| Segment Reporting |
The Company operates
in three segments which are characterized as: (1) legacy merchant’s services, (2) online marketplace platform
(includes corporate operations) and (3) manufacturing. The legacy merchants’ services consists of directory services, the
online marketplace platform consists of livedeal.com and the fiscal 2014 acquisitions of consumer products entities and the manufacturing
segment consists of the 2015 acquisition of Marquis Industries.
The following
tables summarize segment information for the three and nine months ended June 30, 2016 and 2015:
| |
|
Three Months Ended
June 30, |
|
|
Nine Months Ended
June 30, |
|
| |
|
2016 |
|
|
2015 |
|
|
2016 |
|
|
2015 |
|
| Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Marketplace platform |
|
$ |
508,099 |
|
|
$ |
2,565,330 |
|
|
$ |
5,284,851 |
|
|
$ |
14,042,094 |
|
| Manufacturing |
|
|
19,243,019 |
|
|
|
– |
|
|
|
53,881,143 |
|
|
|
– |
|
| Services |
|
|
243,245 |
|
|
|
374,075 |
|
|
|
772,726 |
|
|
|
1,168,342 |
|
| |
|
$ |
19,994,363 |
|
|
$ |
2,939,405 |
|
|
$ |
59,938,720 |
|
|
$ |
15,210,436 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Gross profit |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Marketplace platform |
|
$ |
(616,754 |
) |
|
$ |
809,253 |
|
|
$ |
1,233,705 |
|
|
$ |
5,268,391 |
|
| Manufacturing |
|
|
5,483,896 |
|
|
|
– |
|
|
|
15,143,363 |
|
|
|
– |
|
| Services |
|
|
232,272 |
|
|
|
333,793 |
|
|
|
738,420 |
|
|
|
1,046,707 |
|
| |
|
$ |
5,099,414 |
|
|
$ |
1,143,046 |
|
|
$ |
17,115,488 |
|
|
$ |
6,315,098 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Operating income (loss) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Marketplace platform |
|
$ |
(2,228,857 |
) |
|
$ |
(4,414,858 |
) |
|
$ |
(4,378,431 |
) |
|
$ |
(6,954,605 |
) |
| Manufacturing |
|
|
3,055,516 |
|
|
|
– |
|
|
|
6,946,781 |
|
|
|
– |
|
| Services |
|
|
230,559 |
|
|
|
271,221 |
|
|
|
734,598 |
|
|
|
853,739 |
|
| |
|
$ |
1,057,218 |
|
|
$ |
(4,143,637 |
) |
|
$ |
3,302,948 |
|
|
$ |
(6,100,866 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Depreciation and amortization |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Marketplace platform |
|
$ |
65,404 |
|
|
$ |
165,205 |
|
|
$ |
201,647 |
|
|
$ |
490,659 |
|
| Manufacturing |
|
|
496,591 |
|
|
|
– |
|
|
|
1,421,366 |
|
|
|
– |
|
| Services |
|
|
– |
|
|
|
3,347 |
|
|
|
– |
|
|
|
10,040 |
|
| |
|
$ |
561,995 |
|
|
$ |
168,552 |
|
|
$ |
1,623,013 |
|
|
$ |
500,699 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Marketplace platform |
|
$ |
10,346 |
|
|
$ |
5,678 |
|
|
$ |
121,319 |
|
|
$ |
4,202,622 |
|
| Manufacturing |
|
|
259,661 |
|
|
|
– |
|
|
|
829,157 |
|
|
|
– |
|
| Services |
|
|
– |
|
|
|
– |
|
|
|
– |
|
|
|
– |
|
| |
|
$ |
270,007 |
|
|
$ |
5,678 |
|
|
$ |
950,476 |
|
|
$ |
4,202,622 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Provision for income taxes |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Marketplace platform |
|
$ |
(12,254,278 |
) |
|
$ |
– |
|
|
$ |
(12,254,278 |
) |
|
$ |
– |
|
| Manufacturing |
|
|
– |
|
|
|
– |
|
|
|
413,980 |
|
|
|
– |
|
| Services |
|
|
– |
|
|
|
– |
|
|
|
– |
|
|
|
– |
|
| |
|
$ |
(12,254,278 |
) |
|
$ |
– |
|
|
$ |
(11,840,298 |
) |
|
$ |
– |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net income (loss) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Marketplace platform |
|
$ |
10,680,437 |
|
|
$ |
(4,479,612 |
) |
|
$ |
8,935,139 |
|
|
$ |
(11,104,784 |
) |
| Manufacturing |
|
|
2,457,201 |
|
|
|
– |
|
|
|
5,229,753 |
|
|
|
– |
|
| Services |
|
|
230,559 |
|
|
|
271,221 |
|
|
|
722,155 |
|
|
|
853,739 |
|
| |
|
$ |
13,368,197 |
|
|
$ |
(4,208,391 |
) |
|
$ |
14,887,047 |
|
|
$ |
(10,251,045 |
) |
| |
|
As of |
|
|
As of |
|
| |
|
June 30, |
|
|
September 30, |
|
| |
|
2016 |
|
|
2015 |
|
| Total Assets |
|
|
|
|
|
|
|
|
| Marketplace platform |
|
$ |
15,140,362 |
|
|
$ |
6,811,977 |
|
| Manufacturing |
|
|
36,823,082 |
|
|
|
33,714,344 |
|
| Services |
|
|
108,869 |
|
|
|
138,035 |
|
| |
|
$ |
52,072,313 |
|
|
$ |
40,664,356 |
|
| |
|
|
|
|
|
|
|
|
| Intangible assets |
|
|
|
|
|
|
|
|
| Marketplace platform |
|
$ |
1,343,138 |
|
|
$ |
1,516,930 |
|
| Manufacturing |
|
|
800,000 |
|
|
|
800,000 |
|
| Services |
|
|
– |
|
|
|
– |
|
| |
|
$ |
2,143,138 |
|
|
$ |
2,316,930 |
|
|