Revenue Performance - For the three months ended March 31, 2025, the company generated revenue of $289,037, a decrease of approximately 9.3% compared to $318,643 for the same period in 2024[234]. - Revenue from the company's network marketing business decreased by $10,532 or approximately 28.4%, while revenue from complementary health therapies decreased by $29,318 or approximately 10.4%[234]. Cost and Profitability - Cost of revenue increased by $17,528 or approximately 15.2%, amounting to $132,751 for the three months ended March 31, 2025[236]. - Gross profit for the three months ended March 31, 2025 was $156,286, representing a gross margin of 54.1%, down from 63.8% in the same period of 2024[239]. - Selling expenses increased by $12,704 or approximately 25.2%, totaling $63,052 for the three months ended March 31, 2025[241]. - Net loss increased by $9,825, resulting in a net loss of $712,919 for the three months ended March 31, 2025, compared to a net loss of $703,094 for the same period in 2024[247]. Cash Flow and Working Capital - As of March 31, 2025, the company had working capital of $23,775,576, significantly up from $1,656,571 as of December 31, 2024[248]. - Net cash used in operating activities for the three months ended March 31, 2025 was $1,453,874, compared to $1,243,460 for the same period in 2024[249]. - Net cash used in investing activities for the three months ended March 31, 2025 was $23,000,649, primarily from advances for investment[252]. - Net cash provided by financing activities for the three months ended March 31, 2025 was $22,994,658, compared to a net cash used of $899 in the same period of 2024[255]. Asset Management - As of March 31, 2025, the allowance for credit loss was recognized at $41,360, an increase from $32,857 as of December 31, 2024, reflecting a growth of approximately 25.3%[264]. - The carrying amounts of operating right-of-use assets were $189,059 as of March 31, 2025, down from $224,595 as of December 31, 2024, indicating a decrease of about 15.8%[261]. - The Company recorded inventory write-offs of $6,777 for the three months ended March 31, 2025, compared to $0 for the same period in 2024[259]. - The Company has not recognized any impairment losses on operating right-of-use assets and property, plant, and equipment as of March 31, 2025[261]. Revenue Recognition and Accounting Policies - The Company’s revenue recognition follows the five-step model under ASC Topic 606, ensuring that revenue reflects the transfer of goods and services to customers[268]. - The Company’s sales of skin care, health, and wellness products are recognized when control is transferred to the customer, with a return period of 60 days[271]. - The Company evaluates the need for an allowance for credit loss based on ongoing credit evaluations and current economic conditions[291]. - The Company has not hedged exposures denominated in foreign currencies, limiting direct foreign exchange risk[290]. - The adoption of ASU 2023-07 regarding segment reporting is expected to have no material impact on the consolidated financial statements[280]. Equity and Financing - The Company issued Representative's Warrants to purchase up to 115,500 shares at $4.4 per share, effective from October 13, 2023[266].

Revenue Performance - Total revenue for the year ended December 31, 2024 decreased by $108,341, or approximately 7.6%, compared to 2023, with network marketing revenue dropping by $259,072, or approximately 65.4%[158] - Revenue from the provision of complementary health therapies increased by $87,622, or approximately 8.5%, during the same period[159] - The company launched new revenue streams in wellness and wellbeing lifestyle and green energy, contributing $64,854 in revenue[159] Cost and Expenses - Cost of revenue for 2024 amounted to $563,599, representing approximately 42.6% of revenue, an increase of $69,083, or approximately 14.0% from 2023[161] - Gross profit for 2024 was $759,148, with a gross margin of approximately 57.4%, down from $936,572 and 65.4% in 2023[163] - Selling expenses for 2024 significantly decreased by $466,291, or approximately 74.1%, totaling $162,712 compared to $629,003 in 2023[166] - General and administrative expenses increased by $768,858, or approximately 32.4%, totaling $3,134,874 in 2024 due to higher executive salaries and Nasdaq listing fees[168] Net Loss and Cash Flow - Net loss for the year ended December 31, 2024 was $2,486,044, an increase of $376,109, or approximately 17.8%, compared to the previous year[171] - Working capital as of December 31, 2024 was $1,656,571, a decrease from $4,113,614 in 2023[172] - Net cash used in operating activities for 2024 was $2,726,215, compared to $2,001,823 in 2023[173] - Net cash used in financing activities for the year ended December 31, 2024 was $11,856, primarily for the reduction of finance lease liability[177] - Net cash provided by financing activities for the year ended December 31, 2023 was $5,398,037, consisting of proceeds from issuance of common stock of $5,501,520, cash used for shares repurchased of $93,889, and reduction of finance lease liability of $9,594[177] Inventory and Credit Management - The company recognized an inventory write-down of $7,081 for the year ended December 31, 2024, compared to $0 for 2023[181] - The allowance for expected credit loss increased to $32,857 for the year ended December 31, 2024, from $542 in 2023[185] - Credit risk is primarily associated with accounts receivable, which the company mitigates through ongoing credit evaluations and short collection terms[214] - The company does not generally require collateral from customers, relying instead on credit evaluations[214] - The need for an allowance for doubtful accounts is evaluated based on specific customer credit risk, historical trends, and other relevant information[214] Accounting and Financial Reporting - The company adopted ASU 2014-09 for revenue recognition, which requires identifying performance obligations and recognizing revenue when control of goods and services transfers to customers[188] - The company derives revenues from sales contracts recognized when control of skin care, health, and wellness products is transferred to customers[191] - The company provides products and services for sustainability and energy savings, recognizing revenue based on the percentage of cost incurred[198] - The adoption of recent accounting standards has no material impact on the consolidated financial statements for the year ended December 31, 2024[211] Foreign Currency and Risk Management - The majority of the company's revenues are denominated in Malaysian Ringgit, while expenses are in Malaysian Ringgit, U.S. Dollar, and Hong Kong Dollar[212] - The company does not currently hedge exposures denominated in foreign currencies or use derivative financial instruments[212] - The value of the company's Common Stock may be affected by the foreign exchange rates between U.S. Dollar and Malaysian Ringgit, and U.S. Dollar and Hong Kong Dollar[213]

Revenue Performance - Revenue for the three months ended September 30, 2024, was $331,289, a decrease of $24,025 or approximately 6.8% compared to $355,314 for the same period in 2023[208]. - Revenue from the Company's network marketing business decreased significantly by $60,075, or approximately 67.3%, while revenue from complementary health therapies increased by $17,646, or approximately 6.6%[208]. - For the nine months ended September 30, 2024, total revenue was $962,971, a decrease of $77,046 or approximately 7.4% from $1,040,017 in 2023[218]. - Revenue from the Company's network marketing business for the nine months ended September 30, 2024, decreased by $223,271, or approximately 70.1%[218]. Cost and Expenses - Cost of revenue for the three months ended September 30, 2024, amounted to $147,104, an increase of $26,518 or approximately 22.0% from $120,586 in 2023[209]. - Total operating expenses for the three months ended September 30, 2024, were $732,295, an increase of $180,489 or approximately 32.7% from $551,806 in 2023[211]. - General and administrative expenses for the nine months ended September 30, 2024, amounted to $2,152,889, an increase of $598,647 or approximately 38.5% from $1,554,242 in 2023[224]. Profitability and Loss - Gross profit for the three months ended September 30, 2024, was $184,185, representing a gross margin of approximately 55.6%, down from 66.1% in 2023[210]. - Net loss increased to $524,039 for the three months ended September 30, 2024, compared to a net loss of $324,735 in 2023, an increase of $199,304[217]. - The net loss for the nine months ended September 30, 2024, increased to $1,659,449 from a net loss of $1,138,259 for the same period in 2023, reflecting an increase of $521,189[228]. Cash Flow and Working Capital - Net cash used in operating activities for the nine months ended September 30, 2024, was $2,080,879, compared to $995,706 for the same period in 2023, indicating an increase of 109.1%[230][231]. - Net cash used in investing activities for the nine months ended September 30, 2024, was $48,611, significantly higher than $7,200 for the same period in 2023[232]. - As of September 30, 2024, the company had working capital of $2,452,343, a decrease from $4,113,614 as of December 31, 2023[228]. Other Income and Tax - Other income for the three months ended September 30, 2024, was $21,196, an increase of $24,910 or approximately 670.7% compared to a net expense of $3,714 in 2023[215]. - For the nine months ended September 30, 2024, the company recorded other income, net of $79,588, representing an increase of approximately 859.7% compared to a net expense of $10,476 for the same period in 2023[225]. - The company recorded a provision for income taxes of $13,803 for the nine months ended September 30, 2024, compared to a tax benefit of $2,712 for the same period in 2023[227]. Financial Position and Assets - As of September 30, 2024, accumulated deficits amounted to $8,709,605, up from $7,047,571 as of December 31, 2023[228]. - The carrying amounts of operating right-of-use assets and property and equipment as of September 30, 2024, were $282,734 and $47,508, respectively, down from $357,301 and $77,858 as of December 31, 2023[238]. Accounting Standards and Risks - The adoption of ASU No. 2023-01 regarding leases is effective for reporting periods beginning after December 15, 2023, but is not expected to have a material impact on the financial statements for the nine months ended September 30, 2024[253]. - ASU 2023-07 on segment reporting will enhance disclosures about significant segment expenses and is effective for annual reporting periods beginning after December 15, 2023[256]. - ASU 2023-09 requires disclosure of reconciling items in income tax disclosures that meet a quantitative threshold of 5% and is effective for annual reporting periods beginning after December 15, 2024[257]. - ASU 2024-01 clarifies the scope of profits interest and similar awards, effective for annual reporting periods beginning after December 15, 2024, with no expected impact on financial statements[258]. - The company does not currently have significant direct foreign exchange risk, as most revenues and expenses are denominated in Malaysian Ringgit[260]. - Credit risk is mitigated by an ongoing credit evaluation process and relatively short collection terms, with no collateral generally required from customers[261]. - The company is evaluating the impact of new accounting standards on its consolidated financial statements[255]. - There are no other new accounting standards expected to have a material impact on the consolidated financial position or cash flows[260]. - The company has not hedged exposures denominated in foreign currencies or other derivative financial instruments[260]. - The company believes the concentration of credit risk in trade receivables is substantially mitigated[261].

Company Overview - Agape ATP Corporation (ATPC) focuses on enhancing quality of life and promoting sustainable development through health and wellness products and energy-saving solutions [2][3] - The company aims to cater to diverse customer needs, ensuring well-being and vitality while empowering businesses to achieve sustainability goals [2][3] Recent Developments - Agape ATP Corporation announced a 1-for-20 reverse stock split effective August 30, 2024, reducing the number of authorized shares from 1,000,000,000 to 50,000,000 [1] - The reverse stock split is intended to increase the market price per share to comply with NASDAQ's continued listing standards [1]

Revenue Performance - Total revenue for Q2 2024 was $313,039, a 3.0% increase from $303,935 in Q2 2023, with network marketing revenue decreasing by 67.7% and complementary health therapies revenue increasing by 33.1%[218] - For the six months ended June 30, 2024, total revenue was $631,682, a 7.7% decrease from $684,703 in the same period of 2023, driven by a 71.1% decline in network marketing revenue[228] Profitability - Gross profit for Q2 2024 was $193,561, with a gross margin of approximately 61.8%, down from $196,004 and 64.5% in Q2 2023[221] - For the six months ended June 30, 2024, gross profit was $396,981, with a gross margin of approximately 62.8%, down from 65.5% in the same period of 2023[230] - Net loss for Q2 2024 increased to $432,315 from $379,449 in Q2 2023, reflecting ongoing challenges in the network marketing segment[227] - Net loss increased by $321,886 from $813,524 for the six months ended June 30, 2023, to $1,135,410 for the six months ended June 30, 2024[237] Expenses - Operating expenses for Q2 2024 totaled $647,146, an increase of 16.5% from $555,537 in Q2 2023[222] - General and administrative expenses for Q2 2024 were $601,804, up 28.2% from $469,469 in Q2 2023, primarily due to increased salaries and professional fees[224] - Cost of revenue for Q2 2024 was $119,478, a 10.7% increase from $107,931 in Q2 2023, attributed to higher product costs[219] Cash Flow and Working Capital - Net cash used in operating activities for the six months ended June 30, 2024, was $1,656,000, compared to $742,175 for the same period in 2023, representing an increase of 123%[239][240] - Net cash used in investing activities for the six months ended June 30, 2024, was $3,567, a decrease from $6,499 in the same period in 2023[242] - Net cash used in financing activities for the six months ended June 30, 2024, was $2,847, significantly lower than $22,861 for the same period in 2023[242] - As of June 30, 2024, the working capital deficit was $3,017,911, compared to a working capital of $4,113,614 as of December 31, 2023[238] Accumulated Deficits and Assets - Accumulated deficits increased to $8,199,977 as of June 30, 2024, from $7,047,571 as of December 31, 2023[238] - The carrying amounts of operating right-of-use assets and property and equipment as of June 30, 2024, were $281,256 and $53,990, respectively, down from $357,301 and $77,858 as of December 31, 2023[246] - No inventory write-downs were recognized for the six months ended June 30, 2024, and 2023[244] Accounting Standards and Risks - The adoption of ASU 2023-01 has no material impact on the unaudited condensed consolidated financial statements for the six months ended June 30, 2024[260][261] - The FASB issued ASU 2024-01 regarding stock compensation, effective for annual reporting periods beginning after December 15, 2024, with no expected impact on the Company's consolidated financial statements[264] - ASU 2024-02 was issued to remove extraneous references in accounting guidance, effective for annual reporting periods beginning after December 15, 2024, and is not expected to significantly impact financial statements[265] - There are no other new accounting standards expected to materially impact the consolidated financial position or cash flows[266] Currency and Credit Risk - The Company primarily generates revenue in Malaysian Ringgit, with expenses also in Malaysian Ringgit, U.S. dollars, and Hong Kong dollars, indicating limited direct foreign exchange risk[267] - The Company does not hedge foreign currency exposures and believes its foreign exchange risk is limited, although the value of its Common Stock may be affected by exchange rates[267] - Credit risk is primarily associated with accounts receivable, which is mitigated by an ongoing credit evaluation process and short collection terms[268] - The Company does not generally require collateral from customers and assesses the need for credit loss allowances based on specific customer credit risk and historical trends[268] Business Diversification - The company is diversifying into renewable energy, having formed a wholly owned subsidiary, ATPC Green Energy Sdn Bhd, to align with global energy trends[217]

Revenue Performance - Revenue for Q1 2024 was $318,643, a decrease of $62,124 or approximately 16.3% compared to $380,767 in Q1 2023, primarily due to a significant decline in network marketing revenue [191]. - Network marketing revenue decreased by $101,780 or approximately 73.3%, while revenue from complementary health therapies increased by $39,656 or approximately 16.4% [191]. Profitability - Gross profit for Q1 2024 was $203,420, with a gross margin of 63.8%, down from $252,408 and a gross margin of 66.3% in Q1 2023 [193]. - Net loss for Q1 2024 was $703,094, an increase of $269,019 from a net loss of $434,075 in Q1 2023 [200]. Expenses - General and administrative expenses increased by $271,013 or approximately 45.5%, totaling $867,266 in Q1 2024, mainly due to salaries and professional fees [197]. - Cost of revenue for Q1 2024 was $115,223, a decrease of $13,136 or approximately 10.2% from $128,359 in Q1 2023 [192]. Cash Flow - Net cash used in operating activities for Q1 2024 was $1,243,460, compared to $272,555 in Q1 2023 [203]. - Net cash used in financing activities for Q1 2024 was $899, a significant reduction from $6,961 in Q1 2023 due to the payment of deferred offering costs [206]. Working Capital and Assets - The company had working capital of $3,428,530 as of March 31, 2024, down from $4,113,614 as of December 31, 2023 [201]. - As of March 31, 2024, the carrying amounts of operating right-of-use assets and property, plant and equipment were $314,390 and $63,080, respectively, compared to $41,593 and $160,480 as of March 31, 2023 [210]. Other Income and Financial Condition - Net other income for Q1 2024 was $27,282, a significant increase of $11,689 or approximately 75.0% compared to $15,593 in Q1 2023 [198]. - The Company has no significant off-balance sheet arrangements that could materially affect its financial condition as of March 31, 2024 [206]. - The Company does not have any credit facilities or access to bank credit [206]. Revenue Recognition and Accounting Policies - The Company recognizes revenue from sales of health and wellness products at the point of transfer to customers, net of estimated discounts and returns [215]. - The Company has adopted ASU No. 2023-01 regarding leases, effective for reporting periods beginning after December 15, 2023, with no material impact on financial statements for Q1 2024 [221]. - The Company is currently evaluating the impact of ASU 2023-07 on its consolidated financial statements, effective after December 15, 2023 [222]. Risk Management - The Company has not hedged exposures denominated in foreign currencies, limiting direct foreign exchange risk [227]. - The Company evaluates the need for an allowance for doubtful accounts based on credit risk factors, historical trends, and other information [228]. - No inventory write-downs or write-offs were recognized for the three months ended March 31, 2024 and 2023 [208]. Future Outlook - The company is in the process of introducing a new range of products for its network marketing business to enhance revenue potential [191].

Financial Performance - Total revenue for the year ended December 31, 2023 was $1,431,088, a decrease of $425,476 or approximately 22.9% from $1,856,564 in 2022[169] - Revenue from the network marketing business decreased significantly by $741,641 or approximately 65.2%, while revenue from complementary health therapies increased by $317,888 or approximately 44.4%[170] - Cost of revenue for 2023 was $494,516, approximately 34.6% of revenue, down from $666,042 or 35.9% in 2022, representing a decrease of $171,526 or approximately 25.8%[171] - Gross profit for 2023 was $936,572, with a gross margin of approximately 65.4%, compared to $1,190,522 and a gross margin of approximately 64.1% in 2022[173] - The company recorded a net loss of $2,109,935 for the year ended December 31, 2023, an increase of $443,856 or approximately 26.6% from the net loss of $1,666,079 in 2022[180] - Other income for 2023 was $40,219, a significant change from net other expenses of $136,868 in 2022, mainly due to unrealized holding gains on marketable securities[178] Expenses - Selling expenses increased by $267,589 or approximately 74.0% to $629,003 in 2023, primarily due to increased promotional expenses[174] - Commission expenses decreased significantly by $317,219 or approximately 78.3% to $88,132 in 2023, due to reduced revenue from the network marketing business[175] - General and administrative expenses increased by $408,993 or approximately 20.9% to $2,366,016 in 2023, driven by increased salaries and operational growth in complementary health therapies[176] Cash Flow and Working Capital - Net cash used in operating activities for 2023 was $2,001,823, significantly higher than $811,683 in 2022[188] - The company reported a net change in cash and cash equivalents of $3,394,030 for 2023, a significant improvement from a decrease of $1,159,418 in 2022[187] - As of December 31, 2023, the company reported working capital of $4,113,614, an increase from $799,239 as of December 31, 2022[186] - The company had net cash provided by financing activities of $5,398,037 in 2023, compared to a net cash used of $234,466 in 2022[191] Market and Operational Strategy - The company plans to expand into Asian markets, focusing on Thailand, Indonesia, and Taiwan, leveraging e-commerce for growth[185] - The company has modified its operations to manage inventory effectively amid potential supply chain disruptions due to COVID-19[183] - There is uncertainty regarding the financial impact of COVID-19, with no guarantee of revenue growth in 2024 and beyond[185] - The company recognized no inventory write-downs for 2023, compared to $5,307 in 2022[194] Regulatory and Accounting Updates - In July 2023, the FASB issued ASU No. 2023-03, which amends various SEC paragraphs but did not significantly impact the company's consolidated financial statements[208] - In October 2023, the FASB issued ASU No. 2023-06, aimed at improving disclosure requirements, with no expected significant impact on the company's consolidated financial statements[209] - In November 2023, the FASB issued ASU 2023-07 to enhance reportable segment disclosures, effective for annual reporting periods beginning after December 15, 2023[211] - In December 2023, the FASB issued ASU 2023-09, requiring specific disclosures in rate reconciliation, effective for annual reporting periods beginning after December 15, 2024[212] - The company adopted ASU No. 2019-10, effective January 1, 2023, with no material impact on consolidated financial statements for the year ended December 31, 2023[213] Risk Management - The company does not believe it has significant direct foreign exchange risk, as most revenues and expenses are denominated in Malaysian Ringgit[214] - Credit risk is mitigated by the company's ongoing credit evaluation process and relatively short collection terms, with no general requirement for collateral from customers[215]

Core Points - Agape ATP (NASDAQ:ATPC) stock is experiencing a significant increase in trading volume, with over 13 million shares traded on Tuesday morning, compared to its daily average of approximately 112,000 shares [1] - The stock price has risen by 98% as of Tuesday morning, despite no new press releases or analyst coverage explaining the surge [2] - Agape ATP is classified as a penny stock, with a low closing price of 51 cents and a market capitalization of around $39.322 million [1][2] Trading Dynamics - The heavy trading activity may be attributed to the stock's penny status, which often attracts retail and day traders for potential pump and dump schemes [2] - The current trading environment suggests that while the stock is up, there is a risk of losing gains as traders may start to sell off [2] Market Context - The article highlights the general caution surrounding penny stocks, which are often targeted by market manipulators and can be volatile [3]

Revenue Performance - For the three months ended September 30, 2023, total revenue decreased by $308,575 or approximately 46.5% to $355,314, primarily due to a significant decline in the network marketing business revenue, which dropped by $373,817 or approximately 80.7%[223] - Revenue from the provision of complementary health therapies increased by $65,242 or approximately 32.5%, contributing $266,106, which accounted for approximately 74.9% of total revenue for the same period[223] - For the nine months ended September 30, 2023, total revenue decreased by $429,539 or approximately 29.2% to $1,040,017, with network marketing revenue declining by $702,636 or approximately 68.8%[233] Gross Profit and Margin - Gross profit for the three months ended September 30, 2023, was $234,728, representing a gross margin of approximately 66.1%, down from $506,144 and a gross margin of approximately 76.2% in the same period of 2022[225] - Gross profit for the nine months ended September 30, 2023, was $683,142, with a gross margin of approximately 65.7%, down from $1,128,997 and a gross margin of approximately 76.8% in the same period of 2022[234] Operating Expenses - Total operating expenses for the three months ended September 30, 2023, were $551,806, a decrease of $147,646 or approximately 21.1% from $699,452 in the prior year[226] - Commission expenses for the three months ended September 30, 2023, were $14,002, a significant decrease of $153,393 or approximately 91.6% compared to $167,395 in the same period of 2022[228] - General and administrative expenses for the nine months ended September 30, 2023, increased by $267,811 or approximately 20.8% to $1,554,242, primarily due to expenses related to complementary health therapies and ongoing uplisting efforts to Nasdaq[237] Net Loss - Net loss for the three months ended September 30, 2023, increased to $324,735, up by $84,518 from $240,217 in the same period of 2022[232] - Net loss for the nine months ended September 30, 2023, rose to $1,138,259, an increase of $195,522 from $943,007 in the same period of 2022[240] - The company experienced a net loss of $1,138,259 for the nine months ended September 30, 2023, compared to a net loss of $943,007 for the same period in 2022[247] Working Capital and Cash Flow - As of September 30, 2023, the company reported a working capital deficit of $445,245, down from a positive working capital of $799,239 as of December 31, 2022[247] - Net cash used in operating activities for the nine months ended September 30, 2023 was $995,706, an increase from $737,456 in the same period of 2022[249][250] Future Plans and Market Expansion - The company anticipates expanding into Asian markets, focusing on Thailand, Indonesia, and Taiwan, and will explore e-commerce for this expansion[245] - The company plans to reassess its office setup in the countries it operates to better service customers now that COVID-19 has subsided[245] Accounting Standards and Risks - The company adopted ASU 2016-13 on January 1, 2023, which changes the methodology for measuring credit losses on financial instruments[267] - The adoption of recent accounting standards did not have a material impact on the unaudited condensed consolidated financial statements for the three and nine months ended September 30, 2023[269] - The Company adopted ASUs 2016-13 and 2019-05 effective January 1, 2023, with no material impact on the financial statements for the three and nine months ended September 30, 2023[278] - The Company does not currently have significant direct foreign exchange risk, as most revenues and expenses are denominated in Malaysian Ringgit[281] - Credit risk is mitigated by an ongoing credit evaluation process and relatively short collection terms, with no general requirement for collateral from customers[282] - The Company has reviewed all recently issued accounting standards updates for applicability and impact[272] - There are no new accounting standards expected to materially impact the consolidated financial position or cash flows[279] - The FASB issued ASU No. 2023-01, effective for reporting periods beginning after December 15, 2023, which provides guidance on leasehold improvements associated with common control leases[273] - The FASB's ASU No. 2023-06 clarifies disclosure requirements but is not expected to have a significant impact on the financial statements[271] - The Company is currently evaluating the impact of ASU No. 2023-01 on its financial statements[273]

Revenue Performance - For the three months ended June 30, 2023, total revenue decreased by $92,772, or approximately 23.4%, to $303,935 compared to $396,707 for the same period in 2022[214]. - Revenue from the network marketing business decreased significantly by $93,872, or approximately 50.9%, while revenue from complementary health therapies increased marginally by $1,100, or approximately 0.5%[214]. - For the six months ended June 30, 2023, total revenue decreased by $120,964, or approximately 15.0%, to $684,703 compared to $805,667 for the same period in 2022[223]. Profitability and Expenses - Gross profit for the three months ended June 30, 2023, was $196,004, representing a gross margin of approximately 64.5%, down from $287,324 and a gross margin of approximately 72.4% in the same period of 2022[216]. - Operating expenses for the three months ended June 30, 2023, increased by $37,970, or approximately 6.4%, to $555,537 compared to $593,507 for the same period in 2022[217]. - General and administrative expenses for the six months ended June 30, 2023, increased by $235,319, or approximately 28.3%, to $1,065,723 compared to $830,404 for the same period in 2022[229]. - Net loss for the three months ended June 30, 2023, was $379,449, a reduction of $24,895 from a net loss of $404,344 for the same period in 2022[222]. - The company experienced a net loss of $813,524 for the six months ended June 30, 2023, with accumulated deficits reaching $5,746,112, compared to a net loss of $1,666,079 for the year ended December 31, 2022[237]. Cash Flow and Working Capital - As of June 30, 2023, the company reported a working capital deficit of $26,893, with cash and cash equivalents totaling $332,431 and time deposits of $321,323, compared to a working capital of $799,239 as of December 31, 2022[237]. - Net cash used in operating activities for the six months ended June 30, 2023 was $742,175, an increase from $495,727 for the same period in 2022[240][241]. - The company may need to consider financial support from related parties due to insufficient funds to meet working capital requirements and debt obligations[238]. Strategic Initiatives - The company is in the process of introducing a new range of products for its network marketing business, which has delayed the launch of existing products[214]. - The establishment of DSY Wellness aims to expand the company's business into traditional and complementary health therapies[213]. - The company anticipates expanding into Asian markets, focusing on Thailand, Indonesia, and Taiwan, and will explore e-commerce as a means of expansion[236]. - The company plans to reassess its office setup in countries of operation to better service customers as most nations adapt to living alongside COVID-19[236]. Financial Reporting and Risk Management - The company adopted ASU 2016-13 on January 1, 2023, which changes the methodology for measuring credit losses on financial instruments[259]. - The adoption of recent accounting standards did not have a material impact on the unaudited condensed consolidated financial statements for the six months ended June 30, 2023[260]. - The Company is currently evaluating the impact of ASU No. 2023-01 on its unaudited condensed consolidated financial statements, which is effective for reporting periods beginning after December 15, 2023[261]. - The Company does not believe it currently has any significant direct foreign exchange risk, as most revenues and expenses are denominated in Malaysian Ringgit[263]. - The Company has not hedged exposures denominated in foreign currencies or any other derivative financial instruments[263]. - Credit risk is primarily associated with accounts receivable, but is mitigated by an ongoing credit evaluation process and relatively short collection terms[264]. - The Company does not generally require collateral from customers, evaluating the need for an allowance for doubtful accounts based on specific customer credit risk[264]. Other Financial Metrics - The company recorded a decrease in net other expenses from $97,769 for the three months ended June 30, 2022, to $22,355 for the same period in 2023, a reduction of approximately 77.1%[220]. - The company had net cash used in investing activities of $6,499 for the six months ended June 30, 2023, compared to $750 for the same period in 2022[242]. - The company projects that revenue will revert to pre-pandemic levels, generating sufficient cash to cover operating expenses[237]. - The company did not recognize any inventory write-downs for the six months ended June 30, 2023 and 2022[245].