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Segment Reporting
 12 Months Ended
Dec. 31, 2020
Segment Reporting [Abstract]  
Segment Reporting

Note 18 - Segment Reporting

 

ASC 280, Disclosures about Segments of an Enterprise and Related Information establishes standards for reporting information about operating segments. Operating segments are defined as components of an enterprise which engage in business activities from which they may earn revenues and incur expenses, and about which separate financial information is available that is evaluated regularly by the chief operating decision-maker, or decision-making group, in deciding how to allocate resources and in assessing performance. Reportable segments are defined as an operating segment that either (a) exceeds 10% of revenue, or (b) reported profit or loss in absolute amount exceeds 10% of profit of all operating segments that did not report a loss or (c) exceeds 10% of the combined assets of all operating segments.

 

The Group has three primary operating segments (1) futures and securities brokerage services, (2) insurance brokerage services and (3) market making (CFD) trading and other business. The Group’s futures and securities brokerage segment generates commissions income by enabling customers to trade in futures and securities markets throughout the world. The Group’s insurance brokerage segment generates commissions by providing insurance brokerage services to high-net-worth individuals. The Group engages in market making (CFD trading) activities where it serves as the counterparty to its customers in derivative transactions. The Group experiences trading gains and losses from such market making (CFD trading) activities. The Group also generated income in an aggregate of approximately $211,000 from TRS trading business in 2020 including the commission income from the securities trading and interest income from the loan to customers, which was included in market making (CFD) trading and other business in 2020. The other segment houses the Group’s proprietary trading activities in investment securities, futures and derivatives, manages the deployment of capital throughout the group, and also includes executive management functions and corporate overhead.

 

   Futures and securities brokerage services   Insurance brokerage services   Market making
(CFD)
trading
and other		   Other   Total 
Year ended December 31, 2020                    
                     
Revenue  $2,029,669   $959,299   $7,034,447   $206,720   $10,230,135 
                          
Commissions and fees   1,316,800    413,351    115,843    
—
    1,845,994 
Compensation and benefits   1,110,192    256,529    
—
    2,436,072    3,802,793 
Occupancy   
—
    277,414    6,600    399,146    683,160 
Communication and technology   455,323    5,160    643,630    349,937    1,454,050 
General and administrative   55,028    48,210    243,172    1,917,908    2,264,318 
Professional fees   26,690    16,813    278,719    1,243,612    1,565,834 
Service fees   
—
    
—
    314,342    519,522    833,864 
Interest   
—
    
—
    52,240    130,917    183,157 
Depreciation   13,000    4,128    
—
    23,428    40,556 
Marketing   222    222    166,013    484,867    651,324 
Payment service charge   
—
    
—
    245,030    
—
    245,030 
Other operating expenses   
—
    
—
    
—
    11,464    11,464 
                          
    2,977,255    1,021,827    2,065,589    7,516,873    13,581,544 
                          
Income (loss) from operations  $(947,586)  $(62,528)  $4,968,858   $(7,310,153)  $(3,351,409)
                          
Total segment assets  $4,624,325   $213,495   $14,636,139   $3,432,110   $22,906,069 

 

   Futures and securities brokerage services   Insurance brokerage services   Market making
(CFD)
trading
and other		   Other   Total 
Year ended December 31, 2019                         
Revenue  $2,215,867   $2,648,141   $12,843,574   $819,268   $18,526,850 
                          
Commissions and fees   1,526,852    1,506,223    322,130    
—
    3,355,205 
Compensation and benefits   1,154,378    334,964    
—
    941,294    2,430,636 
Occupancy   202,467    198,637    1,200    189,632    591,936 
Depreciation   26,845    4,087    
—
    21,920    52,852 
Interest   
—
    
—
    
—
    731,812    731,812 
Communication and technology   469,818    7,269    343,556    2,790    823,433 
General and administrative   72,403    69,765    140,598    409,882    692,648 
Professional fees   7,369    702    118,929    634,238    761,238 
Marketing   2,608    
—
    51,714    1,056    55,378 
Service fees   
—
    
—
    119,711    265,129    384,840 
Payment service charge   
—
    
—
    355,585    
—
    355,585 
Other operating expenses   5,739    
—
    
—
    4,724    10,463 
    3,468,479    2,121,647    1,453,423    3,202,477    10,246,026 
Income (loss) from operations  $(1,252,612)  $526,494   $11,390,151   $(2,383,209)  $8,280,824 
Total segment assets  $4,823,056   $352,377   $5,307,525   $2,935,390   $13,418,348 
                          
Year ended December 31, 2018                         
Revenue  $2,066,354   $5,378,679   $
—
   $(876,770)  $6,568,263 
                          
Commissions and fees   1,293,577    4,157,668    
—
    20,357    5,471,602 
Compensation and benefits   882,887    363,523    
—
    392,878    1,639,288 
Occupancy   420,732    1,021    
—
    126,578    548,331 
Depreciation   26,487    4,086    
—
    2,170    32,743 
Interest   
-
    
-
    
—
    118    118 
Communication and technology   505,152    4,596    
—
    78,605    588,353 
General and administrative   85,208    93,880    
—
    360,685    539,773 
Professional fees   21,081    28,710    
—
    178,207    227,998 
Marketing   8,736    185,019    
—
    2,178    195,933 
Service fees   
—
    
—
    
—
    53,592    53,592 
Other operating expenses   3,063    1,359    
—
    10,984    15,406 
    3,246,923    4,839,862    
—
    1,226,352    9,313,137 
Income (loss) from operations  $(1,180,569)  $538,817   $
—
   $(2,103,122)  $(2,744,874)
Total segment assets  $12,243,072   $370,114   $
—
   $3,059,575   $15,672,761