TREASURE GLOBAL INC Segments Disclosure

Note 17 – Segment information

 

The Company’s operating segments have been identified based on the way management organizes the business by the nature of services provided to customers and how the Chief Operating Decision Maker (“CODM”) manages the business and allocates resources. The CODM for the Company is its Chief Executive Officer. The Company has two reportable segments: (i) payment processing and e-commerce operation in its ZCITY platform, and (ii) customized software development service.

 

The accounting policies applied to each segment are consistent with those described in the summary of significant accounting policies. The Company evaluates segment performance based on profit or loss from operations before income taxes. Intersegment sales and transfers are accounted for as if the transactions were made with third parties, using current market prices.

 

The Company’s reportable segments represent strategic business units that offer different products and services and are managed separately due to their distinct operational and marketing requirements.

 

The following tables summarize the Company’s segment information for the years ended June 30, 2025 and 2024.

 

		For the Years Ended June 30, 2025
		ZCITY Platform				Customized Software development service				Total
Revenue from external customers		$	850,557			$	1,480,000			$	2,330,557
Less:
Cost of revenue			206,106				454,626				660,732
Segment gross profit		$	644,451			$	1,025,374				1,669,825
Less:
Advertising			99,656				-				99,656
Payment transaction fee			17,513				-				17,513
Long-live assets impairment			19,517,303				-				19,517,303
Share-based compensation adjustment			2,726,545				-				2,726,545
Other marketing expense			12,298				-				12,298
Salaries			547,816				-				547,816
Depreciation and amortization			895,998				-				895,998
Office expense			120,546				-				120,546
Research and development			215,900				-				215,900
Unrealized holding loss on marketable securities			170,817				-				170,817
Interest expense			4,999				-				4,999
Segment (loss) income			(23,684,940	)			1,025,374				(22,659,566	)
Reconciliation of profit or loss
Less: Unallocated amounts
Professional fees											1,127,236
D&O insurance											64,565
Stock based compensation											208,445
Other corporate expenses											785,106
Change in fair value of derivative liabilities											(1,816,917	)
Net income loss before income taxes										$	(23,028,001	)

		For the Years Ended June 30, 2024
		ZCITY Platform				Customized Software development service				Total
Revenue from external customers		$	22,066,829			$	-			$	22,066,829
Less:
Cost of revenue			21,250,767				-				21,250,767
Segment gross profit			816,062				-				816,062
Less:
Advertising			1,280,393				-				1,280,393
Payment transaction fee			304,763				-				304,763
Other marketing expense			175,765				-				175,765
Salaries			1,299,755				-				1,299,755
Depreciation and amortization			1,123,661				-				1,123,661
Office expense			143,797				-				143,797
Research and development			513,524				-				513,524
Unrealized holding loss on marketable securities			828,367				-				828,367
Other income from software developing service, net of cost			-				(675,131	)			(675,131	)
Interest expense			74,920				-				74,920
Segment loss		$	(4,928,883	)		$	675,131				(4,253,752	)
Reconciliation of profit or loss
Less: Unallocated amounts
Professional fees											1,584,304
D&O insurance											238,765
Stock based compensation											93,111
Amortization of debt discount											358,284
Other corporate expenses											18,692
Net loss before income taxes										$	(6,546,908	)

 

Other Significant Items:

 

		For the Years Ended June 30, 2025
		ZCITY Platform				Customized Software development service				Total
Capital expenditure		$	14,818			$	-			$	14,818

		For the Years Ended June 30, 2024
		ZCITY Platform				Customized Software development service				Total
Capital expenditure		$	16,740			$	-			$	16,740

 

As of June 30, 2025, the Company’s total assets were comprised of $13,473,148 for ZCITY Platform, $1,400,000 for Customized Software Development.

 

As of June 30, 2024, the Company’s total assets were comprised of $4,278,585 for ZCITY Platform.

 

Disaggregated information of revenues by regions are as follows:

 

		For the Years Ended June 30, 2025
		ZCITY Platform				Customized Software development service				Total
Malaysia		$	850,557			$	-			$	850,557
United States			-				1,480,000				1,480,000
Total revenue		$	850,557			$	1,480,000			$	2,330,557

 

		For the Years Ended June 30, 2024
		ZCITY Platform				Customized Software development service				Total
Malaysia		$	22,066,829			$	-			$	22,066,829