Cuentas(CUEN) - 2025 Q2 - Quarterly Report

Revenue Performance - Total revenue for the six months ended June 30, 2024, was $672,000, with no revenue reported in Q1 2025 due to funding issues[78] - Total revenue for the three months ended June 30, 2025, was $0, compared to $34,000 for the same period in 2024, indicating a decline of 100%[87] - Operating revenue from telecommunications services was $0 for the six months ended June 30, 2025, compared to $26,000 in 2024[78] Operating Expenses - Operating expenses decreased to $603,000 for the six months ended June 30, 2025, down from $1,262,000 in the same period of 2024, representing a net decrease of $659,000[81] - Operating expenses decreased to $320,000 in Q2 2025 from $488,000 in Q2 2024, reflecting a reduction of approximately 34.5%[91] Net Income/Loss - The net loss for the six-month period ended June 30, 2025, was $21,000, a significant reduction compared to a net loss of $2,517,000 for the same period in 2024[86] - The company reported a net income of $378,000 for the three months ended June 30, 2025, a significant improvement compared to a net loss of $2,072,000 for the same period in 2024[95] Cash Flow - The company generated net cash used in operating activities of $966,000 for the six months ended June 30, 2025, compared to $520,000 for the same period in 2024[101][102] - Investment activities resulted in net cash provided of $825,000 for the six months ended June 30, 2025, compared to $50,000 in 2024[103] - Financing activities for the six months ended June 30, 2025, resulted in net cash received of $127,000, primarily from short-term loans[104] Assets and Liabilities - As of June 30, 2025, total current assets were $280,000, with a working capital deficit of $3,154,000 due to total current liabilities of $3,434,000[98] - Cash and cash equivalents as of June 30, 2025, were approximately $1,000, with an accumulated deficit of approximately $58,276,000[100] Investments and Agreements - The company 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[71] - The company made equity investments in real estate projects in Florida under Cuentas Casa to provide affordable housing alternatives[71] - The company entered into two Convertible Note Purchase Agreements with World Mobile Group Ltd. for a total of $385,000[72] - The company entered into two Convertible Note Purchase Agreements with World Mobile Group Ltd. for an aggregate principal of $385,000, which are convertible into shares of the company's common stock[105] Future Plans - The company expects to be in compliance with SEC reporting by early December 2025 and plans to reopen mobile services in December 2025 targeting known vertical markets[82] - The company holds a 51% membership interest in World Mobile LLC, consolidating the entity for financial reporting purposes[75]