Cuentas(US:CUEN)2025-11-28 20:23Financial Performance - Total revenue for the nine months ended September 30, 2025 was $0, compared to $676,000 for the same period in 2024, indicating a significant decline [77]. - The net loss for the nine months ended September 30, 2025 was $317,000, a substantial improvement compared to a net loss of $2,916,000 for the same period in 2024 [84]. - Other income totaled $582,000 during the nine months ended September 30, 2025, contrasting with other expenses of $1,272,000 in the same period of 2024 [83]. - The company incurred a net loss of $296,000 for the three-month period ended September 30, 2025, compared to a net loss of $399,000 for the same period in 2024, reflecting a decrease in selling and general administrative expenses [91]. - The gross loss for the three months ended September 30, 2025 was $7, compared to a loss of $7 for digital products in the same period of 2024 [87]. Operating Expenses - Operating expenses decreased to $899,000 for the nine months ended September 30, 2025, down from $1,561,000 in the same period of 2024, representing a reduction of approximately 42.4% [81]. - Operating expenses for the three months ended September 30, 2025 totaled $296,000, slightly down from $299,000 in the same period of 2024 [88]. Assets and Liabilities - As of September 30, 2025, the company had total current assets of $271,000, including $0 in cash, and total current liabilities of $3,708,000, resulting in a working capital deficit of $3,437,000 [94]. - The company reported an accumulated deficit of approximately $58,572,000 as of September 30, 2025, raising substantial doubt about its ability to continue as a going concern [95]. Cash Flow - For the nine months ended September 30, 2025, the company had net cash used in operating activities of $967,000, which included a net loss of $317,000 [96]. - The company's investment activities for the nine months ended September 30, 2025, resulted in net cash provided of $825,000 due to proceeds from the sale of investments in unconsolidated entities [98]. - The company reported net cash used in operating activities of $592,000 for the nine months ended September 30, 2024, which included a net loss of $2,916,000 [97]. - The company's financing activities for the six months ended June 30, 2025, resulted in net cash received of $127,000, primarily from short-term loans [99]. Investments and Financing - The company made equity investments in real estate projects in Florida under the name Cuentas Casa, aiming to provide affordable housing alternatives [70]. - Cuentas sold its 63.9% equity interest in Brooksville Property for $800,000, originally purchased for $5.05 million, to settle debts totaling approximately $1.132 million [70]. - The company entered into two Convertible Note Purchase Agreements with World Mobile Group Ltd. for an aggregate principal of $385,000, with the first agreement providing for $260,000 and the second for $125,000 [100]. - The company plans to secure additional financing sources, including the sale of Common Stock, to support operations and complete the development of its new portal and financial technology capabilities [95]. Market Focus - The company holds a 51% membership interest in World Mobile LLC, consolidating the entity for financial reporting purposes [74]. - Cuentas aims to target the Hispanic and Latino demographic, which comprises over 62 million individuals in the U.S., to expand its fintech solutions [76]. Management Outlook - Management does not expect inflation or seasonality to materially impact operations in the future [101].