Note 14 - Operating Segments

12 Months Ended

Dec. 31, 2024

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

Note 14 - Operating Segments

The Company’s Chief Executive Officer serves as the Chief Operating Decision Maker (“CODM”) and evaluates the financial performance of the business and makes resource allocation decisions on a consolidated basis. As a result, the Company operates as a single reportable segment under ASC 280, Segment Reporting. The Company's operations include performance marketing services, lead generation, and data analytics, all of which are managed centrally. The Company focuses on delivering quality traffic and player acquisitions, retention and conversions to global casino gaming partners worldwide in exchange for a commission (cost per acquisition or portion of net gaming revenues) paid to the Company by the partners for the new players referred to them.  The CODM assesses financial performance based on consolidated revenue, operating profit, and key operating expenses as detailed below.

The following table presents significant segment expenses regularly provided to and reviewed by the CODM:

	Affiliate Marketing Segment
	December 31, 2024			December 31, 2023
Revenue	$	3,662,349		$	4,952,725
Less:
Cost of revenues		2,756,076			3,420,062
Segment gross profit		906,273			1,532,663
Less:
Salaries and benefits		1,428,737			1,910,163
Contractors and consulting expense		307,278			809,378
Marketing expense		214,325			675,496
Other segment expenses (1)		3,429,808			9,370,516
Segment net loss from continuing operations before income taxes		(4,473,875	)		(11,232,890	)
Reconciliation of profit or loss
Adjustments and reconciling items		-			-
Consolidated net loss from continuing operations before income taxes		(4,473,875	)		(11,232,890	)
(1) - other segment items included in Segment net loss include: professional fees, insurance, general and administrative expenses, depreciation and amortization, foreign currency exchange gains and losses, other income and interest expense

These expenses represent the key cost components reviewed by the CODM in assessing the Company's performance. 

The CODM evaluates income generated from the Company’s assets using net income (loss) as a key metric. The CODM utilizes this measure to assess return on assets when making strategic decisions, including whether to reinvest profits into the affiliate marketing platform, enhance technology and data analytics capabilities, or expand partnerships with advertisers and publishers.

The following table presents revenue by geographic region, based on the location of the Company’s customers:

For the year ended December 31, 2024:

	Affiliate Marketing
	Services
United States	$	815,727
Rest of the World	$	2,846,622
Revenue	$	3,662,349

For the year ended December 31, 2023:

	Affiliate Marketing
	Services
United States	$	754,446
Rest of the World	$	4,198,279
Revenue	$	4,952,725

As the Company operates as one reportable segment, total segment assets and total consolidated assets are effectively the same.  As such, segment assets are equivalent to total consolidated assets as presented on the balance sheet and all significant accounting policies, major customers, and revenue-related disclosures required under GAAP are included elsewhere in the financial statements.

The Company’s Affiliate Marketing Services segment derive a significant portion of their revenues from several large customers. The table below presents the percentage of consolidated revenues derived from large customers:

	December 31, 2024			December 31, 2023
Customer A		39	%		35	%
Customer B		22	%		38	%
Customer C		14	%		6	%
Customer D		14	%		8	%

These four customers had amounts due to the Company of $225,286 and $219,372 for December 31, 2024 and 2023, respectively.