Quarterly report pursuant to Section 13 or 15(d)

Segment Information

Segment Information

9 Months Ended

Sep. 30, 2019

11. Segment Information

Beginning on May 26, 2018, the Company operates in the following segments: (A) United States: (i) PDN Network and (ii) NAPW Network, (B) China Operations, and (C) Corporate Overhead. 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, (iii) Noble Voice, (B) China Operations, and (C) Corporate Overhead. 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, 2019 and 2018:

	Three Months Ended September 30, 2019
	United States
	PDN Network			NAPW Network			China Operations			Corporate Overhead			Consolidated

Membership fees and related services	$	-		$	515,796		$	-		$	-		$	515,796
Recruitment services		790,488			-			-			-			790,488
Products sales and other		-			1,053			-			-			1,053
Education and training		-			-			6,610			-			6,610
Consumer advertising and marketing solutions		34,069			-			-			-			34,069
Total revenues		824,557			516,849			6,610			-			1,348,016
(Loss) income from continuing operations		(9,843	)		(128,039	)		(200,214	)		(771,067	)		(1,109,163	)
Depreciation and amortization		15,202			201,442			4,036			-			220,680
Income tax expense (benefit)		(1,646	)		(6,475	)		-			(37,337	)		(45,458	)
Net (loss) income from continuing operations		217,160			(121,564	)		(201,059	)		(733,730	)		(839,193	)
Capital expenditures		-			-			(812	)		-			(812	)

	Nine Months Ended September 30, 2019
	United States
	PDN Network			NAPW Network			China Operations			Corporate Overhead			Consolidated

Membership fees and related services	$	-		$	1,944,249		$	6,374		$	-		$	1,950,623
Recruitment services		1,915,794			-			-			-			1,915,794
Products sales and other		-			5,008			-			-			5,008
Education and training		-			-			41,491			-			41,491
Consumer advertising and marketing solutions		107,844			-			-			-			107,844
Total revenues		2,023,638			1,949,257			47,865			-			4,020,760
(Loss) income from continuing operations		(200,864	)		(280,015	)		(886,889	)		(2,059,015	)		(3,426,783	)
Depreciation and amortization		46,834			604,327			12,482			-			663,643
Income tax expense (benefit)		9,329			(15,641	)		8,594			(115,015	)		(112,733	)
Net (loss) income from continuing operations		388,150			(264,374	)		(906,167	)		(1,944,000	)		(2,726,391	)
Capital expenditures		-			-			2,523			-			2,523

	September 30, 2019
Goodwill	$	339,451	$	-	$	1,483,869	$	-	$	1,823,320
Intangible assets, net		90,400		381,037		-		-		471,437
Assets from continuing operations		2,837,613		1,304,988		5,152,944		-		9,295,545

	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
Education and training		-		-			-			-			-
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		(269,373	)		-			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	)

	December 31, 2018
Goodwill	$	339,451	$	-	$	-	$	-	$	339,451
Intangible assets, net		90,400		930,543		-		-		1,020,943
Assets from continuing operations		1,654,346		1,970,594		1,486,891		-		5,111,831