| SEGMENT REPORTING |
NOTE 31 — SEGMENT REPORTING
Each of the Company’s business segments offer different, but synergistic products and services, and are managed separately. Discrete financial information is available for each segment, and segment performance is evaluated based on operating results. Adjustments to reconcile segment results to consolidated results are included under the caption “Intercompany” which eliminates the effect of transactions between the segments.
The Company’s business consists of two reportable business segments:
|
➢ |
Education — entrepreneur education, management consultancy and business development tools. |
|
➢ |
Campus — resorts, retreats and co-working cafes for entrepreneurs. |
The detailed segment information of the Company is as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Periods Ended December. 31 |
|
|
2021 |
|
2020 |
|
|
Education |
|
Campus |
|
Total |
|
Education |
|
Campus |
|
Total |
Revenues |
|
$ |
9,676,052 |
|
$ |
3,102,210 |
|
$ |
12,778,262 |
|
$ |
5,618,210 |
|
$ |
2,015,566 |
|
$ |
7,633,776 |
Depreciation and Amortization (1)(2) |
|
$ |
426,740 |
|
$ |
1,148,173 |
|
$ |
1,574,913 |
|
$ |
616,195 |
|
$ |
954,398 |
|
$ |
1,570,593 |
(Loss) income from Operations |
|
$ |
(2,153,975) |
|
$ |
(2,014,508) |
|
$ |
(4,168,484) |
|
$ |
306,710 |
|
$ |
(2,987,559) |
|
$ |
(2,680,849) |
Net Profit or Loss |
|
$ |
(2,252,794) |
|
$ |
(2,365,255) |
|
$ |
(4,618,050) |
|
$ |
(53,722) |
|
$ |
(3,069,347) |
|
$ |
(3,123,069) |
Interest Expense, net |
|
$ |
98,819 |
|
$ |
350,747 |
|
$ |
449,566 |
|
$ |
107,833 |
|
$ |
746,150 |
|
$ |
853,983 |
Capital Expenditures |
|
$ |
— |
|
|
— |
|
$ |
— |
|
$ |
437,764 |
|
$ |
233,823 |
|
$ |
671,587 |
Total Property and Equipment, net |
|
$ |
15,442 |
|
$ |
6,760,674 |
|
$ |
6,776,116 |
|
$ |
10,881 |
|
$ |
7,586,109 |
|
$ |
7,596,990 |
Total Assets |
|
$ |
5,122,967 |
|
$ |
12,472,440 |
|
$ |
17,595,407 |
|
$ |
3,336,242 |
|
$ |
13,621,471 |
|
$ |
16,957,713 |
Total Liabilities |
|
$ |
3,589,315 |
|
$ |
6,020,096 |
|
$ |
9,609,411 |
|
$ |
5,852,323 |
|
$ |
3,399,301 |
|
$ |
9,251,624 |
| (1) |
Depreciation and amortization related to the Education segment is included in cost of revenue in the accompanying statements of operations. |
| (2) |
Depreciation and amortization related to the Campus segment Consists of $1,109,309 (2020-$937,773) which is included in cost of revenue and $38,864 (2020-$47,537) which is included in operating expenses in the accompanying statements of operations.
|
A summary of revenue by geographic location appears below:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2021 |
|
2020 |
|
|
Education |
|
Campus |
|
Total |
|
Education |
|
Campus |
|
Total |
Europe / Middle East / Africa |
|
$ |
3,630,760 |
|
$ |
1,554,828 |
|
$ |
5,185,588 |
|
$ |
2,068,037 |
|
$ |
1,010,699 |
|
$ |
3,078,736 |
Asia / Pacific |
|
|
3,346,691 |
|
|
1,547,382 |
|
|
4,894,073 |
|
|
1,954,842 |
|
|
1,004,867 |
|
|
2,959,709 |
North America / South America |
|
|
2,698,601 |
|
|
— |
|
|
2,698,601 |
|
|
1,595,331 |
|
|
— |
|
|
1,595,331 |
|
|
$ |
9,676,052 |
|
$ |
3,102,210 |
|
$ |
12,778,262 |
|
$ |
5,618,210 |
|
$ |
2,015,566 |
|
$ |
7,633,776 |
A summary of non-current assets (other than financial instruments) by geographic location appears below:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Years Ended December 31, |
|
|
2021 |
|
2020 |
|
|
Education |
|
Campus |
|
Total |
|
Education |
|
Campus |
|
Total |
Europe / Middle East / Africa |
|
$ |
602 |
|
$ |
8,476,791 |
|
|
8,477,393 |
|
$ |
802 |
|
$ |
503,853 |
|
$ |
504,655 |
Asia / Pacific |
|
|
— |
|
|
2,120,102 |
|
|
2,120,102 |
|
|
499,772 |
|
|
10,500,388 |
|
|
11,000,159 |
North America / South America |
|
|
501,750 |
|
|
— |
|
|
501,750 |
|
|
516,296 |
|
|
— |
|
|
516,296 |
|
|
$ |
502,352 |
|
$ |
10,596,893 |
|
|
11,099,245 |
|
$ |
1,016,870 |
|
$ |
11,004,240 |
|
$ |
12,021,110 |
|
NOTE 33 — SEGMENT REPORTING
Each of the Company’s business segments offer different, but synergistic products and services, and are managed separately. Discrete financial information is available for each segment, and segment performance is evaluated based on operating results. Adjustments to reconcile segment results to consolidated results are included under the caption “Intercompany” which eliminates the effect of transactions between the segments.
The Company’s business consists of two reportable business segments:
|
● |
Education — entrepreneur education, management consultancy and business development tools. |
|
● |
Campus — resorts, retreats and co-working cafes for entrepreneurs. |
The detailed segment information of the Company is as follows:
The detailed segment information of the Company is as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Years Ended December 31, |
|
|
2020 |
|
2019 |
|
|
Education |
|
Campus |
|
Total |
|
Education |
|
Campus |
|
Total |
Revenues |
|
$ |
5,618,210 |
|
$ |
2,015,566 |
|
$ |
7,633,776 |
|
$ |
5,517,061 |
|
$ |
4,431,996 |
|
$ |
9,949,057 |
Depreciation and Amortization, as restated (1)(2) |
|
$ |
616,195 |
|
$ |
954,398 |
|
$ |
1,570,593 |
|
|
276,798 |
|
$ |
985,310 |
|
$ |
1,262,108 |
(Loss) income from Operations, as restated |
|
$ |
306,710 |
|
$ |
(2,987,559) |
|
$ |
(2,680,849) |
|
$ |
(1,205,784) |
|
$ |
166,911 |
|
|
(1,038,873) |
Net (Loss) income as restated |
|
$ |
(67,609) |
|
$ |
(3,124,705) |
|
$ |
(3,192,314) |
|
$ |
(1,205,785) |
|
$ |
(24,534) |
|
$ |
(1,230,319) |
Interest Expense, net |
|
$ |
107,833 |
|
$ |
746,150 |
|
$ |
853,983 |
|
$ |
— |
|
$ |
863,871 |
|
$ |
863,871 |
Capital Expenditures |
|
$ |
437,764 |
|
$ |
233,823 |
|
$ |
671,587 |
|
$ |
423,959 |
|
$ |
636,165 |
|
$ |
1,060,124 |
Total Property and Equipment, net, as restated |
|
$ |
10,881 |
|
$ |
7,586,109 |
|
$ |
7,596,990 |
|
$ |
11,519 |
|
$ |
7,387,893 |
|
$ |
7,399,412 |
Total Assets, as restated |
|
$ |
3,336,242 |
|
$ |
13,621,471 |
|
$ |
16,957,713 |
|
$ |
3,523,344 |
|
$ |
14,036,804 |
|
$ |
17,560,148 |
Total Liabilities, as restated |
|
$ |
5,852,323 |
|
$ |
3,399,301 |
|
$ |
9,251,624 |
|
$ |
4,468,709 |
|
$ |
7,760,742 |
|
$ |
12,229,451 |
| (1) |
Depreciation and amortization related to the Education segment is included in cost of revenue in the accompanying statements of operations. |
| (2) |
Depreciation and amortization related to the Campus segment consists of $913,492 (2019-$937,773) which is included in cost of revenue and $40,906 (2019-$47,537) which is included in operating expenses in the accompanying statements of operations.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Years Ended December 31, |
|
|
2020 |
|
2019 |
|
|
Education |
|
Campus |
|
Total |
|
Education |
|
Campus |
|
Total |
Revenues |
|
$ |
5,618,210 |
|
$ |
2,015,566 |
|
$ |
7,633,776 |
|
$ |
5,517,061 |
|
$ |
4,431,996 |
|
$ |
9,949,057 |
Depreciation and Amortization, as previously reported |
|
|
914,195 |
|
$ |
1,226,131 |
|
$ |
2,140,326 |
|
$ |
373,465 |
|
$ |
985,310 |
|
$ |
1,358,775 |
Adjustments (Note 4)(1) |
|
|
(298,000) |
|
|
(271,733) |
|
|
(569,733) |
|
|
(96,667) |
|
|
— |
|
|
(96,667) |
Depreciation and Amortization, as restated |
|
|
616,195 |
|
$ |
954,398 |
|
$ |
1,570,593 |
|
|
276,798 |
|
$ |
985,310 |
|
$ |
1,262,108 |
(Loss) income from Operations, as previously reported |
|
|
8,710 |
|
$ |
(3,259,292) |
|
$ |
(3,250,582) |
|
$ |
(1,302,451) |
|
$ |
166,911 |
|
$ |
(1,135,540) |
Adjustments (Note 4) |
|
|
298,000 |
|
|
271,733 |
|
|
569,733 |
|
|
96,667 |
|
|
— |
|
|
96,667 |
(Loss) income from Operations, as restated |
|
|
306,710 |
|
$ |
(2,987,559) |
|
$ |
(2,680,849) |
|
$ |
(1,205,784) |
|
$ |
166,911 |
|
|
(1,038,873) |
Net (Loss), as previously reported |
|
$ |
(135,636) |
|
$ |
(3,341,080) |
|
$ |
(3,476,716) |
|
$ |
(1,286,019) |
|
|
(24,534) |
|
$ |
(1,310,553) |
Adjustments (Note 4) |
|
|
298,000 |
|
|
271,733 |
|
|
569,733 |
|
|
96,667 |
|
|
— |
|
|
96,667 |
Adjustments (Note 4 - income tax) |
|
|
(229,973) |
|
|
(55,358) |
|
|
(285,331) |
|
|
(16,433) |
|
|
— |
|
|
(16,433) |
Net (Loss), as restated |
|
|
(67,609) |
|
$ |
(3,124,705) |
|
$ |
(3,192,314) |
|
$ |
(1,205,785) |
|
$ |
(24,534) |
|
$ |
(1,230,319) |
Interest Expense, net |
|
$ |
107,833 |
|
$ |
746,150 |
|
$ |
853,983 |
|
$ |
— |
|
$ |
863,871 |
|
$ |
863,871 |
Capital Expenditures |
|
$ |
437,764 |
|
$ |
233,823 |
|
$ |
671,587 |
|
$ |
423,959 |
|
$ |
636,165 |
|
$ |
1,060,124 |
Total Property and Equipment, net, as previously reported |
|
|
10,881 |
|
$ |
7,239,965 |
|
$ |
7,250,846 |
|
$ |
11,519 |
|
$ |
7,387,893 |
|
$ |
7,399,412 |
Adjustments (Note 4) |
|
|
— |
|
|
346,144 |
|
|
346,144 |
|
|
— |
|
|
— |
|
|
— |
Total Property and Equipment, net, as restated |
|
|
10,881 |
|
$ |
7,586,109 |
|
$ |
7,596,990 |
|
$ |
11,519 |
|
$ |
7,387,893 |
|
$ |
7,399,412 |
Total Assets, as previously reported |
|
$ |
12,030,161 |
|
$ |
41,755,288 |
|
$ |
53,785,449 |
|
$ |
12,422,243 |
|
$ |
19,160,141 |
|
$ |
31,582,385 |
Adjustments (Note 4 - Property and equipment) |
|
|
— |
|
|
346,144 |
|
|
346,144 |
|
|
— |
|
|
— |
|
|
— |
Adjustments (Note 4 - Goodwill) |
|
|
(3,655,567) |
|
|
(14,110,257) |
|
|
(17,765,824) |
|
|
(3,655,567) |
|
|
(5,123,337) |
|
|
(8,778,904) |
Adjustments (Note 4 - Intangible assets) |
|
|
(4,945,333) |
|
|
(14,697,982) |
|
|
(19,643,315) |
|
|
(5,243,333) |
|
|
— |
|
|
(5,243,333) |
Adjustments (Foreign currency translation) |
|
|
— |
|
|
235,259 |
|
|
235,259 |
|
|
— |
|
|
— |
|
|
— |
Total Assets, as restated |
|
$ |
3,429,261 |
|
$ |
13,528,452 |
|
$ |
16,957,713 |
|
$ |
3,523,343 |
|
$ |
14,036,804 |
|
$ |
17,560,147 |
Total Liabilities, as previously reported |
|
$ |
5,673,010 |
|
$ |
6,870,135 |
|
$ |
12,543,145 |
|
$ |
4,468,709 |
|
$ |
8,341,876 |
|
$ |
12,810,585 |
Adjustments (Note 4 - deferred tax liability) |
|
|
229,973 |
|
|
(3,521,494) |
|
|
(3,291,521) |
|
|
— |
|
|
(581,134) |
|
|
(581,134) |
Total Liabilities, as restated |
|
$ |
5,902,983 |
|
$ |
3,348,641 |
|
$ |
9,251,624 |
|
$ |
4,468,709 |
|
$ |
7,760,742 |
|
$ |
12,229,451 |
| (1) |
Depreciation and amortization adjustments are adjusted to cost of revenue in the accompanying statements of operations. |
A summary of revenue by geographic location appears below:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2020 |
|
2019 |
|
|
Education |
|
Campus |
|
Total |
|
Education |
|
Campus |
|
Total |
Europe / Middle East / Africa |
|
$ |
2,068,037 |
|
$ |
1,010,699 |
|
$ |
3,078,736 |
|
$ |
1,818,859 |
|
$ |
1,951,769 |
|
$ |
3,770,628 |
Asia / Pacific |
|
|
1,954,842 |
|
|
1,004,867 |
|
|
2,959,709 |
|
|
2,108,503 |
|
|
2,480,027 |
|
|
4,588,530 |
North America / South America |
|
|
1,595,331 |
|
|
— |
|
|
1,595,331 |
|
|
1,589,899 |
|
|
— |
|
|
1,589,899 |
|
|
$ |
5,618,210 |
|
$ |
2,015,566 |
|
$ |
7,633,776 |
|
$ |
5,517,261 |
|
$ |
4,431,796 |
|
$ |
9,949,057 |
A summary of non-current assets (other than financial instruments) by geographic location appears below:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Years Ended December 31, |
|
|
2020 |
|
2019 |
|
|
As restated |
|
As restated |
|
|
Education |
|
Campus |
|
Total |
|
Education |
|
Campus |
|
Total |
Europe / Middle East / Africa |
|
$ |
802 |
|
$ |
503,853 |
|
$ |
504,655 |
|
$ |
— |
|
$ |
7,786,240 |
|
$ |
7,786,240 |
Asia / Pacific |
|
|
499,772 |
|
|
10,500,387 |
|
|
11,000,159 |
|
|
962,424 |
|
|
3,005,679 |
|
|
3,968,103 |
North America / South America |
|
|
516,296 |
|
|
— |
|
|
516,296 |
|
|
— |
|
|
— |
|
|
— |
|
|
$ |
1,016,870 |
|
$ |
11,004,240 |
|
$ |
12,021,110 |
|
$ |
962,424 |
|
$ |
10,791,919 |
|
$ |
11,754,343 |
|