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SEGMENT DATA
 6 Months Ended
Jun. 30, 2022
Segment Reporting [Abstract]  
SEGMENT DATA

NOTE 19. SEGMENT DATA

 

The accounting guidance on Segment Reporting establishes standards for reporting information regarding operating segments in annual financial statements and requires selected information of those segments to be presented in financial statements. Operating segments are identified as components of an enterprise for which separate discrete financial information is available for evaluation by the chief operating decision maker (the Company’s Chief Executive Officer or “CODM”) in making decisions on how to allocate resources and assess performance. The Company’s three operating segments are Video Solutions, Revenue Cycle Management, and Ticketing, each of which has specific personnel responsible for that business and reports to the CODM. Corporate expenses capture the Company’s corporate administrative activities, and are also to be reported in the segment information. The Company’s captive insurance subsidiary provides services to the Company’s other business segments and not to outside customers. Therefore, its operations are eliminated in consolidation and it is not considered a separate business segment for financial reporting purposes.

 

The Video Solutions Segment encompasses our law, commercial, and shield divisions. This segment includes both service and product revenues through our subscription models offering cloud and warranty solutions, and hardware sales for video and health safety solutions. The Revenue Cycle Management Segment provides working capital and back-office services to a variety of healthcare organizations throughout the country, as a monthly service fee. The Ticketing Segment acts as an intermediary between ticket buyers and sellers within our secondary ticketing platform, ticketsmarter.com, and we also acquire tickets from primary sellers to then sell through various platforms.

 

The Company’s corporate administration activities are reported in the corporate line item. These activities primarily include expense related to certain corporate officers and support staff, certain accounting staff, expense related to the Company’s Board of Directors, stock option expense for options granted to corporate administration employees, certain consulting expenses, investor relations activities, and a portion of the Company’s legal, auditing and professional fee expenses. Corporate identifiable assets primarily consist of cash, invested cash (if any), refundable income taxes (if any), and deferred income taxes.

 

 

Summarized financial information for the Company’s reportable business segments is provided for the indicated periods and as of June 30, 2022, and June 30, 2021:

 

            1       2  
   Three months ended June 30,    Six months ended June 30,
   2022   2021    2022   2021
Net Revenues:                                         
Video Solutions  $2,049,756   $2,493,671    $ 4,059,805     $ 5,029,501  
Revenue Cycle Management   2,120,738    —      4,024,695      

—

  
Ticketing   5,180,963    —      11,561,738      

—

  
Total Net Revenues  $9,351,457   $2,493,671    $ 19,646,238     $

5,029,501

  
                           
Gross Profit:                          
Video Solutions  $759,010   $1,260,800    $ 1,027,440     $

2,072,683

  
Revenue Cycle Management   957,263    —      1,654,432      

—

  
Ticketing   2,805    —      976,824      

—

  
Total Gross Profit  $1,719,078   $1,260,800    $ 3,658,696     $

2,072,683

  
                           
Operating Income (loss):                          
Video Solutions  $(1,130,749)  $(296,601)   $

(2,846,004

 )   $

(979,520

 )
Revenue Cycle Management   247,301   —     

118,783

      

—

  
Ticketing   (2,320,694)   —     

(3,766,541

 )    

—

  
Corporate   (3,457,110)   (2,320,283)    

(6,970,828

 )    

(4,503,058

 )
Total Operating Income (Loss)  $(6,661,252)  $(2,616,884)   $

(13,464,590

 )   $

(5,482,578

 )
                           
Depreciation and Amortization:                          
Video Solutions  $209,442   $87,830    $

385,516

     $

145,459

  
Revenue Cycle Management   

319,175

    —     

638,358

       —  
Ticketing   218    —      364       —  
Total Depreciation and Amortization  $

528,835

   $87,830    $

1,024,238

     $

145,459

  

 

  

June 30,

2022

  

December 31,

2021

 
Assets (net of eliminations):          
Video Solutions  $35,219,240   $25,983,348 
Revenue Cycle Management   1,678,775    934,095 
Ticketing   10,097,319    12,260,780 
Corporate   23,733,487    43,810,974 
Total Identifiable Assets  $70,728,821   $82,989,197 

 

The segments recorded noncash items affecting the gross profit and operating income (loss) through the established inventory reserves based on estimates of excess and/or obsolete current and non-current inventory. The Company recorded a reserve for excess and obsolete inventory in the video solutions segment of $3,272,831 and a reserve for the ticketing segment of $449,635.

 

The segment net revenues reported above represent sales to external customers. Segment gross profit represents net revenues less cost of revenues. Segment operating income, which is used in management’s evaluation of segment performance, represents net revenues, less cost of revenues, less all operating expenses. Identifiable assets are those assets used by each segment in its operations. Corporate assets primarily consist of cash, property, plant and equipment, accounts receivable, inventories, and other assets.