Greenpro Capital(GRNQ) - 2019 Q2 - Quarterly Report

Revenue Growth - Total revenue for the three months ended June 30, 2019, was $1,701,714, an increase of $893,611 (110.6%) compared to $808,103 for the same period in 2018, primarily due to increased revenue from business services[89] - Service revenue for the three months ended June 30, 2019, was $1,678,783, up from $615,643 in 2018, reflecting a significant increase in business consulting and advisory services[90] - Total revenue for the six months ended June 30, 2019, was $2,163,762, an increase of $615,087 (39.7%) from $1,548,675 in 2018, driven by growth in business services and client base expansion[103] - Service revenue for the six months ended June 30, 2019, was $2,111,842, up from $1,314,771 in 2018, reflecting a focus on high-end services and client integration post-acquisitions[104] Operating Costs and Expenses - Total operating costs and expenses for the three months ended June 30, 2019, were $1,835,740, compared to $1,159,543 in 2018, representing an increase of $676,197 (58.3%) due to higher costs associated with service revenue and general administrative expenses[94] - General and administrative expenses for the three months ended June 30, 2019, were $1,216,441, an increase of $370,848 (43.8%) from $845,593 in 2018, driven by salary, consulting fees, and office expansion costs[98] - General and administrative expenses for the six months ended June 30, 2019, were $2,186,342, an increase of $546,772 (33.4%) from $1,639,570 in 2018, due to ongoing business integration and expansion efforts[111] Net Loss - The net loss for the three months ended June 30, 2019, was $65,228, a decrease of $294,744 (81.9%) compared to a net loss of $359,972 in 2018, attributed to increased revenue from business services[101] - The net loss for the six months ended June 30, 2019, was $627,117, an increase of $253,448 (67.9%) compared to a net loss of $373,669 in 2018, primarily due to rising general and administrative expenses[114] Cash Flow and Financial Position - As of June 30, 2019, the company's cash balance decreased to $1,142,066 from $2,172,048 as of December 31, 2018[132] - The company incurred a net loss of $627,117 and used cash in operations of $999,305 for the six months ended June 30, 2019, compared to $70,229 for the same period in 2018[133] - Net cash used in investing activities was $63,837 for the six months ended June 30, 2019, down from $440,937 in 2018[136] - Net cash provided by financing activities was $31,639 for the six months ended June 30, 2019, significantly lower than $2,256,666 in 2018[137] - The cash provided by financing activities in 2019 was mainly from advances from related parties amounting to $104,701[137] - The company’s ability to continue as a going concern is dependent on improving profitability and financial support from shareholders[134] - The company used cash in operations primarily due to an increase in net accounts receivable of $34,539 and a decrease in accounts payable and accrued liabilities of $160,606[135] Accounting Policies - The company follows ASC 606 for revenue recognition, which requires a five-step model for recognizing revenue from contracts[124] - The company conducts annual impairment evaluations of long-lived assets in the fourth quarter, with potential adjustments if impairment indicators arise[126] - Goodwill is tested for impairment annually, with the last testing date being December 31 of each fiscal year[128]