v3.26.1
Segment Reporting
 12 Months Ended
Dec. 31, 2025
Segment Reporting [Abstract]  
SEGMENT REPORTING

NOTE 26 – SEGMENT REPORTING

 

ASC 280, “Segment Reporting”, establishes standards for reporting information about operating segments on a basis consistent with the Company’s internal organizational structure as well as information about geographical areas, business segments and major customers in financial statements for details on the Company’s business segments.

 

In November 2023, the FASB issued ASU No. 2023-07, Improvements to Reportable Segment Disclosures (Topic 280). This ASU updates reportable segment disclosure requirements by requiring disclosures of significant reportable segment expenses that are regularly provided to the Chief Operating Decision Maker (“CODM”) and included within each reported measure of a segment’s profit or loss. This ASU also requires disclosure of the title and position of the individual identified as the CODM and an explanation of how the CODM uses the reported measures of a segment’s profit or loss in assessing segment performance and deciding how to allocate resources. The Company adopted this ASU on December 31, 2024 and the adoption of the ASU does not have a material effect on its consolidated financial statements.

 

The Company uses the management approach to determine reportable operating segments. The management approach considers the internal organization and reporting used by the Company’s CODM for making decisions, allocating resources and assessing performance. The Company’s CODM has been identified as the CEO, who reviews consolidated results when making decisions about allocating resources and assessing the performance of the Company.

 

Based on the management’s assessment, the Company determined that it had two operating segments and therefore two reportable segments as defined by ASC 280, which were graphite anode business and knowledge sharing and enterprise business. The Company’s long-lived assets were all located in the PRC and substantially all of the Company’s revenue and expense were derived in the PRC. Therefore, no geographical segments were presented.

The Company’s CODM evaluates performance based on each reporting segment’s revenues and costs of revenues. Revenues, cost of revenues and gross (loss) profits by segment were presented below.

 

   For the years ended December 31, 
   2025   2024   2023 
REVENUES, NET            
Graphite anode business  $46,342,154   $64,365,362   $44,384,004 
Knowledge sharing and enterprise business   73,978    632,379    666,401 
Total revenues   46,416,132    64,997,741    45,050,405 
                
COSTS OF REVENUES               
Graphite anode business   52,252,338    70,782,649    57,172,626 
Knowledge sharing and enterprise business   11,278    12,672    281,030 
Total cost of revenues   52,263,616    70,795,321    57,453,656 
                
GROSS (LOSS) PROFIT               
Graphite anode business   (5,910,184)   (6,417,287)   (12,788,622)
Knowledge sharing and enterprise business   62,700    619,707    385,371 
Total gross loss   (5,847,484)   (5,797,580)   (12,403,251)
                
RECONCILIATION OF LOSS (SEGMENT OF GROSS LOSS)               
UNALLOCATED AMOUNTS               
OPERATING EXPENSES               
Selling expenses   895,099    899,760    742,167 
General and administrative expenses   7,329,317    7,391,664    13,040,038 
Research and development expenses   1,955,588    2,507,324    1,193,082 
Impairment of intangible assets   
-
    
-
    3,151,467 
Total operating expenses   10,180,004    10,798,748    18,126,754 
                
LOSS FROM OPERATIONS   (16,027,488)   (16,596,328)   (30,530,005)
                
OTHER (EXPENSES) INCOME               
Investment income (losses)   146,361    198,176    (1,170,974)
Interest expense, net   (4,566,816)   (2,018,680)   (2,162,109)
Share subscription discount expenses   (6,534,936)   
-
    
 
 
Other income, net   323,111    441,231    942,138 
Total other expenses, net   (10,632,280)   (1,379,273)   (2,390,945)
                
LOSS BEFORE INCOME TAXES  $(26,659,768)  $(17,975,601)  $(32,920,950)