| Segment Reporting |
The Company operates in three
segments which are characterized as: (1) legacy merchant’s services, (2) online marketplace platform and (3)
manufacturing. The legacy merchants’ services consists of directory services, the online marketplace platform consists of
livedeal.com and the fiscal 2014 acquisitions of consumer products entities and the manufacturing segment consists of the 2015
acquisition of Marquis Industries.
The following tables summarize
segment information for the three months ended December 31, 2015 and 2014:
| |
|
Three Months Ended
December 31, |
|
| |
|
2015 |
|
|
2014 |
|
| Revenues |
|
|
|
|
|
|
|
|
| Marketplace platform |
|
$ |
3,641,642 |
|
|
$ |
7,597,068 |
|
| Manufacturing |
|
|
16,190,030 |
|
|
|
– |
|
| Services |
|
|
272,762 |
|
|
|
409,984 |
|
| |
|
$ |
20,104,434 |
|
|
$ |
8,007,052 |
|
| |
|
|
|
|
|
|
|
|
| Gross profit |
|
|
|
|
|
|
|
|
| Marketplace platform |
|
$ |
1,595,255 |
|
|
$ |
2,879,923 |
|
| Manufacturing |
|
|
4,553,674 |
|
|
|
– |
|
| Services |
|
|
260,946 |
|
|
|
357,033 |
|
| |
|
$ |
6,409,875 |
|
|
$ |
3,236,956 |
|
| |
|
|
|
|
|
|
|
|
| Operating income
(loss) |
|
|
|
|
|
|
|
|
| Marketplace platform |
|
$ |
(903,745 |
) |
|
$ |
(1,158,430 |
) |
| Manufacturing |
|
|
1,691,630 |
|
|
|
– |
|
| Services |
|
|
259,367 |
|
|
|
290,541 |
|
| |
|
$ |
1,047,252 |
|
|
$ |
(867,889 |
) |
| |
|
|
|
|
|
|
|
|
| Depreciation and
amortization |
|
|
|
|
|
|
|
|
| Marketplace platform |
|
$ |
68,276 |
|
|
$ |
164,522 |
|
| Manufacturing |
|
|
477,556 |
|
|
|
– |
|
| Services |
|
|
– |
|
|
|
– |
|
| |
|
$ |
545,832 |
|
|
$ |
164,522 |
|
| |
|
|
|
|
|
|
|
|
| Interest Expenses
|
|
|
|
|
|
|
|
|
| Marketplace platform |
|
$ |
66,907 |
|
|
$ |
4,191,630 |
|
| Manufacturing |
|
|
278,576 |
|
|
|
– |
|
| Services |
|
|
– |
|
|
|
– |
|
| |
|
$ |
345,483 |
|
|
$ |
4,191,630 |
|
| |
|
|
|
|
|
|
|
|
| Provision for income
taxes |
|
|
|
|
|
|
|
|
| Marketplace platform |
|
$ |
– |
|
|
$ |
– |
|
| Manufacturing |
|
|
413,980 |
|
|
|
– |
|
| Services |
|
|
– |
|
|
|
– |
|
| |
|
$ |
413,980 |
|
|
$ |
– |
|
| |
|
|
|
|
|
|
|
|
| Net income (loss)
|
|
|
|
|
|
|
|
|
| Marketplace platform |
|
$ |
(809,468 |
) |
|
$ |
(5,237,975 |
) |
| Manufacturing |
|
|
860,783 |
|
|
|
– |
|
| Services |
|
|
249,027 |
|
|
|
290,541 |
|
| |
|
$ |
300,342 |
|
|
$ |
(4,947,434 |
) |
| |
|
|
As
of
December
31,
2015
|
|
|
|
As
of
September
30,
2015
|
|
| Total Assets |
|
|
|
|
|
|
|
|
| Marketplace platform |
|
$ |
5,631,579 |
|
|
$ |
6,811,977 |
|
| Manufacturing |
|
|
32,962,806 |
|
|
|
33,714,344 |
|
| Services |
|
|
313,045 |
|
|
|
138,035 |
|
| |
|
$ |
38,907,430 |
|
|
$ |
40,664,356 |
|
| |
|
|
|
|
|
|
|
|
| Intangible assets
|
|
|
|
|
|
|
|
|
| Marketplace platform |
|
$ |
1,458,999 |
|
|
$ |
1,516,930 |
|
| Manufacturing |
|
|
800,000 |
|
|
|
800,000 |
|
| Services |
|
|
– |
|
|
|
– |
|
| |
|
$ |
2,258,999 |
|
|
$ |
2,316,930 |
|
|