Fri, Jun 28, 8:16 PM (115 days ago)
FingerMotion, Inc.'s Form 10-Q for the quarter ended May 31, 2024, reveals a mixed financial performance. Revenue decreased by 31% YoY to $8.37 million, driven by a significant drop in Telecommunication Products & Services revenue, partially offset by a substantial increase in SMS & MMS business. Gross profit saw a slight increase to $681,889, but net loss widened to $1.66 million from $1.26 million due to higher operating expenses, particularly in general & administrative and marketing costs. Cash and cash equivalents decreased to $1.06 million from $1.52 million, impacting liquidity. The company faces challenges including dependency on major telecom partners, regulatory risks in China, and potential conflicts of interest in its VIE structure. Future operations may be impacted by regulatory changes and the need for additional capital.