Treasure Global Inc (NASDAQ: TGL) (“Treasure Global,” or the
“Company”), an innovative technology company focused on providing
seamless solutions for lifestyle needs, today reported its
financial results for the third quarter of the fiscal year 2023
ended March 31, 2023.
“Since its inception Treasure Global has sought
to provide seamless technology enabled solutions. With the ZCITY
app, we were able to amass a large and growing user base by
providing them with solutions to simplify their lifestyle needs
with instant rebates and affiliate cashback programs. Next, we
developed TAZTE, a transformational solution to improve efficiency
of the front and back operations of the food & beverage
(“F&B”) industry. As we increased our understanding of the
F&B industry, we identified a symbiotic opportunity to generate
additional revenue streams by acting as a master franchisor of
Southeast Asian F&B chains,” commented Sam Teo, Chief Executive
Officer of Treasure Global. “Our first step in executing this new
arm of the business was the recent signing of a licensing agreement
with Morganfield’s, a Southeast Asian restaurant chain with nine
franchisees, granting Treasure Global the exclusive right to
sub-license the Morganfield’s brand. Treasure Global will act as
the master franchisor for F&B companies holding all brand
royalties and related IP, and as part of these partnerships,
retailers will be required to adopt TAZTE. Not only does this raise
the brand awareness and credibility of TAZTE, but it will also
provide valuable data insights, and accelerate our regional
expansion in Southeast Asia. We look forward to providing updates
as we progress this business.”
“In addition, we remain committed to our
technology business which enabled us to achieve quarterly revenue
of approximately $18.2 million and successfully grow gross profit
by 853 percent year-over-year. During the quarter, we signed an MOU
with a leading regional fintech provider, Boost, increasing our
brand exposure and extending our reach to F&B businesses
through the onboarding of Boost Credit’s digital financing
solutions to TAZTE. Treasure Global is well positioned to become a
leader in the Southeast Asian F&B industry through its
solutions and partnerships,” concluded Mr. Teo.
Financial Highlights for the Third Quarter, Fiscal Year
2023
- Total revenues of approximately $18.2 million
- Gross profit of approximately $0.1 million
- Net loss of approximately $2.9 million
- Cash and cash equivalents of approximately $4.1 million as of
March 31, 2023
Recent User Highlights as of March 31,
2023
- Over 2.4 million Registered Users
- Over 449,000 Quarterly Active Users
- 58% of Paid Users transacted 3 or more times in a quarter,
which is an increase of approximately 327% year-over-year
- Quarterly Active Users were similar year-over-year
- Active User Retention Rate was up 288% year-over-year
- Approximately 1.0 million total transactions by Registered
Users in the third quarter fiscal year 2023
Recent Business Highlights
- Signed a strategic partnership MOU
in Malaysia with Boost, a leading regional full spectrum fintech
player.
- Closed an unsecured convertible
debt facility of up to $5.5 million, to be drawn in tranches with a
single institutional investor.
- Appointed Ho Yi Hui to its Board of
Directors, bringing more than 20 years of experience in tax
advisory and compliance.
- Signed a licensing agreement with
Morganfield’s, a restaurant chain specializing in comfort food and
American-style barbecue, in which Morganfield’s has granted
Treasure Global an exclusive worldwide license to grant
sub-licensees to third parties to use Morganfield’s trademarks for
the restaurant business. Additionally, Morganfield’s will adopt
TAZTE in its nine franchisees in Malaysia, China, and Singapore,
accelerating the rollout of TAZTE in the region.
Financial Results for the Third Quarter Fiscal Year
2023
Total revenues for the third quarter of fiscal
year 2023 were approximately $18.2 million, compared to
approximately $21.1 million for the third quarter of fiscal year
2022. The decrease was mainly attributable to the decrease in
voucher product revenue as part of the corporate strategy to
improve margin by allocating resources to membership
subscriptions.
Gross profit was approximately $0.15 million, or
gross margin of approximately 0.8 percent, for the third quarter of
fiscal year 2023, an increase of 853 percent compared to $0.02
million, or gross margin of approximately 0.1 percent, for the
third quarter of fiscal year 2022. The increase in gross profit was
primarily due to an increase in member subscription revenue with
more customers subscribed to the Company’s Zmember program, as well
as an increase in gross margins from product and loyalty program
revenue as Treasure Global received more purchase discount from
vendors.
Net loss was approximately $2.9 million for the
third quarter of fiscal year 2023, compared to $3.2 million in the
third quarter of fiscal year 2022.
Cash and cash equivalents were approximately
$4.1 million as of March 31, 2023, compared to approximately $4.7
million as of December 31, 2022.
Outlook for Fiscal Year 2023
For fiscal year 2023, Treasure Global continues
to focus on increasing user engagement and margins, as well as
expanding further into the digital F&B franchise space to gain
additional revenue streams.
Conference Call and Webcast
Information
The Company will host a conference call and
audio webcast today, Tuesday, May 9th at 8:30 a.m. Eastern Time
featuring remarks by Sam Teo, CEO and Jaylvin Chan, CFO.
Event: |
Treasure Global Third Quarter
Fiscal Year 2023 Results Conference Call |
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|
Date: |
Tuesday, May 9, 2023 |
|
|
Time: |
8:30 a.m. Eastern Time |
|
|
Live
Call: |
+ 1-844-826-3033 (Toll Free)
or + 1-412-317-5185 (International) |
|
|
Webcast: |
https://viavid.webcasts.com/starthere.jsp?ei=1609924&tp_key=3f7b7500fa |
For interested individuals unable to join the
conference call, a replay will be available through May 23, 2023,
at +1-844-512-2921 (U.S. Toll Free) or +1-412-317-6671
(International). Participants must use the following code to access
the replay of the call: 10177883. An archived version of the
webcast will also be available on Treasure Global’s Investor
Relations site: https://ir.treasureglobal.co/.
About Treasure Global
IncTreasure Global is an innovative Malaysian technology
company focused on providing seamless solutions for lifestyle needs
and improving the F&B industry. Treasure Global has developed
two technology solutions: the ZCITY App, a unique digital ecosystem
that transforms and simplifies the e-payment experience for
consumers, while simultaneously allowing them to earn rewards; and
TAZTE, a digital F&B management system providing merchants with
a one-stop management and automated solution to digitalize their
businesses. Treasure Global also acts as a master franchiser in SEA
for popular restaurant chains, while providing them with the TAZTE
solution. As of March 31, 2023, ZCITY had over 2,400,000 registered
users.
For more information, please
visit https://treasureglobal.co/.
Forward Looking StatementsThis
press release may contain forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended.
Such forward-looking statements are characterized by future or
conditional verbs such as “may,” “will,” “expect,” “intend,”
“anticipate,” “believe,” “estimate” and “continue” or similar
words. You should read statements that contain these words
carefully because they discuss future expectations and plans, which
contain projections of future results of operations or financial
condition or state other forward-looking information.
Forward-looking statements are not guarantees of future
performance, are based on certain assumptions and are subject to
various known and unknown risks and uncertainties, many of which
are beyond the control of the Company, including those set forth in
the Risk Factors section of the Company’s registration statement
and preliminary prospectus for the Company’s initial public
offering filed with the SEC. Copies of these documents are
available on the SEC’s website, www.sec.gov. These forward-looking
statements cannot be predicted or quantified and consequently,
actual results may differ materially from those expressed or
implied by such forward-looking statements. The Company undertakes
no obligation to update these statements for revisions or changes
after the date of this release, except as required by law.
For further information, please contact:
U.S. Investor ContactAllison SossKCSA Strategic
Communicationsir_us@treasuregroup.co
Malaysian Investor
Contactsir_my@treasuregroup.co
Media ContactSue Chuah, Chief Marketing
OfficerTreasure Global Incmediacontact@treasuregroup.co
|
TREASURE
GLOBAL INC. AND SUBSIDIARY |
|
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS AND COMPREHENSIVE LOSS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended March 31, |
|
For the Nine Months Ended March 31 |
|
|
|
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
REVENUES |
$ |
18,152,113 |
|
$ |
21,096,379 |
|
$ |
54,152,621 |
|
$ |
63,440,380 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COST OF REVENUES |
|
(18,004,280 |
) |
|
(21,080,872 |
) |
|
(53,700,540 |
) |
|
(63,213,814 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
GROSS PROFIT |
|
147,833 |
|
|
15,507 |
|
|
452,081 |
|
|
226,566 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SELLING |
|
(1,174,925 |
) |
|
(1,405,495 |
) |
|
(3,734,255 |
) |
|
(5,022,545 |
) |
|
GENERAL AND ADMINISTRATIVE |
|
(1,369,369 |
) |
|
(822,644 |
) |
|
(3,035,688 |
) |
|
(1,888,511 |
) |
|
PROVISION FOR DOUBTFUL ACCOUNTS |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
RESEARCH AND DEVELOPMENT |
|
(105,961 |
) |
|
(68,345 |
) |
|
(403,191 |
) |
|
(261,567 |
) |
|
STOCK-BASED COMPENSATION |
|
(380,000 |
) |
|
(321,057 |
) |
|
(819,332 |
) |
|
(962,938 |
) |
|
TOTAL OPERATING EXPENSES |
|
(3,030,255 |
) |
|
(2,617,541 |
) |
|
(7,992,466 |
) |
|
(8,135,561 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
LOSS FROM OPERATIONS |
|
(2,882,422 |
) |
|
(2,602,034 |
) |
|
(7,540,385 |
) |
|
(7,908,995 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER (EXPENSE) INCOME |
|
|
|
|
|
|
|
|
|
|
Other (expense) income, net |
|
1,329 |
|
|
24,295 |
|
|
37,695 |
|
|
61,444 |
|
|
|
Interest expense |
|
(8,220 |
) |
|
(406,187 |
) |
|
(50,060 |
) |
|
(813,100 |
) |
|
|
Amortization of debt discount |
|
(25,255 |
) |
|
(237,764 |
) |
|
(1,023,331 |
) |
|
(489,771 |
) |
|
TOTAL OTHER EXPENSE, NET |
|
(32,146 |
) |
|
(619,656 |
) |
|
(1,035,696 |
) |
|
(1,241,427 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
LOSS BEFORE INCOME TAXES |
|
(2,914,568 |
) |
|
(3,221,690 |
) |
|
(8,576,081 |
) |
|
(9,150,422 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
PROVISION FOR INCOME TAXES |
|
(11,500 |
) |
|
(3,900 |
) |
|
(34,500 |
) |
|
(12,600 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
NET LOSS |
|
(2,926,068 |
) |
|
(3,225,590 |
) |
|
(8,610,581 |
) |
|
(9,163,022 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER COMPREHENSIVE INCOME (LOSS) |
|
|
|
|
|
|
|
|
|
|
Foreign currency translation adjustment |
|
(24,621 |
) |
|
13,935 |
|
|
(109,899 |
) |
|
(23,139 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
COMPREHENSIVE LOSS |
$ |
(2,950,689 |
) |
$ |
(3,211,655 |
) |
$ |
(8,720,480 |
) |
$ |
(9,186,161 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
LOSS PER SHARE |
|
|
|
|
|
|
|
|
|
|
Basic and diluted |
$ |
(0.17 |
) |
$ |
(0.31 |
) |
$ |
(0.53 |
) |
$ |
(0.87 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING |
|
|
|
|
|
|
|
|
Basic and diluted |
|
17,319,862 |
|
|
10,545,251 |
|
|
16,164,236 |
|
|
10,544,402 |
|
|
|
|
|
|
|
|
|
|
|
|
|
The accompanying
notes are an integral part of these unaudited condensed
consolidated financial statements. |
|
|
|
|
|
|
|
|
|
|
|
|
TREASURE
GLOBAL INC. AND SUBSIDIARY |
|
UNAUDITED
CONDENSED CONSOLIDATED BALANCE SHEETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March
31, |
|
June
30, |
|
|
|
|
|
|
2023 |
|
2022 |
|
|
|
|
|
|
(Unaudited) |
|
|
|
ASSETS |
|
|
|
|
|
CURRENT ASSETS |
|
|
|
|
|
|
Cash and cash equivalents |
$ |
4,094,673 |
|
$ |
1,845,232 |
|
|
|
Accounts receivable, net |
|
43,271 |
|
|
- |
|
|
|
Inventories |
|
213,761 |
|
|
216,069 |
|
|
|
Other receivable and other current assets |
|
486,105 |
|
|
8,780 |
|
|
|
Prepayments |
|
381,519 |
|
|
203,020 |
|
|
Total current assets |
|
5,219,329 |
|
|
2,273,101 |
|
|
|
|
|
|
|
|
|
|
|
OTHER ASSETS |
|
|
|
|
|
|
Property and equipment, net |
|
337,198 |
|
|
337,645 |
|
|
|
Other asset, non-current |
|
66,878 |
|
|
- |
|
|
|
Operating lease right-of-use asset |
|
63,179 |
|
|
- |
|
|
|
Deferred offering costs |
|
- |
|
|
93,536 |
|
|
Total other assets |
|
467,255 |
|
|
431,181 |
|
|
|
|
|
|
|
|
|
|
|
TOTAL ASSETS |
$ |
5,686,584 |
|
$ |
2,704,282 |
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' DEFICIENCY |
|
|
|
|
|
CURRENT LIABILITIES |
|
|
|
|
|
|
Related party loan, current portion |
$ |
4,728 |
|
$ |
4,505 |
|
|
|
Insurance loan |
|
238,686 |
|
|
- |
|
|
|
Convertible notes payable, net of unamortized discounts of $70,868
and $717,260 as of March 31, 2023 and June 30, 2022,
respectively |
|
1,862,307 |
|
|
10,954,042 |
|
|
|
Convertible notes payable, related parties |
|
- |
|
|
2,437,574 |
|
|
|
Loans from third parties |
|
- |
|
|
1,417,647 |
|
|
|
Account payable |
|
- |
|
|
25,397 |
|
|
|
Account payable, related parties |
|
- |
|
|
14,326 |
|
|
|
Customer deposits |
|
134,452 |
|
|
73,317 |
|
|
|
Contract liability |
|
44,347 |
|
|
56,757 |
|
|
|
Other payables and accrued liabilities |
|
418,804 |
|
|
1,161,860 |
|
|
|
Other payables, related parties |
|
14,612 |
|
|
- |
|
|
|
Amount due to related parties |
|
331,614 |
|
|
2,060,088 |
|
|
|
Operating lease liability |
|
35,636 |
|
|
- |
|
|
|
Income tax payables |
|
4,495 |
|
|
16,445 |
|
|
Total current liabilities |
|
3,089,681 |
|
|
18,221,958 |
|
|
|
|
|
|
|
|
|
|
|
NON-CURRENT LIABILITIES |
|
|
|
|
|
|
Operating lease liability, non-current |
|
27,543 |
|
|
- |
|
|
|
Related party loan, non-current portion |
|
9,917 |
|
|
13,883 |
|
|
|
Senior note |
|
- |
|
|
65,000 |
|
|
Total non-current liabilities |
|
37,460 |
|
|
78,883 |
|
|
TOTAL LIABILITIES |
|
3,127,141 |
|
|
18,300,841 |
|
|
|
|
|
|
|
|
|
|
|
COMMITMENTS AND CONTINGENCIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
STOCKHOLDERS' EQUITY (DEFICIENCY) |
|
|
|
|
|
|
Common stock, par value $0.00001; 150,000,000 shares authorized,
17,573,830 and 10,545,251 shares |
|
|
|
|
|
|
|
issued and outstanding as of March 31, 2023 and June 30, 2022,
respectively |
|
176 |
|
|
105 |
|
|
|
Additional paid-in capital |
|
30,896,963 |
|
|
4,020,552 |
|
|
|
Accumulated deficit |
|
(28,326,321 |
) |
|
(19,715,740 |
) |
|
|
Accumulated other comprehensive income |
|
(11,375 |
) |
|
98,524 |
|
|
TOTAL STOCKHOLDERS' EQUITY (DEFICIENCY) |
|
2,559,443 |
|
|
(15,596,559 |
) |
|
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
(DEFICIENCY) |
$ |
5,686,584 |
|
$ |
2,704,282 |
|
|
|
|
|
|
|
|
|
|
|
The accompanying
notes are an integral part of these unaudited condensed
consolidated financial statements. |
|
|
|
|
|
|
|
|
|
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