Hanryu (US:HRYU)2024-11-20 00:15User Growth and Platform Features - FANTOO platform has exceeded 27 million users since its launch in May 2021, primarily focusing on K-Culture enthusiasts[170]. - FANTOO is available in 17 languages, with real-time translation services to facilitate global user communication[176]. Financial Performance - As of September 30, 2024, the company reported stockholders' equity of $10,615,774 and working capital of $8,355,991, down from $13,068,465 and $10,140,579 as of December 31, 2023[172]. - The company incurred operating losses of $2,109,827 for the nine months ended September 30, 2024, compared to $8,518,919 for the same period in 2023, reflecting a 77% improvement[172]. - Revenue for the nine months ended September 30, 2024, was $198, a decrease of 100% from $980,441 in 2023[198]. - Total operating expenses for the nine months ended September 30, 2024, were $2,110,025, a decrease of 77% from $9,018,805 in 2023[198]. - Revenue for the nine months ended September 30, 2024 was $198, a decrease of $980,243 compared to $980,441 for the same period in 2023, primarily due to a decline in advertising and content sales[203]. - The company reported a net loss of $2,109,827 for the nine months ended September 30, 2024, compared to a net loss of $8,552,478 for the same period in 2023[213]. - Net cash used in operating activities for the nine months ended September 30, 2024 was $660,632, significantly lower than $10,803,751 for the same period in 2023[222]. - As of September 30, 2024, the company had cash and cash equivalents of approximately $6,975, raising substantial doubt about its ability to continue as a going concern[214]. Cost Management - Cost of revenue for the nine months ended September 30, 2024 was $0, compared to $514,314 for the same period in 2023, reflecting the significant drop in revenue[204]. - Marketing and advertising expenses decreased to $3,437 for the nine months ended September 30, 2024, down from $1,076,592 in 2023, due to restructuring efforts[207]. - Research and development expenses were $0 for the nine months ended September 30, 2024, compared to $45,768 for the same period in 2023, reflecting management's strategic decisions[208]. - General and administrative expenses decreased to $2,106,588 for the nine months ended September 30, 2024, down from $7,896,445 in 2023, primarily due to reductions in commissions, labor, and travel costs[209]. Future Plans and Financing - The company plans to launch an Epic branded e-commerce platform and dedicated video production operations to enhance revenue streams[174]. - The company anticipates generating revenue from user-to-user transactions, which is expected to become a significant revenue source in the long term[178]. - The entertainment agency business is expected to assist influencers in monetizing their status, with anticipated revenue generation by the end of 2024[189]. - The cost of revenue is expected to increase proportionately with user base growth, primarily driven by service, hosting, and production costs[191]. - The company anticipates needing additional financing to support its operations and business model, with no current agreements in place for such financing[218]. - The company raised gross proceeds of $8,773,280 from its IPO in July 2023, with net proceeds of approximately $7.7 million after expenses[216]. Company Classification - The company will remain an emerging growth company until at least December 31, 2028, unless it meets certain revenue or market value thresholds[236]. - The company will cease to be an emerging growth company if total annual gross revenue exceeds $1.235 billion[236]. - The company is classified as a smaller reporting company and is not required to provide certain market risk disclosures[238].