Financial Performance - The company reported total revenue of $27.5 million for the fiscal year ended December 31, 2024, a decrease from $54.2 million in 2023, reflecting a decline of approximately 49.3%[560] - The net loss for the fiscal year ended December 31, 2024, was $1,138.0 million, compared to a net loss of $49.2 million in 2023, indicating a significant increase in losses[560] - Total revenue for the year ended December 31, 2024, was $27.5 million, a decrease of $26.7 million or 49.30% from $54.2 million in 2023[575] - Financial services revenue decreased by $31.8 million or 58.69% from $54.2 million in 2023 to $22.4 million in 2024, primarily due to economic recession and outward migration in Hong Kong[581] - Annual revenue for 2024 was approximately $27.5 million, a decline from $54.2 million in 2023, resulting in an operating loss of approximately $113.2 million[628] Operating Expenses - Operating expenses for the fiscal year ended December 31, 2024, totaled $140.7 million, compared to $97.3 million in 2023, reflecting an increase of approximately 44.5%[573] - Net loss increased by $1,088.8 million or 2,212.80% for the year ended December 31, 2024, primarily due to increased operating expenses and other expenses[605] - Legal and professional fees increased by $4.1 million or 80.20% for the year ended December 31, 2024, compared to 2023, primarily due to increased US legal counsel fees[595] - Stock-based compensation increased by $64.4 million for the year ended December 31, 2024, compared to 2023, due to the settlement of accrued salaries and amortization of restricted share units[592] - Operating expenses for social media and streaming platforms totaled $4.0 million for the post-acquisition period, representing 2.85% of the Group's total operating expenses[582] Cash Flow and Liquidity - Cash balance as of December 31, 2024, was $3.1 million, insufficient to meet planned obligations for the next 12 months[606] - The net cash used in operating activities for the year ended December 31, 2024 was $29.0 million, an improvement from $42.3 million in 2023[618][620] - Net cash provided by financing activities for the year ended December 31, 2024 was $24.0 million, primarily from advances and proceeds from convertible debts[624] - The company anticipates that cash and equivalents will not be sufficient to fund operations for at least the next 12 months[611][626] - The working capital deficit increased to approximately $271.6 million as of December 31, 2024, up from $22.2 million in 2023, representing a 1,122.49% increase attributed to the acquisition of Triller Corp.[617] Business Operations and Strategy - The company has established over 436 million Consumer Accounts on its Technology Platform, with a proactive approach to purging over 200 million duplicate and bot accounts[558] - The financial services business generated $22.4 million in commission revenue for the year ended December 31, 2024, capturing only a small portion of the total revenues generated by associated financial advisors[569] - The company operates a leading wealth management and healthcare institution in Hong Kong, servicing over 400,000 individual and corporate customers[561] - The financial advisor business, operating under the brand name Focus, had approximately 1,231 financial advisors organized into 26 sales teams as of December 31, 2024[565] - The company plans to expand its distribution footprint and explore partnerships in Mainland China, anticipating a return to pre-pandemic sales volumes[570] Future Outlook - The company expects to generate profitable operating results within the foreseeable future, contingent on accessing sales capabilities from its financial services business[632] - Future capital requirements will depend on revenue growth, marketing spending, and new product introductions, with potential dilution of stockholder ownership if additional equity is raised[612] - Management is exploring funding alternatives, including borrowings and raising funds through public equity or debt markets, to support business development activities[630] Goodwill and Warrants - Goodwill is reviewed for impairment at least annually or when a triggering event occurs, with the impairment loss representing the excess of the carrying amount over the fair value of the reporting unit[644] - Annual impairment tests for goodwill are performed in the fourth quarter, assessing qualitative factors first to determine if a quantitative test is necessary[645] - Warrants are classified as either equity or liability based on specific terms and applicable guidance, with equity-classified warrants recorded at fair value and not remeasured[647] - Liability-classified warrants are recorded at initial fair value and remeasured at each reporting date, with changes recognized as non-cash gains or losses[649] - Transaction costs allocated to warrants classified as liabilities are immediately expensed in the consolidated statements of operations and comprehensive loss[649] Market Context - The global digital content marketplace is projected to reach $577.4 billion in 2023, with the creator economy estimated at $250 billion, potentially growing to $480 billion by 2027[560] - The company does not have to make disclosures under market risk as it qualifies as a smaller reporting company[650]
Triller Group Inc.(ILLR) - 2024 Q4 - Annual Report