Core Viewpoint - Intelligent Living Application Group Inc. reported a significant decline in revenue and increased net loss for the first half of 2025, primarily due to U.S. tariff increases and a slowdown in the U.S. real estate market [2][12]. Financial Performance - Revenues for the first half of 2025 were $2,305,265, a decrease of 48.5% from $4,473,031 in the same period of 2024 [3][4]. - Gross profit fell to $246,038, down 65.0% from $702,184 in the previous year, resulting in a profit margin of 10.7%, down from 15.7% [8][12]. - The net loss for the first half of 2025 was $5,330,267, an increase of 137.0% from a net loss of $2,249,307 in the same period of 2024 [17][12]. Cost Structure - Cost of goods sold was $1,853,878, representing 80.4% of revenues in 2025, slightly down from 80.6% in 2024 [5]. - Selling and marketing expenses decreased by 68.2% to $186,784, primarily due to reduced marketing efforts in Southeast Asia [10]. - General and administrative expenses surged by 204.5% to $5,424,955, largely due to equity compensation plans [13]. Operational Adjustments - The company suspended the release of smart locks and other IoT applications to save costs amid revenue impacts [2]. - The total products sold were approximately 0.5 million units in the first half of 2025, down from 0.9 million units in the same period of 2024 [4]. Cash Flow and Liquidity - Net cash used in operating activities was $1,739,617 for the first half of 2025, influenced by the net loss and changes in working capital [22]. - Cash and cash equivalents decreased to $793,969 as of June 30, 2025, from $1,280,911 at the end of 2024 [20]. Future Outlook - The company aims to enhance profit margins by negotiating volume rebates for raw materials and optimizing its product mix [9]. - Management is actively seeking investment from potential investors to raise cash for operations and respond to market conditions [21].