8. SEGMENT AND GEOGRAPHIC REPORTING

3 Months Ended

Nov. 30, 2017

Segment Reporting [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, 2017 and 2016 (in thousands, because of rounding numbers may not foot):

November 30, 2017
	Lancaster		Buffalo		North Carolina*		Eliminations			Total
Net revenues	$	4,042	$	1,913	$	1,114	$	–		$	7,069
Income (loss) from operations	$	1,641	$	508	$	415	$	–		$	2,564
Total assets	$	33,033	$	10,429	$	13,990	$	(17,702	)	$	39,750
Capital expenditures	$	25	$	18	$	5	$	–		$	48
Capitalized software costs	$	283	$	159	$	66	$	–		$	507
Depreciation and amortization	$	414	$	87	$	137	$	–		$	638

*Acquired June 1, 2017 

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

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, 2017 and 2016 were as follows (in thousands, because of rounding numbers may not foot):

Three months ended November 30, 2017
	North America		Europe		Asia		South America		Total
Lancaster	$	1,816	$	1,089	$	1,133	$	4	$	4,042
Buffalo		1,913		–		–		–		1,913
North Carolina		811		12		291		–		1,114
Total	$	4,540	$	1,101	$	1,424	$	4	$	7,069

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