Note 22 - Segment Reporting

9 Months Ended

Sep. 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.

Nine Months Ended

September 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		24,583			1,276		-			1,245			-			27,104
Cost of revenues		24,847			1,125		-			576			-			26,548
Total operating expenses		2,361			15		5			2,875	(1)		-			5,256
Depreciation and amortization expense included in total operating expenses		617			-		2			3			-			622
Operating (loss)/income		(2,625	)		136		(5	)		(2,206	)		-			(4,700	)
Change in fair value of warrant liabilities		-			-		-			4			-			4
Expenditure for long-term assets		-			-		302			-			-			302
Net (loss)/income		(2,543	)		110		(5	)		(2,175	)		-			(4,613	)
Total assets- September 30, 2020		10,830			2,093		4,193			21,224			(21,330	)		17,010
Total assets-December 31, 2019		13,332			2,075		3,885			21,338			(22,079	)		18,551

( 1 ) Including approximately US$2,066 thousands share-based compensation expenses.

Three Months Ended

September 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		11,435			269			-			600			-		12,304
Cost of revenues		11,994			375			-			576			-		12,945
Total operating expenses		409			6			1			347	(1)		-		763
Depreciation and amortization expense included in total operating expenses		205			-			1			1			-		207
Operating loss		(968	)		(112	)		(1	)		(323	)		-		(1,404	)
Change in fair value of warrant liabilities		-			-			-			(64	)		-		(64	)
Net loss		(893	)		(94	)		(1	)		(345	)		-		(1,333	)

( 1 ) Including approximately US$79 thousands share-based compensation expenses.

Nine Months Ended

September 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		39,528			-			-			-			-		39,528
Cost of revenues		37,828			-			-			-			-		37,828
Total operating expenses		2,525			42			18			1,350	(1)		-		3,935
Depreciation and amortization expense included in total operating expenses		47			-			2			17			-		66
Operating loss		(825	)		(42	)		(18	)		(1,350	)		-		(2,235	)
Change in fair value of warrant liabilities		-			-			-			351			-		351
Expenditure for long-term assets		760			-			-			-			-		760
Net loss		(854	)		(42	)		(18	)		(999	)		-		(1,913	)

( 1 ) Including approximately US$307 thousands share-based compensation expenses.

Three Months Ended

September 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		15,508		-			-			-			-		15,508
Cost of revenues		14,616		-			-			-			-		14,616
Total operating expenses		675		6			7			479	(1)		-		1,167
Depreciation and amortization expense included in total operating expenses		12		-			1			1			-		14
Operating income/(loss)		217		(6	)		(7	)		(479	)		-		(275	)
Change in fair value of warrant liabilities		-		-			-			(120	)		-		(120	)
Expenditure for long-term assets		760		-			-			-			-		760
Net income/(loss)		221		(6	)		(7	)		(599	)		-		(391	)

( 1 ) Including approximately US$104 thousands share-based compensation expenses.