| Segment Information |
9. Segment Information
Beginning on May 26, 2018, the Company operates
in the following segments: (A) United States: (i) PDN Network and (ii) NAPW Network, and (B) China Operations. The segments are
categorized based on their business activities and organization. Prior to May 26, 2018, the Company operated in the following segments:
(A) United States: (i) PDN Network, (ii) NAPW Network, and (B) China Operations. The following tables present key financial information
of the Company’s reportable segments as of and for the three and nine months ended September 30, 2018 and 2017:
| |
|
Three Months Ended September 30, 2018 |
|
| |
|
United States |
|
|
|
|
|
|
|
|
|
|
| |
|
PDN
Network
|
|
|
NAPW
Network
|
|
|
China
Operations
|
|
|
Corporate Overhead |
|
|
Consolidated |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Membership fees and related services |
|
$ |
- |
|
|
$ |
1,058,443 |
|
|
$ |
53,599 |
|
|
$ |
- |
|
|
$ |
1,112,042 |
|
| Recruitment services |
|
|
705,040 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
705,040 |
|
| Products sales and other |
|
|
- |
|
|
|
3,180 |
|
|
|
- |
|
|
|
- |
|
|
|
3,180 |
|
| Consumer advertising and marketing solutions |
|
|
74,360 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
74,360 |
|
| Total revenues |
|
|
779,400 |
|
|
|
1,061,623 |
|
|
|
53,599 |
|
|
|
- |
|
|
|
1,894,622 |
|
| (Loss) income from continuing operations |
|
|
67,617 |
|
|
|
(6,163,059 |
) |
|
|
(448,714 |
) |
|
|
(859,737 |
) |
|
|
(7,403,893 |
) |
| Depreciation and amortization |
|
|
15,757 |
|
|
|
631,485 |
|
|
|
2,861 |
|
|
|
- |
|
|
|
650,103 |
|
| Income tax expense (benefit) |
|
|
6,510 |
|
|
|
(269,371 |
) |
|
|
- |
|
|
|
72,913 |
|
|
|
(189,950 |
) |
| Net (loss) income from continuing operations |
|
|
66,807 |
|
|
|
(5,893,686 |
) |
|
|
(429,233 |
) |
|
|
(932,650 |
) |
|
|
(7,188,762 |
) |
| Capital expenditures |
|
|
- |
|
|
|
- |
|
|
|
(3,639 |
) |
|
|
- |
|
|
|
(3,639 |
) |
| |
|
Nine Months Ended September 30, 2018 |
|
| |
|
United States |
|
|
|
|
|
|
|
|
|
|
| |
|
PDN Network |
|
|
NAPW Network |
|
|
China Operations |
|
|
Corporate Overhead |
|
|
Consolidated |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Membership fees and related services |
|
$ |
- |
|
|
$ |
3,878,875 |
|
|
$ |
181,114 |
|
|
$ |
- |
|
|
$ |
4,059,989 |
|
| Recruitment services |
|
|
2,018,832 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
2,018,832 |
|
| Products sales and other |
|
|
- |
|
|
|
13,197 |
|
|
|
- |
|
|
|
- |
|
|
|
13,197 |
|
| Education and training |
|
|
- |
|
|
|
- |
|
|
|
16,048 |
|
|
|
- |
|
|
|
16,048 |
|
| Consumer advertising and marketing solutions |
|
|
218,637 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
218,637 |
|
| Total revenues |
|
|
2,237,469 |
|
|
|
3,892,072 |
|
|
|
197,162 |
|
|
|
- |
|
|
|
6,326,703 |
|
| Loss from continuing operations |
|
|
15,858 |
|
|
|
(7,360,589 |
) |
|
|
(1,273,897 |
) |
|
|
(2,850,279 |
) |
|
|
(11,468,907 |
) |
| Depreciation and amortization |
|
|
49,722 |
|
|
|
1,926,366 |
|
|
|
13,037 |
|
|
|
- |
|
|
|
1,989,125 |
|
| Income tax expense (benefit) |
|
|
1,832 |
|
|
|
(408,375 |
) |
|
|
2,265 |
|
|
|
(158,137 |
) |
|
|
(562,415 |
) |
| Net loss from continuing operations |
|
|
31,183 |
|
|
|
(6,952,214 |
) |
|
|
(1,240,913 |
) |
|
|
(2,692,142 |
) |
|
|
(10,854,086 |
) |
| Capital expenditures |
|
|
- |
|
|
|
- |
|
|
|
(7,206 |
) |
|
|
- |
|
|
|
(7,206 |
) |
| |
|
September 30, 2018 |
|
| Goodwill |
|
$ |
339,451 |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
339,451 |
|
| Intangible assets, net |
|
|
90,400 |
|
|
|
4,318,534 |
|
|
|
- |
|
|
|
- |
|
|
|
4,408,934 |
|
| Assets from continuing operations |
|
|
1,542,973 |
|
|
|
5,423,600 |
|
|
|
1,564,863 |
|
|
|
- |
|
|
|
8,531,436 |
|
| |
|
Three Months Ended September 30, 2017 |
|
| |
|
|
United States |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
PDN
Network
|
|
|
|
NAPW
Network
|
|
|
|
China
Operations
|
|
|
|
Corporate Overhead |
|
|
|
Consolidated |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Membership fees and related services |
|
$ |
- |
|
|
$ |
2,204,909 |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
2,204,909 |
|
| Recruitment services |
|
|
694,454 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
694,454 |
|
| Products sales and other |
|
|
- |
|
|
|
18,285 |
|
|
|
- |
|
|
|
- |
|
|
|
18,285 |
|
| Education and training |
|
|
- |
|
|
|
- |
|
|
|
68,890 |
|
|
|
- |
|
|
|
68,890 |
|
| Consumer advertising and marketing solutions |
|
|
65,188 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
65,188 |
|
| Total revenues |
|
|
759,642 |
|
|
|
2,223,194 |
|
|
|
68,890 |
|
|
|
- |
|
|
|
3,051,726 |
|
| (Loss) income from continuing operations |
|
|
40,429 |
|
|
|
(1,219,722 |
) |
|
|
(348,630 |
) |
|
|
(1,000,362 |
) |
|
|
(2,528,285 |
) |
| Depreciation and amortization |
|
|
13,213 |
|
|
|
740,489 |
|
|
|
3,442 |
|
|
|
- |
|
|
|
757,144 |
|
| Income tax expense (benefit) |
|
|
3,283 |
|
|
|
(93,955 |
) |
|
|
(43,043 |
) |
|
|
(67,408 |
) |
|
|
(201,123 |
) |
| Net (loss) income from continuing operations |
|
|
51,263 |
|
|
|
(1,125,767 |
) |
|
|
(310,269 |
) |
|
|
(932,954 |
) |
|
|
(2,317,727 |
) |
| Capital expenditures |
|
|
93,676 |
|
|
|
- |
|
|
|
12,356 |
|
|
|
- |
|
|
|
106,032 |
|
| |
|
Nine Months Ended September 30, 2017 |
|
| |
|
|
United States |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
PDN
Network
|
|
|
|
NAPW
Network
|
|
|
|
China
Operations
|
|
|
|
Corporate Overhead |
|
|
|
Consolidated |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Membership fees and related services |
|
$ |
- |
|
|
$ |
7,465,202 |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
7,465,202 |
|
| Recruitment services |
|
|
1,977,101 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
1,977,101 |
|
| Products sales and other |
|
|
- |
|
|
|
91,226 |
|
|
|
- |
|
|
|
- |
|
|
|
91,226 |
|
| Education and training |
|
|
- |
|
|
|
- |
|
|
|
898,584 |
|
|
|
- |
|
|
|
898,584 |
|
| Consumer advertising and marketing solutions |
|
|
189,217 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
189,217 |
|
| Total revenues |
|
|
2,166,318 |
|
|
|
7,556,428 |
|
|
|
898,584 |
|
|
|
- |
|
|
|
10,621,330 |
|
| (Loss) income from continuing operations |
|
|
(66,187 |
) |
|
|
(13,185,268 |
) |
|
|
(286,957 |
) |
|
|
(4,747,737 |
) |
|
|
(18,286,149 |
) |
| Depreciation and amortization |
|
|
67,099 |
|
|
|
2,220,806 |
|
|
|
6,107 |
|
|
|
- |
|
|
|
2,294,012 |
|
| Income tax expense (benefit) |
|
|
(3,422 |
) |
|
|
(831,178 |
) |
|
|
- |
|
|
|
(291,620 |
) |
|
|
(1,126,220 |
) |
| Net (loss) income from continuing operations |
|
|
(50,859 |
) |
|
|
(12,354,090 |
) |
|
|
(294,962 |
) |
|
|
(4,456,117 |
) |
|
|
(17,156,028 |
) |
| Capital expenditures |
|
|
100,823 |
|
|
|
10,646 |
|
|
|
48,060 |
|
|
|
- |
|
|
|
159,529 |
|
| |
|
December 31, 2017 |
|
| Goodwill |
|
$ |
339,451 |
|
|
$ |
5,250,699 |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
5,590,150 |
|
| Intangible assets, net |
|
|
90,400 |
|
|
|
6,174,306 |
|
|
|
- |
|
|
|
- |
|
|
|
6,264,706 |
|
| Assets from continuing operations |
|
|
1,726,061 |
|
|
|
12,889,367 |
|
|
|
3,056,281 |
|
|
|
- |
|
|
|
17,671,709 |
|
|