5. SEGMENT INFORMATION

6 Months Ended

Mar. 31, 2019

Segment Reporting [Abstract]

SEGMENT INFORMATION

NOTE 5                SEGMENT INFORMATION

The Company, post IPS acquisition, conducts its business through two operating segments, which are also its reportable segments:

· Distribution and

· Design

Segment operating income (loss) reflects results before shared corporate and unallocated administrative expenses and income taxes. Shared corporate and unallocated administrative expenses principally consist of costs for corporate and administrative support functions.

For the Three Months Ended March 31,				For the Six Months Ended March 31,
2019		2018		2019		2018
Revenue
Distribution	$	4,769,558	$	6,194,429	$	11,050,284	$	12,530,896
Design		3,402,909		2,817,998		7,305,466		2,817,998
Total Revenue		8,172,467		9,012,427		18,355,750		15,348,894
Cost of Sales
Distribution		4,017,886		5,149,455		9,312,318		10,483,326
Design		2,843,736		2,032,207		6,429,546		2,032,207
Total Cost of Sales		6,861,622		7,181,662		15,741,864		12,515,533
Segment Operating Income (loss) from operations
Distribution		(616,784)		92,505		(610,787)		143,578
Design		(458,277)		139,559		(944,801)		139,559
Total Income (loss) from operations		(1,075,061)		232,064		(1,555,588)		283,137
Other expenses
Distribution		(34,794)		(21,024)		(71,758)		(25,446)
Design		(21,050)		(9,573)		(34,086)		(9,573)
Total Other expenses		(55,844)		(30,597)		(105,844)		(35,019)
Income (loss) before income taxes
Distribution		(651,578)		71,481		(682,545)		118,132
Design		(479,327)		129,986		(978,887)		129,986
Total Income (loss) before income taxes	$	(1,130,905)	$	201,467	$	(1,661,432)	$	248,118

The following table presents total assets by operating segment:

	March 31,  2019	September 30, 2018
Distribution	$               9,369,272	$            12,010,344
Design	7,046,866	7,217,522
Total assets	$             16,416,138	$            19,227,866