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Segment Information and Geographic Areas
 12 Months Ended
Jun. 30, 2019
Segment Reporting [Abstract]  
Segment Information and Geographic Areas

NOTE 21 – SEGMENT INFORMATION AND GEOGRAPHIC AREAS

 

The Company has identified three segments for its products and services; North America, Europe and Asia-Pacific. Our reportable segments are business units located in different global regions. Each business unit provides similar products and services; license fees for leasing and asset-based software, related maintenance fees, and implementation and IT consulting services. Separate management of each segment is required because each business unit is subject to different operational issues and strategies due to their particular regional location. The Company accounts for intra-company sales and expenses as if the sales or expenses were to third parties and eliminates them in the consolidation.

 

The following table presents a summary of identifiable assets as of June 30, 2019 and 2018:

 

   2019   2018 
Identifiable assets:          
Corporate headquarters  $2,947,727   $2,839,049 
North America   5,730,928    5,764,042 
Europe   8,399,033    7,242,080 
Asia - Pacific   70,419,331    83,929,110 
Consolidated  $87,497,019   $99,774,281 

 

The following table presents a summary of investment under equity method as of June 30, 2019 and 2018:

 

   2019   2018 
Investment in associates under equity method:          
Corporate headquarters  $686,504   $918,628 
Asia - Pacific   1,967,265    2,298,534 
Consolidated  $2,653,769   $3,217,162 

 

The following table presents a summary of operating information for the years ended June 30:

 

   2019   2018 
Revenues from unaffiliated customers:          
North America  $3,947,407   $4,036,626 
Europe   8,084,761    6,767,845 
Asia - Pacific   54,019,594    43,788,074 
    66,051,762    54,592,545 
Revenue from affiliated customers          
Europe   1,063,404    2,111,315 
Asia - Pacific   704,017    4,226,398 
    1,767,421    6,337,713 
Consolidated  $67,819,183   $60,930,258 
           
Intercompany revenue          
Europe  $574,517   $545,330 
Asia - Pacific   7,511,236    2,729,173 
Eliminated  $8,085,753   $3,274,503 
           
Net income (loss) after taxes and before non-controlling interest:          
Corporate headquarters  $(2,296,409)  $(1,899,110)
North America   (756,510)   (237,708)
Europe   1,473,274    1,059,823 
Asia - Pacific   13,597,185    8,226,973 
Consolidated  $12,017,540   $7,149,978 
           
Depreciation and amortization:          
North America  $26,275   $43,049 
Europe   329,671    249,256 
Asia - Pacific   4,067,711    5,281,169 
Consolidated  $4,423,657   $5,573,474 
           
Interest expense:          
Corporate headquarters  $14,074   $10,402 
North America   -    113 
Europe   6,876    15,628 
Asia - Pacific   290,848    396,184 
Consolidated  $311,798   $422,327 
           
Income tax expense:          
Corporate headquarters  $1,837   $- 
Europe   320,263    (8,435)
Asia - Pacific   735,684    881,462 
Consolidated  $1,057,784   $873,027 

 

The following table presents a summary of capital expenditures for the years ended June 30:

 

   2019   2018 
Capital expenditures:          
North America  $1,384   $5,184 
Europe   502,823    336,908 
Asia - Pacific   2,222,351    2,107,357 
Consolidated  $2,726,558   $2,449,449 

 

Geographic Information

 

Disclosed in the table below is geographic information for each country that comprised greater than five percent of total revenues for the years ended June 30, 2019 and 2018.

 

   2019   2018 
   Revenue   Long-lived Assets   Revenue   Long-lived Assets 
                 
China  $31,622,024   $58,058   $18,443,294   $256,156 
Thailand   3,304,119    771,992    7,049,581    241,284 
USA   2,911,195    5,385,230    2,932,884    5,642,245 
UK   9,852,180    4,549,676    12,972,855    4,444,416 
Pakistan & India   2,006,934    22,125,464    2,095,734    31,815,109 
Australia & New Zealand   5,684,487    14,783    3,553,136    24,175 
Mexico   1,036,213    -    1,236,454    - 
Indonesia   3,909,304    -    8,294,934    - 
South Africa   2,135,027    -    2,279,331    - 
Other Countries   5,357,700    -    2,072,055    - 
Total  $67,819,183   $32,905,203   $60,930,258   $42,423,385 

 

Disclosed in the table below is the reconciliation of revenue by each entity and country disclosed above for the years ended June 30, 2019 and 2018.

 

   Revenues 2019 
   Total   China   Thailand   USA   UK   Pakistan & India   Australia & New Zealand   Mexico   Indonesia   South Africa   Other Countries 
                                             
North America:  $3,947,408   $-   $-   $2,911,195   $-   $-   $-   $1,036,213   $-   $-   $- 
Europe:   9,148,164    -    -    -    9,148,164    -    -    -    -    -    - 
Asia-Pacific:   54,723,611    31,622,024    3,304,119    -    704,016    2,006,934    5,684,487    -    3,909,304    2,135,027    5,357,700 
                                                        
Total  $67,819,183   $31,622,024   $3,304,119   $2,911,195   $9,852,180   $2,006,934   $5,684,487   $1,036,213   $3,909,304   $2,135,027   $5,357,700 

 

   Revenues 2018 
   Total   China   Thailand   USA   UK   Pakistan & India   Australia & New Zealand   Mexico   Indonesia   South Africa   Other Countries 
                                             
North America:  $4,036,626   $-   $-   $2,800,172   $-   $-   $-   $1,236,454   $-   $-   $- 
Europe:   8,879,160    -    -    -    8,879,160    -    -    -    -    -    - 
Asia-Pacific:   48,014,472    18,443,294    7,049,581    132,712    4,093,695    2,095,734    3,553,136    -    8,294,934    2,279,331    2,072,055 
                                                        
Total  $60,930,258   $18,443,294   $7,049,581   $2,932,884   $12,972,855   $2,095,734   $3,553,136   $1,236,454   $8,294,934   $2,279,331   $2,072,055