Agape ATP (ATPC) - 2024 Q3 - Quarterly Report

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