Quarterly report pursuant to Section 13 or 15(d)

Business Segment Results

v2.4.0.6
Business Segment Results
9 Months Ended
Sep. 30, 2012
Business Segment Results [Text Block]

Note 9. Business Segment Results

We have two principal business segments, which are (1) our technology business and (2) our consulting services business. These business segments were determined based on the nature of the operations and the services offered. Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief decision-makers, in deciding how to allocate resources and in assessing performance. Our Chief Executive Officer and Chief Operating Officer/Chief Financial Officer have been identified as the chief operating decision makers. Our chief operating decision makers direct the allocation of resources to operating segments based on the profitability, the cash flows, and the business plans of each respective segment.

The Company evaluates performance based on several factors, of which achievement of strategic goals toward future profitability and business segment income before taxes are the primary measures. The following tables show the operations of the Company’s reportable business segments for the three and nine months ended September 30, 2012 and 2011.

BUSINESS SEGMENT RESULTS – THREE MONTHS ENDED SEPTEMBER 30, 2012 AND 2011
                            Corporate and              
    Consulting     Technology     Eliminations     Total  
    2012     2011     2012     2011     2012     2011     2012     2011  

Revenue

  591,355     1,652,538     0     0     0     0     591,355     1,652,538  

Segment Profit – Pre Tax

  5,532     530,949     (542,664 )   (591,089 )   (710,516 )   (1,108,645 )   (1,247,648 )   (1,168,785 )

Total Assets

  420,540     837,496     580,577     482,936     6,405,271     10,406,994     7,406,388     11,727,426  

Property Additions

  0     0     0     0     0     1,228     0     1,228  

Interest Expense

  0     0     0     0     0     112     0     112  

Depreciation

  0     0     0     0     7,068     5,601     7,068     5,601  

BUSINESS SEGMENT RESULTS – NINE MONTHS ENDED SEPTEMBER 30, 2012 AND 2011

                            Corporate and              

 

  Consulting     Technology     Eliminations     Total  

 

  2012     2011     2012     2011     2012     2011     2012     2011  

Revenue

  2,829,893     5,523,181     0     0     0     0     2,829,893     5,523,181  

Segment Profit – Pre Tax

  387,192     1,414,515     (1,557,732 )   (1,716,884 )   (2,188,581 )   (3,667,087 )   (3,359,117 )   (3,969,456 )

Total Assets

  420,540     837,496     580,577     482,936     6,405,271     10,406,994     7,406,388     11,727,426  

Property Additions

  0     0     0     0     18,100     1,228     18,100     1,228  

Interest Expense

  0     0     0     0     0     1,350     0     1,350  

Depreciation

  0     0     0     0     21,584     19,515     21,584     19,515