Agape ATP (US:ATPC)2025-08-13 14:31Financial Performance - For the three months ended June 30, 2025, the company generated revenue of $465,499, an increase of $152,460 or approximately 48.7% compared to $313,039 for the same period in 2024[231] - Revenue from the company's network marketing business decreased by $13,097, or approximately 44.8%, while new revenue streams included $55,446 from wellness and wellbeing lifestyle and $135,434 from green energy[231] - For the six months ended June 30, 2025, total revenue was $754,536, an increase of $122,854 or approximately 19.4% compared to $631,682 in 2024[246] Cost and Expenses - Cost of revenue for the three months ended June 30, 2025 amounted to $256,559, an increase of $137,081 or approximately 114.7% from $119,478 in 2024[233] - Total operating expenses for the three months ended June 30, 2025 were $845,901, an increase of $198,755 or approximately 30.7% from $647,146 in 2024[237] - Cost of revenue for the six months ended June 30, 2025 was $389,310, an increase of $154,609 or approximately 65.9% from $234,701 in 2024[248] Profitability - Gross profit for the three months ended June 30, 2025 was $208,940, with a gross margin of approximately 44.9%, down from $193,561 and 61.8% in 2024[236] - Gross profit for the six months ended June 30, 2025 was $365,226, with a gross margin of approximately 48.4%, down from $396,981 and 62.8% in 2024[250] - The company recorded a net loss of $623,246 for the three months ended June 30, 2025, an increase of $190,931 from a net loss of $432,315 in 2024[245] - Net loss increased to $1,336,165 for the six months ended June 30, 2025, compared to a net loss of $1,135,410 for the same period in 2024, representing an increase of $200,755[258] Cash Flow - Net cash used in operating activities for the six months ended June 30, 2025, was $1,948,332, compared to $1,656,000 for the same period in 2024, indicating a higher cash outflow[260] - Net cash used in investing activities surged to $23,000,660 for the six months ended June 30, 2025, compared to only $3,567 in 2024, primarily due to advances for investment[263] - Net cash provided by financing activities was $23,115,678 for the six months ended June 30, 2025, mainly from the issuance of common stock for $23,000,000[265] Financial Position - Working capital as of June 30, 2025, was $23,149,202, a significant increase from $1,656,571 as of December 31, 2024[259] - The company had accumulated deficits of $10,834,072 as of June 30, 2025, compared to $9,518,045 as of December 31, 2024[259] - The allowance for credit loss increased to $42,838 as of June 30, 2025, from $32,857 as of December 31, 2024[276] Tax and Accounting Standards - The provision for income taxes was $0 for the six months ended June 30, 2025, compared to $16,678 for the same period in 2024[257] - The FASB issued ASU 2023-09 requiring companies to disclose specific categories in the rate reconciliation if the effect of reconciling items is equal to or greater than 5% of the amount computed by multiplying pretax income by the applicable statutory income tax rate[296] - The adoption of ASU 2023-07 is effective for annual reporting periods beginning after December 15, 2023, with no material impact on the consolidated financial statements[291] - The Company is currently evaluating the impact of ASU 2024-01 on its consolidated financial statements, which clarifies the scope application of profits interest and similar awards[292] - The amendments in ASU 2024-02 are effective for annual reporting periods beginning after December 15, 2024, and are not expected to result in significant accounting changes[293] - The FASB issued ASU 2024-03 requiring additional disclosures about the nature of expenses included in the income statement, effective for annual periods beginning after December 15, 2026[297] - The Company is evaluating the effect of adopting ASU 2024-04 regarding the accounting for induced conversions of convertible debt instruments, effective after December 15, 2025[298] - The Company has reviewed all recently issued accounting standards updates and considers their applicability and impact[295] - There are no new accounting standards that will have a material impact on the consolidated financial position or cash flows, except for those mentioned[294] Risk Management - The Company believes that its concentration of credit risk in trade receivables is substantially mitigated by its ongoing credit evaluation process and relatively short collection terms[303] - The Company does not currently hedge exposures denominated in foreign currencies, limiting its direct foreign exchange risk[302] - The company recorded no inventory write-downs for the six months ended June 30, 2025, but had an inventory write-off of $6,897[271] - The company had no significant off-balance sheet arrangements as of June 30, 2025, that could materially affect its financial condition[268]