| 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 |
|
|