Revenue Performance - Total revenue for the six months ended December 31, 2023 was $24.0 million, representing an increase of $12.75 million, or 113%, compared to the same period in the prior year[18]. - Revenue for brand promotion increased by 280% from $5.56 million for the six months ended December 31, 2022 to $21.14 million for the same period in 2023, primarily due to cooperation with key opinion leaders (KOLs) and increased online promotion budgets[21]. - Revenue for event hosting decreased by 8% from $2.18 million in 2022 to $2.01 million in 2023, while revenue for event planning and execution decreased by 88% from $3.14 million to $0.38 million during the same period[20]. - Other revenue for the six months ended December 31, 2023 was $0.48 million, representing an increase of $0.12 million, or 33%, compared to the same period in 2022[22]. - Total revenue for the six months ended December 31, 2023, was $24,008,463, a significant increase from $11,255,771 for the same period in 2022, representing a growth of approximately 113%[51]. - For the six months ended December 31, 2023, total revenue reached $24,008,463, compared to $8,727,933 for the same period in 2022, indicating a significant increase[69]. Cost and Expenses - Cost of revenue for the six months ended December 31, 2023 increased by 63% to $22.23 million from $13.63 million in the previous period[23]. - Cost of brand promotion revenue increased by 318% from $4.74 million in 2022 to $19.83 million in 2023, in line with the growth in revenue for brand promotion[24]. - Total cost of revenue for the six months ended December 31, 2023, was $22,228,049, an increase of 63% compared to $13,627,203 for the same period in 2022[26]. - Operating expenses decreased by 26% to $4,171,201 for the six months ended December 31, 2023, compared to $2,248,683 in the same period of 2022[29]. - General and administrative expenses increased by 119% to $3,934,301 for the six months ended December 31, 2023, primarily due to bad debt allowance and increased R&D expenses[31]. - The company incurred total operating lease expenses of $43,390 for the six months ended December 31, 2023, a decrease from $91,984 in the same period of 2022[108]. Profitability and Loss - Gross profit improved to $1,780,414 in the six months ended December 31, 2023, from a loss of $2,371,432 in the same period of 2022, marking a change of $4,151,846[28]. - The operating loss narrowed to $2,390,000 in the six months ended December 31, 2023, from $4,650,000 in the same period of 2022[33]. - Net loss attributable to equity holders was $2,370,000 for the six months ended December 31, 2023, compared to a net loss of $4,710,000 in the same period of 2022[35]. - The net loss for the six months ended December 31, 2023, was $(648,451), a reduction from $(4,118,522) in the prior year[69]. - For the six months ended December 31, 2023, the company reported a net loss of $2,365,249, compared to a net loss of $4,714,381 for the same period in 2022, indicating a 49.8% improvement in net loss year-over-year[128]. Cash Flow and Liquidity - Cash and cash equivalents as of December 31, 2023, totaled $1,690,000, down from $3,630,000 as of June 30, 2023[36]. - Net cash used in operating activities was $586,093 for the six months ended December 31, 2023, significantly reduced from $5,787,201 in the same period of 2022[40]. - The company experienced a cash outflow of $586,093 from operating activities in 2023, a significant improvement from the outflow of $5,787,201 in 2022[55]. - The company’s cash balance at the end of the period was $192,894, down from $1,095,007 at the beginning of the period, indicating a decrease of approximately 82.4%[130]. Assets and Liabilities - Total current assets increased to $34,978,042 from $32,253,714, reflecting a growth of about 8.4%[47]. - Total current liabilities rose to $16,528,512, up from $12,827,546, marking an increase of approximately 28%[47]. - Total assets reached $41,191,052, compared to $39,045,328, showing an increase of about 5.5%[48]. - As of December 31, 2023, total assets amounted to $31,026,866, while total liabilities were $27,308,942[68]. - Accounts payable increased significantly to $5,556,663 from $2,697,089, representing a growth of about 106%[47]. - The total shareholders' equity decreased to $23,909,742 from $26,178,148, indicating a decline of approximately 8.6%[48]. Shareholder Information - The company conducted a share consolidation on October 27, 2023, converting every 10 Class A and Class B ordinary shares into one ordinary share, impacting all share numbers retrospectively[113]. - The company issued 1,500,000 Class A ordinary shares at a price of $2.86 per share, raising a total of $4,290,000 through subscription agreements on March 19, 2024[118]. - The company’s total shareholders' equity decreased from $26,735,296 as of June 30, 2023, to $24,603,915 as of December 31, 2023, a decline of approximately 8.0%[125]. Future Outlook - The company expects the adverse effects of the COVID-19 pandemic on its business operations to gradually phase out in the following years[15]. - The company expects to obtain a new credit line of not less than RMB8 million (approximately $1.1 million) in 2024[37].
Pop Culture (CPOP) - 2024 Q2 - Quarterly Report