Agape ATP (US:ATPC)2025-11-13 11:21Revenue Performance - Revenue for Q3 2025 was $370,593, an increase of $39,304 or approximately 11.9% compared to $331,289 in Q3 2024[240][241] - Revenue from the network marketing business decreased by $11,947, or approximately 41.0%, while revenue from skin care and healthcare products increased by $72,160 or approximately 392.1%[241][242] - For the nine months ended September 30, 2025, total revenue was $1,125,129, an increase of $162,158 or approximately 16.8% compared to $962,971 in the same period of 2024[255][256] - Revenue from skin care and healthcare products for the nine months ended September 30, 2025 increased by $136,285 or approximately 740.5%[256] Profitability and Loss - Gross profit for Q3 2025 was $239,103, representing a gross margin of approximately 64.5%, up from $184,185 and a gross margin of 55.6% in Q3 2024[246] - Net loss for Q3 2025 increased to $595,370 from a net loss of $524,039 in Q3 2024, an increase of $71,331[254] - Net loss increased from $1,659,449 for the nine months ended September 30, 2024, to $1,931,535 for the same period in 2025, an increase of $272,086[268] Operating Expenses - Total operating expenses for Q3 2025 were $840,424, an increase of $108,129 or approximately 14.8% from $732,295 in Q3 2024[247] - Cost of revenue for the nine months ended September 30, 2025 was $520,800, an increase of $138,995 or approximately 36.4% from $381,805 in 2024[258] - General and administrative expenses for the nine months ended September 30, 2025 amounted to $2,324,451, an increase of $171,562 or approximately 8.0% from $2,152,889 in 2024[264] - Commission expenses for the nine months ended September 30, 2025 increased by $27,777 or approximately 117.8% to $51,350 compared to $23,573 in 2024[263] Cash Flow and Working Capital - Net cash used in operating activities for the nine months ended September 30, 2025, was $2,205,074, compared to $2,080,879 for the same period in 2024[270] - Net cash used in investing activities for the nine months ended September 30, 2025, was $23,000,667, primarily from advances for investment[273] - Net cash provided by financing activities for the nine months ended September 30, 2025, was $23,297,009, consisting of proceeds from the issuance of common stock for $23,000,000[274] - Working capital as of September 30, 2025, was $22,585,047, compared to $1,656,571 as of December 31, 2024[269] Accounting Standards and Regulations - The FASB issued ASU 2023-09 requiring companies to disclose specific categories in the rate reconciliation if the effect is equal to or greater than 5% of the amount computed by multiplying pretax income by the applicable statutory income tax rate, effective after December 15, 2024[303] - The Company is currently evaluating the impact of ASU 2023-09 on its consolidated financial statements[303] - The FASB issued ASU 2024-01 clarifying the scope application of profits interest and similar awards, effective for annual reporting periods beginning after December 15, 2024[300] - The adoption of ASU 2024-01 has no material impact on the Company's consolidated financial statements[300] - The FASB issued ASU 2024-02 to remove extraneous references in accounting guidance, effective for annual reporting periods beginning after December 15, 2024, with no significant impact expected[301] - The Company has reviewed all recently issued accounting standards updates and is evaluating their applicability and impact[302] - The FASB issued ASU 2024-03 requiring additional disclosures about the nature of expenses in the income statement, effective after December 15, 2026[304] - The Company is currently evaluating the effect of adopting ASU 2024-03[304] Credit Risk and Allowance - The Company believes that its concentration of credit risk in trade receivables is mitigated by an ongoing credit evaluation process and short collection terms[311] - The Company does not generally require collateral from customers and evaluates the need for an allowance for credit loss based on specific customer credit risk factors[311] - The allowance for credit loss was recognized at $6,559 as of September 30, 2025, down from $32,857 as of December 31, 2024[284] Assets and Liabilities - The carrying amounts of operating right-of-use assets and property, plant, and equipment were $119,021 and $15,122, respectively, as of September 30, 2025[281] - Accumulated deficits increased to $11,420,899 as of September 30, 2025, from $9,518,045 as of December 31, 2024[269] - The company has no significant off-balance sheet arrangements that could materially affect its financial condition as of September 30, 2025[277]