INNO HOLDINGS INC. Segments Disclosure
Note 16 — Segment Information
Reportable Segments
The Company operates as a single reportable segment, which is consistent with how the Chief Operating Decision Maker (“CODM”), the Chief Executive Officer, allocates resources and assesses performance. The Company’s operations are centralized and integrated, with financial results reviewed and managed on a consolidated basis. Accordingly, management has determined that the Company has one reportable segment under ASC Topic 280, Segment Reporting.
Measure of Segment Profit or Loss
The CODM reviews financial information on a consolidated basis, using Net Income as the primary measure of segment performance to monitor budget versus actual results and decide where to allocate and invest additional resources to achieve continued growth. Net Income is defined as revenue less cost of goods sold and operating expenses, and other segment items (including interest income, interest expense, other income and other expenses), and income taxes.
Significant Segment Expense Categories Provided to the CODM
The CODM regularly receives and reviews the following expense categories, which are included in the segment’s measure of profit or loss.
For the Years Ended September 30, | ||||||||
| 2025 | 2024 | |||||||
| Revenues | $ | 2,846,250 | $ | |||||
| Cost of revenues | 2,790,500 | |||||||
| Sales and marketing expenses | ||||||||
| – Marketing service expenses | 120,000 | 27,272 | ||||||
| General and administrative expenses | ||||||||
| – Payroll and stock-based compensation expenses | 2,358,751 | 146,333 | ||||||
| – Professional service expenses | 1,642,714 | 367,447 | ||||||
| – Office related expenses | 227,744 | 300,224 | ||||||
| – Lease expenses | 65,500 | |||||||
| – Travel expenses | 3,568 | |||||||
| Other segment expenses (income), net | 2,454,291 | (237,952 | ) | |||||
| Income tax expense | 800 | 800 | ||||||
| Net loss from continuing operations | $ | (6,814,050 | ) | $ | (607,692 | ) | ||
| Net loss from discontinued operations | (265,313 | ) | (2,606,137 | ) | ||||
The following table presents revenues by geographic area based on the sales location of our products:
For the Years Ended September 30, | ||||||||
| 2025 | 2024 | |||||||
| Hong Kong | $ | 2,846,250 | $ | |||||
| Total revenue | $ | 2,846,250 | $ | |||||
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.