Quarterly report pursuant to Section 13 or 15(d)

Operating Segments

v3.5.0.2
Operating Segments
 3 Months Ended
Sep. 30, 2016
Segment Reporting [Abstract]  
Operating Segments

NOTE 16 – OPERATING SEGMENTS

 

The Company has identified three segments for its products and services; North America, Europe and Asia-Pacific. Our reportable segments are business units located in different global regions. Each business unit provides similar products and services; license fees for leasing and asset-based software, related maintenance fees, and implementation and IT consulting services. Separate management of each segment is required because each business unit is subject to different operational issues and strategies due to their particular regional location. The Company accounts for intra-company sales and expenses as if the sales or expenses were to third parties and eliminates them in the consolidation.

 

The following table presents a summary of identifiable assets as of September 30, 2016 and June 30, 2016:

 

    As of     As of  
    September 30, 2016     June 30, 2016  
Identifiable assets:                
Corporate headquarters   $ 3,288,674     $ 3,646,160  
North America     6,994,289       6,845,444  
Europe     7,119,525       7,857,427  
Asia - Pacific     76,664,419       75,000,384  
Consolidated   $ 94,066,907     $ 93,349,415  

  

The following table presents a summary of operating information for the three months ended September 30:

 

    For the Three Months  
    Ended September 30,  
    2016     2015  
Revenues from unaffiliated customers:                
North America   $ 1,841,431     $ 1,502,468  
Europe     1,206,049       1,498,531  
Asia - Pacific     9,661,918       7,958,466  
      12,709,398       10,959,465  
Revenue from affiliated customers                
Europe     736,685       447,840  
Asia - Pacific     1,555,475       1,897,799  
      2,292,160       2,345,639  
Consolidated   $ 15,001,558     $ 13,305,104  
                 
Intercompany revenue                
Europe   $ 136,127     $ 136,786  
Asia - Pacific     459,951       944,189  
Eliminated   $ 596,078     $ 1,080,975  

 

Net income (loss) after taxes and before non-controlling interest:

 

Corporate headquarters   $ (1,562,419 )   $ (713,650 )
North America     267,892       376,714  
Europe     (100,288 )     (194,581 )
Asia - Pacific     (296,993 )     311,991  
Consolidated   $ (1,691,808 )   $ (219,526 )

 

The following table presents a summary of capital expenditures for the three months ended September 30:

 

    For the Three Months  
    Ended September 30,  
    2016     2015  
Capital expenditures:                
Corporate headquarters   $ -     $ -  
North America     4,103       22,677  
Europe     195,180       43,819  
Asia - Pacific     355,590       559,298  
Consolidated   $ 554,873     $ 625,794