CTW Cayman
For the period ended May 13, 2026. Filed May 13, 2026.
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May 13, 2026 · Filed May 13, 2026
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Contents
EX-99.1 · Segment Reporting
Segment Reporting
(Amounts in U.S. dollars)
| For the Six Months Ended January 31, | ||
|---|---|---|
| 2026 | 2025 | |
| (Unaudited) | (Unaudited) | |
| Consolidated in-game purchases | $48,603,849 | $49,125,267 |
| Less: Revenue share with game developers and IP holders | 8,186,251 | 9,453,531 |
| Transaction fee | 2,245,367 | 2,486,795 |
| Advertisement expense | 18,760,029 | 24,651,703 |
| Server cost directly related to hosting the games | 1,400,430 | 894,239 |
| Segment profits | 18,011,772 | 11,638,999 |
| Other operating expenses: | ||
| Payroll and related cost | 7,698,199 | 4,025,616 |
| Share-based compensation cost | 1,913,692 | - |
| Lease expense | 1,451,104 | 1,101,375 |
| Depreciation and amortization expense (including prepaid royalties amortization) | 867,889 | 1,339,080 |
| Impairment expense | 892,534 | 1,392,610 |
| Recoup of advances made to game developers | 1,549,346 | 1,362,612 |
| Other cost of sales (1) | 2,325,095 | 805,784 |
| Other selling and marketing expenses (2) | 1,441,766 | 766,401 |
| Other general and administrative expenses (3) | 1,621,277 | 1,387,283 |
| Total other operating expenses | 19,760,902 | 12,180,761 |
| (Loss) from operation | (1,749,130) | (541,762) |
| Interest income, net | 333,453 | 282,507 |
| Foreign Currency Transaction gain | 260,296 | 221,056 |
| Other income | 499,078 | 292,677 |
| (Loss) Income before income tax | $(656,303) | $254,478 |
In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. The ASU’s amendments “improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses”. In addition, the standard introduces new disclosure requirements specifically for entities with a single reportable segment, and it aims to help investors better understand a company’s performance and assess potential future cash flows. The new guidance applies to all public entities subject to segment reporting under ASC 280. This ASU is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. The Group adopted this ASU for the year ended July 31, 2025. The adoption of ASU does not change how segments are identified, aggregated, or measured. It adds incremental disclosure requirements.
An operating segment is a component of the Group that engages in business activities from which it may earn revenues and incur expenses, and is identified on the basis of the internal financial reports that are provided to and regularly reviewed by the Group’s chief operating decision maker (“CODM”) in order to allocate resources and assess performance of the segment.
The management of the Group concludes that it has only one reporting segment. The Group provides game distribution and related services to game developers. The Group’s services have similar economic characteristics with respect to nature and form of the services provided. The Group’s chief operating decision maker has been identified as the Chief Executive Officer, who reviews Consolidated results when making decisions about allocating resources and assessing performance of the Group, rather than by geographic area; hence the Group has only one reporting segment. CODM reviews operation results on the consolidated in-game purchase amount, recoup of advances to game developers and revenue share with game developers and IP holders, advertising expenses, transaction fees, server cost directly related to the host of games, in-house payroll cost directly related to the art and design support services provided. The following table summarizes the operating results reviewed by CODM and reconciliation to net income as reported in the consolidated statement of comprehensive income.
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