Segment Information

The Company provides operating results in three reportable segments: GovDeals, Capital Assets Group (CAG), and Retail Supply Chain Group (RSCG). These three segments constitute 97% of the Company's revenue as of December 31, 2017, and each offers separately branded marketplaces to enable sellers to achieve channel marketing objectives to reach buyers. Across its segments, the Company offers its sellers two primary transaction models as well as a suite of services, and our revenues vary depending upon the models employed and the level of service required. A description of the reportable segments follows:

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The GovDeals reportable segment provides self-service solutions in which sellers list their assets for sale without relying on our services, and it consists of marketplaces that enable local and state government entities including city, county and state agencies, as well as commercial businesses located in the United States and Canada to sell surplus and salvage assets. GovDeals also offers a suite of services that includes asset sales and marketing services. This segment includes the Company's GovDeals.com and AuctionDeals.com marketplaces.

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The CAG reportable segment provides full-service solutions to sellers and it consists of marketplaces that enable federal government agencies as well as commercial businesses to sell surplus, salvage, and scrap assets. The assets that the Company receives as the exclusive contractor of the Defense Logistics Agency of the Department of Defense (DoD) are sold in this segment. CAG also offers a suite of services that includes surplus management, asset valuation, and asset sales and marketing services. Commercial sellers are located worldwide. This segment includes the Company's Network International, GoIndustry DoveBid, Government Liquidation, and Uncle Sam's Retail Outlet marketplaces.

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The RSCG reportable segment consists of marketplaces that enable corporations located in the United States and Canada to sell surplus and salvage consumer goods and retail capital assets. RSCG also offers a suite of services that includes returns management, asset recovery, and eCommerce services. This segment includes the Company's Liquidation.com, Liquidation.com DIRECT, and Secondipity marketplaces.

Corporate & Other primarily consists of the Company's TruckCenter and IronDirect operating segments which are not individually significant, as well as elimination adjustments. The TruckCenter business consisted of land-based, live auctions for fleet and transportation equipment. On January 30, 2017, the Company exited the TruckCenter land-based, live auction business in order to focus its time and resources on its ecommerce marketplace strategy. IronDirect offers buyers access to construction equipment, parts and services through a single ecommerce marketplace.

Decisions concerning the allocation of the Company’s resources are made by the Company’s Chief Operating Decision Maker ("CODM"), which is the Company's CEO, with oversight by the Board of Directors. The Company reports segment information based on the internal performance measures used by the CODM to assess the performance of each operating segment in a given period. In connection with that assessment, the CODM uses segment gross profit to evaluate the performance of each segment. Gross profit is calculated as total revenue less cost of goods sold and seller distributions.

The following table sets forth certain financial information for the Company's reportable segments:



		Three Months Ended December 31,
		2017			2016
GovDeals:
	Revenue	$	7,040		$	5,813
	Gross profit	$	6,543		$	5,438

CAG:
	Revenue	$	32,063		$	42,506
	Gross profit	$	17,603		$	21,202

RSCG:
	Revenue	$	20,485		$	21,411
	Gross profit	$	6,728		$	7,002

Corporate & Other:
	Revenue	$	1,555		$	1,065
	Gross profit	$	(675	)	$	335

Consolidated:
	Revenue	$	61,143		$	70,796
	Gross profit	$	30,199		$	33,977

The following table presents a reconciliation between the reportable segments and the Company's consolidated results:



		Three months ended December 31,
		2017			2016
Reconciliation:
	Revenue	$	61,143		$	70,796
	Gross profit	30,199			33,977
	Operating Expenses	36,651			42,237
	Interest and other (income) expense, net	(425		)	34
	(Benefit) provision for income taxes	(4,815		)	103
	Net loss	$	(1,212	)	$	(8,397	)