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SEGMENT DATA
 9 Months Ended
Sep. 30, 2023
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 Entertainment, each of which has specific personnel responsible for that business and reports to the CODM. Corporate expenses capture the Company’s corporate administrative activities, is 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 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 Entertainment 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 September 30, 2023, and September 30, 2022:

 

   2023   2022   2023   2022 
   For the three months ended
September 30,		   For the nine months ended
September 30,		 
   2023   2022   2023   2022 
Net Revenues:                    
Video Solutions  $1,797,348   $2,092,927   $5,596,300   $6,152,733 
Revenue Cycle Management   1,636,543    2,015,112    5,142,904    6,039,807 
Entertainment   2,903,808    4,376,114    11,575,315    15,937,852 
Total Net Revenues  $6,337,699   $8,484,153   $22,314,519   $28,130,392 
                     
Gross Profit:                    
Video Solutions  $426,795   $515,615   $1,740,397   $1,543,057 
Revenue Cycle Management   625,114    866,277    2,203,220    2,520,709 
Entertainment   174,240    (786,392)   1,564,361    190,432 
Total Gross Profit  $1,226,149   $595,500   $5,507,978   $4,254,198 
                     
Operating Income (loss):                    
Video Solutions  $(1,311,143)  $(1,481,048)  $(4,639,316)  $(4,327,049)
Revenue Cycle Management   

43,202

    117,844    

299,010

    236,628 
Entertainment   (1,256,681)   (2,149,412)   (2,818,617)   (5,915,953)
Corporate   (2,623,421)   (3,054,407)   (9,102,631)   (10,025,236)
Total Operating Income (Loss)  $

(5,148,043

)  $(6,567,023)  $(16,261,554)  $(20,031,610)
                     
Depreciation and Amortization:                    
Video Solutions  $219,955   $

213,446

   $629,677   $584,266 
Revenue Cycle Management   26,328    

102,211

    69,066    102,575 
Entertainment   319,302    

320,004

    957,884    959,366 
Total Depreciation and Amortization  $565,585   $635,661   $1,656,627   $1,646,207 

 

   September 30,
2023		   December 31,
2022		 
Assets (net of eliminations):          
Video Solutions  $28,387,191   $28,509,706 
Revenue Cycle Management   2,286,733    2,201,570 
Entertainment   7,106,806    11,190,491 
Corporate   13,575,344    14,766,295 
Total Identifiable Assets  $51,356,074   $56,668,062 

 

The segments recorded noncash items effecting 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 $4,466,748 and a reserve for the entertainment segment of $104,222.

 

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.