SOCIETY PASS INCORPORATED. Segments Disclosure

NOTE－5 SEGMENT REPORTING

 

ASC Topic 280, “Segment Reporting,” establishes standards for companies to report in their financial statement information about operating segments, products, services, geographic areas, and major customers. Operating segments are defined as components of an enterprise for which separate financial information is available that is regularly evaluated by the Company’s chief operating decision maker, or group, in deciding how to allocate resources and assess performance.

 

The Company’s chief operating decision maker has been identified as the Chief Financial Officer (“CODM”), who reviews the operating results for the Company as a whole to make decisions about allocating resources and assessing financial performance, as the following reportable segments.

 

(i)

e-Commerce – operates an online lifestyle platform under the brand name of “Leflair” covering a diversity of services and products, such as fashion and accessories, beauty and personal care, and home and lifestyle, all managed by SOPA Technology Company Ltd,

 

(ii)

Corporate – is investment holding and head quarter within SOPA entities,

 

(iii)

Online grocery and food deliveries – operate an online food delivery service under the “Handycart” and “Mangan” brand name, managed by Dream Space Trading Co Ltd and New Retail Experience Incorporated respectively and an online grocery delivery under the “Pushkart” brand name, managed by New Retail Experience Incorporated,

 

(iv)

Telecommunication reseller – provide sales of local mobile phone plans and global internet data provider plans, both services managed by the Gorilla Group,

 

(v)

Digital marketing operates the digital marketing business with creator and digital marketing platform, and

 

(vi)

Online ticketing and reservation - operates the sale of domestic and overseas air ticket and global hotel reservations.

When evaluating the Company’s performance and making key decisions regarding resource allocation, the CODM reviews several key metrics, which includes general and administrative expenses which are included in the accompanying statements of operations.

 

The key measures of segment profit or loss are reviewed by our CODM. General and administrative expenses are reviewed and monitored by the CODM to manage and forecast cash to ensure enough capital is available to complete a business combination within the business combination period and manage, maintain and enforce all contractual agreements to ensure costs are aligned with all agreements and budget.

 

Schedule of Segment Reporting:

 

		Year ended December 31, 2024
		Online F&B and Groceries Deliveries				Digital Marketing				Online Ticketing and reservation				e-Commerce				Telecommunication Reseller				Corporate				Total
Revenue from external customers
Sales – online ordering			—				—				—				34,808				—				—				34,808
Sales – digital marketing			—				6,173,970				—				—				—				—				6,173,970
Sales – online ticketing and reservation			—				—				885,017				—				—				—				885,017
Sales – data			—				—				—				—				4,898				—				4,898
Software sales			—				—				6,837				—				—				—				6,837
Total revenue			—				6,173,970				891,854				34,808				4,898				—				7,105,530
Cost of sales:
Cost of online ordering			(499	)			—				—				(38,406	)			—				—				(38,905	)
Cost of digital marketing			—				(5,123,662	)			—				—				—				—				(5,123,662	)
Cost of data			—				—				—				—				(50,750	)			—				(50,750	)
Software cost			—				—				(17,769	)			(11,530	)			—				—				(29,299	)
Total cost of revenue			(499	)			(5,123,662	)			(17,769	)			(49,936	)			(50,750	)			—				(5,242,616	)
Gross income (loss)			(499	)			1,050,308				874,085				(15,128	)			(45,852	)			—				1,862,914
Operating Expenses
Sales and marketing expenses			—				(84,224	)			(166,289	)			(22,075	)			(18,395	)			(50,478	)			(341,461	)
Software development costs			—				—				—				—				—				(54,644	)			(54,644	)
Depreciation			(21,151	)			(26,071	)			(80,443	)			(46,737	)			—				(62,257	)			(236,659	)
Amortization			—				—				(24,638	)			—				(360,270	)			(30,087	)			(414,995	)
General and administrative expenses			(234,917	)			(1,472,520	)			(1,901,294	)			(411,758	)			(56,471	)			(6,059,527	)			(10,136,487	)
Total operating expenses			(256,068	)			(1,582,815	)			(2,172,664	)			(480,570	)			(435,136	)			(6,256,993	)			(11,184,246	)
Loss from operations			(256,567	)			(532,507	)			(1,298,579	)			(495,698	)			(480,988	)			(6,256,993	)			(9,321,332	)
Loss on disposal of subsidiary			—				—				—				—				(75	)			—				(75	)
Interest income			11				500				2,504				3				—				10,429				13,447
Interest expense			—				(594	)			(26	)			—				(838	)			(150,686	)			(152,144	)
(Loss) gain on disposal of plant and equipment			205				—				(67,406	)			—				—				—				(67,201	)
Provision for loss on litigation settlement			—				(818,352	)			—				—				—				—				(818,352	)
Waiver of loan payable			—				—				—				—				43,835				—				43,835
Write-off of plant and equipment			—				—				—				—				—				(8,488	)			(8,488	)
Write-off of goodwill			—				—				(6,348	)			—				—				—				(6,348	)
Write-off of intangible assets			—				—				(135,000	)			—				—				—				(135,000	)
Other income (expense)			3,750				21,680				282,485				7,180				3,583				(23,778	)			294,900
Total other income (expense)			3,966				(796,766	)			76,209				7,183				46,505				(172,523	)			(835,426	)
Income (loss) before income taxes			(252,601	)			(1,329,273	)			(1,222,370	)			(488,515	)			(434,483	)			(6,429,516	)			(10,156,758	)

		Year ended December 31, 2023
		Online F&B and Groceries Deliveries				Digital Marketing				Online Ticketing and reservation				e-Commerce				Telecommunication Reseller				Corporate				Total
Revenue from external customers
Sales – online ordering			98,004				—				—				414,120				—				—				512,124
Sales – digital marketing			—				5,326,664				639,947				—				—				—				5,966,611
Sales – online ticketing and reservation			—				—				1,606,800				—				—				—				1,606,800
Sales – data			—				—				—				—				24,018				—				24,018
Software sales			—				51,450				9,887				—				—				745				62,082
Total revenue			98,004				5,378,114				2,256,634				414,120				24,018				745				8,171,635
Cost of sales:
Cost of online ordering			(103,641	)			—				—				(370,935	)			—				—				(474,576	)
Cost of digital marketing			—				(4,953,510	)			—				—				—				—				(4,953,510	)
Cost of data			—				—				—				—				(44,750	)			—				(44,750	)
Software cost			—				—				(32,682	)			(194,206	)			—				(1,921	)			(228,809	)
Total cost of revenue			(103,641	)			(4,953,510	)			(32,682	)			(565,141	)			(44,750	)			(1,921	)			(5,701,645	)
Gross income (loss)			(5,637	)			424,604				2,223,952				(151,021	)			(20,732	)			(1,176	)			2,469,990
Operating Expenses
Sales and marketing expenses			(2,465	)			(48,835	)			(260,501	)			(79,581	)			(33,636	)			(152,913	)			(577,931	)
Software development costs			—				—				—				—				—				(55,645	)			(55,645	)
Depreciation			(31,256	)			(20,397	)			(88,706	)			(42,803	)			—				(65,826	)			(248,988	)
Amortization			—				—				(25,812	)			—				(179,212	)			(817,461	)			(1,022,485	)
General and administrative expenses			(618,061	)			(1,472,010	)			(1,720,523	)			(870,286	)			(93,944	)			(13,750,535	)			(18,525,359	)
Total operating expenses			(651,782	)			(1,541,242	)			(2,118,032	)			(992,670	)			(306,792	)			(14,819,890	)			(20,430,408	)
Income (loss) from operations			(657,419	)			(1,116,638	)			(105,920	)			(1,143,691	)			(327,524	)			(14,821,066	)			(17,960,418	)
Other income (expense)
Dividend income			7,638				—				—				—				—				—				7,638
Gain on early lease termination			—				1,064				—				—				—				—				1,064
Interest income			18				390				2,452				1,006				—				156,836				160,702
Interest expense			(27	)			—				973				—				(1,181	)			—				(235	)
Gain on disposal of plant and equipment			(477,285	)			478,723				—				—				—				—				1,438
Waiver of loan payable			192,716				—				—				—				—				—				192,716
Write-off of plant and equipment			(386,160	)			—				—				—				—				—				(386,160	)
Write-off of intangible assets																							(276,000	)			(276,000	)
Other income			4,018				6,946				21,311				10,629				12,483				130,265				185,652
Total other income (expense)			(659,082	)			487,123				24,736				11,635				11,302				11,101				(113,185	)
Income (loss) before income taxes			(1,316,501	)			(629,515	)			153,146				(1,132,056	)			(316,222	)			(14,832,455	)			(18,073,603	)

 

		December 31, 2024
		Online F&B and Groceries Deliveries				Digital Marketing				Online Ticketing and reservation				e-Commerce				Telecommunication Reseller				Corporate				Total
Intangible assets, net			—				1,659,000				3,345,161				—				402,399				179,336				5,585,896
Identifiable assets			111,636				2,477,449				10,190,695				214,933				21,347				2,677,745				15,693,805

		December 31, 2023
		Online F&B and Groceries Deliveries				Digital Marketing				Online Ticketing and reservation				e-Commerce				Telecommunication Reseller				Corporate				Total
Intangible assets, net			—				1,659,000				3,372,445				—				911,706				138,577				6,081,728
Identifiable assets			167,360				2,495,897				3,188,452				361,421				46,625				4,021,691				10,281,446

 

The below revenue are based on the countries in where the sales occurred. Summarized financial information concerning our geographic segments is shown in the following tables:

 

		Years Ended December 31,
		2024				2023
Indonesia		$	892,210			$	1,235,834
Vietnam			634,190				1,256,972
Philippines			333,598				196,998
Singapore			275,981				459,213
United States			3,506,052				3,936,733
Thailand			1,463,055				1,083,080
Malaysia			444				2,805
		$	7,105,530			$	8,171,635

 

The below long-live assets are based on the countries in where they locate. Summarized financial information concerning our geographic segments is shown in the following tables:

 

		Years Ended December 31,
		2024				2023
Indonesia		$	193,106			$	472,116
Vietnam			81,877				71,498
Philippines			695,944				53,886
Singapore			23,082				1,174,994
United States			14,481				319,512
Thailand			150,363				—
India			690				2,608
		$	1,159,543			$	2,094,614