BUSINESS SEGMENT INFORMATION

9 Months Ended

Sep. 30, 2022

Segment Reporting [Abstract]

BUSINESS SEGMENT INFORMATION

5.       BUSINESS SEGMENT INFORMATION

Currently, the Company has two reportable business segments:

(i)	Media & Entertainment Segment, which mainly operates an online platform to sell and distribute the licensed IP right and media products to end-users; and
(ii)	Business Consulting Segment, which mainly provides financing, business development solutions and related professional services to the customers.

In the following tables, revenue is disaggregated by primary major product line, and timing of revenue recognition. The tables also include a reconciliation of the disaggregated revenue with the reportable segments. 

	Media & Entertainment Segment			Business Consulting Segment			Total
For the Three Months Ended September 30, 2022
Revenue from external customers:
Media and entertainment income	$	5,421,280		$	–		$	5,421,280
Consulting service income		–			–			–
Total revenues		5,421,280			–			5,421,280
Cost of revenues:
Media and entertainment income		(3,993,787	)		–			(3,993,787	)
Consulting service income		–			–			–
Total cost of revenues		(3,993,787	)		–			(3,993,787	)
Gross profit		1,427,493			–			1,427,493
Operating expenses:
Technology and development expenses		(8,120,612	)		–			(8,120,612	)
Sales and marketing expenses		(160,731	)		(8,747	)		(169,478	)
Corporate development expenses		(71,923	)		–			(71,923	)
General and administrative expenses		(726,628	)		(120	)		(726,748	)
Impairment loss of digital assets		(14	)		–			(14	)
Total operating expenses		(9,079,908	)		(8,867	)		(9,088,775	)
Segment loss	$	(7,652,415	)	$	(8,867	)	$	(7,661,282	)
For the Three Months Ended September 30, 2021
Revenue from external customers:
Media and entertainment income	$	–		$	–		$	–
Consulting service income		–			13,677			13,677
Total revenues		–			13,677			13,677
Cost of revenues:
Sale of licensed media products		–			–			–
Consulting service income		–			(3,628	)		(3,628	)
Total cost of revenues		–			(3,628	)		(3,628	)
Gross profit		–			10,049			10,049
Operating expenses:
General and administrative expenses		(48,141	)		(36,833	)		(84,974	)
Total operating expenses		(48,141	)		(36,833	)		(84,974	)
Segment loss	$	(48,141	)	$	(26,784	)	$	(74,925	)

	Media & Entertainment Segment			Business Consulting Segment			Total
For the Nine Months Ended September 30, 2022
Revenue from external customers:
Media and entertainment income	$	6,490,552		$	–		$	6,490,552
Consulting service income		–			24,735			24,735
Total revenues		6,490,552			24,735			6,515,287
Cost of revenues:
Media and entertainment income		(4,829,421	)		–			(4,829,421	)
Consulting service income		–			(25,533	)		(25,533	)
Total cost of revenues		(4,829,421	)		(25,533	)		(4,854,954	)
Gross profit (loss)		1,661,131			(798	)		1,660,333
Operating expenses:
Technology and development expenses		(8,727,704	)		–			(8,727,704	)
Sales and marketing expenses		(335,794	)		(23,060	)		(358,854	)
Corporate development expenses		(204,793	)		–			(204,793	)
General and administrative expenses		(1,982,937	)		(2,472	)		(1,985,409	)
Impairment loss of digital assets		(4,063	)		–			(4,063	)
Total operating expenses		(11,255,291	)		(25,532	)		(11,280,823	)
Segment loss	$	(9,594,160	)	$	(26,330	)	$	(9,620,490	)
For the Nine Months Ended September 30, 2021
Revenue from external customers:
Media and entertainment income	$	–		$	–		$	–
Consulting service income		–			177,017			177,017
Total revenues		–			177,017			177,017
Cost of revenues:
Sale of licensed media products		–			–			–
Consulting service income		–			(60,967	)		(60,967	)
Total cost of revenues		–			(60,967	)		(60,967	)
Gross profit		–			116,050			116,050
Operating expenses:
General and administrative expenses		(48,141	)		(135,470	)		(183,611	)
Total operating expenses		(48,141	)		(135,470	)		(183,611	)
Segment loss	$	(48,141	)	$	(19,420	)	$	(67,561	)

	Media & Entertainment Segment		Business Consulting Segment		Total
As of September 30, 2022
Intangible assets	$	146,857	$	–	$	146,857
Identifiable assets	$	5,374,072	$	1,662	$	5,375,734
As of December 31, 2021
Intangible assets	$	153,656	$	–	$	153,656
Identifiable assets	$	115,608	$	28,124	$	143,732