Quarterly report pursuant to Section 13 or 15(d)

Operating Segments

v3.19.3
Operating Segments
 3 Months Ended
Sep. 30, 2019
Segment Reporting [Abstract]  
Operating Segments

NOTE 20 – 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, 2019 and June 30, 2019:

 

    As of     As of  
    September 30, 2019     June 30, 2019  
Identifiable assets:                
Corporate headquarters   $ 3,889,608     $ 2,947,727  
North America     5,797,752       5,730,928  
Europe     9,260,282       8,399,033  
Asia - Pacific     69,431,740       70,419,331  
Consolidated   $ 88,379,382     $ 87,497,019  

 

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

 

    As of     As of  
    September 30, 2019     June 30, 2019  
Investment in associates under equity method:                
Corporate headquarters   $ 630,186     $ 686,504  
Asia - Pacific     1,830,684       1,967,265  
Consolidated   $ 2,460,870     $ 2,653,769  

 

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

 

    For the Three Months  
    Ended September 30,  
    2019     2018  
Revenues from unaffiliated customers:                
North America   $ 977,175     $ 843,085  
Europe     2,592,339       1,919,934  
Asia - Pacific     9,919,969       13,403,395  
      13,489,483       16,166,414  
Revenue from affiliated customers                
Asia - Pacific     82,933       230,131  
      82,933       230,131  
Consolidated   $ 13,572,416     $ 16,396,545  
                 
Intercompany revenue                
Europe   $ 146,825     $ 138,653  
Asia - Pacific     1,064,766       3,192,386  
Eliminated   $ 1,211,591     $ 3,331,039  
                 
Net income (loss) after taxes and before non-controlling interest:                
Corporate headquarters   $ (864,210 )   $ (1,218,387 )
North America     (57,987 )     (178,630 )
Europe     381,094       174,088  
Asia - Pacific     (1,720,156 )     2,504,064  
Consolidated   $ (2,261,259 )   $ 1,281,135  

 

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

 

    For the Three Months  
    Ended September 30,  
    2019     2018  
Capital expenditures:                
North America   $ -     $ -  
Europe     31,852       98,444  
Asia - Pacific     289,273       464,969  
Consolidated   $ 321,125     $ 563,413