Quarterly report pursuant to Section 13 or 15(d)

Operating Segments

v3.10.0.1
Operating Segments
 3 Months Ended
Sep. 30, 2018
Segment Reporting [Abstract]  
Operating Segments

NOTE 19 – 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, 2018 and June 30, 2018:

 

    As of     As of  
    September 30, 2018     June 30, 2018  
Identifiable assets:                
Corporate headquarters   $ 2,708,696     $ 2,839,049  
North America     5,375,504       5,764,042  
Europe     7,257,811       7,242,080  
Asia - Pacific     74,992,823       83,929,110  
Consolidated   $ 90,334,834     $ 99,774,281  

 

The following table presents a summary of investment under equity method as of September 30, 2018 and June 30, 2018:

 

    As of     As of  
    September 30, 2018     June 30, 2018  
Investment in WRLD3D:                
Corporate headquarters   $ 844,563     $ 918,628  
Asia - Pacific     2,114,129       2,298,534  
Consolidated   $ 2,958,692     $ 3,217,162  

 

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

 

    For the Three Months  
    Ended September 30,  
    2018     2017  
Revenues from unaffiliated customers:                
North America   $ 843,085     $ 848,072  
Europe     1,766,594       1,447,824  
Asia - Pacific     13,403,395       8,521,632  
      16,013,074       10,817,528  
Revenue from affiliated customers                
Europe     153,340       601,192  
Asia - Pacific     230,131       1,400,056  
      383,471       2,001,248  
Consolidated   $ 16,396,545     $ 12,818,776  
                 
Intercompany revenue                
Europe   $ 138,653     $ 102,475  
Asia - Pacific     3,192,386       376,937  
Eliminated   $ 3,331,039     $ 479,412  
                 
Net income (loss) after taxes and before non-controlling interest:                
Corporate headquarters   $ (1,218,387 )   $ (1,037,924 )
North America     (178,630 )     (295,646 )
Europe     174,088       99,390  
Asia - Pacific     2,504,064       1,052,915  
Consolidated   $ 1,281,135     $ (181,265 )

 

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

 

    For the Three Months  
    Ended September 30,  
    2018     2017  
Capital expenditures:                
North America   $ -     $ -  
Europe     98,444       76,809  
Asia - Pacific     464,969       251,354  
Consolidated   $ 563,413     $ 328,163