v3.26.1
Segment Data
 6 Months Ended
Jun. 30, 2026
Segment Data [Abstract]  
Segment Data

Note 14 – 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 maker is our President. The President assesses performance for the segments and decides 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:

 

  ● Esports, provided through Allied Esports, including video game events and tournaments.

 

  ● Casual mobile gaming, provided through ZTech.

 

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

 

 

The Company’s significant segment revenue and expenses for the three and six months ended June 30, 2026 and 2025 are as follows:

 

    For the Three Months Ended
June 30, 2026		     For the Three Months Ended
June 30, 2025		  
    E-sports     Casual Mobile Gaming     Concerts     Corporate     Total     E-sports     Casual Mobile Gaming     Concerts     Corporate     Total  
Revenue                                                            
In-person   $ 812,979     $ -     $ -     $ -     $ 812,979     $ 1,160,995     $ -     $ -     $ -     $ 1,160,995  
Multiplatform content     -       -       -       -       -       80       -       -       -       80  
Casual mobile gaming     -       393,487       -       41,421       434,908       -       758,408       -       -       758,408  
Total Revenue     812,979       393,487       -       41,421       1,247,887       1,161,075       758,408       -       -       1,919,483  
Costs and Expenses                                                                                
In-person (excludes depreciation)     450,311       -       -       -       450,311       617,717       -       -       -       617,717  
Casual mobile gaming (excludes depreciation)     -       339,362       -       -       339,362       -       736,382       -       -       736,382  
Professional fees     409       38,857       525,000       1,449,555       2,013,821       109,828       38,498       139,760       3,993,667       4,281,753  
Salaries and benefits     337,350       -       16,636       266,832       620,818       597,085       82,597       80,107       286,459       1,046,248  
Selling and marketing expense     2,538       -       -       6,927       9,465       6,877       -       -       74,794       81,671  
Other expenses [1]     123,719       726,712       8,491       1,844       860,766       246,901       3,313       2,193       271,664       524,071  
Depreciation and amortization     45,296       152,188       -       16,295       213,779       219,929       150,335       -       19,448       389,712  
Stock based compensation     -       -       -       140,422       140,422       3,864       -       -       186,898       190,762  
Gain on lease modification     (3,446,465 )     -       -       -       (3,446,465 )     -       -       -       -       -  
Impairment of goodwill     -       920,227       -       -       920,227       -       -       -       -       -  
Impairment of long-lived assets     -       1,358,362       -       -       1,358,362       -       -       -       -       -  
Research and development expense     -       35,638       -       2,713       38,351       -       28,052       -       115,093       143,145  
Total Expense     (2,486,842 )     3,571,346       550,127       1,884,588       3,519,219       1,802,201       1,039,177       222,060       4,948,023       8,011,461  
Segment income (loss)     3,299,821       (3,177,859 )     (550,127 )     (1,843,167 )     (2,271,332 )     (641,126 )     (280,769 )     (222,060 )     (4,948,023 )     (6,091,978 )
All other segment items (2)     7,345       3       -       322,278       329,626       27,384       -       (104,482 )     1,335,109       1,258,011  
Consolidated pre-tax income (loss)   $ 3,307,166     $ (3,177,856 )   $ (550,127 )   $ (1,520,889 )   $ (1,941,706 )   $ (613,742 )   $ (280,769 )   $ (326,542 )   $ (3,612,914 )   $ (4,833,967 )

 

    For the Six Months Ended
June 30, 2026		     For the Six Months Ended
June 30, 2025		  
    E-sports     Casual Mobile Gaming     Concerts     Corporate     Total     E-sports     Casual Mobile Gaming     Concerts     Corporate     Total  
Revenue                                                            
In-person   $ 1,865,411     $ -     $ -     $ -     $ 1,865,411     $ 2,817,750     $ -     $ -     $ -     $ 2,817,750  
Multiplatform content     53       -       -       -       53       137       -       -       -       137  
Casual mobile gaming     -       894,266       -       41,421       935,687       -       1,376,731       -       -       1,376,731  
Total Revenue     1,865,464       894,266       -       41,421       2,801,151       2,817,887       1,376,731       -       -       4,194,618  
Costs and Expenses                                                                                
In-person (excludes depreciation)     780,312       -       -       -       780,312       1,478,271       -       -       -       1,478,271  
Casual mobile gaming (excludes depreciation)     -       826,883       -       -       826,883       -       1,318,572       -       -       1,318,572  
Professional fees     65,997       102,467       525,000       3,373,554       4,067,018       179,760       70,744       212,075       7,532,400       7,994,979  
Salaries and benefits     815,240       -       16,636       404,351       1,236,227       1,198,546       176,400       129,796       596,236       2,100,978  
Selling and marketing expense     12,068       -       -       8,366       20,434       16,563       -       2,500       102,595       121,658  
Other expenses [1]     369,915       1,452,228       10,296       146,829       1,979,268       512,734       6,367       4,365       575,178       1,098,644  
Depreciation and amortization     90,750       312,617       -       59,627       462,994       439,784       294,323       -       38,043       772,150  
Stock based compensation     -       -       -       140,422       140,422       7,622       -       -       371,576       379,198  
Gain on lease modification     (3,446,465 )     -       -       -       (3,446,465 )     -       -       -       -       -  
Impairment of goodwill     -       920,227       -       -       920,227       -       -       -       -       -  
Impairment of long-lived assets     -       1,358,362       -       -       1,358,362       -       -       -       -       -  
Research and development expense     -       84,159       -       162,192       246,351       -       58,576       -       215,193       273,769  
Total Expense     (1,312,183 )     5,056,943       551,932       4,295,341       8,592,033       3,833,280       1,924,982       348,736       9,431,221       15,538,219  
Segment income (loss)     3,177,647       (4,162,677 )     (551,932 )     (4,253,920 )     (5,790,882 )     (1,015,393 )     (548,251 )     (348,736 )     (9,431,221 )     (11,343,601 )
All other segment items (2)     (62,009 )     344       -       (1,324,891 )     (1,386,556 )     (35,764 )     14,811       (121,737 )     1,752,437       1,609,747  
Consolidated pre-tax income (loss)   $ 3,115,638     $ (4,162,333 )   $ (551,932 )   $ (5,578,811 )   $ (7,177,438 )   $ (1,051,157 )   $ (533,440 )   $ (470,473 )   $ (7,678,784 )   $ (9,733,854 )

 

(1) Other expense includes gain on lease modification and 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, CECL allowances and other income and expenses including interest.

 

The Company’s significant segment assets as of June 30, 2026 and December 31, 2025 are as follows:

 

    As of June 30, 2026     As of December 31, 2025  
    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   $ -     $ 1,867,719     $ -     $ 24     $ 1,867,743     $ -       4,157,609     $ -     $ -     $ 4,157,609  
Property and equipment, net     224,281       18,403       -       47,724       290,408       316,295       4,862       -       52,792       373,949  
Other segment assets (1)     1,084,730       113,119       35,450       58,818,108       60,051,407       4,289,612       281,526       87,382       80,590,499       85,249,019  
Total consolidated assets   $ 1,309,011     $ 1,999,241     $ 35,450     $ 58,865,856     $ 62,209,558     $ 4,605,907     $ 4,443,997     $ 87,382     $ 80,643,291     $ 89,780,577  

 

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

 

    As of  
    June 30,     December 31,  
    2026     2025  
             
Total assets by geographic location:            
United States   $ 7,570,489     $ 5,567,081  
China     54,639,069       84,213,496  
Total consolidated assets   $ 62,209,558     $ 89,780,577  

 

The Company’s disaggregated revenues by geographic location for the three and six months ended June 30, 2026 and 2025 are as follows:

 

    For the Three Months Ended     For the Six Months Ended  
    June 30     June 30  
    2026     2025     2026     2025  
                         
Total revenues by geographic location:                        
United States   $ 854,400     $ 1,161,075     $ 1,906,885     $ 2,817,887  
China     393,487       758,408       894,266       1,376,731  
Total consolidated revenues   $ 1,247,887     $ 1,919,483     $ 2,801,151     $ 4,194,618