Note 3 - Segment Financial Information

9 Months Ended

Sep. 30, 2022

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

Note 3.  Segment Financial Information

In periods earlier than the quarter ended September 30, 2022, we managed our business as a single operating segment. During the quarter ended September 2022, we reassessed our business strategy and our CODM changed his approach to managing the business and allocating resources. As a result, we determined that we have two operating segments: Tellenger and Blockchain SCM. Tellenger provides professional services, primarily to US government agencies, related to legacy software migration and modernization, developing web-based and mobile device solutions, including dynamic electronic forms development and conversion, and data analytics. The Blockchain SCM segment is an early-stage business focused on developing, marketing, and selling a SaaS supply chain management platform built on blockchain technology.

No separate revenues and operating income for the Blockchain SCM operating segment are presented for the three- and nine-month periods ended September 30, 2021, since we did not own this SCM business during such prior periods.

	Three Months Ended 9/30/22											Nine Months Ended 9/30/22
		Tellenger		Blockchain SCM			Corporate			Consolidated			Tellenger		Blockchain SCM			Corporate			Consolidated
Revenue	$	2,306,379	$	-		$	-		$	2,306,379		$	9,052,411	$	566,862		$	-		$	9,619,273
Operating income (loss)	$	250,712	$	(3,292,257	)	$	(1,696,317	)	$	(4,737,862	)	$	661,394	$	(4,124,511	)	$	(5,784,490	)	$	(9,247,607	)
Interest expense										(20,437	)										(59,574	)
Other income, net										3,188											3,977
Loss before provision for income taxes									$	(4,755,111	)									$	(9,303,204	)

Corporate operating loss primarily includes stock-based compensation expenses, acquisition-related costs, and other expenses related to executive, legal, finance, tax, and investor relations expenses.

	As of September 30, 2022
		Tellenger		Blockchain SCM		Corporate		Consolidated
Intangible assets	$	1,225,844	$	5,773,445	$	-	$	6,999,289
Total assets	$	6,858,228	$	7,137,786	$	2,611,677	$	16,607,691