Moatable(MTBL) - 2025 Q1 - Quarterly Results

FORM 8-K Filing Information This section provides essential identification details for the Form 8-K filing, including registrant name, jurisdiction, address, and filing date General Information This section provides the basic identification details for the Form 8-K filing, including the registrant's name, jurisdiction, address, and contact information, along with the filing date - Registrant Name: MOATABLE, INC.[2] - Date of Report (earliest event reported): April 15, 2025[2] - Jurisdiction of Incorporation: Cayman Islands[2] Securities Information This section details the securities registered under Section 12(b) of the Act, including trading symbols and registered exchanges Registered Securities | Title of each class | Trading Symbol(s) | Name of each exchange on which registered | | :------------------------------------------------- | :---------------- | :------------------------------------ | | American depositary shares, each representing 45 Class A ordinary shares | MTBLY | OTC Pink | | Class A ordinary shares, par value $0.001 per share* | MTBLY | OTC Pink | * Not for trading, but only in connection with the listing and trading of American depositary shares on OTC Pink. Item 2.02 Results of Operations and Financial Condition This section details the revisions made to the company's previously issued financial statements due to an understatement of sales tax liability, impacting various financial metrics across 2023 and 2024 periods Revisions to Prior Period Financial Statements Overview Moatable, Inc. revised prior financial statements for 2023 and 2024 due to an identified sales tax liability understatement, presenting impacts prospectively despite immateriality to prior periods - The Company discovered an understatement of sales tax liability as of September 30, 2024, totaling $3,293 thousand (tax plus interest)[6] - The understatement includes $2,358 thousand related to prior years (2021-2023) and $935 thousand related to the nine months ended September 30, 2024[6] - Management concluded the misstatement did not materially misstate consolidated financial statements for the year ended December 31, 2023, or condensed consolidated financial statements for various periods in 2023 and 2024[7] Financial Statement Revisions - 2023 Periods This section details specific adjustments to 2023 condensed consolidated financial statements, primarily impacting liabilities, accumulated deficit, selling and marketing expenses, and net income/loss Adjustment to Opening Accumulated Deficit as of January 1, 2023 (in thousands) | Item | As reported | Adjustments | As adjusted | | :------------------ | :---------- | :---------- | :---------- | | Accumulated deficit | $(697,299) | $(1,268) | $(698,567) | March 31, 2023 Revisions Adjustments for March 31, 2023, increased accrued expenses and total liabilities, decreased accumulated deficit and net income, and slightly reduced basic and diluted EPS Key Financial Adjustments for March 31, 2023 (in thousands) | Line Item | As reported | Adjustments | As adjusted | | :----------------------------------- | :---------- | :---------- | :---------- | | Accrued expenses and other current liabilities | $11,647 | $1,524 | $13,171 | | Total current liabilities | $28,820 | $1,524 | $30,344 | | Accumulated deficit | $(692,167) | $(1,524) | $(693,691) | | Selling and marketing | $4,896 | $256 | $5,152 | | Net income | $5,334 | $(256) | $5,078 | | Net income per share (Basic & Diluted) | $0.005 | $(0.0002) | $0.005 | June 30, 2023 Revisions Revisions for June 30, 2023, increased accrued expenses, total liabilities, and accumulated deficit, leading to higher net losses and reduced EPS due to increased selling and marketing expenses Key Financial Adjustments for June 30, 2023 (in thousands) | Line Item | Period | As reported | Adjustments | As adjusted | | :----------------------------------- | :----- | :---------- | :---------- | :---------- | | Accrued expenses and other current liabilities | Q2 | $10,210 | $1,796 | $12,006 | | Accumulated deficit | Q2 | $(707,422) | $(1,796) | $(709,218) | | Selling and marketing | Q2 | $4,639 | $272 | $4,911 | | Net loss | Q2 | $(8,761) | $(272) | $(9,033) | | Net loss per share (Basic & Diluted) | Q2 | $(0.008) | $(0.0003) | $(0.009) | | Selling and marketing | 6M | $9,535 | $528 | $10,063 | | Net loss | 6M | $(3,427) | $(528) | $(3,955) | | Net loss per share (Basic & Diluted) | 6M | $(0.002) | $(0.001) | $(0.003) | September 30, 2023 Revisions Revisions for September 30, 2023, increased accrued expenses, total liabilities, and accumulated deficit, leading to higher net losses and loss per share due to increased selling and marketing expenses Key Financial Adjustments for September 30, 2023 (in thousands) | Line Item | Period | As reported | Adjustments | As adjusted | | :----------------------------------- | :----- | :---------- | :---------- | :---------- | | Accrued expenses and other current liabilities | Q3 | $10,208 | $2,072 | $12,280 | | Accumulated deficit | Q3 | $(714,272) | $(2,072) | $(716,344) | | Selling and marketing | Q3 | $4,382 | $276 | $4,658 | | Net loss | Q3 | $(6,958) | $(276) | $(7,234) | | Net loss per share (Basic & Diluted) | Q3 | $(0.008) | $(0.0003) | $(0.009) | | Selling and marketing | 9M | $13,917 | $804 | $14,721 | | Net loss | 9M | $(10,385) | $(804) | $(11,189) | | Net loss per share (Basic & Diluted) | 9M | $(0.009) | $(0.001) | $(0.010) | Financial Statement Revisions - 2024 Periods This section outlines adjustments to 2024 condensed consolidated financial statements, reflecting the sales tax liability understatement's impact on liabilities, accumulated deficit, operating expenses, and net income/loss March 31, 2024 Revisions Adjustments for March 31, 2024, increased accrued expenses, total liabilities, and accumulated deficit, leading to a higher net loss and slightly larger loss per share due to increased selling and marketing expenses Key Financial Adjustments for March 31, 2024 (in thousands) | Line Item | As reported | Adjustments | As adjusted | | :----------------------------------- | :---------- | :---------- | :---------- | | Accrued expenses and other current liabilities | $10,673 | $2,647 | $13,320 | | Total current liabilities | $21,259 | $2,647 | $23,906 | | Accumulated deficit | $(719,129) | $(2,647) | $(721,776) | | Selling and marketing | $3,787 | $289 | $4,076 | | Net loss | $(2,841) | $(289) | $(3,130) | | Net loss per share (Basic & Diluted) | $(0.004) | $(0.0004) | $(0.004) | June 30, 2024 Revisions Revisions for June 30, 2024, increased accrued expenses, total liabilities, and accumulated deficit, leading to higher net losses and loss per share due to increased selling and marketing expenses Key Financial Adjustments for June 30, 2024 (in thousands) | Line Item | Period | As reported | Adjustments | As adjusted | | :----------------------------------- | :----- | :---------- | :---------- | :---------- | | Accrued expenses and other current liabilities | Q2 | $9,821 | $2,957 | $12,778 | | Accumulated deficit | Q2 | $(719,291) | $(2,957) | $(722,248) | | Selling and marketing | Q2 | $4,576 | $310 | $4,886 | | Net loss | Q2 | $(182) | $(310) | $(492) | | Net loss per share (Basic & Diluted) | Q2 | $(0.0002) | $(0.0004) | $(0.0006) | | Selling and marketing | 6M | $8,363 | $599 | $8,962 | | Net loss | 6M | $(3,023) | $(599) | $(3,622) | | Net loss per share (Basic & Diluted) | 6M | $(0.004) | $(0.001) | $(0.005) | September 30, 2024 Revisions Final revisions for September 30, 2024, increased accrued expenses and total liabilities to $15,135 thousand and $27,486 thousand respectively, deepening the accumulated deficit to $(721,084) thousand, and increasing net loss and loss per share Key Financial Adjustments for September 30, 2024 (in thousands) | Line Item | Period | As reported | Adjustments | As adjusted | | :----------------------------------- | :----- | :---------- | :---------- | :---------- | | Accrued expenses and other current liabilities | Q3 | $11,842 | $3,293 | $15,135 | | Total current liabilities | Q3 | $23,084 | $3,293 | $26,377 | | Accumulated deficit | Q3 | $(717,791) | $(3,293) | $(721,084) | | Selling and marketing | Q3 | $4,628 | $336 | $4,964 | | Net income | Q3 | $1,505 | $(336) | $1,169 | | Net income per share (Basic & Diluted) | Q3 | $0.002 | $(0.0004) | $0.001 | | Selling and marketing | 9M | $12,991 | $935 | $13,926 | | Loss from operations | 9M | $(1,856) | $(935) | $(2,791) | | Net loss | 9M | $(1,518) | $(935) | $(2,453) | | Net loss per share (Basic & Diluted) | 9M | $(0.002) | $(0.001) | $(0.003) | Item 9.01 Financial Statements and Exhibits This section lists the financial statements and exhibits filed as part of the Form 8-K, including the Cover Page Interactive Data File Exhibits This section lists the exhibits filed as part of the Form 8-K, including the Cover Page Interactive Data File Exhibits Filed | Exhibit Number | Description | | :------------- | :---------------------------------------------------- | | 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | SIGNATURES This section provides details of the official signing of the report, including the signatory's name, title, and the date of signature Signature Details The report was duly signed on behalf of Moatable, Inc. by its Chief Financial Officer, Scott Stone, on April 23, 2025 - Signed by: Scott Stone, Chief Financial Officer[35] - Date of Signature: April 23, 2025[35]