Financial Performance - For the six months ended December 31, 2023, the group reported a non-operating loss of $2.7 million related to non-recurring expenses associated with the proposed sale disclosed in the announcement[16]. - The effective tax rate for continuing operations was 31.0% for the six months ended December 31, 2023, compared to (86.0)% for the same period in 2022, due to recorded losses for tax purposes and a decrease in tax liabilities[17]. - The company reported a pre-tax loss of $6,326,000 for the six months ended December 31, 2023, compared to a loss of $4,047,000 for the same period in 2022[116]. - Revenue for the six months ended December 31, 2023, was $21,804 million, a slight decrease of 0.4% compared to $22,181 million for the same period in 2022[150]. - Gross profit for the same period was $19,337 million, down from $19,789 million, reflecting a decrease of 2.3%[150]. - Net loss for the six months ended December 31, 2023, was $5,583 million, an increase of 32.5% from a net loss of $4,214 million in the prior year[152]. - Adjusted EBITDA for the six months was $1,800 million, an increase of 16.3% from $1,548 million in the same period last year[152]. Cash Flow and Liquidity - The company’s cash and cash equivalents decreased to $4.395 million as of December 31, 2023, from $12.758 million as of June 30, 2023[55]. - The company’s operating cash flow for the six months ended December 31, 2023, was $(1,659,000), a decrease from $620,000 in the prior year[116]. - Cash and cash equivalents as of December 31, 2023, were $16.2 million, against current liabilities of $31.4 million due within the next twelve months[169]. - The cash flow for the six months ending December 31, 2023, showed a decrease of $1,034 thousand[124]. - The current ratio declined from 0.5 on June 30, 2023, to 0.4 on December 31, 2023, mainly due to loan repayments and marketing costs related to the commercialization of its medical qualification certification business[193]. Debt and Equity - The total borrowings as of December 31, 2023, were $23.418 million, slightly down from $24.018 million as of June 30, 2023[59]. - The company's total equity as of December 31, 2023, was $(9,379) thousand, compared to $(4,084) thousand as of June 30, 2023, indicating a significant decline in equity[94]. - The debt-to-equity ratio as of December 31, 2023, was (249.7)%, worsening from (588.1)% as of June 30, 2023[94]. - The debt-to-equity ratio improved from -588.1% on June 30, 2023, to -249.7% on December 31, 2023, primarily due to loan repayments during the reporting period[194]. Expenses - The group incurred depreciation expenses of $1.1 million for the six months ended December 31, 2023, compared to $1.3 million for the same period in 2022[20]. - The group recognized amortization expenses of $3.0 million for the six months ended December 31, 2023, down from $3.1 million for the same period in 2022[22]. - Interest expenses increased to $1,322,000 for the six months ended December 31, 2023, compared to $967,000 for the same period in 2022[116]. - The company anticipates a significant reduction in operating expenses related to technology development over the next twelve months[159]. Shareholder Information - There were no dividends declared or paid for the six months ended December 31, 2023, and the same period in 2022[19]. - The company has granted a total of 5,000,000 share options under the pre-IPO share option plan as of December 31, 2023[32]. - The company reported a total of 590,188 share awards granted under the restricted share award plan as of December 31, 2023[39]. - The board does not recommend the payment of an interim dividend for the six months ending December 31, 2023[177]. Operational Highlights - The group achieved a high gross profit margin of 88.7% for the six months ending December 31, 2023, indicating that the actual cost of services provided will be significantly lower than the contract liabilities[147]. - The number of paid members as of December 31, 2023, was 125,581, a decrease of 0.8% compared to December 31, 2022, while the number of UK members increased by 5.0%[144]. - The group has 9,731 registered medical facilities as of December 31, 2023, a decrease of 2.0% from December 31, 2022[144]. - The group is focused on digital transformation in healthcare systems, particularly in supplier and medical credentialing areas, despite global economic slowdowns due to tightening monetary policies[143]. Governance and Compliance - The company has adopted a strict code of conduct for securities trading, ensuring compliance among all directors and employees[85]. - The company encourages all directors to participate in relevant training courses, with costs covered by the company[122]. - The board of directors is responsible for reviewing the composition of the board and overseeing the appointment and re-election of directors[129]. - The company has a restricted share award plan approved on June 7, 2022, for incentivizing key personnel[128].

Financial Performance - The company reported a net loss of $5.6 million for the six months ended December 31, 2023, compared to a net loss of $4.2 million for the same period in 2022, representing an increase in loss of approximately 33%[14]. - Total revenue for the six months ended December 31, 2023, was $21.8 million, slightly down from $22.2 million in the same period of 2022, indicating a decrease of about 1.7%[20]. - The company's gross profit for the six months ended December 31, 2023, was $19.3 million, compared to $19.8 million for the same period in 2022, reflecting a decline of approximately 2.5%[4]. - The company reported a total comprehensive loss of $5.4 million for the six months ended December 31, 2023, compared to a total comprehensive loss of $5.6 million for the same period in 2022[21]. - The company reported a net loss attributable to shareholders of $5.586 million for the six months ended December 31, 2023, compared to a loss of $4.212 million for the same period in 2022[52]. - The company reported a loss of $5,583,000 for the six months ending December 31, 2023, compared to a loss of $4,214,000 in the same period last year, representing a 32.5% increase in loss[63]. - Adjusted EBITDA for the six months was $1.8 million, an increase of $0.3 million from $1.5 million in the prior year, attributed to the implementation of new measures[78]. - Adjusted EBITDA for the period was $1,800,000, an increase of 16.3% from $1,548,000 in the previous year[63]. Expenses and Liabilities - Research and development expenses decreased to $7.6 million for the six months ended December 31, 2023, from $8.0 million in the same period of 2022, a reduction of about 5.5%[4]. - The company's total liabilities increased to $9.4 million as of June 30, 2023, compared to $4.1 million as of December 31, 2022, indicating a rise of about 129%[9]. - The company's current ratio declined from 0.5 on June 30, 2023, to 0.4 on December 31, 2023, indicating a decrease in liquidity[58]. - The company incurred non-recurring expenses of $2.7 million related to the proposed sale of Inception Point Systems Ltd.[88]. - The company has not declared or paid any dividends for the six months ended December 31, 2023, and December 31, 2022[53]. - The company has delayed the repayment date of approximately $23.4 million in outstanding bank loans originally due in December 2023[80]. - The company’s employee-related expenses constitute a significant portion of its operating costs[120]. - Employee compensation expenses totaled $12.2 million for the six months ending December 31, 2023, down from $13.7 million for the same period in 2022[125]. Assets and Equity - The total assets as of June 30, 2023, were $50.7 million, down from $58.6 million as of December 31, 2022, representing a decrease of approximately 13.5%[7]. - The total assets decreased from $58.6 million as of June 30, 2023, to $50.7 million as of December 31, 2023, primarily due to loan repayments and increased operational costs[58]. - The company’s equity attributable to owners decreased to $(5.4) million for the six months ended December 31, 2023, compared to $(5.6) million for the same period in 2022[22]. - The company had cash and cash equivalents of $16.2 million as of December 31, 2023, against bank loans and other liabilities totaling $31.4 million due within the next twelve months[69]. - The company’s equity attributable to shareholders was reported at $46 million in share capital and $72.776 million in share premium as of December 31, 2023[156]. Market and Future Outlook - The company expects to continue its focus on market expansion and new product development in the upcoming periods, although specific figures were not disclosed[19]. - The company plans to continue focusing on digital transformation in healthcare systems, particularly in supplier and medical credentialing areas[55]. - The company expects a significant reduction in operating expenses related to technology development within the next twelve months as the development of office products for healthcare professionals is largely completed[81]. - The company continues to implement restrictive policies regarding further development of medical personnel offices and new potential business-related investments[120]. Membership and Facilities - As of December 31, 2023, the company had 125,581 paying members, a decrease of 0.8% compared to December 31, 2022[118]. - The number of registered medical facilities was 9,731, a decrease of 2.0% from December 31, 2022[118]. Corporate Governance and Compliance - The company has maintained compliance with applicable corporate governance codes[101]. - The company has received waivers from lenders for certain covenants applicable to the reporting periods ending June 30, 2023, and December 31, 2023[121]. - The company plans to appoint a board member of a different gender by December 31, 2024, to enhance board diversity[126].

Financial Performance - The company's revenue increased by 8.1% from $40.7 million for the fiscal year ending June 30, 2022, to $44.0 million for the fiscal year ending June 30, 2023[17]. - Gross profit rose by 11.0% from $35.3 million for the fiscal year ending June 30, 2022, to $39.2 million for the fiscal year ending June 30, 2023[17]. - The gross margin improved by 2.3% to 89.1% for the fiscal year ending June 30, 2023, compared to the previous year[17]. - The average order value has increased, contributing to the overall revenue growth[17]. - The company reported a total of $24.36 million in property, plant, and equipment changes for the year ending June 30, 2023, compared to $7.998 million for the previous year[97]. - The company's total borrowings as of June 30, 2023, amounted to $24.0 million, a decrease from $28.5 million as of June 30, 2022[91]. - The company's premium reserve available for distribution to shareholders as of June 30, 2023, was $72.8 million[88]. - The company had restricted bank deposits of $10.9 million as of June 30, 2023, down from $12.8 million the previous year, which serve as collateral for certain bank borrowings[92]. - The company did not recommend the payment of a final dividend for the twelve months ending June 30, 2023[84]. Market Expansion and Strategy - The company is expanding its BioBytes™ technology into the telemedicine consultation market in Taiwan[17]. - A partnership was established with a local partner in Taiwan to ensure reliable healthcare services for citizens traveling abroad[14]. - The company is focusing on integrating data into a digital platform to enhance user experience and remote patient monitoring[13]. - The company aims to strengthen regional leadership and market sensitivity through dedicated business leadership in each service area[24]. - The company is investing in technology products and medical certification services to enhance its offerings[17]. - The company is leveraging strategic alliances and partnerships to extend its market reach and capabilities[18]. - The global telehealth market is projected to grow from $87.8 billion in 2022 to $285.7 billion by 2027, highlighting significant market expansion opportunities[55]. - Despite global economic challenges, the company remains focused on digital transformation in healthcare systems, particularly in vendor and medical credentialing areas[61]. - The company aims to provide innovative and reliable technology solutions to facilitate the digitalization of healthcare services[61]. - The company operates in North America, the UK, Taiwan, and other countries, indicating a broad international presence[58]. Membership and Collaboration - The company had 125,750 paid members as of June 30, 2023, down from 126,615 members a year earlier, indicating a decrease of 0.7%[58]. - The number of medical credentialing members increased by 181.1%, while the number of members in the UK grew by 4.8%[58]. - The company collaborates with 9,812 registered medical facilities, a decrease of 5.5% from the previous year[58]. - The company had 125,750 paying members in the United States as of June 30, 2023, with no single customer contributing more than 1.0% to total revenue, indicating no concentration risk[98]. Technology and Compliance - The company emphasizes the importance of technology and regulatory compliance as core components of its business strategy[59]. - The company faces operational, compliance, and legal risks associated with its SEC3URE platform, which is critical for revenue generation[74]. - The company has maintained compliance with all relevant laws and regulations across jurisdictions, including the US, Canada, and the UK, during the fiscal year ending June 30, 2023[78]. - The company has increased spending on technology to improve processes and safety for healthcare professionals combating COVID-19[76]. Shareholder and Executive Compensation - The company has granted a total of 5,000,000 share options under the pre-IPO share option plan, representing approximately 1.10% of the total issued shares as of the report date[120]. - As of June 30, 2023, the company has a total of 200 participants in the restricted share award plan, with a maximum of 34,283,411 shares available for purchase, equivalent to 7.5% of the total issued share capital at the time of adoption[124][126]. - The highest remuneration individuals in the company, two of whom are directors, did not receive any shares under the restricted share award plan as of June 30, 2023[126]. - The fair value of the shares granted under the restricted share award plan was HKD 5.50 per share at the time of grant[128]. - The exercise price for the share options granted to Mr. Sheehan is set at USD 0.875 per share[149]. - The share options granted to Mr. Sheehan will vest in five equal installments of 20% each, starting from February 1, 2020, and ending on February 1, 2024[149]. - The weighted average closing price of shares prior to the vesting date of the share awards was HKD 4.66[132]. - The total number of shares awarded during the period was 2,153,698, with 2,365,124 shares vested and 1,290,473 shares exercised[154]. - The company aims to attract suitable talent and retain key personnel through the restricted share award plans, which are valid for 10 years from their respective approval dates[150]. - The company has revised the rules of the restricted share award plans to redistribute the maximum share purchase limit, effective from June 7, 2022[150]. Financial Management - The total amount raised from the IPO was approximately $50.91 million, with $29.83 million utilized as of April 30, 2022[67]. - The company allocated approximately $2.50 million for potential mergers, acquisitions, and strategic alliances, expected to be fully utilized within 24 months from the announcement date[67]. - The company aims to utilize the remaining unallocated funds of approximately $6.62 million based on management's assessment and market conditions[67]. - The company reported an increase in technology investments, with approximately $8.60 million planned for this purpose[67].

Financial Performance - For the twelve months ended June 30, 2023, the net loss was $8.8 million, primarily due to R&D, marketing, and other costs related to the commercialization of the medical qualification certification business[14]. - The company reported a net loss of $8.8 million for the twelve months ending June 30, 2023[54]. - Net loss decreased from $11.6 million to $8.8 million for the twelve months ended June 30, 2023, primarily due to costs related to the commercialization of medical credentialing and eBadge technology[1]. - The total comprehensive loss attributable to the company's owners was $8.5 million for the year, compared to $13.5 million in the previous year[8]. - Basic and diluted loss per share was reported at $0.020 for the year ending June 30, 2023[71]. - Operating loss for the twelve months ended June 30, 2023, was $6.3 million, compared to $4.5 million in the previous year[7]. - The company reported a pre-tax loss of $8.3 million for the twelve months ended June 30, 2023, down from $12.4 million in the prior year[6]. Revenue and Profitability - Total revenue increased from $40.7 million for the twelve months ended June 30, 2022, to $44.0 million for the twelve months ended June 30, 2023, representing an increase of 8.1% in average subscription fees[1]. - Gross profit rose from $35.3 million to $39.2 million, with a gross margin increase of 2.3% to 89.1% for the twelve months ended June 30, 2023[1]. Expenses - Research and development expenses amounted to $20.3 million for the twelve months ended June 30, 2023, compared to $19.5 million for the same period in 2022[1]. - Sales and marketing expenses increased to $5.2 million from $4.2 million year-over-year[5]. - General and administrative expenses rose to $24.3 million from $21.8 million year-over-year[5]. Assets and Liabilities - Total liabilities amounted to $62.6 million as of June 30, 2023, compared to $68.0 million as of June 30, 2022[51]. - The current liabilities net amount increased to $29.0 million as of June 30, 2023, compared to $19.1 million as of June 30, 2022[31]. - Current liabilities included borrowings of $24.0 million as of June 30, 2023, compared to $28.5 million as of June 30, 2022[51]. - Non-current liabilities included lease liabilities of $6.2 million as of June 30, 2023, down from $7.0 million the previous year[50]. - The company’s total equity and liabilities amounted to $58.6 million as of June 30, 2023, compared to $74.4 million the previous year[51]. - The company’s asset return rate was negative 13.3% for the twelve months ended June 30, 2023, showing no significant fluctuation compared to negative 13.2% for the same period in 2022[12]. Cash Flow and Working Capital - Cash and cash equivalents, along with restricted cash, amounted to approximately $23.7 million as of June 30, 2023[54]. - The company generated positive operating cash flow during the twelve months ending June 30, 2023[54]. - The company has undertaken measures to alleviate cash flow pressure, including reducing cash outflows for restricted share awards and not conducting any share buybacks[54]. - The company plans to maintain sufficient working capital for operations over the next twelve months starting from June 30, 2023[55]. Employee and Compensation - As of June 30, 2023, the company had 184 employees, an increase from 143 employees as of June 30, 2022[35]. - Total employee compensation, including director remuneration, amounted to $30.5 million for the twelve months ending June 30, 2023, compared to $19.5 million for the same period in 2022, reflecting a 56.4% increase[35]. - The company has implemented stock option plans and restricted share award plans to attract and retain key employees, promoting growth[35]. Investments and Financial Policies - The company has established a policy to limit investments in further developing medical personnel offices and new potential businesses[14]. - The company has adopted a code of conduct for securities trading by directors that is at least as stringent as the standard code[39]. - The company has not purchased, sold, or redeemed any of its listed securities during the reporting period[40]. - The company anticipates that the adoption of new accounting standards will not have a significant impact on its consolidated financial statements in future periods[48]. Accounting and Financial Reporting - The group capitalizes development costs as intangible assets and amortizes them on a straight-line basis over a period of 3 years[107]. - The group recognizes impairment losses when the carrying amount of an asset exceeds its recoverable amount[125]. - The group assesses whether all acquired assets and liabilities have been correctly identified during acquisitions[105]. - The group’s functional currency is the currency of the primary economic environment in which each entity operates, typically presented in USD[113]. - The group uses the straight-line method to amortize finite-lived intangible assets over their estimated useful lives[108]. - The group recognizes development costs as intangible assets when they meet specific criteria, otherwise, they are expensed as incurred[149].

Financial Performance - Revenue for the six months ended December 31, 2022, was $22,181 million, an increase of 7.8% from $20,572 million for the same period in 2021[194]. - Gross profit for the same period was $19,789 million, up from $17,939 million, reflecting a gross margin improvement[194]. - Operating loss increased to $3,282 million compared to a loss of $1,896 million in the prior year[194]. - The total comprehensive loss for the period was $5,605 million, an improvement from a loss of $8,981 million in the previous year[68]. - The net loss for the six months ended December 31, 2022, was $4.2 million, an improvement from a net loss of $9.2 million for the same period in 2021[186]. - Financing costs rose to $967 million from $787 million, while financing income increased to $183 million from $56 million[68]. - The company reported a tax expense of $167 million, up from $105 million, reflecting changes in tax obligations[194]. - The effective tax rate for the six months ended December 31, 2022, was (86.0)%, compared to a tax benefit of 1.2% for the same period in 2021[88]. Cash Flow and Liquidity - Operating cash flow generated was $620,000, compared to a negative cash flow of $(3,725,000) in the same period last year[43]. - Net cash flow from operating activities was $306,000, a significant improvement from $(3,147,000) year-over-year[43]. - Cash and cash equivalents at the end of the period totaled $17,466,000, down from $21,459,000 at the end of the previous period[43]. - Cash flow used in investing activities was $(467,000), a decrease from $9,133,000 in the prior period[43]. - Cash flow used in financing activities was $(4,857,000), compared to $(15,767,000) in the same period last year[43]. - The company reported a significant increase in cash received from restricted cash, amounting to $3,150,000, up from $750,000 in the previous period[43]. - Cash reserves decreased significantly from $23,506 thousand to $17,466 thousand, reflecting a decline of approximately 25.7%[40]. - Total cash and cash equivalents, including short-term bank deposits and restricted cash, amounted to $27,328,000, down from $36,350,000[59]. Assets and Liabilities - As of December 31, 2022, total assets amounted to $62,894 thousand, a decrease from $74,425 thousand as of June 30, 2022, representing a decline of approximately 15.5%[40]. - Total liabilities decreased from $58.7 million as of June 30, 2022, to $41.1 million as of December 31, 2022, with contract liabilities reducing from $22.6 million to $20.7 million[176]. - The company's equity attributable to owners decreased from $6,421 thousand to $711 thousand, a drop of approximately 89%[40]. - Retained earnings fell from $30,209 thousand to $25,995 thousand, a decrease of about 13.5%[40]. - Non-current assets, including property, plant, and equipment, decreased from $34,842 thousand to $33,744 thousand, a reduction of about 3.1%[40]. Investments and Research - The company plans to utilize approximately HKD 396.95 million from the global offering for various purposes, including business support and technology investment[2]. - As of December 31, 2022, the company has allocated HKD 234.60 million for business support across regions and HKD 67.07 million for increasing technology investments[2]. - The company continues to invest in technology products like BioBytes™ and expand telemedicine consultations in Taiwan[13]. - Research and development investment totaled $7.6 million for the six months ended December 31, 2022, compared to $6.7 million for the same period in 2021[185]. - The company recorded an expenditure of $2.5 million for the development of its technology platform for both the six months ended December 31, 2022, and June 30, 2022[119]. Corporate Governance - The company has established a compensation committee to review and assess the remuneration policies for directors and employees[29]. - The company has adopted a board diversity policy to enhance performance through diverse perspectives[37]. - The company emphasizes the importance of considering candidates' qualifications, skills, and experience in board nominations[33]. - The management committee held one meeting during the six months ending December 31, 2022[32]. - The company believes that board diversity will significantly enhance its performance[37]. Shareholder and Employee Matters - The company does not recommend the payment of an interim dividend for the six months ending December 31, 2022[5]. - The company had a weighted average number of shares outstanding of 452,545 thousand shares for the six months ended December 31, 2022[115]. - The total number of shares granted under the Employee Retention and Recognition (ERR) plan as of December 31, 2022, was 1,538,666[163]. - The total number of options granted was 8,003,221[157]. - The company has a maximum share purchase limit of 34,283,411 shares under the restricted share award plan, which represents 7.5% of the issued share capital at the time of board approval[155]. Market and Operational Challenges - The company continues to face challenges due to COVID-19, impacting the demand for healthcare services[61]. - Management believes macro market drivers favor the company's unique value proposition as a reliable end-to-end technology platform[16]. - The company has a strategy focused on connecting supply and demand in healthcare through a reliable interactive technology platform[16]. - The company anticipates growth in three main areas due to its technology solutions being a cost-effective option[16]. - The company is expanding its platform to include all types of medical facilities, including home healthcare markets, and has partnered with suppliers in Taiwan for telehealth services[187].

Company Operations and Growth - The company operates a cloud-based digital platform that manages patient health records and extends to healthcare services, supporting over 10,000 medical locations globally [17]. - The customer base grew by 11.6% in the last fiscal year, currently supporting over 126,000 members, with a 15.1% increase in the U.S. member base [18]. - The BioBytes™ remote patient monitoring solution is being widely distributed in Langfang, China, with a population of approximately 4.5 million [21]. - In the last fiscal year, the U.K. medical locations experienced an 11.4% growth, while the U.K. member base increased by 26.5% [18]. - The company recorded a monthly increase of 2,516 members in May, indicating strong growth momentum [18]. - The company is collaborating with local partners in Taiwan to ensure reliable healthcare services for citizens both locally and abroad [21]. - The company emphasizes the importance of seamless healthcare experiences, aiming to enhance customer loyalty and trust [17]. - The company is reforming the delivery, acceptance, and payment methods of healthcare services globally [18]. Financial Performance - Total revenue for the fiscal year ending June 30, 2022, increased by 8.0% to $40.7 million, up from $37.7 million for the previous fiscal year [34]. - Membership increased by 11.6% to 126,615 members as of June 30, 2022, compared to the previous year [33]. - The number of registered medical facilities rose by 1.5% to 10,381 as of June 30, 2022 [34]. - The company reported a net loss of $11.6 million for the fiscal year ending June 30, 2022, compared to a net loss of $3.0 million in the previous year [35]. - The company's assets decreased from $101.8 million on June 30, 2021, to $74.4 million on June 30, 2022, primarily due to unauthorized bank fund disbursements and expenses related to new product development [43]. - The gross profit increased from $32.8 million to $35.3 million during the same period [35]. - The company generated approximately 97% of its total revenue from the United States for the twelve months ended June 30, 2022 [53]. - The total operating loss for the twelve months ended June 30, 2022, was $4.5 million, compared to a loss of $4.3 million for the previous period [50]. Expenses and Liabilities - General and administrative expenses increased from $18.1 million for the twelve months ended June 30, 2021, to $21.8 million for the twelve months ended June 30, 2022, primarily due to increased headcount and new global headquarters rental costs [67]. - Research and development expenses increased from $13.8 million to $14.1 million, reflecting ongoing investment in new technologies [50]. - Sales and marketing expenses decreased from $4.8 million to $4.2 million, primarily due to staff reductions and lower administrative costs [65]. - Total liabilities increased significantly from $31.4 million to $58.7 million, marking an increase of about 86% [89]. - The company's total equity dropped from $35.0 million to $6.4 million, a decrease of approximately 82% due to share repurchases and net losses [100]. Cash Flow and Capital Management - The current ratio decreased from 1.6 as of June 30, 2021, to 0.7 as of June 30, 2022, indicating a decline in liquidity [44]. - The company experienced unauthorized fund disbursement losses totaling $7.0 million due to a social engineering incident [45]. - The company reported a significant increase in adjusted EBITDA, which enhances investor understanding by excluding non-recurring expenses that do not reflect core operating performance [81]. - The company has allocated approximately $2.50 million for potential mergers, acquisitions, and strategic alliances, with a similar timeline for utilization [193]. - The company has not issued any financial instruments for hedging purposes as of June 30, 2022, and will consider hedging significant foreign currency risks as needed [127]. Strategic Direction and Management - The company is focused on developing new technologies and business growth strategies to expand its market presence, particularly in North America and the Asia-Pacific region [161]. - The executive team is committed to overseeing the overall management and operations of the company, including technology development and business model formulation [162]. - The company aims to leverage its board members' diverse experiences to identify and develop key client relationships in various sectors [168]. - The company has established a successful and innovative healthcare technology platform to enhance safety and compliance in the healthcare industry since its founding in 2010 [160]. - The company is actively pursuing opportunities for market expansion and potential acquisitions to enhance its competitive position [168]. IPO and Future Plans - The company reported a total of approximately HKD 396.95 million in net proceeds from its initial public offering, with HKD 232.53 million already utilized as of April 30, 2022 [188]. - The company plans to increase technology investments, with an allocation of approximately HKD 67.07 million, also expected to be fully utilized within 24 months from the announcement date [188]. - The company has no significant future plans for major investments or capital assets as of June 30, 2022 [154]. - The company has undergone a restructuring process since its registration in the Cayman Islands in June 2016, becoming the holding company for its current group of companies [184].

Financial Performance - Revenue increased by 8.1% to $20.6 million compared to the same period last year[13] - Gross profit rose by 7.4% to $17.9 million[13] - Adjusted EBITDA surged by 430.8% to $3.7 million[13] - Net loss for the period was $9.2 million, compared to a net loss of $1.4 million in the previous year[14] - Revenue for the six months ended December 31, 2021, was $20.572 million, compared to $19.031 million for the same period in 2020, reflecting a growth of approximately 8.1%[29] - Gross profit increased to $17.939 million from $16.709 million year-over-year, indicating a positive trend in profitability[29] - Operating loss improved to $(1.896) million from $(3.346) million in the previous year, showing a reduction in operational challenges[29] - The company reported a net loss of $9,154,000 for the six months ended December 31, 2021, compared to a net loss of $1,393,000 in the prior year[159] - Financing costs reduced to $787,000 from $1,112,000, showing a decrease in interest expenses[156] - Total comprehensive loss for the period was $(8,981,000), compared to $(1,947,000) in the prior year, indicating a challenging financial environment[159] Membership and User Growth - Membership base grew by 6.0% to 120,962 members as of December 31, 2021[14] - The company has a network covering over 10,000 medical locations and 168,000 active users, aiming for strong growth as COVID-19 impacts diminish[18] - Membership numbers have recorded growth for ten consecutive months despite challenges posed by the Omicron variant and regulatory restrictions[22] Research and Development - Total R&D investment amounted to $6.7 million, with $2.5 million capitalized and $4.2 million expensed[13] - Research and development expenses remained stable at $7,325,000 compared to $7,343,000 in the previous year[156] Financial Position and Liquidity - Total assets decreased from $101.8 million as of June 30, 2021, to $74.9 million as of December 31, 2021, due to share repurchases and write-offs[23] - The current ratio dropped from 1.6 to 0.9 during the same period, influenced by share repurchases and a decrease in trade payables[24] - The company's operating cash decreased from $18.1 million as of June 30, 2021, to $4.4 million as of December 31, 2021, primarily due to write-offs of uncollectible amounts and share repurchase costs[33] - The debt-to-equity ratio increased from 89.8% as of June 30, 2021, to 229.4% as of December 31, 2021, mainly due to the utilization of $11.2 million for share repurchases[36] - Total cash and cash equivalents decreased from $31.3 million as of June 30, 2021, to $21.5 million as of December 31, 2021[37] - Cash and cash equivalents in USD decreased from $25.9 million as of June 30, 2021, to $19.7 million as of December 31, 2021[41] - The company’s total assets less current liabilities were $43.2 million as of December 31, 2021, down from $70.3 million as of June 30, 2021[37] Shareholder and Corporate Governance - The company believes it has complied with all applicable corporate governance codes during the reporting period[52] - The company has adopted the corporate governance code and complied with its provisions as of December 31, 2021[108] - The board of directors consists of seven members, including the executive chairman and CEO, ensuring a separation of powers[110] - The company has established strict guidelines for securities trading by its directors and employees, ensuring compliance with the standard code[109] - The company encourages shareholders to attend the annual general meeting to communicate their views directly to the board, ensuring high accountability[146] Employee Compensation and Retention - The company implemented an employee retention plan to mitigate workforce turnover during the pandemic, issuing shares and enhancing training[19] - As of December 31, 2021, the group had 141 employees, with total employee compensation expenses amounting to $11.5 million, up from $9.1 million in the previous year[68] - The board approved a performance-based restricted share reward plan for all employees on December 1, 2021, to attract and retain key personnel[68] Legal and Compliance Matters - As of December 31, 2021, the company has ongoing litigation related to employment agreement violations and fraud claims, with no provisions recorded due to expected positive outcomes[46] - The company has no post-reporting period events that require shareholder attention[56] Cash Flow and Investments - Cash flow from financing activities resulted in $(15,767) thousand, a decline from $9,497 thousand in the previous year[171] - Cash flow from investing activities was $9,133 thousand, a recovery from $(10,702) thousand in the prior year[171] - The company has been actively seeking suitable investment opportunities to enhance shareholder value[18] Stock Options and Share Awards - The company has granted options to purchase up to 11,700,000 shares under the pre-IPO share option plan, with 5,040,000 shares available for two participants as of December 31, 2021[81] - The company has adopted a restricted share reward plan to incentivize key employees, with options being converted from the pre-IPO share option plan[81] - The total number of unexercised stock options was 5,040,000, with an average exercise price of $0.875 per share[82] - The total number of stock options exercised as of December 31, 2021, was 567,400, with an average exercise price of $0.003[97]