Alset Inc. Segments Disclosure

4. SEGMENTS

 

Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision makers (the “CODMs”), or decision–making group, in deciding how to allocate resources and in assessing performance. The Company’s chief operating decision makers are the two Co-CEOs, who review and assess the performance of the Company as a whole. The Company reports its segment information to reflect the manner in which the CODMs review and assess performance. The Company has four operating segments based on the products and services we offer, which include three of our principal businesses – real estate, digital transformation technology and biohealth – as well as a fourth category consisting of certain other business activities. In determination of segments, the Company, together with its CODMs, considers factors that include the nature of business activities, allocation of resources and management structure.

 

The primary financial measures used by the CODMs to evaluate performance and allocate resources are net income (loss) and operating income (loss). The CODMs use net income (loss) and operating income (loss) to evaluate the performance of the Company’s ongoing operations and as part of the Company’s internal planning and forecasting processes. Information on net income (loss) and operating income (loss) is disclosed in the Consolidated Statements of Income. Segment expenses and other segment items are provided to the CODMs on the same basis as disclosed in the Consolidated Statements of Income. Costs excluded from segment income (loss) before taxes and reported as “Other” consist of corporate general and administrative activities which are not allocable to the four reportable segments.

 

The CODMs do not evaluate performance or allocate resources based on segment assets.

 

The following table summarizes the Company’s segment information for the following balance sheet dates presented, and for the years ended December 31, 2025 and 2024:

 

SCHEDULE OF SEGMENT INFORMATION

		Real Estate				Digital Transformation Technology				Biohealth Business				Other				Total
Year Ended on December 31, 2025
Revenue		$	2,829,270			$	172			$	-			$	1,641,433			$	4,470,875
Cost of Sales			(2,580,462	)			(247	)			-				(641,206	)			(3,221,915	)
Gross Margin			248,808				(75	)			-				1,000,227				1,248,960
Operating Expenses			(3,467,772	)			(590,995	)			(1,366,561	)			(10,974,215	)			(16,399,543	)
Operating Income (Loss)			(3,218,964	)			(591,070	)			(1,366,561	)			(9,973,988	)			(15,150,583	)
Other Income (Expense)			(1,754,852	)			(2,050,303	)			(669,113	)			(29,293,629	)			(33,767,897	)
Net Income (Loss) Before Income Tax		$	(4,973,816	)		$	(2,641,373	)		$	(2,035,674	)		$	(39,267,617	)		$	(48,918,480	)

  

		Real Estate				Digital Transformation Technology				Biohealth Business				Other				Total
Year Ended on December 31, 2024
Revenue		$	19,608,184			$	-			$	-			$	1,507,715			$	21,115,899
Cost of Sales			(12,034,348	)			-				(3,370	)			(744,906	)			(12,782,624	)
Gross Margin			7,573,836				-				(3,370	)			762,809				8,333,275
Operating Expenses			(1,793,188	)			(616,403	)			(1,076,095	)			(8,964,666	)			(12,450,351	)
Operating Income (Loss)			5,780,648				(616,403	)			(1,079,465	)			(8,201,857	)			(4,117,076	)
Other Income (Expense)			1,522				(2,947,968	)			(139,737	)			3,188,229				102,046
Net Income (Loss) Before Income Tax		$	5,782,170			$	(3,564,371	)		$	(1,219,202	)		$	(5,013,628	)		$	(4,015,030	)