| 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 months ended December 31, 2014 and 2013:
| |
|
Three
Months Ended
December 31, |
|
| |
|
2014 |
|
|
2013 |
|
| Net revenues |
|
|
|
|
|
|
|
|
| Marketplace platform |
|
$ |
7,597,068 |
|
|
$ |
1,392 |
|
| Services |
|
|
409,984 |
|
|
|
592,066 |
|
| |
|
$ |
8,007,052 |
|
|
$ |
593,458 |
|
| |
|
|
|
|
|
|
|
|
| Gross profit |
|
|
|
|
|
|
|
|
| Marketplace platform |
|
$ |
2,879,923 |
|
|
$ |
(191 |
) |
| Services |
|
|
357,033 |
|
|
|
472,320 |
|
| |
|
$ |
3,236,956 |
|
|
$ |
472,129 |
|
| |
|
|
|
|
|
|
|
|
| Operating income (loss) |
|
|
|
|
|
|
|
|
| Marketplace platform |
|
$ |
(1,158,430 |
) |
|
$ |
(667,488 |
) |
| Services |
|
|
290,541 |
|
|
|
241,846 |
|
| |
|
$ |
(867,889 |
) |
|
$ |
(425,642 |
) |
| |
|
|
|
|
|
|
|
|
| Depreciation and amortization |
|
|
|
|
|
|
|
|
| Marketplace platform |
|
$ |
164,522 |
|
|
$ |
104,710 |
|
| Services |
|
|
– |
|
|
|
– |
|
| |
|
$ |
164,522 |
|
|
$ |
104,710 |
|
| |
|
|
|
|
|
|
|
|
| Interest Expenses |
|
|
|
|
|
|
|
|
| Marketplace platform |
|
$ |
4,191,630 |
|
|
$ |
– |
|
| Services |
|
|
– |
|
|
|
516 |
|
| |
|
$ |
4,191,630 |
|
|
$ |
516 |
|
| |
|
|
|
|
|
|
|
|
| Net income (loss) |
|
|
|
|
|
|
|
|
| Marketplace platform |
|
$ |
(5,237,975 |
) |
|
$ |
(646,152 |
) |
| Services |
|
|
290,541 |
|
|
|
237,994 |
|
| |
|
$ |
(4,947,434 |
) |
|
$ |
(408,158 |
) |
| |
|
As of |
|
|
As of |
|
| |
|
December 31, |
|
|
September 30, |
|
| |
|
2014 |
|
|
2014 |
|
| Total Assets |
|
|
|
|
|
|
|
|
| Marketplace platform |
|
$ |
17,677,558 |
|
|
$ |
18,118,425 |
|
| Services |
|
|
202,630 |
|
|
|
171,021 |
|
| |
|
$ |
17,880,188 |
|
|
$ |
18,289,446 |
|
| |
|
|
|
|
|
|
|
|
| Intangible assets |
|
|
|
|
|
|
|
|
| Marketplace platform |
|
$ |
5,607,012 |
|
|
$ |
4,234,692 |
|
| Services |
|
|
5,816 |
|
|
|
6,422 |
|
| |
|
$ |
5,612,828 |
|
|
$ |
4,241,114 |
|
|