9. SEGMENT INFORMATION

9 Months Ended

Dec. 31, 2015

Segment Reporting, Measurement Disclosures [Abstract]

SEGMENT INFORMATION

9. SEGMENT INFORMATION

ASC 280 Segment Reporting provides annual and interim reporting standards for an enterprise’s business segments and related disclosures about its products, services, geographical areas and major customers. Through September 30, 2015 the Company had two operating segments: (1) patent licensing and (2) products and services. Patent licensing consists of intellectual property revenues from patent portfolios and products and services consisted of sales of the Company’s electronic eVU mobile entertainment device and related content services. The Company terminated providing eVU services in September 2015.

Accounting policies for each of the operating segments are the same as on a consolidated basis.

Reportable segment information for the three and nine months ended December 31, 2015 and 2014 is as follows:

		For the three months ended		For the nine months ended
		December 31,		December 31,
		2015	2014	2015	2014
		$	$	$	$
SEGMENT REVENUES:
Products and services		–	42,995	16,031	147,711
Patent licensing		–	1,078,500	693,500	2,051,034
	Total revenue	–	1,121,495	709,531	2,198,745
SEGMENT COST OF REVENUES:
Products and services		–	79,322	8,256	238,729
Patent licensing and litigation costs		112,500	117,185	337,500	342,774
Contingent legal fees and expenses		5,261	338,630	292,156	642,006
	Total cost of revenues	117,761	535,137	637,912	1,223,509
RECONCILIATION:
Segment income (loss) before corporate costs		(117,761)	586,358	71,619	975,236
Other corporate operating costs		246,908	279,267	910,945	810,562
Other income (expense)		800	–	800	–
	Operating income (loss) before provision for income taxes	(363,869)	307,091	(838,526)	164,674

The Company does not have significant assets employed in the patent license segment and does not track capital expenditures or assets by reportable segment. Consequently, it is not practical to show this information.

Revenue by geographic region is determined based on the location of the Company’s direct customers or distributors for product sales and services. Patent license revenue is considered United States revenue as payments are for licenses for United States operations irrespective of the location of the licensee’s home domicile.

	For the three months ended				For the nine months ended
	December 31,				December 31,
	2015		2014		2015		2014
	$		$		$		$
United States		–		1,078,500		693,500		2,051,034
International		–		42,995		16,031		147,711
Total revenue		–		1,121,495		709,531		2,198,745

Revenues from three licensees comprised 25%, 21% and 14% of revenues for the nine months ended December 31, 2015, with no other licensee or customer accounting for more than 10% of revenues. Revenues from one licensee comprised 16% of revenue for the nine months ended December 31, 2014, with no other licensee or customer accounting for more than 10% of revenues. Accounts receivable from one customer comprised 100% of net accounts receivable at December 31, 2015. Accounts receivable from three customers comprised 66%, 14%, and 11% of net accounts receivable at December 31, 2014.