Revenue Performance - Revenues from MahJong and other casual games were approximately US$1.1 million in 2023, a decrease from US$1.3 million in 2022 and US$1.5 million in 2021[97]. - Revenues generated from the online sports game Tales Runner were approximately US$2.7 million in 2023, down from US$3.4 million in 2022 but up from US$2.4 million in 2021[98]. - Accumulated sales revenues of the mobile role-playing game Yume100 reached approximately US$12.8 million as of December 31, 2023[100]. - Total operating revenues for 2023 were approximately US$4.3 million, a decrease of approximately US$1.3 million year-over-year[148]. - Operating revenues for 2023 were $4,292 thousand, a decrease of 23.2% from $5,585 thousand in 2022[164]. - Revenues from mobile games declined to $400 thousand in 2023 from $800 thousand in 2022, reflecting a broader trend of reduced online engagement post-COVID[165]. - The company collected $4.0 million in cash from customers in 2023, down from $6.5 million in 2022[179]. Financial Performance - The operating loss for 2023 was approximately US$3.2 million, an increase of US$0.1 million compared to the previous year[148]. - Net loss attributable to shareholders was approximately US$3.4 million, an increase of US$0.6 million year-over-year[148]. - GigaMedia's shareholders' equity decreased to US$43.5 million in 2023 from US$48.6 million in 2022[146]. - The company recorded approximately 33,000 active paying users, with an average revenue per paying user (ARPPU) ranging from approximately $40 to $100 for different services[120]. - The company incurred $0.7 million in research and development activities in 2023, down from $1.1 million in 2022 and $1.4 million in 2021[189]. - The net cash used in operating activities for 2023 was approximately $1,193 thousand, a decrease from $2,509 thousand in 2022[179]. - Cash, cash equivalents, and restricted cash at the end of 2023 totaled $38,783 thousand, down from $39,107 thousand at the end of 2022[179]. - The company has zero bank borrowing as of December 31, 2023, and expects to secure lines of credit for operational and strategic needs[176]. Market Strategy and Operations - The company intends to enhance its market position by focusing on mobile and browser-based entertainment services and expects to drive growth through organic means and accretive transactions[92]. - FunTown operates under an item-billing revenue model, allowing users to access basic game functions for free while offering in-game purchases[91]. - FunTown's marketing strategy includes in-game events, online advertising, and offline promotions to attract and retain users[107]. - The company collaborates with leading game development studios to source new online games and localize them for target markets[104]. - The company is transitioning its game portfolio from PC-based formats to browser and mobile platforms to meet changing market demands[190]. Regulatory and Compliance - The company operates under various regulations in Taiwan, including the Protection of Children and Youths Welfare and Rights Act, which governs internet content ratings[127]. - The company has not made any material changes in the accounting methodology used to evaluate investment in securities as of December 31, 2023 and 2022[197]. - The company adopted a written compensation recovery policy on October 30, 2023, in compliance with SEC rules[216]. Shareholder Information - Major shareholders include John-Lee Andre Koo with 2,159,999 shares (19.54%), and James Cheng-Ming Huang with 1,073,566 shares (9.71%) as of March 31, 2024[231]. - The total outstanding shares as of March 31, 2024, were 11,052,235, with 54.44% (6,017,090 shares) not held by major shareholders[234]. - The aggregate cash compensation paid to directors and executive officers for the year ended December 31, 2023, was approximately US$0.5 million[210]. - The company has a total of 4,000 ordinary shares underlying outstanding options granted to directors and executive officers, with an exercise price of $2.90 per share[211]. Employment and Organizational Structure - As of December 31, 2023, the total number of full-time employees decreased to 96 from 101 in 2022, representing a decline of approximately 4.95%[222][224]. - The company has a significant organizational structure with wholly owned subsidiaries operating in Taiwan, Hong Kong, and the British Virgin Islands[140]. - The board of directors currently comprises six members, including one female director and five independent non-executive members[217]. Taxation and Financial Implications - The company is likely classified as a Passive Foreign Investment Company (PFIC) for the taxable year ended December 31, 2023, due to a significant amount of cash and the price of its shares[267]. - If classified as a PFIC, shareholders may face special tax rules on excess distributions and gains realized on the sale of shares, which could result in ordinary income taxation[268]. - The company does not impose taxes on capital gains, but gains on share disposals may be treated as income if connected to trade or business activities in Singapore[255]. - U.S. persons holding shares may be required to file IRS Form 8938 if the aggregate value of specified foreign financial assets exceeds $50,000[278].

Core Viewpoint - GigaMedia Limited reported a significant decline in revenues and increased net losses for the year 2023, while also implementing cost-cutting measures and focusing on AI development for future growth [2][6][10]. Financial Performance - For the full year 2023, GigaMedia's revenues were $4.3 million, down 23.2% from $5.6 million in 2022 [5][6]. - Gross profit for 2023 was $2.4 million, a decrease of 24.7% compared to $3.25 million in 2022 [5]. - The operating loss for 2023 was $3.2 million, slightly higher than the $3.0 million loss in 2022 [6][8]. - The net loss for 2023 was $3.5 million, compared to a net loss of $2.8 million in 2022, with a loss per share of $0.31 [5][6][8]. Fourth Quarter Overview - In Q4 2023, revenues decreased by 18.8% quarter-on-quarter and 21.1% year-over-year, primarily due to seasonal factors and declines in licensed games [5][8]. - The loss from operations in Q4 was $0.6 million, an improvement from a loss of $0.9 million in Q3 2023 [5][8]. - The net loss for Q4 was $2.6 million, which included a $2.2 million valuation loss on investments [8][9]. Balance Sheet and Cash Position - At the end of 2023, GigaMedia had cash, cash equivalents, and restricted cash totaling $38.8 million, a slight decrease from $39.1 million at the end of 2022 [3][9]. - The company maintained a solid financial position with zero bank loans and shareholders' equity of approximately $42.8 million [9][10]. Business Strategy and Outlook - GigaMedia plans to develop AI-powered tools to enhance efficiency in content renovation for casual games and explore commercialization opportunities for these tools [3][10]. - The company is also focused on expanding through mergers and acquisitions to accelerate growth and enhance shareholder value [11].

Financial Performance - GigaMedia reported revenues of $1.07 million in Q3 2023, a 4.5% increase from $1.03 million in Q2 2023, but a 32.0% decrease year-over-year from $1.58 million[6]. - Gross profit for the third quarter was $0.58 million, up 3.0% from $0.57 million in the previous quarter, but down 38.6% from $0.95 million in the same quarter last year[8]. - The consolidated loss from operations was $0.89 million, a slight improvement from a loss of $0.92 million in Q2 2023[9]. - The net loss attributable to GigaMedia was $0.51 million, compared to a net loss of $0.56 million in the previous quarter[9]. - EBITDA for Q3 2023 was reported at $(0.95) million, an improvement from $(0.98) million in Q2 2023[6]. - Net income attributable to GigaMedia for Q3 2023 was $(507,036), compared to $(561,588) in Q2 2023, showing an improvement of 9.7%[19]. - EBITDA for Q3 2023 was $(946,423), slightly better than $(982,343) in Q2 2023, indicating a reduction in losses[19]. Cash and Assets - Cash, cash equivalents, and restricted cash totaled $38.8 million as of September 30, 2023, or $3.51 per share[7]. - Total current assets decreased to $39,708,402 from $47,022,222 in the previous quarter, a decline of approximately 15.4%[18]. - Cash and cash equivalents increased to $38,510,253 from $37,462,050 in the previous quarter, a rise of 2.8%[18]. - Accounts receivable - net rose to $252,757 from $187,385 in the previous quarter, an increase of 34.8%[18]. - Marketable securities - noncurrent increased significantly to $9,432,596 from $2,371,000 in the previous quarter, a growth of 296.5%[18]. - The net asset value per share was approximately $4.27[4]. Liabilities and Equity - Total liabilities decreased to $3,449,913 from $3,395,682 in the previous quarter, a slight increase of 1.6%[18]. - Total equity decreased to $47,229,725 from $47,754,712 in the previous quarter, a decline of 1.1%[18]. - Accrued expenses increased to $1,005,141 from $855,201 in the previous quarter, an increase of 17.5%[18]. - Other current liabilities remained relatively stable at $720,223 compared to $718,266 in the previous quarter, showing minimal change[18]. Strategic Outlook - GigaMedia plans to expand its customer base and improve revenue generation mechanisms while exploring strategic investment and acquisition opportunities[10]. - The company expressed cautious optimism for the upcoming quarter despite slow consumer sentiment recovery[8]. Profitability Metrics - The gross profit margin for Q3 2023 was 54.4%, slightly lower than 55.2% in the previous quarter[3].

Financial Performance - GigaMedia reported revenues of $1.03 million in Q2 2023, a decrease of 22.6% quarter-on-quarter and 24.8% year-over-year[4]. - Gross profit for the second quarter was $0.57 million, down 28.5% from the previous quarter and 26.9% from the same period last year[7]. - The net loss attributable to GigaMedia was $0.56 million, compared to a net loss of $0.31 million in Q1 2023[7]. - Operating loss for Q2 2023 was $0.92 million, compared to a loss of $0.70 million in Q1 2023[7]. - The company reported an EBITDA loss of $0.98 million for Q2 2023[6]. - Net income attributable to GigaMedia for the quarter was a loss of $561,588, compared to a loss of $312,700 in the previous quarter[19]. - EBITDA for the quarter was reported at a loss of $982,343, worsening from a loss of $703,870 in the previous quarter[19]. - Total operating revenues for the first half of 2023 were $2.35 million, down from $2.91 million in the same period last year[17]. Cash and Assets - Cash, cash equivalents, and restricted cash at the end of Q2 2023 totaled $37.8 million, a decrease of 0.9% from Q1 2023[8]. - Total current assets decreased to $47,022,222 from $47,482,257 in the previous quarter, a decline of 1.0%[18]. - Cash and cash equivalents decreased to $37,462,050 from $37,806,540 in the previous quarter, a drop of 0.9%[18]. - Accounts receivable increased to $187,385 from $154,890 in the previous quarter, an increase of 20.9%[18]. - Marketable securities - noncurrent decreased significantly to $2,371,000 from $10,322,000 year-over-year[18]. - Prepaid expenses decreased to $225,334 from $368,322 in the previous quarter, a decline of 38.8%[18]. - Total liabilities decreased slightly to $3,395,682 from $3,393,076 in the previous quarter, indicating stability[18]. - Total equity decreased to $47,754,712 from $48,310,127 in the previous quarter, reflecting a decline of 1.1%[18]. - Other current liabilities increased to $718,266 from $636,631 in the previous quarter, an increase of 12.8%[18]. Strategic Focus - The company plans to focus on boosting productivity and pursuing strategic expansion in the second half of 2023[10]. - The company is evaluating strategic investment targets to expand its business and enhance shareholder value[10]. - GigaMedia's net asset value was reported at $4.32 per share[4].

Revenue Performance - FunTown generated approximately US$1.3 million in revenue from MahJong and other casual games in 2022, a decrease from US$1.5 million in 2021 and US$1.8 million in 2020[96]. - Revenue from the online sports game Tales Runner increased to approximately US$3.4 million in 2022, up from US$2.4 million in 2021 and US$2.7 million in 2020, attributed to revitalization efforts during the COVID-19 pandemic[97]. - The accumulated sales revenue of the mobile role-playing game Yume100 reached approximately US$12.4 million since its launch in September 2015[99]. - Total operating revenues for 2022 were approximately US$5.6 million, an increase of approximately US$0.1 million year-over-year[142]. - Operating revenues for 2022 were $5,585 thousand, representing a 1.7% increase from 2021[159]. - Digital entertainment service revenues decreased from $1.5 million in 2021 to $0.8 million in 2022, while revenues from a licensed sports game increased by 42.9% to $3.4 million[160]. Expenses and Losses - Total costs and expenses decreased by approximately US$0.9 million year-over-year to US$8.6 million, primarily due to improved gross margin and controlled expenditures[142]. - The operating loss for 2022 was approximately US$3.0 million, a decrease of approximately US$1.0 million compared to the previous year[142]. - Net loss attributable to shareholders was approximately US$2.8 million in 2022, a decrease of US$0.4 million year-over-year[142]. - Gross profit for 2022 was $3,250 thousand, with a gross profit margin of 58.2%, up from 52.9% in 2021[161]. - Total operating expenses decreased by 8.9% to $6,271 thousand in 2022, primarily due to cost control measures[163]. - Product development and engineering expenses were $1,110 thousand in 2022, a reduction of 23.4% from 2021[163]. - Selling and marketing expenses decreased by 4.9% to $1,644 thousand in 2022, influenced by currency exchange rates[166]. - General and administrative expenses were $3,515 thousand in 2022, slightly down from $3,697 thousand in 2021[167]. Customer and Market Engagement - As of December 31, 2022, the company had approximately 9.0 million unique registered customers, with around 43,000 active paying users during the year[119]. - FunTown's marketing strategy includes in-game events and online promotions to increase user engagement and attract new players[108]. - FunTown operates under an item-billing revenue model, allowing users to access basic game functions for free while offering in-game purchases for enhanced experiences[91]. - The company plans to expand its mobile and browser-based game offerings to strengthen its market position in the digital entertainment industry[92]. - FunTown's digital entertainment services are primarily focused on the high-growth mobile and browser-based casual games market in Asia[89]. Competition and Market Landscape - The company faces competition from both online game operators and offline entertainment products, with major competitors including Soft-World and IGS[120][121]. - The competitive landscape includes online game operators in Taiwan and Hong Kong, with low barriers to entry for new competitors[143]. - The company anticipates increased competition in the digital entertainment market due to low entry barriers and the introduction of new products[121]. Financial Position and Assets - Total current assets as of December 31, 2022, were US$47.8 million, compared to US$42.6 million in 2021[140]. - Total assets decreased to US$52.1 million in 2022 from US$55.5 million in 2021[140]. - Total current liabilities were US$2.6 million in 2022, down from US$3.2 million in 2021[140]. - GigaMedia's shareholders' equity was US$48.6 million as of December 31, 2022, compared to US$50.9 million in 2021[140]. - Cash and cash equivalents at the end of 2022 were $39.107 million, down from $41.761 million at the end of 2021, reflecting a net decrease of $2.654 million[173]. Research and Development - The company invested over US$1.1 million in 2022 to enhance its in-house development capabilities for casual games[101]. - The company incurred $1.1 million in research and development expenses in 2022, down from $1.4 million in 2021 and $1.3 million in 2020[181]. - The company plans to primarily invest in software and computer hardware equipment in 2023 to support growth initiatives in its digital entertainment service business[179]. Governance and Compliance - The company has a standing audit committee and compensation committee, with all directors attending meetings held by each committee[209]. - The audit committee met five times during fiscal 2022, focusing on auditing, accounting, and risk management matters[210]. - The compensation committee met two times during fiscal 2022, evaluating executive compensation and performance[211]. - The company has adopted a code of ethics applicable to key executives and directors, with full text available on its website[284]. - An anti-fraud policy was adopted on December 19, 2005, and amended on February 13, 2009, to prevent fraud schemes[285]. Shareholder Information - As of March 31, 2023, major shareholders include John-Lee Andre Koo with 2,159,999 shares (19.54%), James Cheng-Ming Huang with 1,073,566 shares (9.71%), and Jonathan Honig with 1,105,145 shares (9.99%) of the total 11,052,235 shares outstanding[220]. - The total number of full-time employees decreased from 135 in 2020 to 101 in 2022, with a notable reduction in the Development function from 48 to 27[213][214]. - The company has not declared or paid any dividends and plans to retain earnings for business operations in the foreseeable future[227]. Risk Management - The company is subject to various market risks, including changes in interest rates and foreign currency exchange rates, which may impact its financial performance[269]. - The company has not used hedging transactions to reduce exposure to exchange rate fluctuations but may consider doing so in the future[270]. - The company maintains the bulk of its financial assets in U.S. dollar-denominated assets to limit foreign currency risk exposure[273]. Internal Controls - Management assessed the effectiveness of the internal control over financial reporting as of December 31, 2022, concluding it was effective[279]. - There were no changes in internal control over financial reporting during the year ended December 31, 2022, that materially affected its effectiveness[282]. - The company is a non-accelerated filer exempt from section 404(b) of the Sarbanes-Oxley Act, thus no attestation report from the registered public accounting firm is included[281].

Financial Performance - GigaMedia reported full year 2022 revenues of $5.6 million, a slight increase of 1.7% from $5.5 million in 2021[6] - The gross profit for 2022 was $3.3 million, with a gross margin rate increase from 52.9% to 58.2%[3] - The operating loss for 2022 was reduced to $3.0 million from approximately $4.0 million in 2021[7] - The net loss for 2022 was $3.1 million, a decrease from $3.4 million in the prior year, resulting in a loss per share of $0.28 compared to $0.31[7] - Fourth quarter revenues decreased by 30.0% quarter-on-quarter to $1.1 million and by 12.3% year-over-year[10] - The consolidated net income for the fourth quarter was $0.04 million, an improvement from a net loss of $0.9 million in the previous quarter[10] Cash and Assets - Cash, cash equivalents, and restricted cash at the end of 2022 amounted to $39.1 million, down from $39.6 million at the end of the prior quarter[10] - Total current assets as of 12/31/2022 were $48,008,107, a decrease from $48,901,532 as of 09/30/2022[22] - Cash and cash equivalents as of 12/31/2022 were $38,794,467, down from $39,243,562 as of 09/30/2022[22] - Total equity as of 12/31/2022 was $48,606,612, a slight decrease from $48,875,701 as of 09/30/2022[22] - The net asset value was approximately $4.40 per share as of the end of 2022[4] Operating Expenses and Losses - Operating expenses for the three months ended 12/31/2022 totaled $1,300,397, down 20% from $1,622,524 in the previous quarter[21] - Net loss attributable to shareholders for the three months ended 12/31/2022 was $40,267, a significant improvement compared to a loss of $868,740 in the previous quarter[21] - EBITDA for the twelve months ended 12/31/2022 was $(3,743,359), compared to $(3,656,151) for the twelve months ended 12/31/2021[23] Strategic Plans - GigaMedia plans to pursue growth and promote its business in a more cost-effective way amid economic uncertainties[12] - The company is exploring potential strategic investment and acquisition targets to accelerate corporate growth and enhance long-term profitability[13] Revenue Breakdown - Digital entertainment service revenues for the three months ended 12/31/2022 were $1,101,507, a decrease of 30% compared to $1,574,971 for the previous quarter[21] - Gross profit for the twelve months ended 12/31/2022 was $3,250,358, representing an increase of 11.8% from $2,907,899 for the twelve months ended 12/31/2021[21] Liabilities - Total liabilities decreased to $3,530,618 as of 12/31/2022 from $4,143,367 as of 09/30/2022[22] Foreign Exchange - The company reported a foreign exchange gain of $413,529 for the three months ended 12/31/2022, compared to a loss of $(635,103) in the previous quarter[21]

Revenue Performance - Revenues from MahJong and other casual games were approximately US$1.5 million in 2021, a slight decrease from US$1.8 million in both 2020 and 2019[101]. - Revenues generated from the PC-based MMO sports game Tales Runner were approximately US$2.4 million in 2021, down from US$2.7 million in 2020 but up from US$1.2 million in 2019[103]. - The accumulated sales revenues of the mobile role-playing game Yume100 since its launch were approximately US$11.9 million as of December 31, 2021[105]. - Total operating revenues for 2021 were approximately US$5.5 million, a decrease of approximately US$1.4 million year-over-year[150]. - Digital entertainment service revenues for 2021 were US$11.6 million, compared to US$7.1 million in 2020, reflecting a significant increase[147]. - Operating revenues decreased by 20.1% in 2021, totaling US$5.492 million compared to US$6.875 million in 2020[169]. - Revenues from mobile games declined to US$1.5 million in 2021 from US$2.3 million in 2020, and revenues from a licensed sports game decreased by US$0.3 million to US$2.4 million[169]. Financial Performance - The company incurred an operating loss of approximately US$4.0 million in 2021, an increase of approximately US$1.8 million year-over-year[150]. - The net loss for 2021 was approximately US$3.4 million, representing an increase of US$2.1 million year-over-year[150]. - Gross profit for 2021 was approximately US$6.5 million, up from US$3.5 million in 2020[147]. - Gross profit was US$2.9 million in 2021, with a gross profit margin of 52.9%, down from US$3.9 million and 57.0% in 2020[170]. - Total costs and expenses increased by approximately US$0.4 million year-over-year to US$9.5 million, primarily due to increases in depreciation and other expenses[150]. - Total current assets as of December 31, 2021, were US$42.6 million, down from US$46.5 million in 2020[148]. - Total liabilities for the company were US$3.2 million as of December 31, 2021, compared to US$2.9 million in 2020[148]. - The company recognized a non-operating income of approximately US$0.5 million in 2021, down from US$0.9 million in the prior year[150]. - The net loss attributable to shareholders increased by 164.9% to US$3.4 million in 2021 from US$1.3 million in 2020[178]. - Net cash used in operating activities was approximately US$4.1 million in 2021, compared to US$2.1 million in 2020[181]. - Cash, cash equivalents, and restricted cash at the end of 2021 were US$41.8 million, down from US$46.0 million in 2020[181]. Business Strategy and Operations - The company plans to enhance its market position by increasing focus on mobile and browser-based games, expecting to drive growth both organically and through accretive transactions[96]. - FunTown operates a mobile platform for casual games that works on both Android and iOS, allowing data synchronization between the two systems[112]. - The company utilizes an item-billing revenue model, allowing users to access basic game functions for free while offering in-game purchases for enhanced experiences[95]. - FunTown's marketing strategy includes in-game events and online promotions to increase user engagement and attract new users[113]. - The company has established a strong brand presence in Taiwan and Hong Kong, leveraging its community-based online platforms to cater to social networking needs[96]. - The company implemented a strategy to optimize its product portfolio by trimming underperforming products and investing US$1.4 million in developing its own offerings in 2021[167]. - The transition to browser/mobile casual games is underway to capitalize on growth trends in Asia[192]. Competition and Market Environment - The company expects increased competition in the digital entertainment market due to low entry barriers, with competitors having greater financial and technical resources[127]. - The company has faced strong competition from mobile and browser-based games, prompting the launch of a web-based MahJong game application to simplify user access[99]. - The business experiences seasonality, with stronger revenue typically in the first and fourth quarters, while the second and third quarters see slower sales[128]. Technology and Infrastructure - The company has developed an extensive technology infrastructure to support online game operations, including transitioning servers to cloud solutions[124]. - The company operates a scalable and modular architecture that includes key subsystems such as game services, a central user database, and billing and payment systems[123]. - The company collaborates with telecommunication network operators and payment aggregators to distribute game points, enhancing payment flexibility for users[120][121]. Regulatory and Compliance - The company is subject to various regulations in the digital entertainment industry, including personal data protection laws in Taiwan and Hong Kong[129][136]. - The company does not utilize variable-interest entities in its operations, maintaining a straightforward organizational structure[141]. Employee and Shareholder Information - As of December 31, 2021, the total number of employees decreased to 123 from 135 in 2020, with a notable reduction in development staff from 48 to 41[221]. - Major shareholders include John-Lee Andre Koo with 2,159,999 shares (19.54%), and James Cheng-Ming Huang with 1,073,566 shares (9.71%) as of March 31, 2022[230]. - The aggregate cash compensation paid to directors and executive officers for the year ended December 31, 2021, was approximately $0.6 million[211]. - The board of directors consists of 6 male directors and no female directors as of April 20, 2022[209]. Investment and Financing - GigaMedia entered into a convertible note purchase agreement for a principal amount of US$10,000,000 with Aeolus, bearing interest at 2% per annum, due on August 30, 2022, extendable to August 30, 2023[240]. - GigaMedia has the option to convert the note into ordinary or preferred shares of Aeolus at a price of US$3.00 per share, potentially owning approximately 4.62% of Aeolus's total ordinary shares upon full conversion[240]. - On December 30, 2021, GigaMedia converted US$2,000,000 of the note into 735,835 Series B Preferred Shares at a conversion price of US$2.718 per share, leaving a remaining principal amount of US$8,000,000[240]. - The company has not declared or paid any dividends and plans to retain earnings for business operations[236]. Foreign Exchange and Currency - The company recognized a realized foreign exchange gain of approximately US$21 thousand and an unrealized foreign exchange gain of approximately US$101 thousand for the year ended December 31, 2021[280]. - A hypothetical 10% change in the exchange rate between the U.S. dollar and the underlying currencies would result in a change of 0.11% in the company's total equity as of December 31, 2021[280]. - The NT dollar to U.S. dollar exchange rate fluctuated approximately 5% from January 1, 2021, to April 11, 2022, while the Hong Kong dollar to U.S. dollar exchange rate fluctuated approximately 1.1% during the same period[281].

Financial Performance - GigaMedia reported full year revenues of $5.5 million for 2021, a decrease of 20.1% from $6.9 million in 2020[7] - The gross profit for 2021 was $2.9 million, down 25.8% from $3.9 million in the previous year[7] - The operating loss for 2021 increased to $4.0 million, compared to a loss of $2.2 million in 2020[8] - The net loss attributable to GigaMedia for 2021 was $3.4 million, up from $1.3 million in the prior year, resulting in a loss per share of $0.31[8] - Fourth quarter revenues decreased by 19.6% quarter-on-quarter and 11.4% year-over-year, totaling $1.3 million[12] - The net loss for the fourth quarter of 2021 was $1.0 million, an increase from a net loss of $0.7 million in the previous quarter[12] - Digital entertainment service revenues for the three months ended 09/30/2021 were $1,564,208, a decrease of 19.4% compared to $1,917,636 for the same period in 2020[23] - Net loss attributable to shareholders for the twelve months ended 12/31/2021 was $3,431,034, compared to a net loss of $1,293,405 for the twelve months ended 12/31/2020[23] - EBITDA for the twelve months ended 12/31/2021 was $(3,702,385), significantly higher than $(1,898,712) for the twelve months ended 12/31/2020[26] Cash and Assets - Cash, cash equivalents, and restricted cash at the end of 2021 amounted to $41.8 million, down 9.2% from $46.0 million in 2020[10] - Total current assets decreased to $42,582,517 as of 12/31/2021 from $46,525,263 as of 12/31/2020, reflecting a decline of 8.5%[24] - Cash and cash equivalents decreased to $41,455,445 as of 12/31/2021 from $45,702,352 as of 12/31/2020, a decline of 9.8%[24] - GigaMedia's net asset value was approximately $4.58 per share as of December 31, 2021[5] - Total equity decreased to $50,583,150 as of 12/31/2021 from $54,096,863 as of 12/31/2020, a decline of 6.9%[24] Liabilities and Expenses - Total liabilities increased to $4,594,599 as of 12/31/2021 from $2,926,311 as of 12/31/2020, representing an increase of 57.1%[24] - Operating expenses for the three months ended 09/30/2021 totaled $1,718,935, an increase of 16.5% compared to $1,424,778 for the same period in 2020[23] - Selling and marketing expenses for the three months ended 09/30/2021 were $495,573, an increase of 6.4% compared to $466,093 for the same period in 2020[23] Strategic Plans - The company plans to improve in-house offerings and maintain relationships with licensors to support future growth[15] - GigaMedia is evaluating strategic investment opportunities to expand its business and enhance shareholder value[15]

Revenue and Profitability - Operating revenues in 2020 increased by 3.5% to US$6.875 million from US$6.645 million in 2019, despite a decline in mobile game revenues[191] - Gross profit for 2020 was US$3.919 million, with a gross profit margin of 57.0%, up from 53.9% in 2019[192] - The company experienced a loss from operations of US$2.152 million in 2020, an improvement from a loss of US$3.015 million in 2019[193] - Revenues from a specific PC-based sports game increased by 126.8% to US$2.7 million in 2020, driven by revitalization efforts[191] Operating Expenses - Total operating expenses decreased by 8.0% to US$6.071 million in 2020, following a 20.9% decrease in 2019[193] - Product development and engineering expenses in 2020 were US$1.327 million, reflecting an 11.9% increase from US$1.186 million in 2019[193] - Selling and marketing expenses decreased by 18.9% to US$1.618 million in 2020 from US$1.995 million in 2019, due to enhanced marketing efficiency[195] - General and administrative expenses remained stable at US$3.121 million in 2020, comparable to 2019[195] Cash Flow and Investments - The net cash used in operating activities in 2020 was approximately US$2.1 million, with cash collected from customers amounting to US$6.5 million[203] - The net cash used in investing activities in 2020 was US$10.1 million, primarily for the purchase of a convertible note of Aeolus[204] - The company maintained cash, cash equivalents, and restricted cash of US$46.0 million at the end of 2020, down from US$58.3 million in 2019[203] - The company has zero bank borrowing as of December 31, 2020, and has established strong relationships with financial institutions for potential credit lines[200] Research and Development - The company invested US$1.3 million in developing its own offerings in 2020, continuing a trend of increasing investment in product development[189] - The company incurred US$1.3 million in research and development activities in 2020, up from US$1.2 million in 2019[209] Future Plans and Strategy - The company is transitioning its game portfolio from PC-based formats to browser/mobile games to capitalize on growth trends in the digital entertainment industry[211] - The company plans to adjust capital expenditures based on cash flow from operations and market conditions for 2021[206] Non-Operating Income - In 2020, the company recognized non-operating income of US$0.9 million, a decrease of 36.7% from US$1.4 million in 2019, primarily due to a drop in interest income to US$613 thousand from US$1.5 million[198] Capital Expenditures - The gross capital expenditures for 2020 were US$32 thousand, primarily for software and computer hardware equipment[206] - The company has a legal reserve of approximately US$1.5 million as of December 31 for the years 2018, 2019, and 2020[207]

Financial Performance - GigaMedia reported full year revenues of $6.9 million for 2020, a 3.5% increase from $6.6 million in 2019[4] - Gross profit for 2020 was $3.9 million, reflecting a 9.4% increase from $3.6 million in 2019, with a gross margin rate rising to 57.0%[3] - The operating loss for 2020 was reduced to $2.2 million, down 28.6% from a loss of $3.0 million in 2019[6] - The net loss for 2020 narrowed to $1.3 million, a 22.0% improvement from a net loss of $1.7 million in the prior year[9] - EBITDA for the twelve months ended 12/31/2020 was $(1,898,712), an improvement from $(3,034,878) for the previous year[27] - Net loss attributable to shareholders for the twelve months ended 12/31/2020 was $1,293,405, compared to a net loss of $1,658,990 for the previous year, showing an improvement of 22.1%[24] Quarterly Performance - In Q4 2020, consolidated revenues decreased by 30.1% quarter-on-quarter to $1.4 million, and by 5.7% year-over-year[12] - The Q4 2020 loss from operations was $0.6 million, an increase from a loss of $0.4 million in Q3 2020[12] - Digital entertainment service revenues for the three months ended 09/30/2020 were $2,028,138, a decrease of 30.1% compared to $2,028,138 for the previous quarter[24] - Operating expenses for the three months ended 09/30/2020 totaled $1,553,749, an increase of 0.1% compared to $1,553,749 for the same period last year[24] Cash and Assets - Cash, cash equivalents, and restricted cash at the end of 2020 amounted to $46.0 million, a decrease of 21.1% from $58.3 million in 2019[8] - Cash and cash equivalents as of 12/31/2020 were $45,702,352, a decrease of 20.8% from $57,742,696 as of 12/31/2019[25] - Total assets decreased to $57,023,174 as of 12/31/2020, down from $59,222,216 as of 12/31/2019, reflecting a decline of 3.7%[25] - Total liabilities decreased to $2,926,311 as of 12/31/2020, down from $3,677,594 as of 12/31/2019, indicating a reduction of 20.4%[25] Strategic Initiatives - GigaMedia executed a purchase agreement to acquire a $10 million convertible promissory note from Aeolus Robotics, indicating a strategic investment in AI-enabled service robots[3] - The company aims to enhance productivity and customer relationships while exploring mergers and acquisitions for growth acceleration[15] Shareholder Information - The net asset value was approximately $4.89 per share as of the end of 2020[6] - Weighted average shares outstanding remained constant at 11,052,235 for the periods reported[24] Interest Income - Interest income for the twelve months ended 12/31/2020 was $613,016, down from $1,483,375 for the previous year, a decrease of 58.7%[27]