AGBA (AGBA) - 2025 Q3 - Quarterly Report

Financial Performance - For the nine months ended September 30, 2024, the Company generated $15.21 million in commission from the Distribution Business[298]. - Total revenues for the three months ended September 30, 2025, were $5,440,000, a decrease of $7,767,000 or 58.81% compared to $13,207,000 in 2024[315]. - 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[340]. - 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%[341]. - The Platform Business contributed $739,000 in revenue, a decrease of $592,000 or 44.48% from $1,331,000 in 2024[316]. - For the nine months ended September 30, 2025, the company reported a net loss of approximately US$28.8 million, with an accumulated deficit of approximately US$94.4 million[383]. Business Segments - The Distribution Business includes a leading financial advisor business with approximately 562 financial advisors organized into 10 sales teams as of September 30, 2024[292]. - The Platform Business operates under the "OnePlatform" brand, offering over 1,800 financial products from 80 insurance providers and 53 asset management fund houses[304]. - The Fintech Business holds 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 Healthcare Business, through a 4% stake in HCMPS, serves over 500 corporate clients and more than 300,000 scheme members[310]. - JFA operates a network of over 700 healthcare service providers, recording over 380,000 outpatient and inpatient visits annually[312]. Operational Changes - Significant investments have been made to develop the financial advisors salesforce and upgrade supporting infrastructure[294]. - 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 experience[314]. - The Company plans to expand its distribution footprint in Mainland China, anticipating a return to pre-pandemic sales volumes with the reopening of the border[299]. Expenses and Losses - Total operating expenses decreased by $8,927,000 or 36.36% to $15,623,000 in 2025 from $24,550,000 in 2024[315]. - Commission expense dropped to $1,934,000, a decrease of $6,982,000 or 78.31% from $8,916,000 in 2024, reflecting the decline in revenue from the Distribution Business[322]. - Personnel and benefit expenses decreased by $2,929,000 or 45.44% to $3,517,000 in 2025 from $6,446,000 in 2024, attributed to headcount reductions[327]. - Legal and professional fees totaled $2,844,000, down $687,000 or 19.46% from $3,531,000 in 2024, mainly due to reduced consulting fees[329]. - The net loss for the three months ended September 30, 2025, was $9,419,000, a decrease of $3,502,000 or 27.10% compared to $12,921,000 in 2024[315]. Cash Flow and Capital - Net cash used in operating activities was US$20.7 million for the nine months ended September 30, 2025, compared to US$33.4 million for the same period in 2024[375]. - The working capital deficit increased by US$18.3 million, or 82.21%, to approximately US$40.5 million as of September 30, 2025, mainly due to the issuance of convertible promissory notes[374]. - The company expects to continue operating losses as it invests in business growth, with cash and equivalents projected to be insufficient for operations for at least the next 12 months[369]. - The management estimates that currently available cash will not be sufficient to meet the company's planned obligations for the next 12 months[382]. - 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[386]. Compliance and Financial Arrangements - The company has regained compliance with Nasdaq listing requirements as of May 3, 2024, after the closing bid price of its common stocks exceeded US$1.00 for a minimum of 10 consecutive trading days[388]. - The company has not engaged in any off-balance sheet financial arrangements that could materially affect its financial condition[389].