Segment Information

6 Months Ended

Dec. 31, 2016

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

14. Segment Information

The Company is operated as two segments: laboratory testing services (legacy AEON’s services), and web-based software and related products and offerings (legacy AHC products). Laboratory testing services includes the testing of an individual’s blood, urine or saliva for the presence of drugs or chemicals and the patient’s DNA profile. Web-based software and related products and offerings provide secure web-based revenue cycle management applications and telehealth products and services that enable healthcare organizations to increase revenues, improve productivity, reduce costs, coordinate care for patients and enhance related administrative and clinical workflows and compliance with regulatory requirements. Our web-based services are delivered as Software as a Service (SaaS) to our customers interfacing seamlessly with billing, information and document management systems.

Currently, management runs each segment separately and measures profitability and operational performance based on the financial records independently maintained by two separate systems.

Selected financial information related to the Company’s segments is presented below for the three and six months ended December 31:

	AEON		Authentidate		Total
Three Months ended December 31, 2016
Net revenues	$	4,565,435	$	321,378	$	4,886,813
Cost of revenues		1,072,893		55,325		1,128,218
Operating expenses		4,496,126		1,320,216		5,816,342
Operating loss		(768,933)		(160,596)		(929,529)
Six Months ended December 31, 2016
Net revenues	$	10,256,731		680,157	$	10,936,888
Cost of revenues		2,176,105		356,783		2,532,888
Operating expenses		8,496,705		2,764,971		11,211,676
Operating loss		(131,427)		(143,361)		(274,788)
Three Months ended December 31, 2015
Net revenues	$	13,206,116	$	—	$	13,206,116
Cost of revenues		1,524,394		—		1,524,394
Operating expenses		7,247,948		—		7,247,948
Operating income		5,958,168		—		5,958,168
Six Months ended December 31, 2015
Net revenues	$	22,597,440		—	$	22,597,440
Cost of revenues		3,066,545		—		3,066,545
Operating expenses		13,826,711		—		13,826,711
Operating income		8,770,729		—		8,770,729
December 31, 2016
Total assets		6,389,957		42,055,062	$	48,445,019
June 30, 2016
Total assets	$	6,777,791	$	44,895,538	$	51,673,329