Aureus Greenway Holdings Inc(US:AGH)2025-08-14 20:01Company Operations - The company operates two public golf country clubs in Florida, acquired in 2014, covering over 289 acres with two golf courses totaling more than 13,000 yards[122]. - The company plans to enhance customer loyalty and increase revenue by promoting and managing its golf country clubs, targeting the greater Orlando region[124]. - The company aims to expand its portfolio through regional country club acquisitions and enhance customer engagement through quality experiences[126]. Revenue Streams - Revenue streams include golf operations, food and beverage sales, merchandise sales, and ancillary income[123]. - Revenue from golf operations includes annual subscription green fees and one-time green fees, both requiring advance payment and being non-refundable[139][141]. - The company recognizes revenue from merchandise and food and beverage sales at the point of delivery, with fixed pricing and no variable consideration[143]. Financial Performance - Total revenue for the six months ended June 30, 2025, decreased by $271,569 or 12% to $1,930,603 compared to $2,202,172 for the same period in 2024[151]. - Revenue from golf operations for the six months ended June 30, 2025, decreased by $234,801 or 14% to $1,444,808, primarily due to a $229,639 or 15% decrease in one-time green fees[152]. - Revenue from sales of food and beverage decreased by $18,695 or 5% to $373,390 for the six months ended June 30, 2025, driven by a 6% decrease in quantities sold[154]. - Revenue from sales of merchandise decreased by $10,416 or 14% to $65,408 for the six months ended June 30, 2025, attributed to a 16% decrease in sales of golf-related items[155]. - Ancillary revenue decreased by $7,657 or 14% to $46,997 for the six months ended June 30, 2025, due to reduced demand for rental services[156]. - Net loss for the six months ended June 30, 2025, was $23,049 compared to a net income of $260,283 for the same period in 2024[149]. Operating Costs - Total operating costs for the six months ended June 30, 2025, increased to $2,004,069 from $1,816,837 in 2024[149]. - The company's operating expenses increased from $1,816,837 for the six months ended June 30, 2024 to $2,004,069 for the six months ended June 30, 2025, representing a growth of 10%[165]. - Salaries and benefits rose by $145,297 or 38% from $377,643 for the six months ended June 30, 2024 to $522,940 for the six months ended June 30, 2025, primarily due to increased compensation for key executives[169]. - The cost of food and beverage sales increased by $11,004 or 10% from $114,040 for the six months ended June 30, 2024 to $125,044 for the six months ended June 30, 2025, driven by higher raw material prices[167]. Cash Flow and Capital Expenditures - Cash used in operating activities was approximately $337,364 for the six months ended June 30, 2025, primarily due to a net loss of $23,049[199]. - Cash flows used in investing activities amounted to $448,740 for the six months ended June 30, 2025, mainly for the purchase of property and equipment[202]. - Cash provided by financing activities was $7,954,375 during the six months ended June 30, 2025, resulting from net proceeds from the issuance of common stocks[204]. - The company incurred capital expenditures of $455,518 for the six months ended June 30, 2025, related to renovations and upgrades of golf courses and facilities[207]. Assets and Liabilities - Current assets increased significantly to $7,943,073 as of June 30, 2025, up 606% from $1,125,272 as of December 31, 2024[187]. - Cash and cash equivalents surged to $7,625,413 as of June 30, 2025, reflecting a 1,568% increase from $457,142 as of December 31, 2024[187]. - Total current liabilities decreased by 66% from $3,403,513 as of December 31, 2024 to $1,153,127 as of June 30, 2025[187]. - Accounts payable and accrued liabilities increased by $164,716 or 32% from $420,005 as of December 31, 2024, to $554,721 as of June 30, 2025, primarily due to a $200,000 increase for greens renovation[192]. Tax and Compliance - The effective tax rate increased from 34.6% for the six months ended June 30, 2024 to 134.0% for the six months ended June 30, 2025, primarily due to increased operating costs not subject to income tax[183]. - The Company has not experienced losses on accounts receivable and believes credit risk is minimal due to the quality of financial institutions[214]. Risk Management - The Company actively manages credit risk by evaluating customer creditworthiness and monitoring exposure to credit losses[215]. - The Company focuses on improving operational efficiency and cost reductions to enhance liquidity management[220]. - Market risk exposure is limited to normal business operations, with no engagement in speculative transactions[221].