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

Note 19 – Segment Data

 

Each of the Company’s business segments offer different, but synergistic products and services. The accounting policies of the segments are the same as those described in the summary of significant accounting policies. The chief operating decision makers (“CODM”) are our Chief Executive Officer and our President and Chairman of the Board. The CODMs assess performance for the segments and decide how to allocate resources based on segment profit or loss. The Company does not have any intra-entity sales or transfers. Further, unallocated corporate assets not directly attributable to any one of the business segments and unallocated corporate operating losses resulting from general corporate overhead expenses not directly attributable to any one of the business segments are reported separate from the Company’s identified segments and included under Corporate in the tables presented below.

 

The Company’s business consists of three reportable business segments:

 

  ■ E-sports, provided through Allied Esports, including video game events and tournaments.

 

  ■ Casual mobile gaming, provided through Z-Tech.

 

  ■ Live concert promotion and events organizing, provided through Skyline.

 

The Company’s significant segment expenses for the years ended December 31, 2025 and 2024 are as follows:

 

    For the Year Ended December 31, 2025   For the Year Ended December 31, 2024
    E-sports   Casual
Mobile
Gaming		   Concerts   Corporate   Total   E-sports   Casual
Mobile
Gaming		   Concerts   Corporate   Total
                                         
Revenue                                                                                
In-person   $ 4,941,734     $ -     $ -     $ -     $ 4,941,734     $ 4,669,644     $ -     $ -     $ -     $ 4,669,644  
Multiplatform content     204       -       -       -       204       336       -       -       -       336  
Casual mobile gaming     -       3,033,281       -       -       3,033,281       -       4,409,192       -       -       4,409,192  
Total Revenue     4,941,938       3,033,281       -       -       7,975,219       4,669,980       4,409,192       -       -       9,079,172  
                                                                                 
Less                                                                                
In-person (excludes depreciation)     2,766,944       -       -       -       2,766,944       2,496,618       -       -       -       2,496,618  
Casual mobile gaming (excludes depreciation)     -       2,845,673       -       -       2,845,673       -       3,875,992       -       -       3,875,992  
Professional fees     235,758       142,165       506,077       20,224,962       21,108,962       312,673       175,184       202,427       5,871,617       6,561,901  
Salaries and benefits     2,521,151       239,537       353,983       925,449       4,040,120       2,386,885       735,522       27,649       1,347,789       4,497,845  
Selling and marketing expense     31,064       -       3,715       187,665       222,444       22,959       -       4,500       259,780       287,239  
Other expenses [1]     1,056,352       21,458       9,432       1,132,058       2,219,300       986,999       50,059       74,475       752,742       1,864,275  
Depreciation and amortization     880,661       591,834       -       83,634       1,556,129       910,605       553,601       -       121,329       1,585,535  
Stock based compensation     -       -       -       496,722       496,722       21,063       -       -       1,078,214       1,099,277  
CECL reserve     -       -       -       2,601,155       2,601,155                                          
Impairment of long-lived assets     4,419,227       2,672,237       -       156,269       7,247,733       -       -       -       357,826       357,826  
Impairment of goodwill     -       668,818       -       -       668,818       -       9,567,000       -       -       9,567,000  
Research and development expense     -       273,708       -       984,236       1,257,944       -       191,310       -       -       191,310  
Total Expense     11,911,157       7,455,430       873,207       26,792,150       47,031,944       7,137,802       15,148,668       309,051       9,789,297       32,384,818  
                                                                                 
Segment loss     (6,969,219 )     (4,422,149 )     (873,207 )     (26,792,150 )     (39,056,725 )     (2,467,822 )     (10,739,476 )     (309,051 )     (9,789,297 )     (23,305,646 )
                                                                                 
Reconciliation of profit or loss                                                                                
All other items (2)     1,243       (565,237 )     121,691       (3,454,255 )     (3,896,558 )     67,185       747,047       11,587       (1,130,031 )     (304,212 )
Consolidated pre-tax net loss   $ (6,970,462 )   $ (3,856,912 )   $ (994,898 )   $ (23,337,895 )   $ (35,160,167 )   $ (2,535,007 )   $ (11,486,523 )   $ (320,638 )   $ (8,659,266 )   $ (23,001,434 )

 

[1] Other expenses include insurance, utilities, repair and maintenance, office supplies, sales and marketing, travel and entertainment, rent, and property tax expenses.

 

[2] All other items include gains and losses in escrow settlement, investments in money market funds and marketable securities, foreign currency transactions, and other income and expenses including interest.

 

The Company’s significant segment assets as of December 31, 2025 and 2024 are as follows:

 

    As of December 31, 2025   As of December 31, 2024
    E-sports   Casual
Mobile
Gaming		   Concerts   Corporate   Total   E-sports   Casual
Mobile
Gaming		   Concerts   Corporate   Total
                                         
Total assets for reportable segments:                                                                                
Goodwill and intangible assets, net   $ -     $ -     $ -     $ -     $ -     $ 17,807     $ -     $ -     $ 196,625     $ 214,432  
Goodwill and intangible assets, net - foreign operations     -       4,157,609       -       -       4,157,609       -       7,697,633       -       -       7,697,633  
Property and equipment, net     316,295       -       -       948       317,243       2,970,762       -       -       -       2,970,762  
Property and equipment, net - foreign operations     -       4,862       -       51,844       56,706       -       20,232       -       9,088       29,320  
Other segment assets (1)     1,889,612       -       -       3,360,226       5,249,838       5,930,764       -       -       16,066,687       21,997,451  
Other segment assets - foreign operations     2,400,000       281,526       87,382       77,230,273       79,999,181       -       425,660       7,373,683       71,978,318       79,777,661  
Total consolidated assets   $ 4,605,907     $ 4,443,997     $ 87,382     $ 80,643,291     $ 89,780,577     $ 8,919,333     $ 8,143,525     $ 7,373,683     $ 88,250,718     $ 112,687,259  

 

[1] Other segment assets include cash and cash equivalents, investments, receivables, prepaid expenses and other current assets, digital assets, right-of-use assets, and deposits.

 

The Company’s disaggregated assets by geographic location are as follows:

 

    As of December 31,
    2025   2024
         
Total assets by geographic location:                
United States   $ 5,567,081     $ 25,182,645  
China     84,213,496       87,504,614  
Total consolidated assets   $ 89,780,577     $ 112,687,259  

 

The Company’s disaggregated revenues by geographic location are as follows:

 

    As of December 31,
    2025   2024
         
Total revenues by geographic location:                
United States   $ 4,941,938     $ 4,669,980  
China     3,033,281       4,409,192  
Total consolidated revenues   $ 7,975,219     $ 9,079,172