FingerMotion(FNGR) - 2026 Q3 - Quarterly Report

Financial Performance - Total revenue for the nine months ended November 30, 2025, was $22,902,695, a decrease of 9.1% compared to $25,366,825 for the same period in 2024[13] - Gross profit for the nine months ended November 30, 2025, was $454,364, down from $1,426,487 in 2024, reflecting a gross margin decline[13] - Net loss attributable to the Company's stockholders for the nine months ended November 30, 2025, was $5,219,763, compared to a net loss of $5,004,934 in 2024, indicating a 4.3% increase in losses[13] - The company reported a comprehensive loss of $4,827,305 for the nine months ended November 30, 2025, compared to $5,103,319 in 2024, reflecting a slight improvement[13] - For the nine months ended November 30, 2025, FingerMotion, Inc. reported a net loss of $5,253,897 compared to a net loss of $5,009,095 for the same period in 2024, indicating an increase in losses[18] - The net loss for the nine months ended November 30, 2025, was $5,253,897, compared to a net loss of $5,009,095 for the same period in 2024[76] Assets and Liabilities - Total current assets increased to $50,953,944 as of November 30, 2025, from $42,037,360 as of February 28, 2025, representing a growth of 21.5%[11] - Total liabilities rose to $43,713,994 as of November 30, 2025, compared to $35,161,495 as of February 28, 2025, marking an increase of 24.3%[11] - Cash and cash equivalents decreased significantly to $24,214 from $1,128,135, indicating a liquidity challenge[11] - Accounts receivable increased to $44,247,007 as of November 30, 2025, from $32,659,437 as of February 28, 2025, showing a rise of 35.5%[11] - The company reported an accumulated deficit of $39,407,147 as of November 30, 2025, compared to $34,187,384 as of February 28, 2025[76] Equity and Shares - The weighted average common shares outstanding increased to 59,050,988 for the nine months ended November 30, 2025, compared to 52,898,259 in 2024, reflecting a dilution effect[13] - The company issued common stock for professional services amounting to $172,105 during the nine months ended November 30, 2025[18] - FingerMotion, Inc. reported a total of $3,321,900 in proceeds from the issuance of common stock during the nine months ended November 30, 2025[18] - The company issued 51,296 shares of common stock under a Sales Agreement from October 23, 2025, to November 30, 2025, generating gross cash proceeds of $80,087[103] - As of November 30, 2025, the total number of outstanding shares was 61,217,225, with no preferred shares issued[104] Research and Development - Research and development expenses for the nine months ended November 30, 2025, were $335,402, down from $506,001 in 2024, indicating a reduction in investment in innovation[13] - Research and development expenses for the Company include costs related to the integration of its Mobile Integrated Command and Communication Platform into emergency response vehicles[67] VIE and Subsidiaries - The Company utilizes variable interest entities (VIEs) to maintain operational control over certain subsidiaries in compliance with PRC regulations, ensuring consolidation of their financial results[24][34] - The VIE Agreements allow the Company to consolidate the financial results of JiuGe Technology in its financial statements[161] - JiuGe Technology has established contracts with China Unicom and China Mobile to provide mobile data services in key provinces, enhancing service offerings and potentially expanding into additional provinces[164] - The total assets of the VIE's subsidiaries increased to $46,033,705 as of November 30, 2025, from $34,671,823 as of February 28, 2025, representing a growth of about 32.7%[38] Loans and Financing - On June 1, 2024, Finger Motion Company Limited entered into a loan agreement for a short-term loan facility of SGD$370,000 with an interest rate of 1.67% per month[135] - The Company repaid two short-term loans totaling SGD$620,000 on February 14, 2025[138] - A short-term loan of SGD$500,000 was repaid on July 21, 2025[139] - Another short-term loan of SGD$500,000 was repaid on August 1, 2025, with an extension of the final tranche of SGD$500,000 at an increased interest rate of 2% per month[140] Revenue Recognition and Accounting - The Company recognizes revenue when specific conditions are met, including the provision of services and the probability of fee collection[65] - The Company is currently evaluating the impact of recently issued accounting standards on its consolidated financial statements and related disclosures[73] Operational Developments - The Company expanded its telecommunications product offerings, including mobile payment services and a new Mobile Device Protection product as part of subscription plans for 5G devices[187] - The RCS platform development aims to enhance user experience on 5G infrastructure, with ongoing discussions for necessary approvals before launch[189] - The Company launched the "Sapientus" big data insights platform in July 2020, targeting the insurance and financial services industries with data-driven solutions[190] - The C2 Platform for public safety agencies has seen advancements, with pilot deployments and partnerships established for real-time data sharing and situational awareness[198] - The DaGe platform for automotive services expanded its network of service providers and EV charging stations, contributing to revenue growth through increased transaction volumes[201] Risks and Compliance - The company is subject to risks regarding the validity of the VIE Agreements under Chinese law, which could impact operations and share value[174] - The Company has not been required to obtain permissions from Chinese authorities for its operations as of the date of the report[157]