4. SEGMENT INFORMATION

3 Months Ended

Dec. 31, 2019

Segment Reporting [Abstract]

SEGMENT INFORMATION

NOTE 4            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 Quarter Ended December 31,
	2019			2018
Revenue
Distribution	$	4,696,243		$	6,280,726
Design		3,696,611			3,902,557
Total revenue		8,392,854			10,183,283
Cost of sales
Distribution	$	4,093,318		$	5,294,432
Design		2,579,527			3,585,810
Total cost of sales	$	6,672,845		$	8,880,242
Segment operating Income (loss) from operations
Distribution	$	(443,189	)	$	5,997
Design		414,060			(486,524	)
Total loss from operations	$	(29,129	)	$	(480,527	)
Other expenses
Distribution	$	(33,580	)	$	(36,964	)
Design		(18,948	)		(13,036	)
Total Other expenses	$	(52,528	)	$	(50,000	)
Income (loss) before income taxes
Distribution	$	(476,769	)	$	(30,967	)
Design		395,112			(499,560	)
Total loss before income taxes	$	(81,657	)	$	(530,527	)

The following table presents total assets by operating segment:

	December 31, 2019		September 30, 2019
Distribution	$	8,170,014	$	9,554,465
Design		10,535,156		6,539,887
Total assets	$	18,705,170	$	16,094,352