Financial 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]. - Net loss for Q3 2024 was $9,419,000, a decrease of 27.10% compared to a net loss of $12,921,000 in Q3 2023[316]. - 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]. Revenue Breakdown - 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 decreased by 64.82%, from $11,147,000 in 2023 to $3,921,000 in 2024[319]. - The Company generated $15.21 million in commission from the Distribution Business for the nine months ended September 30, 2024[298]. Operating Expenses - Total operating expenses decreased by 36.36% from $24,550,000 in Q3 2023 to $15,623,000 in Q3 2024[316]. - Commission expense dropped 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]. 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[365][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 provided by investing activities for the nine months ended September 30, 2024, was US$2.6 million, primarily 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 and proceeds from convertible promissory notes[381]. - The company intends to raise additional capital through various debt and equity offerings to support its operations and growth strategy[387]. Strategic Initiatives - The Company aims to transform JFA into the best medical care institution in Asia by 2025, focusing on technology and data analytics to enhance customer care[314]. - The Company plans to expand its distribution footprint in Mainland China and expects sales volumes to return to pre-pandemic levels with the reopening of the Mainland 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 Governance - 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 transactions or guarantees beyond normal business operations[390].
Triller Group Inc.(ILLR) - 2025 Q1 - Quarterly Report