All In FutureTech Alliance, Inc. Segments Disclosure

Note 16 – Segment Data

 

Each of the Company’s business segments offer different, but synergistic products and services. The accounting policies of the segments are the same as those described in the summary of significant accounting policies. The chief operating decision makers (“CODM”) are our Chief Executive Officer and our President and Chairman of the Board. The CODMs assess performance for the segments and decide how to allocate resources based on segment profit or loss. The Company does not have any intra-entity sales or transfers. Further, unallocated corporate assets not directly attributable to any one of the business segments and unallocated corporate operating losses resulting from general corporate overhead expenses not directly attributable to any one of the business segments are reported separate from the Company’s identified segments and included under Corporate in the tables presented below.

 

The Company’s business consists of three reportable business segments:

 

■

E-sports, provided through Allied Esports, including video game events and tournaments.

 

■

Casual mobile gaming, provided through Z-Tech.

 

■

Live concert promotion and events organizing, provided through Skyline.

The Company’s significant segment expenses for the years ended December 31, 2024 and 2023 are as follows:

 

		For the Year Ended December 31, 2024																				For the Year Ended December 31, 2023
		E-sports				Casual Mobile Gaming				Concerts				Corporate				Total				E-sports				Casual Mobile Gaming				Concerts				Corporate				Total
Revenue
In-person		$	4,669,644			$	-			$	-			$	-			$	4,669,644			$	4,955,931			$	-			$	-			$	-			$	4,955,931
Multiplatform content			336				-				-				-				336				2,000,586				-				-				-				2,000,586
Casual mobile gaming			-				4,409,192				-				-				4,409,192				-				698,522				-				-				698,522
Total Revenue			4,669,980				4,409,192				-				-				9,079,172				6,956,517				698,522				-				-				7,655,039
Less
In-person (excludes depreciation)			2,496,618				-				-				-				2,496,618				2,684,287				-				-				-				2,684,287
Multiplatform content (excludes depreciation)			-				-				-				-				-				1,517,707				-				-				-				1,517,707
Casual mobile gaming (excludes depreciation)			-				3,875,992				-				-				3,875,992				-				593,894				-				-				593,894
Professional fees			312,673				175,184				202,427				5,871,617				6,561,901				414,376				87,531				-				2,361,115				2,863,022
Salaries and benefits			2,386,885				735,522				27,649				1,347,789				4,497,845				1,778,465				1,226				-				582,162				2,361,853
Selling and marketing expense			22,959				-				4,500				259,780				287,239				18,994				-				-				207,751				226,745
Other expenses [1]			986,999				50,059				74,475				752,742				1,864,275				1,269,672				11,557				-				912,532				2,193,761
Depreciation and amortization			910,605				553,601				-				121,329				1,585,535				1,270,851				132,830				-				96,299				1,499,980
Stock based compensation			21,063				-				-				1,078,214				1,099,277				83,770				-				-				66,748				150,518
Impairment of software license			-				-				-				357,826				357,826				-				-				-				-				-
Impairment of goodwill			-				9,567,000				-				-				9,567,000				-				-				-				-				-
Research and development expense			-				191,310				-				-				191,310				-				162,888				-				-				162,888
Total Expense			7,137,802				15,148,668				309,051				9,789,297				32,384,818				9,038,122				989,926				-				4,226,607				14,254,655
Segment loss			(2,467,822	)			(10,739,476	)			(309,051	)			(9,789,297	)			(23,305,646	)			(2,081,605	)			(291,404	)			-				(4,226,607	)			(6,599,616	)
Reconciliation of (profit) or loss
All other items (2)			-				240,190				-				(544,402	)			(304,212	)			-				-				-				(3,004,255	)			(3,004,255	)
Consolidated pre-tax net loss		$	(2,467,822	)		$	(10,979,666	)		$	(309,051	)		$	(9,244,895	)		$	(23,001,434	)		$	(2,081,605	)		$	(291,404	)		$	-			$	(1,222,352	)		$	(3,595,361	)

 

[1]

Other expenses include insurance, utilities, repair and maintenance, office supplies, sales and marketing, travel and entertainment, rent, and property tax expenses.

 

[2]

Other segment items include a loss on escrow settlement, gains (losses) on investments in money market funds and marketable securities, foreign currency transactions, and other (income) expenses including interest.

 

The Company’s significant segment assets as of December 31, 2024 and 2023 are as follows:

 

		As of December 31, 2024																				As of December 31, 2023
		E-sports				Casual Mobile Gaming				Concerts				Corporate				Total				E-sports				Casual Mobile Gaming				Concerts				Corporate				Total
Total assets for reportable segments:
Goodwill and intangible assets, net		$	17,807			$	7,697,633			$	-			$	196,625			$	7,912,065			$	18,843			$	18,340,383			$	-			$	624,561			$	18,983,787
Property and equipment, net			2,970,762				20,232				-				9,088				3,000,082				3,808,985				23,939				-				1,269				3,834,193
Other segment assets (1)			5,930,764				425,660				7,373,683				88,045,005				101,775,112				7,014,272				975,776				6,007,381				75,201,278				89,198,707
Total consolidated assets		$	8,919,333			$	8,143,525			$	7,373,683			$	88,250,718			$	112,687,259			$	10,842,100			$	18,793,420			$	6,007,381			$	76,373,786			$	112,016,687

 

[1]

Other segment assets include cash and cash equivalents, investments, receivables, prepaid expenses and other current assets, digital assets, right-of-use assets, and deposits.

The Company’s disaggregated assets by geographic location are as follows:

 

		As of December 31,
		2024				2023
Total assets by geographic location:
United States		$	25,191,733			$	36,975,291
China			87,495,526				75,041,396
Total consolidated assets		$	112,687,259			$	112,016,687

 

The Company’s disaggregated revenues by geographic location are as follows:

 

		As of December 31,
		2024				2023
Total revenues by geographic location:
United States		$	4,669,980			$	6,956,517
China			4,409,192				698,522
Total consolidated revenues		$	9,079,172			$	7,655,039