Financial Performance - Total revenues for the six months ended June 30, 2025, were $9,121,016, a decrease of 67.6% compared to $28,154,803 for the same period in 2024[2] - Gross profit for the six months ended June 30, 2025, was $1,136,675, down 56.0% from $2,575,628 in 2024[2] - Net loss attributable to shareholders of Webuy Global Ltd for the six months ended June 30, 2025, was $7,670,525, compared to a net loss of $2,914,293 in 2024, representing a 163.5% increase in loss[2] - The company reported a comprehensive loss of $8,497,892 for the six months ended June 30, 2025, compared to a comprehensive loss of $2,774,671 in 2024, reflecting a 206.1% increase in loss[2] - Basic and diluted loss per ordinary share for the six months ended June 30, 2025, was $(8.02), compared to $(0.05) in 2024[2] - For the six months ended June 30, 2025, the net loss was $7,686,900, compared to a net loss of $2,940,528 for the same period in 2024, indicating a significant increase in losses[8] Assets and Liabilities - Total current assets decreased to $11,327,893 as of June 30, 2025, from $19,367,009 as of December 31, 2024, a decline of 41.5%[1] - Total liabilities decreased to $14,237,474 as of June 30, 2025, from $16,255,176 as of December 31, 2024, a reduction of 12.5%[1] - Cash and cash equivalents significantly decreased to $911,325 as of June 30, 2025, from $4,148,279 as of December 31, 2024, a decline of 78.0%[1] - Total shareholders' equity as of June 30, 2025, was $364,854, down from $6,892,402 as of December 31, 2024, indicating a decrease of 94.7%[1] - Trade receivables decreased to $4,260,324 as of June 30, 2025, from $4,796,638 as of December 31, 2024[52] - The cumulative expected credit loss on notes receivable was recorded at $4,279,839 as of June 30, 2025[56] Cash Flow and Operating Activities - Cash used in operating activities was $2,218,757 for the six months ended June 30, 2025, a decrease from $5,550,605 in the prior year[8] - As of June 30, 2025, the company had cash at the end of the period amounting to $911,325, down from $2,056,233 at the end of the same period in 2024[8] Business Operations and Strategy - The company launched Micky1.0, an AI-powered travel assistant, in December 2024, enhancing its digital travel offerings[11] - The company introduced new product lines, including premium fruit gift series and NMN healthcare products, as part of its strategy to transform into a lifestyle-driven community commerce platform[11] - The company has expanded into the travel sector, introducing group tours and travel packages tailored to post-pandemic demand[11] Future Outlook and Concerns - The company expects improved cash flows and liquidity from future fundraising activities to support business expansion[15] - The company is facing substantial doubt about its ability to continue as a going concern due to ongoing operating losses[15] Revenue Recognition and Compliance - The Company applies a five-step model for revenue recognition, ensuring compliance with ASC Topic 606[41] Shareholder Information - The Company raised a total of $2,009,700 from the first tranche of its public offering by selling 6,930,000 Class A ordinary shares at $0.29 per share[79] - The company has 2,166,666,666 authorized ordinary shares as of June 30, 2025[78] - The company’s authorized share capital was adjusted to 2,166,666,666.666 ordinary shares with a par value of $0.0000462 each[86] Expenses and Costs - Share-based compensation was approximately nil for the six months ended June 30, 2025, compared to $630,000 for the same period in 2024[28] - The Company recorded interest expenses of $316,667 for the six months ended June 30, 2025, compared to $50,163 for the same period in 2024, indicating a substantial increase[76] - Total lease costs increased to $713,911 for the six months ended June 30, 2025, up from $646,706 in the same period of 2024, representing an increase of approximately 10.4%[60] - Operating lease costs for the six months ended June 30, 2025 were $398,567, compared to $148,921 for the same period in 2024, indicating a significant increase[60] Tax and Regulatory Information - The total deferred tax assets, net, were $0 as of June 30, 2025, with tax loss carry forwards of $15,747,576, which cannot be used to offset future profits due to ownership changes[88] - Government grants recognized as other income amounted to $11,429 for the six months ended June 30, 2025, down from $46,235 for the same period in 2024[92] Risk Factors - The company has no significant exposure to credit risk as it does not hold collateral[95] - The company operates in multiple markets, exposing it to foreign currency risk due to fluctuations in exchange rates[96] - There were no pending or threatened claims and litigation as of June 30, 2025[97]
Webuy (WBUY) - 2025 Q2 - Quarterly Report