Financial Performance - Society Pass Incorporated (SOPA) reported quarterly earnings of $0.1 per share, exceeding the Zacks Consensus Estimate of a loss of $0.24 per share, and showing improvement from a loss of $0.73 per share a year ago, resulting in an earnings surprise of +141.67% [1] - The company posted revenues of $2.5 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 66.73%, compared to year-ago revenues of $1.71 million [2] Stock Performance - Society Pass Incorporated shares have increased approximately 36.9% since the beginning of the year, outperforming the S&P 500's gain of 9.6% [3] Future Outlook - The company's earnings outlook will be crucial for assessing future stock performance, including current consensus earnings expectations for upcoming quarters [4] - The current consensus EPS estimate for the next quarter is -$0.22 on $1.5 million in revenues, and for the current fiscal year, it is -$1.04 on $6.2 million in revenues [7] Industry Context - The Technology Services industry, to which Society Pass Incorporated belongs, is currently ranked in the top 39% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8]

PART I FINANCIAL INFORMATION [Item 1. Financial Statements (Unaudited)](index=4&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) Presents Society Pass Inc.'s unaudited condensed consolidated financial statements and notes for Q2 2025 and FY 2024 [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Presents the company's financial position, assets, liabilities, and equity for June 30, 2025, and Dec 31, 2024 | Metric | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | | :-------------------------------- | :-------------------------- | :-------------------------- | | **Assets** | | | | Total current assets | $22,584,634 | $14,475,912 | | Total non-current assets | $6,607,811 | $6,803,789 | | **TOTAL ASSETS** | **$29,192,445** | **$21,279,701** | | **Liabilities** | | | | Total current liabilities | $26,495,765 | $23,230,652 | | Total non-current liabilities | $446,776 | $461,754 | | **TOTAL LIABILITIES** | **$26,942,541** | **$23,692,406** | | **Equity (Deficit)** | | | | Total equity (deficit) | $2,249,904 | $(2,412,705) | | **TOTAL LIABILITIES AND EQUITY (DEFICIT)** | **$29,192,445** | **$21,279,701** | - Total assets increased by approximately **$7.9 million** from December 31, 2024, to June 30, 2025, primarily driven by an increase in current assets, specifically 'Deposits, prepayments and other receivables'[9](index=9&type=chunk) - The company's total equity shifted from a deficit of **$(2,412,705)** as of December 31, 2024, to a positive equity of **$2,249,904** as of June 30, 2025[10](index=10&type=chunk) [Condensed Consolidated Statements of Operations and Other Comprehensive Loss](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Other%20Comprehensive%20Loss) Details revenues, costs, expenses, and net income (loss) for Q2 and H1 2025 and 2024 periods | Metric | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :------------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Total revenue | $2,501,494 | $1,710,510 | $3,974,998 | $3,557,589 | | Total cost of revenue | $(1,088,436) | $(1,246,205) | $(2,096,313) | $(2,600,635) | | Gross income | $1,413,058 | $464,305 | $1,878,685 | $956,954 | | Loss from operations | $(152,589) | $(2,155,194) | $(2,018,539) | $(5,046,855) | | Total other income, net | $705,708 | $215,324 | $726,580 | $268,871 | | NET INCOME (LOSS) | $552,384 | $(1,943,754) | $(1,293,264) | $(4,782,978) | | NET INCOME (LOSS) ATTRIBUTABLE TO SOCIETY PASS INCORPORATED | $479,008 | $(1,938,343) | $(1,362,080) | $(4,778,268) | | Basic EPS | $0.09 | $(0.73) | $(0.30) | $(1.91) | | Diluted EPS | $0.10 | $(0.73) | $(0.30) | $(1.91) | - The company reported a net income of **$552,384** for the three months ended June 30, 2025, a significant improvement from a net loss of **$(1,943,754)** in the same period of 2024[12](index=12&type=chunk) - For the six months ended June 30, 2025, the net loss decreased to **$(1,293,264)** from **$(4,782,978)** in the prior year, driven by increased revenue and higher gross income[12](index=12&type=chunk) [Condensed Consolidated Statements of Stockholders' Equity](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity) Outlines changes in shareholders' equity (deficit) for Q2 and H1 2025 and 2024, covering stock and capital | Equity Component | Balance at Jan 1, 2025 | Balance at June 30, 2025 | Balance at Jan 1, 2024 | Balance at June 30, 2024 | | :----------------------------------- | :--------------------- | :----------------------- | :--------------------- | :----------------------- | | Common Stock (Amount) | $372 | $531 | $222 | $297 | | Additional Paid-in Capital | $108,037,513 | $114,698,365 | $105,606,538 | $107,110,405 | | Accumulated Other Comprehensive Income (Loss) | $272,917 | $(380,449) | $(242,129) | $269,715 | | Accumulated Deficit | $(110,161,683) | $(111,488,907) | $(99,272,691) | $(104,710,865) | | Total Equity (Deficit) | $(2,412,705) | $2,249,904 | $5,029,162 | $2,114,953 | - Total equity shifted from a deficit of **$(2,412,705)** at the beginning of 2025 to a positive equity of **$2,249,904** by June 30, 2025, primarily due to increases in additional paid-in capital[14](index=14&type=chunk)[15](index=15&type=chunk) - Additional paid-in capital increased by over **$6.6 million** during the first six months of 2025, reflecting new equity offerings and convertible notes[14](index=14&type=chunk)[15](index=15&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Details cash flows from operating, investing, and financing activities for H1 2025 and 2024 | Cash Flow Activity | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :----------------------------------- | :----------------------------- | :----------------------------- | | Net cash used in operating activities | $(5,804,617) | $(3,226,057) | | Net cash used in investing activities | $(4,095) | $0 | | Net cash provided by financing activities | $6,458,157 | $325,619 | | Effect on exchange rate change | $(64,619) | $64,293 | | NET CHANGE IN CASH AND CASH EQUIVALENTS | $584,826 | $(2,836,145) | | CASH AND CASH EQUIVALENT AT END OF PERIOD | $8,268,805 | $887,837 | - Net cash used in operating activities increased to **$(5,804,617)** for the six months ended June 30, 2025, from **$(3,226,057)** in the prior year[17](index=17&type=chunk) - Net cash provided by financing activities significantly increased to **$6,458,157** in 2025, primarily from convertible notes, ATM equity offerings, and private placements, compared to **$325,619** in 2024[17](index=17&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Detailed explanations and disclosures supporting financial statements, covering business, policies, and performance [NOTE－1 DESCRIPTION OF BUSINESS AND ORGANIZATION](index=11&type=section&id=NOTE%EF%BC%8D1%20DESCRIPTION%20OF%20BUSINESS%20AND%20ORGANIZATION) Society Pass Inc., established 2018, operates in SEA via subsidiaries, focusing on e-commerce, marketing, and travel - Society Pass Incorporated was incorporated in Nevada on June 22, 2018, initially as Food Society Inc., changing its name on October 3, 2018[19](index=19&type=chunk) - The company has made several acquisitions between 2022 and 2024, including New Retail Experience Incorporated, Dream Space Trading Company Limited (online grocery/food delivery), Gorilla Networks (food delivery/telecommunications), Thoughtful Media (digital marketing), Mangan PH Food Delivery Service Corp., Nusatrip International Pte Ltd. and PT Tunas Sukses Mandiri (online ticketing/reservation), PT Wahana Cerita Indonesia (digital marketing/event organizing), and Mekong Leisure Travel Company Company Limited and Vietnam International Travel and Service Joint Stock Company (travel agencies)[23](index=23&type=chunk)[280](index=280&type=chunk) - The company effected a **1-for-15 reverse stock split** on May 1, 2024, changing authorized shares to **6,333,333**[26](index=26&type=chunk) [NOTE－2 GOING CONCERN AND LIQUIDITY](index=15&type=section&id=NOTE%EF%BC%8D2%20GOING%20CONCERN%20AND%20LIQUIDITY) Addresses going concern doubts due to losses and deficits through growth, cost control, and funding - As of June 30, 2025, the Company reported a net loss of **$1,293,264**, a working capital deficit of **$3,911,131**, and an accumulated deficit of **$111,488,907**, raising substantial doubt about its ability to continue as a going concern[47](index=47&type=chunk) - Management plans to pursue business growth in digital marketing and online ticketing/reservations, maximize sales volume and margin, and continuously improve cost control across all segments[48](index=48&type=chunk) - The company monitors its capital structure and operating plans, evaluating potential funding alternatives to finance business development, general and administrative expenses, and growth strategy[49](index=49&type=chunk) [NOTE－3 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES](index=16&type=section&id=NOTE%EF%BC%8D3%20SUMMARY%20OF%20SIGNIFICANT%20ACCOUNTING%20POLICIES) Details significant accounting policies for financial statements, covering revenue, assets, liabilities, and equity - The company is an 'emerging growth company' but has opted out of the extended transition period for new or revised financial accounting standards[51](index=51&type=chunk) - Revenue is recognized following a five-step model under ASC Topic 606, with diversified streams from e-commerce, digital marketing, online ticketing, and telecommunications[60](index=60&type=chunk)[64](index=64&type=chunk) - Intangible assets are classified as indefinite-lived (not amortized, subject to impairment testing) or definite-lived (amortized over estimated useful lives of **2.5 to 5 years**)[54](index=54&type=chunk)[56](index=56&type=chunk)[58](index=58&type=chunk) [NOTE－4 REVENUE](index=31&type=section&id=NOTE%EF%BC%8D4%20REVENUE) Categorizes revenue by recognition timing and business activity, showing growth in digital marketing and ticketing | Revenue Stream | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Sales – digital marketing | $2,064,909 | $1,528,173 | $3,248,126 | $3,080,593 | | Sales – online ticketing and reservation | $431,699 | $177,033 | $719,096 | $441,607 | | Sales – online ordering | $4,719 | $3,701 | $7,379 | $24,429 | | Sales – data | $167 | $177 | $397 | $4,743 | | Software subscription sales | $0 | $1,426 | $0 | $6,217 | | **Total Revenue** | **$2,501,494** | **$1,710,510** | **$3,974,998** | **$3,557,589** | - Total revenue increased by **46.2%** for the three months ended June 30, 2025, and by **11.7%** for the six months ended June 30, 2025, compared to the respective periods in 2024[131](index=131&type=chunk) - Digital marketing and online ticketing and reservation were the primary drivers of revenue growth, while online ordering and data sales decreased[131](index=131&type=chunk) [NOTE－5 SEGMENT REPORTING](index=31&type=section&id=NOTE%EF%BC%8D5%20SEGMENT%20REPORTING) The company operates in six reportable segments, with CODM reviewing results for resource allocation and performance - The company's six reportable operating segments are: Online Grocery and Food and Groceries Deliveries, Digital marketing, Online ticketing and reservation, Telecommunications Reseller, e-Commerce, and Corporate[133](index=133&type=chunk)[137](index=137&type=chunk) | Segment Revenue (Six Months Ended June 30) | 2025 | 2024 | | :----------------------------------- | :--------- | :--------- | | Digital Marketing | $2,545,433 | $3,080,593 | | Online Ticketing and Reservation | $1,276,199 | $447,824 | | e-Commerce | $7,379 | $24,429 | | Telecommunication Reseller | $145,987 | $4,743 | | Online F&B and Groceries Deliveries | $0 | $0 | | Corporate | $0 | $0 | | **Total Revenue** | **$3,974,998** | **$3,557,589** | - Geographically, Singapore revenue significantly increased from **$84,719** in H1 2024 to **$1,152,486** in H1 2025, while US revenue decreased from **$1,869,480** to **$1,072,270** due to customer content restrictions[141](index=141&type=chunk) [NOTE－6 DEPOSIT, PREPAYMENTS AND OTHER RECEIVABLES](index=36&type=section&id=NOTE%EF%BC%8D6%20DEPOSIT,%20PREPAYMENTS%20AND%20OTHER%20RECEIVABLES) Details composition of deposits, prepayments, and other receivables, which significantly increased from Dec 2024 to June 2025 | Category | June 30, 2025 | December 31, 2024 | | :------------------------------ | :------------ | :---------------- | | Deposits | $7,102,631 | $2,370,289 | | Prepayments | $4,381,162 | $1,013,526 | | Value added tax | $138,477 | $84,301 | | Interest receivable | $0 | $5,950 | | Other receivables | $1,174,285 | $1,715,784 | | **Total** | **$12,796,555** | **$5,189,850** | - Total deposits, prepayments and other receivables increased by approximately **$7.6 million** from December 31, 2024, to June 30, 2025[142](index=142&type=chunk) - The increase was mainly driven by a substantial rise in deposits and prepayments[142](index=142&type=chunk) [NOTE－7 INVENTORIES](index=36&type=section&id=NOTE%EF%BC%8D7%20INVENTORIES) Inventories, primarily finished goods for e-commerce, decreased slightly from Dec 2024 to June 2025 | Category | June 30, 2025 | December 31, 2024 | | :--------------- | :------------ | :---------------- | | Finished goods | $127,843 | $157,734 | | **Total Inventories** | **$127,843** | **$157,734** | - Inventories decreased by **$29,891** from December 31, 2024, to June 30, 2025[143](index=143&type=chunk) - All finished goods inventories are related to the e-commerce business and held by third-party logistics providers[143](index=143&type=chunk) [NOTE－8 INTANGIBLE ASSETS](index=37&type=section&id=NOTE%EF%BC%8D8%20INTANGIBLE%20ASSETS) Intangible assets, including software and acquired intangibles, decreased slightly from Dec 2024 to June 2025 | Asset Type | June 30, 2025 | December 31, 2024 | | :-------------------------- | :------------ | :---------------- | | Software platform (at cost) | $8,000,000 | $8,000,000 | | Apps development (at cost) | $1,006,460 | $932,310 | | Computer software (at cost) | $722,835 | $712,747 | | Identifiable intangible asset (at cost) | $4,965,654 | $5,100,654 | | Less: accumulated amortization | $(9,383,772) | $(9,106,664) | | **Total Intangible Assets, net** | **$5,311,177** | **$5,504,047** | - Net intangible assets decreased by **$192,870** from December 31, 2024, to June 30, 2025[144](index=144&type=chunk) - Apps development costs increased, reflecting ongoing capitalization of IT consultancy and services for mobile apps with blockchain features[149](index=149&type=chunk) [NOTE－9 PROPERTY, PLANT AND EQUIPMENT, NET](index=38&type=section&id=NOTE%EF%BC%8D9%20PROPERTY,%20PLANT%20AND%20EQUIPMENT,%20NET) Net property, plant, and equipment decreased from Dec 2024 to June 2025, with depreciation recorded | Category | June 30, 2025 | December 31, 2024 | | :-------------------------- | :------------ | :---------------- | | Computer (at cost) | $556,096 | $526,272 | | Office equipment (at cost) | $49,243 | $54,658 | | Renovation (at cost) | $521,109 | $484,475 | | Less: accumulated depreciation | $(789,580) | $(667,588) | | **Total Property, Plant and Equipment, net** | **$347,106** | **$407,871** | - Net property, plant and equipment decreased by **$60,765** from December 31, 2024, to June 30, 2025[154](index=154&type=chunk) - Depreciation expense for the six months ended June 30, 2025, was **$92,407**, down from **$121,477** in the same period of 2024[155](index=155&type=chunk) [NOTE－10 AMOUNTS DUE TO RELATED PARTIES](index=38&type=section&id=NOTE%EF%BC%8D10%20AMOUNTS%20DUE%20TO%20RELATED%20PARTIES) Amounts due to related parties, temporary advances from officers, increased slightly and are unsecured, non-interest bearing | Category | June 30, 2025 | December 31, 2024 | | :-------------------------- | :------------ | :---------------- | | Amounts due to related parties | $12,739 | $8,568 | - Amounts due to related parties increased by **$4,171** from December 31, 2024, to June 30, 2025[156](index=156&type=chunk) - These advances are unsecured, non-interest bearing, and have no fixed terms of repayment[156](index=156&type=chunk) [NOTE－11 ACCRUED LIABILITIES AND OTHER PAYABLES](index=38&type=section&id=NOTE%EF%BC%8D11%20ACCRUED%20LIABILITIES%20AND%20OTHER%20PAYABLES) Accrued liabilities and other payables decreased significantly from Dec 2024 to June 2025, due to litigation and deposits | Category | June 30, 2025 | December 31, 2024 | | :----------------------------------- | :------------ | :---------------- | | Accrued payroll | $96,133 | $918,472 | | Accrued litigation compensation | $818,353 | $2,116,847 | | Customer deposit | $9,171,718 | $10,172,396 | | Other accruals | $2,357,729 | $1,726,252 | | **Total accrued liabilities and other payables** | **$15,492,850** | **$18,323,527** | - Total accrued liabilities and other payables decreased by approximately **$2.8 million** from December 31, 2024, to June 30, 2025[157](index=157&type=chunk) - The decrease was largely driven by a reduction in accrued litigation compensation (Narain case settled) and customer deposits[157](index=157&type=chunk) [NOTE－12 LEASES](index=39&type=section&id=NOTE%EF%BC%8D12%20LEASES) Operating leases are accounted for under ASC 842, with new arrangements in H1 2025 and ROU assets/liabilities - As of June 30, 2025, the company recorded right-of-use assets of **$809,329** and lease liabilities of **$810,618**[162](index=162&type=chunk) - Four new lease arrangements were entered into during the six months ended June 30, 2025[162](index=162&type=chunk) | Lease Metric | June 30, 2025 | | :----------------------------------- | :------------ | | Weighted average incremental borrowing rate | 4.90% | | Weighted average remaining life of lease | 2.14 years | | Total lease expense (6 months) | $254,298 | | Present value of lease liabilities | $810,618 | [NOTE－ 13 LOAN](index=40&type=section&id=NOTE%EF%BC%8D%2013%20LOAN) Company loans decreased from Dec 2024 to June 2025 due to repayments, including bank and D&O insurance financing | Loan Type | June 30, 2025 | December 31, 2024 | | :---------- | :------------ | :---------------- | | Loan – A | $10,008 | $13,210 | | Loan – B | $14,262 | $99,831 | | **Total Loan** | **$24,270** | **$113,041** | - Total loans decreased by **$88,771** from December 31, 2024, to June 30, 2025[166](index=166&type=chunk) - Loan B, for D&O insurance premium financing, had an interest expense of **$2,663** for the six months ended June 30, 2025[171](index=171&type=chunk) [NOTE－14 SHAREHOLDERS' EQUITY (DEFICIT)](index=40&type=section&id=NOTE%EF%BC%8D14%20SHAREHOLDERS'%20EQUITY%20(DEFICIT)) Details authorized and outstanding common/preferred stock, including rights, splits, IPO, and equity issuances - As of June 30, 2025, the company had **5,311,061** shares of common stock issued and outstanding, up from **3,718,030** shares on December 31, 2024[173](index=173&type=chunk) - During the six months ended June 30, 2025, the company issued **1,250,000** shares for its At-The-Market (ATM) equity offering program, valued at **$1,879,756**[183](index=183&type=chunk) - The company's subsidiaries issued **1,800,000** shares for convertible notes valued at **$2,700,000** during the six months ended June 30, 2025, which have been fully converted into common stock[184](index=184&type=chunk) [NOTE－15 PREFERRED STOCKS AND WARRANTS](index=44&type=section&id=NOTE%EF%BC%8D15%20PREFERRED%20STOCKS%20AND%20WARRANTS) Describes various preferred stock series and their characteristics, with Series A-C1 converted and Series X remaining - All Series A, B, B-1, C, and C-1 Preferred Shares were automatically converted into common stock upon the IPO Closing[177](index=177&type=chunk)[208](index=208&type=chunk)[210](index=210&type=chunk)[212](index=212&type=chunk)[214](index=214&type=chunk)[218](index=218&type=chunk) - Series X Super Voting Preferred Stock carries **10,000 votes per share** but is not entitled to dividends, liquidation preference, or conversion rights, and is classified as permanent equity[198](index=198&type=chunk)[221](index=221&type=chunk) - As of June 30, 2025, and December 31, 2024, there were **153,500** shares of Series X Super Voting Preferred Stocks issued and outstanding[223](index=223&type=chunk) [NOTE－ 16 TREASURY STOCK](index=47&type=section&id=NOTE%EF%BC%8D%2016%20TREASURY%20STOCK) Details the share repurchase program, revised to $3.371 million, with $235,177 remaining, and treasury stock activity - The Board authorized a **$2,000,000** share repurchase program on January 25, 2023, which was revised to **$3,371,000** on February 14, 2025[224](index=224&type=chunk) - As of June 30, 2025, **$235,177** of the share repurchase program was available[225](index=225&type=chunk) - **150,000** Super Voting Preferred Stocks were cancelled and held as treasury stock on October 14, 2024[224](index=224&type=chunk) [NOTE－ 17 INCOME TAXES](index=47&type=section&id=NOTE%EF%BC%8D%2017%20INCOME%20TAXES) Income tax provision for H1 2025 was $1,305, with significant NOLs in multiple jurisdictions and full valuation allowances | Tax Jurisdiction | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :--------------- | :----------------------------- | :----------------------------- | | United States | $0 | $3,102 | | Vietnam | $79 | $578 | | India | $1,162 | $1,314 | | Philippine | $64 | $0 | | **Income tax expense** | **$1,305** | **$4,994** | - The company has cumulative net operating losses (NOLs) across various jurisdictions, including **$38,451,409** in the United States and **$13,847,433** in Singapore, with full valuation allowances against deferred tax assets[229](index=229&type=chunk)[231](index=231&type=chunk) - The company has elected to account for Global Intangible Low-Taxed Income (GILTI) as a period cost if and when incurred[246](index=246&type=chunk) [NOTE－ 18 PENSION COSTS](index=50&type=section&id=NOTE%EF%BC%8D%2018%20PENSION%20COSTS) Details contributions to government-mandated defined contribution pension schemes, which decreased in H1 2025 - Contributions to government-mandated defined contribution pension schemes for eligible employees were **$103,229** for the six months ended June 30, 2025[248](index=248&type=chunk) - This represents a decrease from **$127,386** in contributions for the same period in 2024[248](index=248&type=chunk) [NOTE－ 19 RELATED PARTY TRANSACTIONS](index=50&type=section&id=NOTE%EF%BC%8D%2019%20RELATED%20PARTY%20TRANSACTIONS) Covers related party transactions, including unsecured advances from a shareholder and consistent key management salaries - Key management personnel received total salaries of **$375,000** for the six months ended June 30, 2025, consistent with the prior year[250](index=250&type=chunk) - Professional fees paid to one officer by a subsidiary decreased from **$4,682** in H1 2024 to **$3,584** in H1 2025[250](index=250&type=chunk) - Advances from a shareholder and director for working capital are unsecured, non-interest bearing, and due on demand[249](index=249&type=chunk) [NOTE－20 CONCENTRATIONS OF RISK](index=51&type=section&id=NOTE%EF%BC%8D20%20CONCENTRATIONS%20OF%20RISK) The company faces concentrations of risk from major customers/vendors, credit, exchange rate, and economic/political factors | Major Customer (Six Months Ended June 30, 2025) | Revenues | Percentage of revenues | Accounts receivable | | :---------------------------------------- | :--------- | :--------------------- | :------------------ | | Customer A | $1,072,270 | 26.98% | $148,225 | | Customer B | $515,721 | 12.97% | $0 | | Major Vendor (Six Months Ended June 30, 2025) | Purchases | Percentage of purchases | Accounts payable | | :-------------------------------------- | :---------- | :---------------------- | :--------------- | | Vendor A | $257,669 | 12.29% | $9,048 | - The company is exposed to foreign exchange risk due to revenues and costs denominated in VND, SGD, PHP, INR, IDR, MYR, THB, and CNY[258](index=258&type=chunk) [NOTE－21 COMMITMENTS AND CONTINGENCIES](index=52&type=section&id=NOTE%EF%BC%8D21%20COMMITMENTS%20AND%20CONTINGENCIES) Details three ongoing litigations in New York, including employment actions and a counterclaim, with one partial judgment bonded - The company is litigating three cases in the Supreme Court for the State of New York, New York County, two employment actions by former employees and one counterclaim by the company[262](index=262&type=chunk) - In one action (Rahul Narain), a partial summary judgment was granted against the company for **$1,082,078.91**, which the company has bonded and appealed[263](index=263&type=chunk) - Another litigation (Thomas O'Connor) involves claims for salary, expense reimbursement, and stock, with a partial summary judgment granted regarding stock shares, but the value is still contested[264](index=264&type=chunk) [NOTE－22 SUBSEQUENT EVENTS](index=54&type=section&id=NOTE%EF%BC%8D22%20SUBSEQUENT%20EVENTS) No material subsequent events were identified for disclosure up to the date the consolidated financial statements were issued - No material subsequent events were identified for disclosure up to the date the financial statements were issued[269](index=269&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=55&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management's perspective on financial condition, operations, liquidity, and capital resources, reiterating critical policies [BASIS OF PRESENTATION](index=55&type=section&id=BASIS%20OF%20PRESENTATION) Discussion should be read with unaudited condensed consolidated financial statements in 10-Q and audited 2024 10-K - The discussion should be read with the unaudited condensed consolidated financial statements in this 10-Q and the audited consolidated financial statements in the 2024 Form 10-K[271](index=271&type=chunk) [Overview](index=55&type=section&id=Overview) Society Pass Inc. builds a digital ecosystem and loyalty platform in SEA and China through acquisitions and vertical operations - Society Pass is building a next-generation digital ecosystem and loyalty platform in Southeast Asia (SEA) and China through acquisitions of e-commerce platforms and mobile applications[273](index=273&type=chunk)[274](index=274&type=chunk) - The company operates in key verticals: loyalty, lifestyle (Leflair), telecommunications (Gorilla), digital marketing (Thoughtful Media Group), and travel (Nusatrip Group)[275](index=275&type=chunk)[277](index=277&type=chunk)[278](index=278&type=chunk)[279](index=279&type=chunk)[282](index=282&type=chunk) - The loyalty platform aggregates consumer data to increase sales through cross-pollination, customer re-targeting, and cross-promotions[276](index=276&type=chunk) [Financial Condition](index=58&type=section&id=Financial%20Condition) As of June 30, 2025, the company held $8.2 million in cash and reported improved stockholders' equity of $2.4 million | Metric | June 30, 2025 | | :----------------------------------- | :------------ | | Cash and cash equivalents | $8,218,805 | | Restricted cash | $50,000 | | Accounts receivable | $1,064,164 | | Deposits, prepayments and other receivables | $12,796,555 | | Inventories | $127,843 | | Contract assets | $327,267 | | Deferred tax assets | $58,350 | | Stockholders' equity | $2,448,429 | - Stockholders' equity improved to **$2,448,429** as of June 30, 2025, from a deficit, driven by an increase in additional paid-in capital[302](index=302&type=chunk) [Results of Operations](index=58&type=section&id=Results%20of%20Operations) Significant revenue growth and reduced net loss for Q2 and H1 2025, driven by digital marketing, higher margins, and cost control | Metric | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :------------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Revenue, net | $2,501,494 | $1,710,510 | $3,974,998 | $3,557,589 | | Gross income | $1,413,058 | $464,305 | $1,878,685 | $956,954 | | Gross income margin | 56% | 27% | 47% | 27% | | General and administrative expenses | $(1,492,311) | $(2,461,968) | $(3,765,190) | $(5,707,639) | | NET INCOME (LOSS) | $552,384 | $(1,943,754) | $(1,293,264) | $(4,782,978) | - Revenue increased by **46.2%** for the three months and **11.7%** for the six months ended June 30, 2025, primarily from digital marketing and online ticketing and reservations[289](index=289&type=chunk)[290](index=290&type=chunk) - Gross income margin significantly improved to **56%** (3 months) and **47%** (6 months) in 2025, up from **27%** in 2024, due to higher margin digital marketing business[294](index=294&type=chunk) - Net income for the three months ended June 30, 2025, was **$552,384**, a substantial improvement from a net loss of **$(1,943,754)** in the prior year, driven by increased revenue, higher margins, decreased G&A expenses, and other income from waiver of long overdue refund payables[299](index=299&type=chunk) [Liquidity and Capital Resources](index=61&type=section&id=Liquidity%20and%20Capital%20Resources) Liquidity improved in H1 2025 with increased cash from financing activities, offsetting higher cash used in operations | Cash Flow Activity | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :----------------------------------- | :----------------------------- | :----------------------------- | | Net cash used in operating activities | $(5,804,617) | $(3,226,057) | | Net cash used in investing activities | $(4,095) | $0 | | Net cash provided by financing activities | $6,458,157 | $325,619 | | Net change in cash and cash equivalents | $584,826 | $(2,836,145) | | Cash and cash equivalent at end of period | $8,268,805 | $887,837 | - Net cash provided by financing activities increased significantly to **$6,458,157** in H1 2025, mainly from convertible notes (**$4,300,002**), ATM program (**$1,938,469**), and private placement (**$300,000**)[310](index=310&type=chunk) - The company believes it has sufficient liquidity for at least one year and expects to continue relying on financing from public or private offerings[303](index=303&type=chunk)[307](index=307&type=chunk) [Critical Accounting Policies and Estimate](index=62&type=section&id=Critical%20Accounting%20Policies%20and%20Estimate) Reiterates critical accounting policies and estimates, consistent with Note 3, covering revenue, business combinations, and assets - The critical accounting policies and estimates are consistent with those described in Note 3 to the Condensed Consolidated Financial Statements[312](index=312&type=chunk) - Significant estimates include allowance for doubtful accounts, incremental borrowing rate for leases, valuation and useful lives of intangible assets, impairment of long-lived assets, and revenue recognition[312](index=312&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=78&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) As a smaller reporting company, Society Pass Inc. is not required to disclose quantitative and qualitative market risk - The company is not required to provide quantitative and qualitative disclosures about market risk under Regulation S-K[393](index=393&type=chunk) [Item 4. Controls and Procedures](index=78&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls and procedures were not effective as of June 30, 2025, with no material changes - The Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were not effective at the reasonable assurance level as of June 30, 2025[394](index=394&type=chunk) - No material changes in internal control over financial reporting occurred during the period ended June 30, 2025[395](index=395&type=chunk) PART II OTHER INFORMATION [Item 1. Legal Proceedings](index=79&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various legal proceedings, with management not anticipating a material effect on financial results - Material legal proceedings are described in Note 21, 'Commitments and Contingencies,' of the financial statements[398](index=398&type=chunk) - Management does not anticipate that the ultimate liability from pending legal matters will have a material effect on the company's financial condition, results of operations, or cash flows[397](index=397&type=chunk) [Item 1A. Risk Factors](index=79&type=page&id=Item%201A.%20Risk%20Factors) No material changes to risk factors from the April 16, 2025 Form 10-K, with potential for future disclosures - No material changes to the risk factors disclosed in the Form 10-K filed on April 16, 2025, have occurred[399](index=399&type=chunk) - Additional risk factors not presently known or deemed immaterial may impair the business or results of operations[399](index=399&type=chunk) [Item 2. Unregistered sales of Equity Securities and Use of Proceeds](index=79&type=section&id=Item%202.%20Unregistered%20sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This item is not applicable to the company for the reporting period - This item is not applicable[400](index=400&type=chunk) [Item 3. Defaults Upon Senior Securities](index=79&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) This item is not applicable to the company for the reporting period - This item is not applicable[400](index=400&type=chunk) [Item 4. Mining Safety Disclosure](index=79&type=section&id=Item%204.%20Mining%20Safety%20Disclosure) This item is not applicable to the company for the reporting period - This item is not applicable[401](index=401&type=chunk) [Item 5. Other Information](index=79&type=section&id=Item%205.%20Other%20Information) No other information to report under this item for the reporting period - No other information to report[402](index=402&type=chunk) [Item 6. Exhibits](index=80&type=section&id=Item%206.%20Exhibits) Lists exhibits filed with Form 10-Q, including certifications from CEO and CFO, and Inline XBRL documents - Exhibits include certifications (31.1, 31.2, 32.1) and Inline XBRL documents (101.INS, 101.SCH, 101.CAL, 101.DEF, 101.LAB, 101.PRE, 104)[404](index=404&type=chunk) SIGNATURES The Form 10-Q is signed by the CEO and CFO of Society Pass Incorporated on August 13, 2025 - The report was signed by Raynauld Liang, Chief Executive Officer, and Yee Siong Tan, Chief Financial Officer, on August 13, 2025[407](index=407&type=chunk)

Company Overview - Society Pass Inc. is a data-driven loyalty, fintech, and e-commerce ecosystem founded in 2018, operating in fast-growing Southeast Asian markets including Vietnam, Indonesia, Philippines, Singapore, and Thailand, which collectively represent over 80% of the SEA population [3] - The company operates six interconnected verticals: loyalty, digital media, travel, telecoms, lifestyle, and food & beverage, connecting millions of registered consumers and hundreds of thousands of merchants across various product and service categories [3][5] - Society Pass went public in November 2021, trading on Nasdaq under the ticker SOPA [4] Business Model and Growth Strategy - Society Pass focuses on acquiring fast-growing e-commerce companies to expand its user base and integrate these businesses through its Society Pass fintech platform and universal loyalty points system, Society Points, which is in beta testing and expected to launch broadly in early 2023 [5] - The company has over 3.3 million registered consumers and more than 650,000 registered merchants and brands, supported by proprietary IT architecture developed over two years [5][6] - Society Pass operates several key subsidiaries, including Thoughtful Media Group, NusaTrip, VLeisure, Gorilla Global, Leflair.com, Pushkart.ph, and NextGen Retail, enhancing its service offerings across various sectors [6] Future Plans and Market Potential - In October 2023, Society Pass announced plans to spin off two of its businesses, Thoughtful Media Group Inc. and NusaTrip Inc., through IPOs in 2024, which are expected to create significant value for shareholders and act as key growth catalysts in 2025 [7] - The company is currently trading at a market capitalization of approximately $7 million, with an equivalent amount in cash, indicating that its shares and business are significantly undervalued [7] - Ascendiant Capital Markets has raised the 12-month price target for Society Pass to $15 from $14, reflecting a positive outlook based on a net present value analysis, which suggests substantial upside potential from the current share price [7]

Revenue Performance - Revenue for the three months ended March 31, 2025, was $1,473,504, a decrease of 20.2% from $1,847,079 in the same period of 2024[266] - Digital marketing segment revenue decreased from $1,552,420 in Q1 2024 to $1,183,217 in Q1 2025, reflecting increased competition[267] - Online ticketing and reservations revenue increased from $264,574 in Q1 2024 to $287,397 in Q1 2025 due to partnerships with more vendors[267] - Revenue from the Lifestyle sector for the three months ended March 31, 2025, was $2,660, a decrease from $20,728 in the same period of 2024[305] - Telecommunications revenue generated was $230 for the three months ended March 31, 2025, down from $4,566 in the same period of 2024[308] - Revenue from ancillary services, including insurance commissions and refund margins, was $287,397 for the three months ended March 31, 2025, up from $264,574 in 2024, reflecting an increase of about 8.6%[326] Net Loss and Financial Position - The net loss for the three months ended March 31, 2025, was $1,845,648, compared to a net loss of $2,839,224 in Q1 2024, indicating a reduction in losses[266] - Net loss improved to $1,845,648 in Q1 2025 from $2,839,224 in Q1 2024, primarily due to decreased G&A expenses[275] - For the three months ended March 31, 2025, the net loss attributable to Society Pass Incorporated was $1,841,088, compared to a net loss of $2,839,925 for the same period in 2024[343] - The diluted net loss per share for the three months ended March 31, 2025, was $(0.44), compared to $(1.21) for the same period in 2024[343] Customer and Revenue Concentration - Customer A accounted for 40.16% of total revenues in Q1 2025, generating $588,481[269] - Revenue for Customer A was $906.12 million, representing a 9.06% increase, while Customer B generated $278.74 million, a 5.09% increase[270] Expenses and Cost Management - Cost of revenue increased to $1,354,430 for the three months ended March 31, 2025, compared to $1,007,877 in 2024, primarily due to digital marketing expenses[271] - Gross income decreased to $465,627 in Q1 2025 from $492,649 in Q1 2024, with gross income margin improving to 32% from 27% due to higher revenue from online ticketing[272] - Sales and marketing expenses significantly reduced to $45,749 in Q1 2025 from $127,135 in Q1 2024, attributed to planned cost reductions[273] - General and administrative expenses decreased to $2,272,879 in Q1 2025 from $3,243,671 in Q1 2024, mainly due to lower professional fees and cost restructuring[274] Cash Flow and Financing Activities - Net cash used in operating activities was $4,033,502 in Q1 2025, compared to $2,361,485 in Q1 2024, reflecting a higher net loss and changes in working capital[280] - Net cash provided by financing activities was $3,439,479 in Q1 2025, resulting from the issuance of convertible notes and share issuance for ATM[285] - The company expects to continue relying on cash generated through financing for operations and future acquisitions, indicating a focus on growth strategy[279] Acquisitions and Business Expansion - The company has made several acquisitions to expand its e-commerce ecosystem, including the acquisition of Nusatrip Group, enhancing its presence in the travel sector[251] - The company acquired NusaTrip Group, expanding its reach into the SEA regional travel industry, with over 1.2 million registered users and connections to over 80 million unique visitors[304] Digital Marketing and Technology - The loyalty platform allows consumers to earn Society Points, which are used to increase sales through data aggregation and customer re-targeting[254] - The company operates a telecommunications reseller platform under the brand name "Gorilla," utilizing Web3 technology to offer mobile data services[256] - The digital marketing platform, TMG, has uploaded over 675,000 videos with over 80 billion views, enhancing the company's advertising reach[258] - The company has developed a digital marketing platform, TMG, which has uploaded over 675,000 videos with over 80 billion views, enhancing its e-commerce ecosystem[301] - The company operates a telecommunication reseller platform, "Gorilla," which allows customers to convert unused mobile data into digital assets[300] Assets and Liabilities - As of March 31, 2025, cash and cash equivalents totaled $7,142,266, with accounts receivable at $858,801 and inventories at $163,185[277] - The company's inventories amounted to $163,185 as of March 31, 2025, compared to $157,734 as of December 31, 2024[288] - The Company’s contract liabilities balance was $1,234,875 as of March 31, 2025, down from $1,426,901 on December 31, 2024, representing a decrease of approximately 13.5%[330] - Contract assets balance was $336,129 as of March 31, 2025, slightly up from $333,188 on December 31, 2024, reflecting a marginal increase of about 0.6%[328] Regulatory and Compliance - The Company adopted ASC Topic 842 for leases, impacting the recognition of operating lease right-of-use assets and liabilities[345] - The FASB issued ASU No. 2023-07, effective for annual periods beginning after December 15, 2023, which improves reportable segment disclosure requirements, with no material impact on the financial statements as evaluated by the company[359] - ASU No. 2023-09, effective for annual periods beginning after December 15, 2024, introduces standard categories for effective tax rate reconciliation and requires additional disclosures, with the company currently evaluating its impact[361] - The company maintains disclosure controls and procedures designed to provide reasonable assurance for timely reporting, although these controls are not effective at the reasonable assurance level as concluded by management[364] - There were no changes in the company's internal control over financial reporting during the period ended March 31, 2025, that materially affected its internal control[365]

Core Viewpoint - Society Pass Incorporated (SOPA) reported a quarterly loss of $0.48 per share, which was better than the Zacks Consensus Estimate of a loss of $0.61, marking an earnings surprise of 21.31% [1] - The company’s revenues for the quarter ended September 2024 were $1.68 million, missing the Zacks Consensus Estimate by 32.01% and down from $2.27 million a year ago [2] Financial Performance - The company has surpassed consensus EPS estimates two times over the last four quarters [2] - The stock has lost approximately 78.9% since the beginning of the year, contrasting with the S&P 500's gain of 24.7% [3] Future Outlook - The earnings outlook for Society Pass Incorporated is mixed, with the current consensus EPS estimate for the coming quarter at -$0.44 on revenues of $3.17 million, and -$2.84 on revenues of $9.16 million for the current fiscal year [7] - The company currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Industry Context - The Technology Services industry, to which Society Pass Incorporated belongs, is currently in the top 25% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - Another company in the same industry, Duos Technologies Group, Inc. (DUOT), is expected to report a quarterly loss of $0.25 per share, with revenues projected to be $2.8 million, reflecting an 83% increase from the year-ago quarter [9][10]

Revenue Performance - Revenue for the three months ended September 30, 2024, was $1,675,894, a decrease of 26.1% from $2,269,066 in the same period of 2023[308]. - Revenue for the nine months ended September 30, 2024, was $5,233,483, down 19.5% from $6,498,878 in the same period of 2023[308]. - Revenue from the Lifestyle sector for the three months ended September 30, 2024, was $4,931, a significant decline from $87,201 for the same period in 2023, representing a decrease of approximately 94.4%[360]. - For the nine months ended September 30, 2024, revenue in the Lifestyle sector was $29,360, down from $456,972 in the same period in 2023, indicating a decrease of approximately 93.6%[360]. - Revenue from grocery and food delivery services was $0 for the three months ended September 30, 2024, compared to $54,762 in 2023, marking a 100% decrease[368]. - For the nine months ended September 30, 2024, grocery and food delivery revenue was $0, down from $88,847 in 2023, also a 100% decline[368]. - Telecommunications revenue for the three months ended September 30, 2024, was $106, a decrease of 96.4% from $2,977 in 2023[369]. - For the nine months ended September 30, 2024, telecommunications revenue was $4,849, down 79.5% from $23,648 in 2023[370]. - Digital marketing revenue for the three months ended September 30, 2024, was $1,461,480, compared to $1,784,695 in 2023, reflecting an 18.1% decrease[379]. - For the nine months ended September 30, 2024, digital marketing revenue was $4,542,073, slightly down from $4,579,429 in 2023, a decrease of 0.8%[379]. Operating Expenses and Losses - Gross income for the three months ended September 30, 2024, was $365,646, compared to $562,564 in the same period of 2023, reflecting a decrease of 35.0%[308]. - Total operating expenses for the three months ended September 30, 2024, were $1,540,260, a significant reduction from $4,705,069 in the same period of 2023[308]. - Net loss for the three months ended September 30, 2024, was $1,380,578, compared to a net loss of $3,918,046 in the same period of 2023, indicating an improvement[308]. - The net loss for Q3 2024 was $1,380,578, a reduction from $3,918,046 in Q3 2023, primarily due to decreased G&A expenses[318]. - For the three months ended September 30, 2024, the net loss attributable to Society Pass Incorporated was $1,377,885, compared to a net loss of $3,861,929 for the same period in 2023, indicating an improvement of approximately 64.3%[419]. - The net loss per share for the nine months ended September 30, 2024, was $2.25, a significant improvement from $6.70 for the same period in 2023[419]. Cash and Financing Activities - As of September 30, 2024, cash and cash equivalents totaled $4,220,371, an increase from $3,628,670 at the end of 2023[319][320]. - Net cash used in operating activities for the nine months ended September 30, 2024, was $1,178,148, significantly lower than $9,817,965 for the same period in 2023[324][325]. - Net cash provided by financing activities for the nine months ended September 30, 2024, was $1,786,943, compared to a net cash outflow of $650,525 in 2023[329]. - The company expects to continue relying on cash generated through financing for operations and future acquisitions[323]. Acquisitions and Market Operations - The Nusatrip acquisition has onboarded over 1.2 million registered users and connected with over 80 million unique visitors[300]. - The company has made several acquisitions to expand its e-commerce ecosystem, including online grocery and food delivery platforms in the Philippines and Vietnam[288][289]. - The acquisition of NusaTrip Group expanded the Company's reach into the Southeast Asian travel industry, with over 1.2 million registered users and connections to over 80 million unique visitors[358]. - The company scaled back operations in the food and beverage delivery market in 2024[293]. - The company’s telecommunications platform, Gorilla, ceased local mobile data service operations to refocus on overseas internet data[297]. Cost Management - Cost of revenue decreased to $1,310,248 in Q3 2024 from $1,706,502 in Q3 2023, and for the nine months, it decreased from $4,672,918 to $3,910,883[311]. - Sales and marketing expenses decreased significantly to $40,263 in Q3 2024 from $236,874 in Q3 2023, reflecting a strategic redesign[314]. - General and administrative expenses dropped to $1,486,362 in Q3 2024 from $4,455,546 in Q3 2023, attributed to improved cost control[316]. - Advertising expense for the nine months ended September 30, 2024, was $311,096, compared to $466,252 for the same period in 2023, reflecting a decrease of approximately 33.3%[401]. Assets and Liabilities - As of September 30, 2024, the right of use asset recorded by the company was $917,836, down from $1,407,956 as of December 31, 2023, indicating a decrease of approximately 34.7%[426]. - The Company reported no allowance for doubtful accounts as of September 30, 2024, indicating effective credit management and collection practices[343]. - Inventories decreased to $294,487 as of September 30, 2024, from $431,483 as of December 31, 2023, reflecting a reduction of approximately 31.7%[344]. - Contract liabilities increased to $1,326,384 on September 30, 2024, from $1,265,753 on December 31, 2023, indicating a growth of 4.8%[393]. - The Company has uninsured bank deposits of $3,989,977 as of September 30, 2024, with a previous amount of $3,262,161 as of December 31, 2023, indicating an increase of approximately 22.3%[340]. Regulatory and Compliance - The Company follows ASC 850 for related party disclosures, which includes affiliates, management, and other parties that can significantly influence operations[429]. - The Company assesses loss contingencies related to legal proceedings and unasserted claims, accruing estimated liabilities when probable and estimable[433]. - The Company maintains disclosure controls and procedures but concluded they are not effective at the reasonable assurance level[445]. - There were no changes in the Company's internal control over financial reporting that materially affected its effectiveness during the period ended September 30, 2024[446]. - The Company does not anticipate that ongoing legal proceedings will have a material effect on its financial condition or results of operations[448]. Future Outlook and Changes - The company is evaluating the impact of ASU No. 2023-01 on its consolidated financial statements, effective for fiscal years beginning after December 15, 2023[440]. - ASU No. 2023-07, effective after December 15, 2024, aims to improve reportable segment disclosures, which the Company is currently evaluating[442]. - ASU No. 2023-09, effective after December 15, 2024, requires additional disclosures for income tax reconciliations, which the Company is assessing[443].

Group 1 - Society Pass Incorporated (SOPA) reported a quarterly loss of $0.73 per share, which was better than the Zacks Consensus Estimate of a loss of $0.84, and an improvement from a loss of $1.80 per share a year ago, resulting in an earnings surprise of 13.10% [1] - The company posted revenues of $1.71 million for the quarter ended June 2024, missing the Zacks Consensus Estimate by 26.57%, and a decline from year-ago revenues of $2.19 million [2] - Society Pass Incorporated shares have decreased by approximately 76.5% since the beginning of the year, contrasting with the S&P 500's gain of 16.4% [3] Group 2 - The earnings outlook for Society Pass Incorporated is mixed, with the current consensus EPS estimate for the coming quarter at -$1.05 on revenues of $2.93 million, and -$3.34 on revenues of $10.92 million for the current fiscal year [7] - The Zacks Industry Rank indicates that the Technology Services sector is currently in the top 29% of over 250 Zacks industries, suggesting that the industry outlook can significantly impact stock performance [8]

Revenue Performance - Revenue for the three months ended June 30, 2024, was $1,710,510, a decrease of 21.7% compared to $2,187,232 for the same period in 2023[249]. - Revenue for the six months ended June 30, 2024, was $3,557,589, down 16.0% from $4,229,812 in the same period of 2023[249]. - The decrease in revenue was primarily due to reduced sales from the travel vertical, attributed to platform system upgrades and increased competition[249]. - Revenue for the three months ended June 30, 2024, was $963,208, representing a 56.31% increase compared to $1,074,406 for the same period in 2023[250]. - Revenue from the Lifestyle sector for the three months ended June 30, 2024, was $3,701, a significant decrease from $57,407 in the same period of 2023[288]. - For the six months ended June 30, 2024, the Company generated $0 in revenue from telecommunications, compared to $88,847 in the same period of 2023, representing a decline of 100%[293]. - During the three months ended June 30, 2024, telecommunications revenue was $177, a decrease of 97.2% from $6,369 in the same period of 2023[295]. - For the six months ended June 30, 2024, the Company generated $3,080,593 from online ticketing and reservation services, an increase of 10.3% from $2,794,734 in the same period of 2023[301]. - The Company’s revenue from hotel technology platform software services for the six months ended June 30, 2024, was $6,217, a significant increase from $1,142 in the same period of 2023[308]. Operating Expenses and Losses - Operating expenses for the three months ended June 30, 2024, totaled $2,619,499, a decrease from $3,992,972 in the same period of 2023[249]. - The net loss for the three months ended June 30, 2024, was $1,943,754, compared to a net loss of $3,309,230 for the same period in 2023[249]. - The company has scaled back operations in the food and beverage delivery market in 2024 to refocus on its core business areas[235]. - The company incurred a net loss of $1,943,754 for the three months ended June 30, 2024, an improvement from a net loss of $3,309,230 for the same period in 2023[257]. - For the six months ended June 30, 2024, the net loss attributable to Society Pass Incorporated was $4,778,268, down from $8,610,185 in the same period of 2023, reflecting a 44.5% decrease[331]. - The net loss per share for the three months ended June 30, 2024, was $0.73, compared to $1.77 for the same period in 2023, indicating a 58.8% reduction in loss per share[329]. - The net loss per share for the six months ended June 30, 2024, was $1.91, a significant decrease from $4.67 in the same period of 2023, representing a 59.0% improvement[331]. Strategic Acquisitions and Business Expansion - The company has made several strategic acquisitions, including 100% equity interests in New Retail Experience Incorporated and Dream Space Trading Company Limited, enhancing its online grocery and food delivery services in the Philippines and Vietnam[231]. - The Nusatrip acquisition has expanded the company's presence in the Southeast Asian travel industry, with over 1.2 million registered users and connections to over 80 million unique visitors[241]. - The acquisition of NusaTrip Group expanded the Company's reach into the SEA travel industry, with over 1.2 million registered users and connections to over 80 million unique visitors[286]. Financial Position and Cash Flow - As of June 30, 2024, cash and cash equivalents totaled $833,937, with accounts receivable at $776,181[258]. - For the six months ended June 30, 2024, net cash used in operating activities was $3,226,057, a decrease from $6,886,251 for the same period in 2023[260]. - The company expects to continue relying on cash generated through financing activities to support its operations and growth strategy[259]. - As of June 30, 2024, cash and cash equivalents amounted to $833,937, a decrease from $3,628,670 as of December 31, 2023[272]. - Restricted cash was reported at $53,900 as of June 30, 2024, down from $95,312 as of December 31, 2023[273]. Cost Management - The cost of revenue for the three months ended June 30, 2024, was $1,246,205, down from $1,610,073 in 2023, indicating consistent cost management[253]. - General and administrative expenses decreased significantly to $2,461,968 for the three months ended June 30, 2024, from $3,879,049 in 2023, due to effective cost control measures[256]. - The company recorded a gross income of $956,954 for the six months ended June 30, 2024, compared to $1,263,396 for the same period in 2023, reflecting challenges in maintaining gross margins[254]. Shareholder Information - The weighted average common shares outstanding for the three months ended June 30, 2024, was 2,656,697, an increase from 1,878,102 in the same period of 2023[329]. - The weighted average common shares outstanding for the six months ended June 30, 2024, was 2,498,998, compared to 1,842,013 in the same period of 2023[331]. - The Company has issued 454,434 common stock equivalents, which were excluded from the computation of diluted weighted-average shares outstanding due to their antidilutive impact[332]. Accounting Standards and Contingencies - The Company adopted ASC Topic 842 for leases, recognizing operating lease right-of-use assets and liabilities based on the present value of lease payments[333]. - The Company follows ASC Topic 718 for share-based compensation, measuring and recognizing compensation expense for all share-based payment awards at grant-date fair value[338]. - The Company follows ASC 450 for accounting contingencies, assessing potential losses based on future events[344]. - Management believes that current contingencies will not materially affect the Company's financial position, but future changes could alter this assessment[346]. - The Company measures fair value of financial instruments according to FASB standards, prioritizing quoted market prices in active markets[350]. - The Company is evaluating the impact of ASU No. 2023-01 on its financial statements, effective after December 15, 2023[351]. - ASU No. 2023-07, effective after December 15, 2024, will enhance segment expense disclosures for all public entities[352]. - ASU No. 2023-09, effective after December 15, 2024, requires improved disclosures for income tax components and reconciliation[353]. - The Company does not expect other recently issued accounting standards to affect its financial statements[353].

Group 1: NusaTrip.com - NusaTrip.com is undergoing a technical re-platforming to enhance platform stability, improve UI/UX, and integrate with leading payment gateways in Southeast Asia, potentially increasing its market size by up to 800% [1] - The platform will offer linguistic localization for over 700 million users in Southeast Asia, aiming to become a leading travel booking platform by market share by 2026 [1][7] Group 2: Thoughtful Media Group - Thoughtful Media Group plans to launch proprietary technical products to support its Multi-Channel-Network and influencer marketing growth in Southeast Asia [2] - The in-house tech solutions will enable efficient identification and collaboration with Key Opinion Leaders, enhancing campaign effectiveness for brands [2] Group 3: Society Pass Inc. - Society Pass Inc. operates a data-driven e-commerce ecosystem across Southeast Asia, focusing on interconnected verticals such as loyalty, digital media, travel, telecommunications, and lifestyle [3][7] - The company is preparing for the IPOs of its subsidiaries, NusaTrip.com and Thoughtful Media Group, to enhance customer engagement and market reach [7][8] - CEO Raynauld Liang emphasized the commitment to becoming the preferred solutions provider for travel and marketing needs in Southeast Asia [8]

Group 1: Company Overview - Society Pass Inc. operates as a data-driven e-commerce ecosystem across Southeast Asia, including Vietnam, Indonesia, Philippines, Singapore, and Thailand, focusing on interconnected verticals such as loyalty, digital media, travel, telecommunications, and lifestyle [5] Group 2: Upcoming IPOs and Subsidiaries - Society Pass is preparing for the IPOs of its key subsidiaries, NusaTrip.com and Thoughtful Media Group, aimed at enhancing customer engagement and expanding market reach [1][4] - NusaTrip.com is a leading travel platform in Indonesia, undergoing significant upgrades to improve platform stability and user experience, potentially increasing its market size by up to 800% [2] - Thoughtful Media Group plans to launch technical products to support its Multi-Channel-Network and Influencer marketing efforts across Southeast Asia [3] Group 3: Strategic Goals and Future Plans - The company aims to position NusaTrip.com as a leading travel booking platform by market share in Southeast Asia by 2026, with linguistic localization available to over 700 million users [2] - Society Pass is focused on implementing changes that will positively impact business operations, clients, and shareholders [4]