20. SEGMENT
REPORTING
Prior to the acquisition of QC Capital Limited
in June 2026, the Group operated in a single operating segment. Following the acquisition, the Group operates in two reportable segments:
(1) operational management and delivery services and (2) sales of smart electric vehicles. The determination of operating segments is
consistent with the consolidated financial information regularly reviewed by the Group’s chief operating decision maker (“CODM”)
for the purpose of assessing performance and allocating resources. The measurement of segment assets is reported on the balance sheet
as total unaudited condensed consolidated assets.
The table below provides information about Group’s
segment (in thousands):
| | |
For the six months ended June 30, | |
| | |
2026 | | |
2025 | |
| | |
Sales of
smart electric
vehicles | | |
Operational
management and delivery
services | | |
Corporate
and
unallocated | | |
Total | | |
Consolidated | |
| | |
(Unaudited) | | |
(Unaudited) | |
| Revenues | |
$ | 700 | | |
$ | 54,371 | | |
$ | - | | |
$ | 55,071 | | |
$ | 572 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | |
| Less: | |
| | | |
| | | |
| | | |
| | | |
| | |
| Cost of revenues | |
| (447 | ) | |
| (54,441 | ) | |
| - | | |
| (54,888 | ) | |
| (936 | ) |
| | |
| | | |
| | | |
| | | |
| | | |
| | |
| Segment gross profit (loss) | |
| 253 | | |
| (70 | ) | |
| - | | |
| 183 | | |
| (364 | ) |
| | |
| | | |
| | | |
| | | |
| | | |
| | |
| Less: | |
| | | |
| | | |
| | | |
| | | |
| | |
| Depreciation and amortization | |
| (23 | ) | |
| (167 | ) | |
| (1,429 | ) | |
| (1,619 | ) | |
| (181 | ) |
| Changes in fair value of warrant liabilities | |
| - | | |
| - | | |
| 15 | | |
| 15 | | |
| (45 | ) |
| Changes in fair value of convertible notes | |
| - | | |
| - | | |
| (1,956 | ) | |
| (1,956 | ) | |
| - | |
| Disposal loss of property and equipment | |
| - | | |
| - | | |
| - | | |
| - | | |
| (114 | ) |
| Inventory write-downs | |
| - | | |
| - | | |
| - | | |
| - | | |
| (508 | ) |
| Salary expenses | |
| (1,364 | ) | |
| (14 | ) | |
| - | | |
| (1,378 | ) | |
| (25 | ) |
| Share-based compensation | |
| - | | |
| - | | |
| (31,211 | ) | |
| (31,211 | ) | |
| - | |
| Other operating expenses | |
| (4,524 | ) | |
| (161 | ) | |
| (563 | ) | |
| (5,248 | ) | |
| (1,921 | ) |
| Interest (expenses) income, net | |
| (10 | ) | |
| - | | |
| - | | |
| (10 | ) | |
| 19 | |
| Other income, net | |
| 92 | | |
| - | | |
| - | | |
| 92 | | |
| 784 | |
| Income tax provision | |
| 40 | | |
| - | | |
| - | | |
| 40 | | |
| - | |
| Segment loss | |
$ | (5,536 | ) | |
$ | (412 | ) | |
$ | (35,144 | ) | |
$ | (41,092 | ) | |
$ | (2,355 | ) |
|