Registration of securities issued in business combination transactions

Note 3 - Segment Information

v3.24.0.1
Note 3 - Segment Information
 12 Months Ended
Dec. 31, 2022
Notes to Financial Statements  
Segment Reporting Disclosure [Text Block]

Note 3.         Segment Information

 

Prior to the acquisition of GMI and through June 30, 2022, we managed our business as a single operating segment. During the quarter ended September 2022, we reassessed our business strategy and our CODM changed his approach to managing the business and allocating resources. As a result, we determined that beginning July 1, 2022 we have two operating segments: Tellenger and Blockchain SCM. Tellenger provides professional services, primarily to U.S. government agencies, related to legacy software migration and modernization, developing web-based and mobile device solutions, including dynamic electronic forms development and conversion, and data analytics. The Blockchain SCM segment is an early-stage business focused on developing, marketing, and selling a SaaS supply chain management platform built on blockchain technology.

 

For the year ended December 31, 2022:

 

   

Tellenger

    

Blockchain
SCM

    

Corporate

    

Consolidated

  

Revenue

   $ 11,023,982     $ 998,970     $ -     $ 12,022,952  

Depreciation and amortization

     211,360       1,223,328       8,626       1,443,314  

Other significant non-cash items:

                                

Stock-based compensation

     175,693       691,472       1,100,762       1,967,927  

Change in fair value of contingent consideration

     -       (930,000 )     -       (930,000 )

Impairment of long-lived assets

     -       3,762,915       -       3,762,915  

Goodwill impairment

     -       6,460,168       -       6,460,168  

Total other significant non-cash items

     175,693       9,984,555       1,100,762       11,261,010  

Operating income (loss)

   $ 610,753     $ (13,358,651 )   $ (6,029,710 )   $ (18,777,608 )

Interest expense

                             (81,621 )

Other income, net

                             7,107  

Income tax benefit

                             1,098,284  

Net loss

                           $ (17,753,838 )
                                 

Acquisition of property and equipment

   $ 10,447     $ 498,425     $ 27,030     $ 535,902  

 

For the year ended December 31, 2021:

 

   

Tellenger

    

Blockchain
SCM

    

Consolidated

  

Revenue

   $ 15,033,504     $ -     $ 15,033,504  

Depreciation and amortization

     167,332       69,266       236,598  

Operating loss

                   $ (2,627,149 )

Interest expense

                     (37,325 )

Other income, net

                     12,171  

Gain on forgiveness of note payable

                     450,000  

Income tax benefit

                     1,070,854  

Net loss

                   $ (1,131,449 )
                         

Acquisition of property and equipment

                   $ 69,754  

 

 

 

Total assets for each operating segment as of December 31 are as follows:

 

   

2022

    

2021

  

Tellenger

   $ 4,000,760     $ 4,812,450  

Blockchain SCM

     2,500,000       13,159,805  

Corporate

     1,480,454       5,390,388  

Consolidated

   $ 7,981,214     $ 23,362,643