Transaction and User Growth - As of September 30, 2024, Tranglo processed approximately 8.56 million transactions with a total processing value of $3.92 billion, representing a 5.5% increase in volume and an 18.8% increase in value compared to the same period in 2023[188]. - The number of unique users for Tranglo increased to 1,024,100 as of September 30, 2024, up from 866,800 a year earlier, while average monthly unique sending accounts rose to 358,900 from 326,500[189]. - For the nine-month period ended September 30, 2024, WalletKu served approximately 130,502 customers, distributing airtime with a total value of $9.7 million[192]. - For the nine-month period ended September 30, 2024, Tranglo processed 8.56 million remittance transactions with a total value of $3.92 billion, compared to 8.11 million transactions valued at $3.3 billion in the same period of 2023, reflecting a transaction increase of 5.5% and a value increase of 18.8%[237]. - The number of unique users increased to 1,024,100 as of September 30, 2024, up from 866,800 as of September 30, 2023, representing an increase of 18.2%[238]. - The number of average monthly unique sending accounts increased from 326,500 for the nine-month period ended September 30, 2023, to 358,900 for the same period in 2024, reflecting an increase of 9.9%[238]. Revenue and Financial Performance - For the three-month period ended September 30, 2024, Currenc's revenue decreased by 11.0% to $11.3 million compared to $12.7 million for the same period in 2023, primarily due to a 22.1% decline in global airtime revenue[219]. - For the nine-month period ended September 30, 2024, Currenc's revenue decreased by 11.3% to $35.4 million compared to $39.9 million for the same period in 2023, driven by a 22.3% decline in global airtime revenue[236]. - Currenc's global airtime revenue for the nine-month period ended September 30, 2024, declined by 22.3% to $7.3 million from $9.4 million in the same period of 2023[239]. - Currenc recorded a net loss of $11.261 million for the nine-month period ended September 30, 2024, compared to a net loss of $10.447 million for the same period in 2023[262]. - Currenc's net loss for the three-month period ended September 30, 2024, was $5.0 million, compared to a net loss of $3.8 million for the same period in 2023[218]. - The gross profit for the three-month period ended September 30, 2024, was $3.1 million, down from $4.1 million for the same period in 2023[218]. Operating Expenses and Costs - Currenc's operating expenses increased sharply from $6.5 million for the three-month period ended September 30, 2023, to $19.1 million for the same period in 2024, largely due to a $13.1 million expense related to incentive shares granted to employees[227]. - Currenc's total operating expenses for the nine-month period ended September 30, 2024, were $30.0 million, up from $18.8 million for the same period in 2023[235]. - Operating expenses for Currenc increased sharply to $30.0 million for the nine-month period ended September 30, 2024, from $18.8 million in the same period in 2023, primarily due to a $13.1 million expense related to incentive shares granted[246]. - The direct costs for remittance revenue decreased by 18.5% to $2.2 million for the three-month period ended September 30, 2024, from $2.7 million for the same period in 2023[225]. - The direct costs for remittance revenue decreased by 9.4% to $7.7 million for the nine-month period ended September 30, 2024, despite an 18.8% increase in total payment volume (TPV)[244]. Strategic Developments - The company aims to develop B2C markets in Southeast Asia and the Middle East to capture retail remittance and airtime markets, which could generate significant clientele and synergy for its businesses[206]. - The business combination on August 30, 2024, resulted in Currenc issuing 40,000,000 ordinary shares as consideration, along with a PIPE Offering that raised $1.75 million in net proceeds[197][198]. - The company continues to drive adoption of its platform for money transfer and payment processing, aiming to introduce new B2C financial services in Southeast Asia and the Middle East[207]. - As of September 30, 2024, Tranglo had over 5,000 bank partners and a remittance network covering more than 80 countries, enhancing its operational capabilities in the remittance market[188]. Cash Flow and Capital Structure - As of September 30, 2024, Currenc had cash balances of $49.1 million, a working capital deficit of $54.1 million, and a net capital deficit of $22.7 million[270]. - Currenc reported a net cash used in operating activities of $11.7 million for the nine-month period ended September 30, 2024[270]. - Net cash provided by financing activities amounted to $2.2 million in the nine-month period ended September 30, 2024, primarily from the issuance of convertible bonds[280]. - Currenc's net cash used in investing activities was $365,000 for the nine-month period ended September 30, 2024, compared to $174,000 for the same period in 2023[278]. - The company had a total of $24.2 million in contractual cash obligations as of September 30, 2024[284]. Revenue Recognition and Accounting Policies - The Company generates revenue through Fiat Currency Prefunded Remittance Fees, which are fixed and specific for each country's currency, charged at the time of transaction[298]. - The XRP Prefunded Remittance Service allows customers to obtain prefunding through Ripple's solution, with the Company charging an XRP Prefunded Remittance Service Fee upon transfer[299]. - Revenue from the sale of goods is recognized upon delivery, with typical credit terms of 3-7 days[302]. - Revenue from airtime sales is recognized when the international airtime transfer or reload request is processed[303]. - The Company performs annual goodwill impairment tests, with no impairment recorded for the periods ended September 30, 2024, and December 31, 2023[306]. - The Company is classified as an "emerging growth company," allowing it to take advantage of certain exemptions from reporting requirements[307]. - As a smaller reporting company, the Company benefits from reduced disclosure obligations, including providing only two years of audited financial statements[309]. - The Company is not required to provide quantitative and qualitative disclosures about market risk due to its smaller reporting company status[310].
InFinT Acquisition (IFIN) - 2024 Q3 - Quarterly Report