| Schedule of Net Sales and Identifiable Operating Income by Segment |
The following
table summarizes net sales and identifiable operating income by segment:
| |
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
| |
|
2017 |
|
|
2016 |
|
|
2017 |
|
|
2016 |
|
| Segment gross profit (a): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Monitoring |
|
$ |
158,653 |
|
|
$ |
84,013 |
|
|
$ |
225,991 |
|
|
$ |
116,937 |
|
| Distributorships |
|
|
104,219 |
|
|
|
- |
|
|
|
188,714 |
|
|
|
- |
|
| Gross Profit |
|
|
262,872 |
|
|
|
84,013 |
|
|
|
414,705 |
|
|
|
116,937 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Identifiable segment operating expenses (b): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Monitoring |
|
|
51,580 |
|
|
|
6,356 |
|
|
|
57,412 |
|
|
|
15,557 |
|
| Distributorships |
|
|
37,560 |
|
|
|
- |
|
|
|
86,090 |
|
|
|
- |
|
| |
|
|
89,140 |
|
|
|
6,356 |
|
|
|
143,502 |
|
|
|
15,557 |
|
| Identifiable segment operating income (c): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Monitoring |
|
|
107,073 |
|
|
|
77,657 |
|
|
|
168,579 |
|
|
|
101,380 |
|
| Distributorships |
|
|
66,659 |
|
|
|
- |
|
|
|
102,624 |
|
|
|
- |
|
| |
|
|
173,732 |
|
|
|
77,657 |
|
|
|
271,203 |
|
|
|
101,380 |
|
| Reconcilliation of identifiable segment income to corporate income (d): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Payroll |
|
|
98,462 |
|
|
|
31,518 |
|
|
|
168,776 |
|
|
|
65,247 |
|
| Professional fees |
|
|
35,771 |
|
|
|
36,985 |
|
|
|
76,902 |
|
|
|
61,621 |
|
| General and administrative expenses |
|
|
(388,747 |
) |
|
|
142,402 |
|
|
|
327,345 |
|
|
|
225,959 |
|
| Depreciation |
|
|
(414 |
) |
|
|
319 |
|
|
|
640 |
|
|
|
1,373 |
|
| Interest expense |
|
|
150,489 |
|
|
|
42,507 |
|
|
|
294,798 |
|
|
|
69,925 |
|
| Change in fair value of derivative liability |
|
|
(1,464 |
) |
|
|
(15,122 |
) |
|
|
(17,492 |
) |
|
|
19,612 |
|
| Loss on extinguishment of debt |
|
|
305,000 |
|
|
|
- |
|
|
|
305,000 |
|
|
|
- |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Income (loss) before provision for income taxes |
|
|
(25,365 |
) |
|
|
(160,952 |
) |
|
|
(884,766 |
) |
|
|
(342,357 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Provision for income taxes |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
| Net Income (loss) |
|
$ |
(25,365 |
) |
|
$ |
(160,952 |
) |
|
$ |
(884,766 |
) |
|
$ |
(342,357 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total net property, plant, and equipment assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Monitoring |
|
|
|
|
|
|
|
|
|
|
348,792 |
|
|
|
164,445 |
|
| Distributorships |
|
|
|
|
|
|
|
|
|
|
523,018 |
|
|
|
- |
|
| Corporate |
|
|
|
|
|
|
|
|
|
|
1,639 |
|
|
|
2,919 |
|
| |
|
|
|
|
|
|
|
|
|
|
873,449 |
|
|
|
167,364 |
|
| |
(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 income consists of segment gross profit, less identifiable operating expense |
| |
(d) |
General corporate expense consists of all other non-identifiable expenses |
|