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14. SEGMENT INFORMATION

9 Months Ended

Jun. 30, 2018

Segment Information

SEGMENT INFORMATION

The Company operates through its four subsidiaries in three business segments: the professional products, the licensing, and the entertainment divisions. The professional products division is designed to be an innovative and cutting-edge producer and marketer of quality hair care and other beauty products. The licensing division is designed to establish brands via licensing of select products / categories and encompasses our two subsidiaries with a focus on health and wellness products and men’s lifestyle products. The entertainment division’s focus is to become a producer and marketer of multiple entertainment distribution platforms. The corporate parent also will generate revenue from time to time, through advisory consulting agreements. This revenue is similar to the entertainment divisions’ revenue process and we have allocated revenue from corporate to the entertainment division for segment presentation.

The professional products division operated for the full year in fiscal 2017 and 2016. The licensing and entertainment divisions were both acquired in January 2017.

The performance of the business is evaluated at the segment level. Cash, debt and financing matters are managed centrally. These segments operate as one from an accounting and overall executive management perspective, though each segment has senior management in place; however they are differentiated from a marketing and customer presentation perspective, though cross-selling opportunities exist and continue to be pursued.

Condensed summary segment information follows for the three and nine months ended June 30, 2018 and 2017.

Three months ended June 30, 2018:


		Professional Product Division				Licensing Division				Entertainment Division				Total
Net Sales		$	27,205			$	1,629,835			$	191,390			$	1,848,430
Net Sales related party		$	-			$	-			$	1,350,000			$	1,350,000
Total Net Sales		$	27,205			$	1,629,835			$	1,541,390			$	3,198,430
Income (loss) from Operations before Overhead		$	(123,394	)		$	1,001,079			$	346,540			$	1,224,225
Allocated Corporate Overhead (a)			5,605				335,795				317,572				658,972
Net Income (Loss)		$	(128,999	)		$	665,284			$	28,968			$	565,253

Three months ended June 30, 2017:

		Professional Product Division				Licensing Division				Entertainment Division				Total
Net Sales		$	291,342			$	470,667			$	511,000			$	1,273,009
Net Sales related party		$	-			$	400,000			$	114,000			$	514,000
Total Net Sales		$	291,342			$	870,667			$	625,000			$	1,787,009
Income (loss) from Operations before Overhead		$	(399,304	)		$	41,573			$	248,497			$	(109,234	)
Allocated Corporate Overhead (a)			6,507				15,233				10,935				32,675
Net Income (Loss)		$	(405,811	)		$	26,340			$	237,562			$	(141,909	)

Nine months ended June 30, 2018:

		Professional Product Division				Licensing Division				Entertainment Division				Total
Net Sales		$	85,945			$	4,248,711			$	1,082,439			$	5,417,095
Net Sales related party		$	-			$	200,000			$	1,350,000			$	1,550,000
Total Net Sales		$	85,945			$	4,448,711			$	2,432,439			$	6,967,095
Income (loss) from Operations before Overhead		$	(751,293	)		$	2,866,972			$	380,143			$	2,495,822
Allocated Corporate Overhead (a)			19,151				991,277				542,004				1,552,432
Net Income (Loss)		$	(770,444	)		$	1,875,695			$	(161,861	)		$	943,390

Assets		$	3,669,414			$	7,737,134			$	5,063,736			$	16,470,284
Nine months ended June 30, 2017:
		Professional Product Division				Licensing Division				Entertainment Division				Total
Net Sales		$	865,890			$	1,135,667			$	611,280			$	2,612,837
Net Sales related party		$	-			$	600,000			$	182,550			$	782,550
Total Net Sales		$	865,890			$	1,735,667			$	793,830			$	3,395,387
Income (loss) from Operations before Overhead		$	(1,272,383	)		$	754,962			$	181,153			$	(336,268	)
Allocated Corporate Overhead (a)			201,807				404,520				185,013				791,340
Net Income (Loss)		$	(1,474,190	)		$	350,442			$	(3,860	)		$	1,127,608	)

Assets		$	1,974,553			$	1,995,279			$	1,138,129			$	5,107,961

(a)	The Company began allocating corporate overhead to the business segments in April 2017. We have allocated overhead on a proforma basis for the three and nine months ended June 30, 2018 and 2017 above for comparison purposes.