v3.26.1
SEGMENT REPORTING
 3 Months Ended 12 Months Ended
Mar. 31, 2026
Dec. 31, 2025
Segment Reporting [Abstract]    
SEGMENT REPORTING

 

12. SEGMENT REPORTING

 

The Company determines its reportable operating segments using the “management approach” in accordance with ASC 280, Segment Reporting. Under this approach, operating segments are based on the internal reporting structure used by the Company’s chief operating decision maker (“CODM”) to allocate resources and assess operating performance. The Company’s Chief Executive Officer serves as the CODM and evaluates segment performance primarily based on segment revenue and segment net income (loss).

 

The Company operates online stores on e-commerce platforms with separate platform accounts serving North America and Europe. Accordingly, the Company has identified two reportable operating segments: (1) North America (including assets and operating results of AMCV) and (2) Europe. Revenue generated through these e-commerce platforms is the primary performance indicator, as the Company’s business model is focused on selling products through online marketplace stores.

 

Following the termination of the Company’s variable interest entity (“VIE”) arrangements in December 2025, the Company no longer has operations in China, and therefore does not present a China segment for the three months ended March 31, 2026.

 

 

Segment revenues are directly attributed to the geographic region in which the sales are generated. Cost of revenues and operating expenses are allocated based on the relative proportion of revenue generated by each segment. Interest income and interest expense are allocated based on the use of underlying assets or liabilities within each segment. Other segment expenses are not material individually and are not presented separately.

 SCHEDULE OF SEGMENT REPORTING

   North America   Europe   Total   North America   Europe   China   Total 
   Three months ended   Three months ended 
   March 31,   March 31, 
   2026   2025 
   North America   Europe   Total   North America   Europe   China   Total 
                             
REVENUES                                   
Product revenue  $104,528   $-   $104,528   $823,942   $397,861   $-   $1,221,803 
Product revenue - related party   132,854    1,184    134,038    134    -    -    134 
Revenue share – related party   752,256    3,752    756,008    384,805    185,783    -    570,588 
Intelligent Information Service - related party   156,601    781    157,382    -    -    -    - 
AI Service Sharing - related party   32,498    162    32,660    -    -    -    - 
Total Revenues   1,178,737    5,879    1,184,616    1,208,881    583,644    -    1,792,525 
Less:                                   
Cost of Revenue:                                   
E-commerce platform expenses   16,494    82    16,576    240,065    115,903    -    355,968 
Product cost   139,618    1,184    140,802    613,452    296,172    -    909,624 
Delivery and freight cost   6,242    31    6,273    8,888    4,290    -    13,178 
Inventory impairment losses   307    2    309    17,147    8,278    -    25,425 
Total Cost of Revenue   162,661    1,299    163,960    879,552    424,643    -    1,304,195 
Gross Profit   1,016,076    4,580    1,020,656    329,329    159,001    -    488,330 
Less:                                   
Operating Expenses:                                   
Marketing and advertising   9,418    47    9,465    266,176    128,510    -    394,686 
Consulting fee   33,444    167    33,611    60,052    28,993    -    89,045 
Warranty expense   1,493    7    1,500    6,357    3,069    -    9,426 
Payroll expenses   218,814    1,091    219,905    81,408    39,304    -    120,712 
Professional fees   320,628    1,599    322,227    286,401    138,273    -    424,674 
Travel and entertainment   29,589    148    29,737    17,399    8,400    -    25,799 
(Reversal)/provision for credit losses - related party   -    -    -    -    -    -    - 
Office expenses   19,352    97    19,449    4,068    1,965    -    6,033 
Sales tax   14,510    72    14,582    11,359    5,484    -    16,843 
State B&O tax   -    -    -    30    -    -    30 
Other segment expenses   240,441    1,199    241,640    100,088    48,323    424    148,835 
Plus:                                   
Other Income/(Expenses):                                   
Marketing campaign   -    -    -    461,222    222,676    -    683,898 
Interest income   28,509    142    28,651    318    -    -    318 
Loss on deconsolidation   -    -    -              -      
Interest expense   -    -    -    (9)   -    (16,493)   (16,502)
Other income   -    -    -    9,516    4,594    -    14,110 
Other expense   (9,443)   (47)   (9,490)   (4,670)   (2,255)   -    (6,925)
Less:                                   
Income tax   (2,089)   (10)   (2,099)   4,323    -    -    4,323 
Segment Net Income (Loss)  $145,363   $238   $145,601   $(41,955)  $(18,305)  $(16,917)  $(77,177)

 

 

The following table presents total assets by segment as of March 31, 2026 and December 31, 2025.

 

   North America   Europe   Total   North America   Europe   China   Total 
   March 31, 2026   December 31, 2025 
   North America   Europe   Total   North America   Europe   China   Total 
TOTAL SEGMENT ASSETS  $11,243,622   $56,080   $11,299,702   $7,595,063   $3,577,523    -   $11,172,586 

 

 

15. SEGMENT REPORTING

 

The Company determines its reportable operating segments using the “management approach” in accordance with ASC 280, Segment Reporting. Under this approach, operating segments are based on the internal reporting structure used by the Company’s chief operating decision maker (“CODM”) to allocate resources and assess operating performance.

 

The Company’s Chief Executive Officer serves as the CODM and evaluates segment performance primarily based on segment revenue and segment net income (loss).

 

The Company operates online stores on e-commerce platforms with separate platform accounts serving North America and Europe. Accordingly, the Company has identified two primary operating segments: (1) North America and (2) Europe. Revenue generated through these e-commerce platforms is the primary performance indicator because the Company’s business model is based on selling products through online marketplace stores.

 

In addition, the Company previously consolidated two variable interest entities (“VIEs”), Xiaoyun and Yishijue, which operated in China. As a result, for purposes of geographic presentation, the Company presents financial information for three geographic areas: North America, Europe, and China. No revenue was generated from China during the year ended December 31, 2025.

 

 

Segment revenues are directly attributed to the geographic region in which the sales are generated. Cost of revenues and operating expenses are allocated based on the relative proportion of revenue generated by each segment. Interest income and interest expense are allocated based on the use of underlying assets or liabilities within each segment.

 

Other segment expenses primarily include Amazon storage fees, employee medical insurance expenses, software subscription fees, and business license and permit expenses. These costs are not material individually and are therefore not presented separately.

 

                         
   Years ended   Years ended 
   December 31,   December 31, 
   2025 (Restated)   2024 
   North America   Europe   China   Total   North America   Europe   China   Total 
                                 
REVENUES                                        
Product revenue  $1,558,592    787,882    -    2,346,474   $5,454,400   $1,985,499   $-   $7,439,899 
Product revenue - related party   387,136    128,620    -    515,756    6,270    -    -    6,270 
Revenue share – related party   1,968,655    927,301    -    2,895,956    2,020,232    734,556    -    2,754,788 

Intelligent Information service

   151,364    71,297    -    222,661    -    -    -    - 
Total Revenues   4,065,747    1,915,100         5,980,847    7,480,902    2,720,055    -    10,200,957 
Less:                                        
Cost of Revenue:                                        
E-commerce platform expenses   455,738    214,667    -    670,405    1,495,826    543,882    -    2,039,708 
Product cost   1,511,260    711,853    -    2,223,113    4,401,924    1,600,539    -    6,002,463 
Delivery and freight cost   48,364    22,781    -    71,145    129,401    47,050    -    176,451 
Inventory impairment losses   110,832    52,205    -    163,037    972,686    353,669    -    1,326,355 
Total Cost of Revenue   2,126,193    1,001,506    -    3,127,699    6,999,837    2,545,140    -    9,544,977 
Gross Profit   1,939,554    913,594    -    2,853,148    481,065    174,915    -    655,980 
Less:                                        
Operating Expenses:                                        
Marketing and advertising   416,708    196,284    -    612,992    1,455,946    529,382    -    1,985,328 
Consulting fee   159,691    75,220    -    234,911    400,619    145,665    -    546,284 
Warranty expense   -    -    -    -    29,865    10,859    -    40,724 
Payroll expenses   197,470    93,014    -    290,484    246,716    89,706    -    336,422 
Professional fees   1,106,593    521,242    -    1,627,835    674,159    245,124    -    919,283 
Travel and entertainment   43,659    20,564    -    64,223    483    176    -    659 
(Reversal)/provision for credit losses - related party   -    -    -    -    (925,599)   (336,547)   -    (1,262,146)
Office expenses   14,857    6,998    -    21,855    6,472    2,353    -    8,825 
Sales tax   20,029    9,435    -    29,464    47,217    17,168    -    64,385 
State B&O tax   21    9    -    30    5,509    -    -    5,509 
Other segment expenses   398,048    187,494         585,542    204,954    75,786    217    280,957 
Plus:                                        
Other Income/(Expenses):                                        
Marketing campaign   827,708    389,878    -    1,217,586    1,305,022    474,506    -    1,779,528 
Interest income   9,798    4,615    -    14,413    674    -    2    676 
Loss on deconsolidation   (3,610)   (1,700)   -    (5,310)   -    -    -    - 
Interest expense   (16,734)   (7,882)   -    (24,616)   (19,616)   -    (7,326)   (26,942)
Loss from the change of the FV of Warrant Liability   (17,368,256)   (8,181,016)      (25,549,272)   -    -    -    - 
Other income   -    -    -    -    40,384    14,684    0    55,068 
Other expense   26,971    12,704    -    39,675    (17,227)   (6,264)   -    (23,491)
Less:                                        
Income tax   (4,651)   -         (4,651)   7,824    -    -    7,824 
Segment Net Income (Loss)  $(16,946,296)    (7,980,068)    -    (24,926,364)  $(571,434)  $(196,039)  $(9,487)  $(776,960)

 

 

The following table presents total assets by segment as of December 31, 2025 and 2024.

 

                         
   December 31, 2025   December 31, 2024 
   North America   Europe   China   Total   North America   Europe   China   Total 
TOTAL SEGMENT ASSETS  $7,595,063   $3,577,523   $-   $11,172,586   $5,388,357   $1,959,205   $2,089   $7,349,651