Segment Information

6 Months Ended

Jun. 30, 2011

Segment Information [Abstract]

Segment Information

 12.  Segment Information

FASB has established guidance for reporting information about operating segments that require segmentation based on the Company’s internal organization and reporting of revenue and operating income, based on internal accounting methods. The Company’s financial reporting systems present various data for management to operate the business prepared in methods consistent with such guidance. The Company’s segments were defined in order to allocate resources internally. Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker, or the decision making group, in deciding how to allocate resources and in assessing performance. The Company’s chief operating decision maker is its Chief Executive Officer. The Company has determined that it operates its business in two segments: software and intellectual property.

Segment revenue for the three and six-month periods ended June 30, 2011 and 2010 was as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
Revenue	2011		2010		2011		2010
Software	$	1,638,500	$	1,874,500	$	3,101,200	$	3,356,000
Intellectual Property		—		250,000		—		650,000
Consolidated Revenue	$	1,638,500	$	2,124,500	$	3,101,200	$	4,006,000

The Company does not analyze revenue based on the geographical location of its customers as to do so would be impractical.

Segment income (loss) from operations for the three and six-month periods ended June 30, 2011 and 2010 was as follows:

11

	Three Months Ended June 30,						Six Months Ended June 30,
Income (Loss) From Operations	2011			2010			2011			2010
Software	$	(156,100	)	$	196,100		$	(366,900	)	$	(232,200	)
Intellectual Property		(150,200	)		(97,200	)		(308,500	)		(110,600	)
Consolidated Income (Loss) From Operations	$	(306,300	)	$	98,900		$	(675,400	)	$	(342,800	)

The Company does not allocate interest and other income, interest and other expense or income tax to its segments.

As of June 30, 2011, segment long-lived assets were as follows:

Long-Lived Assets	Cost Basis		Accumulated Depreciation /Amortization			Net, as Reported
Software	$	1,803,800	$	(1,374,000	)	$	429,800
Intellectual Property		2,839,000		(2,839,000	)		—
Unallocated		5,600		—			5,600
	$	4,684,400	$	(4,213,000	)	$	435,400

The Company does not allocate certain other long-lived assets, primarily cash deposits, to its segments.

Products and services provided by the software segment include all currently available versions of GO-Global Host, GO-Global Cloud, GO-Global Client, including iPad Client, OEM private labeling kits, software developer’s kits, maintenance contracts and product training and support. The intellectual property segment provides licenses to the Company’s intellectual property. The Company’s two segments do not engage in cross-segment transactions.