v3.26.1
OPERATING SEGMENTS
 6 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
OPERATING SEGMENTS

NOTE 18 – OPERATING SEGMENTS

 

The Company’s Chief Operating Decision Maker (“CODM”) is our Founder, Chief Executive Officer, Chief Strategy Officer, and Chairman Mr. Hai Shi. The CODM assesses performance and decides how to allocate resources based on net income (loss) to evaluate operational efficiency and direct resources of the Company. Segment assets are reported on the condensed consolidated balance sheets as total assets. The table below presents segment revenue, operating profit and significant expenses for the three and six months ended June 30, 2026 and 2025:

 

             
   Three Months Ended June 30,   Six Months Ended June 30, 
   2026   2025   2026   2025 
                 
Revenues, net  $19,676,448   $22,185,750   $46,971,102   $42,296,622 
Cost of revenues   11,988,665    15,231,005    27,626,878    29,494,350 
                     
Gross profit   7,687,783    6,954,745    19,344,224    12,802,272 
                     
Operating expenses:                    
Salaries and wages   1,936,836    2,729,107    3,956,577    5,622,187 
Public company expenses   377,009    198,293    546,838    361,799 
General and administrative   2,661,405    547,689    5,122,592    2,455,454 
Research and development   4,453,153    3,293,409    8,467,822    6,903,154 
Advertising and marketing   814,705    1,520,201    1,683,494    2,826,567 
Depreciation and amortization   12,834    67,761    25,568    135,665 
Impairment of film assets   

96,838

    

415,719

    

165,987

    

415,719

 
Total operating expenses   10,352,780    8,772,179    19,968,878    18,720,545 
                     
Loss from operations   (2,664,997)   (1,817,434)   (624,654)   (5,918,273)
                     
Total other expense, net   (509,906)   (876,674)   (308,869)   (193,630)
                     
Loss before (benefit from) provision for income taxes   (3,174,903)   (2,694,108)   (933,523)   (6,111,903)
                     
(Benefit from) provision for income taxes   (133,629)   13,868,598    (26,805)   12,397,768 
                     
Net loss  $(3,041,274)  $(16,562,706)  $(906,718)  $(18,509,671)

 

Depreciation expense is consistent with those presented in the condensed consolidated statements of cash flows. There are no additional segment items requiring separate disclosure. Interest income, interest expense, other income and foreign currency transactions are captured in the total other expense, net line item. The Company continues to report revenue by geographic region as part of its revenue disclosures, see Note 3 – Revenue from Contracts with Customers. The CFO provides reports to the CODM for key decision making purposes.