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 recently incorporated subsidiary, Marygold & Co., has

not

begun operations so the accounts have been consolidated with those of corporate headquarters and

not

yet identified as a separate segment. 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

December 31, 2019

and

June 30, 2019

	December 31, 2019		June 30, 2019
Identifiable assets:
Corporate headquarters	$	3,675,454	$	2,730,805
U.S.A.: beauty products		3,986,334		3,780,278
U.S.A.: fund management		9,924,749		10,878,549
New Zealand: food industry		2,143,664		1,838,800
Canada: security systems		2,278,899		2,025,176
Consolidated total	$	22,009,100	$	21,253,608

The following table presents a summary of operating information for the

three

months ended

December 31

	Three Months Ended December 31, 2019			Three Months Ended December 31, 2018
Revenues from external customers:
U.S.A. : beauty products	$	902,928		$	897,457
U.S.A. : investment fund management - related party		2,839,718			3,939,004
New Zealand : food industry		1,320,357			1,145,410
Canada : security systems		733,533			714,069
Consolidated total	$	5,796,536		$	6,695,940

Net (loss) income:
Corporate headquarters	$	(315,943	)	$	(334,703	)
U.S.A. : beauty products		(57,765	)		98,893
U.S.A. : investment fund management - related party		77,830			220,648
New Zealand : food industry		156,235			24,868
Canada : security systems		64,729			53,455
Consolidated total	$	(74,914	)	$	63,161

The following table presents a summary of operating information for the

six

months ended

December 31

	Six Months Ended December 31, 2019			Six Months Ended December 31, 2018
Revenues from external customers:
U.S.A. : beauty products	$	1,866,601		$	1,799,786
U.S.A. : investment fund management - related party		5,880,287			8,161,988
New Zealand : food industry		2,570,334			2,339,704
Canada : security systems		1,506,753			1,561,100
Consolidated total	$	11,823,975		$	13,862,578

Net (loss) income:
Corporate headquarters	$	(754,200	)	$	(675,564	)
U.S.A. : beauty products		23,149			207,285
U.S.A. : investment fund management - related party		286,368			579,940
New Zealand : food industry		257,487			41,453
Canada : security systems		167,174			195,553
Consolidated total	$	(20,022	)	$	348,667

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

three

month periods ended

December 31

	Three Months Ended December 31, 2019		Three Months Ended December 31, 2018
Capital Expenditures
U.S.A.: corporate headquarters	$	-	$	-
U.S.A.: beauty products		919		1,551
U.S.A.: fund management		-		-
New Zealand: food industry		13,742		11,087
Canada: security systems		13,376		(6,668	)
Consolidated	$	28,037	$	5,970

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

six

month periods ended

December 31

	Six Months Ended December 31, 2019		Six Months Ended December 31, 2018
Capital Expenditures
U.S.A.: corporate headquarters	$	-	$	-
U.S.A.: beauty products		3,914		2,937
U.S.A.: fund management		-		-
New Zealand: food industry		47,118		22,016
Canada: security systems		622,823		(15,969	)
Consolidated	$	673,855	$	8,984

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

December 31, 2019

and

June 30, 2019

	As of December 31, 2019			As of June 30, 2019

Asset Location
Corporate headquarters	$	14,305		$	14,305
U.S.A. : beauty products		14,658			10,745
U.S.A. : investment fund management		-			-
New Zealand : food industry		1,710,133			1,659,186
Canada : security systems		974,314			348,435
Total All Locations		2,713,410			2,032,671
Less accumulated depreciation		(1,414,955	)		(1,275,657	)
Net property, plant and equipment	$	1,298,455		$	757,014