| Segment Reporting |
The Company operates in three segments which
are characterized as: (1) Manufacturing, (2) Retail and Online, and (3) Services. The Manufacturing Segment consists of Marquis
Industries, the Retail and Online segment consists of Vintage Stock, ApplianceSmart, Modern Everyday and LiveDeal.com, and the
Services segment consists of the directory services business.
The following tables summarize segment information for the three
months ended December 31, 2017 and 2016:
| |
|
Three Months Ended December 31, |
|
| |
|
2017 |
|
|
2016 |
|
| |
|
(Unaudited) |
|
| Revenues |
|
|
|
|
|
|
|
|
| Retail and Online |
|
$ |
21,293,471 |
|
|
$ |
14,776,723 |
|
| Manufacturing |
|
|
18,878,535 |
|
|
|
17,187,534 |
|
| Services |
|
|
196,058 |
|
|
|
224,407 |
|
| |
|
$ |
40,368,064 |
|
|
$ |
32,188,664 |
|
| |
|
|
|
|
|
|
|
|
| Gross profit |
|
|
|
|
|
|
|
|
| Retail and Online |
|
$ |
11,455,802 |
|
|
$ |
8,067,608 |
|
| Manufacturing |
|
|
4,752,568 |
|
|
|
4,363,293 |
|
| Services |
|
|
187,520 |
|
|
|
214,331 |
|
| |
|
$ |
16,395,890 |
|
|
$ |
12,645,232 |
|
| |
|
|
|
|
|
|
|
|
| Operating income |
|
|
|
|
|
|
|
|
| Retail and Online |
|
$ |
2,231,476 |
|
|
$ |
1,743,967 |
|
| Manufacturing |
|
|
1,502,254 |
|
|
|
1,721,260 |
|
| Services |
|
|
187,058 |
|
|
|
213,841 |
|
| |
|
$ |
3,920,788 |
|
|
$ |
3,679,068 |
|
| |
|
|
|
|
|
|
|
|
| Depreciation and amortization |
|
|
|
|
|
|
|
|
| Retail and Online |
|
$ |
677,461 |
|
|
$ |
228,431 |
|
| Manufacturing |
|
|
718,444 |
|
|
|
706,616 |
|
| Services |
|
|
– |
|
|
|
– |
|
| |
|
$ |
1,395,905 |
|
|
$ |
935,047 |
|
| |
|
|
|
|
|
|
|
|
| Interest expense, net |
|
|
|
|
|
|
|
|
| Retail and Online |
|
$ |
2,022,407 |
|
|
$ |
1,079,306 |
|
| Manufacturing |
|
|
445,905 |
|
|
|
370,170 |
|
| Services |
|
|
– |
|
|
|
– |
|
| |
|
$ |
2,468,312 |
|
|
$ |
1,449,476 |
|
| |
|
|
|
|
|
|
|
|
| Net income before provision for income taxes |
|
|
|
|
|
|
|
|
| Retail and Online |
|
$ |
4,052,595 |
|
|
$ |
851,110 |
|
| Manufacturing |
|
|
1,063,393 |
|
|
|
1,206,531 |
|
| Services |
|
|
187,058 |
|
|
|
213,841 |
|
| |
|
$ |
5,303,046 |
|
|
$ |
2,271,482 |
|
| |
|
As of |
|
|
As of |
|
| |
|
December 31, |
|
|
September 30, |
|
| |
|
2017 |
|
|
2017 |
|
| Total assets |
|
|
|
|
|
|
|
|
| Retail and Online |
|
$ |
85,459,467 |
|
|
$ |
81,703,371 |
|
| Manufacturing |
|
|
46,611,136 |
|
|
|
46,783,429 |
|
| Services |
|
|
85,422 |
|
|
|
107,795 |
|
| |
|
$ |
132,156,025 |
|
|
$ |
128,594,595 |
|
| |
|
|
|
|
|
|
|
|
| Intangible assets and goodwill |
|
|
|
|
|
|
|
|
| Retail and Online |
|
$ |
40,574,539 |
|
|
$ |
40,778,865 |
|
| Manufacturing |
|
|
365,867 |
|
|
|
373,184 |
|
| Services |
|
|
– |
|
|
|
– |
|
| |
|
$ |
40,940,406 |
|
|
$ |
41,152,049 |
|
| |
|
|
|
|
|
|
|
|
| Cost of revenue |
|
|
|
|
|
|
|
|
| Retail and Online |
|
$ |
9,837,669 |
|
|
$ |
6,709,115 |
|
| Manufacturing |
|
|
14,125,967 |
|
|
|
12,824,241 |
|
| Services |
|
|
8,538 |
|
|
|
10,076 |
|
| |
|
$ |
23,972,174 |
|
|
$ |
19,543,432 |
|
| |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
| G&A |
|
|
|
|
|
|
|
|
| Retail and Online |
|
$ |
9,011,603 |
|
|
$ |
6,063,363 |
|
| Manufacturing |
|
|
1,387,066 |
|
|
|
994,821 |
|
| Services |
|
|
461 |
|
|
|
490 |
|
| |
|
$ |
10,399,130 |
|
|
$ |
7,058,674 |
|
| |
|
|
|
|
|
|
|
|
| Sales and marketing |
|
|
|
|
|
|
|
|
| Retail and Online |
|
$ |
212,723 |
|
|
$ |
260,278 |
|
| Manufacturing |
|
|
1,863,248 |
|
|
|
1,647,212 |
|
| Services |
|
|
1 |
|
|
|
– |
|
| |
|
$ |
2,075,972 |
|
|
$ |
1,907,490 |
|
| |
|
|
|
|
|
|
|
|
| Other income |
|
|
|
|
|
|
|
|
| Retail and Online |
|
$ |
3,843,526 |
|
|
$ |
186,449 |
|
| Manufacturing |
|
|
7,044 |
|
|
|
(144,559 |
) |
| Services |
|
|
– |
|
|
|
– |
|
| |
|
$ |
3,850,570 |
|
|
$ |
41,890 |
|
|