EUDA Health (US:EUDA)2023-07-30 16:00Revenue Performance - Total revenues decreased by approximately $1.0 million, or 36.3%, to approximately $1.7 million for the three months ended March 31, 2023, compared to approximately $2.7 million for the same period in 2022[194]. - Revenues from medical services decreased by approximately $0.8 million, or 49.2%, to approximately $0.8 million for the three months ended March 31, 2023, from approximately $1.6 million for the same period in 2022[196]. - Revenues from property management services decreased by approximately $0.2 million, or 17.7%, to approximately $0.9 million for the three months ended March 31, 2023, compared to approximately $1.1 million for the same period in 2022[199]. - The total cost of revenues decreased by approximately $0.1 million, or 7.2%, to approximately $1.3 million for the three months ended March 31, 2023, from approximately $1.4 million for the same period in 2022[201]. Profitability and Loss - Gross profit for the three months ended March 31, 2023, was approximately $403,598, a decrease of 68.3% compared to $1,271,246 for the same period in 2022[193]. - Gross profit decreased by approximately $0.9 million, or 68.3%, to approximately $0.4 million for the three months ended March 31, 2023, from approximately $1.3 million for the same period in 2022[204]. - The gross profit percentage for medical services decreased to 23.3% for the three months ended March 31, 2023, from 64.5% for the same period in 2022, a decrease of 41.2%[206]. - Net loss attributable to EUDA was approximately $2,414,645 for the three months ended March 31, 2023, compared to a net income of $222,585 for the same period in 2022, representing a change of 1,184.8%[193]. - The net loss was approximately $2.4 million for the three months ended March 31, 2023, compared to a net income of approximately $0.2 million for the same period in 2022[216]. Expenses - General and administrative expenses increased by 139.5% to approximately $1,975,607 for the three months ended March 31, 2023, compared to $824,896 for the same period in 2022[193]. - Operating expenses increased by approximately $1.2 million, or 99.0%, to approximately $2.4 million for the three months ended March 31, 2023, from approximately $1.2 million for the same period in 2022[208]. Client and Service Usage - The average usage of specialty care services per corporate client decreased from approximately $3,700 for the three months ended March 31, 2022, to approximately $2,140 for the same period in 2023[196]. - The number of corporate clients decreased from approximately 400 for the three months ended March 31, 2022, to approximately 370 for the same period in 2023 due to increased market competition[197]. Financial Position - As of March 31, 2023, the company had negative working capital of approximately $6.5 million and cash of approximately $0.8 million[217]. - As of March 31, 2023, total contractual obligations amounted to $6,036,273, with short-term loans and other payables being significant components[232]. - The fair value of prepaid forward purchase liabilities increased to $20,853,545 as of March 31, 2023, from $20,321,053 as of December 31, 2022[243]. Cash Flow - For the three months ended March 31, 2023, net cash used in operating activities was approximately $0.5 million, compared to $0.3 million for the same period in 2022, indicating an increase in cash outflow[226][227]. - Net cash provided by financing activities was approximately $0.5 million for the three months ended March 31, 2023, up from $0.3 million in the same period in 2022[229][230]. - The company did not incur any cash flow from investing activities for the three months ended March 31, 2023, compared to a cash outflow of approximately $29,000 in the same period in 2022[228]. Strategic Initiatives - The company aims to expand its operations across Southeast Asia, leveraging its proprietary platform for healthcare services[176]. - The company has invested in AI technology to enhance patient engagement and improve care coordination[191]. - The business combination with EUDA Health Limited was completed on November 17, 2022, resulting in EUDA becoming a wholly owned subsidiary[186]. Financing and Capital Structure - The company is in active discussions regarding a potential financing transaction through the issuance of convertible notes, aiming for completion in the fourth quarter of 2023 to improve liquidity[219]. - The company issued and sold 940,000 ordinary shares at $1.00 per share, raising a total of $940,000 in a private placement[221]. Tax and Accounting - The company recognizes uncertain tax positions as benefits only if they are "more likely than not" to be sustained in a tax examination[250]. - Deferred tax assets are reduced by a valuation allowance when it is more likely than not that some portion will not be utilized[249]. - Current income taxes are provided in accordance with the laws of relevant tax authorities[249]. - The company is classified as an "emerging growth company," allowing it to take advantage of certain exemptions from various reporting requirements[235]. - The company is classified as a smaller reporting company and is not required to provide certain market risk disclosures[252]. - Recent accounting standards are discussed in Note 3 of the unaudited condensed consolidated financial statements[251].