| SEGMENT REPORTING |
19.
SEGMENT REPORTING
The
Company’s organizational structure is based on a number of factors that the CODM uses to evaluate, view and run its business operations
which include, but not limited to, customer base, homogeneity of service and technology. The Company’s operating segments are based
on such organizational structure and information reviewed by the CODM to evaluate the operating segment results. Based on management’s
assessment, the Company has determined that it had two operating segments before the disposal of the sales of patented drugs operating
segment on June 30, 2025: (i) MDMOOC services, and (ii) sales of patented drugs.
The
Company completed the deregistration of Chongqing Xinjiang on June 30, 2025, due to declining profitability caused by intensified industry
competition. The disposal of the patented drug sales business signifies a strategic shift. However, the revenue and assets of the sales
of patented drugs operating segment are not material to the Company’s total revenue and total assets. Therefore, the disposal
of the sales of patented drugs operating segment will not have a material impact on the Company’s operations or financial performance
and is not considered as discontinued operation.
The
following table presents major accounts of statements of operations by segments for the year ended December 31, 2025.
| | |
MDMOOC
Services | | |
Sales
of
patented
drugs | | |
Total | |
| Revenues | |
$ | 10,678,554 | | |
$ | 696,442 | | |
$ | 11,374,996 | |
| Cost of revenues | |
| (5,665,996 | ) | |
| (587,459 | ) | |
| (6,253,455 | ) |
| Selling and marketing expenses | |
| (1,539,487 | ) | |
| 48,893 | | |
| (1,490,594 | ) |
| General and administrative expenses | |
| (9,698,452 | ) | |
| (115,635 | ) | |
| (9,814,087 | ) |
| Research and development expenses | |
| (8,085 | ) | |
| - | | |
| (8,085 | ) |
| Total operating expenses | |
$ | (11,246,024 | ) | |
$ | (66,742 | ) | |
$ | (11,312,766 | ) |
| Segment
operating (loss) income | |
$ | (6,233,466 | ) | |
$ | 42,241 | | |
$ | (6,191,225 | ) |
| | |
| | | |
| | | |
| | |
| Interest income (expenses), net | |
| 343,149 | | |
| (21 | ) | |
| 343,128 | |
| Other income (expenses), net | |
| 45,333 | | |
| 34,079 | | |
| 79,412 | |
| Income tax benefits
(expenses) | |
| 42,957 | | |
| (89,139 | ) | |
| (46,182 | ) |
| Segment
net loss | |
$ | (5,802,027 | ) | |
$ | (12,840 | ) | |
$ | (5,814,867 | ) |
The
following table presents major accounts of statements of operations by segments for the year ended December 31, 2024.
| | |
MDMOOC
Services | | |
Sales
of
patented
drugs | | |
Total | |
| Revenues | |
$ | 13,712,964 | | |
$ | 2,151,809 | | |
$ | 15,864,773 | |
| Cost of revenues | |
| (5,510,088 | ) | |
| (1,442,472 | ) | |
| (6,952,560 | ) |
| Selling and marketing expenses | |
| (3,799,558 | ) | |
| (210,824 | ) | |
| (4,010,382 | ) |
| General and administrative expenses | |
| (4,815,975 | ) | |
| (174,672 | ) | |
| (4,990,647 | ) |
| Research and development expenses | |
| (252,451 | ) | |
| - | | |
| (252,451 | ) |
| Total operating expenses | |
$ | (8,867,984 | ) | |
$ | (385,496 | ) | |
$ | (9,253,480 | ) |
| Segment
operating (loss) income | |
$ | (665,108 | ) | |
$ | 323,841 | | |
$ | (341,267 | ) |
| | |
| | | |
| | | |
| | |
| Interest income, net | |
| 242,848 | | |
| 160 | | |
| 243,008 | |
| Other income, net | |
| 148,089 | | |
| 11,926 | | |
| 160,015 | |
| Income tax (expenses)
benefits | |
| (348,406 | ) | |
| 13,237 | | |
| (335,169 | ) |
| Segment
net (loss) income | |
$ | (622,577 | ) | |
$ | 349,164 | | |
$ | (273,413 | ) |
The
following table presents major accounts of statements of operations by segments for the year ended December 31, 2023.
| | |
MDMOOC
Services | | |
Sales
of patented drugs | | |
Total | |
| Revenues | |
$ | 10,406,734 | | |
$ | 9,027,211 | | |
$ | 19,433,945 | |
| Cost of revenues | |
| (5,162,438 | ) | |
| (5,759,315 | ) | |
| (10,921,753 | ) |
| Selling and marketing expenses | |
| (5,327,266 | ) | |
| (1,383,491 | ) | |
| (6,710,757 | ) |
| General and administrative expenses | |
| (6,470,944 | ) | |
| (226,365 | ) | |
| (6,697,309 | ) |
| Research and development expenses | |
| (514,411 | ) | |
| - | | |
| (514,411 | ) |
| Loss from disposal of property and equipment | |
| (1,719,442 | ) | |
| - | | |
| (1,719,442 | ) |
| Impairment of goodwill | |
| (5,617,865 | ) | |
| - | | |
| (5,617,865 | ) |
| Impairment of intangible
assets | |
| (536,206 | ) | |
| - | | |
| (536,206 | ) |
| Total operating expenses | |
$ | (20,186,134 | ) | |
$ | (1,609,856 | ) | |
$ | (21,795,990 | ) |
| Segment
operating (loss) income | |
$ | (14,941,838 | ) | |
$ | 1,658,040 | | |
$ | (13,283,798 | ) |
| | |
| | | |
| | | |
| | |
| Interest income, net | |
| 216,528 | | |
| 20,526 | | |
| 237,054 | |
| Other income, net | |
| 1,069,603 | | |
| 142 | | |
| 1,069,745 | |
| Income tax benefits
(expenses) | |
| 700,048 | | |
| (30,288 | ) | |
| 669,760 | |
| Segment
net (loss) income | |
$ | (12,955,659 | ) | |
$ | 1,648,420 | | |
$ | (11,307,239 | ) |
| |
|
December 31,
2025 |
|
|
December 31,
2024 |
|
| Total assets |
|
|
|
|
|
|
| MDMOOC services |
|
$ |
24,146,846 |
|
|
$ |
24,890,290 |
|
| Sales of patented drugs |
|
|
- |
|
|
|
994,663 |
|
| |
|
$ |
24,146,846 |
|
|
$ |
25,884,953 |
|
Substantially
all of the Company’s revenues are derived from China based on the geographical locations where services are provided to customers.
In addition, the Company’s long-lived assets are substantially all located in and derived from China, and the amount of long-lived
assets attributable to any individual other country is not material. Therefore, no geographical segments are presented.
|