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Agape ATP Corporation (ATPC-4.00%) has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing includes financial statements for the quarter, showing a decrease in revenue to $331,289 from $355,314 in the same quarter the previous year. Revenue from the Company's network marketing business decreased significantly by $60,075, or approximately 67.3%.
Cost of revenue for the quarter increased to $147,104 from $120,586 in the previous year, resulting in a gross profit of $184,185 compared to $234,728 in the prior year. The decrease in gross margin was due to lower gross margin sustained by the Company's network marketing business.
Operating expenses increased to $732,295 from $551,806, primarily due to higher general and administrative expenses, which rose to $683,819 from $488,519. This increase was attributed to salaries, professional fees, and Nasdaq (NDAQ+0.51%) listing fees.
The company reported a net loss of $524,039 for the quarter, up from $324,735 in the previous year. The increase in net loss was due to higher operating expenses and lower gross profit.
For the nine months ended September 30, 2024, revenue decreased to $962,971 from $1,040,017 in the same period the previous year. The decrease was primarily due to a decline in the Company's network marketing business.
Cost of revenue for the nine months was $381,805, up from $356,875, resulting in a gross profit of $581,166 compared to $683,142 in the prior year. The decrease in gross profit was due to lower margins in the Company's network marketing business.
Operating expenses for the nine months increased to $2,306,400 from $1,813,637, driven by higher general and administrative expenses.
The company reported a net loss of $1,659,449 for the nine months, compared to a net loss of $1,138,259 in the previous year. The increase in net loss was due to higher operating expenses and lower gross profit.
Cash used in operating activities for the nine months was $2,080,879, up from $995,706 in the previous year. Cash used in investing activities was $48,611, and cash used in financing activities was $6,691.
Agape ATP Corporation had a working capital of $2,452,343 as of September 30, 2024. The company acknowledges its dependence on positive operating results and potential financing to meet future obligations.
The filing also details various financial agreements, including lease agreements and related party transactions.
The company identified material weaknesses in its internal controls over financial reporting due to insufficient full-time personnel with appropriate levels of accounting knowledge and experience.
Agape ATP Corporation continues to focus on its health and wellness products and services, with an emphasis on expanding its complementary health therapies and wellness programs.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Agape ATP Corporation quarterly 10-Q report dated November 14, 2024. To report an error, please email earnings@qz.com.