NOTE 11  SEGMENT INFORMATION ? The Company classifies its businesses into the four segments as follows: ?  Suttle manufactures and markets connectivity infrastructure products for broadband and voice communications;  Transition Networks manufactures media converters, NIDs, NICs, Ethernet switches and other connectivity products that offer the ability to affordably integrate the benefits of fiber optics into any data network;  JDL Technologies provides technology solutions that address prevalent IT challenges, including virtualization and cloud solutions, managed services, wired and wireless network design and implementation, and converged infrastructure configuration and deployment ; and  Net2Edge develops, manufactures and sells products that enable telecommunications carriers to connect legacy networks to high-speed services . ? Management has chosen to organize the enterprise and disclose reportable segments based on our products and services. Intersegment revenues are eliminated upon consolidation. ? Information concerning the Companys continuing operations in the various segments for the three and nine month periods ended September 30, 2018 and 2017 is as follows: ? ? ? ? ? Transition JDL Intersegment ? Suttle Networks Technologies Net2Edge Other Eliminations Total ? Three Months Ended September 30, 2018 ? Sales $ 5,009,000 $ 9,231,000 $ 859,000 $ 405,000 $ - $ (212,000) $ 15,292,000 ? Cost of sales 4,093,000 4,883,000 712,000 365,000 - (2,000) 10,051,000 ? Gross profit (loss) 916,000 4,348,000 147,000 40,000 - (210,000) 5,241,000 ? Selling, general and ? administrative expenses 2,053,000 3,745,000 446,000 809,000 - (210,000) 6,843,000 ? Operating (loss) income (1,137,000) 603,000 (299,000) (769,000) - - (1,602,000) ? Other income (expense) (5,000) (1,000) - 19,000 42,000 - 55,000 ? Income (loss) before income tax $ (1,142,000) $ 602,000 $ (299,000) $ (750,000) $ 42,000 $ - $ (1,547,000) ? ? Depreciation and amortization $ 374,000 $ 96,000 $ 40,000 $ 13,000 $ - $ - $ 523,000 ? ? Capital expenditures $ 48,000 $ 31,000 $ - $ (7,000) $ 14,000 $ - $ 86,000 ? ? Assets $ 13,277,000 $ 17,644,000 $ 1,177,000 $ 2,421,000 $ 17,764,000 $ (27,000) $ 52,256,000 ? ? ? ? ? ? Transition JDL Intersegment ? Suttle Networks Technologies Net2Edge Other Eliminations Total ? Three Months Ended September 30, 2017 ? Sales $ 7,536,000 $ 9,327,000 $ 3,613,000 $ 182,000 $ - $ (245,000) $ 20,413,000 ? Cost of sales 8,967,000 5,342,000 2,730,000 122,000 - (52,000) 17,109,000 ? Gross profit (1,431,000) 3,985,000 883,000 60,000 - (193,000) 3,304,000 ? Selling, general and ? administrative expenses 2,239,000 3,809,000 471,000 836,000 - (193,000) 7,162,000 ? Impairment loss - - - - - - - ? Restructuring expense 796,000 - - - - - 796,000 ? Operating (loss) income (4,466,000) 176,000 412,000 (776,000) - - (4,654,000) ? Other income (expense) - 17,000 - 1,000 5,000 - 23,000 ? Income (loss) before income tax $ (4,466,000) $ 193,000 $ 412,000 $ (775,000) $ 5,000 $ - $ (4,631,000) ? ? Depreciation and amortization $ 525,000 $ 158,000 $ 76,000 $ 9,000 $ - $ - $ 768,000 ? ? Capital expenditures $ 52,000 $ 174,000 $ - $ 3,000 $ 23,000 $ - $ 252,000 ? ? Assets $ 21,389,000 $ 12,593,000 $ 4,809,000 $ 1,258,000 $ 21,239,000 $ (27,000) $ 61,261,000 ? ? ? ? ? ? ? Transition JDL Intersegment ? Suttle Networks Technologies Net2Edge Other Eliminations Total ? Nine Months Ended September 30, 2018 ? Sales $ 17,855,000 $ 26,219,000 $ 2,482,000 $ 1,251,000 $ - $ (703,000) $ 47,104,000 ? Cost of sales 15,105,000 14,436,000 2,281,000 929,000 - (51,000) 32,700,000 ? Gross profit 2,750,000 11,783,000 201,000 322,000 - (652,000) 14,404,000 ? Selling, general and ? administrative expenses 6,463,000 10,948,000 1,410,000 2,533,000 - (652,000) 20,702,000 ? Operating (loss) income (3,713,000) 835,000 (1,209,000) (2,211,000) - - (6,298,000) ? Other income 15,000 3,000 3,000 31,000 194,000 - 246,000 ? Income (loss) before income tax $ (3,698,000) $ 838,000 $ (1,206,000) $ (2,180,000) $ 194,000 $ - $ (6,052,000) ? ? Depreciation and amortization $ 1,173,000 $ 337,000 $ 144,000 $ 41,000 $ - $ - $ 1,695,000 ? ? Capital expenditures $ 508,000 $ 69,000 $ - $ 109,000 $ 14,000 $ - $ 700,000 ? ? ? ? ? ? ? ? Transition JDL Intersegment ? Suttle Networks Technologies Net2Edge Other Eliminations Total ? Nine Months Ended September 30, 2017 ? Sales $ 24,888,000 $ 27,831,000 $ 10,504,000 $ 719,000 $ - $ (661,000) $ 63,281,000 ? Cost of sales 24,447,000 15,667,000 7,699,000 262,000 - (74,000) 48,001,000 ? Gross profit 441,000 12,164,000 2,805,000 457,000 - (587,000) 15,280,000 ? Selling, general and ? administrative expenses 6,775,000 11,481,000 1,604,000 2,244,000 - (587,000) 21,517,000 ? Impairment loss - - 1,463,000 154,000 - - 1,617,000 ? Restructuring expense 2,326,000 - - - - - 2,326,000 ? Operating (loss) income (8,660,000) 683,000 (262,000) (1,941,000) - - (10,180,000) ? Other income (expense) (80,000) 10,000 - 34,000 21,000 - (15,000) ? Income (loss) before income tax $ (8,740,000) $ 693,000 $ (262,000) $ (1,907,000) $ 21,000 $ - $ (10,195,000) ? ? Depreciation and amortization $ 1,695,000 $ 518,000 $ 230,000 $ 47,000 $ - $ - $ 2,490,000 ? ? Capital expenditures $ 100,000 $ 199,000 $ 5,000 $ 63,000 $ 23,000 $ - $ 390,000 ?