| SEGMENT REPORTING |
NOTE 15 — SEGMENT REPORTING
The Company’s chief operating decision maker
has been identified as the Chief Executive Officer (“CEO”), who reviews financial information of operating segments based
on U.S. GAAP amounts when making decisions about allocating resources and assessing performance of the Company.
The Company determined that it operated in one operating segment of
touch screen business.
The Company primarily operates in People’s
Republic of China (“PRC”). and substantially all of the Company’s long-lived assets are located in the PRC.
| | 1) | The Company’s geographical revenue information is set forth below: |
| | |
Three-Month Period Ended
March 31 | |
| | |
2026 | | |
2025 | |
| | |
(Unaudited) | |
| Sales in PRC | |
$ | 11,000,025 | | |
$ | 10,301,069 | |
| Sales in Overseas | |
| | | |
| | |
| -Republic of China (ROC, or Taiwan) | |
| 2,978,322 | | |
| 2,667,917 | |
| -South Korea | |
| 2,333,822 | | |
| 2,320,592 | |
| Sub-total | |
| 5,312,144 | | |
| 4,988,509 | |
| Total revenues | |
$ | 16,312,169 | | |
$ | 15,289,578 | |
| 2) | Segment information is
set forth below: |
| | |
Three-Month Period Ended
March 31 | |
| | |
2026 | | |
2025 | |
| | |
(Unaudited) | |
| Revenues | |
$ | 16,312,169 | | |
$ | 15,289,578 | |
| Less: | |
| | | |
| | |
| Cost of revenues | |
| 10,488,869 | | |
| 9,647,947 | |
| Allowance for credit losses | |
| 12 | | |
| 45,739 | |
| Reversal of provision for obsolete inventory | |
| (4,012 | ) | |
| (25,276 | ) |
| Staff cost | |
| 404,744 | | |
| 351,635 | |
| Depreciation and amortization expense | |
| 9,020 | | |
| 2,471 | |
| Lease expense | |
| 159,050 | | |
| 151,375 | |
| Income tax expense | |
| 1,243,185 | | |
| 1,471,106 | |
| Other segment items* | |
| 144,995 | | |
| 1,081,859 | |
| | |
| | | |
| | |
| Segment net income | |
| 3,866,306 | | |
| 2,562,722 | |
| | |
| | | |
| | |
| Consolidated net income | |
$ | 3,866,306 | | |
$ | 2,562,722 | |
| | |
| | | |
| | |
| Consolidated total assets | |
$ | 147,289,706 | | |
$ | 133,677,892 | |
| * | Other segment items include remaining selling expense, general and administration expenses and interest income. |
|