Society Pass Inc. Files 10-Q for Period Ended March 31, 2024

TL;DR

<b>Society Pass Inc. (SOPA) has filed its quarterly report (10-Q) for the period ending March 31, 2024, confirming its status as a smaller reporting company and emerging growth company.</b>

AI Summary

SOCIETY PASS INCORPORATED. (SOPA) filed a Quarterly Report (10-Q) with the SEC on May 15, 2024. Society Pass Incorporated filed a 10-Q quarterly report for the period ending March 31, 2024. The company is registered in Nevada and its common stock trades on The Nasdaq Stock Market LLC under the symbol SOPA. As of May 14, 2024, there were 2,639,948 shares of the registrant's common stock outstanding. Society Pass Inc. is classified as a non-accelerated filer, a smaller reporting company, and an emerging growth company. The filing indicates the company has submitted all required reports for the preceding 12 months and has been subject to filing requirements for the past 90 days.

Why It Matters

For investors and stakeholders tracking SOCIETY PASS INCORPORATED., this filing contains several important signals. This 10-Q filing provides investors with an update on the company's financial performance and operational status for the first quarter of 2024. The disclosure of outstanding shares as of May 14, 2024, is crucial for understanding the current equity structure and potential dilution.

Risk Assessment

Risk Level: low — SOCIETY PASS INCORPORATED. shows low risk based on this filing. The risk is low as this is a standard quarterly filing providing routine financial and operational updates, with no immediate red flags apparent in the provided header information.

Analyst Insight

Monitor future filings for detailed financial statements and management discussion to assess the company's performance and strategic direction.

Key Numbers

• 2,639,948 — Common Shares Outstanding (As of May 14, 2024)
• 001-41037 — Commission File Number (SEC registration number)
• 2024-03-31 — Quarterly Period End Date (For the 10-Q filing)

Key Players & Entities

• SOCIETY PASS INCORPORATED (company) — Filer name
• SOPA (company) — Trading symbol
• The Nasdaq Stock Market LLC (company) — Exchange where common stock is registered
• March 31, 2024 (date) — Quarterly period ended
• May 14, 2024 (date) — Date as of which shares outstanding were reported
• 2,639,948 (dollar_amount) — Number of common shares outstanding

FAQ

Industry Context

Society Pass Inc. operates within the business services sector, focusing on technology and loyalty programs in Southeast Asia.

Regulatory Implications

The company is subject to the reporting requirements of the Securities Exchange Act of 1934, including the filing of quarterly (10-Q) and annual (10-K) reports.

What Investors Should Do

1. Review the full 10-Q filing for detailed financial statements and Management's Discussion and Analysis.
2. Analyze the number of outstanding shares and compare it to previous filings.
3. Track any disclosures regarding business operations, risks, or strategic initiatives.

Key Dates

• 2024-03-31: Quarterly Period End — End of the reporting period for the 10-Q
• 2024-05-15: Filing Date — Date the 10-Q was officially filed with the SEC

Year-Over-Year Comparison

This is the initial 10-Q filing for the fiscal year 2024, providing the first set of quarterly financial data for the year.

Key Financial Figures

• $0.0001 — ich registered Common Stock, par value $0.0001 per share SOPA The Nasdaq Stock Market
• $1 — s, January 24, 2019 IP Licensing US$1 100 % SOPA Cognitive Analytics Pri
• $2,000 — anuary 7, 2022 Investment holding US$2,000 100 % Gorilla Networks Pte. Ltd.
• $2,620,000 — tember 3, 2019 Investment holding US$2,620,000 and SGD 730,000 100 % Gorilla Co
• $10 — June 28,2022 Investment holding US$10 100 % Thoughtful (Thailand) Co. Lt
• $1,929.1938 — 2010 Digital marketing Preferred: US$1,929.1938 Common: US$4,032.7871 100 % PT Tu
• $4,032.7871 — g Preferred: US$1,929.1938 Common: US$4,032.7871 100 % PT Tunas Sukses Mandiri In
• $0.10 — , 2023 Investment holding Common: US$0.10 100 % Nusatrip Incorporated Unit

Filing Documents

• ea0206057-10q_society.htm (10-Q) — 1653KB
• ea020605701ex3-18_society.htm (EX-3.18) — 11KB
• ea020605701ex31-1_society.htm (EX-31.1) — 10KB
• ea020605701ex31-2_society.htm (EX-31.2) — 11KB
• ea020605701ex32-1_society.htm (EX-32.1) — 5KB
• 0001213900-24-043774.txt (&nbsp;) — 10625KB
• sopa-20240331.xsd (EX-101.SCH) — 109KB
• sopa-20240331_cal.xml (EX-101.CAL) — 47KB
• sopa-20240331_def.xml (EX-101.DEF) — 493KB
• sopa-20240331_lab.xml (EX-101.LAB) — 819KB
• sopa-20240331_pre.xml (EX-101.PRE) — 492KB
• ea0206057-10q_society_htm.xml (XML) — 1695KB

Financial Statements (Unaudited)

Financial Statements (Unaudited) 1 Condensed Consolidated Balance Sheets as of March 31, 2024 and December 31, 2023 1 Condensed Consolidated Statements of Operations and Other Comprehensive Loss for the Three ended March 31, 2024 and 2023 2 Condensed Consolidated Statements of Shareholders' Equity for the Three Months ended March 31, 2024 and 2023 3 Condensed Consolidated Statements of Cash Flows for the Three Months ended March 31, 2024 and 2023 4 Notes to Condensed Consolidated Financial Statements 5 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 50 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 72 Item 4.

Controls and Procedures

Controls and Procedures 72 PART II OTHER INFORMATION 73 Item 1.

Legal Proceedings

Legal Proceedings 73 Item 1A.

Risk Factors

Risk Factors 73 Item 2. Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities 73 Item 3. Defaults Upon Senior Securities 73 Item 4. Mining Safety Disclosure 73 Item 5. Other Information 73 Item 6. Exhibits 74

SIGNATURES

SIGNATURES 75 i PART I FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements SOCIETY PASS INCORPORATED CONDENSED CONSOLIDATED BALANCE SHEETS AS OF MARCH 31, 2024 AND DECEMBER 31, 2023 (Currency expressed in United States Dollars ("US$")) March 31, 2024 (Unaudited) December 31, 2023 (Audited) ASSETS Current assets: Cash and cash equivalents $ 1,619,232 $ 3,628,670 Restricted cash 54,000 95,312 Accounts receivable, net 1,338,080 1,338,170 Inventories 379,736 431,483 Contract assets 120,459 247,368 Deposits, prepayments and other receivables 1,884,386 2,207,774 Deferred tax assets 145,247 149,858 Total current assets 5,541,140 8,098,635 Non-current assets: Intangible assets, net 5,953,068 6,081,728 Goodwill 88,197 88,197 Property, plant and equipment, net 598,623 686,658 Right of use assets, net 1,095,077 1,407,956 Total non-current assets 7,734,965 8,264,539 TOTAL ASSETS $ 13,276,105 $ 16,363,174 LIABILITIES AND SHAREHOLDERS' DEFICIT Current liabilities: Accounts payables $ 1,827,955 $ 1,690,651 Contract liabilities 1,270,220 1,265,753 Accrued liabilities and other payables 5,736,948 6,866,169 Due to related parties 9,567 9,900 Deferred tax liabilities 69,000 69,000 Operating lease liabilities 441,938 563,276 Loan 18,980 21,313 Total current liabilities 9,374,608 10,486,062 Non-current liabilities Operating lease liabilities 655,215 847,950 TOTAL LIABILITIES 10,029,823 11,334,012 COMMITMENTS AND CONTINGENCIES Convertible preferred shares; $ 0.0001 par value, 5,000,000 shares authorized, 4,916,500 and 4,916,500 shares undesignated as of March 31, 2024 and December 31, 2023, respectively Series A shares: 10,000 shares designated; 0 and 0 Series A shares issued and outstanding as of March 31, 2024 and December 31, 2023, respectively — — Series B shares: 10,000 shares designated; 0 and 0 Series B shares issued and outstanding as of March 31, 2024 and December 31, 2023, respectively — — Se

financial statements

financial statements. 1 SOCIETY PASS INCORPORATED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND OTHER COMPREHENSIVE LOSS FOR THE THREE MONTHS ENDED MARCH 31, 2024 AND 2023 (Currency expressed in United States Dollars ("US$")) Three months ended March 31, 2024 2023 Revenue, net Sales – online ordering $ 20,728 $ 257,602 Sales – digital marketing 1,552,420 1,283,774 Sales – online ticketing and reservation 264,574 410,230 Sales – data 4,566 14,302 Software sales 4,791 195 Hardware sales — — Total revenue 1,847,079 1,966,103 Cost of sales: Cost of online ordering ( 19,164 ) ( 235,246 ) Cost of digital marketing ( 1,273,115 ) ( 964,161 ) Cost of data ( 50,110 ) ( 18,646 ) Software sales ( 12,041 ) ( 61,813 ) Total cost of revenue ( 1,354,430 ) ( 1,279,866 ) Gross income 492,649 686,237 Operating expenses: Sales and marketing expenses ( 127,135 ) ( 130,664 ) Software development costs ( 13,504 ) ( 13,919 ) General and administrative expenses ( 3,243,671 ) ( 5,991,886 ) Total operating expenses ( 3,384,310 ) ( 6,136,469 ) Loss from operations ( 2,891,661 ) ( 5,450,232 ) Other income (expense): Dividend income — 3,148 Gain on early lease termination — 1,064 Impairment loss ( 75 ) — Interest income 5,086 39,986 Interest expense ( 173 ) ( 352 ) Written-off fixed assets ( 8,461 ) — Other income (expense) 57,170 16,787 Total other income (expense) 53,547 60,633 Loss before income taxes ( 2,838,114 ) ( 5,389,599 ) Income taxes ( 1,110 ) ( 614 ) NET LOSS ( 2,839,224 ) ( 5,390,213 ) NET INCOME (LOSS) ATTRIBUTABLE TO NON-CONTROLLING INTEREST 701 ( 95,286 ) NET LOSS ATTRIBUTABLE TO SOCIETY PASS INCORPORATED $ ( 2,839,925 ) $ ( 5,294,927 ) Other comprehensive income (loss): Net loss ( 2,839,224 ) ( 5,390,213 ) Foreign currency translation adjustment 249,383 ( 400,416 ) COMRPEHENSIVE LOSS $ ( 2,589,841 ) $ ( 5,790,629 )

financial statements

financial statements. 2 SOCIETY PASS INCORPORATED CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' DEFICIT FOR THE THREE MONTHS ENDED MARCH 31, 2024 AND 2023 (Currency expressed in United States Dollars ("US$")) Three Months ended March 31, 2024 Preferred Stock Common Stock Treasury Stock Additional Accumulated other Non- Total Number of Shares Amount Number of Shares Amount Number of Shares Amount Paid in Capital comprehensive income Accumulated deficits controlling interest Stockholders' Equity Balances at January 1, 2024 3,500 $ — 2,217,491 $ 222 74,107 $ ( 785,525 ) $ 105,606,538 $ ( 242,129 ) $ ( 99,272,691 ) $ ( 277,253 ) $ 5,029,162 Shares issued for services — — 133,333 13 — — 329,987 — — — 330,000 Share issued for treasury stock — — 166,667 17 — — 487,223 — — — 487,240 Shares repurchase during the period — — — — 166,667 ( 487,240 ) — — — — ( 487,240 ) Sale of treasury stock — — — — ( 176,335 ) 1,085,983 — — ( 609,022 ) — 476,961 Foreign currency translation adjustment — — — — — — — 244,054 — 5,329 249,383 Net loss for the period — — — — — — — — ( 2,839,925 ) 701 ( 2,839,224 ) Balances at March 31, 2024 3,500 $ — 2,517,491 $ 252 64,439 $ ( 186,782 ) $ 106,423,748 $ 1,925 $ ( 102,721,638 ) $ ( 271,223 ) $ 3,246,282 Three Months ended March 31, 2023 Preferred Stock Common Stock Treasury Stock Additional Accumulated other Non- Total Number of Shares Amount Number of Shares Amount Number of Shares Amount Paid in Capital comprehensive income Accumulated deficits controlling interest Stockholders' Equity Balances at January 1, 2023 3,500 $ — 1,805,523 $ 181 — $ — $ 101,429,687 $ 56,527 $ ( 81,138,563 ) $ ( 336,515 ) $ 20,011,317 Shares i

financial statements

financial statements. 4 SOCIETY PASS INCORPORATED NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE THREE MONTHS ENDED MARCH 31, 2024 AND 2023 (Currency expressed in United States Dollars ("US$")) NOTE 1 DESCRIPTION OF BUSINESS AND ORGANIZATION Society Pass Incorporated (the "Company") was incorporated in the State of Nevada on June 22, 2018, under the name of Food Society Inc. On October 3, 2018, the Company changed its company name to Society Pass Incorporated. The Company, through its subsidiaries, mainly sells and distributes the hardware and software for a Point of Sales (POS) application in Vietnam. The Company also has online lifestyle platform to enable consumers to purchase high-end brands of all categories under its own brand name of "Leflair." The Company has made several acquisitions in calendar year 2022 to 2024, as follows: In February 2022, the Company completed the acquisition of 100 % of the equity interest of New Retail Experience Incorporated and Dream Space Trading Company Limited through its subsidiary – Push Delivery Pte Limited, which two companies mainly provide an on-line grocery and food delivery platform in the Philippines and Vietnam respectively. In May 2022, the Company completed another acquisition of 100 % of the equity interests of Gorilla Networks Pte Ltd, Gorilla Mobile Pte Ltd, Gorilla Connects Pte Ltd and Gorilla Networks (VN) Co Ltd (collectively, "Gorilla Networks"), a food delivery service. In July 2022, the Company and its wholly owned subsidiary Thoughtful Media Group Incorporated collectively acquired 100 % of the equity interests of Thoughtful Media Group Incorporated and AdActive Media, Inc. (collectively "Thoughtful Media"), whose business provides services to advertisers that helps to make internet advertising more effective. In July 2022, the Company acquired 100 % of the equity interests of Mangan PH Food Delivery Service Corp. ("Mangan), a Philippines restaurant and grocery delivery busi

View Full Filing

View this 10-Q filing on SEC EDGAR