NOTE

SEGMENT REPORTING

With the acquisition of Wainwright Holdings, Gourmet Foods, Ltd., Brigadier, and the launch of the Original Sprout business unit of Kahnalytics, the Company has identified

four

segments for its products and services; U.S.A. investment fund management, U.S.A. beauty products, New Zealand food industry and Canada security alarm systems. Our reportable segments are business units located in different global regions. The Company’s operations in the U.S.A. include the manufacture and wholesale distribution of hair and skin care products by Original Sprout and the income derived from management of various investment funds by our subsidiary Wainwright. In New Zealand operations include the production, packaging and distribution on a commercial scale of gourmet meat pies and related bakery confections through our wholly owned subsidiary Gourmet Foods, Ltd. and in Canada we provide security alarm system installation and maintenance services to residential and commercial customers sold through our wholly owned subsidiary Brigadier. Separate management of each segment is required because each business unit is subject to different operational issues and strategies due to their particular regional location. The Company accounts for intra-company sales and expenses as if the sales or expenses were to

third

parties and eliminates them in the consolidation. Amounts are adjusted for currency translation as of the balance sheet date and presented in US dollars.

The following table presents a summary of identifiable assets as of

September 30, 2019

and

June 30, 2019:

	September 30, 2019		June 30, 2019
Identifiable assets:
Corporate headquarters	$	4,113,432	$	2,730,805
U.S.A.: beauty products		4,079,035		3,780,278
U.S.A.: fund management		9,817,863		10,878,549
New Zealand: food industry		1,899,700		1,838,800
Canada: security systems		2,372,569		2,025,176
Consolidated total	$	22,282,599	$	21,253,608

The following table presents a summary of operating information for the

three

months ended

September 30:

	2019			2018
Revenues from unaffiliated customers:
U.S.A. : beauty products	$	963,673		$	902,328
U.S.A. : investment fund management		3,040,569			4,222,984
New Zealand : food industry		1,250,331			1,192,996
Canada : security systems		773,277			858,651
Consolidated total	$	6,027,850		$	7,176,959

Net (loss) income:
Corporate headquarters	$	(438,258	)	$	(392,912	)
U.S.A. : beauty products		80,914			108,391
U.S.A. : investment fund management		208,538			414,266
New Zealand : food industry		101,253			13,664
Canada : security systems		102,445			142,545
Consolidated total	$	54,892		$	285,954

The following table presents a summary of net capital expenditures for the

three

month periods ended

September 30:

	2019		2018
Capital Expenditures
U.S.A.: corporate headquarters	$	-	$	-
U.S.A.: beauty products		2,995		1,386
U.S.A.: fund management		-		-
New Zealand: food industry		33,376		13,030
Canada: security systems		609,446		(12,836	)
Consolidated	$	645,817	$	1,580

The following table represents the property, plant and equipment in use at each of the Company's locations as of

September 30, 2019

and

June 30, 2019:

	As of September 30 , 2019			As of June 30, 2019

Asset Location
Corporate headquarters	$	14,305		$	14,305
U.S.A. : beauty products		13,739			10,745
U.S.A. : investment fund management		-			-
New Zealand : food industry		1,582,168			1,659,186
Canada : security systems		954,033			348,435
Total All Locations		2,564,245			2,032,671
Less accumulated depreciation		(1,264,379	)		(1,275,657	)
Net property, plant and equipment	$	1,299,866		$	757,014