Fintech Scion Reports 77% Revenue Decline in Q3 2024, Shifts Revenue Model

Fintech Scion Limited reported a significant decline in financial performance for the third quarter of 2024, with revenues totaling $220,209, a decrease of approximately 77% compared to $946,830 in the same period of 2023. For the nine months ended September 30, 2024, total revenue was $561,174, down from $2,377,652 in the prior year. The company attributed this decline primarily to lower transaction volumes in its Payment Services Provider and Foreign Exchange Conversion services, as well as a reduction in new client onboarding. The net loss for the quarter was $194,344, compared to a loss of $142,799 in the previous year.

In terms of operational changes, Fintech Scion has shifted its revenue model, now deriving income from whitelabelling services and referral fees, which were introduced following the discontinuation of its EMD agency service in December 2023 due to regulatory compliance issues. The company reported a gross profit of $211,382 for the quarter, down from $874,344 a year earlier, reflecting the impact of reduced revenues. Operating expenses also decreased significantly, totaling $398,340 for the quarter, a 68% reduction from $1,259,700 in the prior year, largely due to cuts in general and administrative costs.

The company’s balance sheet as of September 30, 2024, showed total assets of $20,901,487, a slight decrease from $21,078,344 at the end of 2023. Current liabilities increased to $4,129,055, primarily due to amounts due to related parties, which rose to $1,458,808. Despite the challenges, Fintech Scion maintained a cash balance of $4,014,768, reflecting a net increase of $248,809 during the quarter, driven by financing activities.

Looking ahead, Fintech Scion's management expressed cautious optimism, citing the onboarding of new clients with potential for significant transaction volumes and anticipated cost-saving initiatives that could improve financial performance in 2024. The company plans to conduct a detailed analysis of its goodwill, which remains at $16,657,653, to ensure no further impairments are necessary. Management believes that the current financial position supports the continuation of operations, although they acknowledge the need for ongoing monitoring of market conditions and internal performance metrics.