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SEGMENT REPORTING
 9 Months Ended
Sep. 30, 2021
Segment Reporting [Abstract]  
SEGMENT REPORTING

NOTE 7 – SEGMENT REPORTING

 

The Company operates within two (2) reportable segments. The Company’s management evaluates performance and allocates resources based on operational needs and results. Because the Company is a recurring revenue 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. Previously, the Company reported four (4) segments, including Hosted Services, Mobile Services, Lifeline ETC and Lifeline VETC. The Company has made the decision to consolidate and align its segment reporting by the type of service offering and believes this reporting will provide for a more accurate view of its lines of operation. Reportable segments now include Hosted Services and Mobile Services.

 

Hosted Services – This segment includes a suite of hosted CPaaS services within the Apeiron Systems’ cloud platform, including Cloud IVRs, Voicemail, Fax, Call Recording and other services provided with local, toll-free, and international phone numbers. Apeiron also delivers public and private IP network services from its national redundant network backbone including MPLS, Dedicated Internet and LTE Wireless WAN solutions. Additionally, Apeiron’s Cloud Services include Information Data Dips, Software-Defined Wide Area Networking (SD-WAN), and IOT data and device management. These Hosted Services are marketed nationally through Apeiron’s website, independent sales agents, ISOs and SCOs.

 

Mobile Services – This segment includes retail and wholesale cellular voice/text/data services and IOT mobile data services from Apeiron and IM Telecom. Mobile voice/text/data and IOT 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 typically does not own the wireless network infrastructure over which services are provided to its customers. 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. Also included in our Mobile Services segment is the distribution of cellular voice service and mobile data service to low-income American households that qualify for the FCC’s Lifeline voice service program and the FCC’s temporary Emergency Broadband Benefit (“EBB”) mobile data program as part of the federal government’s temporary COVID relief efforts, distributed by IM Telecom under its Infiniti Mobile brand. Even though government programs like Lifeline have existed for many years (since the Telecommunications Act of 1984), these programs, along with newer programs like the temporary EBB program, are subject to change and may have a material impact on our Mobile Services business if changed, reduced, or eliminated.

 

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

 

   Hosted Services   Mobile Services   Total 
For the nine months period ended September 30, 2021               
Revenue  $4,380,547   $4,539,026   $8,919,573 
Gross Margin  $1,600,069   $2,372,718   $3,972,787 
Depreciation and amortization  $619,472   $21,185   $640,657 
Additions to property and equipment   —      —      —   
Gross Margin %   36.5%   52.3%   44.5%

 

For the three months period ended September 30, 2021               
Revenue  $1,588,035   $2,024,826   $3,612,861 
Gross Margin  $559,785   $1,064,452   $1,624,237 
Depreciation and amortization  $206,490   $7,062   $213,552 
Additions to property and equipment   —      —      —   
Gross Margin %   35.3%   52.6%   45.0%

 

For the nine months period ended September 30, 2020               
Revenue  $3,723,640   $3,018,190   $6,741,830 
Gross Margin  $1,359,141   $1,186,161   $2,545,302 
Depreciation and amortization  $645,898   $117,460   $763,358 
Additions to property and equipment   —      —      —   
Gross Margin %   36.5%   39.3%   37.8%

 

For the three months period ended September 30, 2020               
Revenue  $1,533,989   $993,292   $2,527,281 
Gross Margin  $596,249   $305,551   $901,800 
Depreciation and amortization  $220,159   $25,931   $246,090 
Additions to property and equipment   —      —      —   
Gross Margin %   38.9%   30.8%   35.7%