Note 3 - Segment Information

12 Months Ended

Dec. 31, 2022

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

Note 3.         Segment Information

Prior to the acquisition of GMI and through June 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 beginning July 1, 2022 we have two operating segments: Tellenger and Blockchain SCM. Tellenger provides professional services, primarily to U.S. 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.

For the year ended December 31, 2022:

	Tellenger		Blockchain SCM			Corporate			Consolidated
Revenue	$	11,023,982	$	998,970		$	-		$	12,022,952
Depreciation and amortization		211,360		1,223,328			8,626			1,443,314
Other significant non-cash items:
Stock-based compensation		175,693		691,472			1,100,762			1,967,927
Change in fair value of contingent consideration		-		(930,000	)		-			(930,000	)
Impairment of long-lived assets		-		3,762,915			-			3,762,915
Goodwill impairment		-		6,460,168			-			6,460,168
Total other significant non-cash items		175,693		9,984,555			1,100,762			11,261,010
Operating income (loss)	$	610,753	$	(13,358,651	)	$	(6,029,710	)	$	(18,777,608	)
Interest expense										(81,621	)
Other income, net										7,107
Income tax benefit										1,098,284
Net loss									$	(17,753,838	)
Acquisition of property and equipment	$	10,447	$	498,425		$	27,030		$	535,902

For the year ended December 31, 2021:

	Tellenger		Blockchain SCM		Consolidated
Revenue	$	15,033,504	$	-	$	15,033,504
Depreciation and amortization		167,332		69,266		236,598
Operating loss					$	(2,627,149	)
Interest expense						(37,325	)
Other income, net						12,171
Gain on forgiveness of note payable						450,000
Income tax benefit						1,070,854
Net loss					$	(1,131,449	)
Acquisition of property and equipment					$	69,754

Total assets for each operating segment as of December 31 are as follows:

	2022		2021
Tellenger	$	4,000,760	$	4,812,450
Blockchain SCM		2,500,000		13,159,805
Corporate		1,480,454		5,390,388
Consolidated	$	7,981,214	$	23,362,643