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SEGMENT REPORTING
 6 Months Ended 12 Months Ended
Jun. 30, 2024
Dec. 31, 2023
Segment Reporting [Abstract]    
SEGMENT REPORTING

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 maker, reviews operation results by the revenue of different products or services. Based on management’s assessment, the Company has determined that it has three operating segments as defined by ASC 280, including Clean Food platform, restaurant, and others.

 

Adjustments and eliminations of inter-company transactions were not included in determining segment (loss) profit, as they are not used by the chief operating decision maker. The following table presents summary information by segment for the six months ended June 30, 2024 and 2023, respectively:

 

             
   For the six months ended June 30, 2024 
  

Clean Food

Platform

  

Technical

Service

   Total 
Revenues  $86,159   $-   $86,159 
Cost of goods sold   42,089    -    42,089 
Gross profit   44,070         44,070 
Depreciation and amortization   43,122    -    43,122 
Capital expenditures   -    -    - 
Loss from operations   (715,437)   (13,056)   (728,493)
Income tax benefits   -    371,568    371,568 
Segment (loss) profit   (704,124)   358,513    (345,611)
Segment assets  $17,783,610   $2,271,195   $20,054,805 

 

             
   For the six months ended June 30, 2023 
  

Clean Food

Platform

  

Technical

Service

   Total 
Revenues  $2,326,966   $8,356,277   $10,683,243 
Cost of goods sold   969,172    7,259,205    8,228,377 
Gross profit   1,357,794    1,097,072    2,454,866 
Depreciation and amortization   83,490    -    83,490 
Capital expenditures   5,496    -    5,496 
(Loss) Income from operations   (696,346)   737,558    41,212 
Provision for income taxes   (511)   (210,857)   (211,368)
Segment (loss) profit   (805,328)   526,702    (278,626)
Segment assets  $26,036,470   $11,463,372   $37,499,842 

 

 

MEIWU TECHNOLOGY COMPANY LIMITED

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

 

16. 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 maker, reviews operation results by the revenue of different products or services. Based on management’s assessment, the Company has determined that it has three operating segments as defined by ASC 280, including Clean Food platform, restaurant, and others.

 

Adjustments and eliminations of inter-company transactions were not included in determining segment (loss) profit, as they are not used by the chief operating decision maker. The following table presents summary information by segment for the years ended December 2023, 2022 and 2021 respectively:

 

  

Clean Food

Platform

  

Technical

Service

   Total 
   For the year ended December 31, 2023 
  

Clean Food

Platform

  

Technical

Service

   Total 
Revenues  $2,513,483   $8,463,946  $10,977,429 
Cost of goods sold   750,383    7,643,981    8,394,364 
Gross profit   1,763,100    819,965    2,583,065 
Depreciation and amortization   183,097    -    183,097 
Capital expenditures   5,539    -    - 
(Loss)  from operations   (2,106,150)   589,364    (1,516,786)
Provision for income taxes   927    206,313    207,240 
Segment loss   (9,775,749)   (6,536,956)   (16,312,705)
Segment assets  $17,657,856   $2,926,423  $20,584,279 

 

  

Clean Food

Platform

  

Technical

Service

   Total 
   For the year ended December 31, 2022 
  

Clean Food

Platform

  

Technical

Service

   Total 
Revenues  $2,144,217   $8,834,354  $10,978,571 
Cost of goods sold   1,905,036    7,898,847    9,803,883 
Gross profit   239,181    935,507    1,174,688 
Depreciation and amortization   87,973    -    87,973 
Capital expenditures   19,437    6,479    25,916 
Loss from operations   (3,543,160)   (196,210)   (3,739,370)
Provision for income taxes   8,917    202,227    211,144 
Segment loss   (4,576,496)   (6,643,355)   (11,219,851)
Segment assets  $36,397,974   $1,597,667  $37,995,641 

 

  

Clean Food

Platform

   Restaurant   Others   Total 
   For the year ended December 31, 2021 
  

Clean Food

Platform

   Restaurant   Others   Total 
Revenues  $12,145,531   $100,945   $11,975   $12,258,451 
Cost of goods sold   9,343,635    74,949    22　    9,418,606 
Gross profit   2,801,896    25,996    11,953    2,839,845 
Depreciation and amortization   237,366    124,215    26,738    388,319 
Capital expenditures   49,772    2,912    28,513    81,197 
Loss from operations   (693,466)   (259,274)   (148,957)   (1,101,697)
Provision for income taxes   -    -    -    - 
Segment loss   (712,163)   (256,503)   (148,920)   (1,117,586)
Segment assets  $1,891,075   $123,940   $26,275,025   $28,290,040 

 

 

MEIWU TECHNOLOGY COMPANY LIMITED

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS