Note 4  Segment Reporting The Company has two reportable segments: (1) Monitoring and (2) Distributorships. Monitoring fees on Company installed units The Company rents units directly to customers and installs the units in the customers vehicles. The rental periods range from a few months to 2 years and include a combination of down payments made by the customer and monthly payments paid under the agreements with the Company. Revenue is recognized from these companies on the straight-line basis over the term of the agreement. Amounts collected in excess of those earned are classified as deferred revenue in the balance sheet, and amounts earned in excess of amounts collected are reflected in accounts receivable in the balance sheet at March 31, 2018 and December 31, 2017. Distributorships The Company enters into arrangements that include multiple deliverables, which typically consist of the sale of exclusive distributorship territory rights, startup supplies package, promotional material, three weeks of onsite training and ongoing monthly support services. The Company accounts for each material element within an arrangement with multiple deliverables as separate units of accounting. Revenue is allocated to each unit of accounting under the guidance of ASC Topic 605-25, Multiple-Element Revenue Arrangements, which provides criteria for separating consideration in multiple-deliverable arrangements by establishing a selling price hierarchy for determining the selling price of a deliverable. The selling price used for each deliverable is based on vendor-specific objective evidence (VSOE) if available, third-party evidence if VSOE is not available, or estimated selling price if neither VSOE nor third-party evidence is available. The Company is required to determine the best estimate of selling price in a manner that is consistent with that used to determine the price to sell the deliverable on a standalone basis. The Company generally does not separately sell distributorships or training on a standalone basis. Therefore, the Company does not have VSOE for the selling price of these units nor is third party evidence available and thus management uses its best estimate of selling prices in their allocation of revenue to each deliverable in the multiple element arrangement. The following table summarizes net sales and identifiable operating income by segment: Three Months Ended March 31, 2018 2017 Segment gross profit (a): Monitoring $ 130,873 $ 67,338 Distributorships 23,170 87,495 Gross profit 154,043 154,833 Identifiable segment operating expenses (b): Monitoring - 5,832 Distributorships - 48,530 - 54,362 Identifiable segment operating income (c): Monitoring 130,873 61,506 Distributorships 23,170 38,965 154,043 100,471 Reconciliation of identifiable segment income to corporate income (d): Payroll 236,412 70,314 Professional fees 37,092 41,131 General and administrative expenses 249,554 716,092 Depreciation - 1,054 Interest expense 102,321 144,309 Change in fair value of derivative liability 7,286 (16,028 ) Loss before provision for income taxes (478,622 ) (856,401 ) Provision for income taxes - - Net loss $ (478,622 ) $ (856,401 ) Total net property, plant, and equipment assets Monitoring $ - $ 63,764 Distributorships - 530,631 Corporate - 1,959 $ - $ 596,354 (a) Segment gross profit includes segment net sales less segment cost of sales (b) Identifiable segment operating expenses consists of identifiable depreciation expense (c) Identifiable segment operating incomes consists of segment gross profit less identifiable operating expense (d) General corporate expense consists of all other non-identifiable expenses