Mon, Apr 14, 7:55 PM (12 days ago)
### AB International Group Corp. (ABIG) - Q1 2025 Financial Performance Summary **Company Overview:** AB International Group Corp. (ABIG) is an intellectual property (IP) investment and licensing firm, focusing on the acquisition and distribution of movies, TV shows, and music. The company operates in two main segments: copyrights and licensing (IP) and cinema. **Financial Health and Performance:** - **Revenue:** For Q1 2025, ABIG reported total revenue of $1,058,543, a significant increase from $385,253 in Q1 2024. The increase was driven by higher sales of copyrights and broadcast rights, licensing fees, and embedded marketing services. - **Profit Margins:** The company reported a net income of $214,931 for Q1 2025, compared to a net loss of $494,919 in Q1 2024. This improvement was due to increased revenue and reduced operating costs. - **Cash Flow:** Operating activities used $345,972 in cash for the six months ended February 28, 2025, primarily due to purchases of movie and TV series broadcast rights and copyrights. Financing activities provided $417,415, mainly from share issuances and related party loans. - **Earnings Changes:** The company's earnings improved significantly, moving from a net loss to a net income, driven by higher revenue and cost management. **Quarterly Performance Discussion:** - **Revenue Streams:** The primary revenue streams include sales of copyrights, licensing fees for the NFT MMM platform, theater admissions, food and beverage sales, and embedded marketing services. - **Operating Costs:** Operating costs decreased to $844,820 for Q1 2025 from $873,324 in Q1 2024, mainly due to reduced amortization expenses and general administrative costs. - **Future Operations Impact:** The company plans to continue selling movie and TV drama copyrights, providing embedded marketing services, and generating revenue from its Mt. Kisco movie theater. Future operations will depend on securing additional financing and implementing strategic plans. **Trends and Uncertainties:** - **Going Concern:** ABIG faces substantial doubt regarding its ability to continue as a going concern due to an accumulated deficit of approximately $11.7 million and a working capital deficit of $0.6 million as of February 28, 2025. - **Financing Needs:** The company relies on continued financial support from stockholders and external financing to meet its obligations and fund operations. - **Market Risks:** The company is subject to risks related to failure to obtain adequate financing, uncertainty of profitability, legislative changes, and competition. **Conclusion:** ABIG showed significant improvement in its financial performance for Q1 2025, driven by increased revenue and cost management. However, the company faces challenges related to its financial health and the need for additional financing to support future operations. Investors should consider these factors when evaluating the company's prospects.