16. Segment Information

9 Months Ended

Sep. 30, 2013

Segment Information

NOTE 16 - Segment Information

In 2012 and through June 30, 2013, ProElite, Stratus White and other events were considered operating segments pursuant to ASC Topic 280 “Segment Reporting” since each was budgeted separately and tracked separately to provide the chief operating decision maker information to assess and manage ProElite, Stratus White and other events.

The characteristics of the Stratus Reward program and ProElite were different than the other events, so that operating segment was considered a reporting segment. The events share similar economic characteristics and were aggregated into a reporting segment pursuant to paragraph 17 of ASC Topic 280. All of the events provide entertainment and the logistics and production processes and methods for each event were similar: sponsorship sales, ticket and concession sales, security, stages, public address systems and the like. While the demographic characteristics of the audience could vary by event, all events catered to consumer entertainment. Subsequent to December 31, 2012, the Company decided to suspend development of all business activities other than ProElite and effective June 30, 2013, the Company decided to suspend development of its ProElite business.

A summary of results by segments was as follows: 

	As of/for the Nine Months Ended September 30, 2013														As of/for the Nine Months Ended September 30, 2012
		Stratus						Other								Stratus						Other
		Rewards			ProElite			Events		Other			Total			Rewards			ProElite			Events		Other			Total
Revenues	$	–		$	72		$	–	$	–		$	72		$	–		$	375		$	–	$	–		$	375
Cost of sales		–			–			–		–			–			–			236			–		–			236
Gross margin		–			72			–		–			72			–			139			–		–			139
Deprec. & Amort.		–			–			–		25			25			–			2			–		28			30
Segment profit		–			72			–		(25	)		47			–			137			–		(28	)		109
Operating expenses		85			192			–		11,744			12,021			263			803			–		7,265			8,331
Other expenses		–			60			–		38			98			–			68			–		663			730
Impact of derivative securities		–			–			–		(10,390	)		(10,390	)		–			–			–		13,845			13,845
Net loss		(85	)		(180	)		–		(1,417	)		(1,682	)		(263	)		(734	)		–		(21,802	)		(22,798	)
Net loss attributable to non-controlling interests										28			28											6			6
Preferred dividends										172			172											365			365
Net loss attributable to common shareholders	$	(85	)	$	(180	)	$	–	$	(1,561	)	$	(1,826	)	$	(263	)	$	(734	)	$	–	$	(22,161	)	$	(23,157	)
Assets	$	–		$	230		$	–	$	3,005		$	3,235		$	1,073		$	119		$	–	$	2,752		$	3,944
Liabilities	$	122		$	2,779		$	–	$	6,671		$	9,572		$	300		$	2,271		$	–	$	37,144		$	39,715