Annual report pursuant to Section 13 and 15(d)

Segment Information and Geographic Areas

v3.5.0.2
Segment Information and Geographic Areas
 12 Months Ended
Jun. 30, 2016
Segment Reporting [Abstract]  
Segment Information and Geographic Areas

NOTE 17 – 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, 2016 and 2015:

 

    As of June 30,     As of June 30,  
    2016     2015  
Identifiable assets:                
Corporate headquarters   $ 3,646,160     $ 4,896,334  
North America     6,845,444       7,162,846  
Europe     7,857,427       6,631,945  
Asia - Pacific     75,000,384       70,271,209  
Consolidated   $ 93,349,415     $ 88,962,334  

 

The following table presents a summary of operating information for the years ended June 30:

 

    2016     2015  
Revenues from unaffiliated customers:                
North America   $ 5,464,740     $ 5,535,183  
Europe     6,232,200       5,707,127  
Asia - Pacific     40,254,321       32,110,574  
      51,951,261       43,352,884  
Revenue from affiliated customers                
Europe     4,437,917       1,652,077  
Asia - Pacific     8,161,015       6,043,617  
      12,598,932       7,695,694  
Consolidated   $ 64,550,193     $ 51,048,578  
                 
Intercompany revenue                
Europe   $ 558,645     $ 302,812  
Asia - Pacific     4,807,276       4,620,426  
Eliminated   $ 5,365,921     $ 4,923,238  
                 
Net income (loss) after taxes and before non-controlling interest:                
Corporate headquarters   $ (3,252,340 )   $ (3,665,755 )
North America     635,203       221,433  
Europe     1,576,176       (1,262,222 )
Asia - Pacific     6,098,102       (542,628 )
Consolidated   $ 5,057,141     $ (5,249,172 )
                 
Depreciation and amortization:                
Corporate headquarters   $ -     $ 16,148  
North America     35,268       165,240  
Europe     172,755       665,826  
Asia - Pacific     6,944,116       9,496,600  
Consolidated   $ 7,152,139     $ 10,343,814  
                 
Interest expense:                
Corporate headquarters   $ 6,236     $ 13,783  
North America     117       1,588  
Europe     40,302       52,926  
Asia - Pacific     217,856       98,665  
Consolidated   $ 264,511     $ 166,962  
                 
Income tax expense:                
Europe   $ 46,691     $ 1,244  
Asia - Pacific     605,855       412,254  
Consolidated   $ 652,546     $ 413,498  

 

The following table presents a summary of capital expenditures for the years ended June 30:

 

    2016     2015  
Capital expenditures:                
Corporate headquarters   $ -     $ 3,439  
North America     66,764       47,497  
Europe     417,861       140,870  
Asia - Pacific     2,851,296       3,366,906  
Consolidated   $ 3,335,921     $ 3,558,712  

 

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 2016 and 2015.

 

    June 30, 2016     June 30, 2015  
    Revenue     Long-lived Assets     Revenue     Long-lived Assets  
                         
China   $ 17,276,250     $ 19,851     $ 15,119,518     $ 27,453  
Thailand     6,428,041       309,498       4,842,577       123,097  
USA     5,843,204       5,360,684       7,190,905       4,715,670  
UK     16,894,973       4,036,925       10,641,565       4,075,864  
Pakistan & India     1,842,046       43,047,590       1,868,090       48,457,329  
Australia & New Zealand     4,308,784       30,259       2,672,265       37,303  
Mexico     1,542,530       -       1,202,832       -  
Indonesia     6,201,642       -       5,212,919       -  
Other Countries     4,212,723       2,782       2,297,907       14,953  
Total   $ 64,550,193     $ 52,807,589     $ 51,048,578     $ 57,451,669  

 

Disclosed in the table below is the reconciliation of revenue by each entity and country disclosed above for the years ended June 30 2016 and 2015.

 

    Revenues 2016  
    Total     China     Thailand     USA     UK     Pakistan & India     Australia & New Zealand     Mexico     Indonesia     Other Countries  
                                                             
North America:   $ 5,464,740     $ -     $ -     $ 3,922,210     $ -     $ -     $ -     $ 1,542,530     $ -     $ -  
Europe:     10,670,117       -       -       -       10,446,098       -       -       -       -       224,019  
Asia-Pacific:     48,415,336       17,276,250       6,428,041       1,920,994       6,448,875       1,842,046       4,308,784       -       6,201,642       3,988,704  
Total   $ 64,550,193     $ 17,276,250     $ 6,428,041     $ 5,843,204     $ 16,894,973     $ 1,842,046     $ 4,308,784     $ 1,542,530     $ 6,201,642     $ 4,212,723  

 

    Revenues 2015  
    Total     China     Thailand     USA     UK     Pakistan & India     Australia & New Zealand     Mexico     Indonesia     Other Countries  
                                                             
North America:   $ 5,535,183     $ -     $ -     $ 4,332,351     $ -     $ -     $ -     $ 1,202,832     $ -     $ -  
Europe:     7,375,527       -       -       -       7,094,304       -       -       -       -       281,223  
Asia-Pacific:     38,137,868       15,119,518       4,842,577       2,858,554       3,547,261       1,868,090       2,672,265       -       5,212,919       2,016,684  
Total   $ 51,048,578     $ 15,119,518     $ 4,842,577     $ 7,190,905     $ 10,641,565     $ 1,868,090     $ 2,672,265     $ 1,202,832     $ 5,212,919     $ 2,297,907