SEGMENT REPORTING

12 Months Ended

Dec. 31, 2023

Segment Reporting [Abstract]

SEGMENT REPORTING

17. SEGMENT REPORTING

The Company has determined that it operates in two operating segments: (1) electric vehicles and accessories sales, and (2) software royalties and development and design services.

The Company’s CODM, chief executive officer, measures the performance of each segment based on metrics of revenue and profit before taxes from operations and uses these results to evaluate the performance of, and to allocate resources to each of the segments. As most of the Company’s long-lived assets are located in the PRC and most of the Company’s revenues are derived from the PRC, no geographical information is presented. The Company does not allocate assets to its segments as the CODM does not evaluate the performance of segments using asset information.

The following tables present the summary of each reportable segment’s assets, revenue and income, which is considered as a segment operating performance measure, for the years ended December 31, 2023 and 2022:

	For the Year Ended December 31, 2023
		Electric vehicles and accessories sales			Software royalties and development and design services
		Segment			Segment			Consolidated
Current assets	$	15,830,685		$	274,228		$	16,104,913
Non-current assets		1,764,534			1,802,037			3,566,571
Revenues		14,298,967			1,175,951			15,474,918
Depreciation and amortization		180,861			541,917			722,778
Segment income before tax		1,349,430			(18,106	)		1,331,324
Segment gross profit margin		12	%		40	%		14	%
Net income	$	1,004,577		$	(18,106	)	$	986,471

	For the Year Ended December 31, 2022
		Electric vehicles and accessories sales			Software royalties and development and design services
		Segment			Segment			Consolidated
Current assets	$	13,191,513		$	755,499		$	13,947,012
Non-current assets		1,587,699			1,402,747			2,990,446
Revenues		16,930,201			1,368,364			18,298,565
Depreciation and amortization		132,664			214,525			347,189
Segment income before tax		1,055,425			477,103			1,532,528
Segment gross profit margin		13	%		57	%		17	%
Net income	$	729,756		$	385,504		$	1,115,260