v3.5.0.2
Segment Information
 6 Months Ended
Jun. 30, 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 and six months ended June 30, 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 June 30, 2016   Corporate     Lifestyle     Agriculture     Total  
                         
Total Assets   $ 821,489       205,295       4,971,283       5,998,067  
                                 
Revenue   $ —       47,277       1,493,003       1,540,280  
Costs of sales     —       49,031       448,662       497,693  
Depreciation/amortization expense     95,346       2,501       801       98,648  
Operating expenses - other     493,530       45,784       308,513       847,827  
                                 
Gain on extinguishment of debt     487,906       —       67,774       555,680  
Amortization of note discount     (839,188 )     —       —       (839,188 )
Interest expense     (226,350 )     (9,170 )     —       (235,520 )
Change in fair value of derivatives     3,819,840       —       —       3,819,840  
Equity loss from investee     —       —       (140,032 )     (140,032 )
Foreign currency transaction gain     5,263       —       —       5,263  
Income (loss) before taxes     2,658,595       (59,209 )     662,769       3,262,155  
Taxes     —       —       —       —  
Net income (loss)   $ 2,568,595       (59,209 )     662,769       3,262,155  

 

Three Months Ended June 30, 2015                        
                         
Total Assets   $ 818,452       171,916       1,397,915       2,388,283  
                                 
Revenue   $ —       96,010       1,149,559       1,245,569  
Costs of sales     —       76,009       439,064       515,073  
Depreciation/amortization expense     —       —       801       801  
Operating expenses - other     1,403,284       83,719       887,872       2,374,875  
Research and development     —       —       (51,783 )     (51,783 )
                                 
Change in fair value of derivatives     (36,500 )     —       —       (36,500 )
Equity loss from investee     —       —       (161,471 )     (161,471 )
Foreign currency transaction loss     (6,071 )     —       —       (6,071 )
Interest expense     (569,720 )     —       (232,855 )     (802,575 )
Other expense     (560,000 )     —       —       (560,000 )
Gain (loss) on extinguishment of debt     (31,194 )     —       6,350       (24,844 )
Income (loss) before taxes     (2,606,769 )     (63,718 )     (514,371 )     (3,184,858 )
Taxes     —       —       —       —  
Net loss   $ (2,606,769 )     (63,718 )     (514,371 )     (3,184,858 )

 

Six Months Ended June 30, 2016   Corporate     Lifestyle     Agriculture     Total  
                         
Total Assets   $ 821,489     $ 205,295       4,971,283       5,998,067  
                                 
Revenue   $ —     $ 104,160       2, 385,922       2,490,082  
Costs of sales     —       83,715       520,363       604,078  
Depreciation/amortization expense     190,691       2,501       1,602       194,794  
Operating expenses - other     1,090,879       110,925       675,336       1,877,140  
                                 
Gain on extinguishment of debt     3,039,519       —       67,774       3,107,293  
Amortization of note discount     (1,485,742 )     —       —       (1,485,742 )
Interest expense     (486,750 )     (9,170 )     —       (495,920 )
Change in fair value of derivatives     1,989,864       —       —       1,989,864  
Foreign currency transaction loss     (2,543 )     —       —       (2,543 )
Equity loss from investee     —       —       (280,511 )     (280,511 )
Other expense     (75,000 )     —       —       (75,000 )
Income (loss) before taxes     1,697,777       (102,151 )     975,885       2,571,511  
Taxes     (10 )     —       (2,510 )     (2,520 )
Net income (loss)   $ 1,697,767     $ (102,151 )     973,375       2,568,991  

 

Six Months Ended June 30, 2015                        
                         
Total Assets   $ 818,452       171,916       1,397,915       2,388,283  
                                 
Revenue   $ —       221,459       2,062,363       2,283,822  
Costs of sales     —       139,528       716,727       856,255  
Depreciation/amortization expense     —       —       1,602       1,602  
Operating expenses - other     2,044,105       194,107       1,748,156       3,986,368  
Research and development     —       —       268,807       268,807  
                                 
Change in fair value of derivatives     2,783,501       —       —       2,783,501  
Foreign currency transaction gain     13,921       —       —       13,921  
Equity loss from investee     —       —       (161,471 )     (161,471 )
Interest expense     (1,188,250 )     —       (581,115 )     (1,769,365 )
Other expense     (560,000 )     —       —       (560,000 )
Gain (loss) on extinguishment of debt     (962,628 )     —       6,350       (956,278 )
Income (loss) before taxes     (1,957,561 )     (112,176 )     (1,409,165 )     (3,478,902 )
Taxes     —       —       —       —  
Net loss   $ (1,957,561 )     (112,176 )     (1,409,165 )     (3,478,902 )

 

During the six months ended June 30, 2016, four customers from the agriculture segment each provided over 10% of our revenue and 70% of total revenue in the aggregate for that segment; during the six months ended June 30, 2015, four customers from the agriculture segment each provided over 10% of that segment’s revenue, including two customers that accounted for more than 50% of segment sales.