Agape ATP Corp

Previous wording

We generated revenue of $465,499, which comprised revenue from the Company’s network marketing business of $16,149 (approximately 3.5% of revenue); revenue from the Company’s operations in the provision of complementary health therapies of $258,470 (approximately 55.5% of revenue); $55,446 from skin care and healthcare products (approximately 11.9% of revenue) and $135,434 from the operation in green energy (approximately 29.1% of revenue) for the three months ended June 30, 2025 as compared to $313,039, which comprised revenue from the Company’s network marketing business of $29,246 (approximately 9.3% of revenue); and revenue from the Company’s operations in the provision of complementary health therapies of $283,793 (approximately 90.7% of revenue) for the three months ended June 30, 2024. Revenue from the Company’s network marketing business decreased by $13,097, or approximately 44.8%. Revenue from the Company’s operations in the provision of complementary health therapies decreased by $25,323, or approximately 8.9%, new revenue streams $55,446 from the Company’s operations in wellness and wellbeing lifestyle and $135,434 from the operation in green energy. Total revenue increased by $152,460, or approximately 48.7%.

Current wording

We generated revenue of $370,593, which comprised revenue from the Company’s network marketing business of $17,186 (approximately 4.6% of total revenue); revenue from the Company’s operations in the provision of complementary health therapies of $261,569 (approximately 70.6% of total revenue); $90,564 from skin care and healthcare products (approximately 24.4% of total revenue) and $1,274 from the operation in green energy (approximately 0.4% of total revenue) for the three months ended September 30, 2025 as compared to $331,289, which comprised revenue from the Company’s network marketing business of $29,133 (approximately 8.8% of total revenue); revenue from the Company’s operations in the provision of complementary health therapies of $283,752 (approximately 85.7% of total revenue) and revenue from Company’s operation in wellness and wellbeing lifestyle of $18,404 (approximately 5.5% of total revenue) for the three months ended September 30, 2024.

Previous wording

The decrease in revenue from the Company’s network marketing business was due to a strategic shift in focus toward new revenue streams aimed at restoring growth and diversifying income sources. Additionally, revenue from the Company’s operations in the provision of complementary health therapies declined because, in 2025, the Company did not generate any revenue from overseas customers.

Current wording

The decrease in revenue from the Company’s network marketing business was due to a strategic shift in focus toward new revenue streams aimed at restoring growth and diversifying income sources. Additionally, revenue from the Company’s operations in the provision of complementary health therapies declined because, in 2025, the Company did not generate any revenue from overseas customers. The increase in revenue from skin care and healthcare products was due to the company’s digital advertisement campaign and marketing activities to promote the skin care and healthcare products.

Previous wording

Cost of revenue for the three months ended June 30, 2025 amounted to $256,559 as compared to $119,478 for the three months ended June 30, 2024, an increase of $137,081, or approximately 114.7%. The increase was due to the varying gross profit margins in the Company’s operations in the provision of complementary health therapies; and the cost from the new revenue stream, the Company’s operation in wellness and wellbeing lifestyle and the operation in green energy.

Current wording

Cost of revenue for the three months ended September 30, 2025 amounted to $131,490 as compared to $147,104 for the three months ended September 30, 2024, a decrease of $15,614, or approximately 10.6%. The decrease was due to the decrease in revenue in the Company’s network marketing business, the varying gross profit margins in the Company’s operations in the provision of complementary health therapies and the low cost of revenue in the skin care and health care products as compared to the operation in the Company’s network marketing business and the provision of complementary health therapies.

Previous wording

Cost of revenue typically comprise of freight-in, cost of goods purchased, packing materials and services acquired.

Current wording

Cost of revenue typically comprise of cost of goods purchased, packing materials and services acquired.

Previous wording

Gross profit for the three months ended June 30, 2025 amounted to $208,940, represented a gross margin of approximately 44.9% as compared to $193,561 for the three months ended June 30, 2024, equivalent to a gross margin of approximately 61.8%. The decrease in gross margin was due to the varying type of health therapies offered, gross margin associated with the provision of complementary health therapies and low gross margin in the new revenue stream, the operation in green energy.

Current wording

Gross profit for the three months ended September 30, 2025 amounted to $239,103, represented a gross margin of approximately 64.5% as compared to $184,185 for the three months ended September 30, 2024, equivalent to a gross margin of approximately 55.6%. The increase in gross margin was due to higher gross margin contributed by the skin care and health care products as compared to the Company’s network marketing business operations and the provision of complementary health therapies

Previous wording

Our operating expenses consist of selling expenses, commission expenses and general and administrative expenses (as defined below). Total operating expenses were $845,901 for the three months ended June 30, 2025, increased by $198,755 or approximately 30.7% from $647,146 for the three months ended June 30, 2024.

Current wording

Our operating expenses consist of selling expenses, commission expenses and general and administrative expenses (as defined below). Total operating expenses were $840,424 for the three months ended September 30, 2025, increased by $108,129 or approximately 14.8% from $732,295 for the three months ended September 30, 2024.

Previous wording

Selling expenses for the three months ended June 30, 2025 amounted to $62,539 as compared to $38,008 for the three months ended June 30, 2024, an increase of $24,531, or approximately 64.5%. The Company’s selling expenses typically comprise ofsalaries and benefits expenses, credit card processing fees, advertisement and promotional expenses.

Current wording

Selling expenses for the three months ended September 30, 2025 amounted to $61,623 as compared to $41,582 for the three months ended September 30, 2024, an increase of $20,041, or approximately 48.2%. The Company’s selling expenses typically comprise ofsalaries and benefits expenses, credit card processing fees, advertisement and promotional expenses.

Previous wording

Commission expenses were $23,964 and $16,679 for the six months ended June 30, 2025 and 2024, respectively, an increase of $7,285, or approximately 43.7%. The increase in commission expenses was due to the Company pays commission in Company’s network marketing business and the new revenue stream, the operation in wellness and wellbeing lifestyle.

Current wording

Commission expenses were $27,386 and $6,894 for the three months ended September 30, 2025 and 2024, respectively. The Company pays commission in Company’s network marketing business and the operation in wellness and wellbeing lifestyle. The increase in commission expenses was due to the increase in revenue from the operation in wellness and wellbeing lifestyle.

Previous wording

G&A expenses for the three months ended June 30, 2025 amounted to $767,343, as compared to $601,803 for the three months ended June 30, 2024, an increase of $165,540, or approximately 27.5%. The Company’s G&A expenses typically comprise ofsalaries and benefits expenses, rental expenses, professional expenses, depreciation expenses and other expenses. The increase in G&A expenses was mainly due to the expenses incurred in the new revenue stream, the operation in wellness and wellbeing lifestyle.

Current wording

G&A expenses for the three months ended September 30, 2025 amounted to $751,415, as compared to $683,819 for the three months ended September 30, 2024, an increase of $67,596, or approximately 9.9%. The Company’s G&A expenses typically comprise ofsalaries and benefits expenses, rental expenses, professional expenses, depreciation expenses and other expenses. The increase in G&A expenses was mainly due to the expenses incurred in the operation in wellness and wellbeing lifestyle.

Previous wording

For the three months ended June 30, 2025, the Company recorded an amount of $13,715 as other income, net, as compared to $31,110 other income, net, for the three months ended June 30, 2024, represented a decrease of $17,395, or approximately 55.9%.

Current wording

For the three months ended September 30, 2025, the Company recorded an amount of $7,147 as other income, net, as compared to $21,196 as other income, net, for the three months ended September 30, 2024, represented a decrease of $14,049 in other income, net, or approximately 66.3%.

Previous wording

The Company recorded provision for income taxes of $0 and $16,678 for the six months ended June 30, 2025 and 2024, respectively. The provision for income taxes were in respect of the Company’s operations in Malaysia.

Current wording

The Company recorded provision for income taxes of $1,196 and benefit of income taxes of $2,875 for the three months ended September 30, 2025 and 2024, respectively. Both the provision for income taxes as well as the benefit of income taxes were in respect of the Company’s operations in Malaysia.

Previous wording

Net loss increased by $190,931 from net loss of $432,315 for the three months ended June 30, 2024 to net loss of $623,246 for the three months ended June 30, 2025, mainly due to reasons as discussed above.

Current wording

Net loss increased by $71,331 from a net loss of $524,039 for the three months ended September 30, 2024 to a net loss of $595,370 for the three months ended September 30, 2025, mainly due to reasons as discussed above.

Previous wording

The decrease in revenue from the Company’s network marketing business was due to a strategic shift in focus toward new revenue streams aimed at restoring growth and diversifying income sources. Additionally, revenue from the Company’s operations in the provision of complementary health therapies declined because, in 2025, the Company did not generate any revenue from overseas customers.

Current wording

The decrease in revenue from the Company’s network marketing business was due to a strategic shift in focus toward new revenue streams aimed at restoring growth and diversifying income sources. Additionally, revenue from the Company’s operations in the provision of complementary health therapies declined because, in 2025, the Company did not generate any revenue from overseas customers. The increase in revenue from skin care and healthcare products was due to the company’s digital advertisement campaign and marketing activities to promote the skin care and healthcare products.

Previous wording

The increase was due to the inventory write off in the Company’s network marketing business; the varying gross profit margins in the Company’s operations in the provision of complementary health therapies; and the cost from the new revenue stream, the Company’s operation in wellness and wellbeing lifestyle and the operation in green energy.

Current wording

The increase was due to the inventory write off in the Company’s network marketing business; the varying gross profit margins in the Company’s operations in the provision of complementary health therapies; and the cost from the new operation in green energy.

Previous wording

Cost of revenue typically comprise of freight-in, cost of goods purchased, packing materials and services acquired.

Current wording

Cost of revenue typically comprise of cost of goods and services purchased, packing materials and services acquired.

Previous wording

Gross profit for the six months ended June 30, 2025, amounted to $365,226, represented a gross margin of approximately 48.4% as compared to $396,981 for the six months ended June 30, 2024, equivalent to a gross margin of approximately 62.8%. The decrease in gross margin was due to the inventory write off in the Company’s network marketing business, the varying type of health therapies offered, gross margin associated with the provision of complementary health therapies and low gross margin in the new revenue stream, the operation in green energy.

Current wording

Gross profit for the nine months ended September 30, 2025, amounted to $604,329, represented a gross margin of approximately 53.7% as compared to $581,166 for the nine months ended September 30, 2024, equivalent to a gross margin of approximately 60.4%. The decrease in gross margin was due to the inventory write off in the Company’s network marketing business, the varying type of health therapies offered, gross margin associated with the provision of complementary health therapies and low gross margin in the new operation in green energy.

Previous wording

Our operating expenses consist of selling expenses, commission expenses, general and administrative expenses. Total operating expenses were $1,722,591 for the six months ended June 30, 2025, increased by $148,486 or approximately 9.4% from $1,574,105 for the six months ended June 30, 2024.

Current wording

Our operating expenses consist of selling expenses, commission expenses, general and administrative expenses. Total operating expenses were $2,563,015 for the nine months ended September 30, 2025, increased by $256,615 or approximately 11.1% from $2,306,400 for the nine months ended September 30, 2024.

Previous wording

Selling expenses for the six months ended June 30, 2025 amounted to $125,591 as compared to $88,356 for the six months ended June 30, 2024, an increase of $37,235, or approximately 42.1%, mainly due to the increase in advertisement cost and marketing event related expenses. The Company’s selling expenses typically comprise ofsalaries and benefits expenses, credit card processing fees, advertisement and promotional expenses.

Current wording

Selling expenses for the nine months ended September 30, 2025 amounted to $187,214 as compared to $129,938 for the nine months ended September 30, 2024, an increase of $57,276, or approximately 44.1%, mainly due to the increase in advertisement cost and marketing event related expenses. The Company’s selling expenses typically comprise ofsalaries and benefits expenses, credit card processing fees, advertisement and promotional expenses.

Previous wording

Commission expenses were $16,019 and $7,335 for the three months ended June 30, 2025 and 2024, respectively, an increase of $8,684, or approximately 118.4%. The increase in commission expenses was due to the Company pays commission in Company’s network marketing business and the new revenue stream, the operation in wellness and wellbeing lifestyle.

Current wording

Commission expenses were $51,350 and $23,573 for the nine months ended September 30, 2025 and 2024, respectively, an increase of $27,777, or approximately 117.8%. The Company pays commission in Company’s network marketing business and the operation in wellness and wellbeing lifestyle. The increase in commission expenses was due to the increase in revenue from the operation in wellness and wellbeing lifestyle.

Previous wording

G&A expenses for the six months ended June 30, 2025 amounted to $1,573,036, as compared to $1,469,070 for the six months ended June 30, 2024, an increase of $103,966, or approximately 7.1%. The increase in G&A expenses was mainly due to the increase in G&A expenses in the new revenue stream, the operation in wellness and wellbeing lifestyle. The Company’s G&A expenses typically comprise ofsalaries and benefits expenses, rental expenses, professional expenses, depreciation expenses and other expenses.

Current wording

G&A expenses for the nine months ended September 30, 2025 amounted to $2,324,451, as compared to $2,152,889 for the nine months ended September 30, 2024, an increase of $171,562, or approximately 8.0%. The increase in G&A expenses was due to the increase in rental expenses and the operation in wellness and wellbeing lifestyle. The Company’s G&A expenses typically comprise ofsalaries and benefits expenses, rental expenses, professional expenses, depreciation expenses and other expenses.

Previous wording

For the six months ended June 30, 2025, the Company recorded an amount of $21,200 as other income, net, as compared to $58,392 for the six months ended June 30, 2024, represented a decrease of $37,192 or approximately 63.7%.

Current wording

For the nine months ended September 30, 2025, the Company recorded an amount of $28,347 as other income, net, as compared to $79,588 other income, net, for the nine months ended September 30, 2024, represented a decrease of $51,241 in other income, net, or approximately 64.4%.

Previous wording

The Company recorded provision for income taxes of $0 and $9,840 for the three months ended June 30, 2025 and 2024, respectively. The provision for income taxes were in respect of the Company’s operations in Malaysia.

Current wording

The Company recorded provision for income taxes of $1,196 and $13,803 for the nine months ended September 30, 2025 and 2024, respectively. The provision for income taxes were in respect of the Company’s operations in Malaysia.

Previous wording

Net loss increased by $200,755 from net loss of $1,135,410 for the six months ended June 30, 2024 to net loss of $1,336,165 for the six months ended June 30, 2025, mainly due to reasons as discussed above.

Current wording

Net loss increased by $272,086 from net loss of $1,659,449 for the nine months ended September 30, 2024 to net loss of $1,931,535 for the nine months ended September 30, 2025, mainly due to reasons as discussed above.

Previous wording

As of June 30, 2025, the Company had working capital of $23,149,202 consisting of cash and cash in bank of $215,973 and $0 of time deposit as compared to working capital of $1,656,571 consisted of cash and cash in bank of $240,243 and time deposits of $1,800,000 as of December 31, 2024. The Company had a net loss of $1,336,165 for the six months ended June 30, 2025 and accumulated deficits of $10,834,072 as of June 30, 2025 as compared to net loss of $2,486,044 for the year ended December 31, 2024 and accumulated deficits of $9,518,045 as of December 31, 2024.

Current wording

As of September 30, 2025, the Company had working capital of $22,585,047 consisting of cash and cash in bank of $133,714 and $0 of time deposit as compared to working capital of $1,656,571 consisted of cash and cash in bank of $240,243 and time deposits of $1,800,000 as of December 31, 2024. The Company had a net loss of $1,931,535 for the nine months ended September 30, 2025 and accumulated deficits of $11,420,899 as of September 30, 2025 as compared to net loss of $2,486,044 for the year ended December 31, 2024 and accumulated deficits of $9,518,045 as of December 31, 2024.

Previous wording

The following summarizes the key components of our cash flows for the six months ended June 30, 2025 and 2024:

Current wording

The following summarizes the key components of our cash flows for the nine months ended September 30, 2025 and 2024:

Previous wording

Net cash used in operating activities for the six months ended June 30, 2025 was $1,948,332, comprised of net loss of $1,336,165, unrealized holding gain on marketable securities of $6,652, the increase in prepaid taxes of $8,122, the increase in prepayments and deposits of $629,458, the decrease in account payable (including related parties) $24,194, the decrease in customer deposits of $7,492, the payment of operating lease liabilities of $76,876, the decrease in other payables (including related parties) and accrued liabilities of $126,373. The net cash used in operating activities was mainly offset by non-cash depreciation and amortization expense of $18,796, amortization of finance assets of $21,644, amortization of operating right-of-use assets of $76,465, inventory write off of $6,897 and allowance for credit loss $7,903, the decrease in accounts receivables of $25,479, the decrease in other receivables from related parties of $1,626, the decrease in inventories of $5,086, the decrease in other receivables of $1,812, and the increase in amount due to directors of $101,292.

Current wording

Net cash used in operating activities for the nine months ended September 30, 2025 was $2,205,074, comprised of net loss of $1,931,535, unrealized holding gain on marketable securities of $3,165, the increase in prepaid taxes of $3,767, the increase in prepayments and deposits of $452,749, the decrease in account payable (including related parties) of $20,785, the decrease in customer deposits of $4,211, the payment of operating lease liabilities of $117,172, the decrease in other payables (including related parties) and accrued liabilities of $98,348, the decrease of income tax payable of $4,601. The net cash used in operating activities was mainly offset by non-cash depreciation and amortization expense of $22,015, amortization of finance assets of $32,768, amortization of operating right-of-use assets of $116,549, inventory write off of $6,961 and allowance for credit loss $11,106, the decrease in accounts receivables of $37,284, the decrease in other receivables from related parties of $141, the decrease in inventories of $1,742, the decrease in other receivables of $2,517 and the increase in amount due to directors of $200,176.

Previous wording

Net cash used in operating activities for the six months ended June 30, 2024 was $1,656,000, comprised of net loss of $1,135,410, the increase in inventories of $6,747, the increase in prepaid taxes of $3,979, the increase in prepayments and deposits of $344,434, the increase in other receivables $1,470, the decrease in account payable (including related parties) $35,488, the decrease in customer deposits of $12,683, the payment of operating lease liabilities of $65,880, the decrease in other payables (including related parties) and accrued liabilities of $210,524. The net cash used in operating activities was mainly offset by non-cash depreciation and amortization expense of $27,683, amortization of finance assets of $8,519, amortization of operating right-of-use assets of $66,509, unrealized holding loss on marketable securities of $5,466, deferred tax benefit of $212, allowance for credit loss $16,960, the decrease in accounts receivables of $12,312, the decrease in other receivables (including related parties) of $6,723 and the increase of income tax payable of $16,231.

Current wording

Net cash used in operating activities for the nine months ended September 30, 2024 was $2,080,879, comprised of net loss of $1,659,449, gain on disposal of office equipment of $111, the increase in inventories of $6,473, the increase in prepaid taxes of $8,592, the increase in prepayments and deposits of $329,898, the increase in other receivables $949, the decrease in customer deposits of $16,349, the payment of operating lease liabilities of $102,605, the decrease in other payables (including related parties) and accrued liabilities of $186,986. The net cash used in operating activities was mainly offset by non-cash depreciation and amortization expense of $36,022, amortization of finance assets of $18,956, amortization of operating right-of-use assets of $103,187, unrealized holding loss on marketable securities of $6,642, deferred tax benefit of $218, allowance for credit loss $28,359, the decrease in accounts receivables of $6,353, the decrease in other receivables (including related parties) of $8,858, the increase in account payable (including related parties) $8,724, and the increase of income tax payable of $13,213.

Previous wording

Net cash used in investing activities for the six months ended June 30, 2025 was $23,000,660, which was mainly from advances for investment.

Current wording

Net cash used in investing activities for the nine months ended September 30, 2025 was $23,000,667, which was mainly from advances for investment.

Previous wording

Net cash used in investing activities for the six months ended June 30, 2024 was $3,567, which was due to purchase of equipment.

Current wording

Net cash used in investing activities for the nine months ended September 30, 2024 was $48,611, which was due to purchase of property and equipment of $48,722 and proceeds from disposal of office equipment $111.

Previous wording

Net cash provided by financing activities for the six months ended June 30, 2025 was $23,115,678, consisted of the proceeds from issuance of common stock for $23,000,000, reduction of finance lease liability of $10,955 and advance from director of $126,633.

Current wording

Net cash provided by financing activities for the nine months ended September 30, 2025 was $23,297,009, consisted of the proceeds from issuance of common stock for $23,000,000, reduction of finance lease liability of $16,710 and advance from director of $313,719.

Previous wording

Net cash used in financing activities for the six months ended June 30, 2024 was $2,847, which was the reduction of finance lease liability.

Current wording

Net cash used in financing activities for the nine months ended September 30, 2024 was $6,691, which was the reduction of finance lease liability.

Previous wording

Management reviews inventory on hand for estimated obsolescence or unmarketable items, as compared to future demand requirements and the shelf life of the various products. Based on the review, the Company records inventory write-downs, when necessary, when costs exceed expected net realizable value. For the six months ended June 30, 2025 and 2024, there were no inventory write-down; and $6,897 and $0 inventory write-off respectively.

Current wording

Management reviews inventory on hand for estimated obsolescence or unmarketable items, as compared to future demand requirements and the shelf life of the various products. Based on the review, the Company records inventory write-downs, when necessary, when costs exceed expected net realizable value. For the nine months ended September 30, 2025 and 2024, there were no inventory write-down, however, there were $6,961 and $0 inventory write-off respectively.

Previous wording

As of June 30, 2025 and December 31, 2024, the carrying amounts of operating right-of-use assets amounted to $158,715 and $224,595, respectively, and property, plant and equipment amounted to $16,988 and $31,463, receptively. No impairment losses on operating right-of-use assets and property, plant and equipment were recognized as of June 30, 2025 and December 31, 2024.

Current wording

As of September 30, 2025 and December 31, 2024, the carrying amounts of operating right-of-use assets amounted to $119,021 and $224,595, respectively, and property, plant and equipment amounted to $15,122 and $31,463, receptively. No impairment losses on operating right-of-use assets and property, plant and equipment were recognized as of September 30, 2025 and December 31, 2024.

Previous wording

The Company estimates and records an allowance for credit loss related to its accounts receivable. Credit losses are determined by Current Estimate of Expected Credit Losses model in accordance with Topic 326 – Financial Instruments – Credit Losses. For accounts receivable, the Company considers the age of the accounts receivable balances, credit quality of the Company’s customers based on ongoing credit evaluations, current economic conditions, reasonable and supportable forecasts of future economic conditions, and other factors that may affect the Company’s ability to collect from customers. As of June 30, 2025 and December 31, 2024, the Company recognize an allowance for credit loss of $42,838 and $32,857, respectively.

Current wording

The Company estimates and records an allowance for credit loss related to its accounts receivable. Credit losses are determined by Current Estimate of Expected Credit Losses model in accordance with Topic 326 – Financial Instruments – Credit Losses. For accounts receivable, the Company considers the age of the accounts receivable balances, credit quality of the Company’s customers based on ongoing credit evaluations, current economic conditions, reasonable and supportable forecasts of future economic conditions, and other factors that may affect the Company’s ability to collect from customers. As of September 30, 2025 and December 31, 2024, the Company recognize an allowance for credit loss of $6,559 and $32,857, respectively.