Note 15 - Segment Reporting

12 Months Ended

Dec. 31, 2019

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

 

NOTE

15

 - SEGMENT REPORTING

ASC

280,

“Segment Reporting,” establishes standards for reporting information about operating segments on a basis consistent with the Company’s internal organizational structure as well as information about geographical areas, business segments and major customers in financial statements for details on the Company’s business segments. The Company uses the “management approach” in determining reportable operating segments. The management approach considers the internal organization and reporting used by the Company’s chief operating decision maker for making operating decisions and assessing performance as the source for determining the Company’s reportable segments. Management, including the chief operating decision makers, reviews operation results by the revenue of different products. After acquiring the business of B&R Global, the Company distinguishes revenues, costs and expenses between HF Group and B&R Global in its internal reporting, and reports costs and expenses by nature in different operating segments. As a result, the Company has

two

reportable segments, including HF Group and B&R Global, and has re-presented the segment reporting for the year ended

December 31, 2018

as follows.

The following table presents net sales by segment for the years ended

December 31, 2019

and

2018,

respectively:

	For the Year Ended
	December 31, 2019		December 31, 2018
Net revenue
HF	$	302,103,038	$	291,006,698
B&R Global		86,059,243		-
Total	$	388,162,281	$	291,006,698

All the Company’s revenue was generated from its business operations in the U.S.

	For the Year Ended December 31, 2019
	HF		B&R Global		Total
Revenue	$	302,103,038	$	86,059,243	$	388,162,281
Cost of revenue		252,078,738		72,875,020		324,953,758
Gross profit		50,024,300		13,184,223		63,208,523
Depreciation and amortization		5,487,027		1,267,481		6,754,508
Total capital expenditures	$	4,681,404	$	154,525	$	4,835,929

	For the Year Ended December 31, 2018
	HF		B&R Global		Total
Revenue	$	291,006,698	$	-	$	291,006,698
Cost of revenue		241,441,149		-		241,441,149
Gross profit		49,565,549		-		49,565,549
Depreciation and amortization	$	2,134,832	$	-	$	2,134,832

	As of December 31, 2019		As of December 31, 2018
Total assets:
HF	$	80,514,529	$	82,476,407
B&R Global		722,329,265		-
Total Assets	$	802,843,794	$	82,476,407

All of the Company’s long-lived assets are located in the US.