SEGMENT REPORTING

6 Months Ended

Jun. 30, 2020

11. SEGMENT REPORTING

Operating segments have been determined on the basis of reports reviewed by the Company's Chief Executive Officer (CEO) who is the chief operating decision maker of the Company. The CEO evaluates the business from a geographic perspective, assesses performance and allocates resources on this basis. The reportable segments are as follows:

After the discontinued operations of AEC Southern UK, the Company has two operating segments: AEC New York and AEC BVI.

AEC New York delivers placement, career and other advisory services Its advisory services include language training, admission advisory, on-campus advisory, internship and start-up advisory as well as other advisory services.

AEC BVI delivers customized high school and college placement and career advisory services to Chinese students wishing to study in the U.S. Currently, the revenue of AEC BVI all generated from AEC Southern Shenzhen.

The following table shows an analysis by segment of the assets and liabilities of continuing operations as of June 30, 2020 and December 31,2019:


	June 30, 2020
	AEC New York		AEC BVI		Total
Segment assets and liabilities:
Segment assets
Segment assets from continuing operations	$	5,533,648	$	677,914	$	6,211,562
Segment assets of discontinued operations		—		—		—
Segment assets	$	5,533,648	$	677,914	$	6,211,562
Segment liabilities
Segment liabilities from continuing operations	$	4,799,969	$	1,206,935	$	6,006,904
Segment liabilities of discontinued operations		—		—		—
Segment liabilities	$	4,799,969	$	1,206,935	$	6,006,904


	December 31, 2019
	AEC New York		AEC BVI		Total
Segment assets and liabilities:
Segment assets
Segment assets from continuing operations	$	6,661,058	$	772,810	$	7,433,868
Segment assets of discontinued operations		—		—		—
Segment assets	$	6,661,058	$	772,810	$	7,433,868
Segment liabilities
Segment liabilities from continuing operations	$	5,249,953	$	965,422	$	6,215,375
Segment liabilities of discontinued operations		—		—		—
Segment liabilities	$	5,249,953	$	965,422	$	6,215,375

Revenues from external customers, and gross profit for each business are as follows:


	For the three months ended June 30, 2020
	AEC New York		AEC BVI		Total
Segment revenue:
Placement advisory	$	—	$	41,484	$	41,484
Career advisory		120,500		—		120,500
Student & Family advisory		—		—		—
Other advisory		—		—		—
Total revenue from continued operations	$	120,500	$	41,484	$	161,984
Total revenue from discontinued operations		—		—		—
Gross profit	$	66,560	$	39,707	$	106,267


	For the six months ended June 30, 2020
	AEC New York		AEC BVI		Total
Segment revenue:
Placement advisory	$	—	$	41,484	$	41,484
Career advisory		234,191		—		234,191
Student & Family advisory		—		—		—
Other advisory		507		—		507
Total revenue from continued operations	$	234,698	$	41,484	$	276,182
Total revenue from discontinued operations		—		—		—
Gross profit	$	71,808	$	38,320	$	110,128


	For the three months ended June 30, 2019
	AEC New York		AEC BVI		Total
Segment revenue:
Placement advisory	$	305,000	$	(931)	$	304,069
Career advisory		861,975		—		861,975
Student & Family advisory		—		—		—
Other advisory		3,000		—		3,000
Total revenue from continued operations	$	1,169,975	$	(931)	$	1,169,044
Total revenue from discontinued operations		—		—		—
Gross profit	$	483,685	$	(931)	$	482,754


	For the six months ended June 30, 2019
	AEC New York		AEC BVI		Total
Segment revenue:
Placement advisory	$	798,800	$	33,716	$	832,516
Career advisory		1,817,275		—		1,817,275
Student & Family advisory		487,000		—		487,000
Other advisory		3,000		—		3,000
Total revenue from continued operations	$	3,106,075	$	33,716	$	3,139,791
Total revenue from discontinued operations		—		—		—
Gross profit	$	1,337,388	$	33,716	$	1,371,104

AMERICAN EDUCATION CENTER, INC. 10-Q