Note 22  SEGMENTS The Company operates within four main reportable segments: retail drugstores, online pharmacy, drug wholesale and herb farming. The retail drugstores segment sells prescription and over-the-counter ("OTC") medicines, TCM, dietary supplements, medical devices, and sundry items to retail customers. The online pharmacy sells OTC drugs, dietary supplements, medical devices and sundry items to customers through several third-party platforms such as Alibaba's Tmall, JD.com and Amazon.com, and the Company's own platform all over China. The drug wholesale segment includes supplying the Company's own retail drugstores with prescription and OTC medicines, TCM, dietary supplement, medical devices and sundry items (which sales have been eliminated as intercompany transactions), and also selling them to other drug vendors and hospitals. The Company's herb farming segment cultivates selected herbs for sales to other drug vendors. The Company is also involved in online sales and clinic services that do not meet the quantitative thresholds for reportable segments and are included in the retail drugstores segment. The segments' accounting policies are the same as those described in the summary of significant accounting policies. The Company evaluates performance based on profit or loss from operations before interest and income taxes not including nonrecurring gains and losses. The Company's reportable business segments are strategic business units that offer different products and services. Each segment is managed separately because they require different operations and markets to distinct classes of customers. The following table presents summarized information by segment of the continuing operations for the three months ended December 31, 2018. Retail drugstores Online Pharmacy Drug wholesale Herb farming Total Revenue $ 20,867,250 $ 2,493,205 7,556,094 - 30,916,549 Cost of goods 14,903,761 2,232,994 6,644,008 - 23,780,763 Gross profit $ 5,963,489 $ 260,211 912,086 - 7,135,786 Selling expenses 4,819,081 438,235 1,431,261 - 6,688,577 General and administrative expenses 1,443,634 47,703 1,081,525 - 2,572,862 Loss income from operations $ (299,226 ) $ (225,727 ) (1,600,700 - (2,125,653 ) Depreciation and amortization $ 449,893 $ - 433 - 450,326 Total capital expenditures $ 6,415,414 $ - 314 - 6,415,728 The following table presents summarized information by segment of the continuing operations for the three months ended December 31, 2017. Retail drugstores Online Pharmacy Drug wholesale Herb farming Total Revenue $ 18,288,222 $ 3,395,047 5,128,973 - 26,812,242 Cost of goods 13,686,969 3,134,767 4,418,893 - 21,240,629 Gross profit $ 4,601,253 $ 260,280 710,080 - 5,571,613 Selling expenses 3,509,018 572,397 939,556 - 5,020,971 General and administrative expenses 930,689 174,865 1,615,560 16,668 2,737,782 Income (Loss) from operations $ 161,546 $ (486,982 ) (1,845,036 ) (16,668 ) (2,187,140 ) Depreciation and amortization $ (525,203 ) $ - 4,649 - (520,554 ) Total capital expenditures $ 8,9495 $ - 4,711 - 94,206 The following table presents summarized information of the continuing operation by segment for the nine months ended December 31, 2018: Retail drugstores Online pharmacy Drug wholesale Herb farming Total Revenue $ 54,971,889 $ 6,637,922 19,488,350 81,098,161 Cost of goods 39,344,927 5,883,301 17,320,243 62,548,471 Gross profit $ 15,626,962 $ 754,621 2,168,107 18,549,690 Selling expenses 12,453,077 1,316,945 2,769,056 16539,078 General and administrative expenses 4,644,077 292,544 1,406,081 6,342,874 Loss from operations $ (1,470,364 ) $ (854,868 ) (2,007,030 ) (4,332,262 ) Depreciation and amortization $ 980,845 $ - 7,446 988,291 Total capital expenditures $ 6,789,129 $ - 1,437 6,790,566 The following table presents summarized information of the continuing operation by segment for the nine months ended December 31, 2017: Retail drugstores Online pharmacy Drug wholesale Herb farming Total Revenue $ 46,356,207 $ 9,595,752 16,021,694 - 71,973,653 Cost of goods 34,227,630 8,644,564 13,794,588 - 56,666,782 Gross profit $ 12,128,577 $ 951,188 2,227,106 - 15,306,871 Selling expenses 8,510,663 1,547,569 3,230,370 - 13,288,602 General and administrative expenses 4,942,902 352,770 1,996,393 26,715 7,318,780 Loss income from operations $ (1,324,988 ) $ (949,151 ) (2,999,657 ) (26,715 ) (5,300,511 ) Depreciation and amortization $ (854,445 ) $ - 209,023 - (645,422 ) Total capital expenditures $ 295,637 $ - 10,927 - 306,564 The Company does not have long-lived assets located outside the PRC. In accordance with the enterprise-wide disclosure requirements of FASB's accounting standard, the Company's net revenue from external customers through its retail drugstores by main product category is as follows: Three months ended December 31, Nine months ended December 31, 2018 2017 2018 2017 Prescription drugs $ 6,756,073 $ 5,373,870 $ 17,835,700 $ 14,860,659 OTC drugs 9,393,148 9,168,708 24,018,263 21,593,385 Nutritional supplements 1,869,351 1,883,020 4,750,013 4,558,383 TCM 1,342,768 1,185,004 4,615,033 3,136,203 Sundry products 248,729 180,338 799,554 804,817 Medical devices 1,257,180 497,282 2,953,326 1,402,760 Total $ 20,867,249 $ 18,288,222 $ 54,971,889 $ 46,356,207 The Company's net revenue from external customers through online pharmacy by main product category is as follows: Three months ended December 31, Nine months ended December 31, 2018 2017 2018 2017 Prescription drugs $ - $ - $ - $ - OTC drugs 837,126 1,535,383 2,412,057 4,038,674 Nutritional supplements 220,776 514,952 575,862 1,365,834 TCM 28,785 8,802 54,417 18,984 Sundry products 573,993 224,514 2,128,282 1,065,935 Medical devices 832,526 1,111,396 1,467,304 3,106,325 Total $ 2,493,206 $ 3,395,047 $ 6,637,922 $ 9,595,752 The Company's net revenue from external customers through wholesale by main product category is as follows: Three months ended December 31, Nine months ended December 31, 2018 2017 2018 2017 Prescription drugs $ 3,933,441 $ 2,777,566 $ 11,708,683 $ 9,252,199 OTC drugs 3,341,676 2,303,726 7,246,356 6,652,879 Nutritional supplements 167,069 19,123 240,666 47,660 TCM 77,216 20,876 156,525 21,480 Sundry products 5,949 - 21,479 - Medical devices 30,743 7,682 114,641 47,476 Total $ 7,556,094 $ 5,128,973 $ 19,488,350 $ 16,021,694