v3.26.3
Segment Reporting
 6 Months Ended
Jun. 30, 2026
Segment Reporting  
Segment Reporting

23. Segment Reporting

 

The chief operating decision maker (“CODM”) is the Chief Executive Officer. As of January 1, 2024, the Company has determined that it has one reporting segment which is solar energy systems, which includes BESS systems, and LED lighting in the United States. The Company has not generated any revenue from its China operations since 2021, it does not have any contracts for services in China, it does not have any marketing activities in China and its China operations is no longer considered a reporting segment. The CODM regularly reviews operations and financial performance at the consolidated level and uses net income (loss) to allocate resources (including labor, technology and capital resources) for the single reporting segment to make decisions regarding annual budget, entering new markets, marketing decisions, pursuing new business, and driving the Company’s mission.

 

The following table shows the operations of the Company’s reporting segment 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

 

Segment revenue

 

 

 

 

 

 

 

 

 

 

 

 

Large-scale EPC contracts

 

$809,154

 

 

$-

 

 

$6,009,606

 

 

$-

 

Solar energy systems

 

 

7,068,394

 

 

 

5,006,963

 

 

 

14,967,616

 

 

 

10,458,002

 

Battery only sales

 

 

181,065

 

 

 

864,327

 

 

 

359,019

 

 

 

1,192,360

 

LED operations

 

 

2,125,371

 

 

 

911,092

 

 

 

3,608,317

 

 

 

1,970,277

 

 

 

 

10,183,984

 

 

 

6,782,382

 

 

 

24,944,558

 

 

 

13,620,639

 

Reconciliation of revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Finance revenue

 

 

32,498

 

 

 

80,991

 

 

 

86,237

 

 

 

152,897

 

Other non-core revenue

 

 

27,130

 

 

 

19,631

 

 

 

43,434

 

 

 

36,937

 

 

 

 

10,243,612

 

 

 

6,883,004

 

 

 

25,074,229

 

 

 

13,810,473

 

Less

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Direct and indirect costs

 

 

5,669,098

 

 

 

3,541,003

 

 

 

15,113,397

 

 

 

6,156,930

 

China legal judgment

 

 

 4,264,102

 

 

 

 -

 

 

 

 4,264,102

 

 

 

 -

 

Subcontractor costs

 

 

1,018,436

 

 

 

798,596

 

 

 

2,057,659

 

 

 

1,517,624

 

Commissions and lender fees

 

 

352,097

 

 

 

1,190,589

 

 

 

902,668

 

 

 

2,432,893

 

Compensation and benefits

 

 

1,745,535

 

 

 

1,803,711

 

 

 

3,415,231

 

 

 

3,747,394

 

Leasing and rental expense

 

 

259,526

 

 

 

169,460

 

 

 

550,682

 

 

 

379,152

 

Insurance expense

 

 

301,200

 

 

 

312,771

 

 

 

656,143

 

 

 

617,540

 

Selling and marketing expense

 

 

49,566

 

 

 

70,691

 

 

 

92,193

 

 

 

149,703

 

Professional services

 

 

521,233

 

 

 

333,338

 

 

 

1,283,715

 

 

 

812,024

 

 

 

 

(3,937,181)

 

 

(1,337,155)

 

 

(3,261,561)

 

 

(2,002,787)

Reconciliation of segment profit or loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other corporate overhead expense

 

 

233,602

 

 

 

249,618

 

 

 

477,314

 

 

 

521,370

 

Provision for various reserves

 

 

35,008

 

 

 

5,627

 

 

 

103,333

 

 

 

129,048

 

Interest expense, net

 

 

248,057

 

 

 

548,779

 

 

 

545,306

 

 

 

804,457

 

Other (gains) and other (income), net

 

 

254,855

 

 

 

(153,784)

 

 

137,369

 

 

 

(251,439)

China other expenses

 

 

287,353

 

 

 

19,926

 

 

 

786,717

 

 

 

121,990

 

Elimination adjustment

 

 

(314,318)

 

 

(2,327)

 

 

(316,857)

 

 

36,657

 

Income (loss) before income taxes

 

$(4,681,738)

 

$(2,004,994)

 

$(4,994,743)

 

$(3,364,870)