9. SEGMENT AND GEOGRAPHIC REPORTING

3 Months Ended

Nov. 30, 2016

Segments, Geographical Areas [Abstract]

SEGMENT AND GEOGRAPHIC REPORTING

We account for segments and geographic revenues in accordance with guidance issued by the FASB. Our reportable segments are strategic business units that offer different products and services.

Results for each segment and consolidated results are as follows for the three ended November 30, 2016 and 2015 (in thousands):

November 30, 2016
	Lancaster		Buffalo		Eliminations			Total
Net revenues	$	3,695	$	1,723		–		$	5,418
Income (loss) from operations		1,489	$	439				$	1,928
Total assets		26,432	$	9,308		(7,238	)	$	28,503
Capital expenditures		21	$	37				$	58
Capitalized software costs		212	$	21				$	234
Depreciation and amortization		417	$	99				$	516

November 30, 2015
	Lancaster		Buffalo		Eliminations			Total
Net revenues	$	3,410	$	1,428		–		$	4,838
Income (loss) from operations		1,424	$	304				$	1,728
Total assets		26,002	$	9,194		(7,238	)	$	27,958
Capital expenditures		1	$	0				$	1
Capitalized software costs		223	$	44				$	267
Depreciation and amortization		395	$	91				$	486

In addition, the Company allocates revenues to geographic areas based on the locations of its customers. Geographical revenues for the three months ended November 30, 2016 and 2015 were as follows (in thousands, because of rounding numbers may not foot):

Three months ended November 30, 2016
	North America		Europe		Asia		South America		Total
Lancaster	$	1,973	$	721	$	1,001	$	–	$	3,695
Buffalo		1,723		–		–		–		1,723
Total	$	3,696	$	721	$	1,001	$	–	$	5,418

Three months ended November 30, 2015
	North America		Europe		Asia		South America		Total
Lancaster	$	1,462	$	914	$	1,033	$	1	$	3,410
Buffalo		1,428		–		–		–		1,428
Total	$	2, 890	$	914	$	1,033	$	1	$	4,838