Annual report pursuant to Section 13 and 15(d)

NOTE 16: - SEGMENT INFORMATION

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NOTE 16: - SEGMENT INFORMATION
12 Months Ended
Dec. 31, 2012
Segment Reporting Disclosure [Text Block]
NOTE 16:–               SEGMENT INFORMATION

a.              General:

The Company operates in two continuing business segments (see Note 1.a. for a brief description of the Company’s business).

The Company’s reportable operating segments have been determined in accordance with the Company’s internal management structure, which is organized based on operating activities. The accounting policies of the operating segments are the same as those described in the summary of significant accounting policies. The Company evaluates performance based on two primary factors: the segment’s operating income and the segment’s contribution to the Company’s future strategic growth.

b.              The following is information about reported segment gains, losses and assets:

   
Training and
Simulation
Division
   
Battery and
Power Systems
Division
   
Corporate
Expenses
   
Discontinued
operations
   
Total
Company
 
2012
                             
Revenues from outside customers
  $ 59,270,768     $ 20,779,666     $     $     $ 80,050,434  
Depreciation and amortization expenses (1)
    (1,105,958 )     (1,118,104 )     (48,655 )           (2,272,717 )
Direct expenses (2)
    (53,055,151 )     (19,974,339 )     (5,600,479 )           (78,629,969 )
Segment net income (loss)
    5,109,659       (312,777 )     (5,649,134 )           (852,252 )
Financial expenses
    (43,221 )     (7,639 )     (497,126 )           (547,986 )
Income tax expense (benefit)
    (7,688 )           635,844             628,156  
Net income (loss) – continuing operations
    5,074,126       (320,416 )     (6,782,104 )           (2,028,394 )
Net loss – discontinued operations
                      (988,283 )     (988,283 )
Net income (loss)
  $ 5,074,126     $ (320,416 )   $ (6,782,104 )   $ (988,283 )   $ (3,016,677 )
Segment assets
  $ 51,302,000     $ 26,013,955     $ 174,791     $ 389,272     $ 77,880,018  
Additions to long-lived assets
  $ 550,634     $ 734,198     $     $     $ 1,284,832  
                                         
2011
                                       
Revenues from outside customers
  $ 42,881,573     $ 19,254,005     $     $     $ 62,135,578  
Depreciation and amortization expenses (1)
    (1,845,582 )     (1,094,930 )     (68,528 )           (3,009,040 )
Direct expenses (2)
    (38,292,715 )     (18,297,385 )     (5,559,982 )           (62,150,082 )
Segment net income (loss)
    2,743,276       (138,310 )     (5,628,510 )           (3,023,544 )
Financial income (expense)
    (47,112 )     (209,764 )     (74,130 )           (331,006 )
Income tax expense (benefit)
    (69,734 )     646,824       1,031,521             1,608,611  
Net income (loss) – continuing operations
    2,765,898       (994,898 )     (6,734,161 )           (4,963,161 )
Net loss – discontinued operations
                      (6,563,844 )     (6,563,844 )
Net income (loss)
  $ 2,765,898     $ (994,898 )   $ (6,734,161 )   $ (6,563,844 )   $ (11,527,005 )
Segment assets
  $ 48,501,634     $ 25,335,086     $ 548,717     $ 6,716,508     $ 81,101,945  
Additions to long-lived assets
  $ 2,124,953     $ 911,382     $ 3,345     $ 97,558     $ 3,137,238  

 _______________________

(1)
Includes depreciation of property and equipment and amortization expenses of intangible assets.

(2)
Including, inter alia, sales and marketing, general and administrative, research and development and other income.

c.              Summary information about geographic areas:

The following presents total revenues according to the locations of the Company’s end customers and long-lived assets as of and for the years ended December 31, 2012 and 2011:

   
2012
   
2011
 
   
Total
revenues
   
Long-lived assets
   
Total
revenues
   
Long-lived assets
 
U.S.A.
  $ 63,751,882     $ 28,879,572     $ 45,517,776     $ 29,543,962  
Israel
    7,485,034       8,385,579       8,585,357       8,661,347  
Germany
    1,517,200             318,892        
Taiwan
    1,349,420             1,915,361        
Korea
    1,198,663                    
Canada
    1,167,656             2,150,419        
Hong Kong
    1,098,346                    
India
    605,966             8,630        
Mexico
    283,584             150,634        
Ecuador
    139,845                    
Thailand
    137,970             72,363        
U.A.E.
    109,604             386,241        
China
    98,832             307,120        
New Zealand
                731,151        
Kuwait
                539,118        
England
                228,669        
Slovenia
                121,475        
Other
    1,106,432             1,102,372        
    $ 80,050,434     $ 37,265,151     $ 62,135,578     $ 38,205,309  

d.              Revenues from major customers (as a percentage of consolidated revenues):

Other than for sales to various branches of the United States Military, which accounted for 54% and 46% of consolidated continuing revenues for 2012 and 2011, respectively, no single customer accounted for more than 10% of revenues for either year.

e.              Revenues from major products:

    Year ended December 31,  
   
2012
   
2011
 
Water activated batteries
  $ 3,786,946     $ 3,614,876  
Batteries and chargers
    16,992,720       15,639,129  
Simulators
    59,270,768       42,881,573  
Total
  $ 80,050,434     $ 62,135,578