| 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, 2017 and June 30, 2017:
| |
|
As of December 31, |
|
|
As of June 30, |
|
| |
|
2017 |
|
|
2017 |
|
| Identifiable assets: |
|
|
|
|
|
|
|
|
| Corporate headquarters |
|
$ |
3,308,334 |
|
|
$ |
2,922,514 |
|
| North America |
|
|
5,513,464 |
|
|
|
6,717,366 |
|
| Europe |
|
|
6,590,233 |
|
|
|
6,056,514 |
|
| Asia - Pacific |
|
|
89,125,306 |
|
|
|
83,980,936 |
|
| Consolidated |
|
$ |
104,537,337 |
|
|
$ |
99,677,330 |
|
The following table presents a summary of investment under
equity method as of December 31, 2017 and June 30, 2017:
| |
|
As of December 31, |
|
|
As of June 30, |
|
| |
|
2017 |
|
|
2017 |
|
| Investment in WRLD3D: |
|
|
|
|
|
|
|
|
| Corporate headquarters |
|
$ |
1,033,486 |
|
|
$ |
1,111,111 |
|
| Asia - Pacific |
|
|
2,356,315 |
|
|
|
1,945,909 |
|
| Consolidated |
|
$ |
3,389,801 |
|
|
$ |
3,057,020 |
|
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, |
|
| |
|
2017 |
|
|
2016 |
|
|
2017 |
|
|
2016 |
|
| |
|
|
|
|
Restated |
|
|
|
|
|
Restated |
|
| Revenues from unaffiliated customers: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| North America |
|
$ |
1,287,638 |
|
|
$ |
1,513,997 |
|
|
$ |
2,135,710 |
|
|
$ |
3,355,428 |
|
| Europe |
|
|
1,661,213 |
|
|
|
1,298,037 |
|
|
|
3,109,037 |
|
|
|
1,888,578 |
|
| Asia - Pacific |
|
|
10,258,128 |
|
|
|
11,530,506 |
|
|
|
18,464,352 |
|
|
|
23,267,335 |
|
| |
|
|
13,206,979 |
|
|
|
14,342,540 |
|
|
|
23,709,099 |
|
|
|
28,511,341 |
|
| Revenue from affiliated customers |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Europe |
|
|
442,699 |
|
|
|
115,102 |
|
|
|
1,043,891 |
|
|
|
1,467,295 |
|
| Asia - Pacific |
|
|
796,757 |
|
|
|
1,401,144 |
|
|
|
2,512,221 |
|
|
|
2,956,619 |
|
| |
|
|
1,239,456 |
|
|
|
1,516,246 |
|
|
|
3,556,112 |
|
|
|
4,423,914 |
|
| Consolidated |
|
$ |
14,446,435 |
|
|
$ |
15,858,786 |
|
|
$ |
27,265,211 |
|
|
$ |
32,935,255 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Intercompany revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Europe |
|
$ |
139,228 |
|
|
$ |
95,053 |
|
|
$ |
241,703 |
|
|
$ |
231,180 |
|
| Asia - Pacific |
|
|
768,431 |
|
|
|
1,462,603 |
|
|
|
1,145,368 |
|
|
|
1,922,554 |
|
| Eliminated |
|
$ |
907,659 |
|
|
$ |
1,557,656 |
|
|
$ |
1,387,071 |
|
|
$ |
2,153,734 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net income (loss) after taxes and before non-controlling interest: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Corporate headquarters |
|
$ |
(1,258,717 |
) |
|
$ |
(1,190,559 |
) |
|
$ |
(2,296,641 |
) |
|
$ |
(2,179,432 |
) |
| North America |
|
|
65,194 |
|
|
|
(71,134 |
) |
|
|
(230,452 |
) |
|
|
(266,817 |
) |
| Europe |
|
|
180,655 |
|
|
|
(698,364 |
) |
|
|
280,045 |
|
|
|
(1,293,771 |
) |
| Asia - Pacific |
|
|
2,674,870 |
|
|
|
583,327 |
|
|
|
3,727,785 |
|
|
|
2,746,393 |
|
| Consolidated |
|
$ |
1,662,002 |
|
|
$ |
(1,376,730 |
) |
|
$ |
1,480,737 |
|
|
$ |
(993,627 |
) |
The following table presents a summary of capital expenditures
for the six months ended December 31:
| |
|
For the Six Months |
|
| |
|
Ended December 31, |
|
| |
|
2017 |
|
|
2016 |
|
| Capital expenditures: |
|
|
|
|
|
|
|
|
| North America |
|
$ |
- |
|
|
$ |
41,275 |
|
| Europe |
|
|
123,335 |
|
|
|
273,794 |
|
| Asia - Pacific |
|
|
419,788 |
|
|
|
759,247 |
|
| Consolidated |
|
$ |
543,123 |
|
|
$ |
1,074,316 |
|
|