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Wall Street JournalFinancial Report Articles: Stockholders Equity and Noncontrolling Interest
Financial Report Articles: Stockholders Equity and Noncontrolling Interest
The financial report highlights key events and developments, such as changes in stockholders’ equity, retained earnings, and noncontrolling interest. It also mentions the distribution of shares and the variable interest entity’s primary beneficiary status. The report covers a range of dates, from 2022 to 2024, and uses clear, straightforward language to provide a concise overview of the financial situation.
Introduction
The Company is a mobile data specialist company headquartered in Singapore. It operates business lines in telecommunications products and services, value-added products and services, SMS and MMS services, a RCS platform, big data insights, and an inactive video games division.
Overview
The Company primarily earns revenue by providing mobile payment and recharge services to customers of major telecommunications providers China Unicom and China Mobile. It also generates revenue through subscription plans, mobile phone sales, and other product bundles.
In FY2024, the Company expanded its telecommunication services by increasing product lines and launching new offerings like cloud-based business services. It also rolled out a mobile device protection product incorporated into telecommunication subscription plans.
Recent Developments
- Eliminated remaining convertible debt with primary lender
- Repaid in full a $730,000 convertible note
- Launched new Da Ge consumer application linking car owners with service stations
- Entering agreement with EV charging station providers to expand Da Ge app usage
Results of Operations
| FY2024 | FY2023 | Change | |
|---|---|---|---|
| Revenue | $35,791,685 | $34,054,205 | +5% |
| Net Loss | $3,757,519 | $7,539,142 | -50% |
- Telecommunication services revenue increased 21% due to enhanced mobile recharge services
- SMS & MMS revenue decreased 60% due to government protocol changes
- Gross profit rose 67% from revenue growth and product mix enhancement
- Operating expenses decreased 15% helped by lower marketing costs and optimized equity issuances
Liquidity and Capital Resources
| Feb 29, 2024 | Feb 28, 2023 | |
|---|---|---|
| Cash Reserves | $1,517,232 | $9,240,241 |
| Working Capital | $11,971,003 | $15,229,331 |
- Higher accounts receivable and operational demands have strained liquidity
- Carefully monitoring cash flows to fund operations and address liabilities
- Will continue seeking additional capital to increase deposits and support growth
Cashflows
| FY2024 | FY2023 | |
|---|---|---|
| Operating | $(8,203,947) | $(8,614,133) |
| Investing | $(376) | $(74,817) |
| Financing | $(295,333) | $17,343,333 |
Outlook
The Company believes its cash reserves and operating revenues will sufficiently cover projected operational needs over the next 12 months. It intends to continue seeking additional capital to further enhance deposits with telecommunication partners and support expansive growth.
Subsequent Events
- Received subscriptions for $775,000 worth of common stock after FY2024 year end
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