Quarterly report pursuant to Section 13 or 15(d)

Operating Segments

v3.20.4
Operating Segments
6 Months Ended
Dec. 31, 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 December 31, 2020 and June 30, 2020:

 

    As of     As of  
    December 31, 2020     June 30, 2020  
Identifiable assets:                
Corporate headquarters   $                   3,814,916     $ 4,508,724  
North America     6,073,162       5,949,653  
Europe     11,617,067       10,856,814  
Asia - Pacific     63,953,775       67,157,898  
Consolidated   $ 85,458,920     $ 88,473,089  

 

The following table presents a summary of investment under equity method as of December 31, 2020 and June 30, 2020:

 

    As of     As of  
    December 31, 2020     June 30, 2020  
Investment in associates under equity method:                
Corporate headquarters   $                     424,504     $ 473,692  
Asia - Pacific     3,310,403       1,914,000  
Consolidated   $ 3,734,907     $ 2,387,692  

 

The following table presents a summary of operating information for the three and six months ended December 31:

 

    For the Three Months     For the Six Months  
    Ended December 31,     Ended December 31,  
    2020     2019     2020     2019  
Revenues from unaffiliated customers:                                
North America   $ 1,016,556     $ 1,277,343     $ 1,829,434     $ 2,254,518  
Europe     2,726,206       2,842,329       5,878,097       5,434,668  
Asia - Pacific     9,378,698       11,512,923       18,061,307       21,432,892  
      13,121,460       15,632,595       25,768,838       29,122,078  
Revenue from affiliated customers                                
Asia - Pacific     -       57,424       -       140,357  
      -       57,424       -       140,357  
Consolidated   $ 13,121,460     $ 15,690,019     $ 25,768,838     $ 29,262,435  
                                 
Intercompany revenue                                
Europe   $ 126,757     $ 164,401     $ 265,913     $ 311,226  
Asia - Pacific     3,125,729       2,505,437       5,284,357       3,570,203  
Eliminated   $ 3,252,486     $ 2,669,838     $ 5,550,270     $ 3,881,429  
                                 
Net income (loss) after taxes and before non-controlling interest:                                
Corporate headquarters   $ 1,173,146     $ (379,882 )   $ 2,340,941     $ (1,244,092 )
North America     (47,019 )     154,335       (328,816 )     96,348  
Europe     173,085       423,649       776,101       804,743  
Asia - Pacific     (1,378,400 )     348,834       (1,743,937 )     (1,371,322 )
Consolidated   $ (79,188 )   $ 546,936     $ 1,044,289     $ (1,714,323 )

 

The following table presents a summary of capital expenditures for the six months ended December 31:

 

    For the Six Months  
    Ended December 31,  
    2020     2019  
Capital expenditures:                
North America   $ 1,521     $ 2,405  
Europe     301,233       329,332  
Asia - Pacific     947,141       454,262  
Consolidated   $ 1,249,895     $ 785,999