Financial Performance - For the three months ended March 31, 2025, the company generated revenues of $47,328,701, a decrease of 13.65% from $54,808,042 in the same period of 2024[204]. - Net income attributable to SBC Medical Group Holdings Incorporated for the three months ended March 31, 2025 was $21,502,446, representing a 14.63% increase from $18,757,752 in the prior year[204]. - Franchising revenue increased by 4.03% to $15,719,282 for the three months ended March 31, 2025, compared to $15,110,268 in 2024[210]. - Procurement revenue rose by 8.61% to $14,332,783 for the three months ended March 31, 2025, up from $13,195,984 in the same period of 2024[211]. - Management services revenue decreased by 44.25% to $8,728,103 for the three months ended March 31, 2025, down from $15,654,670 in 2024[212]. - Rental services revenue increased significantly by 55.90% to $5,640,514 for the three months ended March 31, 2025, compared to $3,617,941 in 2024[213]. - Gross profit for the three months ended March 31, 2025 was $37,733,084, a decrease of 4.52% from $39,519,375 in 2024[216]. - Net income increased by $2,741,734, or 14.62%, to $21,491,950 for the three months ended March 31, 2025, from $18,750,216 for the same period in 2024[225]. Expenses and Costs - Cost of revenues decreased to $9,595,617 for the three months ended March 31, 2025, from $15,288,667 in the same period of 2024, primarily due to cost reduction efforts[215]. - Operating expenses decreased by $1,527,480, or 10.14%, to $13,531,010 for the three months ended March 31, 2025, compared to $15,058,490 for the same period in 2024[217]. - Recruiting expense decreased by $512,678, or 67.72%, to $244,377 for the three months ended March 31, 2025, from $757,055 for the same period in 2024[218]. - Depreciation and amortization expense decreased by $507,299, or 52.37%, to $461,405 for the three months ended March 31, 2025, from $968,704 for the same period in 2024[219]. Cash and Investments - Cash and cash equivalents increased by $7,011,731, or 5.61%, to $132,055,823 as of March 31, 2025, compared to $125,044,092 as of December 31, 2024[227]. - Net cash provided by operating activities was $1,928,621 for the three months ended March 31, 2025, a decrease of $1,753,554, or 47.62%, from $3,682,175 for the same period in 2024[233]. - Interest income increased by $37,644, or 212.81%, to $55,333 for the three months ended March 31, 2025, compared to $17,689 for the same period in 2024[222]. - The Company expects to deploy capital for investment opportunities in the expanding global medical aesthetics market[230]. - A share repurchase program with an aggregate purchase limit of up to USD 5 million was approved, set to begin on May 20, 2025[242]. Liabilities and Financial Position - As of March 31, 2025, total undiscounted lease payments amount to $5,473,817, with total lease liabilities of $5,443,973 after accounting for imputed interest[245]. - Future minimum borrowing payments total $6,864,995, with the largest repayment of $6,750,622 due in 2027[247]. - There are no off-balance sheet arrangements as of March 31, 2025, indicating a straightforward financial position[248]. Regulatory and Compliance - The company qualifies as an "emerging growth company," allowing it to take advantage of certain exemptions from reporting requirements[252]. - The company is classified as a "smaller reporting company," which permits reduced disclosure obligations, including providing only two years of audited financial statements[254]. - The company has not reported any material changes to its critical accounting policies and estimates since the last annual report[251]. - The company has elected not to opt out of the extended transition period for new or revised financial accounting standards, aligning its compliance with private companies[253]. Market and Strategic Outlook - The company plans to expand its market presence in Japan, Vietnam, Singapore, and the United States, focusing on the cosmetic medical treatment management market[205]. - The company is exposed to foreign currency exchange rate fluctuations, primarily due to operations in Japan, which could negatively impact financial results if the Japanese yen weakens against the U.S. dollar[249]. - The company borrowed loans from various banks and a financial institution for working capital purposes, indicating ongoing financing activities[246]. - The company continues to evaluate its accounting estimates and assumptions, which could lead to actual results differing from expectations[250].
Pono Capital Two(PTWO) - 2025 Q1 - Quarterly Report