Greenpro Capital(GRNQ) - 2023 Q3 - Quarterly Report

Revenue Performance - Total revenue for Q3 2023 was $1,070,972, a decrease of 18% from $1,306,439 in Q3 2022, primarily due to no real estate sales in 2023 compared to $652,788 from two units sold in 2022[138] - Revenue from business services increased to $1,043,360 in Q3 2023 from $628,295 in Q3 2022, driven by completed listing service obligations[139] - Rental revenue for Q3 2023 was $27,612, up from $25,356 in Q3 2022, indicating stable rental income[141] - For the nine months ended September 30, 2023, total revenue was $2,309,592, down from $2,690,227 in the same period of 2022, again due to no real estate sales in 2023[149] - Revenue from business services for the nine months ended September 30, 2023, was $2,239,354, an increase from $1,760,880 in 2022, reflecting growth in consulting and advisory services[150] - Related party service revenue for the nine months ended September 30, 2023, was $1,232,526, an increase from $548,602 in the same period of 2022[164] Operating Costs and Expenses - Total operating costs and expenses decreased to $1,207,517 in Q3 2023 from $1,536,785 in Q3 2022, contributing to a reduced loss from operations of $136,545 compared to $230,346 in the prior year[142] - General and administrative expenses for the nine months ended September 30, 2023, were $2,686,846, down from $2,910,231 in 2022, indicating cost management efforts[155] Net Income and Loss - Net loss for Q3 2023 was $120,994, significantly improved from a net loss of $452,805 in Q3 2022, mainly due to the absence of impairment charges in 2023[147] - Net income for the nine months ended September 30, 2023, was $6,563,458, a turnaround from a net loss of $2,414,835 in the same period of 2022, primarily due to a reversal of impairment[158] - The company recorded a net income of $6,563,458 for the nine months ended September 30, 2023, with non-cash adjustments totaling $7,105,607[177] Cash Flow and Financial Position - As of September 30, 2023, the company's cash balance was $2,559,285, a decrease of $1,352,250 from $3,911,535 on December 31, 2022[174] - For the nine months ended September 30, 2023, net cash used in operating activities was $1,293,574, compared to $2,157,380 for the same period in 2022[177] - Cash used in financing activities for the nine months ended September 30, 2023, was $66,763, compared to $416,382 for the same period in 2022[179] - The company incurred an accumulated deficit of $31,041,402 as of September 30, 2023, raising substantial doubt about its ability to continue as a going concern[175] - The company has no significant off-balance sheet arrangements that could materially affect its financial condition as of September 30, 2023[162] Future Commitments - The future minimum rental payments under a non-cancellable operating lease in Hong Kong are approximately $141,508, due in 2023, 2024, and 2025[163] - Future minimum lease payments under a finance lease agreement for a motor vehicle in Malaysia are approximately $20,476, due from 2023 to 2028[163] Impairment and Adjustments - The company recorded a reversal of impairment of related party investment of $6,882,000 for the nine months ended September 30, 2023[165] - The company expects revenue from both service and real estate businesses to improve as the impact of the COVID-19 pandemic abates[138]