Quarterly report pursuant to Section 13 or 15(d)

15. Segment Reporting

v3.2.0.727
15. Segment Reporting
9 Months Ended
Jun. 30, 2015
Segment Reporting [Abstract]  
Segment Reporting

The Company operates in two segments which are characterized as: (1) legacy and merchants’ services and (2) online marketplace platform. The legacy and merchants’ services consists of LEC business and Velocity Local and the online marketplace platform consists of livedeal.com and the recent acquisitions of consumer products entities.

 

The following tables summarize segment information for the three and nine months ended June 30, 2015 and 2014:

 

    Three Months Ended June 30,     Nine Months Ended June 30,  
    2015     2014     2015     2014  
                         
Revenues                                
Marketplace platform   $ 2,565,330     $ 2,197,324     $ 14,042,094     $ 2,361,716  
Services     374,075       477,082       1,168,342       1,584,181  
    $ 2,939,405     $ 2,674,406     $ 15,210,436     $ 3,945,897  
                                 
Gross profit (loss)                                
Marketplace platform   $ 809,253     $ (111,149 )   $ 5,268,391     $ (99,750 )
Services     333,793       406,097       1,046,707       1,299,182  
    $ 1,143,046     $ 294,948     $ 6,315,098     $ 1,199,432  
                                 
Operating income (loss)                                
Marketplace platform   $ (4,414,858 )   $ (1,801,774 )   $ (6,954,605 )   $ (3,679,769 )
Services     271,221       330,239       853,739       811,643  
    $ (4,143,637 )   $ (1,471,535 )   $ (6,100,866 )   $ (2,868,126 )
                                 
Depreciation and amortization                                
Marketplace platform   $ 165,205     $ 123,119     $ 490,659     $ 325,134  
Services     3,347       4,396       10,040       13,618  
    $ 168,552     $ 127,515     $ 500,699     $ 338,752  
                                 
Interest Expenses                                
Marketplace platform   $ 5,678     $ 172,708     $ 4,202,622     $ 284,082  
Services                        
    $ 5,678     $ 172,708     $ 4,202,622     $ 284,082  
                                 
Net income (loss)                                
Marketplace platform   $ (4,479,612 )   $ (1,994,740 )   $ (11,104,784 )   $ (3,862,580 )
Services     271,221       452,839       853,739       936,667  
    $ (4,208,391 )   $ (1,541,901 )   $ (10,251,045 )   $ (2,925,913 )

 

    As of     As of  
    June 30,     September 30,  
    2015     2014  
Total Assets                
Marketplace platform   $ 15,297,836     $ 18,118,425  
Services     163,361       171,021  
    $ 15,461,197     $ 18,289,446  
                 
Intangible assets                
Marketplace platform   $ 4,892,586     $ 4,234,692  
Services     4,605       6,422  
    $ 4,897,191     $ 4,241,114