BUSINESS SEGMENT INFORMATION

3 Months Ended

Mar. 31, 2013

Segment Reporting Disclosure [Text Block]

11. BUSINESS SEGMENT INFORMATION

FASB requires that companies report separately in the financial statements certain financial and descriptive information about segment revenues, income and assets. The method for determining what information is reported is based on the way that management organizes the operating segments for making operational decisions and assessments of financial performance. In computing operating loss and net loss for the DVD services business and the ATM services business, no allocations of general corporate expenses have been made and these are included in the Corporate Support services business.

The following table summarizes our revenues, gross profit, SG&A, stock compensation expenses, depreciation and amortization, impairment of assets and long-lived assets, operating loss, net loss and Adjusted EBITDA by segment for the periods indicated below.

EBITDA (a non-GAAP measure) is defined as earnings before net interest, taxes, depreciation and amortization. Adjusted EBITDA is defined as EBITDA from operations before stock compensation expense, gain on sale of assets, and other non-operating expense.

	For the Three Months Ended
	March 31, 2013			March 31, 2012

Revenues:
ATM Services	$	6,087,456		$	7,229,068
DVD Services - The Exchange		926,290			1,067,232
Corporate Support		-			-
Consolidated revenues	$	7,013,746		$	8,296,300

Gross profit:
ATM Services	$	1,517,501		$	2,433,364
DVD Services - The Exchange		162,126			226,128
Corporate Support		-			-
Consolidated gross profit	$	1,679,627		$	2,659,492

SG&A:
ATM Services	$	1,006,660		$	1,061,579
DVD Services - The Exchange		125,014			185,006
Corporate Support		313,165			488,388
Consolidated SG&A	$	1,444,839		$	1,734,973

Stock compensation expense:
ATM Services	$	-		$	-
DVD Services - The Exchange		-			-
Corporate Support		24,827			17,195
Consolidated stock compensation expense	$	24,827		$	17,195

Depreciation & Amortization:
ATM Services	$	580,361		$	599,678
DVD Services - The Exchange		177,581			265,764
Corporate Support		76,321			76,587
Consolidated depreciation & amortization	$	834,263		$	942,029

Impairment of assets and long-lived assets:
ATM Services	$	9,860,429		$	-
DVD Services - The Exchange		997,726			-
Corporate Support		-			-
Consolidated impairment of assets and long-lived assets	$	10,858,155		$	-

Operating loss:
ATM Services	$	(9,929,949	)	$	772,107
DVD Services - The Exchange		(1,138,195	)		(224,642	)
Corporate Support		(414,313	)		(582,170	)
Consolidated operating loss	$	(11,482,457	)	$	(34,705	)

Net loss:
ATM Services	$	(9,957,097	)	$	742,332
DVD Services - The Exchange		(1,138,195	)		(205,371	)
Corporate Support		(1,015,319	)		(828,269	)
Consolidated net loss	$	(12,110,611	)	$	(291,308	)

Adjusted EBITDA:
ATM Services	$	510,841		$	1,371,785
DVD Services - The Exchange		37,112			41,122
Corporate Support		(313,165	)		(488,388	)
Consolidated Adjusted EBITDA	$	234,788		$	924,519

The following table summarizes total assets by segment for the periods indicated:

	March 31, 2013		December 31, 2012
Assets:
ATM Services	$	8,169,343	$	19,274,393
DVD Services		1,000,000		1,173,244
Consolidated assets	$	9,169,343	$	20,447,637

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

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-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 131

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

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+ Details

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