Note 22- Segment Reporting

3 Months Ended

Mar. 31, 2020

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

22. Segment reporting

The Company follows ASC Topic

280

“Segment Reporting”, which requires that companies disclose segment data based on how management makes decisions about allocating resources to segments and evaluating their performance. Reportable operating segments include components of an entity about which separate financial information is available and which operating results are regularly reviewed by the chief operating decision maker (“CODM”), the Company’s Chief Executive Officer, to make decisions about resources to be allocated to the segment and assess each operating segment’s performance.

Previously, the Company had

four

reportable segments, which were Internet advertising and related services, TV advertising service, Blockchain technology and Corporate. From fiscal

2020,

the Company has a new reportable segment, which is Ecommerce

O2O

advertising and marketing services segment. In additional, due to the Company’s TV advertising business gradually became dormant since fiscal

2019,

and the remaining general operating expenses, net loss and total assets amounts of the Company’s TV advertising segment were and are expected to continue be immaterial, the Company combines the results of operations of its TV advertising segment and other disclosure information with its new Ecommerce

O2O

advertising and marketing services segment in fiscal

2020.

As a result, the related disclosures for the respective corresponding periods in fiscal

2019

have been reclassified in comfort with the disclosures in fiscal

2020.

Three Months Ended

March 31, 2020 (

Unaudited)

		Internet Ad and related services			Ecommerce O2O Ad and marketing services		Blockchain technology			Corporate			Inter- segment and reconciling item			Total
	US$(‘000)			US$(‘000)		US$(‘000)			US$(‘000)			US$(‘000)			US$(‘000)
Revenues		3,236			503		-			645			-			4,384
Cost of revenues		3,110			375		-			-			-			3,485
Total operating expenses		1,022			4		1			2,148	(1)		-			3,175
Depreciation and amortization expense included in total operating expenses		206			-		-			1			-			207
Operating (loss)/income		(896	)		124		(1	)		(1,503	)		-			(2,276	)
Change in fair value of warrant liabilities		-			-		-			46			-			46
Net (loss)/income		(893	)		103		(1	)		(1,519	)		-			(2,310	)
Expenditure for long-term assets		-			-		302			-			-			302
Total assets-March 31, 2020		11,521			2,844		4,180			21,940			(21,991	)		18,494
Total assets-December 31, 2019		13,332			2,075		3,885			21,338			(22,079	)		18,551

( 1 ) Including approximately US$1,919 thousands share-based compensation expenses.

Three Months Ended

March 31, 2019 (

Unaudited)

	Internet Ad. and related services			Ecommerce O2O Ad and marketing services			Blockchain technology			Corporate			Inter- segment and reconciling item		Total
	US$ (‘000)			US$ (‘000)			US$ (‘000)			US$ (‘000)			US$ (‘000)		US$ (‘000)
Revenues		8,567			-			-			-			-		8,567
Cost of revenues		8,125			-			-			-			-		8,125
Total operating expenses		705			18			5			452	(1)		-		1,180
Depreciation and amortization expense included in total operating expenses		23			-			-			15			-		38
Operating loss		(263	)		(18	)		(5	)		(452	)		-		(738	)
Change in fair value of warrant liabilities		-			-			-			(350	)		-		(350	)
Net loss		(315	)		(19	)		(5	)		(801	)		-		(1,140	)

( 1 ) Including approximately US$101 thousands share-based compensation expenses.