Financial Performance - Revenues decreased by $2,931,191, or 37%, to approximately $4,983,868 for the three months ended September 30, 2025, compared to $7,915,059 for the same period in 2024[148] - Cost of revenues decreased by $2,191,576, or 34%, to approximately $4,241,681 for the three months ended September 30, 2025, from approximately $6,433,257 for the same period in 2024[149] - Gross profit decreased by $739,615, or 50%, to $742,187 for the three months ended September 30, 2025, from $1,481,802 for the same period in 2024[150] - Revenues decreased by $1,386,066, or 8.7%, to approximately $14,582,669 for the nine months ended September 30, 2025, primarily due to a decline in new contracts and project commencements[159] - Gross profit decreased by $753,144, or 23.3%, to $2,469,088 for the nine months ended September 30, 2025, attributed to the decrease in revenue outpacing the reduction in cost of revenue[161] - Net income decreased by $3,171,601, or 1,378%, to $(3,401,659) for the nine months ended September 30, 2025, primarily due to increased general and administrative expenses[168] Expenses - Selling and marketing expenses decreased by $8,740, or 31.3%, from $27,917 in the three months ended September 30, 2024, to $19,177 in the same period of 2025[151] - General and administrative expenses increased by approximately $5,416, or 31%, to approximately $1,750,138 for the three months ended September 30, 2025, from approximately $1,744,722 for the same period in 2024[152] - General and administrative expenses increased by approximately $1,826,616, or 54%, to approximately $5,193,108 for the nine months ended September 30, 2025, mainly due to investments in talent acquisition and administrative infrastructure[164] - Depreciation and amortization expenses decreased by $19,763, or 23.8%, to $62,978 for the three months ended September 30, 2025, from $82,741 for the same period in 2024[153] Cash Flow - Net cash provided by operating activities was $(2,832,320) for the nine months ended September 30, 2025, reflecting a 168% decrease compared to $4,144,937 in the same period of 2024[170] - Net cash used in investing activities increased to $(1,071,350) for the nine months ended September 30, 2025, compared to $(750,614) in the same period of 2024, due to strategic investments in long-term assets[172] - Net cash provided by financing activities was $7,805,286 for the nine months ended September 30, 2025, compared to net cash used of $(862,660) in the same period of 2024, primarily from IPO proceeds[173] - Cash at the end of the period increased to approximately $6,597,799 as of September 30, 2025, compared to $3,768,407 at the end of the same period in 2024[169] - The company had positive working capital of $9,015,995 as of September 30, 2025, with current assets of approximately $11,326,032 and current liabilities of approximately $2,310,037[176] - Interest income increased by $29,363, or 19%, to $180,171 for the nine months ended September 30, 2025, due to higher interest rates on bank balances[167] Business Strategy - The company intends to focus its business in states with increased population and GDP growth, such as Florida, Texas, and South Carolina[132] - The company has begun to expand its real estate development segment by being the general contractor on low-rise apartment and townhome development projects[137] - The company completed its initial public offering (IPO) on March 5, 2025, issuing 1,250,000 units of Class A common stock, generating net proceeds of $4,667,636[142] - JFB holds a 19.5% ownership interest in CM OB Hotel Owner, LLC, with an investment of $1,000,000 made on April 24, 2025, for the development of a hotel[143] Accounting Policies - The Company recognizes revenue from contracts with customers based on the performance obligations satisfied over time, in accordance with ASC 606[190] - Contract assets represent revenues recognized in excess of amounts billed on contracts in progress, while contract liabilities represent billings in excess of revenues recognized[194] - Basic Earnings Per Share (EPS) is calculated using the two-class method, dividing net earnings available to common shareholders by the weighted average number of common shares outstanding[197] - Diluted EPS is computed under both the two-class method and the treasury stock method, reporting the more dilutive result[198] - The Company adopted ASU 2023-07 on January 1, 2024, with no material impact on its consolidated financial statements[206] - ASU 2023-09, effective for annual periods beginning after December 15, 2024, enhances income tax disclosure requirements[207] - The Company is currently assessing the impact of ASU 2023-09 on its income tax disclosures and reporting requirements[208] - The Company discloses all material related party transactions in accordance with ASC 850 and SEC Regulation S-X[205] - The Company identifies performance obligations as distinct promises to transfer goods or services to a customer, ensuring clarity in revenue recognition[192] - The Company applies the cost-to-cost method to measure progress toward completion of contracts, estimating total contract costs[193]
JFB Construction Holdings-A(JFB) - 2025 Q3 - Quarterly Report