Revenue Performance - Reported annual revenue of $35.61 million, a decrease of $0.18 million or 0.5% compared to FY 2024[7] - Year over Year decline in Telecommunications Products & Services revenue of $5.59 million or 17% compared to FY 2024[7] - Year over Year growth in SMS & MMS revenue of $5.52 million or 206% compared to FY 2024[7] Financial Position - At February 28, 2025, total assets were $48.82 million and total liabilities were $35.16 million[13] - Cash balance at February 28, 2025, was $1.13 million with a working capital surplus of $6.90 million[13] Profitability - Reported annual net loss of $5.11 million, an increase of $1.30 million or 34% compared to FY 2024[7] Expenses - Marketing costs increased by $136,206 or 97% due to the promotion of the newly launched DaGe App platform[9] - General and administrative expenses decreased by $137,710 or 2% during the year[9] Strategic Initiatives - Introduction of new platforms such as the DaGe Platform and C2 Platform contributed to revenues in FY 2025[9] - Company remains committed to growth strategy through platform development and market expansion efforts[9]

Core Insights - FingerMotion, Inc. reported its financial results for Q1 of fiscal 2026, highlighting modest revenue growth and ongoing margin pressures due to evolving business dynamics [2][6] - The company is focusing on building higher-margin, data-driven business lines and refining operations to ensure long-term scalable growth [2] Financial Performance - Reported quarterly revenue of $8.46 million, a 1% increase compared to Q1 of fiscal 2025 [6] - Telecommunications Products & Services revenue was $8.31 million, down 1% from Q1 of fiscal 2025 [6] - DaGe Platform revenue grew to $10,938 from $463 in Q1 of fiscal 2025 [6] - Command and Communication segment contributed $109,241 in revenue, compared to $0 in Q1 of fiscal 2025 [6] - Big Data segment generated $27,310 in revenue, compared to $0 in Q1 of fiscal 2025 [6] - Cost of revenue increased to $8.31 million, resulting in a gross profit of $152,521, a 78% decrease from $681,889 in Q1 of fiscal 2025 [6] - Operating expenses were $2.14 million, a 9% decrease from $2.36 million in Q1 of fiscal 2025 [6] - Net loss attributable to shareholders was $2.01 million, a 21% increase from $1.66 million in Q1 of fiscal 2025 [6] - Basic and diluted loss per share reported at $0.04, compared to $0.03 for Q1 of fiscal 2025 [6] Company Overview - FingerMotion is a technology company specializing in mobile payment and recharge platform solutions in China [3] - The company aims to grow its user base organically and develop an ecosystem of highly engaged users utilizing its innovative applications [3] - FingerMotion's long-term vision includes serving over 1 billion users in the China market and expanding to other regional markets [3]

PART I – FINANCIAL INFORMATION This section presents FingerMotion, Inc.'s unaudited condensed consolidated interim financial statements and management's analysis [ITEM 1 – FINANCIAL STATEMENTS](index=9&type=section&id=ITEM%201%20%E2%80%93%20FINANCIAL%20STATEMENTS) This section presents FingerMotion, Inc.'s unaudited condensed consolidated interim financial statements and notes for Q1 2025 and 2024 [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This section presents the company's financial position, including assets, liabilities, and equity, for May 31, 2025 and February 28, 2025 | Metric | May 31, 2025 (Unaudited) ($) | February 28, 2025 ($) | | :----------------------- | :----------------------- | :------------------ | | Cash and cash equivalents | $2,863,238 | $1,128,135 | | Accounts receivable, net | $38,781,671 | $32,659,437 | | Total Current Assets | $48,889,413 | $42,037,360 | | TOTAL ASSETS | $55,708,451 | $48,820,451 | | Total Current Liabilities | $39,489,417 | $35,134,555 | | TOTAL LIABILITIES | $39,506,569 | $35,161,495 | | TOTAL SHAREHOLDERS' EQUITY | $16,201,882 | $13,658,956 | - Total assets increased by approximately **$6.89 million**, from $48.82 million at February 28, 2025, to $55.71 million at May 31, 2025, primarily driven by an increase in cash and accounts receivable[8](index=8&type=chunk) - Total liabilities increased by approximately **$4.34 million**, from $35.16 million at February 28, 2025, to $39.51 million at May 31, 2025, mainly due to an increase in accounts payable[8](index=8&type=chunk) [Unaudited Condensed Consolidated Statements of Operations](index=6&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Operations) This section details the company's revenues, expenses, and net loss for the three months ended May 31, 2025 and 2024 | Metric | Three Months Ended May 31, 2025 ($) | Three Months Ended May 31, 2024 ($) | Change (YoY) | | :------------------------------------ | :------------------------------ | :------------------------------ | :----------- | | Revenue | $8,458,743 | $8,373,983 | +1.01% | | Cost of revenue | $(8,306,222) | $(7,692,094) | +8.00% | | Gross profit | $152,521 | $681,889 | -77.65% | | Total operating expenses | $(2,141,451) | $(2,357,978) | -9.18% | | Net loss from operations | $(1,988,930) | $(1,676,089) | +18.66% | | Net Loss | $(2,022,761) | $(1,655,832) | +22.16% | | Net loss attributable to shareholders | $(2,008,556) | $(1,655,904) | +21.29% | | Loss Per Share - Basic | $(0.04) | $(0.03) | +33.33% | | Loss Per Share - Diluted | $(0.04) | $(0.03) | +33.33% | - Revenue increased slightly by **1% year-over-year**, reaching $8.46 million for the three months ended May 31, 2025[9](index=9&type=chunk) - Gross profit significantly decreased by **77.65% year-over-year**, from $681,889 to $152,521, primarily due to an 8% increase in cost of revenue[9](index=9&type=chunk) [Unaudited Condensed Consolidated Statement of Shareholders' Equity](index=7&type=section&id=Unaudited%20Condensed%20Consolidated%20Statement%20of%20Shareholders%27%20Equity) This section outlines changes in shareholders' equity, including common stock issuances and net loss, for the three months ended May 31, 2025 | Metric | Balance at March 1, 2025 | Common Stock Issued (Cash) | Common Stock Issued (Service) | Common Stock Issued (Customer Deposit Conversion) | Net Loss | Balance at May 31, 2025 | | :------------------------------------ | :----------------------- | :------------------------- | :---------------------------- | :---------------------------------------------- | :--------- | :---------------------- | | Common Stock (Shares) | 57,141,186 | 1,679,743 | 27,500 | 560,000 | — | 59,408,429 | | Common Stock (Amount) ($) | $5,714 | $168 | $3 | $56 | — | $5,941 | | Additional Paid-in Capital ($) | $47,304,416 | $2,956,447 | $56,760 | $1,399,944 | — | $51,717,567 | | Accumulated Deficit ($) | $(34,187,384) | — | — | — | $(2,008,556) | $(36,195,940) | | Total Shareholders' Equity ($) | $13,658,956 | $2,956,615 | $56,763 | $1,400,000 | $(2,022,761) | $16,201,882 | - Total shareholders' equity increased from **$13,658,956** at March 1, 2025, to **$16,201,882** at May 31, 2025, primarily due to common stock issuances for cash, professional services, and conversion of customer deposits, despite a net loss[11](index=11&type=chunk) - The company issued **1,679,743 shares for cash**, **27,500 shares for professional services**, and **560,000 shares for the conversion of customer deposits** during the period[11](index=11&type=chunk) [Unaudited Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This section details the company's cash inflows and outflows from operating, investing, and financing activities for the three months ended May 31, 2025 and 2024 | Cash Flow Activity | Three Months Ended May 31, 2025 ($) | Three Months Ended May 31, 2024 ($) | | :------------------------------------ | :------------------------------ | :------------------------------ | | Net cash used in operating activities | $(1,204,217) | $(1,409,939) | | Net cash used in investing activities | $(1,826) | $0 | | Net cash provided by financing activities | $2,956,615 | $775,000 | | Effect of exchange rates on cash & cash equivalents | $(15,469) | $181,831 | | Net change in cash | $1,735,103 | $(453,108) | | Cash at end of period | $2,863,238 | $1,064,124 | - Net cash used in operating activities decreased by **$205,722**, from $(1,409,939) in 2024 to $(1,204,217) in 2025[13](index=13&type=chunk)[219](index=219&type=chunk) - Net cash provided by financing activities significantly increased to **$2,956,615** in 2025 from $775,000 in 2024, driven by proceeds from common stock issuance and warrant exercises[13](index=13&type=chunk)[221](index=221&type=chunk) [Notes to the Unaudited Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20the%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed explanations and disclosures supporting the unaudited condensed consolidated financial statements [Note 1 – Nature of Business and basis of Presentation](index=9&type=section&id=Note%201%20%E2%80%93%20Nature%20of%20Business%20and%20basis%20of%20Presentation) FingerMotion, Inc. was incorporated in 2014, refocused to IT after a reverse acquisition in 2017, and operates in China via a VIE structure - FingerMotion, Inc. was incorporated on January 23, 2014, and changed its name from Property Management Corporation of America on July 13, 2017, following a change in control and acquisition of Finger Motion Company Limited (FMCL)[

Core Viewpoint - FingerMotion's subsidiary, JiuGe Technology, is collaborating with Qingling Motors to develop next-generation intelligent vehicle solutions aimed at enhancing efficiency and sustainability in commercial mobility [1][4]. Group 1: Collaboration Details - The joint effort focuses on creating smarter technologies for high-demand sectors such as logistics and emergency response, with Qingling Motors handling vehicle design and compliance, while JiuGe Technology provides system integration and software development [2][3]. - A joint technical taskforce has been established to accelerate innovation, streamline product development, and reduce time-to-market, emphasizing mutual knowledge exchange and shared intellectual property development [3]. Group 2: Market Positioning and Future Plans - This initiative positions both companies to lead in the digital transformation of the commercial vehicle sector, particularly in markets requiring connected and reliable platforms [4]. - Future efforts will include international market expansion and the creation of remote service ecosystems to support specialized logistics and emergency response applications [4]. Group 3: Company Backgrounds - FingerMotion is a technology company with a focus on mobile payment and recharge solutions in China, aiming to grow its user base and develop an ecosystem of high engagement [5]. - Qingling Motors, founded in 1985, is a leading commercial vehicle manufacturer in China, known for its expertise in chassis engineering and new energy powertrains [6].

Core Viewpoint - FingerMotion's subsidiary, JiuGe Technology, has formed a strategic collaboration with Zhejiang Jincheng Automotive to co-develop advanced emergency response vehicles, enhancing public safety solutions [1][2]. Group 1: Collaboration Details - The collaboration will focus on developing and marketing a new line of emergency response vehicles, including communication, command, and rescue units [2]. - Key areas of collaboration include product development, sales and promotion, customer support, and resource integration to improve operational efficiency [3]. Group 2: Strategic Alignment - This alliance aligns with JiuGe Technology's long-term growth strategy to strengthen its market position in the emergency response sector, leveraging combined technological expertise and market reach [4]. Group 3: Company Background - FingerMotion is a technology company specializing in mobile payment and recharge platform solutions in China, aiming to grow its user base and develop an ecosystem of high engagement [5]. - Zhejiang Jincheng Automotive, a subsidiary of Zhejiang Jinnong Group, specializes in vehicle development and manufacturing, with a registered capital of RMB 1 billion [6].

Financial Performance - FingerMotion reported annual revenue of $35.61 million, a decrease of $0.18 million or 0.5% compared to FY 2024 [4] - The company experienced a year-over-year decline in Telecommunications Products & Services revenue of $5.59 million or 17% compared to FY 2024 [4] - SMS & MMS business revenue grew by $5.52 million or 206% year-over-year compared to FY 2024 [4] - Big Data revenue declined by $0.39 million or 118% year-over-year compared to FY 2024 [4] - Revenue from the DaGe Platform was $0.08 million in FY 2025, while revenue from the Command & Communication (C2 Platform) was $0.19 million [4] Expense Management - General and administrative expenses decreased by $137,710 or 2% during the year [3] - Marketing costs increased by $136,206 or 97% due to the promotion of the newly launched DaGe App platform [3] - Research and development expenses decreased by $66,792 or 10% due to savings from data access and usage fees [3] Profitability and Loss - Gross profits were reported at $2.76 million, a decrease of $1.10 million or 28% compared to FY 2024 [4] - Annual cost of revenue increased by $0.91 million or 3% compared to FY 2024, totaling $32.84 million [4] - Operating expenses rose by $1.03 million or 13% compared to FY 2024, totaling $8.71 million [4] - The company reported an annual net loss of $5.11 million, an increase of $1.30 million or 34% compared to FY 2024 [4] Financial Position - As of February 28, 2025, FingerMotion had $1.13 million in cash, a working capital surplus of $6.90 million, and positive shareholders' equity of $13.66 million [4] - Total assets were reported at $48.82 million, with total current liabilities of $35.13 million and total liabilities of $35.16 million [4] - The company had 57,141,186 common shares issued and outstanding as of February 28, 2025 [4] Strategic Outlook - The CEO expressed confidence in the performance of the SMS & MMS business and the potential growth from the DaGe and C2 platforms [3] - The company aims to expand its customer base and diversify offerings to enhance market penetration [3] - FingerMotion envisions serving over 1 billion users in the China market and expanding to other regional markets [5]

Dividend Policy and Restrictions - The company has not declared or paid any dividends on its common stock and intends to retain all available funds for operations and growth[26]. - The company's ability to pay dividends is subject to PRC legal restrictions, which permit payments only from accumulated after-tax profits[28]. - The ability to pay dividends is limited to the registered capital amount of the WFOE, as determined by Chinese accounting standards[35]. - The Chinese government imposes controls on the conversion of RMB into foreign currencies, potentially complicating the remittance of dividends[35]. - The company relies on payments from the VIE to the WFOE to facilitate dividend payments to shareholders[31]. - The ability to pay dividends is subject to Chinese taxes, including a 6% VAT and 25% enterprise income tax, which may restrict cash flow[31]. - Current Chinese regulations allow the WFOE to pay dividends only out of its registered capital, which may limit the Company's ability to distribute profits[35]. - The company’s WFOE must allocate at least 10% of annual after-tax profits to a statutory general reserve fund until it reaches 50% of registered capital[28]. Regulatory Compliance and Risks - The company has not received any inquiries or sanctions from the CSRC regarding the Overseas Listing Trial Measures as of the report date[23]. - The Overseas Listing Trial Measures require domestic companies to file with the CSRC for overseas offerings if certain conditions are met, potentially impacting the company's operations[20]. - The company faces uncertainties regarding the interpretation and application of Chinese laws and regulations, which could materially affect its operations[19]. - The company faces risks related to the interpretation of Chinese laws and regulations regarding the VIE structure, which could materially affect operations[18]. - The PCAOB determined it could inspect registered public accounting firms in mainland China and Hong Kong, affecting the company's compliance status under the HFCAA[36]. - As of the latest report, the company is not a Commission Identified Issuer under the HFCAA, reducing the risk of delisting from Nasdaq[36]. - The enactment of the HFCAA could still cause investor uncertainty and negatively impact the market price of the company's common stock[37]. - The Overseas Listing Trial Measures require domestic companies to comply with filing procedures for overseas offerings, with penalties for non-compliance ranging from RMB1,000,000 to RMB10,000,000[20]. VIE Structure and Financial Implications - The company relies on payments from its VIE to its WFOE under the VIE Agreements for cash requirements, including dividends[25]. - The VIE is obligated to make payments to the WFOE, but such payments are subject to Chinese taxes, including a 6% VAT and 25% enterprise income tax[25]. - The VIE is obligated to make payments to the WFOE, which may be restricted by Chinese taxes including a 6% VAT and 25% enterprise income tax[31]. - The company relies on payments from the VIE to the WFOE for cash requirements, which may be limited by various regulatory restrictions[31]. Cybersecurity and Investigations - The company has not been involved in any cybersecurity investigations by Chinese regulatory authorities as of the report date[19]. - The company has not been involved in any cybersecurity investigations by Chinese regulatory authorities as of the report date[19].

Company Overview - FingerMotion, Inc. is a mobile services, data, and technology company focused on mobile payment and recharge platform solutions in China [7] - The company aims to grow its user base organically and develop an ecosystem of highly engaged users, with a long-term goal of serving over 1 billion users in the China market and expanding to other regions [7] Upcoming Event - FingerMotion will participate in the 15th Annual LD Micro Invitational on April 9th and 10th, 2025, at the Westin Grand Central in New York [1][4] - The company is scheduled to present on April 10, 2025, at 8:00 a.m. ET, with CEO Martin J. Shen representing the company [2][3] Event Details - The LD Micro Invitational XV will feature over 50 companies presenting in half-hour increments and will include private meetings with interested parties [5] - Registration for the event will begin at 2:00 p.m. ET on April 9th, followed by keynotes and a happy hour [4]

Company Participation - FingerMotion, Inc. will participate in the 37th Annual ROTH Conference from March 16 to 18, 2025, at The Laguna Cliffs Marriott in Dana Point, California [1] - The event will feature 1-on-1 meetings, small group discussions, fireside chats, and panels with executive management from approximately 450 companies across various growth sectors [2] Management's Perspective - FingerMotion's CEO, Martin Shen, expressed excitement about the conference, highlighting it as an excellent platform to showcase the company's innovative products and services to the investment community [4] Company Overview - FingerMotion is a technology company specializing in mobile payment and recharge platform solutions in China, aiming to grow its user base and develop an ecosystem of highly engaged users [6] - The company aspires to serve over 1 billion users in the Chinese market and plans to expand its model to other regional markets [6]

Company Overview - FingerMotion, Inc. is a mobile services, data, and technology company focused on mobile payment and recharge platform solutions in China [1] - The company aims to grow its user base organically and develop an ecosystem of highly engaged users utilizing its innovative applications [1] - FingerMotion's long-term vision includes serving over 1 billion users in the China market and expanding to other regional markets [1] Recent Developments - The company held its annual meeting of stockholders on February 28, 2025, where several key decisions were made [1] - Martin J. Shen, Hsien Loong Wong, Yew Poh Leong, Eng Ho Ng, and Tuck Seng Low were elected to the Board of Directors [3] - CT International LLP was appointed as the independent registered public accounting firm for the company [3] - The executive compensation was approved, and Martin J. Shen was re-appointed as President and CEO, while Yew Hon Lee was re-appointed as CFO, Secretary, and Treasurer [3]