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Segment Reporting
 6 Months Ended
Jun. 30, 2025
Segment Reporting [Abstract]  
SEGMENT REPORTING

NOTE 24 – 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.

 

In November 2023, the FASB issued ASU No. 2023-07, Improvements to Reportable Segment Disclosures (Topic 280), which updates reportable segment disclosure requirements by requiring disclosures of significant reportable segment expenses that are regularly provided to the Chief Operating Decision Maker (“CODM”) and included within each reported measure of a segment’s profit or loss. It also requires disclosure of the title and position of the individual identified as the CODM and an explanation of how the CODM uses the reported measures of a segment’s profit or loss in assessing segment performance and deciding how to allocate resources. The Company adopted this standard on December 31, 2024  and the adoption does not have a material effect on its unaudited condensed consolidated financial statements.

 

The Company uses the management approach to determine reportable operating segments. The management approach considers the internal organization and reporting used by the Company’s CODM for making decisions, allocating resources and assessing performance. The Company’s CODM has been identified as the CEO, who reviews consolidated results when making decisions about allocating resources and assessing performance of the Company.

 

Based on the management’s assessment, the Company determined that it has two operating segments, which are its graphite anode business and peer-to-peer knowledge sharing and enterprise business, and therefore two reportable segments as defined by ASC 280. The Company’s assets are substantially all located in the PRC and substantially all of the Company’s revenue and expenses are derived in the PRC. Therefore, no geographical segments are presented.

 

The Company’s CODM evaluates performance based on each reporting segment’s revenue and costs of revenues. Revenues, cost of revenues and gross (loss) profits by segment are presented below.

 

   For the six months ended
June 30,		 
   2025   2024 
REVENUES, NET        
Graphite anode business  $27,907,475   $21,561,285 
Knowledge sharing and enterprise business   59,606    721,886 
Total revenues   27,967,081    22,283,171 
           
COSTS OF REVENUES          
Graphite anode business   24,262,266    21,984,752 
Knowledge sharing and enterprise business   6,078    281,030 
Total cost of revenues   24,268,344    22,265,782 
           
GROSS PROFIT (LOSS)          
Graphite anode business   3,645,209    (423,467)
Knowledge sharing and enterprise business   53,528    440,856 
Total gross loss   3,698,737    17,389 
           
RECONCILIATION OF LOSS (SEGMENT OF GROSS LOSS)          
UNALLOCATED AMOUNTS          
OPERATING EXPENSES          
Selling expenses   495,385    361,679 
General and administrative expenses   3,116,148    4,212,561 
Research and development expenses   754,331    847,852 
Total operating expenses   4,365,864    5,422,092 
           
LOSS FROM OPERATIONS   (667,127)   (5,404,703)
           
OTHER (EXPENSES) INCOME          
Investment income   47,467    84,295 
Interest expense, net   (2,217,089)   (918,199)
Other (expense) income, net   (3,258)   217,635 
Total other expenses, net   (2,172,880)   (616,269)
           
LOSS BEFORE INCOME TAXES  $(2,840,007)  $(6,020,972)