Segment Reporting

12 Months Ended

Mar. 31, 2017

Notes to Financial Statements

Segment Reporting

20 - SEGMENT REPORTING

The Company operates in two reportable segments based on product differentiation: mobile and enterprise software. Mobile applications involve providing SMS and other content applications and services for mobile devices. Enterprise software involves providing enterprise software for designing, developing and manipulating database systems and applications.

The Company considers all revenues and expenses to be of an operating nature and accordingly, allocates them to the segments. Costs specific to a segment are charged directly to the segment. Company operating expenses are allocated to either of the segments based on gross revenues. Significant assets of the Company include working capital, an investment and property and equipment. The accounting policies of the reportable segments are the same as those described in the summary of the significant accounting policies.

The following table sets forth external revenues, cost of revenues (including depreciation expense), operating expenses (including depreciation expense) and other amounts attributable to these product lines:

Year ended March 31, 2017	Mobile	Software, Maintenance and Consulting	Total
	$	$	$
Revenue	188,654	482,247	670,901
Cost of revenue	3,939	14,661	18,600
Gross margin	184,715	467,586	652,301
Allocation of operating expenses	213,391	541,177	753,568
Allocation of gain on sales of assets	(165)	(417)	(582)
Allocation of dividend income	(2,551)	(4,576)	(9,008)
Allocation of interest income, net	(6,295)	(15,934)	(22,229)
	204,381	517,368	721,749
Net loss	(19,666)	(49,782)	(69,448)

Year ended March 31, 2016	Mobile	Software, Maintenance and Consulting	Total
	$	$	$
Revenue	140,889	478,402	619,291
Cost of revenue	6,241	60,896	67,137
Gross margin	134,648	417,506	552,154
Allocation of operating expenses	224,532	696,209	920,741
Allocation of interest income, net	(13,959)	(43,096)	(57,055)
Income taxes	-	148	148
	210,573	653,261	863,834
Net loss	(75,925)	(235,755)	(311,680)

Year ended March 31, 2015	Mobile	Software, Maintenance and Consulting	Total
	$	$	$
Revenue	162,741	972,922	1,135,663
Cost of revenue	8,540	62,335	70,875
Gross margin	154,201	910,587	1,064,788
Allocation of operating expenses	207,482	1,225,226	1,432,708
Allocation of interest income	(11,015)	(65,048)	(76,063)
Gain on investment	(9,647)	(56,964)	(66,611)
Income tax recovery	1,666	9,836	11,502
	188,486	1,113,050	1,301,536
Net loss	(34,285)	(202,463)	(236,748)

One customer accounted for approximately 12.5% for the year ended March 31, 2015, one customer accounted for approximately 21% of revenue for the year ended March 31, 2016 and one customer accounted for approximately 28% of revenue for the year ended March 31, 2017.

The following table sets forth total assets used by each segment:

TOTAL ASSETS	March 31, 2017	March 31, 2016
	$	$
Mobile	263,975	259,615
Software	674,787	804,995
Total assets	938,762	1,064,610

The following tables set forth external revenues and long-lived assets attributable to geographic areas. External revenues are based on the location of the customer:

	March 31, 2017	March 31, 2016
	$	$
Long-lived assets
Canada	21,099	24,155
Brazil	2,659	2,162
Total long-lived assets	23,758	26,317

Total Revenue	Year ended  March 31, 2017	Year ended March 31, 2016	Year ended March 31, 2015
	$	$
United States	47,057	48,850	61,500
Europe	5,885	15,605	15,898
Brazil	245,475	372,983	710,348
Canada	181,415	49,783	186,889
Singapore	188,596	136,612	157,049
Other	2,473	1,458	3,979
Total revenue	670,901	619,291	1,135,663

Management evaluates each segment’s performance based upon revenues and gross margins achieved.