Note 22- Segment Reporting

6 Months Ended

Jun. 30, 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.

Six Months Ended

June 30, 2020 (

Unaudited)

	Internet Ad and related service			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		13,148			1,007		-			645			-			14,800
Cost of revenues		12,853			750		-			-			-			13,603
Total operating expenses		1,952			9		4			2,528	(1)		-			4,493
Depreciation and amortization expense included in total operating expenses		412			-		1			2			-			415
Operating (loss)/income		(1,657	)		248		(4	)		(1,883	)		-			(3,296	)
Change in fair value of warrant liabilities		-			-		-			68			-			68
Expenditure for long-term assets		-			-		302			-			-			302
Net (loss)/income		(1,650	)		204		(4	)		(1,830	)		-			(3,280	)
Total assets-June 30, 2020		10,656			2,464		4,180			21,659			(21,885	)		17,074
Total assets-December 31, 2019		13,332			2,075		3,885			21,338			(22,079	)		18,551

( 1 ) Including approximately US$1,987 thousands share-based compensation expenses.

Three Months Ended

June 30, 2020 (

Unaudited)

	Internet Ad. and related service			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		9,912			504		-			-			-		10,416
Cost of revenues		9,743			375		-			-			-		10,118
Total operating expenses		930			5		3			380	(1)		-		1,318
Depreciation and amortization expense included in total operating expenses		206			-		1			1			-		208
Operating (loss)/income		(761	)		124		(3	)		(380	)		-		(1,020	)
Change in fair value of warrant liabilities		-			-		-			22			-		22
Net (loss)/income		(757	)		101		(3	)		(311	)		-		(970	)

( 1 ) Including approximately US$68 thousands share-based compensation expenses.

Six Months Ended

June 30, 2019 (

Unaudited)

	Internet Ad and related service			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		24,020			-			-			-			-		24,020
Cost of revenues		23,212			-			-			-			-		23,212
Total operating expenses		1,850			36			11			871	(1)		-		2,768
Depreciation and amortization expense included in total operating expenses		35			-			1			16			-		52
Operating loss		(1,042	)		(36	)		(11	)		(871	)		-		(1,960	)
Change in fair value of warrant liabilities		-			-			-			471			-		471
Net loss		(1,075	)		(36	)		(11	)		(400	)		-		(1,522	)

( 1 ) Including approximately US$203 thousands share-based compensation expenses.

Three Months Ended

June 30, 2019 (

Unaudited)

	Internet Ad and related service			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		15,453			-			-			-			-		15,453
Cost of revenues		15,087			-			-			-			-		15,087
Total operating expenses		1,145			18			6			419	(1)		-		1,588
Depreciation and amortization expense included in total operating expenses		12			-			1			1			-		14
Operating loss		(779	)		(18	)		(6	)		(419	)		-		(1,222	)
Change in fair value of warrant liabilities		-			-			-			821			-		821
Net (loss)/income		(760	)		(17	)		(6	)		401			-		(382	)

( 1 ) Including approximately US$102 thousands share-based compensation expenses.