Revenue Performance - Total revenue decreased by approximately 3,504 thousand, primarily due to a decline in revenue from virtual and hybrid events [210]. - Revenue from delivered events – Virtual and Hybrid decreased by approximately 91 thousand, attributed to a corporate restructuring that resulted in a full year of activity in 2024 [211]. - The company recognizes revenue from hybrid, virtual, and physical events upon completion of the event, reflecting the consideration expected to be received [230]. - The company applies ASC Topic 606 for revenue recognition, following a five-step model to determine the appropriate amount of revenue [227]. Expenses and Losses - Cost of revenue increased by approximately 652 thousand, driven by higher outsourced labor costs associated with physical events [210]. - Selling, General and Administrative (SG&A) expenses increased by approximately 5,390 thousand, mainly due to increased payroll expenses and professional service costs [212]. - Net loss was approximately 1,688 thousand for the year ended December 31, 2023, representing a 75.8% increase in loss [214]. - Net loss increased from 2,968 thousand in 2024, representing a 76% increase [216]. Cash Flow and Liquidity - Cash as of December 31, 2024, was approximately 357 thousand in 2023, indicating liquidity challenges [215]. - Net cash used in operating activities rose significantly from approximately 2,485 thousand in 2024, indicating a substantial increase in cash outflow [218]. - Net cash used in investing activities decreased slightly from approximately 1,037 thousand in 2024, primarily due to reduced capitalized software costs [219]. - Net cash provided by financing activities increased from approximately 3,213 thousand in 2024, driven by higher short-term loans [220]. - Cash and cash equivalents at the end of the period decreased from 48 thousand in 2024 [216]. Customer Concentration and Market Strategy - The company had a single customer that represented approximately 64.6% of revenue for the year ended December 31, 2024, highlighting customer concentration risk [198]. - The company plans to expand its sales and marketing capabilities to increase its customer base and achieve broader market acceptance [193]. Competitive Landscape - The competitive landscape includes major players like Zoom and ON24, which may leverage their resources to adapt to market trends and innovations [199]. Obligations and Capital Expenditures - Total contractual obligations as of December 31, 2024, amounted to approximately 1,037 thousand and $1,075 thousand, respectively [223]. - The company had no off-balance sheet arrangements as of December 31, 2024 [224].
TEN Holdings Inc(XHLD) - 2024 Q4 - Annual Report