5. SEGMENT INFORMATION

6 Months Ended

Mar. 31, 2020

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 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,
	2020			2019			2020			2019
Revenue
Distribution	$	4,623,895		$	4,769,558		$	9,320,138		$	11,050,284
Design		3,307,482			3,402,909			7,004,093			7,305,466
Total Revenue		7,931,377			8,172,467			16,324,231			18,355,750
Cost of Sales
Distribution		4,062,864			4,017,886			8,156,182			9,312,318
Design		2,415,364			2,843,736			4,994,891			6,429,546
Total Cost of Sales		6,478,228			6,861,622			13,151,073			15,741,864
Segment Operating Income (loss) from operations
Distribution		(378,012	)		(616,784	)		(821,201	)		(610,787	)
Design		(1,288,685	)		(458,277	)		(874,625	)		(944,801	)
Total Income (loss) from operations		(1,666,697	)		(1,075,061	)		(1,695,826	)		(1,555,588	)
Other expenses
Distribution		307,262			(34,794	)		273,682			(71,758	)
Design		(12,179	)		(21,050	)		(31,127	)		(34,086	)
Total Other expenses		295,083			(55,844	)		242,555			(105,844	)
Income (loss) before income taxes
Distribution		(70,750	)		(651,578	)		(547,519	)		(682,545	)
Design		(1,300,864	)		(479,327	)		(905,752	)		(978,887	)
Total Income (loss) before income taxes	$	(1,371,614	)	$	(1,130,905	)	$	(1,453,271	)	$	(1,661,432	)

The following table presents total assets by operating segment:

	March 31,		September 30,
	2020		2019
Distribution	$	7,227,850	$	9,554,465
Design		8,956,976		6,539,887
Total assets	$	16,184,826	$	16,094,352