XML 35 R24.htm IDEA: XBRL DOCUMENT v3.24.2.u1
SEGMENT DATA
 6 Months Ended
Jun. 30, 2024
Segment Reporting [Abstract]  
SEGMENT DATA

NOTE 18. 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 June 30, 2024, and June 30, 2023:

 

   2024   2023   2024   2023 
  

For the three months ended

June 30,

  

For the six months ended

June 30,

 
   2024   2023   2024   2023 
Net Revenues:                    
Video Solutions  $1,585,670   $1,899,590   $3,303,963   $3,798,953 
Revenue Cycle Management   1,564,354    1,724,772    2,998,952    3,506,361 
Entertainment   2,466,211    4,655,270    4,842,671    8,671,506 
Total Net Revenues  $5,616,235   $8,279,632   $11,145,586   $15,976,820 
                     
Gross Profit:                    
Video Solutions  $287,840   $779,408   $853,534   $1,313,601 
Revenue Cycle Management   601,406    802,174    1,065,137    1,578,107 
Entertainment   (646,854)   1,155,458    (154,841)   1,390,121 
Total Gross Profit  $242,392   $2,737,040   $1,763,830   $4,281,829 
                     
Operating Income (loss):                    
Video Solutions  $(1,400,039)  $(1,364,987)  $(2,533,242)  $(3,328,173)
Revenue Cycle Management   150,323    152,044    126,352    255,809 
Entertainment   (1,828,513)   (328,929)   (2,470,732)   (1,561,936)
Corporate   (835,992)   (3,398,832)   (2,675,571)   (6,479,211)
Total Operating Income (Loss)  $(3,914,221)  $(4,940,704)  $(7,553,193)  $(11,113,511)
                     
Depreciation and Amortization:                    
Video Solutions  $178,555   $203,987   $387,724   $402,109 
Revenue Cycle Management   26,715    25,887    53,429    51,394 
Entertainment   317,180    318,058    637,847    637,539 
Total Depreciation and Amortization  $522,450   $547,932   $1,079,000   $1,091,042 

 

  

June 30,

2024

  

December 31,

2023

 
Assets (net of eliminations):          
Video Solutions  $22,998,670   $26,396,559 
Revenue Cycle Management   1,904,280    2,260,376 
Entertainment   6,315,677    6,324,211 
Corporate   12,108,588    12,047,663 
Total Identifiable Assets  $43,327,215   $47,028,809 

 

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 $4,008,278 and a reserve for the entertainment segment of $126,723 as of June 30, 2024.

 

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.