Note 21 - Segment Reporting

9 Months Ended

Sep. 30, 2022

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

21. Segment reporting

The Company follows ASC Topic 280 “Segment Reporting”, which requires that companies disclose segment data based on how management makes decisions about allocating resources to segments and evaluating their performance. Reportable operating segments include components of an entity about which separate financial information is available and which operating results are regularly reviewed by the chief operating decision maker (“CODM”), the Company’s Chief Executive Officer, to make decisions about resources to be allocated to the segment and assess each operating segment’s performance.

ZW DATA ACTION TECHNOLOGIES INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Nine Months Ended September 30, 2022 (Unaudited)

	Internet Ad and related service			Ecommerce O2O Ad and marketing services			Blockchain technology			Corporate			Inter-segment and reconciling item			Total
	US$ (‘000)			US$ (‘000)			US$ (‘000)			US$ (‘000)			US$ (‘000)			US$ (‘000)
Revenues		21,813			-			-			-			-			21,813
Cost of revenues		21,811			-			-			-			-			21,811
Total operating expenses		1,517			817			1,100			2,663	(1)		-			6,097
Depreciation and amortization expense included in total operating expenses		270			225			1,100			65			-			1,660
Operating loss		(1,515	)		(817	)		(1,100	)		(2,663	)		-			(6,095	)
Change in fair value of warrant liabilities		-			-			-			759			-			759
Net loss		(1,555	)		(816	)		(1,100	)		(1,800	)		-			(5,271	)
Total assets-September 30, 2022		13,279			1,101			3,281			39,802			(32,463	)		25,000
Total assets-December 31, 2021		12,150			2,236			4,414			44,328			(30,497	)		32,631

(1) Including approximately US$0.14 million share-based compensation expenses.

Three Months Ended September 30, 2022 (Unaudited)

	Internet Ad. and related service			Ecommerce O2O Ad and marketing services			Blockchain technology			Corporate			Inter-segment and reconciling item		Total
	US$ (‘000)			US$ (‘000)			US$ (‘000)			US$ (‘000)			US$ (‘000)		US$ (‘000)
Revenues		7,216			-			-			-			-		7,216
Cost of revenues		7,267			-			-			-			-		7,267
Total operating expenses		628			80			365			707	(1)		-		1,780
Depreciation and amortization expense included in total operating expenses		91			75			365			21			-		552
Operating loss		(679	)		(80	)		(365	)		(707	)		-		(1,831	)
Change in fair value of warrant liabilities		-			-			-			(1,023	)		-		(1,023	)
Net loss		(688	)		(80	)		(365	)		(1,707	)		-		(2,840	)

(1) Including approximately US$0.05 million share-based compensation expenses.

ZW DATA ACTION TECHNOLOGIES INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Nine Months Ended September 30, 2021 (Unaudited)

	Internet Ad and related service			Ecommerce O2O Ad and marketing services			Blockchain technology			Corporate			Inter-segment and reconciling item		Total
	US$ (‘000)			US$ (‘000)			US$ (‘000)			US$ (‘000)			US$ (‘000)		US$ (‘000)
Revenues		34,333			514			-			-			-		34,847
Cost of revenues		34,614			1,125			-			-			-		35,739
Total operating expenses		1,129			1,113			1			8,533	(1)		-		10,776
Depreciation and amortization expense included in total operating expenses		223			225			1			1			-		450
Operating loss		(1,410	)		(1,724	)		(1	)		(8,533	)		-		(11,668	)
Change in fair value of warrant liabilities		-			-			-			9,682			-		9,682
Net (loss)/income		(1,230	)		(1,724	)		(2	)		1,371			-		(1,585	)
Expenditure for long-term assets		1,220			-			-			246			-		1,466

(1) Including approximately US$6.95 million share-based compensation expenses.

Three Months Ended September 30, 2021 (Unaudited)

	Internet Ad. and related service			Ecommerce O2O Ad and marketing services			Blockchain technology		Corporate			Inter-segment and reconciling item		Total
	US$ (‘000)			US$ (‘000)			US$ (‘000)		US$ (‘000)			US$ (‘000)		US$ (‘000)
Revenues		11,773			127			-		-			-		11,900
Cost of revenues		11,482			375			-		-			-		11,857
Total operating expenses		539			455			-		623	(1)		-		1,617
Depreciation and amortization expense included in total operating expenses		93			75			-		-			-		168
Operating loss		(248	)		(703	)		-		(623	)		-		(1,574	)
Change in fair value of warrant liabilities		-			-			-		2,853			-		2,853
Net (loss)/income		(264	)		(703	)		-		2,341			-		1,374
Expenditure for long-term assets		-			-			-		85			-		85

(1) Including approximately US$0.09 million share-based compensation expenses.

ZW DATA ACTION TECHNOLOGIES INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)