Financial Performance - For the year ended December 31, 2024, net cash used in operating activities amounted to approximately $6.99 million, primarily due to a net loss of approximately $6.78 million [327]. - For the year ended December 31, 2023, net cash used in operating activities was approximately $7.16 million, resulting from a net loss of approximately $5.16 million [328]. - The company experienced a net cash decrease of approximately $1.59 million in 2024, compared to an increase of approximately $3.78 million in 2023 [326]. - For the year ended December 31, 2024, net cash used in investing activities was approximately $0.94 million, primarily for leasehold improvements and intangible assets [330]. - For the year ended December 31, 2024, net cash provided by financing activities amounted to approximately $6.34 million, primarily from the issuance of ordinary shares and convertible notes [333]. Cash and Fundraising Activities - The company expects improved cash flows from future fundraising activities, with a non-binding offer for an equity line of credit of up to $20 million over a 36-month period [325]. - The company has raised a total of approximately $15.53 million from financing activities in 2023, mainly from IPO proceeds [334]. Compensation and Employment - The total compensation for Bin Xue, the Chief Executive Officer, increased from $67,032 in 2023 to $80,827 in 2024 [357]. - Ai Lian Phang, the Chief Financial Officer, received a total compensation of $74,542 in 2023, which includes a salary of $73,738 and other compensation of $804 [357]. - Fangqin Lin, the Independent Director and Chairwoman of the Audit Committee, received $20,581 in 2024, while her compensation for 2023 was not specified [359]. - William Tat-Nin Chang, the Independent Director and Chairman of the Compensation and Nominating Committees, saw his compensation rise from $4,486 in 2023 to $22,452 in 2024 [359]. - Lizhi Qiao, an Independent Director, received $14,968 in 2024, compared to $2,990 in 2023 [359]. - The company provides employees with medical benefits, including outpatient coverage and medical leave, in compliance with Singapore employment laws [398]. - As of December 31, 2024, the company had 174 full-time employees, categorized as follows: Management (11), Accounts and Finance (15), Customer Management and Administration (7), Information Technology (2), Warehouse Labor (17), Others (122) [397]. Corporate Governance - The company has established three committees under the Board of Directors: Audit Committee, Compensation Committee, and Nominating Committee, all consisting of independent directors [368]. - The Audit Committee is responsible for overseeing the accounting and financial reporting processes and audits of the financial statements [372]. - The company has adopted an insider trading policy allowing insiders to sell securities under pre-arranged trading plans [370]. - The Board of Directors consists of five directors, a majority of whom are independent as defined by the Nasdaq Capital Market [364]. - The company intends to adopt a code of business conduct and ethics applicable to all directors, executive officers, and employees [396]. - The company is classified as a "foreign private issuer" and may rely on home country governance practices instead of certain Nasdaq corporate governance standards [383]. - The compensation committee is responsible for reviewing and approving the compensation structure for executive officers [378]. - The board of directors has the powers necessary for managing the company's business affairs under Cayman Islands law [380]. Ownership Structure - Bin Xue, CEO, holds 141,578 Class B shares, representing 79.41% ownership in Class B and 59.36% of total shares [401]. - GBUY GLOBAL LTD, controlled by Bin Xue, holds 142,134 Class B shares, accounting for 71.42% of Class B ownership [402]. - WEBUY TALENT LTD, also controlled by Bin Xue, holds 35,577 Class B shares, representing 0% ownership in Class B and 14.92% of total shares [401]. - Michelle Ting Ting Tan, Secretary of the Board, owns 5,990 Class B shares, which is 3.36% of Class B and 2.51% of total shares [401]. - All directors and executive officers collectively own 147,568 Class B shares, equating to 82.77% of Class B and 61.87% of total shares [401]. - Bin Xue has a 74.17% equity interest in GBUY GLOBAL LTD and 100% in WEBUY TALENT LTD [401]. - The total beneficial ownership of Class B shares by Bin Xue and associated entities is significant, indicating strong control over voting power [401]. - The company has a concentrated ownership structure, with a few individuals holding the majority of shares [401]. - The data reflects a strategic alignment of ownership and control among key executives and directors [401]. Labor Relations - The company has not engaged in any labor disputes and maintains good relationships with its employees [398]. - The company has not compensated its directors for their services other than reimbursing out-of-pocket expenses incurred in connection with their attendance at meetings for the fiscal years ended December 31, 2024 and 2023 [393].
Webuy (WBUY) - 2024 Q4 - Annual Report