Business Context and Reporting Period
Company: Orangekloud Technology Inc. (Nasdaq: ORKT)
Reporting Period: Fiscal Year Ended December 31, 2025
Business Overview: A Cayman Islands holding company operating primarily in Singapore and Malaysia. The company provides AI-powered No-Code software development platforms (eMOBIQ®) and digital transformation solutions, including Microsoft Dynamics ERP implementation, targeting Small and Medium Enterprises (SMEs).
Capital Structure: Dual-class structure with Class A (1 vote) and Class B (100 votes) ordinary shares. As of December 31, 2025, there were 5,839,770 ordinary shares outstanding. A 1-for-4 reverse stock split was effective September 29, 2025.
Key Financial Metrics (Year Ended Dec 31, 2025)
| Metric | 2025 (S$) | 2025 (US$) | 2024 (S$) | Change |
|---|---|---|---|---|
| Total Revenue | 5,682,839 | 4,419,348 | 4,042,774 | +40.6% |
| Gross Profit | 2,510,651 | 1,952,447 | 1,053,550 | +138.3% |
| Gross Margin | 44.2% | 44.2% | 26.1% | +18.1 pts |
| Net Loss | (4,471,234) | (3,477,124) | (8,647,599) | -48.3% (Improvement) |
| Loss Per Share (Basic/Diluted) | (0.77) | (0.60) | (1.62) | -52.5% |
| Cash & Equivalents (End of Period) | 2,986,037 | 2,322,138 | 8,165,692 | -63.4% |
| Total Debt (Bank Loans) | 246,664 | 191,822 | 503,579 | -51.0% |
| Working Capital | 2,894,837 | 2,251,216 | 11,019,138 | -73.7% |
Note: US$ amounts are translated at the rate of US$0.7777 = S$1 as of December 31, 2025.
Material Changes vs. Prior Period
- Revenue Growth: Revenue increased 40.6% to S$5.7 million, driven by a 154% surge in the No-Code platform segment (S$2.0 million) and a 13.7% increase in Packaged Software Solutions (S$3.7 million). Hardware sales contributed significantly to the growth.
- Profitability Improvement: Net loss narrowed significantly from S$8.6 million in 2024 to S$4.5 million in 2025. This was primarily due to a S$2.89 million unrealized gain on the fair value measurement of a minority investment in Evvolutions LeadTech Inc. (EVVO), a cybersecurity company preparing for an IPO.
- Expense Management: General and Administrative (G&A) expenses decreased 10.7% to S$7.5 million, largely due to reduced professional fees post-IPO. However, Research and Development (R&D) expenses surged 3,057% to S$966,343 due to intensified AI capability upgrades on the eMOBIQ platform.
- Liquidity Position: Cash and cash equivalents declined by 63.4% to S$3.0 million, reflecting operating cash outflows of S$4.6 million and investing activities, despite the reduction in bank debt.
Guidance, Outlook, and Risks
Management Commentary and Outlook
- Strategic Focus: The company is pivoting to an "AI-first" positioning, leveraging AI Agents within its eMOBIQ platform to enable hyper-automation for SMEs.
- Government Support: The company is an approved "Gen AI x Digital Leaders" provider under Singapore's SMEs Go Digital Program, facilitating grant-eligible sales.
- Liquidity Outlook: Management anticipates existing cash and operating cash flows will be sufficient to meet requirements through 2026. Additional capital market funding or credit lines may be sought in Q4 2026.
Risks and Contingencies
- Delisting Risk: The company received a Nasdaq delisting notice in January 2026 for failing to maintain the $1.00 minimum bid price. Although compliance was regained in March 2026, the risk of future delisting remains if the bid price falls below $1.00 for 30 consecutive days.
- Supplier Concentration: Microsoft Regional Sales Pte Ltd. accounted for 21% of total purchases and 74% of accounts payable in 2025. Discontinuation of supply could materially impact operations.
- Profitability: The company has a history of losses and may not achieve or sustain profitability. The 2025 net loss improvement was heavily influenced by a non-cash investment gain.
- Reverse Merger Negotiations: As of February 2026, the company entered a non-binding Letter of Intent for a potential reverse merger with Orbis Technology Limited, which could result in current shareholders holding a minority interest.
Investor Verification Checklist
- Investment Gain Sustainability: Verify the realizability of the S$2.89 million gain on the EVVO investment and the likelihood of EVVO's successful IPO.
- Nasdaq Compliance: Monitor the Class A share trading price to ensure it remains above the $1.00 minimum bid price requirement to avoid delisting.
- Supplier Dependency: Assess the stability of the relationship with Microsoft Regional Sales Pte Ltd., given it represents nearly three-quarters of accounts payable.
- Cash Burn Rate: Review the trajectory of operating cash outflows (S$4.6 million in 2025) against the current cash balance (S$3.0 million) to determine runway without additional financing.
- Reverse Merger Terms: Monitor the progress of the non-binding Letter of Intent with Orbis Technology Limited and potential dilution effects on existing shareholders.