Greenpro Capital(US:GRNQ)2024-05-13 10:20Revenue Performance - Total revenue for Q1 2024 was $658,399, an increase of 3.2% from $637,735 in Q1 2023, primarily due to higher service business revenue [124]. - Revenue from business services was $633,792 in Q1 2024, up from $615,604 in Q1 2023, reflecting increased non-listing advisory services [125]. - Rental revenue increased to $24,607 in Q1 2024 from $22,131 in Q1 2023, indicating stable rental income from properties in Malaysia and Hong Kong [126]. - The company expects steady improvement in revenue from both service and real estate business segments in the coming years [124]. Operating Costs and Losses - Total operating costs and expenses rose to $1,132,112 in Q1 2024 from $969,748 in Q1 2023, leading to a loss from operations of $473,713 compared to $332,013 in the prior year [128]. - General and administrative expenses increased to $1,051,238 in Q1 2024 from $891,564 in Q1 2023, primarily due to a rise in provision for credit losses from $27,062 to $127,763 [130]. - Net loss for Q1 2024 was $272,910, a significant decline from net income of $21,936 in Q1 2023, attributed to the absence of reversals of impairments that occurred in the previous year [132]. Related Party Transactions - Related party service revenue decreased to $194,249 in Q1 2024 from $341,172 in Q1 2023, with Celmonze Wellness Corporation contributing approximately 76% of this revenue [138]. - As of March 31, 2024, amounts due from related parties were $898,947, an increase from $750,860 as of December 31, 2023 [144]. Cash Flow and Financial Position - The company's cash balance decreased to $1,654,243 on March 31, 2024, from $2,223,197 on December 31, 2023, a decrease of $568,954 [153]. - The company incurred a net loss of $272,910 for the three months ended March 31, 2024, with an accumulated deficit of $36,814,612 [154]. - Net cash used in operating activities was $540,043 for the three months ended March 31, 2024, compared to $751,522 for the same period in 2023 [156]. - Net cash provided by investing activities was $176,100 for the three months ended March 31, 2024, primarily from the disposal of other investments [157]. - Net cash used in financing activities was $206,090 for the three months ended March 31, 2024, mainly due to advances to related parties of $205,281 [157]. - The company experienced an increase in accounts receivable of $139,827 and a decrease in accounts payable and accrued liabilities of $273,025 during the three months ended March 31, 2024 [156]. - Non-cash adjustments for the three months ended March 31, 2024, totaled $9,112, including a gain on disposal of investment of $179,980 [156]. Financial Outlook and Concerns - The company is dependent on improving profitability and financial support from major shareholders to continue as a going concern [155]. - The company has raised funds in the past but future financing is uncertain and may come with restrictions or dilution [155]. Revenue Recognition - The company follows ASC 606 for revenue recognition, which requires judgment in identifying contracts and performance obligations [148].