SEGMENT REPORTING

6 Months Ended

Jun. 30, 2022

Segment Reporting [Abstract]

SEGMENT REPORTING

NOTE 8 – SEGMENT REPORTING

The Company operates within two (2) reportable segments. The Company’s management evaluates performance and allocates resources based on the profit or loss from operations. 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.

The reportable segments consist of 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, SD-WAN and IoT data and device management. These Hosted Services are marketed nationally through Apeiron’s website, its own sales staff, independent sales agents, and ISOs.

Mobile Services – This segment includes retail and wholesale cellular voice/text/data services and IoT mobile data services through our subsidiaries Apeiron Systems 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 by IM Telecom under its Infiniti Mobile brand to low-income American households that qualify for the FCC’s Lifeline voice service program and the FCC’s ACP mobile data program. Even though government programs like Lifeline have existed since 1985, these programs, along with newer programs like the ACP 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 six months period ended June 30, 2022
Revenue	$	2,842,594		$	6,508,360		$	9,350,954
Gross Profit	$	890,493		$	1,199,334		$	2,089,827
Depreciation and amortization	$	1,877		$	4,299		$	6,176
Additions to property and equipment	$	—		$	—		$	—
Gross Margin %		31.3	%		18.4	%		22.3	%

For the three months period ended June 30, 2022
Revenue	$	1,428,936		$	3,694,161		$	5,123,097
Gross Profit	$	456,076		$	(13,509	)	$	442,567
Depreciation and amortization	$	574		$	1,485		$	2,059
Additions to property and equipment	$	—		$	—		$	—
Gross Margin %		31.9	%		-0.4	%		8.6	%

For the six months period ended June 30, 2021
Revenue	$	2,792,512		$	2,514,199		$	5,306,711
Gross Profit	$	1,040,283		$	1,308,266		$	2,348,549
Depreciation and amortization	$	224,752		$	202,353		$	427,105
Additions to property and equipment	$	—		$	—		$	—
Gross Margin %		37.3	%		52.0	%		44.3	%

For the three months period ended June 30, 2021
Revenue	$	1,440,407		$	1,473,466		$	2,913,873
Gross Profit	$	554,241		$	883,147		$	1,437,388
Depreciation and amortization	$	207,067		$	6,485		$	213,552
Additions to property and equipment	$	—		$	—		$	—
Gross Margin %		38.5	%		59.9	%		49.3	%