Greenpro Capital Corp. — Q1 2024 Form 10-Q
Reporting period: Three months ended March 31, 2024; unaudited. Greenpro provides corporate advisory and business services and operates real estate leasing and investment activities, primarily in Asia. Figures are in U.S. dollars unless noted.
Key financial results
| Metric | Q1 2024 | Q1 2023 / comparison |
|---|---|---|
| Revenue | $658,399 | $637,735; up 3.2% |
| Gross profit / margin | $577,525 / 87.7% | $559,551 / 87.7% |
| Operating expenses | $1,051,238 | $891,564; up $159,674 |
| Operating loss | $473,713 | $332,013 |
| Net income (loss) | $(272,910) | $21,936 |
| Net income (loss) attributable to Greenpro common stockholders | $(265,517) | $31,089 |
| Basic and diluted loss per share | $(0.04) | $0.00 |
| Cash used in operating activities | $540,043 | $751,522 |
Service revenue was $633,792, including $488,092 from non-listing services and $145,700 from listing services. Rental revenue was $24,607. Three customers generated 49% of Q1 revenue.
General and administrative expense rose mainly because the provision for credit losses increased to $127,763 from $27,062. Net other income was $202,209, including a $179,980 gain from selling 200,000 Agape ATP shares. Q1 2023 included $123,000 of impairment reversals and a $200,000 reversal of a notes-receivable write-off; neither recurred in Q1 2024.
Financial position and liquidity
- Cash and cash equivalents were $1,654,243 at March 31, down $568,954 from year-end 2023. Investing activities provided $176,100, principally from investment-sale proceeds; financing activities used $206,090, including $205,281 of advances to related parties.
- Current assets were $3,081,304 and current liabilities $1,937,718, a current ratio of about 1.6. Total assets were $7,961,696; total liabilities were $1,950,100; stockholders’ equity was $6,011,596.
- Lease liabilities totaled $106,791. The filing does not report other material borrowings; finance-lease liabilities were $15,768 and operating-lease liabilities $91,023.
- Net accounts receivable was $60,635, after an allowance for credit losses of $734,729. Due from related parties was $898,947, including $723,850 from one related party; these balances are interest-free, unsecured and have no fixed repayment terms.
Changes, outlook and risks
- Revenue rose modestly, but higher operating expenses widened the operating loss. Management attributes the G&A increase primarily to credit-loss provisioning and expects G&A to continue increasing as it integrates acquisitions and expands into new jurisdictions.
- Management expects service and real estate revenue to improve steadily in coming years and rental income to remain stable; it provided no quantified guidance.
- The company reported a $272,910 quarterly net loss, $540,043 operating cash outflow and $36,814,612 accumulated deficit. The filing states these conditions raise substantial doubt about the company’s ability to continue as a going concern within one year. Management says it expects shareholder support or external financing to help meet obligations, but provides no assurance that financing will be available or acceptable. Management separately estimates cash is sufficient for anticipated working capital over the next 12 months.
- Related-party service revenue was $194,249, or about 30% of total revenue. The company also made significant advances to related parties and reported related-party balances due both to and from it.
- A lawsuit by Millennium Fine Art seeks $66 million in damages and other relief over an alleged NFT-related contract. Greenpro denies the allegations; arbitration is in discovery, with a final hearing scheduled for April 1–4, 2025. The filing does not state a clear estimated loss or recorded accrual for this matter.
- Management reported disclosure controls were effective as of March 31, 2024, with no material changes to internal control over financial reporting during the quarter.
Important facts for investors to verify
- Share-count figures appear inconsistent: the cover page and balance sheet report 7,515,813 shares, while the equity statement and weighted-average share count report 7,575,813. Confirm the correct issued and outstanding count.
- Assess the collectability and timing of the $898,947 due from related parties and the substantial allowance against receivables; two customers represented 47% of net receivables.
- Monitor liquidity, operating cash burn and the company’s ability to obtain shareholder support or external financing given the going-concern warning.
- Review developments and potential financial exposure from the $66 million NFT arbitration claim.
- Separate recurring operating performance from investment-related gains and prior-period reversals when evaluating earnings.