Revenue Performance - Total revenues decreased by approximately $1.0 million, or 36.3%, to approximately $1.7 million for the three months ended March 31, 2023, compared to approximately $2.7 million for the same period in 2022[194]. - Revenues from medical services decreased by approximately $0.8 million, or 49.2%, to approximately $0.8 million for the three months ended March 31, 2023, from approximately $1.6 million for the same period in 2022[196]. - Revenues from property management services decreased by approximately $0.2 million, or 17.7%, to approximately $0.9 million for the three months ended March 31, 2023, compared to approximately $1.1 million for the same period in 2022[199]. - The total cost of revenues decreased by approximately $0.1 million, or 7.2%, to approximately $1.3 million for the three months ended March 31, 2023, from approximately $1.4 million for the same period in 2022[201]. Profitability and Loss - Gross profit for the three months ended March 31, 2023, was approximately $403,598, a decrease of 68.3% compared to $1,271,246 for the same period in 2022[193]. - Gross profit decreased by approximately $0.9 million, or 68.3%, to approximately $0.4 million for the three months ended March 31, 2023, from approximately $1.3 million for the same period in 2022[204]. - The gross profit percentage for medical services decreased to 23.3% for the three months ended March 31, 2023, from 64.5% for the same period in 2022, a decrease of 41.2%[206]. - Net loss attributable to EUDA was approximately $2,414,645 for the three months ended March 31, 2023, compared to a net income of $222,585 for the same period in 2022, representing a change of 1,184.8%[193]. - The net loss was approximately $2.4 million for the three months ended March 31, 2023, compared to a net income of approximately $0.2 million for the same period in 2022[216]. Expenses - General and administrative expenses increased by 139.5% to approximately $1,975,607 for the three months ended March 31, 2023, compared to $824,896 for the same period in 2022[193]. - Operating expenses increased by approximately $1.2 million, or 99.0%, to approximately $2.4 million for the three months ended March 31, 2023, from approximately $1.2 million for the same period in 2022[208]. Client and Service Usage - The average usage of specialty care services per corporate client decreased from approximately $3,700 for the three months ended March 31, 2022, to approximately $2,140 for the same period in 2023[196]. - The number of corporate clients decreased from approximately 400 for the three months ended March 31, 2022, to approximately 370 for the same period in 2023 due to increased market competition[197]. Financial Position - As of March 31, 2023, the company had negative working capital of approximately $6.5 million and cash of approximately $0.8 million[217]. - As of March 31, 2023, total contractual obligations amounted to $6,036,273, with short-term loans and other payables being significant components[232]. - The fair value of prepaid forward purchase liabilities increased to $20,853,545 as of March 31, 2023, from $20,321,053 as of December 31, 2022[243]. Cash Flow - For the three months ended March 31, 2023, net cash used in operating activities was approximately $0.5 million, compared to $0.3 million for the same period in 2022, indicating an increase in cash outflow[226][227]. - Net cash provided by financing activities was approximately $0.5 million for the three months ended March 31, 2023, up from $0.3 million in the same period in 2022[229][230]. - The company did not incur any cash flow from investing activities for the three months ended March 31, 2023, compared to a cash outflow of approximately $29,000 in the same period in 2022[228]. Strategic Initiatives - The company aims to expand its operations across Southeast Asia, leveraging its proprietary platform for healthcare services[176]. - The company has invested in AI technology to enhance patient engagement and improve care coordination[191]. - The business combination with EUDA Health Limited was completed on November 17, 2022, resulting in EUDA becoming a wholly owned subsidiary[186]. Financing and Capital Structure - The company is in active discussions regarding a potential financing transaction through the issuance of convertible notes, aiming for completion in the fourth quarter of 2023 to improve liquidity[219]. - The company issued and sold 940,000 ordinary shares at $1.00 per share, raising a total of $940,000 in a private placement[221]. Tax and Accounting - The company recognizes uncertain tax positions as benefits only if they are "more likely than not" to be sustained in a tax examination[250]. - Deferred tax assets are reduced by a valuation allowance when it is more likely than not that some portion will not be utilized[249]. - Current income taxes are provided in accordance with the laws of relevant tax authorities[249]. - The company is classified as an "emerging growth company," allowing it to take advantage of certain exemptions from various reporting requirements[235]. - The company is classified as a smaller reporting company and is not required to provide certain market risk disclosures[252]. - Recent accounting standards are discussed in Note 3 of the unaudited condensed consolidated financial statements[251].

Compliance and Financial Health - The company is currently not in compliance with Nasdaq's continued listing standards, which may lead to potential delisting of its ordinary shares [106]. - As of December 31, 2022, the company reported a negative working capital deficit of approximately $4.1 million and cash and restricted cash of approximately $0.8 million [112]. - The company has experienced recurring losses from operations and negative cash flows from operating activities since 2020 [112]. - The company may require additional funding through debt or equity securities, which may not be available on acceptable terms [118]. - The company has incurred significant costs related to legal, accounting, and other expenses as a result of operating as a public company [124]. Management and Governance - The company has identified material weaknesses in its internal control over financial reporting, which could adversely affect its business [113]. - The management team has limited experience managing a publicly traded company, which could impact compliance with reporting obligations [120]. - Four former independent directors left the company's Board between January and May 2023, raising concerns about retention of key personnel [121]. Market and Competitive Landscape - The company faces significant competition in the digital healthcare market, which could impact its ability to maintain market share and profitability [145]. - EUDA's growth relies on strategic relationships with third parties, which require significant time and resources to establish [149]. - The digital health industry is still evolving, and EUDA's growth depends on the adoption and utilization of its services by clients and their members [135]. Client Relationships and Revenue - EUDA relies heavily on corporate clients in Singapore, which poses a concentration risk that could significantly impact revenue if key clients are lost [139]. - EUDA's revenue is directly proportional to the number of individuals covered by corporate clients, making retention and acquisition of clients critical for future revenue [141]. - Client dissatisfaction due to inadequate support services could lead to contract non-renewals or terminations, impacting revenue growth [174]. - EUDA's marketing efforts are heavily reliant on positive references from existing clients, and dissatisfaction could harm brand reputation and client acquisition [167]. Operational Risks and Challenges - The company currently employs about 10% of physicians and primary care specialists directly, with plans to expand this strategy [161]. - EUDA's business model requires substantial upfront investment in client acquisition, and failure to maintain these relationships could adversely affect financial performance [134]. - The company's ability to innovate and develop new services is critical for revenue growth, and failure to do so could materially affect operating results [162]. - EUDA's sales cycle is long and unpredictable, with significant upfront investments required for client acquisition, which may not guarantee widespread deployment of solutions [171]. Regulatory and Compliance Risks - EUDA's digital health offerings are subject to medical council oversight, and any regulatory changes could impact the ability to provide services [190]. - Compliance with evolving government regulations in the digital health industry may result in increased operational costs and affect the company's financial results [194]. - The company may incur additional costs to comply with new laws and regulations, which could delay product offerings and adversely affect business performance [196]. Data Security and Cybersecurity - Security measures are critical for protecting sensitive client data; failures could lead to significant liabilities and reputational harm [199]. - Cyber threats are evolving, requiring EUDA to allocate additional resources for enhancing information security measures [200]. - Breaches of security measures could result in unauthorized access to sensitive data, damaging client confidence and leading to potential litigation [201]. - EUDA may find its insurance coverage for cybersecurity inadequate or unavailable, impacting its financial condition [202]. Financial Risks - The company is exposed to interest rate risk due to short-term loans, which are subject to renewal and interest rate changes [307]. - Credit risk is managed through in-house research and monitoring of customer financial positions and industry exposures [308]. - Liquidity risk is controlled through financial position analysis, with the company seeking short-term funding when necessary [309].