Ryvyl (RVYL) - 2024 Q4 - Annual Report

Revenue Performance - Total revenue for the year ended December 31, 2024, decreased by $9.9 million, or 15$30.8 million, or 62.9%, while International segment revenue increased by $20.9 million, or 123.5$6.6 million, or 16.4%, with North America segment costs down by $19.0 million, or 63.8$12.4 million, or 119.0%[189]. - Operating expenses for 2024 increased by $5.3 million, or 13.9$1.8 million increase in payroll and payroll taxes, and a $6.7 million impairment of goodwill[190][193]. - Impairment of intangible assets increased by$3.0 million, or 100%, as the Company wrote off 100% of those assets in North America during 2024[193]. Net Loss and Cash Flow - Net loss for the year ended December 31, 2024, was $26.8 million, a decrease of$26.3 million, or 49.5%, compared to a net loss of $53.1 million in 2023[187]. - Net cash provided by operating activities for 2024 was$21.2 million, down from $33.2 million in 2023[196]. - For the year ended December 31, 2024, net cash provided by operating activities was$21.2 million, a decrease from $33.2 million in 2023, primarily due to a net loss of$26.8 million[197][198]. Liquidity and Capital Management - The Company's consolidated working capital at December 31, 2024, was negative $8.2 million, including cash of$2.6 million and restricted cash of $89.4 million[191]. - Management plans to address liquidity shortfalls through accelerated business development, cost control measures, and raising capital through various means, including private and public equity offerings[194][195]. - Management plans to address liquidity shortfall in North America by repatriating approximately$17.6 million from European subsidiaries and exploring capital raising through equity offerings and debt financings[207][212]. - Management's liquidity plan includes cost control measures and the sale of noncore assets to manage spending effectively[212]. Investment Activities - Cash used in investing activities for 2024 was $1.8 million, compared to a net cash inflow of$2.3 million in 2023 from the sale of a building[199]. Product Transition and Development - The company transitioned its QuickCard product to app-based processing in February 2024, but later determined it may not be viable for certain high-risk business verticals[205][206]. - A new licensing product for the payments processing platform was introduced in Q3 2024, with expected revenue realization not until late 2025[206]. Other Comprehensive Loss - The company recorded an other comprehensive loss of $1.7 million in 2024 due to foreign currency translation adjustments, compared to a loss of$0.04 million in 2023[210]. Financing Activities - Net cash used in financing activities was immaterial in 2024, compared to $3.0 million in 2023 due to convertible note repayments[200]. Cash Due from Gateways - Cash due from gateways increased by$12.7 million in 2024, reflecting the company's reliance on payment processing services[197][202].