Agape ATP Corp

Previous wording

We generated revenue of $289,037, which comprised revenue from the Company’s network marketing business of $26,547 (approximately 9.2% of revenue); and revenue from the Company’s operations in the provision of complementary health therapies of $252,246 (approximately 87.3% of revenue); $8,679 from skin care and healthcare products (approximately 3.0% of revenue) and $1,565 from the operation in green energy (approximately 0.5% of revenue) for the three months ended March 31, 2025 as compared to $318,643, which comprised revenue from the Company’s network marketing business of $37,079 (approximately 11.6% of revenue); and revenue from the Company’s operations in the provision of complementary health therapies of $281,564 (approximately 88.4% of revenue) for the three months ended March 31, 2024. Revenue from the Company’s network marketing business decreased by $10,532 or approximately 28.4%. Revenue from the Company’s operations in the provision of complementary health therapies decreased by $29,318 or approximately 10.4%, new revenue streams $8,679 from the Company’s operations in wellness and wellbeing lifestyle and $1,565 from the operation in green energy. Total revenue decreased by $29,606 or approximately 9.3%.

Current 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%.

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 aim 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 customer.

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.

Previous wording

Cost of revenue for the three months ended March 31, 2025 amounted to $132,751 as compared to $115,223 for the three months ended March 31, 2024, represented an increase of $17,528 or approximately 15.2%. The increase was due to the inventory write off in the Company’s network marketing business; and the varying gross profit margins in the Company’s operations in the provision of complementary health therapies.

Current 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.

Previous wording

Our operating expenses consist of selling expenses, commission expenses and general and administrative expenses.

Current 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.

Previous wording

Commission expenses were $7,945 and $9,344 for the three months ended March 31, 2025 and 2024, respectively. The decrease in commission expenses was in line with the decrease in revenue in the Company’s network marketing business.

Current 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.

Previous wording

G&A expenses for the three months ended March 31, 2025 amounted to $805,693, as compared to $867,266 for the three months ended March 31, 2024, represented a decrease of $61,573 or approximately 7.1%. The decrease in G&A expenses was mainly due to the decrease in company event and activities. 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 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.

Previous wording

The net other income of $27,282 recorded during the three months ended March 31, 2024 comprised of other income of $4,142, interest income of $22,809, unrealized holding gain on marketable securities of $1,173 and foreign currency exchange loss of $842.

Current wording

The net other income of $13,715 generated during the three months ended June 30, 2025 comprised of other income, net of $6,387, interest income of $153, unrealized holding gain on marketable securities of $7,748 and foreign currency exchange loss of $573.

Previous wording

The Company recorded provision for income taxes of $0 and $6,838 for the three months ended March 31, 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 $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.

Previous wording

Net loss increased by $9,825 from net loss of $703,094 for the three months ended March 31, 2024 to net loss of $712,919 for the three months ended March 31, 2025, mainly due to reasons as discussed above.

Current 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.

Previous wording

Gross profit for the three months ended March 31, 2025 amounted to $156,286, represented a gross margin of 54.1% as compared to $203,420 for the three months ended March 31, 2024, equivalent to a gross margin of 63.8%. The decrease in gross margin was due to the inventory write off in the Company’s network marketing business and the varying type of health therapies offered, gross margin associated with the provision of complementary health therapies.

Current 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.

Previous wording

Selling expenses for the three months ended March 31, 2025 amounted to $63,052 as compared to $50,348 for the three months ended March 31, 2024, represented an increase of $12,704 or approximately 25.2%, mainly due to the increase in advertisement cost. 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 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.

Previous wording

As of March 31, 2025, the Company had working capital of $23,775,576 consisting of cash and cash in bank of $277,507 and time deposits of $301,287 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 $712,919 for the three months ended March 31, 2025 and accumulated deficits of $10,216,994 as of March 31, 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 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.

Previous wording

The following summarizes the key components of our cash flows for the three months ended March 31, 2025 and 2024:

Current wording

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

Previous wording

Net cash used in operating activities for the three months ended March 31, 2025 was $1,453,874, and were mainly comprised of the net loss of $712,919, the decrease in accounts receivables of $4,366, the decrease in inventories of $2,898, the decrease in other receivable of $1,697, increase in other receivables from related parties of $2,194, increase in prepaid taxes of $3,990, increase in prepayments and deposits of $581,028, decrease in accounts payables (including related parties) of $33,333, the decrease in customer deposits of $6,246, the payment of operating lease liabilities of $37,518, the decrease in other payables (including related parties) and accrued liabilities of $163,419. The net cash used in operating activities was mainly offset by non-cash depreciation and amortization expense of $13,709, amortization of finance assets of $10,634, amortization of operating right-of-use assets of $37,316, allowance for credit lossof $8,280, inventory write off of $6,777, unrealized holding loss on marketable securities of $1,096.

Current 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.

Previous wording

Net cash used in operating activities for the three months ended March 31, 2024 was $1,243,460, and were mainly comprised of the net loss of $703,094, the non-cash unrealized holding gain on marketable securities of $1,173, the increase in inventories of $10,246, increase in prepaid taxes of $2,797, the increase in prepayments and deposits of $354,839, the decrease in accounts receivables of $16,227, the decrease in other receivables of $5,677 (including related parties), and the increase of income tax payable of $6,626, decrease in accounts payables (including related parties) of $29,757, the decrease in customer deposits of $526, the payment of operating lease liabilities of $32,630, the decrease in other payables (including related parties) and accrued liabilities of $188,182. The net cash used in operating activities was mainly offset by non-cash depreciation and amortization expense of $13,779, amortization of operating right-of-use assets of $33,007, amortization of finance assets of $4,256, deferred tax benefit of $212.

Current 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.

Previous wording

Net cash used in investing activities for the three months ended March 31, 2025 was $23,000,649, which was mainly from advances for investment.

Current 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.

Previous wording

Net cash provided by financing activities for the three months ended March 31, 2025 was $22,994,658, which was the reduction of finance lease liability.

Current 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.

Previous wording

Net cash used in financing activities for the three months ended March 31, 2024 was $899, which was the reduction of finance lease liability.

Current 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.

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 three months ended March 31, 2025 and 2024, there were no inventory write-down; and $6,777 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 six months ended June 30, 2025 and 2024, there were no inventory write-down; and $6,897 and $0 inventory write-off respectively.

Previous wording

As of March 31, 2025 and December 31, 2024, the carrying amounts of operating right-of-use assets amounted to $189,059 and $224,595, and property, plant and equipment amounted to $19,810 and $31,463. No impairment losses on operating right-of-use assets and property, plant and equipment were recognized as of March 31, 2025 and December 31, 2024.

Current 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.

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 March 31, 2025 and December 31, 2024, the Company recognize an allowance for credit loss of $41,360 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 June 30, 2025 and December 31, 2024, the Company recognize an allowance for credit loss of $42,838 and $32,857, respectively.

Previous wording

The Company offers various coupon programs to customers, which result in the potential redemption of coupons against future purchases. The estimation of coupon redemption requires assumptions. This estimate is based on historical redemption patterns, customer behaviour trends, and the terms and conditions of the coupon programs. Management considers factors such as the type of coupon, the period of validity that could influence redemption rates. The Company makes estimates about the likelihood and timing of coupon redemptions, which may vary based on changing customer behaviour and economic conditions. If the actual redemption rate differs from the estimated rate, it could impact the redemption liability and related expenses in future periods. The allowance for coupon redemption is regularly reviewed and adjusted as more information becomes available to ensure that it reflects the expected redemption accurately.

Current wording

The Company offers various coupon programs to customers, which result in the potential redemption of coupons against future purchases. The estimation of coupon redemption requires assumptions. This estimate is based on historical redemption patterns, customer behavior trends, and the terms and conditions of the coupon programs. Management considers factors such as the type of coupon, the period of validity that could influence redemption rates. The Company makes estimates about the likelihood and timing of coupon redemptions, which may vary based on changing customer behavior and economic conditions. If the actual redemption rate differs from the estimated rate, it could impact the redemption liability and related expenses in future periods. The allowance for coupon redemption is regularly reviewed and adjusted as more information becomes available to ensure that it reflects the expected redemption accurately.

Previous wording

Except for the above-mentioned pronouncements, there are no new recent issued accounting standards that will have a material impact on the unaudited consolidated financial position, statements of operations and cash flows.

Current wording

Except for the above-mentioned pronouncements, there are no other new recent issued accounting standards that will have a material impact on the consolidated financial position, statements of operations and cash flows.