Pop Culture (CPOP) - 2023 Q2 - Quarterly Report

Revenue Performance - Total revenue for the six months ended December 31, 2022, was $11.26 million, a decrease of$8.89 million, or 44%, year-over-year[15]. - Revenue from event hosting decreased by 82% to $2.18 million, while revenue from event planning and execution decreased by 53$3.14 million[16]. - Brand promotion revenue increased by 282% to $5.56 million, driven by a growth in the number of advertisers[16]. - Total revenue for the six months ended December 31, 2022, was$8,727,933, a decline of 35.5% compared to $13,479,761 for the same period in 2021[58]. Profitability - Gross profit decreased by 158$2.34 million, with a gross margin of negative 21% compared to 20% in the previous period[20]. - Operating profit for the first six months of fiscal 2023 was $4.65 million, compared to$0.96 million in the same period of fiscal 2022[25]. - Net loss attributable to the Company's equity holders for the first six months of fiscal 2023 was $4.71 million, compared to a net profit of$0.45 million in the same period of fiscal 2022[28]. - Net income for the six months ended December 31, 2022, was $(4,118,522), compared to a net income of$1,090,050 for the same period in 2021, indicating a significant loss[58]. - The company reported a net income loss of $4,714,381 for the six months ended December 31, 2022, compared to a net income of$446,635 for the same period in 2021[119]. Expenses - Total operating expenses decreased by 26% to $2.25 million, but as a percentage of total revenue, it increased to 20.0$448,371, representing a 131% increase year-over-year from $193,720 in the same period of the previous fiscal year[23]. - General and administrative expenses for the six months ended December 31, 2022 were$1.80 million, a decrease of 37% year-over-year from $2.84 million in the previous period[24]. - The company recorded bad debt expenses of$290,138 for the six months ended December 31, 2022, compared to $1,063,983 for the same period in 2021, showing a decrease of approximately 72.7$3.86 million, down from $14.4 million as of June 30, 2022[29]. - Net cash used in operating activities was$5.79 million for the six months ended December 31, 2022, compared to $5.5 million for the same period of the last fiscal year[31]. - The net cash used in investing activities was$7.46 million for the six months ended December 31, 2022, an increase of $7.38 million compared to$0.07 million in the same period of fiscal 2022[32]. - The net cash generated from financing activities was $0.80 million for the six months ended December 31, 2022, a decrease of$32.4 million compared to the same period of the last fiscal year[33]. - The company reported a cash balance of $1,159,147 at the end of 2022, down from$28,510,993 at the end of 2021[45]. - Cash at the end of the period was $241,839, a significant decrease from$25,256,901 at the end of 2021[123]. Assets and Liabilities - Total assets as of December 31, 2022 were $61.17 million, down from$64.37 million as of June 30, 2022[39]. - Total liabilities as of December 31, 2022, were $13,229,412, an increase from$11,110,127 as of June 30, 2022, representing an increase of approximately 19.0%[58]. - Total current assets decreased from $13,335,153 as of June 30, 2022, to$7,991,911 as of December 31, 2022[114]. - The balance of restricted net assets was $16,665,441 as of December 31, 2022, compared to$16,557,042 as of June 30, 2022[109]. Shareholder Equity - As of June 30, 2022, total shareholders' equity was $52,772,352, with ordinary shares amounting to$24,050,000[43]. - The statutory reserve balance increased from $1,391,770 on December 31, 2021, to$1,608,689 on December 31, 2022[107]. - The company’s retained earnings increased from $7,813,333 as of December 31, 2021, to$12,527,714 as of December 31, 2022[116]. - The balance of retained earnings as of December 31, 2022, was $7,813,333, down from$12,527,714 in June 2022[121]. Foreign Currency and Other Adjustments - The company experienced a foreign currency translation loss of $(893,208) as of December 31, 2022[43]. - The company had a foreign currency translation adjustment of$(893,208) for the period ending December 31, 2022[121]. Acquisitions and Interests - The company has a 60% controlling interest in Shenzhen Jam box Technology Co., Ltd., and a 51% controlling interest in both Fujian Shuzhi Fuxin Exhibition Co., Ltd. and Zhongpu Shuyuan (Xiamen) Digital Technology Co., Ltd.[49]. - The company completed the acquisition of non-controlling interests in Pop Culture on February 9, 2021, gaining 100% control over Pop Culture[53].