Revenue and Profitability - The Company reported revenues of $136,643 for the year ended December 31, 2024, a decrease of $1,227,187 or 90% compared to $1,363,830 in 2023, primarily due to the disposition of Softell's assets and operations [463][464]. - Gross profit for 2024 was $6,005, a decrease of $43,026 or 88% from $49,031 in 2023, with a gross profit margin of 4.39% compared to 3.60% in 2023 [465]. - The net loss from continuing operations for 2024 was $18,778,876, an increase of $10,296,011 or 121% compared to $8,482,864 in 2023 [463]. - The company recognized a net loss from continuing operations of $18,244,480 for the year ended December 31, 2024, compared to a net loss of $8,482,864 for the year ended December 31, 2023 [474]. Expenses - Cost of goods sold for 2024 was $130,638, down $1,184,162 or 90% from $1,314,800 in 2023, reflecting fewer revenue-generating operations [465]. - Operating expenses increased to $14,707,020 in 2024, up $10,261,538 or 231% from $4,445,482 in 2023, driven by significant increases in general and administrative expenses [463]. - Wages and salary expense increased by $1,484,520 to $2,111,067 for the year ended December 31, 2024, compared to $626,547 for the same period in 2023 [466]. - Professional fees rose by $583,196 to $1,458,332 compared to $875,136 for the comparable period in 2023, primarily due to increased Board members' fees and consulting expenses [467]. - General and administrative expenses increased by $5,369,446 to $6,706,082 for the year ended December 31, 2024, compared to $1,336,637 for the same period in 2023, mainly due to shares issued for services valued at $4,598,294 [469]. - Research and development expenses related to Scienture LLC's operations post-acquisition totaled $2,236,690 for the year ended December 31, 2024 [471]. Cash Flow and Financial Position - Cash used in operating activities for 2024 was $14,265,238, compared to $2,225,192 in 2023, marking an increase of $12,040,046 or 541% [458][459]. - Cash provided by investing activities for 2024 was $27,552,791, a significant increase from cash used of $275,717 in 2023, primarily due to the MMS disposition and acquisition of Scienture, Inc. [460]. - The Company had an accumulated deficit of $39,038,973 and cash of $308,096 as of December 31, 2024 [456]. - Cash increased to $308,096 as of December 31, 2024, compared to $314 as of December 31, 2023, marking a 98020% increase [477]. - Current assets (excluding cash) rose by $3,244,632 to $5,997,381 for the year ended December 31, 2024, representing a 118% increase compared to $2,752,749 in 2023 [477]. Dividends and Capital Raising - The company declared a special cash dividend of $8.00 per share, totaling $12,671,072, payable on March 22, 2024 [479]. - A second special cash dividend of $1.50 per share was declared, totaling $2,187,759, payable on July 22, 2024 [480]. - The Company plans to raise additional capital through equity and debt to support ongoing operations and potential acquisitions, but there is uncertainty regarding the availability of favorable terms [457][454]. Strategic Decisions - The Company is in the process of determining a divestment and winddown plan for Softell and IPS, with the Board of Directors approving this plan on January 25, 2025 [447]. - Net income from discontinued operations increased by $36,670,988 to $27,310,278 for the year ended December 31, 2024, compared to a net loss of $9,360,710 for the year ended December 31, 2023 [475].
Scienture Holdings, Inc.(SCNX) - 2024 Q4 - Annual Report