Society Pass rporated(US:SOPA)2025-11-14 12:41Revenue Performance - Revenue for the three months ended September 30, 2025, was $1,380,382, a decrease from $1,675,894 in the same period of 2024, while revenue for the nine months ended September 30, 2025, increased to $5,355,380 from $5,233,483 in 2024[331]. - Digital marketing revenue for the nine months ended September 30, 2025, was $4,049,548, down from $4,542,073 in 2024, primarily due to a drop in MCN viewer revenue and awarded premium contracts[332]. - Online ticketing and reservations revenue increased to $1,287,769 for the nine months ended September 30, 2025, compared to $650,480 in 2024, attributed to partnerships with more vendors for competitive pricing[332]. - United States revenue decreased from $2,679,269 to $1,284,480, a decline of approximately 52% due to customer content restrictions[333]. - Vietnam revenue decreased from $557,402 to $41,703, a decline of approximately 93% due to fewer projects awarded[333]. - Singapore revenue increased from $140,216 to $1,753,635, an increase of approximately 1155% driven by digital marketing and online ticketing[333]. - In the Lifestyle sector, the Company generated revenue of $10,212 million for the three months ended September 30, 2025, compared to $4,931 million for the same period in 2024, representing a year-over-year increase of 106%[384]. - For the nine months ended September 30, 2025, revenue in the Lifestyle sector was $17,591 million, down from $29,360 million in 2024, indicating a decline of 40%[385]. - Telecommunications revenue for the three months ended September 30, 2025, was $75 million, a decrease from $106 million in 2024, reflecting a decline of 29%[390]. - For the nine months ended September 30, 2025, telecommunications revenue was $472 million, significantly lower than $4,849 million in 2024, marking a decline of 90%[391]. - Online advertising revenue for the three months ended September 30, 2025, was $801,422 million, down from $1,461,480 million in 2024, a decrease of 45%[402]. - For the nine months ended September 30, 2025, online advertising revenue was $4,049,548 million, compared to $4,542,073 million in 2024, a decline of 11%[403]. Financial Performance - Gross income for the three months ended September 30, 2025, was $887,340, significantly higher than $365,646 in the same period of 2024[331]. - Total operating expenses for the three months ended September 30, 2025, were $6,131,964, compared to $1,540,260 in 2024, leading to a loss from operations of $5,244,624[331]. - Net loss for the three months ended September 30, 2025, was $5,280,759, compared to a net loss of $1,380,578 in the same period of 2024[331]. - General and Administrative expenses increased significantly to $5,995,012 for the three months ended September 30, 2025, compared to $1,486,362 in 2024, reflecting a 303% increase[340]. - For the three months ended September 30, 2025, the net loss attributable to Society Pass Incorporated was $5,118,989, compared to a net loss of $1,377,885 for the same period in 2024, indicating an increase in net loss of approximately 271.5%[438]. - The diluted net loss per share for the nine months ended September 30, 2025, was $(1.30), compared to $(2.25) for the same period in 2024, showing an improvement of approximately 42.2%[438]. - The weighted average common shares outstanding for the nine months ended September 30, 2025, was 6,105,525, compared to 2,733,145 for the same period in 2024, representing an increase of approximately 123.5%[438]. Cash and Assets - As of September 30, 2025, cash and cash equivalents totaled $6,552,702, with accounts receivable at $1,337,498[345]. - Net cash used in operating activities for the nine months ended September 30, 2025, was $22,521,547, compared to $1,178,148 in 2024[348]. - Net cash provided by financing activities for the nine months ended September 30, 2025, was $21,650,885, primarily from public offerings[354]. - As of September 30, 2025, cash and cash equivalents amounted to $6,552,702, down from $7,630,079 as of December 31, 2024, indicating a decrease of approximately 14.1%[361]. - The Company reported inventories of $82,131 as of September 30, 2025, a decrease of 47.9% compared to $157,734 as of December 31, 2024[365]. - There was no allowance for doubtful accounts recorded as of September 30, 2025, and December 31, 2024, indicating effective management of accounts receivable[364]. - The Company reported contract assets of $79,826 million as of September 30, 2025, down from $333,188 million at the end of 2024[420]. - Contract liabilities decreased to $750,528 million on September 30, 2025, from $1,426,901 million at the end of 2024, indicating a reduction of 47%[422]. - The Company recorded a right of use asset of $838,050, an increase from $751,672 as of December 31, 2024[444]. Strategic Initiatives - The company has made several acquisitions to expand its e-commerce ecosystem, including the acquisition of digital marketing and travel agencies in 2023[320][322]. - The loyalty platform allows consumers to earn Society Points, which are used to enhance sales through data aggregation and consumer behavior analysis[316]. - The company operates in various sectors including loyalty, lifestyle, telecommunications, digital marketing, and travel, aiming to create a comprehensive digital ecosystem in Southeast Asia[315]. - The company’s telecommunications platform, Gorilla, allows users to convert unused mobile data into digital assets, enhancing customer engagement[318]. - The telecommunications platform "Gorilla" ceased local mobile data services to refocus on overseas internet data services, indicating a strategic shift in business operations[380]. - The Company acquired NusaTrip Group, expanding its reach into the Southeast Asian travel industry, with over 1.2 million registered users and connections to over 80 million unique visitors[383]. - TMG, a digital media platform acquired by the Company, has uploaded over 675,000 videos with over 80 billion views, enhancing the Company's digital marketing capabilities[382]. Compliance and Accounting - The Company has opted out of the extended transition period for compliance with new or revised accounting standards, committing to adhere to applicable standards on their effective dates[356]. - The Company adopted ASC 842 for leases, recognizing operating lease right-of-use assets and liabilities based on the present value of lease payments[440]. - The Company follows ASC Topic 718 for share-based compensation, recognizing stock-based compensation as an expense during the three and nine months ended September 30, 2025, and 2024[444]. - The Company issued warrants in connection with financing and collaboration arrangements, measured at fair value using the Black-Scholes Option Pricing Model[445]. - The Company assesses loss contingencies related to legal proceedings and recognizes estimated liabilities in its financial statements if a material loss is probable and can be estimated[450]. - The carrying amounts of the Company's financial assets and liabilities approximate their fair values due to the short maturity of these instruments[455]. - The Company adopted ASU No. 2023-09, which requires additional disclosures for income tax components, effective for annual periods beginning after December 15, 2024[457]. - The Company is evaluating the potential impact of ASU 2024-03, which requires disclosures about certain costs and expenses, effective for annual periods beginning after December 15, 2026[458]. - The Company concluded that its disclosure controls and procedures are not effective at the reasonable assurance level as of the end of the reporting period[465]. - There were no changes in the Company's internal control over financial reporting that materially affected its effectiveness during the period ended September 30, 2025[466].