AGBA (US:AGBA)2024-11-14 21:05Financial Performance - Total revenues for the three months ended September 30, 2024, were $5,440,000, a decrease of $7,767,000 or 58.81% compared to $13,207,000 in 2023[278]. - Total revenues for the three months ended September 30, 2024, decreased by US$23.6 million, or 56.74%, compared to the same period in 2023, totaling US$18.0 million[300]. - Total revenue for the nine months ended September 30, 2024, was approximately $18.1 million, a decline of 56.6% from $41.7 million in the same period in 2023[342]. - The Distribution Business contributed 86.42% of total revenue in Q3 2024, with commissions decreasing by $7.2 million or 60.42% from $11.9 million in 2023 to $4.7 million in 2024[279]. - The Platform Business contributed 13.58% of total revenue for the three months ended September 30, 2024, with total revenue of $739,000, a decrease of $592,000 or 44.48% from $1,331,000 in 2023[281]. - The Distribution Business contributed 84.43% of total revenue for the nine months ended September 30, 2024, with a significant revenue drop of US$22.4 million, or 59.51%, from US$37.6 million in 2023 to US$15.2 million in 2024[301]. Expenses and Losses - Total operating expenses for the three months ended September 30, 2024, decreased by US$34.2 million, or 43.82%, totaling US$43.8 million[299]. - Total operating expenses decreased by $8,927,000 or 36.36% from $24,550,000 in 2023 to $15,623,000 in 2024[283]. - Commission expense for the Distribution Business decreased by $6.8 million or 78.55% from $8.6 million in 2023 to $1.8 million in 2024[284]. - Net loss for the three months ended September 30, 2024, decreased by US$3.5 million, or 27.10%, totaling US$28.8 million, primarily due to a decrease in operating expenses of US$8.9 million[298]. - Net loss decreased by US$6.7 million, or 18.92%, for the nine months ended September 30, 2024, compared to the same period in 2023[320]. - Loss from operations decreased by US$10.5 million, or 29.01%, for the nine months ended September 30, 2024, compared to the same period in 2023[314]. Cash Flow and Capital Requirements - As of September 30, 2024, the cash balance was US$5.1 million, which is insufficient to meet planned obligations for the next 12 months[321]. - Future capital requirements will depend on revenue growth, spending on sales and marketing, and overall economic conditions[327]. - The company expects operating losses to continue into the foreseeable future as it invests in growing its businesses[326]. - For the nine months ended September 30, 2024, net cash used in operating activities was $20.7 million, a decrease from $33.4 million for the same period in 2023[332]. - Net cash provided by financing activities for the nine months ended September 30, 2024, was $18.3 million, primarily due to advances from the holding company and proceeds from convertible promissory notes[337]. - The company intends to raise additional capital through various debt and equity offerings to support its operations and growth strategy[344]. Business Operations and Strategy - The Company aims to transform JFA into the best medical care institution in Asia by 2025, focusing on technology and data analytics to improve healthcare services[276]. - The healthcare network operated by JFA includes over 700 healthcare service providers and records over 380,000 outpatient and inpatient visits annually[274]. - The Company is focused on leveraging technology to create a "Smart Health" ecosystem, enhancing patient-care management and reducing operating costs[275]. - The Company plans to expand its distribution footprint in Mainland China and expects sales volumes to return to pre-pandemic levels[262]. Stock and Shareholder Information - The Merger Transaction was completed on October 15, 2024, resulting in the issuance of 107,674,877 shares of common stock and 11,801,804 shares of Series A-1 preferred stock[245]. - The Company executed a 1.9365-to-1 forward stock split on October 1, 2024, increasing the total number of authorized ordinary shares from 1.5 billion to 2.9 billion[248]. - Nasdaq granted the company an additional 180 days to regain compliance, which was achieved on May 3, 2024, with the stock price exceeding $1.00 per share for 10 consecutive trading days[346]. Investments and Financial Assets - The Fintech Business includes investments in Tandem Money Limited valued at $17.75 million and CurrencyFair Limited valued at $5.89 million as of September 30, 2024[269]. - The change in fair value of warrant liabilities resulted in a recognition of US$0.6 million for the three months ended September 30, 2024[297]. - Investment loss decreased by US$0.8 million, or 100.00%, for the three months ended September 30, 2024, mainly due to a decrease in unrealized loss in non-marketable equity securities[296]. Advisor and Product Information - As of September 30, 2024, the Company had approximately 562 financial advisors at its "Focus" brand, organized into 10 sales teams[255]. - The Platform Business offers over 1,800 financial products, including 1,183 insurance products from 80 providers and 1,141 products from 53 asset management fund houses[267].