Workflow
FingerMotion(FNGR) - 2026 Q1 - Quarterly Report
FingerMotionFingerMotion(US:FNGR)2025-07-15 20:15

PART I – FINANCIAL INFORMATION This section presents FingerMotion, Inc.'s unaudited condensed consolidated interim financial statements and management's analysis ITEM 1 – FINANCIAL STATEMENTS This section presents FingerMotion, Inc.'s unaudited condensed consolidated interim financial statements and notes for Q1 2025 and 2024 Condensed Consolidated Balance Sheets This section presents the company's financial position, including assets, liabilities, and equity, for May 31, 2025 and February 28, 2025 | Metric | May 31, 2025 (Unaudited) ($) | February 28, 2025 ($) | | :----------------------- | :----------------------- | :------------------ | | Cash and cash equivalents | $2,863,238 | $1,128,135 | | Accounts receivable, net | $38,781,671 | $32,659,437 | | Total Current Assets | $48,889,413 | $42,037,360 | | TOTAL ASSETS | $55,708,451 | $48,820,451 | | Total Current Liabilities | $39,489,417 | $35,134,555 | | TOTAL LIABILITIES | $39,506,569 | $35,161,495 | | TOTAL SHAREHOLDERS' EQUITY | $16,201,882 | $13,658,956 | - Total assets increased by approximately $6.89 million, from $48.82 million at February 28, 2025, to $55.71 million at May 31, 2025, primarily driven by an increase in cash and accounts receivable8 - Total liabilities increased by approximately $4.34 million, from $35.16 million at February 28, 2025, to $39.51 million at May 31, 2025, mainly due to an increase in accounts payable8 Unaudited Condensed Consolidated Statements of Operations This section details the company's revenues, expenses, and net loss for the three months ended May 31, 2025 and 2024 | Metric | Three Months Ended May 31, 2025 ($) | Three Months Ended May 31, 2024 ($) | Change (YoY) | | :------------------------------------ | :------------------------------ | :------------------------------ | :----------- | | Revenue | $8,458,743 | $8,373,983 | +1.01% | | Cost of revenue | $(8,306,222) | $(7,692,094) | +8.00% | | Gross profit | $152,521 | $681,889 | -77.65% | | Total operating expenses | $(2,141,451) | $(2,357,978) | -9.18% | | Net loss from operations | $(1,988,930) | $(1,676,089) | +18.66% | | Net Loss | $(2,022,761) | $(1,655,832) | +22.16% | | Net loss attributable to shareholders | $(2,008,556) | $(1,655,904) | +21.29% | | Loss Per Share - Basic | $(0.04) | $(0.03) | +33.33% | | Loss Per Share - Diluted | $(0.04) | $(0.03) | +33.33% | - Revenue increased slightly by 1% year-over-year, reaching $8.46 million for the three months ended May 31, 20259 - Gross profit significantly decreased by 77.65% year-over-year, from $681,889 to $152,521, primarily due to an 8% increase in cost of revenue9 Unaudited Condensed Consolidated Statement of Shareholders' Equity This section outlines changes in shareholders' equity, including common stock issuances and net loss, for the three months ended May 31, 2025 | Metric | Balance at March 1, 2025 | Common Stock Issued (Cash) | Common Stock Issued (Service) | Common Stock Issued (Customer Deposit Conversion) | Net Loss | Balance at May 31, 2025 | | :------------------------------------ | :----------------------- | :------------------------- | :---------------------------- | :---------------------------------------------- | :--------- | :---------------------- | | Common Stock (Shares) | 57,141,186 | 1,679,743 | 27,500 | 560,000 | — | 59,408,429 | | Common Stock (Amount) ($) | $5,714 | $168 | $3 | $56 | — | $5,941 | | Additional Paid-in Capital ($) | $47,304,416 | $2,956,447 | $56,760 | $1,399,944 | — | $51,717,567 | | Accumulated Deficit ($) | $(34,187,384) | — | — | — | $(2,008,556) | $(36,195,940) | | Total Shareholders' Equity ($) | $13,658,956 | $2,956,615 | $56,763 | $1,400,000 | $(2,022,761) | $16,201,882 | - Total shareholders' equity increased from $13,658,956 at March 1, 2025, to $16,201,882 at May 31, 2025, primarily due to common stock issuances for cash, professional services, and conversion of customer deposits, despite a net loss11 - The company issued 1,679,743 shares for cash, 27,500 shares for professional services, and 560,000 shares for the conversion of customer deposits during the period11 Unaudited Condensed Consolidated Statements of Cash Flows This section details the company's cash inflows and outflows from operating, investing, and financing activities for the three months ended May 31, 2025 and 2024 | Cash Flow Activity | Three Months Ended May 31, 2025 ($) | Three Months Ended May 31, 2024 ($) | | :------------------------------------ | :------------------------------ | :------------------------------ | | Net cash used in operating activities | $(1,204,217) | $(1,409,939) | | Net cash used in investing activities | $(1,826) | $0 | | Net cash provided by financing activities | $2,956,615 | $775,000 | | Effect of exchange rates on cash & cash equivalents | $(15,469) | $181,831 | | Net change in cash | $1,735,103 | $(453,108) | | Cash at end of period | $2,863,238 | $1,064,124 | - Net cash used in operating activities decreased by $205,722, from $(1,409,939) in 2024 to $(1,204,217) in 202513219 - Net cash provided by financing activities significantly increased to $2,956,615 in 2025 from $775,000 in 2024, driven by proceeds from common stock issuance and warrant exercises13221 Notes to the Unaudited Condensed Consolidated Financial Statements This section provides detailed explanations and disclosures supporting the unaudited condensed consolidated financial statements Note 1 – Nature of Business and basis of Presentation FingerMotion, Inc. was incorporated in 2014, refocused to IT after a reverse acquisition in 2017, and operates in China via a VIE structure - FingerMotion, Inc. was incorporated on January 23, 2014, and changed its name from Property Management Corporation of America on July 13, 2017, following a change in control and acquisition of Finger Motion Company Limited (FMCL)[