Segment Reporting | Segment Reporting The Company discloses segment information that is consistent with the way in which management operates and views its business. Effective during the quarter ended June 30, 2022, the Company has reduced its reportable segments to five operating segments as represented by the Company’s five silo companies: A4 Construction Services, Inc.; A4 Manufacturing, Inc.; A4 Technologies, Inc.; A4 Aerospace Corporation; and A4 Defense Systems, Inc. The Company’s reportable segments for the three and six months ended June 30, 2022, and June 30, 2021, and as of June 30, 2022, and December 31, 2021, were as follows: Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Revenue Construction Services $ 5,669,259 $ 5,428,221 $ 9,725,463 $ 10,099,451 Manufacturing 7,530,475 7,557,404 16,178,570 11,295,713 Defense 2,472,207 1,145,105 5,160,188 1,145,105 Technologies 9,255,658 — 19,049,646 — Aerospace 343,527 — 749,413 — $ 25,271,126 $ 14,130,730 $ 50,863,280 $ 22,540,269 Gross profit Construction Services $ 165,320 $ 871,860 $ 530,152 $ 714,202 Manufacturing 2,123,788 2,631,982 4,127,957 3,544,259 Defense 1,285,732 460,218 2,128,921 460,218 Technologies 2,858,396 — 4,980,695 — Aerospace 176,483 — 479,451 — $ 6,609,719 $ 3,964,060 $ 12,247,176 $ 4,718,679 Income (loss) from operations Construction Services $ (391,838) $ (752,731) $ (1,027,526) $ (2,856,533) Manufacturing (435,960) 477,949 (1,089,309) 732,138 Defense 783,704 3,622 1,206,844 3,622 Technologies 401,833 — 691,610 — Aerospace (941,161) (705,398) (1,792,291) (2,923,177) Unallocated (2,284,691) (1,927,659) (4,457,152) (2,932,336) $ (2,868,113) $ (2,904,217) $ (6,467,824) $ (7,976,286) Depreciation and amortization Construction Services $ 304,259 $ 421,326 $ 470,663 $ 754,048 Manufacturing 436,424 416,264 918,111 579,623 Defense 72,090 56,217 144,180 56,217 Technologies 245,852 — 489,565 — Aerospace 267,087 48,124 549,777 226,368 Unallocated 158,807 8,807 317,614 56,908 $ 1,484,519 $ 950,738 $ 2,889,910 $ 1,673,164 Interest Expense Construction Services $ 185,863 $ 300,634 $ 350,873 $ 682,470 Manufacturing 221,505 126,519 351,494 268,875 Defense — 825 — 825 Technologies 60,431 — 115,248 — Aerospace 912 — 2,352 — Unallocated 493,763 788,609 751,468 1,736,140 $ 962,474 $ 1,216,587 $ 1,571,435 $ 2,688,310 Net income (loss) Construction Services $ (577,533) $ (193,937) $ (1,321,875) $ (2,674,205) Manufacturing 5,130,225 366,412 4,284,460 457,659 Defense 783,704 6,384 1,206,844 6,384 Technologies 337,857 — 572,817 — Aerospace (923,204) (705,407) (1,758,952) (2,493,646) Unallocated (2,725,526) (2,600,729) (5,133,724) (4,552,937) $ 2,025,523 $ (3,127,277) $ (2,150,430) $ (9,256,745) As of June 30, 2022 As of December 31, 2021 Total Assets Construction Services $ 18,125,882 $ 13,985,561 Manufacturing 44,217,346 39,964,186 Defense 10,688,747 11,982,580 Technologies 41,299,819 39,516,284 Aerospace 10,736,511 17,078,926 Unallocated 10,170,480 10,507,786 $ 135,238,785 $ 133,035,323 Goodwill Construction Services $ 113,592 $ 113,592 Manufacturing 8,036,200 8,036,200 Defense 6,426,786 6,426,786 Technologies 5,447,746 5,447,746 Aerospace 1,913,310 1,913,310 $ 21,937,634 $ 21,937,634 Accounts receivable, net Construction Services $ 4,344,834 $ 4,193,243 Manufacturing 3,473,169 3,192,030 Defense 1,246,766 1,371,184 Technologies 3,753,021 2,998,945 Aerospace 199,200 119,774 $ 13,016,990 $ 11,875,176 |