FingerMotion, Inc. Reports Net Loss of $1.3 Million in Q1 2023
Revenue Surges to $12.2 Million for FingerMotion, Inc. in Q1 2023
FingerMotion, Inc.(FNGR) Posts Q1 2023 Net Loss of $1.3 Million Despite Impressive Revenue of $12.2 Million
In the first quarter of 2023, FingerMotion, Inc. encountered a net loss of $1.3 million, according to the company's recently released unaudited condensed consolidated financial statements. Despite this setback, the technology solutions provider experienced a significant boost in revenue, reaching an impressive $12.2 million during the same period. The financial results showcase FingerMotion's ongoing commitment to growth and innovation within the industry.
Steady Current Assets but Decline in Non-Current Assets
FingerMotion's unaudited condensed consolidated balance sheets reveal that the company maintained steady current assets at $14.4 million as of May 31, 2023, compared to $17.3 million recorded on February 28, 2023. Cash and cash equivalents decreased from $9.2 million to $5.4 million, while accounts receivable showed a slight increase from $1.3 million to $1.6 million. However, prepayment and deposit decreased to $3.2 million from $4.1 million, and other receivables rose to $4.1 million from $2.6 million.
In terms of non-current assets, FingerMotion's equipment declined from $78,098 to $69,992, while intangible assets decreased from $73,066 to $61,138. The right-of-use asset also experienced a decline from $130,109 to $98,636. Overall, the company's total non-current assets dropped from $281,273 to $228,766.
Total Liabilities Decrease in Q1 2023
FingerMotion's total liabilities, including both current and non-current liabilities, decreased significantly from $4.6 million on February 28, 2023, to $607,695 as of May 31, 2023. Current liabilities showed a considerable decline from $2 million to $607,695. Accounts payable increased from $27,371 to $59,021, while accrual and other payables decreased from $1.1 million to $453,385. The company's stock subscription payables remained unchanged at $60,000, and convertible notes payable, current portion, reduced to zero from $730,000. Lease liability, current portion, decreased from $122,924 to $95,289.
In terms of non-current liabilities, FingerMotion's convertible notes payable, non-current portion, dropped to zero from $2.5 million, and lease liability, non-current portion, decreased to zero from $4,971.
Net Loss from Operations and Other Income
FingerMotion incurred a net loss from operations of $1.2 million in Q1 2023, compared to a net loss of $1.4 million in the same period last year. The unaudited condensed consolidated statements of operations outline various expenses contributing to the net loss, including amortization and depreciation of $18,342, general and administrative expenses of $1.4 million, marketing costs of $6,841, research and development expenses of $172,099, and stock compensation expenses of $296,461.
Other income and expenses also impacted FingerMotion's financial performance. Interest income amounted to $22,865, while interest expenses reached $121,451. The company experienced a minimal exchange gain of $2 and recorded other income of $13,824. Overall, total other income and expenses amounted to a net loss of $84,760.
