v3.26.1
OPERATING SEGMENTS
 3 Months Ended
Mar. 31, 2026
Segment Reporting [Abstract]  
OPERATING SEGMENTS

NOTE 18 – OPERATING SEGMENTS

 

The Company’s Chief Operating Decision Maker (“CODM”) is our Founder, Chief Executive Officer, Chief Strategy Officer, and Chairman Mr. Hai Shi. The CODM assesses performance and decides how to allocate resources based on net income (loss) to evaluate operational efficiency and direct resources of the Company. Segment assets are reported on the condensed consolidated balance sheets as total assets. The table below presents segment revenue, operating profit and significant expenses for the three months ended March 31, 2026 and 2025:

 

   2026   2025 
         
Revenues, net  $27,294,654   $20,110,872 
Cost of revenues   15,638,213    14,263,345 
           
Gross profit   11,656,441    5,847,527 
           
Operating expenses:          
Salaries and Wages   2,019,741    2,599,493 
Public Company Expenses   169,829    163,506 
General and administrative   2,461,187    2,201,352 
Research and development   4,014,669    3,609,745 
Advertising and marketing   868,789    1,306,365 
Depreciation   12,734    67,904 
Impairment expenses     69,149       —  
Total operating expenses   9,616,098    9,948,365 
           
Income (loss) from operations   2,040,343    (4,100,838)
           
Total other income, net   201,037    683,045 
           
Income (loss) before provision for (benefit from) income taxes  $2,241,380   $(3,417,793)
           
Provision for (benefit from) income taxes   106,824    (1,470,830)
           
Net income (loss)  $2,134,556   $(1,946,963)

 

Depreciation expense is consistent with those presented in the condensed consolidated statements of cash flows. There are no additional segment items requiring separate disclosure. Interest income, interest expense, other income and foreign currency transactions are captured in the total other income, net line item. The Company continues to report revenue by geographic region as part of its revenue disclosures, see Note 3 – Revenue from Contracts with Customers. The CFO provides reports to the CODM for key decision making purposes.