AGBA (US:AGBA)2026-01-26 21:36Financial Performance - Total revenues decreased by 58.81% from $13,207,000 in Q3 2023 to $5,440,000 in Q3 2024[316]. - Total revenues for the nine months ended September 30, 2024, were US$18.0 million, a decrease of US$23.6 million, or 56.74%, compared to the same period in 2023[341]. - The Distribution Business contributed 84.43% of total revenue for the nine months ended September 30, 2024, with a significant revenue decrease of US$22.4 million, or 59.51%[342]. - Distribution Business revenue fell by 60.42%, from $11,876,000 in 2023 to $4,701,000 in 2024, contributing 86.42% of total revenue[318]. - Life insurance revenue dropped by 64.82%, from $11,147,000 in 2023 to $3,921,000 in 2024[319]. - For the nine months ended September 30, 2024, the company reported a net loss of approximately US$28.8 million, with total revenue declining to approximately US$18.1 million from US$41.7 million in the same period of 2023[384][385]. Operating Expenses - Total operating expenses decreased by 36.36% from $24,550,000 in Q3 2023 to $15,623,000 in Q3 2024[316]. - Total operating expenses decreased by US$34.2 million, or 43.82%, for the nine months ended September 30, 2024, compared to the same period in 2023[340]. - Commission expense decreased by 78.31%, from $8,916,000 in 2023 to $1,934,000 in 2024[323]. - Personnel and benefit expenses decreased by 45.44%, from $6,446,000 in 2023 to $3,517,000 in 2024[328]. - Sales and marketing expense decreased by US$2.5 million, or 80.61%, from US$3.1 million in 2023 to US$0.6 million in 2024[347]. - Legal and professional fees decreased by US$7.0 million, or 56.35%, for the nine months ended September 30, 2024, primarily due to a reduction in consulting fees[352]. - Total other general and administrative expenses increased by US$1.2 million, or 53.48%, for the nine months ended September 30, 2024, mainly due to increased depreciation on right-of-use assets and interest expense on lease liabilities[355]. Cash Flow and Capital - As of September 30, 2024, the cash balance was US$5.1 million, with a working capital deficit of US$40.5 million, an increase of US$18.3 million or 82.21% from December 31, 2023[375]. - Net cash used in operating activities was US$20.7 million for the nine months ended September 30, 2024, compared to US$33.4 million for the same period in 2023[376]. - Net cash used in operating activities for the nine months ended September 30, 2024, was primarily due to the net loss and various decreases in liabilities, totaling US$28.8 million[377]. - Net cash provided by investing activities for the nine months ended September 30, 2024, was US$2.6 million, primarily from proceeds of US$2.2 million from the sale of long-term investments[379]. - Net cash provided by financing activities for the nine months ended September 30, 2024, was US$18.3 million, mainly due to advances from the holding company of US$15.6 million and proceeds from convertible promissory notes of US$23.4 million[381]. - The company intends to raise additional capital through various debt and equity offerings, but there is no assurance that these funds will be available on acceptable terms[387]. Strategic Initiatives - The Company plans to transform JFA into the best medical care institution in Asia by 2025, focusing on technology and data analytics to improve patient care[314]. - The Company aims to expand its distribution footprint in Mainland China and expects sales volumes to return to pre-pandemic levels with the reopening of the border[299]. - The Company is committed to leveraging its strategic assets in life insurance, wealth management, and healthcare to capitalize on emerging opportunities[297]. - The company is committed to purchasing 100% equity interest in Sony Life Financial Advisers Pte. Ltd. for a cash consideration of approximately US$1.88 million, with multiple extensions on the closing date[388]. Compliance and Regulatory - The company has received an exception period from Nasdaq to comply with listing requirements, with deadlines set for December 2025 and February 2026[288]. - Nasdaq granted the company an additional 180 days to regain compliance, which was achieved on May 3, 2024, confirming compliance with Rule 5550(a)(2)[389]. - The company has no off-balance sheet arrangements or guarantees beyond normal business operations[390]. Investments and Business Segments - The Company holds a 4% equity stake in HCMPS, which operates a network of over 800 doctors and provides healthcare schemes for more than 500 corporate clients[310][311]. - The Fintech Business includes investments in Tandem Money Limited ($17.75 million), CurrencyFair Limited ($5.89 million), and Goxip Inc. ($0.31 million) as of September 30, 2024[307]. - The Platform Business offers over 1,800 financial products, including 1,183 insurance products from 80 providers and 1,141 asset management products from 53 fund houses[304]. Losses and Financial Health - Net loss improved by 27.10%, from $12,921,000 in Q3 2023 to $9,419,000 in Q3 2024[316]. - Net loss decreased by US$3.5 million, or 27.10%, for the three months ended September 30, 2024, mainly due to a decrease in operating expenses[339]. - Net foreign exchange gain increased by US$2.0 million, or 227.89%, for the three months ended September 30, 2024, compared to a net foreign exchange loss in the same period of 2023[336]. - Net foreign exchange gain increased by US$0.8 million, or 1,914.63%, for the nine months ended September 30, 2024, due to a strong Sterling exchange rate[358]. - The company has an accumulated deficit of approximately US$94.4 million as of September 30, 2024[384].