FingerMotion(FNGR) - 2025 Q3 - Quarterly Report

Revenue Performance - Revenue for the three months ended November 30, 2024, was $8,534,079, representing a 39$6,140,146 in the same period of 2023[11]. - Revenue for the nine months ended November 30, 2024, was $25,366,825, a decrease of 8$27,588,403 for the same period in 2023[11]. - For the nine months ended November 30, 2024, the company reported revenue of $25,366,825, a decrease from$27,588,403 for the same period in 2023, representing a decline of approximately 8.9%[61]. - Revenue from Telecommunication Products & Services was $17,125,936 for the nine months ended November 30, 2024, down from$27,332,154 in 2023, representing a decline of approximately 37%[62]. - The SMS & MMS Business generated $8,212,021 in revenue, significantly down from$24,213 in the previous year[62]. - The VIE subsidiary reported revenue of $20,991,002 for the nine months ended November 30, 2024, significantly up from$7,573,286 for the same period in 2023, representing an increase of approximately 177.5%[36]. - For the nine months ended November 30, 2024, revenue from JiuGe Technology was $4,375,824, a decrease of 77$18,952,973 for the same period in 2023[35]. Profitability and Losses - Gross profit for the three months ended November 30, 2024, was $443,570, down 30$637,995 in the same period of 2023[11]. - Net loss attributable to the Company's shareholders for the three months ended November 30, 2024, was $1,660,801, compared to a loss of$1,944,343 in the same period of 2023[11]. - The company reported a comprehensive loss of $1,935,286 for the three months ended November 30, 2024, compared to a loss of$1,692,409 in the same period of 2023[11]. - The net loss for the nine months ended November 30, 2024, was $5,009,095, compared to a net loss of$3,344,717 for the same period in 2023, indicating a significant increase in losses[14]. - The company's net loss for the nine months ended November 30, 2024, was $5,009,095, compared to a net loss of$3,344,717 for the same period in 2023, indicating an increase in losses of approximately 49.7%[59]. - The total comprehensive income for the period included a loss of $(1,944,343), highlighting the ongoing financial difficulties faced by the company[14]. Assets and Liabilities - Total current assets increased to$31,745,513 as of November 30, 2024, from $18,724,918 as of February 29, 2024[10]. - Total liabilities rose to$22,358,838 as of November 30, 2024, compared to $6,753,915 as of February 29, 2024[10]. - Accounts receivable saw a substantial increase of$17,296,795, compared to a decrease of $5,072,577 in the previous year, reflecting a worsening cash flow situation[14]. - The accumulated deficit increased to$(28,035,209) as of November 2023, reflecting ongoing financial challenges[13]. - The company had an accumulated deficit of $33,453,767 as of November 30, 2024, compared to$28,448,833 as of February 29, 2024, indicating an increase in the deficit of approximately 17.6%[59]. - Total liabilities of the VIE subsidiary as of November 30, 2024, were $26,019,060, up from$9,181,719 as of February 29, 2024, representing a significant increase of approximately 183.5%[33]. Cash Flow and Financing - The company reported a net cash used in operating activities of $4,586,866 for the nine months ended November 30, 2024, an improvement from$6,953,025 in the same period of 2023[14]. - Cash at the end of the period was $164,600, a significant decrease from$1,934,565 at the end of November 30, 2023[14]. - The company recorded a net cash provided by financing activities of $3,239,306 for the nine months ended November 30, 2024, contrasting with a net cash used of$(295,333) in the prior year[14]. - The company issued common stock for cash totaling $1,642,500 during the nine months ended November 30, 2024, compared to$840,000 in the same period of 2023[14]. - The Company needs to secure additional financing to fund operations and achieve profitability, with no assurance that it can obtain such financing on acceptable terms[60]. Stock and Equity - The number of common shares outstanding increased to 53,807,850 as of November 30, 2024, from 52,545,350 as of February 29, 2024[10]. - The weighted average number of common shares outstanding was 52,898,259 for basic and diluted calculations for the nine months ended November 30, 2024, compared to 52,044,125 for the same period in 2023[99]. - The total number of outstanding stock options as of November 30, 2024, remained at 6,039,100, with an exercise price of $4.18[98]. - The balance of common stock increased to 53,807,850 shares by November 2024, up from 52,545,350 shares in November 2023, indicating an increase of approximately 2.4$1.50 per share for gross proceeds of $1,642,500 on October 11, 2024[83]. Operational Expenses - The company incurred research and development expenses of$146,735 for the three months ended November 30, 2024, down from $176,119 in the same period of 2023[11]. - Share-based compensation expenses amounted to$988,639 for the nine months ended November 30, 2024, up from $927,372 in the prior year[14]. - The total operating expenses for JiuGe Technology for the nine months ended November 30, 2024, were$1,925,891, slightly down from $1,952,859 in 2023[35]. Other Financial Metrics - The effective income tax rate for the Company was 0.0$0.09 for both basic and diluted calculations, compared to $0.06 for the same period in 2023[99]. - The deferred tax asset from operating losses carry-forwards increased to$2,893,532 as of November 30, 2024, from $939,380 as of February 29, 2024[106].