| 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 six months ended March 31, 2015 and 2014:
| |
|
Three Months Ended March 31, |
|
|
Six Months Ended March 31, |
|
| |
|
2015 |
|
|
2014 |
|
|
2015 |
|
|
2014 |
|
| Net revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Marketplace platform |
|
$ |
3,879,696 |
|
|
$ |
163,000 |
|
|
$ |
11,476,764 |
|
|
$ |
164,392 |
|
| Services |
|
|
384,283 |
|
|
|
515,033 |
|
|
|
794,267 |
|
|
|
1,107,099 |
|
| |
|
$ |
4,263,979 |
|
|
$ |
678,033 |
|
|
$ |
12,271,031 |
|
|
$ |
1,271,491 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Gross profit |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Marketplace platform |
|
$ |
1,579,215 |
|
|
$ |
11,590 |
|
|
$ |
4,459,138 |
|
|
$ |
11,399 |
|
| Services |
|
|
355,881 |
|
|
|
420,765 |
|
|
|
712,914 |
|
|
|
893,085 |
|
| |
|
$ |
1,935,096 |
|
|
$ |
432,355 |
|
|
$ |
5,172,052 |
|
|
$ |
904,484 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Operating income (loss) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Marketplace platform |
|
$ |
(1,381,317 |
) |
|
$ |
(1,210,514 |
) |
|
$ |
(2,539,747 |
) |
|
$ |
(1,878,002 |
) |
| Services |
|
|
291,977 |
|
|
|
239,558 |
|
|
|
582,518 |
|
|
|
481,404 |
|
| |
|
$ |
(1,089,340 |
) |
|
$ |
(970,956 |
) |
|
$ |
(1,957,229 |
) |
|
$ |
(1,396,598 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Depreciation and amortization |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Marketplace platform |
|
$ |
160,932 |
|
|
$ |
97,305 |
|
|
$ |
325,454 |
|
|
$ |
202,015 |
|
| Services |
|
|
6,693 |
|
|
|
9,222 |
|
|
|
6,693 |
|
|
|
9,222 |
|
| |
|
$ |
167,625 |
|
|
$ |
106,527 |
|
|
$ |
332,147 |
|
|
$ |
211,237 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Marketplace platform |
|
$ |
5,314 |
|
|
$ |
111,374 |
|
|
$ |
4,196,944 |
|
|
$ |
111,374 |
|
| Services |
|
|
– |
|
|
|
(516 |
) |
|
|
– |
|
|
|
– |
|
| |
|
$ |
5,314 |
|
|
$ |
110,858 |
|
|
$ |
4,196,944 |
|
|
$ |
111,374 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net income (loss) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Marketplace platform |
|
$ |
(1,387,197 |
) |
|
$ |
(1,221,695 |
) |
|
$ |
(6,625,172 |
) |
|
$ |
(1,867,847 |
) |
| Services |
|
|
291,977 |
|
|
|
245,834 |
|
|
|
582,518 |
|
|
|
483,828 |
|
| |
|
$ |
(1,095,220 |
) |
|
$ |
(975,861 |
) |
|
$ |
(6,042,654 |
) |
|
$ |
(1,384,019 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
As of |
|
|
As of |
|
| |
|
|
|
|
|
|
|
|
|
March 31, |
|
|
September 30, |
|
| |
|
|
|
|
|
|
|
|
|
2015 |
|
|
2014 |
|
| Total Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Marketplace platform |
|
|
|
|
|
|
|
|
|
$ |
16,789,865 |
|
|
$ |
18,118,425 |
|
| Services |
|
|
|
|
|
|
|
|
|
|
156,837 |
|
|
|
171,021 |
|
| |
|
|
|
|
|
|
|
|
|
$ |
16,946,702 |
|
|
$ |
18,289,446 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Intangible assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Marketplace platform |
|
|
|
|
|
|
|
|
|
$ |
5,473,527 |
|
|
$ |
4,234,692 |
|
| Services |
|
|
|
|
|
|
|
|
|
|
5,211 |
|
|
|
6,422 |
|
| |
|
|
|
|
|
|
|
|
|
$ |
5,478,738 |
|
|
$ |
4,241,114 |
|
|