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

17. CONSOLIDATED SEGMENT DATA

 

Segment information is consistent with how management reviews the businesses, makes investing and resource allocation decisions, and assesses operating performance. Transfers and sales between reportable segments, if any, are recorded at cost. All sales occurred in China since our revenue-generating operations are located in China.

 

The Company reports financial and operating information in the following two segments:

 

(a) Cloud-based Technology (CBT) segment — The CBT segment is the Company’s current and future focus for corporate development. It includes the Company’s cloud-based products, high-end data storage servers. and related services sold to private sectors including new media, healthcare, education, and residential community management, and among other industries and applications. In this segment, the Company generates revenues from the sales of hardware and software total solutions with proprietary software and content as well as from designing and developing software products specifically customized for private sector customers’ needs for a fixed price. As a result of COVID-19 pandemic, city lockdowns, travel restrictions, and other preventive measures had negatively impacted on the China out-of-home advertising business and significantly dampened customers’ demand for ads display terminals. Nevertheless, mandatory home stays and work from remote locations triggered a steep surge in on-line gaming, on-line shopping, on-line entertainment, and electronic communication, and created a great demand for high-end data storage servers to accommodate internet information transmission. The Company has stabilized supply chains for the high-end data storage server to meet market demands supplementing the declining revenue from ads display terminals and included the revenue and cost of revenue of high-end data storage servers in the CBT segment.
   
(b) Traditional Information Technology (TIT) segment —The TIT segment includes the Company’s project-based technology products and services. The solutions the Company has sold primarily include Geographic Information Systems (GIS), Digital Public Security Technology (DPST), and Digital Hospital Information Systems (DHIS). In this segment, the Company generates revenues from sales of hardware and system integration services.

 

Selected information by segment is presented in the following tables for the year ended December 31, 2020, 2019, and 2018.

 

    2020     2019     2018  
Revenues(1)                        
TIT Segment   $ 377,499     $ 241,132     $ 383,420  
CBT Segment     10,685,276       13,550,171       20,194,920  
    $ 11,062,775     $ 13,791,303     $ 20,578,340  

 

(1) Revenues by operating segments exclude intercompany transactions.

 

    2020     2019     2018  
(Loss) income from operations                        
TIT Segment   $ (166,727 )   $ (662,556 )   $ (528,891 )
CBT Segment     (15,268,750 )     (2,037,151 )     2,391,930  
Corporate and others(2)     (1,931,252 )     (1,472,454 )     (1,694,215 )
(Loss) income from operations     (17,366,729 )     (4,172,161 )     168,824  
Corporate other (loss) income, net     (22,580 )     669,755       956,753  
Corporate interest income     4,798       133,517       36,381  
Corporate interest expense     (1,018,013 )     (499,852 )     (484,403 )
(Loss) income before income taxes     (18,402,524 )     (3,868,741 )     677,555  
                         
Income tax benefit     71,316       274,480       1,201,231  
Net (loss) income     (18,331,208 )     (3,594,261 )     1,878,786  
                         
Less: Loss (income) attributable to the non-controlling interest     636,433       11,929       (186,803 )
Net (loss) income attributable to the Company   $ (17,694,775 )   $ (3,582,332 )   $ 1,691,983  

 

(2) Includes non-cash compensation, professional fees and consultancy fees for the Company.

 

Non-cash employee compensation by segment for the year ended December 31, 2020, 2019, and 2018 are as follows:

 

    2020     2019     2018  
Non-cash employee compensation:                        
Corporate and others     298,091       494,316       584,629  
    $ 298,091     $ 494,316     $ 584,629  

 

Depreciation and amortization by segment for the year ended December 31, 2020, 2019, and 2018 are as follows:

 

    2020     2019     2018  
Depreciation and amortization:                        
TIT Segment   $ 19,783     $ 17,278     $ 13,941  
CBT Segment     3,459,861       2,883,674       3,660,596  
    $ 3,479,644     $ 2,900,952     $ 3,674,537  

 

    2020     2019     2018  
Provisions for allowance for credit losses on accounts receivable, other receivable and advances to suppliers：                        
TIT Segment   $ 36,895     $ 344,550     $ (438,378 )
CBT Segment     13,484,287       3,283,994       1,268,644  
    $ 13,521,182     $ 3,628,544     $ 830,266  

 

    2020     2019     2018  
Inventory obsolescence provision:                        
TIT Segment   $ 10,943     $ 2,366     $ 9,261  
CBT Segment     (5,318 )     112,824       21,142  
    $ 5,625     $ 115,190     $ 30,403  

 

    2020     2019     2018  
Impairment of long-term investments                        
CBT Segment      -           -       45,400  
    $ -     $ -     $ 45,400  

 

Total assets by segment as at December 31, 2020 and 2019 are as follows:

 

    2020     2019  
Total assets                
TIT Segment   $ 213,329     $ 725,088  
CBT Segment     30,488,753       39,755,020  
Corporate and others     74,569       135,438  
    $ 30,776,651     $ 40,615,546