Treasure (TGL) - 2025 Q2 - Quarterly Report

Financial Performance - Revenues for the three months ended December 31, 2024, were $301.9 million, a significant increase from$6.7 million in the same period of 2023[16]. - Gross profit for the six months ended December 31, 2024, was $396.1 million, compared to$508.2 million for the same period in 2023[16]. - Net loss for the three months ended December 31, 2024, was $232.3 million, compared to a net loss of$1.2 billion in the same period of 2023[16]. - Net loss for the six months ended December 31, 2024, was $1,183,039 compared to a loss of$3,331,226 for the same period in 2023, representing a 64.5% improvement[20]. - The company reported a gross profit margin of approximately 74.2% for the three months ended December 31, 2024[16]. - The company experienced an unrealized holding gain on marketable securities of $460.2 million for the three months ended December 31, 2024[16]. - The Company reported a recurring loss from operations of approximately$1.3 million for the six months ended December 31, 2024, and an accumulated deficit of approximately $39.0 million as of the same date[30]. - The Company incurred a loss before income tax of$222,892 for the three months ended December 31, 2024, compared to a loss of $1,193,508 for the same period in 2023[187]. Assets and Equity - Total assets increased to$19.1 billion as of December 31, 2024, compared to $4.3 billion as of June 30, 2024[14]. - Total stockholders' equity reached$18.4 billion as of December 31, 2024, up from $3.4 billion as of June 30, 2024[14]. - Total stockholders' equity as of December 31, 2024, was$18,402,141, an increase from $3,686,710 as of December 31, 2023[18]. - Cash and cash equivalents increased to$258.6 million as of December 31, 2024, from $200.0 million as of June 30, 2024[13]. - Total intangible assets, net as of December 31, 2024, were$14,239,294, a significant increase from $3,130,936 as of June 30, 2024, reflecting a growth of approximately 353$1,582,518, a decrease from $3,089,366 in the prior year[20]. - Research and development expenses for the six months ended December 31, 2024, totaled$80.3 million, down from $220.6 million in the same period of 2023[16]. - Research and development expenses for the three months ended December 31, 2024, were$33,136, down from $138,236 in the same period of 2023[85]. - Advertising costs for the three months ended December 31, 2024, were$29,167, significantly lower than $393,306 in the same period of 2023[83][84]. - The company incurred stock-based compensation expenses of$140,000 for the six months ended December 31, 2024[20]. - The Company recognized $70,000 and$140,000 in stock-based compensation expense for the three and six months ended December 31, 2024, respectively[186]. Revenue Recognition - The company recognized revenue from product sales on a gross basis, as it is primarily responsible for fulfilling the promise to provide specified goods[70]. - The company adopted ASU 2014-09 for revenue recognition, which requires identifying performance obligations and determining when revenue should be recognized[67]. - E-voucher revenue for the three months ended December 31, 2024, was $13,510, compared to$6,031,180 for the same period in 2023, indicating a decline[80]. - Health care products, computer products, and food and beverage products revenue for the three months ended December 31, 2024, was $244,903, down from$421,935 in 2023[80]. - Member subscription revenue for the three months ended December 31, 2024, was $5,161, a decrease from$148,205 in the same period of 2023[80]. Stock and Financing Activities - The company raised $2,457,390 from the issuance of common stock in a market offering during the six months ended December 31, 2024[20]. - The Company issued 15,440,299 shares of common stock for software development, valued at$10,800,000[20]. - The Company issued 3,566,668 shares of common stock to investors for an aggregate amount of $1,177,000 at a negotiated purchase price of$0.33 per share[35]. - The Company received aggregated net proceeds of approximately $3.5 million from the November 2023 Offering, which included 371,628 shares of common stock and 14,000,000 pre-funded warrants[31]. - The Company executed a 1-for-70 reverse stock split on February 27, 2024, affecting all shares and per share amounts retroactively[150]. Risks and Concerns - The Company has significant doubt about its ability to continue as a going concern due to recurring losses and insufficient funds to meet working capital requirements[36]. - The Company has cumulative net operating losses of$9,679,252 in the United States, which can offset future taxable income[188]. - The Company has cumulative net operating losses in Malaysia amounted to $22,190,004, which can be carried forward for up to ten years to offset future taxable income[191]. - The company did not incur any interest and penalties related to uncertain tax positions for the six months ended December 31, 2024[193]. Customer and Vendor Concentration - For the three months ended December 31, 2024, one customer accounted for approximately 74.9% of total revenues, a significant increase from the previous year where no customer exceeded 10%[194]. - For the six months ended December 31, 2024, one customer represented about 44.4% of total revenues, compared to no customer exceeding 10% in the same period of the previous year[195]. - Two vendors accounted for approximately 69.5% and 25.5% of total purchases for the three months ended December 31, 2024, indicating a concentration in supplier relationships[196]. - As of December 31, 2024, three vendors accounted for approximately 46.7%, 20.9%, and 15.1% of total accounts payable, highlighting vendor concentration risks[198].