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SEGMENT INFORMATION | 3 Months Ended
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Mar. 31, 2018
Segment Reporting [Abstract] |
SEGMENT INFORMATION | NOTE 16. SEGMENT INFORMATION Prior to the fourth quarter of 2017, we had three reportable business segments: (i) North American Transaction Solutions, (ii) Mobile Solutions and (iii) Online Solutions. Management determines the reportable segments based on the internal reporting used by our Chief Operating Decision Maker, who is our Chief Executive Officer, to evaluate performance and to assess where to allocate resources. Factors management used to identify the entity’s reportable segments. The increase growth in our North American Transactions Solutions segment and the consolidation of our mobile solutions business with our online solutions business has changed how management evaluates performance and allocates resources. We now have two reportable business segments (i) North American Transaction Solutions and (ii) International Transaction Solutions. The Company’s reportable segments are business units that offer different products and services in different geographies. The reportable segments are each managed separately because they offer distinct products, in distinct geographic locations, with different delivery and service processes. North American Transaction Solutions Our North American Transaction Solutions business segment consists of the former Unified Payments business and Aptito. This segment operates primarily in North America. In March 2013, we acquired all of the business assets of Unified Payments, a provider of comprehensive turnkey, payment processing solutions to small and medium size business owners (merchants) and independent sales organizations across the United States. In April 2013, we purchased 80% of Aptito, a cloud-based Software-as-a-Service (“SaaS”) restaurant management solution, which provides integrated POS, mPOS, Kiosk, Digital Menus functionality to drive consumer engagement via Apple® iPad®-based POS, kiosk and all other cloud-connected devices. International Transaction Solutions Our International Transaction Solutions segment consists of PayOnline and our mobile payments business provided by PayOnline, which operate primarily in Russia. PayOnline provides a protected payment processing system to accept bank card payments for goods and services. In June 2012, we formed our subsidiary, OOO TOT Money to develop a business in mobile commerce payment processing. TOT Money launched its initial operations in Russia as a payment facilitator using SMS (short message services, which is a text messaging service) and MMS (multimedia message services) for mobile phone subscribers in Russia. During 2015, we changed or business model, rebranded our name to Digital Provider, and began to offer branded content to subscribers. During 2017, the Digital Provider operations were consolidated into PayOnline and we continue to seek monetization of our mobile operator contracts through a joint venture or other arrangement. Segment Summary Information The following tables present financial information of the Company’s reportable segments at and for the three months ended March 31, 2018 and 2017. The “corporate and eliminations” column includes all corporate expenses and intercompany eliminations for consolidated purposes.
Three months Ended March 31, 2018 |  | North American Transaction Solutions |  |  | I nternational Transaction Solutions |  |  | Corp Exp & Elims |  |  | Total |
Net revenues |  | $ | 13,966,617 |  |  | $ | 2,015,777 |  |  | $ | — |  |  | $ | 15,982,394 |
Cost of revenues |  |  | 12,064,072 |  |  |  | 1,554,262 |  |  |  | — |  |  |  | 13,618,334 |
Gross Margin |  |  | 1,902,545 |  |  |  | 461,515 |  |  |  | — |  |  |  | 2,364,060 |
Gross margin % |  |  | 14 | % |  |  | 23 | % |  |  | — |  |  |  | 15 | %
General, administrative, and asset disposal |  |  | 689,151 |  |  |  | 581,050 |  |  |  | 1,176,279 |  |  |  | 2,446,480 |
Non-cash compensation |  |  | — |  |  |  | — |  |  |  | 82,011 |  |  |  | 82,011 |
Provision (recovery) for bad debt |  |  | 121,274 |  |  |  | — |  |  |  | — |  |  |  | 121,274 |
Depreciation and amortization |  |  | 447,086 |  |  |  | 256,452 |  |  |  | — |  |  |  | 703,538 |
Interest expense (income), net |  |  | 243,238 |  |  |  | (7,692 | ) |  |  | 7,692 |  |  |  | 243,238 |
Other expenses (income) |  |  | — |  |  |  | 54,147 |  |  |  | 296,666 |  |  |  | 350,813 |
Net (loss) income for segment |  |  | 401,796 |  |  |  | (422,442 | ) |  |  | (1,562,648 | ) |  |  | (1,583,294 | )
Segment assets |  |  | 25,436,796 |  |  |  | 3,777,484 |  |  |  | 48,718 |  |  |  | 29,262,998 |
Three Months Ended March 31, 2017 |  | North American Transaction Solutions |  |  | International Transaction Solutions |  |  | Corp Exp & Elims |  |  | Total |
Net revenues |  | $ | 10,964,919 |  |  | $ | 2,597,022 |  |  | $ | — |  |  | $ | 13,561,941 |
Cost of revenues |  |  | 9,461,450 |  |  |  | 1,998,542 |  |  |  | — |  |  |  | 11,459,992 |
Gross Margin |  |  | 1,503,469 |  |  |  | 598,480 |  |  |  | — |  |  |  | 2,101,949 |
Gross margin % |  |  | 14 | % |  |  | 23 | % |  |  | — |  |  |  | 15 | %
General, administrative, and asset disposal |  |  | 751,235 |  |  |  | 827,750 |  |  |  | 1,252,176 |  |  |  | 2,831,161 |
Non-cash compensation |  |  | — |  |  |  | — |  |  |  | 596,404 |  |  |  | 596,404 |
Provision for bad debt |  |  | 276,324 |  |  |  | 2,234 |  |  |  | 1,200 |  |  |  | 279,758 |
Depreciation and amortization |  |  | 358,756 |  |  |  | 298,607 |  |  |  | — |  |  |  | 657,363 |
Interest expense (income), net |  |  | 175,180 |  |  |  | (7,783 | ) |  |  | 102,291 |  |  |  | 269,688 |
Other expenses (income) |  |  | — |  |  |  | 5,774 |  |  |  | — |  |  |  | 5,774 |
Net (loss) income for segment |  | $ | (58,026 | ) |  | $ | (528,102 | ) |  | $ | (1,952,071 | ) |  |  | (2,538,199 | )
Segment assets |  |  | 14,170,749 |  |  |  | 8,603,008 |  |  |  | 211,015 |  |  |  | 22,984,772 |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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