4. Operating Segments

12 Months Ended

Dec. 31, 2015

Segment Reporting [Abstract]

Operating Segments

The Company has several operating segments as listed below and as defined in Note 1. The results for these operating segments are based on our internal management structure and review process. We define our operating segments by service industry. If the management structure and/or allocation process changes, allocations may change. See the following summary of operating segment reporting;

Operating Segments	For the Year Ended December 31,
	2015			2014
Revenue
Halo Asset Management	$	975,688		$	1,315,722
Halo Portfolio Advisors		1,961,859			1,165,569
Other		163,894			63,750
Net Revenue	$	3,101,441		$	2,545,041
Operating income (loss):
Halo Asset Management	$	698,287		$	571,167
Halo Portfolio Advisors		750,385			204,378
Other		–			–
Less: Corporate expenses (a)		(3,229,662	)		(2,039,625	)
Operating income (loss):	$	(1,780,990	)	$	(1,264,080	)

a. Corporate expenses include salaries, benefits and other expenses, including rent and general and administrative expenses, related to corporate office overhead and functions that benefit all operating segments. Corporate expenses also include interest expense. Corporate expenses are expenses that the Company does not directly allocate to any segment above. Allocating these indirect expenses to operating segments would require an imprecise allocation methodology. Further, there are no material amounts that are the elimination or reversal of transactions between the above reportable operating segments.

The assets of the Company consist primarily of cash, trade accounts receivable, and property, equipment and software. Cash is managed at the corporate level of the Company and not at the segment level. Each of the remaining primary assets has been discussed in detail, including the applicable operating segment for which the assets and liabilities reside, in the consolidated notes to the financial statements. As such, the duplication is not warranted in this footnote.

All debt of the Company is recorded at the corporate parent companies HCI and HGI. In 2015 and 2014, all interest expense is included in corporate expenses above. Interest expense is discussed in further detail in Notes 9, 10, 11 and 12.

For the year ended December 31, 2015 and 2014, there have been no material transactions between reportable units that would materially affect an operating segment profit or loss. Intercompany transactions are eliminated in the consolidated financial statements.