VS Media(US:VSME)2025-10-31 20:06Revenue Performance - For the six months ended June 30, 2025, the company reported revenues of $3,259,037, a decrease of $764,956 or 19.01% from $4,023,993 in the same period of 2024[9]. - Campaign-Based Marketing Services revenue increased slightly by 1.21% to $2,187,128, while Optimization-Based Marketing Services revenue decreased by 41.15% to $775,821, and Marketing Services from Social Media Platforms decreased by 28.87% to $296,088[10][11][12]. - Revenue from Social Commerce was nil for the six months ended June 30, 2025, compared to $128,411 in 2024, due to the absence of organized events[13]. - The overall revenue generated in HK SAR decreased by 38.53%, while revenue in Taiwan increased by 26.39% during the same period[15]. - The marketing services segment generated revenue of $3,259,037 for the six months ended June 30, 2025, while the social commerce segment reported no revenue during the same period[169]. Profitability and Loss - Gross profit for the six months ended June 30, 2025 was $884,220, an increase of $271,616 or 44.34% from $612,604 in 2024, with gross margin improving from 15.22% to 27.13%[22]. - The company recorded a net loss of $4,444,519 for the six months ended June 30, 2025, compared to a net loss of $3,338,473 in 2024, reflecting an increase in loss of $1,106,046 or 33.1%[6]. - Net loss for the six months ended June 30, 2025, was $4,444,519, compared to a net loss of $3,338,473 in 2024, indicating a 33.2% increase in losses[85]. - The Company recorded a share of loss from equity investments of $131,484 for the six months ended June 30, 2025, compared to nil in 2024[106]. Operating Expenses - Total operating expenses rose to $5,099,095, an increase of $1,513,309 or 42.20% compared to $3,585,786 in 2024, driven by a significant rise in marketing expenses[23]. - Marketing expenses surged by 362.43% to $957,337, primarily due to amortized prepaid marketing consultancy services[23]. - General and administrative expenses increased by 22.58% to $4,141,758, attributed to higher payroll, welfare expenses, and consultancy costs related to investor relations[24]. Assets and Liabilities - Total assets increased by 84.43% to $13,247,186 as of June 30, 2025, compared to $7,182,658 as of December 31, 2024[28]. - Total liabilities as of June 30, 2025, were $5,572,183, a decrease from $5,902,740 as of December 31, 2024, reflecting a reduction of approximately 5.6%[170]. - Amounts due to related parties increased significantly from $1,491,227 as of December 31, 2024, to $1,748,084 as of June 30, 2025[182]. Cash Flow - Net cash used in operating activities was $2,155,713 for the six months ended June 30, 2025, compared to $1,035,082 for the same period in 2024[37]. - Net cash provided by financing activities amounted to $9,047,303 for the six months ended June 30, 2025, primarily from public offerings[41]. - Cash and cash equivalents increased to $7,401,775 as of June 30, 2025, compared to $552,938 at the end of the previous period[36]. Shareholder Equity - Total shareholders' equity increased to $7,675,003 as of June 30, 2025, compared to $1,279,918 at the end of 2024, reflecting a growth of 500.5%[87]. - The company issued 35,296,063 shares of Class A ordinary shares on May 30, 2025, and 4,774,235 shares on June 6, 2025, raising gross proceeds of $9,176,098 at a price of $0.229 per share[158]. Financial Ratios - Current ratio improved to 1.69 as of June 30, 2025, up from 0.84 as of December 31, 2024, indicating better liquidity[29]. - Working capital turned positive at $3,722,952 as of June 30, 2025, compared to a working deficit of $933,247 as of December 31, 2024, reflecting a variance of 498.92%[30]. Market and Segment Information - The Company operates in two reportable segments: marketing services and social commerce, evaluated based on net sales, gross profit, and income from operations[99][100]. - Management does not believe that its contracts include a significant financing component, as payment periods do not typically exceed one year[119]. Accounting and Compliance - The company recognizes revenue from contracts with customers based on ASC 606, which includes five steps to determine revenue recognition[56][60]. - The Company recognizes revenue from marketing services and social commerce at the point when performance obligations are satisfied, reflecting the transfer of control to customers[114][118]. - The company does not believe that recently issued accounting standards will have a material impact on its financial position or results of operations upon adoption[76].