Cuentas(CUEN) - 2025 Q1 - Quarterly Report

Financial Performance - Total revenue for the three months ended March 31, 2025, was $639,000, compared to $639,000 for the same period in 2024, indicating no growth [81]. - Cost of revenues for the three months ended March 31, 2025, was $0, a significant decrease from $708,000 in the same period in 2024 [82]. - Operating expenses decreased to $283,000 for the three months ended March 31, 2025, down from $772,000 in the same period in 2024, representing a net decrease of $489,000 [85]. - The net loss for the three-month period ended March 31, 2025, was $399,000, compared to a net loss of $445,000 for the same period in 2024 [89]. - For the three months ended March 31, 2025, the Company reported a net cash used in operating activities of $15,000, with a net loss of $399,000 [93]. - In the same period for 2024, the net cash used in operating activities was $310,000, with a net loss of $445,000 [94]. Assets and Liabilities - As of March 31, 2025, the company had total current assets of $1,096,000 and total current liabilities of $4,647,000, resulting in a working capital deficit of $3,551,000 [91]. - The accumulated deficit as of March 31, 2025, was approximately $55,654,000, raising substantial doubt about the company's ability to continue as a going concern [92]. - As of March 31, 2025, the Company had no off-balance sheet arrangements [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 [74]. - The company entered into two Convertible Note Purchase Agreements with World Mobile Group Ltd. for an aggregate principal amount of $385,000 [75]. - The company holds a 51% membership interest in World Mobile LLC, consolidating the entity for financial reporting purposes [78]. - Financing activities for Q1 2024 resulted in net cash received of $133,000, primarily from a short-term loan of $150,000 [96]. - On September 22, 2025, and October 1, 2025, the Company entered into Convertible Note Purchase Agreements with World Mobile Group Ltd. for an aggregate principal of $385,000 [97]. - The first agreement provided for $260,000 of notes, while the second provided for $125,000 of notes [97]. Market Focus and Management Outlook - The company aims to target the Hispanic Latino population, which was over 62 million according to the 2020 U.S. Census, to expand its fintech solutions [80]. - Management believes that inflation and seasonality have not materially affected operations and do not expect future impacts [98]. - Recently issued accounting standards are not expected to have a material impact on the Company's consolidated financial statements [102]. Cash Flow and Non-Cash Expenses - The Company had no investing activities for the three months ended March 31, 2025 or 2024 [95]. - Non-cash expenses for Q1 2024 included share-based compensation of $120,000, while changes in operating assets and liabilities utilized cash of $422,000 [94].