P15-1

1. Rise’s Reportable segment 10% revenue test:

Revenue from Affiliated and Reportable Segments

Unaffiliated Customers Test Value $93,000
United States $250,000 Yes
Canada $200,000 Yes
Europe $130,000 Yes
Latin America $130,000 Yes
Japan $130,000 Yes
Korea $ 50,000 No
Singapore $ 30,000 No
Other $ 10,000 No
$930,000
The reportable segments under 10% revenue test are United States, Canada, Europe,
Latin America and Japan.

2. 75% revenue test:

Combined Revenue from Combined Revenue
Reportable Segments to from All Segments to
Unaffiliated Customers Unaffiliated Customers
United States $250,000 $250,000
Canada $200,000 $200,000
Europe $130,000 $130,000
Latin America $120,000 $120,000
Japan $100,000 $100,000
Korea $ 50,000
Singapore $ 20,000
Other $ 10,000
$800,000 $880,000

Since the $800,000 combined revenue from reportable segments to unaffiliated

customers is greater than 75% of $880,000 revenue for all unaffiliated customers, no
additional segments have to be reported.

3. Schedule for disclosing revenue by segment:

Sales to Unaffiliated Sales to Affiliated
Customers Customers Total Sales
United States $250,000 $250,000
Canada $200,000 $200,000
Europe $130,000 $130,000
Latin America $120,000 $10,000 $130,000
Japan $100,000 $30,000 $130,000
Other segments $80,000 $10,000 $ 90,000
Total revenue $880,000 $50,000 $930,000
Reconciliation of segment revenue to consolidated revenue, 2016 :

Total revenue of reportable segments $840,000

Revenue of other segments 90,000
Elimination of intersegment revenue (50,000)
Total consolidated revenue $880,000