Treasure Global Inc. (TGL) reported significant financial changes in its 10-Q filing for the quarter ending September 30, 2024. The company experienced a dramatic decline in revenue, reporting $207,371, a staggering 98.5% decrease from $13.5 million in the same period of 2023. This decline was primarily attributed to a strategic decision to streamline its product offerings and reduce spending on customer rewards and marketing, which led to a 99.4% drop in product and loyalty program revenue.

Despite the revenue drop, TGL's gross profit increased to $172,172, up from $162,634 year-over-year, resulting in a gross margin improvement from 1.2% to 83%. This increase in gross profit was driven by the elimination of lower profitability products and reduced customer rewards spending. The company reported a net loss of $950,707 for the quarter, a significant improvement from the $2.1 million loss in the prior year, reflecting a decrease in operational losses.

Total assets as of September 30, 2024, rose to $7.1 million from $4.3 million at the end of June 2024, with total stockholders' equity increasing to $6.3 million from $3.4 million. The increase in equity was bolstered by the issuance of common stock, which raised approximately $2.5 million through market offerings. However, cash and cash equivalents saw a decline from $200,013 to $72,561 during the same period.

TGL's operational strategy included the disposal of its subsidiary, Foodlink Global Sdn. Bhd., which was sold for $148,500 in May 2024. This move was part of a broader effort to focus on its core payment processing and e-commerce operations through the ZCITY platform. The company also entered into several strategic partnerships, including a collaboration with Credilab Sdn. Bhd. to integrate credit services into the ZCITY App.

Management expressed substantial doubt regarding the company's ability to continue as a going concern due to recurring losses and insufficient funds to meet working capital and debt obligations. To mitigate this risk, TGL is pursuing additional equity financing and financial support from related parties.

Overall, TGL's financial performance reflects a challenging environment, with significant revenue declines offset by improvements in gross profit and operational losses, alongside strategic shifts aimed at enhancing its core business focus.