| 18. Segment Reporting |
The Company operates in two segments
which are characterized as: (1) legacy merchant’s services and (2) online marketplace platform. The legacy/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 years ended September 30, 2014 and 2013:
| |
|
Year
Ended September 30, |
|
| |
|
2014 |
|
|
2013 |
|
| |
|
|
|
|
|
|
| Net revenues |
|
|
|
|
|
|
|
|
| Marketplace platform |
|
$ |
5,270,508 |
|
|
$ |
0 |
|
| Services |
|
|
1,994,768 |
|
|
|
2,351,868 |
|
| |
|
$ |
7,265,276 |
|
|
$ |
2,351,868 |
|
| |
|
|
|
|
|
|
|
|
| Gross profit |
|
|
|
|
|
|
|
|
| Marketplace platform |
|
$ |
435,830 |
|
|
$ |
0 |
|
| Services |
|
|
1,602,809 |
|
|
|
1,435,537 |
|
| |
|
$ |
2,038,639 |
|
|
$ |
1,435,537 |
|
| |
|
|
|
|
|
|
|
|
| Operating income (loss) |
|
|
|
|
|
|
|
|
| Marketplace platform |
|
$ |
(5,535,360 |
) |
|
$ |
(3,052,935 |
) |
| Services |
|
|
1,036,076 |
|
|
|
314,841 |
|
| |
|
$ |
(4,499,284 |
) |
|
$ |
(2,738,094 |
) |
| |
|
|
|
|
|
|
|
|
| Depreciation and amortization |
|
|
|
|
|
|
|
|
| Marketplace platform |
|
$ |
473,292 |
|
|
$ |
247,473 |
|
| Services |
|
|
16,964 |
|
|
|
16,639 |
|
| |
|
$ |
490,256 |
|
|
$ |
264,112 |
|
| |
|
|
|
|
|
|
|
|
| Interest Expenses |
|
|
|
|
|
|
|
|
| Marketplace platform |
|
$ |
458,934 |
|
|
$ |
3,291,031 |
|
| Services |
|
|
0 |
|
|
|
0 |
|
| |
|
$ |
458,934 |
|
|
$ |
3,291,031 |
|
| |
|
|
|
|
|
|
|
|
| Net income (loss) |
|
|
|
|
|
|
|
|
| Marketplace platform |
|
$ |
(5,822,732 |
) |
|
$ |
(6,156,289 |
) |
| Services |
|
|
1,161,351 |
|
|
|
409,275 |
|
| |
|
$ |
(4,661,381 |
) |
|
$ |
(5,747,014 |
) |
| |
|
As
of September 30, |
|
| |
|
2014 |
|
|
2013 |
|
| Total Assets |
|
|
|
|
|
|
|
|
| Marketplace platform |
|
$ |
18,118,425 |
|
|
$ |
3,670,208 |
|
| Services |
|
|
171,021 |
|
|
|
323,042 |
|
| |
|
$ |
18,289,446 |
|
|
$ |
3,993,250 |
|
| |
|
|
|
|
|
|
|
|
| Intangible assets |
|
|
|
|
|
|
|
|
| Marketplace platform |
|
$ |
4,234,692 |
|
|
$ |
2,839,557 |
|
| Services |
|
|
6,422 |
|
|
|
8,844 |
|
| |
|
$ |
4,241,114 |
|
|
$ |
2,848,401 |
|
|