Segment Reporting

6 Months Ended

Jun. 30, 2019

Segment Reporting [Abstract]

Segment Reporting

NOTE 11 – SEGMENT REPORTING

The Company operates within four reportable segments. The Company’s management evaluates performance and allocates resources based on the profit or loss from operations. Because the Company is a service business with very few physical assets, Management does not use total assets by segment to make decisions regarding operations, and therefore, the total assets disclosure by segment has not been included.

The reportable segments consist of Hosted Services, Mobile Services, Lifeline ETC (“Eligible Communications Carrier”), and Lifeline VETC (“Virtual Eligible Communications Carrier”).

Hosted Services – This segment includes a suite of hosted CPaaS (“Communications Platform as a Service”) services including SIP/VoIP services, SMS/MMS, BOT integration, NLP (“Natural Language Processing”), ML (“Machine Learning”), mobile numbers, toll free numbers, DID landline numbers, SMS to Email, Database Dip, SD-WAN, voice termination and numerous API driven services.  Apeiron developed, owns and supports its services through its dedicated national telecommunications network. Apeiron provides telecommunications services to application developers, call centers and small & medium size businesses. Apeiron markets these services through the Apeiron website, independent sales agents, ISOs (Independent Sales Organizations) and Social Media Optimization (“SCO”).

Mobile Services – This segment includes retail and wholesale cellular voice/text/data services and mobile data (IoT – “Internet of Things”) services. KonaTel consolidated its wholesale and retail services with Apeiron’s hosted CPaaS services, providing Apeiron with an expanded portfolio of mobile services to bundle with its existing services. Apeiron’s mobile voice/text/data and mobile data services are supported by a blend of reseller agreements with select national wireless carriers and national wireless wholesalers.  A wireless communications service reseller does not own the wireless network infrastructure over which services are provided to its customers.  Apeiron’s mobile voice/text/data and mobile data solutions are generally sold as traditional post-paid service plans that may include voice/text/data or wireless data only plans. Sometimes equipment is provided which can include, but is not limited to, phones, tablets, modems, routers and accessories. Apeiron primarily markets its mobile services through independent sales agents and ISOs via the “Apeiron” brand.  These agents and ISOs generally market to small and medium sized businesses throughout the United States.  This type of marketing is also considered B2B (“Business to Business”) sales.

Lifeline ETC – This segment operates under its own FCC approved Compliance Plan and FCC wireless ETC designation in seven states which currently include Georgia, Maryland, Nevada, Oklahoma, South Carolina, Vermont and Wisconsin.  IM Telecom, operating under its Infiniti Mobile brand, currently markets its Lifeline service through its Internet presence, its storefront in Tulsa, Oklahoma and through ISOs that specialize in the distribution of Lifeline services.  These ISOs typically support teams of field agents who market directly to Lifeline eligible individuals requesting Lifeline service.  We provide phones and wireless voice/text/data service to Lifeline eligible individuals requesting Lifeline service. In some states and depending on government requirements, we may only provide voice/text service with no mobile data.

Lifeline VETC – This segment operates under the license of another ETC.  We currently market our Lifeline VETC sales through ISOs that specialize in the distribution of Lifeline services.  These ISOs typically support teams of field agents who market directly to Lifeline eligible individuals requesting Lifeline service. We provide phones and wireless voice/text/data service to Lifeline eligible individuals requesting Lifeline service. In some states and depending upon government requirements, we may only provide voice/text service with no mobile data.

The following table reflects the result of operations of the Company’s reportable segments:

	Hosted Services			Mobile Services			Lifeline ETC			Lifeline VETC			Total
For the six-month period ended June 30, 2019
Revenue	$	1,575,228		$	1,347,719		$	366,107		$	1,617,612		$	4,906,666
Net Loss	$	(353,511	)	$	(137,665	)	$	(125,231	)	$	(285,609	)	$	(902,016	)
Depreciation and amortization	$	428,588		$	38,239		$	12,352		$	23,052		$	502,231
Additions to property and equipment	$	—		$	—		$	—		$	—		$	—
For the three-month period ended June 30, 2019
Revenue	$	859,564		$	640,512		$	171,873		$	594,419		$	2,266,368
Net Loss	$	(269,032	)	$	(54,331	)	$	(128,223	)	$	(153,264	)	$	(604,849	)
Depreciation and amortization	$	218,319		$	16,545		$	20,754		$	13,639		$	269,257
Additions to property and equipment	$	—		$	—		$	—		$	—		$	—
For the six-month period ended June 30, 2018
Revenue	$	—		$	2,784,250		$	—		$	2,353,454		$	5,137,704
Net Loss	$	—		$	(202,033	)	$	—		$	(1,099,958	)	$	(1,301,991	)
Depreciation and amortization	$	—		$	115,140		$	—		$	29,450		$	144,590
Additions to property and equipment	$	—		$	—		$	—		$	—		$	—
For the three-month period ended June 30, 2018
Revenue	$	—		$	1,218,100		$	—		$	1,526,249		$	2,744,349
Net Loss	$	—		$	(5,886	)	$	—		$	(768,078	)	$	(773,964	)
Depreciation and amortization	$	—		$	52,542		$	—		$	4,013		$	56,555
Additions to property and equipment	$	—		$	—		$	—		$	—		$	—