NOTE

11.

SEGMENT INFORMATION

During the year ended

December 31, 2019,

the Company operated through

five

business segments with separate management and reporting infrastructures that offer different products and services. The

five

business segments are as follows: Asset Management Operations, Real Estate Operations, Internet Operations, Home Services Operations, and Other Operations. As of the year ended

December 31, 2019,

and for all prior periods presented, Home Services Operations are reported as discontinued operations.

In previous periods, the Company reported under the following

six

business segments: Asset Management, Mt Melrose, HVAC, Internet, Real Estate, and Corporate. In an effort to highlight the direction of the Company and increase segment transparency, these historical segments were reorganized during the quarter ended

June 30, 2018.

Additional reorganizations were made as of

January 1, 2019,

in order to appropriately reflect the similarities in the Company’s real estate operations. The “Mt Melrose” and legacy “Real Estate” segments are referred to collectively as “Real Estate,” and the “HVAC” segment is referred to as “Home Services.” “Corporate” and other additional investments are combined under “Other Operations.” The “Asset Management” and “Internet” segments remain unchanged. See below for additional information on the activity included in each respective segment report.

As mentioned in Note

May 24, 2019,

the Company completed a divestiture of its Home Services Operations, via its subsidiary, Specialty Contracting Group, LLC, to an unaffiliated

third

-party purchaser, Rooter Hero Plumbing, Inc. (“Rooter Hero”). In the transaction, the Company sold and conveyed all of the subsidiary’s personal property and customer lists and records, excluding stock inventory and other current assets. As part of the transaction, Rooter Hero assumed the subsidiary’s obligations under lease and/or loan agreements for all outstanding vehicles and equipment, as well as the obligations to service all of the subsidiary’s remaining customer accounts going forward. The current and comparative results of the home services segment have been reported as discontinued on the accompanying consolidated financial statements for the year ended

December 31, 2019.

As mentioned in Note

June 27, 2019,

the Company sold

65%

of its membership interest in Mt Melrose, LLC to an unaffiliated

third

-party purchaser, Woodmont Lexington, LLC.

Management determined that as of

June 27, 2019,

the Company

longer has a “controlling financial interest” in Mt Melrose; therefore, the Company

longer consolidates Mt Melrose. All activity prior to the deconsolidation event has been included on the accompanying consolidated statements of operations for the year ended

December 31, 2019,

under the real estate segment. As of

June 27, 2019,

all previously consolidated assets and liabilities of Mt Melrose, LLC have been removed from the accompanying consolidated balance sheets for the year ended

December 31, 2019.

The asset management operations segment includes revenues and expenses derived from various joint ventures, service offerings, and initiatives undertaken in the asset management industry. The real estate segment includes revenue and expenses related to the management of properties held for investment and held for resale through Mt Melrose (prior to the sale of

65%

of our equity in Mt Melrose on

June 27, 2019)

located in Lexington, Kentucky, and revenue and expenses related to the management of legacy properties held for investment and held for resale through EDI Real Estate located in Roanoke, Virginia. The internet segment includes revenue and expenses related to our sale of internet access, hosting, storage, and other ancillary services. The home services segment includes discontinued revenue and expenses derived from our former operation of HVAC and plumbing companies in Arizona. The other segment includes revenue and expenses from nonrecurring or

one

-time strategic funding or similar activity and any revenue or expenses derived from corporate office operations, as well as expenses related to public company reporting, the oversight of subsidiaries, and other items that affect the overall Company.

The internet segment includes revenue generated by operations in both the United States and Canada. In the year ended

December 31, 2019,

the internet segment generated revenue of

$1,011,407

in the United States and revenue of

$54,822

in Canada. This compares to the year ended

December 31, 2018,

where the internet segment generated revenue of

$1,101,999

in the United States and revenue of

$66,844

in Canada. All assets reported under the internet segment for the years ended

December 31, 2019

and

2018,

are located within the United States.

Summarized financial information concerning the Company’s reportable segments is shown in the following tables for the years ended

December 31, 2019

and

2018.

Year Ended December 31, 2019		Asset Management		Real Estate			Internet		Other			Discontinued Operations - Home Services			Consolidated

Revenues	$	1,773,276	$	537,763		$	1,066,229	$	212,631		$	—		$	3,589,899
Cost of revenue		—		485,459			330,654		—			—			816,113
Operating expenses		410,226		338,025			223,118		1,101,098			—			2,072,467
Other income (expense)		36,565		(4,712,766	)		10,169		96,551			—			(4,569,481	)
Income (loss) from continuing operations		1,399,615		(4,998,487	)		522,626		(791,916	)		—			(3,868,162	)
Income (loss) from discontinued operations		—		—			—		—			(1,510,475	)		(1,510,475	)
Goodwill		—		—			212,445		—			—			212,445
Identifiable assets	$	10,186,353	$	556,994		$	414,935	$	740,934		$	428		$	11,899,644

Year Ended December 31, 2018		Asset Management			Real Estate			Internet		Other			Discontinued Operations - Home Services			Consolidated

Revenues	$	(775,249	)	$	778,657		$	1,168,843	$	160,492		$	—		$	1,332,743
Cost of revenue		—			450,859			325,234		202,533			—			978,626
Operating expenses		286,283			920,309			241,654		875,527			—			2,323,773
Other income (expense)		41,632			(1,416,257	)		35,649		2,673			—			(1,336,303	)
Income (loss) from continuing operations		(1,019,900	)		(2,008,768	)		637,604		(914,895	)		—			(3,305,959	)
Income (loss) from discontinued operations		—			—			—		—			(915,163	)		(915,163	)
Goodwill		—			—			212,445		—			—			212,445
Identifiable assets	$	8,496,917		$	12,550,571		$	430,503	$	1,508,601		$	1,532,860		$	24,519,452