Aureus Greenway Holdings Inc(US:AGH)2025-11-14 13:15Company 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[139]. - The company is exploring potential regional country club acquisitions to expand its portfolio[143]. Revenue Streams - Revenue streams include golf operations, food and beverage sales, merchandise sales, and ancillary income[140]. - Revenue from annual green fee subscriptions is recognized monthly, with subscriptions being non-refundable[157]. - One-time green fees are fixed and non-refundable, requiring payment prior to service[159]. Revenue Performance - Total revenue for the nine months ended September 30, 2025, decreased by $371,590 or 14% to $2,267,481 compared to $2,639,071 for the same period in 2024[167]. - Revenue from golf operations decreased by $304,035 or 15% to $1,670,616 for the nine months ended September 30, 2025, primarily due to a $292,257 or 17% decrease in one-time green fees[168]. - Revenue from annual membership dues accounted for 10% of total revenue for the nine months ended September 30, 2025, decreasing by $11,778 or 5% due to reduced demand as one golf course was closed since May 2025[169]. - One-time green fees accounted for 64% of total revenue for the nine months ended September 30, 2025, with a 17% decrease attributed to a 14% reduction in total rounds played[170]. - Revenue from sales of food and beverage decreased by $35,043 or 7% to $464,749 for the nine months ended September 30, 2025, driven by an 8% decrease in quantities sold[171]. - Revenue from sales of merchandise decreased by $14,723 or 16% to $76,728 for the nine months ended September 30, 2025, due to a 20% decline in sales of golf-related items[172]. - Ancillary revenue decreased by $17,789 or 24% to $55,388 for the nine months ended September 30, 2025, primarily due to reduced demand for rental services[173]. - Total revenue for the three months ended September 30, 2025, decreased by $100,021 or 23% to $336,878 compared to $436,899 for the same period in 2024[174]. - Revenue from golf operations for the three months ended September 30, 2025, decreased by $69,234 or 23% to $225,808, driven by a $62,618 or 29% decrease in one-time green fees[175]. - Ancillary revenue for the three months ended September 30, 2025, decreased by $10,132 or 55% due to decreased demand for rental services[180]. Operating Expenses - The company's operating expenses increased from $2,533,469 for the nine months ended September 30, 2024 to $5,215,247 for the nine months ended September 30, 2025, representing a 106% increase[183]. - Salaries and benefits rose by $2,145,148 or 415% from the previous year, primarily due to an increase in stock-based compensation and director's fees[186]. - Other general and administrative expenses increased by $569,631 or 88% from $646,711 for the nine months ended September 30, 2024 to $1,216,342 for the same period in 2025[188]. Financial Position - The net loss for the nine months ended September 30, 2025 was $2,548,470, a decrease of $2,603,141 or 4,761% compared to a net income of $54,671 for the same period in 2024[204]. - Current assets increased significantly from $1,125,272 as of December 31, 2024 to $29,967,982 as of September 30, 2025, a change of 2,563%[206]. - Cash and cash equivalents surged from $457,142 to $29,408,326, marking a 6,334% increase[206]. - Total current liabilities decreased from $3,403,513 to $844,525, a reduction of 75%[206]. - The effective tax rate decreased from 54.7% for the nine months ended September 30, 2024 to 1.1% for the same period in 2025, mainly due to overprovision of deferred tax assets[201]. Cash Flow and Financing - The company reported a net cash used in operating activities of approximately $1,498,549 for the nine months ended September 30, 2025, primarily due to a net loss of $2,548,470[220]. - Cash flows used in investing activities amounted to $840,274 for the nine months ended September 30, 2025, primarily for the purchase of property and equipment and advances for property[222]. - Cash provided by financing activities was $31,290,007 during the nine months ended September 30, 2025, mainly from net proceeds of common stock and pre-funded warrants[225]. - The company incurred capital expenditures of $847,052 for the nine months ended September 30, 2025, related to renovations and upgrades of golf courses and facilities[228]. - The company successfully raised a total net proceed of $10.65 million from its initial public offering on February 13, 2025[232]. - The company entered into agreements for the issuance of units consisting of common stock and warrants, resulting in aggregate net proceeds of approximately $23.52 million[233]. - The company believes its current cash levels and operational cash flows will be sufficient to meet anticipated cash needs for at least the next twelve months[234]. Risk Management - The company has not experienced losses on accounts receivable and believes credit risk is not significant due to high creditworthiness of financial institutions[236]. - All accounts receivable as of September 30, 2025, are aged within one year, indicating minimum credit risk[237]. - The company is not exposed to interest rate risk as its financial liabilities carry fixed interest rates[240]. - The company ensures sufficient liquidity to meet obligations for a period of twelve months, focusing on operational efficiency and cost reductions[242]. - The company does not engage in speculative transactions and limits market risk exposure to normal business operations[243]. - The company actively manages credit risk by evaluating customer creditworthiness before conducting business[237]. - The company's ability to continue as a going concern depends on obtaining necessary financing or negotiating terms of existing short-term liabilities[242].