Annual report pursuant to Section 13 and 15(d)

Note 21 - Business and Geographic Segment Information

v3.5.0.2
Note 21 - Business and Geographic Segment Information
12 Months Ended
Dec. 31, 2015
Segment Reporting [Abstract]  
Segment Reporting Disclosure [Text Block]
Note 21
– Business Geographic Segment Information

ASC 280, Segment Reporting, establishes standards for reporting information about operating segments.  Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker, or decision making group, in deciding how to allocate resources and in assessing performance.  The Company’s chief operating decision maker is the Chief Executive Officer, who reviews the financial performance and the results of operations of the segments prepared in accordance with U.S. GAAP when making decisions about allocating resources and assessing performance of the Company.  The Company has determined that its two reportable segments are CMS and IT Staffing.  CMS offers web content management solutions, marketing cloud solutions, mobile applications, analytics, front-end user experience and design, and marketing automation.  The IT Staffing segment provides contract and contract-to-hire IT professional staffing services.  During the current year, the Company has allocated additional selling, general, and administrative expenses and other expenses to the CMS business segment to reflect the Company’s focus on the digital market space most serviced by the CMS business Segment.  Costs excluded from segment operating income include various corporate expenses such as share-based compensation expense, income taxes, other income and expenses, various nonrecurring charges, and other separately managed general and administrative costs.

There are currently no intersegment revenues.  Asset information by operating segment is not presented below since the chief operating decision maker does not review this information by segment.  The reporting segments follow the same accounting policies used in the preparation of the Company’s consolidated financial statements which are described in Note 4 – Significant and Critical Accounting Policies and Practices.

Segment information relating to the Company’s results of operations was as follows for the periods indicated:

 
 
For the Years Ended
 
Revenues
 
December 31, 2015 (Audited)
   
December 31, 2014 (Audited)
 
 
           
CMS
 
$
11,229,654
   
$
6,863,959
 
IT Staffing
   
1,560,238
     
4,933,854
 
Total
 
$
12,789,892
   
$
11,797,813
 

 
 
For the Years Ended
 
Gross Margin
 
December 31, 2015 (Audited)
   
December 31, 2014 (Audited)
 
 
           
CMS
 
$
4,737,208
   
$
3,243,563
 
IT Staffing
   
324,440
     
1,128,393
 
Total
 
$
5,061,648
   
$
4,371,956
 

 
 
For the Years Ended
 
 
Business Segment Performance
 
December 31, 2015 (Audited)
   
December 31, 2014 (Audited)
 
 
           
CMS
 
$
(4, 267,719
)
 
$
813,722
 
IT Staffing
   
(406, 759
)
   
(237,499
)
Total
 
$
(4, 674,478
)
 
$
576,223
 

 
 
For the Years Ended
 
Net (Loss) Income
 
December 31, 2015 (Audited)
   
December 31, 2014 (Audited)
 
Business Segment Performance
 
$
(4, 674,478
)
 
$
576,223
 
Interest expense, net
   
(281,411
)
   
(147,069
)
Depreciation and amortization
   
(564,839
)
   
(82,342
)
Income tax benefit
   
451,858
     
161,255
 
Stock Based Compensation to Employees and Board of Directors
   
(1, 424,672
)
   
-
 
Compensation expense of former principals of acquired companies
   
(250,000
)
   
-
 
Acquisition related expenses
   
(169,191
)
   
-
 
One-time Professional and Legal fees
   
( 911,456
)
   
-
 
Loss on debt extinguishment
   
-
     
(57,502
)
Loss on derivative liability
   
(9,292, 720
)
   
-
 
Other income
   
5,619
     
20,000
 
Net (loss) income
 
$
( 17,111,290
)
 
$
470,565