| Segment Information and Geographic Areas |
NOTE 19
– SEGMENT INFORMATION AND GEOGRAPHIC AREAS
The Company has identified three global regions
or segments for its products and services; North America, Europe, and Asia-Pacific. The 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 operational issues and strategies unique to their particular regional location. We account
for intercompany sales and expenses as if the sales or expenses were to third parties and eliminate them in consolidation.
The following table presents a summary of identifiable
assets as of June 30, 2018 and 2017:
| |
|
2018 |
|
|
2017 |
|
| Identifiable assets: |
|
|
|
|
|
|
|
|
| Corporate headquarters |
|
$ |
2,839,049 |
|
|
$ |
2,922,514 |
|
| North America |
|
|
5,764,042 |
|
|
|
6,717,366 |
|
| Europe |
|
|
7,242,080 |
|
|
|
6,056,514 |
|
| Asia - Pacific |
|
|
83,929,110 |
|
|
|
83,980,936 |
|
| Consolidated |
|
$ |
99,774,281 |
|
|
$ |
99,677,330 |
|
The following table presents a summary of investment
under equity method as of June 30, 2018 and 20172017:
| |
|
2018 |
|
|
2017 |
|
| Investment in WRLD3D: |
|
|
|
|
|
|
|
|
| Corporate headquarters |
|
$ |
918,628 |
|
|
$ |
1,111,111 |
|
| Asia - Pacific |
|
|
2,298,534 |
|
|
|
1,945,909 |
|
| Consolidated |
|
$ |
3,217,162 |
|
|
$ |
3,057,020 |
|
The following table presents a summary of operating information
for the years ended June 30:
| |
|
2018 |
|
|
2017 |
|
| |
|
|
|
|
|
|
| Revenues from unaffiliated customers: |
|
|
|
|
|
|
|
|
| North America |
|
$ |
4,036,626 |
|
|
$ |
5,624,434 |
|
| Europe |
|
|
6,767,845 |
|
|
|
5,550,536 |
|
| Asia - Pacific |
|
|
43,788,074 |
|
|
|
46,000,208 |
|
| |
|
|
54,592,545 |
|
|
|
57,175,178 |
|
| Revenue from affiliated customers |
|
|
|
|
|
|
|
|
| Europe |
|
|
2,111,315 |
|
|
|
1,299,784 |
|
| Asia - Pacific |
|
|
4,226,398 |
|
|
|
6,891,306 |
|
| |
|
|
6,337,713 |
|
|
|
8,191,090 |
|
| Consolidated |
|
$ |
60,930,258 |
|
|
$ |
65,366,268 |
|
| |
|
|
|
|
|
|
|
|
| Intercompany revenue |
|
|
|
|
|
|
|
|
| Europe |
|
$ |
545,330 |
|
|
$ |
509,328 |
|
| Asia - Pacific |
|
|
2,729,173 |
|
|
|
2,599,243 |
|
| Eliminated |
|
$ |
3,274,503 |
|
|
$ |
3,108,571 |
|
| |
|
|
|
|
|
|
|
|
| Net income (loss) after taxes and before non-controlling interest: |
|
|
|
|
|
|
|
|
| Corporate headquarters |
|
$ |
(1,899,110 |
) |
|
$ |
(5,084,078 |
) |
| North America |
|
|
(237,708 |
) |
|
|
(454,297 |
) |
| Europe |
|
|
1,059,823 |
|
|
|
(1,956,137 |
) |
| Asia - Pacific |
|
|
8,226,973 |
|
|
|
5,758,076 |
|
| Consolidated |
|
$ |
7,149,978 |
|
|
$ |
(1,736,436 |
) |
| |
|
|
|
|
|
|
|
|
| Depreciation and amortization: |
|
|
|
|
|
|
|
|
| North America |
|
$ |
43,049 |
|
|
$ |
47,583 |
|
| Europe |
|
|
249,256 |
|
|
|
206,407 |
|
| Asia - Pacific |
|
|
5,281,169 |
|
|
|
6,308,344 |
|
| Consolidated |
|
$ |
5,573,474 |
|
|
$ |
6,562,334 |
|
| |
|
|
|
|
|
|
|
|
| Interest expense: |
|
|
|
|
|
|
|
|
| Corporate headquarters |
|
$ |
10,402 |
|
|
$ |
8,576 |
|
| North America |
|
|
113 |
|
|
|
138 |
|
| Europe |
|
|
15,628 |
|
|
|
17,462 |
|
| Asia - Pacific |
|
|
396,184 |
|
|
|
283,868 |
|
| Consolidated |
|
$ |
422,327 |
|
|
$ |
310,044 |
|
| |
|
|
|
|
|
|
|
|
| Income tax expense: |
|
|
|
|
|
|
|
|
| Europe |
|
$ |
(8,435 |
) |
|
$ |
- |
|
| Asia - Pacific |
|
|
881,462 |
|
|
|
931,951 |
|
| Consolidated |
|
$ |
873,027 |
|
|
$ |
931,951 |
|
The following table presents a summary of capital
expenditures for the years ended June 30:
| |
|
2018 |
|
|
2017 |
|
| Capital expenditures: |
|
|
|
|
|
|
|
|
| North America |
|
$ |
5,184 |
|
|
$ |
41,340 |
|
| Europe |
|
|
336,908 |
|
|
|
520,920 |
|
| Asia - Pacific |
|
|
2,107,357 |
|
|
|
1,640,943 |
|
| Consolidated |
|
$ |
2,449,449 |
|
|
$ |
2,203,203 |
|
Geographic Information
Disclosed in the table below is geographic
information for each country that comprised greater than five percent of total revenues for the years ended June 30, 2018 and 2017.
| |
|
June 30, 2018 |
|
|
June 30, 2017 |
|
| |
|
Revenue |
|
|
Long-lived Assets |
|
|
Revenue |
|
|
Long-lived Assets |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| China |
|
$ |
18,443,294 |
|
|
$ |
256,156 |
|
|
$ |
22,737,967 |
|
|
$ |
341,238 |
|
| Thailand |
|
|
7,049,581 |
|
|
|
241,284 |
|
|
|
3,887,089 |
|
|
|
211,892 |
|
| USA |
|
|
2,932,884 |
|
|
|
5,642,245 |
|
|
|
4,378,433 |
|
|
|
5,975,412 |
|
| UK |
|
|
12,972,855 |
|
|
|
4,444,416 |
|
|
|
13,152,380 |
|
|
|
4,350,199 |
|
| Pakistan & India |
|
|
2,095,734 |
|
|
|
31,815,109 |
|
|
|
1,653,393 |
|
|
|
44,501,157 |
|
| Australia & New Zealand |
|
|
3,553,136 |
|
|
|
24,175 |
|
|
|
6,618,930 |
|
|
|
25,357 |
|
| Mexico |
|
|
1,236,454 |
|
|
|
- |
|
|
|
1,835,251 |
|
|
|
- |
|
| Indonesia |
|
|
8,294,934 |
|
|
|
- |
|
|
|
3,265,412 |
|
|
|
- |
|
| South Africa |
|
|
2,279,331 |
|
|
|
- |
|
|
|
3,451,931 |
|
|
|
- |
|
| Other Countries |
|
|
2,072,055 |
|
|
|
- |
|
|
|
4,385,482 |
|
|
|
- |
|
| Total |
|
$ |
60,930,258 |
|
|
$ |
42,423,385 |
|
|
$ |
65,366,268 |
|
|
$ |
55,405,255 |
|
Disclosed in the table below is the reconciliation
of revenue by each entity and country disclosed above for the years ended June 30, 2018 and 2017.
| |
|
Revenues 2018 |
|
| |
|
Total |
|
|
China |
|
|
Thailand |
|
|
USA |
|
|
UK |
|
|
Pakistan & India |
|
|
Australia & New Zealand |
|
|
Mexico |
|
|
Indonesia |
|
|
South Africa |
|
|
Other Countries |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| North America: |
|
$ |
4,036,626 |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
2,800,172 |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
1,236,454 |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
| Europe: |
|
|
8,879,160 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
8,879,160 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
| Asia-Pacific: |
|
|
48,014,472 |
|
|
|
18,443,294 |
|
|
|
7,049,581 |
|
|
|
132,712 |
|
|
|
4,093,695 |
|
|
|
2,095,734 |
|
|
|
3,553,136 |
|
|
|
- |
|
|
|
8,294,934 |
|
|
|
2,279,331 |
|
|
|
2,072,055 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total |
|
$ |
60,930,258 |
|
|
$ |
18,443,294 |
|
|
$ |
7,049,581 |
|
|
$ |
2,932,884 |
|
|
$ |
12,972,855 |
|
|
$ |
2,095,734 |
|
|
$ |
3,553,136 |
|
|
$ |
1,236,454 |
|
|
$ |
8,294,934 |
|
|
$ |
2,279,331 |
|
|
$ |
2,072,055 |
|
| |
|
Revenues 2017 |
|
| |
|
Total |
|
|
China |
|
|
Thailand |
|
|
USA |
|
|
UK |
|
|
Pakistan & India |
|
|
Australia & New Zealand |
|
|
Mexico |
|
|
Indonesia |
|
|
South Africa |
|
|
Other Countries |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| North America: |
|
$ |
5,624,434 |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
3,789,183 |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
1,835,251 |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
| Europe: |
|
|
6,850,320 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
6,850,320 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
| Asia-Pacific: |
|
|
52,891,514 |
|
|
|
22,737,967 |
|
|
|
3,887,089 |
|
|
|
589,250 |
|
|
|
6,302,060 |
|
|
|
1,653,393 |
|
|
|
6,618,930 |
|
|
|
- |
|
|
|
3,265,412 |
|
|
|
3,451,931 |
|
|
|
4,385,482 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total |
|
$ |
65,366,268 |
|
|
$ |
22,737,967 |
|
|
$ |
3,887,089 |
|
|
$ |
4,378,433 |
|
|
$ |
13,152,380 |
|
|
$ |
1,653,393 |
|
|
$ |
6,618,930 |
|
|
$ |
1,835,251 |
|
|
$ |
3,265,412 |
|
|
$ |
3,451,931 |
|
|
$ |
4,385,482 |
|
|