   
Net sales
   $ 10,273     $ 3,723     $ 13,996  
Loss from operations
     (5,021 )     (658 )     (5,679 )
Other expense
     (244 )     (15 )     (259 )
Change in fair value of warrants
     (4,373 )     -       (4,373 )
Depreciation and amortization
     (551 )     (73 )     (624 )
Net loss from continuing operations
     (9,687 )     (687 )     (10,374 )
Net loss from discontinued operations
     -       (8,181 )     (8,181 )
                         
Assets
     9,374       2,697       12,071  
Capital expenditures
     223       119       342  
Capital expenditures of discontinued operations
     -       183       183  
Goodwill
     2,792       -       2,792  
Intangible Assets
     3,011       -       3,011  
 
For the year ended September 30, 2011:
  
North America
    
Europe
    
Total
  
                   
Net sales
   $ 11,142     $ 7,752     $ 18,894  
Loss from operations
     (2,646 )     (842 )     (3,488 )
Other expense
     (1,678 )     (119 )     (1,797 )
Depreciation and amortization
     (311 )     (39 )     (350 )
Net loss from continuing operations
     (3,727 )     (943 )     (4,670 )
Net income from discontinued operations
     -       7,892       7,892  
                         
Assets
     8,762       3,160       11,922  
Capital expenditures
     118       -       118  
Goodwill
     2,792       -       2,792  
Intangible Assets
     2,905       -       2,905  
 
In our European operations 96% of the net sales were generated by one customer for the years ended September 30, 2011 and 2010.