v3.5.0.2
Segment Information
 3 Months Ended
Mar. 31, 2016
Segment Reporting [Abstract]  
Segment Information

NOTE 14 SEGMENT INFORMATION

 

We determined our reporting units in accordance with ASC 280, “Segment Reporting” (“ASC 280”). We evaluate a reporting unit by first identifying its operating segments under ASC 280. We then evaluate each operating segment to determine if it includes one or more components that constitute a business. If there are components within an operating segment that meet the definition of a business, we evaluate those components to determine if they must be aggregated into one or more reporting units. If applicable, when determining if it is appropriate to aggregate different operating segments, we determine if the segments are economically similar and, if so, the operating segments are aggregated.

 

The Company’s operations during the three months ended March 31, 2016 and 2015 are classified into two reportable business segments: Lifestyle and Agriculture. Each of these segments is organized based upon the nature of products and services offered. Summarized financial information about each segment is provided below:

 

Three Months Ended March 31, 2016   Corporate     Lifestyle     Agriculture     Total  
                         
Total Assets   $ 713,111     $ 236,862     $ 5,317,726     $ 6,267,699  
                                 
Revenue   $ —     $ 55,563     $ 894,239     $ 949,802  
Costs of sales     —       34,684       71,701       106,385  
Depreciation/amortization expense     833       —       801       1,634  
Operating expenses - other     714,894       43,790       365,142       1,123,826  
                                 
Gain on extinguishment of debt     2,551,613       —       —       2,551,613  
Amortization of note discount     (646,827 )     —       —       (646,827 )
Interest expense     (260,127 )     —       —       (260,127 )
Change in fair value of derivatives     (1,829,976 )     —       —       (1,829,976 )
Foreign currency transaction loss     (7,806 )     —       —       (7,806 )
Equity loss from investee     —       —       (140,479 )     (140,479 )
Other expense     (75,000 )     —       —       (75,000 )
Income (loss) before taxes     (983,850 )     (22,911 )     316,116       (690,645 )
Taxes     (10 )     —       (2,510 )     (2,520 )
Net income (loss)   $ (983,860 )   $ (22,911 )   $ 313,606     $ (693,165 )
                                 
Three Months Ended March 31, 2015                                
                                 
Total Assets   $ 1,589,950     $ 545,478     $ 1,147,427     $ 3,282,855  
                                 
Revenue   $ —     $ 125,449     $ 912,804     $ 1,038,253  
Costs of sales     —       63,519       277,663       341,182  
Depreciation/amortization expense     2,725       —       801       3,526  
Operating expenses - other     638,898       110,387       1,180,073       1,929,358  
                                 
Change in fair value of derivatives     2,820,002       —       —       2,820,002  
Foreign currency transaction gain     19,992       —       —       19,992  
Interest expense     (618,530 )     —       (348,260 )     (966,790 )
Gain (loss) on extinguishment of debt     (931,434 )     —       —       (931,434 )
Income (loss) before taxes     648,407       (48,457 )     (893,993 )     (294,043 )
Taxes     —       —       —       —  
Net loss   $ 648,407     $ (48,457 )   $ (893,993 )   $ (294,043 )

 

During the three months ended March 31, 2016, for our agriculture segment, four customers each provided over 10% of our revenue and 48% of total revenue in the aggregate; during the three months ended March 31, 2015, four customers each provided over 10% of our revenue, including two customers that accounted for more than 50% of sales.