| SEGMENT INFORMATION AND REVENUE ANALYSIS |
NOTE 21 — SEGMENT INFORMATION AND REVENUE ANALYSIS The Company follows ASC 280, Segment Reporting, which requires that companies to disclose segment data based on how management makes decision about allocating resources to each segment and evaluating their performances. The Company has one reporting segment. The Company’s chief operating decision maker has been identified as the Chief Executive Officer, who reviews consolidated results when making decisions about allocating resources and assessing performance of the Company. The Company’s long-lived assets are all located in China, and the amount of long-lived assets attributable to any individual other country is not material. The following table presents the Company’s revenue disaggregated by geographic region based on the location of customers for the years ended December 31, 2025, 2024 and 2023: | | | | | | | | | | | | For the years ended | | | December 31, | | | 2025 | | 2024 | | 2023 | PRC | | $ | 13,495,375 | | | 36,184,886 | | | 31,457,908 | Hong Kong | | | 7,988,415 | | | — | | | — | United States | | | 938,745 | | | 852,222 | | | — | Malaysia | | | 106,002 | | | — | | | — | Nepal | | | 8,479 | | | — | | | — | Total | | $ | 22,537,016 | | $ | 37,037,108 | | $ | 31,457,908 |
The following table presents the summary information for the only one reporting segment: | | | | | | | | | | | | Year Ended December 31, | | | 2025 | | 2024 | | 2023 | | | US$ | | US$ | | US$ | Revenues | | $ | 22,537,016 | | $ | 37,037,108 | | $ | 31,457,908 | Cost of revenues | | | (3,653,278) | | | (4,383,363) | | | (4,227,409) | Gross profit | | | 18,883,738 | | | 32,653,745 | | | 27,230,499 | Operating expenses: | | | | | | | | | | Selling and marketing expenses | | | (10,264,507) | | | (4,061,116) | | | (2,547,000) | General and administrative expenses | | | (14,119,024) | | | (7,103,226) | | | (8,546,880) | Research and development expenses | | | (20,131,012) | | | (6,174,365) | | | (4,274,894) | Total operating expenses | | | (44,514,543) | | | (17,338,707) | | | (15,368,774) | Income/(loss) from operations | | | (25,630,805) | | | 15,315,038 | | | 11,861,725 | Interest expense | | | (737,671) | | | (576,752) | | | (285,833) | Interest income | | | 301 | | | 393 | | | 1,562 | Subsidy income | | | 93,394 | | | 266 | | | 791,959 | Other expenses, net | | | (100,195) | | | (651,657) | | | (10,211) | Income/(loss) before income tax | | | (26,374,976) | | | 14,087,288 | | | 12,359,202 |
The Company has disclosed the type of revenue by type of customers as follows. | | | | | | | | | | | | For the years ended | | | December 31, | | | 2025 | | 2024 | | 2023 | Distributors | | $ | 18,407,591 | | $ | 17,220,009 | | $ | 14,995,701 | Direct customers(1) | | | 4,129,425 | | | 19,817,099 | | | 16,462,207 | Total | | $ | 22,537,016 | | $ | 37,037,108 | | $ | 31,457,908 |
| (1) | Revenue from direct customers include revenue from sales of medical devices to hospitals (i.e. directly or through deliverers). |
Timing of revenue recognition | | | | | | | | | | | | For the years ended | | | December 31, | | | 2025 | | 2024 | | 2023 | At a point of time | | $ | 22,537,016 | | $ | 37,037,108 | | $ | 31,457,908 |
Furthermore, the Company has disclosed revenue by major product type as follows: | | | | | | | | | | | | For the years ended | | | December 31, | | | 2025 | | 2024 | | 2023 | MWA devices | | $ | 22,537,016 | | $ | 37,027,277 | | $ | 30,940,383 | – MWA needles | | | 17,214,751 | | | 33,826,455 | | | 26,278,169 | – MWA therapeutic apparatus | | | 5,322,265 | | | 3,200,822 | | | 4,662,214 | Other medical devices | | | — | | | 9,831 | | | 517,525 | Total | | $ | 22,537,016 | | $ | 37,037,108 | | $ | 31,457,908 |
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