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TEN Holdings Inc. (XHLD-14.68%) has submitted its 10-K filing for the fiscal year ended December 31, 2024.
The report highlights a decrease in total revenue to $3.5 million from $3.7 million in the previous year. The decline is attributed to the non-recurrence of certain events that took place in 2023.
Cost of revenue increased to $652,000 from $555,000, primarily due to higher outsourced labor costs associated with physical events and a significant hybrid event.
The company reported a net loss of $2.968 million for the year, compared to a net loss of $1.688 million in 2023. This increase in loss is mainly due to higher selling, general, and administrative expenses, which rose by $648,000.
TEN Holdings Inc. raised $8.9 million in net proceeds from its initial public offering in February 2025, which it plans to use for marketing, sales efforts, and general corporate purposes.
The company has identified a material weakness in its internal controls over financial reporting, which it plans to address in the coming year.
TEN Holdings Inc. continues to focus on expanding its customer base and enhancing its Xyvid Pro Platform, with plans to integrate more advanced technologies such as artificial intelligence.
The company is dependent on a significant customer that accounted for approximately 64.6% of its total revenue in 2024, highlighting a concentration risk.
TEN Holdings Inc. is also reliant on short-term loans from related parties to support its working capital needs, with outstanding loans totaling $5.617 million as of December 31, 2024.
The filing outlines the company's growth strategies, which include increasing business growth efforts, enhancing technology and innovation, and diversifying service offerings.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the TEN Holdings Inc. annual 10-K report dated March 28, 2025. To report an error, please email earnings@qz.com.