| 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 |
|
|