| Information Concerning Industry Segments And Major Customers |
NOTE 12- INFORMATION CONCERNING INDUSTRY SEGMENTS AND MAJOR CUSTOMERS
Effective January 1, 2012, the Company realigned its business operations. As a result of the realignment, the Company consolidated the Austin Taylor operations within its Suttle business unit. Following this realignment, the Company classifies its businesses into three segments as follows:
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Suttle manufactures and markets copper and fiber connectivity systems, enclosure systems, xDSL filters and splitters, and active technologies for voice, data and video communications;
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Transition Networks manufactures network interface devices (NIDs), media converters, network interface cards (NICs), Ethernet switches and other connectivity products that offer the ability to affordably integrate the benefits of fiber optics into any data network; and
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JDL Technologies provides technology solutions including virtualization, managed services, wired and wireless network design and implementation services, and converged infrastructure configuration and deployment.
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Non-allocated corporate general and administrative expenses are categorized as “Other” in the Company’s segment reporting. Management has chosen to organize the enterprise and disclose reportable segments based on products and services. There are no material intersegment revenues. To conform to the 2012 presentation, the Company has reclassified 2011 and 2010 segment information to present the Austin Taylor operations within Suttle’s business unit.
Suttle products are sold principally to U.S. customers. Suttle operates manufacturing facilities in the U.S. and Costa Rica. Net long-lived assets held in foreign countries were approximately $1,067,000 and $831,000 at December 31, 2012 and 2011, respectively. Transition Networks manufactures its products in the United States and makes sales in both the U.S. and international markets. JDL Technologies operates in the U.S. and makes sales in the U.S. Consolidated sales to U.S. customers were approximately 83%, 85% and 81% of sales from continuing operations in 2012, 2011 and 2010 respectively. In 2012, sales to one of Transition Networks’ customers accounted for 10.6% of consolidated sales and one of Suttle’s customers accounted for 16.6% of consolidated sales. In 2011, sales to one of Transition Networks’ customers accounted for 22.8% of consolidated sales. In 2010, sales to two of Transition Networks’ customers accounted for 15.1% and 12.0% of consolidated sales and one of JDL Technologies’ customers accounted for 10.3% of consolidated sales.
Information concerning the Company’s operations in the various segments for the twelve-month periods ended December 31, 2012, 2011 and 2010 is as follows:
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Transition
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JDL
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Suttle
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Networks
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Technologies
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Other
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Total
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2012
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Sales
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$
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45,030,184
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$
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53,842,940
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$
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5,376,530
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$
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-
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$
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104,249,654
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Cost of sales
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33,056,579
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25,848,307
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3,847,877
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-
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62,752,763
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Gross profit
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11,973,605
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27,994,633
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1,528,653
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-
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41,496,891
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Selling, general and
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administrative expenses
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9,370,737
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22,106,199
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2,183,798
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4,440,039
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38,100,773
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Operating income (loss)
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$
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2,602,868
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$
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5,888,434
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$
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(655,145)
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$
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(4,440,039)
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$
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3,396,118
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Depreciation and amortization
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$
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925,149
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$
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815,259
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$
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103,109
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$
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289,994
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$
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2,133,511
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Capital expenditures
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$
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1,167,495
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$
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412,568
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$
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36,891
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$
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991,004
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$
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2,607,958
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Assets
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$
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26,148,148
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$
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35,851,189
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$
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8,385,337
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$
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42,149,971
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$
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112,534,645
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Transition
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JDL
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Suttle
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Networks
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Technologies
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Other
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Total
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2011
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Sales
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$
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39,924,484
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$
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91,450,014
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$
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12,400,553
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$
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-
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$
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143,775,051
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Cost of sales
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30,792,769
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46,825,149
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7,262,006
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-
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84,879,924
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Gross profit
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9,131,715
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44,624,865
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5,138,547
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-
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58,895,127
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Selling, general and
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administrative expenses
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8,217,766
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23,730,729
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1,982,353
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6,177,373
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40,108,221
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Impairment
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1,271,986
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1,271,986
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Operating income (loss)
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$
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(358,037)
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$
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20,894,136
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$
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3,156,194
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$
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(6,177,373)
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$
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17,514,920
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Depreciation and amortization
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$
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946,256
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$
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755,789
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$
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106,622
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$
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292,068
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$
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2,100,735
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Capital expenditures
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$
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935,030
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$
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1,028,941
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$
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51,789
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$
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740,231
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$
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2,755,991
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Assets
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$
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27,914,301
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$
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33,589,083
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$
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1,844,572
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$
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53,310,960
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$
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116,658,916
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Transition
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JDL
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Suttle
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Networks
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Technologies
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Other
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Total
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2010
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Sales
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$
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39,577,584
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$
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67,782,482
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$
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12,712,244
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$
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-
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$
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120,072,310
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Cost of sales
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29,913,246
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31,826,169
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7,132,263
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-
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68,871,678
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Gross profit
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9,664,338
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35,956,313
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5,579,981
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-
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51,200,632
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Selling, general and
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administrative expenses
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7,722,508
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21,459,214
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1,470,086
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4,934,440
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35,586,248
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Impairment
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-
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Operating income (loss)
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$
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1,941,830
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$
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14,497,099
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$
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4,109,895
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$
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(4,934,440)
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$
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15,614,384
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Depreciation and amortization
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$
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856,180
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$
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604,873
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$
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102,850
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$
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294,978
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$
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1,858,881
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Capital expenditures
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$
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751,674
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$
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680,819
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$
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197,784
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$
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164,145
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$
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1,794,422
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Assets
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$
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21,764,508
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$
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32,383,709
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$
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3,493,717
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$
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51,428,293
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$
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109,070,227
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