OLENOX INDUSTRIES INC. Segments Disclosure
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14. |
Segment Reporting |
The Company’s Chief Operating Decision Maker (“CODM”) as defined under GAAP, who is the Company’s Chief Financial Officer and Chief Executive Officer, has determined that the Company is currently organized its operations into the segments as follows. We have organized our operations into three segments: Construction, Medical, Development and Environmental. We allocate to segment results the operating expenses “Payroll and related expenses,” “General and administrative,” “Marketing and business development,” and “Pre-project” based on usage, which is generally reflected in the segment in which the costs are incurred. These segments reflect the way our executive team evaluates the Company’s business performance and manages its operations. The Construction segment includes the Company's manufacturing unit SG ECHO and other modules projects. The Medical segment mainly consists of minimal expenses for this segment. The Environmental segment has had no activity through December 31, 2024. Corporate and support consists of general corporate expenses such as our executive office; the corporate finance, accounting, audit, tax, human resources, risk management, information technology, marketing, and legal groups; corporate overhead and other items not allocated to any of the Company's segments. From time to time, the Company revises the measurement of each segment's cost of revenue and operating expenses, including any corporate overhead allocations, as determined by the information regularly reviewed by its executive team. The CODM continually reviews a monthly statement of operations separated by segment, along with an analysis of the significant segment expenses as described below. Information for the Company's segments, as well as for Corporate and support, is provided in the following table:
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Construction |
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Medical |
Corporate/Support |
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Consolidated |
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| Fiscal Year Ended December 31, 2024 |
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| Revenue | $ | 4,976,618 | $ | — | $ | — | $ | 4,976,618 | |||||||||
| Significant segment expenses: | |||||||||||||||||
| Costs of revenue: | |||||||||||||||||
| Direct labor |
407,241 |
— | — | 407,241 | |||||||||||||
| Materials | 1,022,874 | — |
— |
1,022,874 |
|||||||||||||
| Allocated overhead | 3,517,750 | — | — | 3,517,750 |
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| Other costs of revenue | 272,830 | — | — |
272,830 |
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| 5,220,695 |
— |
— |
5,220,695 |
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| Operating expenses: | |||||||||||||||||
| Payroll and related | — | — | 4,474,176 |
4,474,176 |
|||||||||||||
| Professional fees | — |
— | 3,565,080 | 3,565,080 | |||||||||||||
| Other expenses | 75,404 |
104,174 | 1,243,704 | 1,423,282 | |||||||||||||
| 75,404 |
104,174 |
9,282,960 |
9,462,538 | ||||||||||||||
| Operating loss | (319,481 | ) | (104,174 | ) | (9,282,960 | ) | (9,706,615 | ) | |||||||||
| Other expense | (545,947 | ) | — | (9,411,798 | ) | (9,957,745 | ) | ||||||||||
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Loss before income taxes |
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(865,428 |
) | (104,174 | ) |
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(18,694,758 |
) |
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(19,664,360 | ) | ||||||
| Income from discontinued operation | — | — | 2,684,678 | 2,684,678 | |||||||||||||
| Net loss attributable to common stockholders | $ | (865,428 | ) | $ | (104,174 | ) | $ | (16,010,080 | ) | $ | (16,979,682 | ) | |||||
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Total assets |
$ | 4,782,379 | $ | 1,406 | $ | 1,287,739 | $ | 6,071,524 | |||||||||
| Depreciation and amortization | $ | 512,707 | $ | — | $ | 14,086 | $ | 526,793 | |||||||||
| Capital expenditures | $ | 13,496 | $ | — | $ | — | $ | 13,496 | |||||||||
| Fiscal Year Ended December 31, 2023 | |||||||||||||||||
| Revenue | $ | 16,523,080 | $ | — | $ | — | $ | 16,523,080 | |||||||||
| Significant segment expenses: | |||||||||||||||||
| Costs of revenue: | |||||||||||||||||
| Direct labor | 6,252,798 | — | — | 6,252,798 | |||||||||||||
| Materials | 9,497,138 |
— | — | 9,497,138 | |||||||||||||
| Allocated overhead | 1,950,373 |
— | — | 1,950,373 | |||||||||||||
| Other costs of revenue | 1,379,127 |
— |
— | 1,379,127 | |||||||||||||
| 19,079,436 |
— | — | 19,079,436 | ||||||||||||||
| Operating expenses: | |||||||||||||||||
| Payroll and related | — | — | 6,052,629 |
6,052,629 | |||||||||||||
| Professional fees | — | — | 4,276,699 |
4,276,699 | |||||||||||||
| Other expenses | 11,319 | 528,672 | 8,323,533 |
8,863,524 |
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| 11,319 | 528,672 | 18,652,861 | 19,192,852 | ||||||||||||||
| Operating loss | (2,567,675 | ) | (528,672 | ) | (18,652,861 | ) | (21,749,208 | ) | |||||||||
| Other expense | (648,157 | ) | — | (160,000 | ) | (808,157 | ) | ||||||||||
| Loss before income taxes | (3,215,832 | ) | (528,672 | ) | (18,812,861 | ) | (22,557,365 | ) | |||||||||
| Loss from discontinued operation | — | — | (3,725,168 | ) | (3,725,168 | ) | |||||||||||
| Net loss attributable to common stockholders | $ | (3,215,832 |
) | $ | (528,672 | ) | $ | (22,538,029 | ) | $ | (26,282,533 | ) | |||||
| Total assets | $ | 5,997,826 | $ | 1,483 | $ | 11,211,966 | $ | 17,211,275 | |||||||||
| Depreciation and amortization | $ | 182,530 | $ | — | $ | 416,184 | $ | 598,714 | |||||||||
| Capital expenditure | $ | — | $ | — | $ | 607,404 | $ | 607,404 | |||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2024 | Apr 1, 2025 | Showing above |
| 2023 | May 7, 2024 | |
| 2022 | Mar 31, 2023 | |
| 2021 | Apr 18, 2022 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.