v3.22.2.2
SEGMENT DATA
Sep. 30, 2022
Segment Reporting [Abstract]  
SEGMENT DATA

NOTE 19. 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 Ticketing, each of which has specific personnel responsible for that business and reports to the CODM. Corporate expenses capture the Company’s corporate administrative activities, and are 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 it 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 Ticketing 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 September 30, 2022, and September 30, 2021:

 

   2022   2021   2022   2021 
   Three months ended
September 30,		   Nine months ended
September 30,		 
   2022   2021 (as amended)   2022   2021 (as amended) 
Net Revenues:                    
Video Solutions  $2,092,927   $2,028,660   $6,152,733   $7,058,161 
Revenue Cycle Management   2,015,112    560,483    6,039,807    560,483 
Ticketing   4,376,114    2,050,679    15,937,852    2,050,679 
Total Net Revenues  $8,484,153   $4,639,822   $28,130,392   $9,669,323 
                     
Gross Profit (Loss):                    
Video Solutions  $515,615   $590,447   $1,543,057   $2,663,131 
Revenue Cycle Management   866,277    197,682    2,520,709    197,682 
Ticketing   (786,392)   612,441    190,432    612,441 
Total Gross Profit  $595,500   $1,400,570   $4,254,198   $3,473,254 
                     
Operating Income (loss):                    
Video Solutions  $(1,481,048)  $(940,039)  $(4,327,049)  $(1,919,559)
Revenue Cycle Management   117,844    (40,537)   236,628    (40,537)
Ticketing   (2,149,412)   44,026    (5,915,953)   44,026 
Corporate   (3,054,407)   (2,662,423)   (10,025,236)   (7,165,483)
Total Operating Income (Loss)  $(6,567,023)  $(3,598,973)  $(20,031,610)  $(9,081,553)
                     
Depreciation and Amortization:                    
Video Solutions  $213,446   $119,560   $584,266   $236,131 
Revenue Cycle Management   320,004    2,890    959,366    2,890 
Ticketing   102,211    609    102,575    609 
Total Depreciation and Amortization  $635,661   $123,059   $1,646,207   $239,630 

 

  

September 30,
2022

  

December 31,
2021

 
Assets (net of eliminations):          
Video Solutions  $33,656,285   $25,983,348 
Revenue Cycle Management   2,446,740    934,095 
Ticketing   15,072,548    12,260,780 
Corporate   17,221,891    43,810,974 
Total Identifiable Assets  $68,397,464   $82,989,197 

 

The segments recorded noncash items affecting 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 $3,227,488 and a reserve for the ticketing segment of $543,936.

 

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.