Hanryu (US:HRYU)2025-11-12 17:02Revenue Performance - For the nine months ended September 30, 2025, revenue was $1,867, generated from the FANING platform, marking a 100% increase compared to the previous period[182]. - For the three months ended September 30, 2025, revenue was $1,838, also generated from the FANING platform, reflecting a 100% increase compared to the previous period[186]. - The company expects to begin generating revenue from new sources, including merchandise sales and K-Food sales, starting in the fourth quarter of 2025[182]. - The platform's monetization strategy includes direct revenue from advertising, digital content, and commerce, as well as commissions on user-to-user transactions[215]. Net Loss and Financial Performance - The net loss for the nine months ended September 30, 2025, was $1,787,707, a decrease of approximately 15% from the net loss of $2,100,679 for the same period in 2024[184]. - The net loss for the three months ended September 30, 2025, was $542,977, representing an approximate 10% increase compared to the net loss of $491,708 for the same period in 2024[186]. - The company anticipates improved financial performance starting from the fourth quarter of 2025 due to the launch of the restructured FANING platform[193]. Expenses and Cost Management - General and administrative expenses for the nine months ended September 30, 2025, increased by 152% to $1,783,508 compared to $708,559 in 2024[182]. - Cost of revenue is expected to increase proportionately with the growth of the user base for the FANING platform[176]. - The company is currently in the process of raising additional operating capital following cost-saving measures implemented in 2024[191]. User Growth and Market Position - FANING platform had over 26.6 million registered users globally as of September 30, 2025, capitalizing on the global rise in K-Culture fandom exceeding 229 million fans in 119 countries[213]. - The company executed a 1-for-20 reverse stock split on January 27, 2025, reducing total issued shares from 52,808,589 to 2,640,402[190]. Assets and Liabilities - As of September 30, 2025, the company reported cash and cash equivalents of $36,915, an increase from $2,352 as of December 31, 2024[191]. - Total current assets increased to $120,071 from $2,987 as of December 31, 2024[191]. - Total current liabilities decreased to $631,216 from $668,339, representing a reduction of $37,123 due to the conversion of existing debt into equity[192]. - The company has an accumulated deficit of $39,689,008 as of September 30, 2025, compared to $37,901,301 as of December 31, 2024[190]. Capital Raising and Future Plans - The company is in the process of raising operating capital through a public offering to increase revenue and generate income from new business lines[185]. - The company plans to diversify revenue streams through user-to-user commissions and advertising agreements starting in the fourth quarter of 2025[175]. Market Risks and Accounting Standards - The company is exposed to market risks primarily due to fluctuations in foreign currency and credit, impacting its financial position[203]. - The company is currently evaluating the impact of new accounting standards issued by the FASB, which are not expected to have a material effect on its financial statements upon adoption[219]. Platform Update - The FANING platform was updated and relaunched in April 2025, with revenue generation beginning in May 2025[167]. - The company has no contractual obligations or off-balance sheet commitments as of September 30, 2025[199][201].