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Treasure Global Inc. (TGL-4.13%) has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing includes financial statements for the quarter, showing a significant decrease in total revenues to $207,371 from $13,463,895 in the same quarter the previous year. This decrease is primarily due to a reduction in product and loyalty program revenues.
Cost of revenue for the quarter was $35,199, representing a 99.7% decrease from $13,301,261 in the same quarter of the previous year. This decrease is in line with the reduction in revenues.
The company reported a gross profit of $172,172 for the quarter, compared to $162,634 in the previous year, with an increase in gross margin to 83% from 1.2% due to strategic measures to streamline product lines and reduce spending on customer rewards.
Selling expenses decreased to $78,000 from $761,703, driven by reduced marketing and promotion expenses.
General and administrative expenses decreased to $788,894 from $1,237,167, primarily due to reductions in salary and professional fees.
Net loss for the quarter was $950,707, down from $2,131,712 in the previous year.
Cash used in operating activities was $976,319, while cash used in investing activities was $1,487,372, primarily due to a collaboration deposit with Credilab Sdn. Bhd.
Cash provided by financing activities was $2,437,271, mainly from the issuance of common stock through a market offering.
Treasure Global had cash and cash equivalents of $72,561 as of September 30, 2024. The company acknowledges its dependence on equity financing and related party support to meet future obligations.
The filing also details a Share Purchase Agreement with Alumni Capital LP, allowing the company to sell up to $6,000,000 of common stock.
The company identified material weaknesses in its internal controls over financial reporting due to inadequate U.S. GAAP expertise and an inadequate internal audit function.
Treasure Global continues to focus on its ZCITY platform and has entered into various partnerships to enhance its offerings, including a strategic partnership with Credilab Sdn. Bhd. to integrate credit services into the ZCity App.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Treasure Global Inc. quarterly 10-Q report dated November 14, 2024. To report an error, please email earnings@qz.com.