Quarterly report pursuant to Section 13 or 15(d)

Operating Segments

v3.20.2
Operating Segments
 3 Months Ended
Sep. 30, 2020
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, 2020 and June 30, 2020:

 

    As of     As of  
    September 30, 2020     June 30, 2020  
Identifiable assets:                
Corporate headquarters   $ 3,563,228     $ 4,508,724  
North America     5,879,871       5,949,653  
Europe     10,948,153       10,856,814  
Asia - Pacific     62,672,095       67,157,898  
Consolidated   $ 83,063,347     $ 88,473,089  

 

The following table presents a summary of investment under equity method as of September 30, 2020 and June 30, 2020:

 

    As of     As of  
    September 30, 2020     June 30, 2020  
Investment in associates under equity method:                
Corporate headquarters   $ 441,729     $ 473,692  
Asia - Pacific     1,975,562       1,914,000  
Consolidated   $ 2,417,291     $ 2,387,692  

  

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

 

    For the Three Months  
    Ended September 30,  
    2020     2019  
Revenues from unaffiliated customers:                
North America   $ 812,878     $ 977,175  
Europe     3,151,891       2,592,339  
Asia - Pacific     8,682,609       9,919,969  
      12,647,378       13,489,483  
Revenue from affiliated customers                
Asia - Pacific     -       82,933  
      -       82,933  
Consolidated   $ 12,647,378     $ 13,572,416  
                 
Intercompany revenue                
Europe   $ 139,156     $ 146,825  
Asia - Pacific     2,158,628       1,064,766  
Eliminated   $ 2,297,784     $ 1,211,591  
                 
Net income (loss) after taxes and before non-controlling interest:                
Corporate headquarters   $ 1,167,795     $ (864,210 )
North America     (281,797 )     (57,987 )
Europe     603,016       381,094  
Asia - Pacific     (365,537 )     (1,720,156 )
Consolidated   $ 1,123,477     $ (2,261,259 )

 

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

 

    For the Three Months  
    Ended September 30,  
    2020     2019  
Capital expenditures:                
North America   $ 1,521     $ -  
Europe     57,429       31,852  
Asia - Pacific     430,339       289,273  
Consolidated   $ 489,289     $ 321,125