Agape ATP (ATPC) - 2022 Q1 - Quarterly Report

Financial Performance - Revenue for the three months ended March 31, 2022, was $408,960, an increase of $107,180 or approximately 35.5% compared to $301,780 for the same period in 2021[172]. - Gross profit for the three months ended March 31, 2022, was $335,529, representing a gross margin of 82.0%, up from a gross margin of 74.3% in the same period of 2021[174]. - Commission expenses increased to $114,109 for the three months ended March 31, 2022, compared to $88,439 for the same period in 2021, reflecting the rise in revenue[177]. - General and administrative expenses rose to $379,041 for the three months ended March 31, 2022, an increase of $16,895 or approximately 4.7% from $362,146 in 2021[178]. - Net loss decreased to $298,446 for the three months ended March 31, 2022, down from a net loss of $333,650 in the same period of 2021, a reduction of $35,204[181]. - The cost of revenue for the three months ended March 31, 2022, was $73,431, a decrease of $4,160 or approximately 5.4% from $77,591 in 2021[173]. - The company recorded other net expenses of $17,926 for the three months ended March 31, 2022, compared to other income of $14,980 in the same period of 2021, a change of approximately 219.7%[179]. - Net cash used in operating activities for the three months ended March 31, 2022 was $151,122, compared to $127,297 for the same period in 2021[192][193]. - The company reported a net loss of $298,446 for the three months ended March 31, 2022, compared to a net loss of $333,650 for the same period in 2021[192][193]. Capital and Deficits - As of March 31, 2022, the company had working capital of $2,328,550, a decrease from $2,599,281 as of December 31, 2021[188]. - The accumulated deficit increased to $3,557,784 as of March 31, 2022, compared to $3,258,687 as of December 31, 2021[189]. - The company does not have any credit facilities or access to bank credit as of March 31, 2022[195]. - The company has no significant off-balance sheet arrangements that could materially affect its financial condition as of March 31, 2022[196]. Strategic Initiatives - The company aims to expand into Asian markets, focusing on Thailand, Indonesia, and Taiwan, leveraging e-commerce for growth[187]. - The ATP Zeta Health Program aims to promote health and longevity through modern health supplements and proper nutrition, targeting disease prevention[170]. - The company has established a joint venture, DSY Wellness International Sdn. Bhd., to provide complementary health therapies, owning 60% of the equity interest[171]. Revenue Recognition and Projections - The company recognizes revenue from sales of health and wellness products at the point of transfer to customers[200]. - The company is projecting that revenue will revert to pre-pandemic levels to cover operating expenses[189]. Currency and Financing - There were no financing activities for the three months ended March 31, 2022, while financing activities in 2021 included a payment of deferred offering cost of $6,423[194]. - The company has not hedged exposures to foreign currencies, although it operates primarily in Malaysian Ringgit and incurs expenses in multiple currencies[208].