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CONSOLIDATED SEGMENT DATA
 12 Months Ended
Dec. 31, 2024
Segment Reporting [Abstract]  
CONSOLIDATED SEGMENT DATA

20. CONSOLIDATED SEGMENT DATA

 

Segment information is consistent with how the Chief Operating Decision Maker, i.e., the Directors of the Company, review the businesses, make investing and resource allocation decisions and assess operating performance. Transfers and sales between reportable segments, if any, are recorded at cost.

 

The Company ceased the operation of cryptocurrency mining business by December 2022, and the operations of cryptocurrency mining business have been presented as “discontinued operations” in the Company’s consolidated financial statements. Please refer to Note 10.

 

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

 

(1) Cloud-based Technology (CBT) segment — 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. The Company includes the revenue and cost of revenue of high-end data storage servers in the CBT segment. Advertising services is included in the CBT segment, after the Company consummated the acquisition of TNM. Advertisements are delivered to the ads display terminals and vehicular ads display terminals through the Company’s cloud-based new media sharing platform. Incorporation of advertising services complements the Company’s out-of-home advertising business strategy.
   
(2) Blockchain Technology (BT) segment — The BT segment is the Company’s newly formed business sector in 2021. Cryptocurrency mining is the first initiative implemented in the BT segment. However, due to the decreased output and the highly volatile cryptocurrency market, the Company had ceased the operation of the BT segment by December 2022.
   
(3) Traditional Information Technology (TIT) segment — The TIT segment includes the Company’s project-based technology products and services sold to the public sector. 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. As a result of the business transformation, the TIT segment is gradually being phased out in 2021.

 

 

TAOPING INC.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

 

Selected information by segment is presented in the following tables for the year ended December 31, 2024, 2023, and 2022.

 

   2024   2023   2022 
Revenues(1)                
TIT Segment  $85,145   $214,980   $235,128 
CBT Segment   36,587,367    38,420,655    23,998,335 
   $36,672,512   $38,635,635   $24,233,463 

 

  (1) Revenues by operating segments exclude intercompany transactions.

 

   2024   2023   2022 
(Loss) income from operations               
TIT Segment  $(87,794)  $(110,113)  $(617,180)
CBT Segment   453,726    2,838,305    (181,454)
Corporate and others(2)    (1,974,494)   (2,925,890)   (2,367,003)
(Loss) from operations    (1,608,562)   (197,698)   (3,165,637)
Corporate other income (loss), net   261,621    552,058    3,201,613 
Corporate interest income   2,241    2,100    7,956 
Corporate interest expense   (460,544)   (580,630)   (556,434)
(Loss) before income taxes   (1,805,244)   (224,170)   (512,502)
                
Income tax (expense) benefit   (14,143)   (7,980)   (69,869)
Net (loss) from continuing operations   (1,819,387)   (232,150)   (582,371)
Net (loss) income from discontinued operations   -    (465,791)   (6,499,276)
Net (loss)   (1,819,387)   (697,941)   (7,081,647)
                
Less: Loss (income) attributable to the non-controlling interest   -    -    - 
Net (loss) attributable to the Company  $(1,819,387)  $(697,941)  $(7,081,647)

 

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

 

Non-cash compensation by segment for the year ended December 31, 2024, 2023, and 2022 are as follows:

 

   2024   2023   2022 
Non-cash compensation:               
Corporate and others   956,400    1,564,000    23,100 
Non-cash compensation  $956,400   $1,564,000   $23,100 

 

Depreciation and amortization by segment for the year ended December 31, 2024, 2023, and 2022 are as follows:

 

   2024   2023   2022 
Depreciation and amortization:               
TIT Segment  $13,085   $43,832   $44,678 
CBT Segment   1,993,911    2,472,741    3,499,253 
   $2,006,996   $2,516,573   $3,543,931 

 

 

TAOPING INC.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

 

   2024   2023   2022 
Provisions for allowance for credit losses on accounts receivable, other receivable and advances to suppliers:               
TIT Segment  $3,996   $6,097   $(43,741)
CBT Segment   4,061,703    1,407,119    689,234 
Corporate and others   -    -    - 
   $4,065,699   $1,413,216   $645,493 

 

   2024   2023   2022 
Inventory obsolescence (reversal) provision:               
TIT Segment  $913   $2,753   $- 
CBT Segment   (15,223)   (56,067)   63,716 
   $(14,310)  $(53,314)  $63,716 

 

Total assets by segment as at December 31, 2024 and 2023 are as follows:

 

   2024   2023 
Total assets          
TIT Segment  $84,501   $131,137 
CBT Segment   34,261,293    31,384,549 
Corporate and others   782,951    1,310,628 
   $35,128,745   $32,826,314