NOTE

17.

SEGMENT INFORMATION

Our 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 America 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, which includes our mobile payments operations, primarily located in Russia. PayOnline provides a secure online payment processing system to accept bank card payments for goods and services.

Segment Summary Information

Geographic Summary Information

	2019 Revenues		2019 Long-Lived Assets		2018 Revenues		2018 Long-Lived Assets
North America	$	61,778,002	$	13,325,444	$	59,138,552	$	13,672,169
Russia and CIS		3,221,609		1,048,801		6,648,265		2,406,732

The following tables present financial information of our reportable segments at and for the years ended

December 31, 2018

and

2017.

The “corporate and eliminations” column includes corporate expenses and intercompany eliminations for consolidated purposes.

Twelve months ended December 31, 2019	North American Transaction Solutions			International Transaction Solutions			Corp Exp & Eliminations			Total
Net revenues	$	61,778,002		$	3,221,609		$	-		$	64,999,611
Cost of revenues		52,395,752			2,325,958			-			54,721,710
Gross Margin		9,382,250			895,651			-			10,277,901
Gross margin %		15	%		28	%		-			16	%
Selling, general and administrative		2,587,411			1,077,294			5,677,079			9,341,784
Non-cash compensation		48,433			-			2,002,429			2,050,862
Provision for bad debt		1,369,015			(18,838	)		-			1,350,177
Depreciation and amortization		3,084,013			36,230			-			3,120,243
Interest expense (income), net		1,069,506			282			42,739			1,112,527
Impairment charge relating to goodwill		-			1,326,566			-			1,326,566
Other expense (income)		300,225			(1,482,196	)		(277,644	)		(1,459,615	)
Net (loss) income for segment	$	923,647		$	(43,687	)	$	(7,444,603	)	$	(6,564,643	)
Goodwill		6,671,750			1,009,436			-			7,681,186
Other segment assets		14,910,510			451,225			-			15,361,735
Total segment assets	$	21,582,260		$	1,460,661		$	-		$	23,042,921

Twelve months ended December 31, 2018	North American Transaction Solutions			International Transaction Solutions			Corp Exp & Eliminations			Total
Net revenues	$	59,138,552		$	6,648,265		$	-		$	65,786,817
Cost of revenues		50,545,759			5,071,412			-			55,617,171
Gross Margin		8,592,793			1,576,853			-			10,169,646
Gross margin %		15	%		24	%		-			15	%
Selling, general and administrative		2,490,811			1,970,757			5,297,120			9,758,688
Non-cash compensation		-			-			142,017			142,017
Provision for bad debt		2,121,131			24,294			-			2,145,425
Depreciation and amortization		1,898,784			555,853			-			2,454,637
Interest expense (income), net		833,494			(33,944	)		47,629			847,179
Impairment charge relating to goodwill		-			636,000			-			636,000
Other (income) expense		(647,040	)		(8,248,059	)		8,103,532			(791,567	)
Net (loss) income for segment	$	1,895,613		$	6,671,952		$	(13,590,298	)	$	(5,022,733	)
Goodwill		6,671,750			2,336,002			-			9,007,752
Other segment assets		16,431,351			324,911			-			16,756,262
Total segment assets	$	23,103,101		$	2,660,913		$	-		$	25,764,014