VenHub Global, Inc. Segments Disclosure
| 11. | SEGMENT REPORTING |
The Company is managed at the consolidated level and therefore operates and reports as a segment. The Company’s is its Chief Operating Decision Maker (“CODM”). The Company’s CODM assesses significant segment expenses in comparison to forecasts and historical results to make decisions on capital allocation strategies. The measure of segment assets is reported on the balance sheets as total assets. All material long-lived assets are located in the United States.
The following table illustrates significant segment expenses that are regularly provided to the CODM for the years ended December 31, 2025 and 2024:
| Years Ended December 31, | ||||||||
| 2025 | 2024 | |||||||
| General and administrative expenses | 37,061,557 | 6,888,041 | ||||||
| Payroll and compensation | 1,435,000 | 1,270,000 | ||||||
| Research and development | 1,215,098 | 875,975 | ||||||
| Total operating expenses | 39,711,655 | 9,034,016 | ||||||
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.