9. SEGMENT AND GEOGRAPHIC REPORTING

6 Months Ended

Feb. 28, 2019

Segment Reporting [Abstract]

SEGMENT AND GEOGRAPHIC REPORTING

NOTE 9: 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-month periods ended February 28, 2019 and 2018 (in thousands, because of rounding numbers may not foot):

Three months ended February 28, 2019
	Lancaster		Buffalo		North Carolina		Eliminations			Total
Net revenues	$	5,008	$	2,292	$	1,172	$	–		$	8,471
Income (loss) from operations		1,963		402		365		–			2,730
Total assets		36,231		9,973		14,859		(17,702	)		43,361
Capital expenditures		1		17		14		–			32
Capitalized software costs		494		36		45		–			575
Depreciation and amortization		464		89		144		–			697

Three months ended February 28, 2018
	Lancaster		Buffalo		North Carolina		Eliminations			Total
Net revenues	$	4,552	$	1,867	$	938	$	–		$	7,357
Income (loss) from operations		1,893		329		195		–			2,417
Total assets		33,923		10,582		14,263		(17,702	)		41,066
Capital expenditures		4		5		7		–			16
Capitalized software costs		409		142		89		–			640
Depreciation and amortization		444		103		143		–			690

Six months ended February 28, 2019
	Lancaster		Buffalo		North Carolina		Eliminations			Total
Net revenues	$	9,373	$	4,357	$	2,278	$	–		$	16,008
Income (loss) from operations		3,570		706		541		–			4,817
Total assets		36,231		9,973		14,859		(17,702	)		43,361
Capital expenditures		3		17		14		–			33
Capitalized software costs		784		66		90		–			940
Depreciation and amortization		926		180		286		–			1,393

Six months ended February 28, 2018
	Lancaster		Buffalo		North Carolina		Eliminations			Total
Net revenues	$	8,593	$	3,780	$	2,052	$	–		$	14,425
Income (loss) from operations		3,534		837		610		–			4,981
Total assets		33,923		10,582		14,263		(17,702	)		41,066
Capital expenditures		29		22		13		–			64
Capitalized software costs		692		301		155		–			1,148
Depreciation and amortization		858		190		280		–			1,328

In addition, the Company allocates revenues to geographic areas based on the locations of its customers. Geographical revenues for the three months and six months ended February 28, 2019 and 2018 were as follows (in thousands, because of rounding numbers may not foot):

Three months ended February 28, 2019
	North America		Europe		Asia		South America		Total
Lancaster	$	2,073	$	1,762	$	1,171	$	2	$	5,008
Buffalo		2,292		–		–		–		2,292
North Carolina		971		136		65		–		1,172
Total	$	5,336	$	1,898	$	1,236	$	2	$	8,472

Three months ended February 28, 2018
	North America		Europe		Asia		South America		Total
Lancaster	$	1,717	$	1,744	$	1,079	$	12	$	4,552
Buffalo		1,867		–		–		–		1,867
North Carolina		664		91		183		–		938
Total	$	4,248	$	1,835	$	1,262	$	12	$	7,357

Six months ended February 28, 2019
	North America		Europe		Asia		South America		Total
Lancaster	$	4,184	$	2,710	$	2,476	$	3	$	9,373
Buffalo		4,357		–		–		–		4,357
North Carolina		1,716		187		375		–		2,278
Total	$	10,257	$	2,897	$	2,851	$	3	$	16,008

Six months ended February 28, 2018
	North America		Europe		Asia		South America		Total
Lancaster	$	3,532	$	2,833	$	2,213	$	15	$	8,593
Buffalo		3,780		–		–		–		3,780
North Carolina		1,533		45		474		–		2,052
Total	$	8,845	$	2,878	$	2,687	$	15	$	14,425