Society Pass rporated(US:SOPA)2024-08-19 20:06Revenue 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].