9. SEGMENT AND GEOGRAPHIC REPORTING

6 Months Ended

Feb. 29, 2020

Segments, Geographical Areas [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 29, 2020 and February 28, 2019 (in thousands, because of rounding numbers may not foot):

Three months ended February 29, 2020
	Lancaster		Buffalo		North Carolina		Eliminations			Total
Net revenues	$	5,904	$	2,750	$	1,696	$	–		$	10,350
Income (loss) from operations		2,004		276		546		–			2,826
Total assets		42,881		10,465		13,555		(17,702	)		49,199
Capital expenditures		9		20		13		–			42
Capitalized software costs		573		16		31		–			620
Depreciation and amortization		435		89		151		–			675

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

Six months ended February 29, 2020
	Lancaster		Buffalo		North Carolina		Eliminations			Total
Net revenues	$	10,830	$	5,137	$	3,784	$	–		$	19,751
Income (loss) from operations		3,907		316		1,322		–			5,545
Total assets		42,881		10,465		13,555		(17,702	)		49,199
Capital expenditures		17		41		15		–			73
Capitalized software costs		1,030		36		61		–			1,127
Depreciation and amortization		870		175		300		–			1,345

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

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 29, 2020 and February 28, 2019 were as follows (in thousands, because of rounding  numbers may not foot):

Three months ended February 29, 2020
	North & South America		Europe		Asia		Total
Lancaster	$	2,607	$	1,610	$	1,687	$	5,904
Buffalo		2,750		–		–		2,750
North Carolina		1,469		126		101		1,696
Total	$	6,826	$	1,736	$	1,788	$	10,350

Three months ended February 28, 2019
	North & South America		Europe		Asia		Total
Lancaster	$	2,075	$	1,762	$	1,171	$	5,008
Buffalo		2,292		–		–		2,292
North Carolina		971		136		65		1,172
Total	$	5,338	$	1,898	$	1,236	$	8,472

Six months ended February 29, 2020
	North & South America		Europe		Asia		Total
Lancaster	$	5,153	$	2,757	$	2,920	$	10,830
Buffalo		5,137		–		–		5,137
North Carolina		3,206		451		126		3,784
Total	$	13,496	$	3,208	$	3,046	$	19,751

Six months ended February 28, 2019
	North & South America		Europe		Asia		Total
Lancaster	$	4,187	$	2,710	$	2,476	$	9,373
Buffalo		4,357		–		–		4,357
North Carolina		1,716		187		375		2,278
Total	$	10,260	$	2,897	$	2,851	$	16,008