Segment Information

9 Months Ended

Sep. 30, 2013

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.

During 2012, we entered into settlement and licensing agreements that effectively ended all of our then ongoing intellectual property litigation activities (Note 17).  As a result of these agreements, we will no longer be pursuing patent litigation as an integral funding strategy for our operations.

We will continue to pursue the intellectual property initiatives we have undertaken in conjunction with our relationship with ipCapital, however we believe that these initiatives do not comprise a reporting segment as the intent of these initiatives is to support and leverage our current software products and those in development.

Also, effective for the quarter ended December 31, 2012, we added a new segment (hopTo) and identified that we currently operate our business in two segments; namely GO-Global and hopTo.  Currently, GO-Global is the only segment that generates revenue.

During the three-month period ended September 30, 2013, commensurate with the renaming of our company to hopTo Inc., we reclassified certain corporate-level expenses from the GO-Global segment to the hopTo segment, including those pertaining to our ipCapital initiatives. The impact of such reclassifications appears in the following segment tables for all periods presented.

Segment revenue for the three-month periods ended September 30, 2013 and 2012 was as follows:

					Increase (Decrease)
	2013		2012		Dollars			Percentage
GO-Global	$	1,534,700	$	1,734,100	$	(199,400	)		-11.5	%
hopTo		—		—		—			n/	a
Consolidated Total	$	1,534,700	$	1,734,100	$	(199,400	)		-11.5	%

Segment revenue for the nine-month periods ended September 30, 2013 and 2012 was as follows:

					Increase (Decrease)
	2013		2012		Dollars			Percentage
GO-Global	$	4,545,500	$	4,915,600	$	(370,100	)		-7.5	%
hopTo		—		—		—			n/	a
Consolidated Total	$	4,545,500	$	4,915,600	$	(370,100	)		-7.5	%

Segment loss from continuing operations for the three and nine-month periods ended September 30, 3013 and 2012 was as follows:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2013			2012			2013			2012
GO-Global	$	800		$	413,000		$	(204,500	)	$	(591,000	)
hopTo		(1,609,300	)		(1,067,800	)		(3,318,000	)		(2,835,200	)
Total	$	(1,608,500	)	$	(654,800	)	$	(3,522,500	)	$	(3,426,200	)

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

As of September 30, 2013 segment fixed assets (long-lived assets) were as follows:

			Accumulated
			Depreciation
	Cost Basis		/Amortization			Net
GO-Global	$	1,964,900	$	(1,799,100	)	$	165,800
hopTo		930,800		(79,200	)		851,600
Total from continuing operations		2,895,700		(1,878,300	)		1,017,400
Discontinued operations		2,839,000		(2,839,000	)		—
Unallocated		31,700		—			31,700
Total	$	5,766,400	$	(4,717,300	)	$	1,049,100

We do not maintain any significant long-lived assets outside of the United States.

Products and services provided by the GO-Global segment include all currently available versions of the GO-Global family of products, OEM private labeling kits, software developer’s kits, maintenance contracts, and product training and support. The hopTo segment, which is under development, will provide mobile end-users with a productivity workspace for their mobile devices that will allow users to manage, share, view, and edit their documents, regardless of where they are stored. We launched the first public release of hopTo through Apple’s App Store in April 2013.  The two segments do not engage in cross-segment transactions.

Go-Global software revenue by country for the three-and nine month periods ended September 30, 2013 and 2012 was as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
Revenue by Country	2013		2012		2013		2012
United States	$	677,600	$	668,800	$	1,886,000	$	1,980,100
Germany		84,600		181,000		354,200		533,300
Brazil		161,000		176,400		415,100		444,800
Other Countries		611,500		707,900		1,890,200		1,957,400
Total	$	1,534,700	$	1,734,100	$	4,545,500	$	4,915,600