Quarterly report pursuant to Section 13 or 15(d)

Operating Segments

v3.19.1
Operating Segments
9 Months Ended
Mar. 31, 2019
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 March 31, 2019 and June 30, 2018:

 

    As of     As of  
    March 31, 2019     June 30, 2018  
Identifiable assets:                
Corporate headquarters   $ 3,304,985     $ 2,839,049  
North America     5,063,406       5,764,042  
Europe     7,952,095       7,242,080  
Asia - Pacific     75,422,846       83,929,110  
Consolidated   $ 91,743,332     $ 99,774,281  

 

The following table presents a summary of investment under equity method as of March 31, 2019 and June 30, 2018:

 

    As of     As of  
    March 31, 2019     June 30, 2018  
Investment in WRLD3D:                
Corporate headquarters   $ 713,497     $ 918,628  
Asia - Pacific     1,787,802       2,298,534  
Consolidated   $ 2,501,299     $ 3,217,162  

 

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,  
    2019     2018     2019     2018  
Revenues from unaffiliated customers:                                
North America   $ 1,022,655     $ 998,403     $ 2,843,190     $ 3,134,113  
Europe     2,075,049       1,764,651       5,746,614       4,873,688  
Asia - Pacific     13,542,170       12,891,024       40,696,025       31,355,376  
      16,639,874       15,654,078       49,285,829       39,363,177  
Revenue from affiliated customers                                
Europe     330,185       464,976       678,779       1,508,867  
Asia - Pacific     156,996       924,766       561,619       3,436,987  
      487,181       1,389,742       1,240,398       4,945,854  
Consolidated   $ 17,127,055     $ 17,043,820     $ 50,526,227     $ 44,309,031  
                                 
Intercompany revenue                                
Europe   $ 120,153     $ 137,864     $ 416,483     $ 379,567  
Asia - Pacific     1,389,773       338,201       6,887,631       1,483,569  
Eliminated   $ 1,509,926     $ 476,065     $ 7,304,114     $ 1,863,136  
                                 
Net income (loss) after taxes and before non-controlling interest:                                
Corporate headquarters   $ 692,854     $ (529,048 )   $ (1,667,600 )   $ (2,825,689 )
North America     (92,029 )     (11,777 )     (426,209 )     (242,229 )
Europe     330,039       265,831       735,972       545,876  
Asia - Pacific     838,531       5,134,307       8,739,351       8,862,092  
Consolidated   $ 1,769,395     $ 4,859,313     $ 7,381,514     $ 6,340,050  

 

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

 

    For the Nine Months  
    Ended March 31,  
    2019     2018  
Capital expenditures:                
North America   $ 1,383     $ 3,556  
Europe     461,376       254,548  
Asia - Pacific     2,127,543       849,628  
Consolidated   $ 2,590,302     $ 1,107,732