Note 14. SEGMENT REPORTING

ASC 280, “Segment Reporting”, establishes standards for reporting information about operating segments on a basis consistent with the Company’s internal organizational structure as well as information about geographical areas, business segments and major customers in financial statements for detailing the Company’s business segments.

The Company’s chief operating decision maker is the Chief Executive Officer, who reviews the financial information of the separate operating segments when making decisions about allocating resources and assessing the performance of the group. The Company has determined that it has six operating segments: (1) shipping agency and shipping management services; (2) shipping and chartering services; (3) inland transportation management services; (4) freight logistics services; (5) container trucking services; (6) bulk cargo container services. However, due to the downturn in the shipping industry, the Company has decided to suspend to its shipping agency and shipping management services and shipping and chartering services.

As stated in Note 1, ACH Center’s operating revenue was less than 1% of the Company’s consolidated revenue and the results of operations for ACH Center was not reported as discontinued operations and was included in the container trucking services segment and freight logistics services segment below. For the three and nine months ended March 31, 2018, revenue from ACH Center for container trucking services amounted to $nil and $42,968 respectively, representing 0% and 6% of the segment’s revenue. For the three and nine months ended March 31, 2018, gross profit from ACH Center for container trucking services amounted to $nil and $4,297 respectively, representing 0% and 2% of the segment’ gross profit. For the three and nine months ended March 31, 2018, revenue from ACH Center for freight logistics services amounted to $nil and $46,937 respectively, representing 0% and 1% of the segment’s revenue. For the three and nine months ended March 31, 2017, gross profit from ACH Center for freight logistics services amounted to $nil and $13,989 respectively, representing 0% and 2% of the segment’ gross profit.

The following tables present summary information by segment for the three and nine months ended March 31, 2018 and 2017, respectively:

	For the three months ended March 31, 2018
	Inland Transportation Management Services		Freight Logistics Services		Container Trucking Services		Bulk Cargo Container Services		Total
Revenues
- Related party	$	501,000	$	-	$	-	$	-	$	501,000
- Third parties	$	934,872	$	3,577,293	$	187,005	$	-	$	4,699,170
Total revenues	$	1,435,872	$	3,577,293	$	187,005	$	-	$	5,200,170
Cost of revenues	$	91,276	$	3,195,492	$	118,667	$	-	$	3,405,435
Gross profit	$	1,344,596	$	381,801	$	68,338	$	-	$	1,794,735
Depreciation and amortization	$	26,268	$	475	$	4,917	$	-	$	31,660
Total capital expenditures	$	-	$	-	$	10,929	$	-	$	10,929

	For the three months ended March 31, 2017
	Inland Transportation Management Services		Freights Logistic Services		Container Trucking Services		Bulk Cargo Container Services		Total
Revenues
- Related party	$	762,777	$	-	$	-	$	-	$	762,777
- Third parties	$	771,063	$	827,908	$	385,863	$	-	$	1,984,834
Total revenues	$	1,533,840	$	827,908	$	385,863	$	-	$	2,747,611
Cost of revenues	$	79,983	$	699,578	$	352,652	$	-	$	1,132,213
Gross profit	$	1,453,857	$	128,330	$	33,211	$	-	$	1,615,398
Depreciation and amortization	$	5,655	$	5,370	$	-	$	-	$	11,025
Total capital expenditures	$	55,474	$	-	$	-	$	-	$	55,474

Prior to second quarter of fiscal 2018, bulk cargo container services were included in our freight logistics services segment and were operated by our New York subsidiary. As the Company develops this business line and to enable our CODM to better assess the financial performance of the Company, we separated bulk cargo container services as a separate segment starting from last quarter. The Company reclassified $504,815 of revenue from freight logistics services to bulk cargo container services for the nine months ended March 31, 2018 for better comparison.

	For the nine months ended March 31, 2018
	Inland Transportation Management Services		Freight Logistics Services		Container Trucking Services		Bulk Cargo Container Services		Total
Revenues
- Related party	$	1,621,406	$	-	$	-	$	-	$	1,621,406
- Third parties	$	2,626,773	$	10,177,505	$	736,751	$	638,227	$	14,179,256
Total revenues	$	4,248,179	$	10,177,505	$	736,751	$	638,227	$	14,179,256
Cost of revenues	$	447,451	$	9,023,600	$	481,731	$	494,449	$	10,447,231
Gross profit	$	3,800,728	$	1,153,905	$	255,020	$	143,778	$	5,353,431
Depreciation and amortization	$	46,665	$	1,426	$	15,311	$	-	$	63,402
Total capital expenditures	$	-	$	326,508	$	53,409	$	-	$	379,917

	For the nine months ended March 31, 2017
	Inland Transportation Management Services		Freight Logistics Services		Container Trucking Services		Bulk Cargo Container Services		Total
Revenues
- Related party	$	2,229,180	$	-	$	-	$	-	$	2,229,180
- Third parties	$	2,241,998	$	1,803,641	$	545,742	$	-	$	4,591,381
Total revenues	$	4,471,178	$	1,803,641	$	545,742	$	-	$	6,820,561
Cost of revenues	$	271,784	$	1,068,951	$	448,613	$	-	$	1,789,348
Gross profit	$	4,199,394	$	734,690	$	97,129	$	-	$	5,031,213
Depreciation and amortization	$	20,322	$	16,110	$	-	$	-	$	36,432
Total capital expenditures	$	55,474	$	-	$	-	$	-	$	55,474

Total assets:	March 31,		June 30,
	2018		2017

Inland Transportation Management Services	$	21,460,889	$	15,552,593
Freight Logistic Services		162,504		1,704,946
Container Trucking Services		1,538,860		558,482
Bulk Cargo Container Services		515,845		-
Total Assets	$	23,678,098	$	17,816,021