Society Pass rporated(SOPA) - 2025 Q1 - Quarterly Report

Revenue Performance - Revenue for the three months ended March 31, 2025, was $1,473,504, a decrease of 20.2% from $1,847,079 in the same period of 2024[266] - Digital marketing segment revenue decreased from $1,552,420 in Q1 2024 to $1,183,217 in Q1 2025, reflecting increased competition[267] - Online ticketing and reservations revenue increased from $264,574 in Q1 2024 to $287,397 in Q1 2025 due to partnerships with more vendors[267] - Revenue from the Lifestyle sector for the three months ended March 31, 2025, was $2,660, a decrease from $20,728 in the same period of 2024[305] - Telecommunications revenue generated was $230 for the three months ended March 31, 2025, down from $4,566 in the same period of 2024[308] - Revenue from ancillary services, including insurance commissions and refund margins, was $287,397 for the three months ended March 31, 2025, up from $264,574 in 2024, reflecting an increase of about 8.6%[326] Net Loss and Financial Position - The net loss for the three months ended March 31, 2025, was $1,845,648, compared to a net loss of $2,839,224 in Q1 2024, indicating a reduction in losses[266] - Net loss improved to $1,845,648 in Q1 2025 from $2,839,224 in Q1 2024, primarily due to decreased G&A expenses[275] - For the three months ended March 31, 2025, the net loss attributable to Society Pass Incorporated was $1,841,088, compared to a net loss of $2,839,925 for the same period in 2024[343] - The diluted net loss per share for the three months ended March 31, 2025, was $(0.44), compared to $(1.21) for the same period in 2024[343] Customer and Revenue Concentration - Customer A accounted for 40.16% of total revenues in Q1 2025, generating $588,481[269] - Revenue for Customer A was $906.12 million, representing a 9.06% increase, while Customer B generated $278.74 million, a 5.09% increase[270] Expenses and Cost Management - Cost of revenue increased to $1,354,430 for the three months ended March 31, 2025, compared to $1,007,877 in 2024, primarily due to digital marketing expenses[271] - Gross income decreased to $465,627 in Q1 2025 from $492,649 in Q1 2024, with gross income margin improving to 32% from 27% due to higher revenue from online ticketing[272] - Sales and marketing expenses significantly reduced to $45,749 in Q1 2025 from $127,135 in Q1 2024, attributed to planned cost reductions[273] - General and administrative expenses decreased to $2,272,879 in Q1 2025 from $3,243,671 in Q1 2024, mainly due to lower professional fees and cost restructuring[274] Cash Flow and Financing Activities - Net cash used in operating activities was $4,033,502 in Q1 2025, compared to $2,361,485 in Q1 2024, reflecting a higher net loss and changes in working capital[280] - Net cash provided by financing activities was $3,439,479 in Q1 2025, resulting from the issuance of convertible notes and share issuance for ATM[285] - The company expects to continue relying on cash generated through financing for operations and future acquisitions, indicating a focus on growth strategy[279] Acquisitions and Business Expansion - The company has made several acquisitions to expand its e-commerce ecosystem, including the acquisition of Nusatrip Group, enhancing its presence in the travel sector[251] - The company acquired NusaTrip Group, expanding its reach into the SEA regional travel industry, with over 1.2 million registered users and connections to over 80 million unique visitors[304] Digital Marketing and Technology - The loyalty platform allows consumers to earn Society Points, which are used to increase sales through data aggregation and customer re-targeting[254] - The company operates a telecommunications reseller platform under the brand name "Gorilla," utilizing Web3 technology to offer mobile data services[256] - The digital marketing platform, TMG, has uploaded over 675,000 videos with over 80 billion views, enhancing the company's advertising reach[258] - The company has developed a digital marketing platform, TMG, which has uploaded over 675,000 videos with over 80 billion views, enhancing its e-commerce ecosystem[301] - The company operates a telecommunication reseller platform, "Gorilla," which allows customers to convert unused mobile data into digital assets[300] Assets and Liabilities - As of March 31, 2025, cash and cash equivalents totaled $7,142,266, with accounts receivable at $858,801 and inventories at $163,185[277] - The company's inventories amounted to $163,185 as of March 31, 2025, compared to $157,734 as of December 31, 2024[288] - The Company’s contract liabilities balance was $1,234,875 as of March 31, 2025, down from $1,426,901 on December 31, 2024, representing a decrease of approximately 13.5%[330] - Contract assets balance was $336,129 as of March 31, 2025, slightly up from $333,188 on December 31, 2024, reflecting a marginal increase of about 0.6%[328] Regulatory and Compliance - The Company adopted ASC Topic 842 for leases, impacting the recognition of operating lease right-of-use assets and liabilities[345] - The FASB issued ASU No. 2023-07, effective for annual periods beginning after December 15, 2023, which improves reportable segment disclosure requirements, with no material impact on the financial statements as evaluated by the company[359] - ASU No. 2023-09, effective for annual periods beginning after December 15, 2024, introduces standard categories for effective tax rate reconciliation and requires additional disclosures, with the company currently evaluating its impact[361] - The company maintains disclosure controls and procedures designed to provide reasonable assurance for timely reporting, although these controls are not effective at the reasonable assurance level as concluded by management[364] - There were no changes in the company's internal control over financial reporting during the period ended March 31, 2025, that materially affected its internal control[365]