| Schedule of Net Sales and Identifiable Operating Income by Segment |
The following
table summarizes net sales and identifiable operating income by segment:
| |
|
Years Ended December 31, |
|
| |
|
2017 |
|
|
2016 |
|
| |
|
|
|
|
(restated) |
|
| Segment gross profit (a): |
|
|
|
|
|
|
|
|
| Monitoring |
|
$ |
773,395 |
|
|
$ |
173,852 |
|
| Distributorships |
|
|
301,240 |
|
|
|
88,745 |
|
| Gross profit |
|
|
1,074,635 |
|
|
|
262,597 |
|
| |
|
|
|
|
|
|
|
|
| Identifiable segment operating expenses (b): |
|
|
|
|
|
|
|
|
| Monitoring |
|
|
224,884 |
|
|
|
19,296 |
|
| Distributorships |
|
|
110,810 |
|
|
|
44,139 |
|
| |
|
|
335,694 |
|
|
|
63,435 |
|
| |
|
|
|
|
|
|
|
|
| Identifiable segment operating income (c): |
|
|
|
|
|
|
|
|
| Monitoring |
|
|
548,511 |
|
|
|
154,556 |
|
| Distributorships |
|
|
190,430 |
|
|
|
44,606 |
|
| |
|
|
738,941 |
|
|
|
199,162 |
|
| |
|
|
|
|
|
|
|
|
| Reconciliation of identifiable segment income to corporate income (d): |
|
|
|
|
|
|
|
|
| Payroll |
|
|
473,620 |
|
|
|
147,231 |
|
| Professional fees |
|
|
146,406 |
|
|
|
92,705 |
|
| General and administrative expenses |
|
|
841,961 |
|
|
|
458,351 |
|
| Depreciation |
|
|
2,349 |
|
|
|
2,014 |
|
| Interest expense |
|
|
943,415 |
|
|
|
214,708 |
|
| Change in fair value of derivative liability |
|
|
(68,078 |
) |
|
|
22,231 |
|
| Loss on extinguishment of debt |
|
|
305,000 |
|
|
|
116,541 |
|
| Impairment of fixed assets |
|
|
801,983 |
|
|
|
- |
|
| |
|
|
|
|
|
|
|
|
| Loss before provision for income taxes |
|
|
(2,707,715 |
) |
|
|
(854,619 |
) |
| |
|
|
|
|
|
|
|
|
| Provision for income taxes |
|
|
1,600 |
|
|
|
1,600 |
|
| Net loss |
|
$ |
(2,709,315 |
) |
|
$ |
(856,219 |
) |
| |
|
|
|
|
|
|
|
|
| Total net property, plant, and equipment assets |
|
|
|
|
|
|
|
|
| Monitoring |
|
$ |
506,721 |
|
|
$ |
107,702 |
|
| Distributorships |
|
|
249,682 |
|
|
|
246,365 |
|
| Corporate |
|
|
34,930 |
|
|
|
2,279 |
|
| |
|
$ |
791,333 |
|
|
$ |
356,346 |
|
| (a) |
Segment gross profit includes segment net sales less segment cost of sales |
| (b) |
Identifiable segment operating expenses consists of identifiable depreciation expense |
| (c) |
Identifiable segment operating incomes consists of segment gross profit less identifiable operating expense |
| (d) |
General corporate expense consists of all other non-identifiable expenses |
|