Cosmos Group Holdings Inc. reported its financial results for the nine months ended September 30, 2024, revealing significant changes in its financial position and performance compared to the previous fiscal period. The company, which operates primarily in Hong Kong and Singapore, has transitioned from a lending business to focus on arts and collectibles technology, utilizing blockchain for digital ownership tokens.

As of September 30, 2024, total current assets surged to $26.1 million, up from $8.8 million at the end of 2023. Total assets also increased to $33.3 million, compared to $18.7 million previously. However, current liabilities rose to $84.1 million from $65.5 million, leading to an accumulated deficit of $210.3 million, worsening from $205.4 million at the end of 2023.

Revenue for the three months ended September 30, 2024, was $19,218, a notable increase from $0 in the same period in 2023. For the nine months, revenue totaled $38,403, down 93.57% from $597,351 in the prior year. The decline was primarily attributed to the discontinuation of the lending segment, which had previously contributed significantly to revenue. The company reported a gross income of $7,687 for Q3 2024, compared to a gross loss of $53,372 in Q3 2023.

Operating expenses decreased to $967,869 for the three months ended September 30, 2024, from $1.1 million in the same period last year. The loss from operations improved to $(960,182) from $(1,047,329) year-over-year. The net loss for Q3 2024 was $(960,182), significantly reduced from $(49.8 million) in Q3 2023. For the nine months, the net loss was $(4.8 million), down from $(64.5 million) in the previous year.

The company’s cash and cash equivalents decreased to $28,796 from $57,888 at the end of 2023. Notably, net cash used in operating activities for the nine months ended September 30, 2024, was $(249,346), a substantial improvement from $(1.6 million) in the same period of 2023.

Strategically, Cosmos Group Holdings has committed to an Equity Purchase Agreement with Williamsburg Venture Holdings, LLC, for an investment of up to $30 million over 36 months. The company also issued 1.2 billion shares to consultants during the nine months ended September 30, 2024, reflecting its ongoing efforts to raise capital and support operations. The total number of outstanding shares increased significantly to 4.6 billion as of September 30, 2024, from 1.9 billion at the end of 2023.