| BUSINESS SEGMENT |
5. BUSINESS
SEGMENT
During the three and six months ended June 30,
2026, the Company managed and operated its business into two reportable business segments:
| – |
Supply chain segment |
Provision of supply chain management services, covering procurement, logistics, warehousing and inventory sourcing |
| – |
Financial segment |
Provision of financial consulting service |
The CODM assesses segment financial performance
by reviewing segment revenue and segment operating income. The CODM will make decisions to allocate resources based on the review of monthly,
quarterly, and annual financial information categorized by segment. The financial information is presented to the CODM using actual-to-actual
results and budget-to-actual results.
The CODM evaluates performance and allocates resources
to the segments, based on operating results. Adjustments to reconcile segment results with consolidated results are included in the caption
“Corporate,” which primarily includes unallocated corporate activity.
Summarized below is the information about the
Company’s operating results by reporting segments for the periods:
| Schedule of segment information | |
| |
| |
| |
| |
| |
| |
| |
|
| | |
Three Months ended June
30, |
| | |
Supply chain segment | |
Financial segment | |
Corporate | |
Consolidated |
| | |
2026 | |
2025 | |
2026 | |
2025 | |
2026 | |
2025 | |
2026 | |
2025 |
| | |
| |
| |
| |
| |
| |
| |
| |
|
| Revenues, net | |
$ | 1,002,181 | | |
$ | 843,038 | | |
$ | 51,248 | | |
$ | 46,730 | | |
$ | – | | |
$ | – | | |
$ | 1,053,429 | | |
$ | 889,768 | |
| Cost of revenues | |
| (497,209 | ) | |
| (576,468 | ) | |
| (11,408 | ) | |
| (7,410 | ) | |
| – | | |
| – | | |
| (508,617 | ) | |
| (583,878 | ) |
| Gross profit | |
| 504,972 | | |
| 266,570 | | |
| 39,840 | | |
| 39,320 | | |
| – | | |
| – | | |
| 544,812 | | |
| 305,890 | |
| Operating expenses | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Depreciation | |
| (525 | ) | |
| (3,622 | ) | |
| – | | |
| – | | |
| – | | |
| – | | |
| (525 | ) | |
| (3,622 | ) |
| Salaries and wages | |
| (202,266 | ) | |
| (77,486 | ) | |
| (21,396 | ) | |
| (25,305 | ) | |
| – | | |
| – | | |
| (223,662 | ) | |
| (102,791 | ) |
| Professional fees | |
| – | | |
| – | | |
| – | | |
| – | | |
| (15,000 | ) | |
| (32,041 | ) | |
| (15,000 | ) | |
| (32,041 | ) |
| Other general and administrative | |
| (97,041 | ) | |
| (93,794 | ) | |
| (8,168 | ) | |
| (7,310 | ) | |
| (33,858 | ) | |
| (43,142 | ) | |
| (139,067 | ) | |
| (144,246 | ) |
| Operating income | |
| 205,140 | | |
| 91,668 | | |
| 10,276 | | |
| 6,705 | | |
| (48,858 | ) | |
| (75,183 | ) | |
| 166,558 | | |
| 23,190 | |
| Total other incomes (expenses), net | |
| 25 | | |
| 118 | | |
| – | | |
| 35 | | |
| (40,602 | ) | |
| 93,173 | | |
| (40,577 | ) | |
| 93,326 | |
| Income tax expense | |
| (27,805 | ) | |
| (10,916 | ) | |
| (894 | ) | |
| 2,201 | | |
| – | | |
| – | | |
| (28,699 | ) | |
| (8,715 | ) |
| Segment profit (loss) | |
$ | 177,360 | | |
$ | 80,870 | | |
$ | 9,382 | | |
$ | 8,941 | | |
$ | (89,460 | ) | |
$ | 17,990 | | |
$ | 97,282 | | |
$ | 107,801 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| | |
Six Months ended June
30, |
| | |
Supply chain segment | |
Financial segment | |
Corporate | |
Consolidated |
| | |
2026 | |
2025 | |
2026 | |
2025 | |
2026 | |
2025 | |
2026 | |
2025 |
| | |
| |
| |
| |
| |
| |
| |
| |
|
| Revenues, net | |
$ | 1,755,029 | | |
$ | 1,418,752 | | |
$ | 102,142 | | |
$ | 112,039 | | |
$ | – | | |
$ | – | | |
$ | 1,857,171 | | |
$ | 1,530,791 | |
| Cost of revenues | |
| (822,125 | ) | |
| (873,621 | ) | |
| (17,168 | ) | |
| (29,261 | ) | |
| – | | |
| – | | |
| (839,293 | ) | |
| (902,882 | ) |
| Gross profit | |
| 932,904 | | |
| 545,131 | | |
| 84,974 | | |
| 82,778 | | |
| – | | |
| – | | |
| 1,017,878 | | |
| 627,909 | |
| Operating expenses | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Depreciation | |
| (965 | ) | |
| (7,087 | ) | |
| – | | |
| – | | |
| – | | |
| – | | |
| (965 | ) | |
| (7,087 | ) |
| Salaries and wages | |
| (411,043 | ) | |
| (97,216 | ) | |
| (38,804 | ) | |
| (44,588 | ) | |
| – | | |
| – | | |
| (449,847 | ) | |
| (141,804 | ) |
| Professional fees | |
| – | | |
| – | | |
| – | | |
| – | | |
| (30,000 | ) | |
| (80,252 | ) | |
| (30,000 | ) | |
| (80,252 | ) |
| Other general and administrative | |
| (166,303 | ) | |
| (217,050 | ) | |
| (17,040 | ) | |
| (12,366 | ) | |
| (67,199 | ) | |
| (83,920 | ) | |
| (250,542 | ) | |
| (313,336 | ) |
| Operating income | |
| 354,593 | | |
| 223,778 | | |
| 29,130 | | |
| 25,824 | | |
| (97,199 | ) | |
| (164,172 | ) | |
| 286,524 | | |
| 85,430 | |
| Total other incomes (expenses), net | |
| 5,233 | | |
| 371 | | |
| – | | |
| 57 | | |
| (80,615 | ) | |
| 46,058 | | |
| (75,382 | ) | |
| 46,486 | |
| Income tax expense | |
| (35,357 | ) | |
| (19,339 | ) | |
| (894 | ) | |
| 2,201 | | |
| – | | |
| – | | |
| (36,251 | ) | |
| (17,138 | ) |
| Segment profit (loss) | |
$ | 324,469 | | |
$ | 204,810 | | |
$ | 28,236 | | |
$ | 28,082 | | |
$ | (177,814 | ) | |
$ | (118,114 | ) | |
$ | 174,891 | | |
$ | 114,778 | |
| | |
| |
| |
| |
| |
| |
| |
| |
|
| | |
Supply chain segment | |
Financial segment | |
Corporate | |
Consolidated |
| | |
June
30,
2026 | |
December 31, 2025 | |
June
30,
2026 | |
December 31, 2025 | |
June
30,
2026 | |
December 31, 2025 | |
June
30,
2026 | |
December 31, 2025 |
| | |
| |
| |
| |
| |
| |
| |
| |
|
| Property and equipment | |
$ | 2,794,063 | | |
$ | 2,965,233 | | |
$ | – | | |
$ | – | | |
$ | – | | |
$ | – | | |
$ | 2,794,063 | | |
$ | 2,965,233 | |
| Total Assets | |
$ | 4,896,321 | | |
$ | 5,734,390 | | |
$ | 75,066 | | |
$ | 99,228 | | |
$ | 374,538 | | |
$ | 2,351 | | |
$ | 5,345,925 | | |
$ | 5,835,969 | |
|