Quarterly report pursuant to Section 13 or 15(d)

Operating Segments

v3.7.0.1
Operating Segments
9 Months Ended
Mar. 31, 2017
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 March 31, 2017 and June 30, 2016:

 

    As of
March 31, 2017
    As of
June 30, 2016
 
Identifiable assets:                
Corporate headquarters   $ 3,170,329     $ 3,646,160  
North America     6,581,063       6,845,444  
Europe     6,415,485       7,857,427  
Asia - Pacific     82,054,411       75,000,384  
Consolidated   $ 98,221,288     $ 93,349,415  

 

The following table presents a summary of operating information for the three and nine months ended March 31:

 

    For the Three Months     For the Nine Months  
    Ended March 31,     Ended March 31,  
    2017     2016     2017     2016  
Revenues from unaffiliated customers:                                
North America   $ 1,111,897     $ 1,739,115     $ 4,467,325     $ 4,194,321  
Europe     1,579,486       1,514,370       4,083,572       4,692,125  
Asia - Pacific     13,582,107       9,653,000       36,849,442       28,503,771  
      16,273,490       12,906,485       45,400,339       37,390,217  
Revenue from affiliated customers                                
Europe     229,081       997,474       1,080,868       1,984,017  
Asia - Pacific     1,446,749       2,069,940       4,403,368       6,096,466  
      1,675,830       3,067,414       5,484,236       8,080,483  
Consolidated   $ 17,949,320     $ 15,973,899     $ 50,884,575     $ 45,470,700  
                                 
Intercompany revenue                                
Europe   $ 112,419     $ 132,978     $ 343,599     $ 375,471  
Asia - Pacific     292,839       1,330,946       2,215,393       4,390,555  
 Eliminated   $ 405,258     $ 1,463,924     $ 2,558,992     $ 4,766,026  
                                 
Net income (loss) after taxes and before non-controlling interest:                                
Corporate headquarters   $ (1,147,068 )   $ (1,160,828 )   $ (3,967,144 )   $ (2,350,656 )
North America     (302,353 )     516,849       (105,595 )     97,089  
Europe     (199,215 )     696,437       (997,867 )     42,267  
Asia - Pacific     3,786,853       1,104,156       6,215,196       4,906,849  
Consolidated   $ 2,138,217     $ 1,156,614     $ 1,144,590     $ 2,695,549  

 

The following table presents a summary of capital expenditures for the nine months ended March 31:

 

    For the Nine Months  
    Ended March 31,  
    2017     2016  
Capital expenditures:                
Corporate headquarters   $ -     $ -  
North America     41,340       57,114  
Europe     422,024       333,683  
Asia - Pacific     852,558       2,133,068  
Consolidated   $ 1,315,922     $ 2,523,865