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Segment and Revenue Analysis
 12 Months Ended
Dec. 31, 2022
Segment and Revenue Analysis [Abstract]  
SEGMENT AND REVENUE ANALYSIS

Note 14 – SEGMENT AND REVENUE ANALYSIS

 

The Company is engaged in the business of manufacturing and selling of petfood and restaurant operations.

 

An operating segment is a component of the Company that engages in business activities from which it may earn revenues and incur expenses, and is identified on the basis of the internal financial reports that are provided to and regularly reviewed by the Company’s chief operating decision maker in order to allocate resources and assess performance of the segment.

 

In accordance with ASC 280, Segment Reporting, operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker (“CODM”), or decision making group, in deciding how to allocate resources and in assessing performance. 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 maker, reviews operation results by the revenue of different services. Based on management’s assessment, the Company has determined that it has two operating segments as defined by ASC 280, including petfood sales and restaurant business operations.

 

Certain entity-wide disclosures relating to revenues for the years ended December 31, 2022, 2021 and 2020 are as follows:

 

   For the year ended December 31, 2022 
   Petfood
sales		   Restaurant
business		   Total 
Revenue from continuing operations  $24,726   $3,074,007   $3,098,733 
Net (loss) income from continuing operations  $1,089,347    104,720   $1,194,067 
Net loss from discontinued operations  $(339,054)   
-
   $(339,054)
Total Net income  $750,293   $104,720   $855,013 
Depreciation and amortization  $62,164   $54,358   $116,522 
Total assets  $34,480,238   $1,502,768   $36,513,397 

 

   For the year ended December 31, 2021 
   Petfood
sales		   Restaurant
business		   Total 
Revenue from continuing operations  $474,632   $606,463   $1,081,095 
Net loss from continuing operations  $(2,854,514)  $(1,215,613)  $(4,070,127)
Net loss from discontinued operations  $(2,645,831)  $
-
   $(2,645,831)
Total Net loss  $(5,500,345)  $(1,215,613)  $(6,715,958)
Depreciation and amortization  $395,094   $13,646   $408,740 
Total assets  $26,969,867   $5,078,090   $32,047,957 

 

   For the year ended December 31, 2020 
   Petfood
sales		   Restaurant
business		   Total 
Revenue from continuing operations  $622,801   $
          -
   $622,801 
Net income (loss) from continuing operations  $1,690,529   $    $1,690,529 
Net loss from discontinued operations  $(2,565,197)  $    $(2,565,197)
Net loss  $(874,668)  $
-
   $(874,668)
Depreciation and amortization  $391,351   $
-
   $391,351 
Capital expenditure  $47,086   $
-
   $47,086 
Total assets  $18,452,910   $
-
   $18,452,910 

 

The net revenue generated from different marketing channels consists of the following:

 

   For the Years Ended December 31, 
   2022   2021   2020 
Overseas sales  $
-
    134,896    226,385 
Domestic sales   25,849    308,267    382,497 
Electronic commerce   
-
    34,590    16,708 
Restaurant revenue   3,074,007    606,463    
-
 
Less: Sale tax and addition   (1,123)   (3,121)   (2,789)
Total net revenue from continuing operations  $3,098,733    1,081,095    622,801 

 

The net revenue generated from different product lines and services is set forth as following:

 

   For the Years Ended December 31, 
   2022   2021   2020 
Pet chews  $8,367    46,112    59,096 
Dried pet snacks   8,005    293,325    317,392 
Wet canned petfood   1,290    10,760    84,117 
Dental health snacks   550    6,127    19,915 
Baked pet biscuits   
-
    
-
    3,132 
Restaurant revenue   3,074,007    606,463    
-
 
Others   7,637    121,429    141,938 
Less: Sales tax and addition   (1,123)   (3,121)   (2,789)
Total net revenue from continuing operations  $3,098,733    1,081,095    622,801 

 

The net revenue generated from different countries is set forth as following:

 

   For the Years Ended December 31, 
   2022   2021   2020 
South Korea  $-    37,320    34,378 
China   25,849    342,857    382,497 
United Kingdom   
-
    
-
    
-
 
Germany   
-
    
-
    
-
 
U.S.   3,074,007    606,463    
-
 
Other countries   
-
    97,576    208,715 
Less: Sales tax and addition   (1,123)   (3,121)   (2,789)
Total net revenue from continuing operations  $3,098,733    1,081,095    622,801 

 

“Other countries” are comprised of all countries whose revenue, individually, was less than 10% of the Company’s total revenue.

 

The Company’s long-lived assets associated with petfood business are substantially located in the PRC. The Company’s long-lived assets associated with restaurant business operations are located in the United States.