Note 22 — Segments

 

ASC 280, “Segment Reporting”, establishes standards for reporting information about operating segments on a basis consistent with the Company’s internal organizational structure as well as information about geographical areas, business segments and major customers in financial statements for detailing the Company’s business segments.

 

The Company’s chief operating decision maker is the Chief Executive Officer, who reviews the financial information of the separate operating segments when making decisions about allocating resources and assessing the performance of the group. The Company has determined that it has two operating segments: (1) Holographic solutions, and (2) Holographic technology service.

 

The summary information by segment are as follows:

 

                       
    Holographic
solutions
    Holographic
technology
service
    Total
December 31,
2022
 
Revenues   $ 22,885,519     $ 49,627,316     $ 72,512,835  
Cost of revenues     (18,696,052 )     (20,638,106 )     (39,334,158 )
Gross profit     4,189,467       28,989,210       33,178,677  
Depreciation and amortization     (410,344 )     (606,781 )     (1,017,125 )
Total capital expenditures   $ (270,756 )   $ -     $ (270,756 )

 

    Holographic
solutions
    Holographic
technology
service
    Total
December 31,
2021
 
Revenues   $ 20,695,096     $ 35,589,221     $ 56,284,317  
Cost of revenues     (14,566,478 )     (2,480,186 )     (17,046,664 )
Gross profit     6,128,618       33,109,035       39,237,653  
Depreciation and amortization     (406,504 )     (640,923 )     (1,047,427 )
Total capital expenditures   $ (20,320 )   $ (972 )   $ (21,292 )

 

Total assets as of:

 

    Years ended
December 31,
 
    2022     2021  
Holographic solutions   $ 29,063,408     $ 16,208,983  
Holographic technology service     11,840,424       11,634,088  
Total Assets   $ 40,903,832     $ 27,843,071  

 

Disaggregated information of holographic solutions revenues by business lines are as follows:

 

               
   

Years ended

December 31,

 
    2022     2021  
Holographic Technology LiDAR Products   $ 6,700,300     $ 9,134,995  
Holographic Technology Intelligence Vision software and Technology Development Service     1,881,253       2,213,521  
Holographic Technology Licensing and Content Product     4,323,541       4,822,333  
Holographic Hardware Sales     9,980,425       4,273,351  
Total Holographic Solutions   $ 22,885,519     $ 20,444,200  

 

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About Segments Disclosures

Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.

Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.