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Segment Reporting
 9 Months Ended
Sep. 30, 2023
Segment Reporting [Abstract]  
SEGMENT REPORTING

23. SEGMENT REPORTING

 

In its operation of the business, management, including our chief operating decision maker, who is our Chief Executive Officer, reviews certain financial information, including segmented internal profit and loss statements prepared on a basis consistent with GAAP. The Company operates in three segments: supply chain financing service and trading business, asset management service and others.

 

The Company began to provide supply chain financing services during the second quarter of 2021 and the Company acquired Nice Talent and started to provide asset management services since August 2021. The Company began to provide sand and steel supply chain financing services during the first quarter of 2023.

 

Some of our operation might not individually meet the quantitative thresholds for determining reportable segments and we determine the reportable segments based on the discrete financial information provided to the chief operating decision maker. The chief operating decision maker evaluates the results of each segment in assessing performance and allocating resources among the segments. Since there is an overlap of services and products between different subsidiaries of the Company, the Company does not allocate operating expenses and assets based on the product segments. Therefore, operating expenses and asset information by segment are not presented. Segment profit represents the gross profit of each reportable segment.

 

Three months ended September 30, 2023 

 

   Asset
management
service		   Supply chain
financing/
trading		   Others   Total 
Reportable segment revenue  $3,272,585   $19,991,244   $489,896   $23,753,725 
Inter-segment loss   
-
    
-
    
-
    
-
 
Revenue from external customers  $3,272,585    19,991,244    489,896    23,753,725 
Segment gross profit  $1,139,039   $59,050   $192,769   $1,390,858 

 

Three months ended September 30, 2022 

 

   Asset
management
service		   Supply chain
financing/
trading		   Others   Total 
Reportable segment revenue  $4,118,065   $7,839,635   $1,319   $11,959,019 
Inter-segment loss   
-
    
-
    
-
    - 
Revenue from external customers  $4,118,065   $7,839,635   $1,319   $11,959,019 
Segment gross profit  $1,355,246   $136,561   $1,319   $1,493,126 

 

Nine months ended September 30, 2023:

 

   Asset
management
service		   Supply chain
financing/
trading		   Others   Total 
Reportable segment revenue  $9,690,714   $20,472,036   $793,931   $30,956,681 
Inter-segment loss   -    -    -    - 
Revenue from external customers  $9,690,714    20,472,036    793,931    30,956,681 
Segment gross profit  $3,320,498   $234,550   $302,614   $3,857,662 

 

Nine months ended September 30, 2022:

 

   Asset
management
service		   Supply chain
financing/
trading		   Others   Total 
Reportable segment revenue  $11,270,874   $11,494,617   $78,170   $22,843,661 
Inter-segment loss   -    -    -    - 
Revenue from external customers  $11,270,874    11,494,617    78,170    22,843,661 
Segment gross profit  $4,381,536   $196,817   $78,170   $4,656,523 

 

Loss before Income Tax:

 

   Three Months Ended
September 30,		   Nine Months Ended
September 30,		 
   2023   2022   2023   2022 
Supply chain financing/trading  $97,398   $(326,287)  $28,975   $(224,156)
Asset management service   1,061,838    514,264    2,745,995    1,531,592 
Others   305,448    642,535    (97,975)   1,481,279 
Corporate and Unallocated   2,365,132    4,095,074    7,448,851    10,023,432 
Total operating expenses and other expense   3,829,816    4,925,586    10,125,846    12,812,147 
Loss before Income Tax  $(2,438,958)  $(3,432,460)  $(6,268,184)  $(8,155,624)

 

Segment assets:

 

   September 30,
2023		   December 31,
2022		 
Supply chain financing/trading  $14,991,235   $26,487,090 
Asset management service   3,706,404    3,387,506 
Others   17,295,394    14,090,091 
Corporate and Unallocated   34,549,126    41,053,032 
Total assets  $70,542,159   $85,017,719