v3.25.1
Segment Information
 12 Months Ended
Dec. 31, 2024
Segment Information [Abstract]  
Segment Information
44. Segment Information

 

  a) General information

 

The Group uses the product line as basis for providing information to the chief operating decision-maker. The Group currently divides the sales order district into three major product lines: video IoT, security convergence and other. The chief operating decision-maker makes decision concerning financial management as well as evaluation of the business performance based on these three product lines; therefore, the reportable segments are video IoT, security convergence and other.

 

  b) Measurement of segment information

 

The Group evaluates the performance of the operating segments based on a measure of revenue and income before tax, in a manner consistent with that in the consolidated statements of comprehensive income (loss). The accounting policies of the operating segments are in agreement with the significant accounting policies in the consolidated financial statements for the year ended December 31, 2024. Sale transactions among segments are based on arms-length principle.

  c) Reconciliation of segment income, assets and liabilities

 

The segment information provided to the chief operating decision-maker for the reportable segments is as follows:

 

   Year ended December 31, 2024 
           Other   Adjustment
and		     
   Security
Convergence		   Video IoT   segment
(Note 1)		   write-off
(Note 2)		   Consolidation 
Revenue from external customers  $71,895,619   $2,778,411   $
-
   $
-
   $74,674,030 
Inter-segment revenue   29,807,085    1,926    
-
    (29,809,011)   
-
 
Total segment revenue  $101,702,704   $2,780,337   $
-
   $(29,809,011)  $74,674,030 
Segment gain (loss) before tax  $(291,133)  $10,114,799   $(51,015,192)  $(24,913,904)  $(66,105,430)
Segment including :                         
Depreciation  $508,757   $63,401   $537   $1,426   $574,121 
Amortization  $141,937   $5,883   $672,827   $554   $821,201 
Interest income  $(1,247,990)  $(15,578)  $(304,155)  $(1,530)  $(1,569,253)
Interest expense  $564,278   $52,688   $113,549   $1,993   $732,508 
Tax expense  $(715,170)  $(613,612)  $800   $17,168   $(1,310,814)
Segment assets  $148,312,072   $106,857,376   $96,733,693   $(198,107,159)  $153,795,982 
Segment liabilities  $114,950,253   $106,566,450   $30,753,177   $(171,577,751)  $80,692,129 

 

   Year ended December 31, 2023 
           Other   Adjustment
and		     
   Security
Convergence		   Video IoT   segment
(Note 1)		   write-off
(Note 2)		   Consolidation 
Revenue from external customers  $61,789,671   $2,905,320   $
-
   $
-
   $64,694,991 
Inter-segment revenue   11,697,729    39,339    
-
    (11,737,068)   
-
 
Total segment revenue  $73,487,400   $2,944,659   $
-
   $(11,737,068)  $64,694,991 
Segment gain (loss) before tax  $28,283,481   $(3,547,581)  $(7,948,575)  $224,279   $17,011,604 
Segment including :                         
Depreciation  $476,605   $26,637   $19,721   $
-
   $522,963 
Amortization  $102,736   $4,633   $618,662   $
-
   $726,031 
Interest income  $(309,605)  $(16,394)  $(444,411)  $
-
   $(770,410)
Interest expense  $529,750   $34,553   $253,762   $
-
   $818,065 
Tax expense  $3,370,891   $142,928   $2,171   $
-
   $3,515,990 
Segment assets  $85,334,926   $9,137,251   $113,310,681   $(92,349,110)  $115,437,748 
Segment liabilities  $50,490,134   $16,486,654   $83,970,880   $(89,661,653)  $61,336,015 

  

   Year ended December 31, 2022 
           Other   Adjustment
and		     
   Security
Convergence		   Video IoT   segment
(Note 1)		   write-off
(Note 2)		   Consolidation 
Revenue from external customers  $12,710,421   $9,698,387   $
-
   $
-
   $22,408,808 
Inter-segment revenue   149,771    826,548    
-
    (976,319)   
-
 
Total segment revenue  $12,860,192   $10,524,935   $
-
   $(976,319)  $22,408,808 
Segment loss before tax  $(2,848,847)  $(6,750,899)  $(77,507,110)  $
-
   $(87,106,856)
Segment including :                         
Depreciation  $2,490,896   $3,447,091   $180   $
-
   $5,938,167 
Amortization  $967,557   $720,061   $
-
   $
-
   $1,687,618 
Interest income  $(9,861)  $(36,235)  $(189,816)  $
-
   $(235,912)
Interest expense  $221,215   $336,045   $278,013   $
-
   $835,273 
Tax expense  $81,248   $346,946   $2,174   $
-
   $430,368 
Segment assets  $22,387,916   $30,228,118   $45,236,856   $(32,592,012)  $65,260,878 
Segment liabilities  $21,790,810   $26,070,168   $19,088,347   $(30,231,630)  $36,717,695 
Note 1: Other segment is composed of holding companies and overseas subsidiaries which are excluded from reportable segments of Security Convergence or Video IoT.

 

Note 2: Adjustment and write-off represents elimination for intercompany transactions for consolidation purpose.

 

  d) Reconciliation for segment income (loss)

 

  i) Sales between segments are carried out at arm’s length. The revenue from external customers reported to the chief operating decision-maker is measured in a manner consistent with that in the consolidated statements of comprehensive income (loss).

 

  ii) Refer to clause c) above for information on total consolidated profit or loss after reconciliation and reconciliation for profit or loss after tax of reportable segments during the current period.

 

  e) Information on product and service

 

The main businesses of the Group are providing information, software and data processing services. Refer to Note 26 for the disclosure information by products and services.

 

  f) Geographical information

 

Geographical information for the years ended December 31, 2024, 2023 and 2022 is as follows:

 

   Year ended
December 31, 2024		   Year ended
December 31, 2023		   Year ended
December 31, 2022		 
   Revenue   Non-current
assets
(Note 1)		   Revenue   Non-current
assets
(Note 1)		   Revenue   Non-current
assets
(Note 1)		 
Asia                        
-Taiwan  $74,632,115   $14,889,959   $64,615,921   $15,821,531   $14,706,318   $16,716,816 
-Hong Kong   
-
    
-
    63,615    3,695,405    7,687,126    704 
-India   
-
    82,874    
-
    
-
    
-
    
-
 
-Others   
-
    
-
    
-
    47,964    10,774    
-
 
Americas   
-
    358    
-
    895    4,590    1,431 
Egypt   
-
    410,787    
-
    
-
    
-
    
-
 
United Kingdom   41,915    198,681    
-
    
-
    
-
    
-
 
Cayman Islands   
-
    2,856,051    
-
    65,578    
-
    537,684 
Other regions   
-
    315,304    15,455    5,874,406    
-
    
-
 
   $74,674,030   $18,754,015   $64,694,991   $25,505,779   $22,408,808   $17,256,635 

 

Revenues by geography are determined based on the region of the Group’s contracting entity, which may be different than the region of the customer. Revenue from Taiwan accounted for approximately 99, 99 and 66 percent of total revenue for the years ended December 31, 2024, 2023 and 2022, respectively. Non-current assets by geography are based on physical location.

 

Note 1: Non-current assets excludes deferred tax assets, guarantee deposits paid and intercompany balances.

 

  g) Major customer information

 

Information of major customers that exceed 10% of the revenue in the statements of comprehensive income for each of the three years presented is as follows:

  

          Year ended
December 31, 2024		   Year ended
December 31, 2023		   Year ended
December 31, 2022
    Location     Revenue     Segment   Revenue     Segment   Revenue     Segment
Customer A     Singapore     $ -     Not
applicable		   $ -     Not applicable   $ 5,388,482     Security Convergence
Customer B     Taiwan       -     Not
applicable		     -     Not applicable     3,691,803     Security Convergence
Customer C     Taiwan       11,025,893     Security Convergence     8,129,968     Security Convergence     -     Not
applicable
Customer D     Egypt       59,095,524     Security Convergence     52,271,731     Security Convergence     -     Not
applicable

 

Note 1: As of December 31, 2024, one customer accounted for over 10% of total accounts receivable. As of December 31, 2023, no customer accounted for 10% or more of total accounts receivable.