v3.26.1
Segment Reporting
 6 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
SEGMENT REPORTING

15. SEGMENT REPORTING

 

The Company has adopted ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which requires disclosure, on both an annual and interim basis, of significant segment expenses regularly provided to the chief operating decision maker (“CODM”) and other segment items.

 

The Company determines its operating segments in accordance with ASC 280, Segment Reporting, based on the information reviewed by the CODM, who is the Company’s Chief Executive Officer in allocating resources and assessing performance. Prior to the acquisition of Fusion Five Continents Securities Limited (“Fusion Five”) on June 1, 2026, the Company operated as a single reportable segment in the beverage alcohol e-commerce and marketing industry. Following the acquisition, the Company has determined that it operates in two reportable segments: (i) beverage alcohol, comprising the Company’s marketing services, e-commerce, and product distribution operations, and (ii) financial services, comprising Fusion Five’s securities brokerage operations. These segments have distinct regulatory environments, customer bases, and revenue and margin structures, and are evaluated separately by the CODM.

 

The CODM evaluates segment performance based on segment revenue and cost of revenue. Other operating expenses, including general and administrative expenses and sales and marketing expenses, together with non-operating items, are reviewed by the CODM on a consolidated basis and are not regularly provided to the CODM disaggregated by segment; accordingly, such amounts are presented below as “Other segment items, net” and are not allocated between segments.

 

The following table presents segment revenues, the significant expense categories regularly provided to the CODM, and segment net income (loss), which is also consolidated net income (loss):

 

    Three Months Ended     Six Months Ended  
    June 30,     June 30,  
    2026     2025     2026     2025  
Segment revenue:                        
Beverage alcohol   $ 308,197     $ 498,528     $ 530,880     $ 927,868  
Financial services     37,778       -       37,778       -  
Total revenue     345,975       498,528       568,658       927,868  
Less: Segment cost of revenue:                                
Beverage alcohol     295,333       414,022       540,252       813,204  
Financial services     4,740       -       4,740       -  
Total cost of revenue     300,073       414,022       544,992       813,204  
Segment gross profit     45,902       84,506       23,666       114,664  
                                 
Less: other segment items, net (unallocated)                                
General and administrative     1,263,129       2,207,612       4,044,029       4,230,773  
Sales and marketing     -       80,676       105,000       487,529  
Other segment items, net (1)     (3,919,142 )     (1,400 )     (5,912,309 )     (11,606 )
Segment and consolidated net income (loss)   $ 2,701,915     $ (2,202,382 )   $ 1,786,946     $ (4,592,032 )

 

(1) Other segment items comprise interest expense, loss on disposition of assets, the gain on remeasurement of the previously held equity interest in Fusion Five, other income and income tax expense (benefit). These items are not regularly provided to the CODM at a more disaggregated level.

 

The measure of segment assets reviewed by the CODM is consolidated total assets as presented on the condensed consolidated balance sheets, as segment-level asset information is not regularly provided to the CODM.

 

    June 30,     December 31,  
    2026     2025  
Segment and consolidated total assets   $ 140,189,099     $  31,232,458  

 

Geographic Information

 

The Company’s revenues are generated primarily in the United States. The Company’s subsidiary, YHC Online Limited, is incorporated and operates in Hong Kong; however, it did not generate revenue during the three and six months ended June 30, 2026 and 2025. Following the acquisition of Fusion Five, a New Zealand entity, on June 1, 2026, the Company generated revenue of $37,778 from Fusion Five’s brokerage operations during the three and six months ended June 30, 2026. Substantially all other revenues are attributable to the United States. Revenues are attributed to countries based on the location of the entity generating the revenue:

 

    Three Months Ended     Six Months Ended  
    June 30,     June 30,  
    2026     2025     2026     2025  
United States   $ 308,197     $ 498,528     $ 530,880     $ 927,868  
New Zealand (Fusion Five)     37,778       -       37,778       -  
Total revenues   $ 345,975     $ 498,528     $ 568,658     $ 927,868