Society Pass rporated(US:SOPA)2024-11-15 11:19Revenue Performance - Revenue for the three months ended September 30, 2024, was $1,675,894, a decrease of 26.1% from $2,269,066 in the same period of 2023[308]. - Revenue for the nine months ended September 30, 2024, was $5,233,483, down 19.5% from $6,498,878 in the same period of 2023[308]. - Revenue from the Lifestyle sector for the three months ended September 30, 2024, was $4,931, a significant decline from $87,201 for the same period in 2023, representing a decrease of approximately 94.4%[360]. - For the nine months ended September 30, 2024, revenue in the Lifestyle sector was $29,360, down from $456,972 in the same period in 2023, indicating a decrease of approximately 93.6%[360]. - Revenue from grocery and food delivery services was $0 for the three months ended September 30, 2024, compared to $54,762 in 2023, marking a 100% decrease[368]. - For the nine months ended September 30, 2024, grocery and food delivery revenue was $0, down from $88,847 in 2023, also a 100% decline[368]. - Telecommunications revenue for the three months ended September 30, 2024, was $106, a decrease of 96.4% from $2,977 in 2023[369]. - For the nine months ended September 30, 2024, telecommunications revenue was $4,849, down 79.5% from $23,648 in 2023[370]. - Digital marketing revenue for the three months ended September 30, 2024, was $1,461,480, compared to $1,784,695 in 2023, reflecting an 18.1% decrease[379]. - For the nine months ended September 30, 2024, digital marketing revenue was $4,542,073, slightly down from $4,579,429 in 2023, a decrease of 0.8%[379]. Operating Expenses and Losses - Gross income for the three months ended September 30, 2024, was $365,646, compared to $562,564 in the same period of 2023, reflecting a decrease of 35.0%[308]. - Total operating expenses for the three months ended September 30, 2024, were $1,540,260, a significant reduction from $4,705,069 in the same period of 2023[308]. - Net loss for the three months ended September 30, 2024, was $1,380,578, compared to a net loss of $3,918,046 in the same period of 2023, indicating an improvement[308]. - The net loss for Q3 2024 was $1,380,578, a reduction from $3,918,046 in Q3 2023, primarily due to decreased G&A expenses[318]. - For the three months ended September 30, 2024, the net loss attributable to Society Pass Incorporated was $1,377,885, compared to a net loss of $3,861,929 for the same period in 2023, indicating an improvement of approximately 64.3%[419]. - The net loss per share for the nine months ended September 30, 2024, was $2.25, a significant improvement from $6.70 for the same period in 2023[419]. Cash and Financing Activities - As of September 30, 2024, cash and cash equivalents totaled $4,220,371, an increase from $3,628,670 at the end of 2023[319][320]. - Net cash used in operating activities for the nine months ended September 30, 2024, was $1,178,148, significantly lower than $9,817,965 for the same period in 2023[324][325]. - Net cash provided by financing activities for the nine months ended September 30, 2024, was $1,786,943, compared to a net cash outflow of $650,525 in 2023[329]. - The company expects to continue relying on cash generated through financing for operations and future acquisitions[323]. Acquisitions and Market Operations - The Nusatrip acquisition has onboarded over 1.2 million registered users and connected with over 80 million unique visitors[300]. - The company has made several acquisitions to expand its e-commerce ecosystem, including online grocery and food delivery platforms in the Philippines and Vietnam[288][289]. - The acquisition of NusaTrip Group expanded the Company's reach into the Southeast Asian travel industry, with over 1.2 million registered users and connections to over 80 million unique visitors[358]. - The company scaled back operations in the food and beverage delivery market in 2024[293]. - The company’s telecommunications platform, Gorilla, ceased local mobile data service operations to refocus on overseas internet data[297]. Cost Management - Cost of revenue decreased to $1,310,248 in Q3 2024 from $1,706,502 in Q3 2023, and for the nine months, it decreased from $4,672,918 to $3,910,883[311]. - Sales and marketing expenses decreased significantly to $40,263 in Q3 2024 from $236,874 in Q3 2023, reflecting a strategic redesign[314]. - General and administrative expenses dropped to $1,486,362 in Q3 2024 from $4,455,546 in Q3 2023, attributed to improved cost control[316]. - Advertising expense for the nine months ended September 30, 2024, was $311,096, compared to $466,252 for the same period in 2023, reflecting a decrease of approximately 33.3%[401]. Assets and Liabilities - As of September 30, 2024, the right of use asset recorded by the company was $917,836, down from $1,407,956 as of December 31, 2023, indicating a decrease of approximately 34.7%[426]. - The Company reported no allowance for doubtful accounts as of September 30, 2024, indicating effective credit management and collection practices[343]. - Inventories decreased to $294,487 as of September 30, 2024, from $431,483 as of December 31, 2023, reflecting a reduction of approximately 31.7%[344]. - Contract liabilities increased to $1,326,384 on September 30, 2024, from $1,265,753 on December 31, 2023, indicating a growth of 4.8%[393]. - The Company has uninsured bank deposits of $3,989,977 as of September 30, 2024, with a previous amount of $3,262,161 as of December 31, 2023, indicating an increase of approximately 22.3%[340]. Regulatory and Compliance - The Company follows ASC 850 for related party disclosures, which includes affiliates, management, and other parties that can significantly influence operations[429]. - The Company assesses loss contingencies related to legal proceedings and unasserted claims, accruing estimated liabilities when probable and estimable[433]. - The Company maintains disclosure controls and procedures but concluded they are not effective at the reasonable assurance level[445]. - There were no changes in the Company's internal control over financial reporting that materially affected its effectiveness during the period ended September 30, 2024[446]. - The Company does not anticipate that ongoing legal proceedings will have a material effect on its financial condition or results of operations[448]. Future Outlook and Changes - The company is evaluating the impact of ASU No. 2023-01 on its consolidated financial statements, effective for fiscal years beginning after December 15, 2023[440]. - ASU No. 2023-07, effective after December 15, 2024, aims to improve reportable segment disclosures, which the Company is currently evaluating[442]. - ASU No. 2023-09, effective after December 15, 2024, requires additional disclosures for income tax reconciliations, which the Company is assessing[443].