UPAY, Inc. reported significant declines in revenue and increased net losses for the three and six months ended August 31, 2024, compared to the same periods in 2023. For the three-month period, revenue decreased to $168,071 from $364,042, a decline of $195,971, primarily attributed to reduced transactional revenue in its South African operations. Similarly, for the six-month period, revenue fell to $425,320 from $696,618, reflecting a decrease of $271,298 for the same reasons.
Gross profit also saw a notable decline, with the three-month gross profit dropping to $118,693 from $205,707, and the six-month gross profit decreasing to $241,609 from $379,147. Despite a reduction in total expenses for the three-month period—from $373,834 to $302,897—a net loss increased to $191,324 from $174,618. For the six-month period, net loss rose to $342,001 from $206,838, indicating a substantial increase of $135,163, again linked to decreased transactional revenue.
Total expenses for the six months remained relatively stable, decreasing slightly to $569,811 from $573,339. The company reported a significant increase in net cash used in operating activities, which rose to $651,056 from $79,847 in the prior year. Cash and cash equivalents at the end of the period were $121,846, down from $657,970 a year earlier.
Strategically, UPAY completed the acquisition of Huntpal LLC, increasing its ownership to 100% on June 13, 2024, and also acquired a controlling interest in AML Go (Pty) Ltd on May 28, 2024. The company issued common stock for cash, raising $100,000 during the six months ended August 31, 2024, and recognized management fees of $116,664 to its COO and Director, a new expense category for the period.
As of August 31, 2024, UPAY reported an accumulated deficit of $1,773,866 and expressed concerns regarding its ability to continue as a going concern, citing insufficient revenues to execute its business plan. The company intends to fund operations through equity financing, although it acknowledges the uncertainty surrounding this strategy.
About UPAY
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