Segment Information

6 Months Ended

Jun. 30, 2012

Segment Information [Abstract]

Segment Information

15.  Segment Information

FASB has established guidance for reporting information about operating segments that require segmentation based on our internal organization and reporting of revenue and operating income, based on internal accounting methods. Our financial reporting systems present various data for management to operate the business prepared in methods consistent with such guidance. Our 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. Our chief operating decision maker is our Interim Chief Executive Officer. We have determined that we operate our business in two segments: software and intellectual property.

Segment revenue for the three and six-month periods ended June 30, 2012 and 2011 was as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
Revenue	2012		2011		2012		2011
Software	$	1,570,900	$	1,638,500	$	3,181,500	$	3,101,200
Intellectual Property		-		-		-		-
Consolidated Revenue	$	1,570,900	$	1,638,500	$	3,181,500	$	3,101,200

We have completed an extensive review and analysis of our revenue transactions for the six-year period ended June 30, 2012, including our deferred revenue transactions, in order to identify revenue based on the geographical location of our customers. Such revenue for the three and six-month periods ended June 30, 2012 and 2011 was as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
Revenue by Country	2012		2011		2012		2011
United States	$	556,100	$	489,200	$	1,313,100	$	1,183,000
Germany		210,400		86,400		443,600		130,500
Brazil		182,000		159,100		268,400		287,300
Sweden		138,700		162,000		279,700		312,900
Other Countries		483,700		741,800		876,700		1,187,500
Total	$	1,570,900	$	1,638,500	$	3,181,500	$	3,101,200

Segment loss from operations for the three-month periods ended June 30, 2012 and 2011 was as follows:

	Three Months Ended June 30,						Six Months Ended June 30,
Loss From Operations	2012			2011			2012			2011
Software	$	(1,440,000	)	$	(156,100	)	$	(2,381,100	)	$	(366,900	)
Intellectual Property		(222,800	)		(150,200	)		(511,600	)		(308,500	)
Consolidated Loss From Operations	$	(1,662,800	)	$	(306,300	)	$	(2,892,700	)	$	(675,400	)

We do not allocate interest and other income, interest and other expense or income tax to our segments.

As of June 30, 2012, segment long-lived assets were as follows:

Long-Lived Assets	Cost Basis		Accumulated Depreciation /Amortization			Net, as Reported
Software	$	2,159,800	$	(1,555,500	)	$	604,300
Intellectual Property		2,839,000		(2,839,000	)		-
Unallocated		30,800		-			30,800
	$	5,029,600	$	(4,394,500	)	$	635,100

We do not allocate certain other long-lived assets, primarily cash deposits, to our segments.

Products and services provided by the software segment include all currently available versions of GO-Global Host, 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 our intellectual property. Our two segments do not engage in cross-segment transactions.