HeartCore Enterprises, Inc. Segments Disclosure
NOTE 16 – SEGMENT AND GEOGRAPHIC INFORMATION
Segment Information
Operating segments are defined as components of an entity for which discrete financial information is available and is regularly reviewed by the CODM, the CEO of the Company, in making decisions regarding resource allocation and performance assessment. The Company determines its operations constitute a single operating segment and reportable segment in accordance with ASC Topic 280. The CODM assesses financial performance and decides how to allocate resources based on consolidated net loss from continuing operations. Segment assets are reported on the Company’s consolidated balance sheets.
The following table summarizes the selected financial information with respect to the Company’s single operating segment and reportable segment for the years ended December 31, 2025 and 2024:
| For
the Years Ended December 31, | ||||||||
| 2025 | 2024 | |||||||
| Revenues | $ | 8,968,732 | $ | 22,685,544 | ||||
| Less: | ||||||||
| Software related cost of revenues | 5,296,547 | 7,355,591 | ||||||
| Consulting related cost of revenues | 520,732 | 614,307 | ||||||
| Selling expenses | 233,744 | 621,070 | ||||||
| General and administrative expenses | 6,039,026 | 6,921,959 | ||||||
| Research and development expenses | 179,762 | |||||||
| Impairment of intangible asset | 3,878,125 | |||||||
| Impairment of goodwill | 3,276,441 | |||||||
| Loss from continuing operations | (3,121,317 | ) | (161,711 | ) | ||||
| Total other expenses | (1,017,788 | ) | (5,350,096 | ) | ||||
| Loss from continuing operations before income tax expense (benefit) | (4,139,105 | ) | (5,511,807 | ) | ||||
| Income tax expense (benefit) | 44,900 | (363,156 | ) | |||||
| Net loss from continuing operations | $ | (4,184,005 | ) | $ | (5,148,651 | ) | ||
Geographic Information
The following table summarizes the breakdown of revenues by geography for the years ended December 31, 2025 and 2024:
| For
the Years Ended December 31, | ||||||||
| 2025 | 2024 | |||||||
| Japan | $ | 1,912,948 | $ | 14,749,648 | ||||
| United States | 6,443,141 | 7,467,393 | ||||||
| International | 612,643 | 468,503 | ||||||
| Total revenues | $ | 8,968,732 | $ | 22,685,544 | ||||
The following table summarizes the breakdown of long-lived assets by geography as of December 31, 2025 and 2024:
| December
31, 2025 | December
31, 2024 | |||||||
| Japan | $ | 292,451 | $ | 597,938 | ||||
| United States | 27,792 | 39,996 | ||||||
| International | 795 | 10,357 | ||||||
| Total long-lived assets | $ | 321,038 | $ | 648,291 | ||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 31, 2026 | Showing above |
| 2024 | Mar 31, 2025 | |
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.