Alset Inc. Reports 82% Revenue Decline and $9.50 Million Net Loss in Q1 2025

Alset Inc. reported a significant decline in financial performance for the first quarter of 2025, with total revenue of $1.07 million, a decrease of approximately 82% from $6.09 million in the same period of 2024. The company's rental revenue fell slightly to $717,805 from $720,494, while property revenue, which was previously $5.03 million, was not reported in the current quarter. Other revenue sources, including biohealth and miscellaneous income, contributed $350,498, up from $332,678 in the prior year. The company incurred a net loss of $9.50 million, compared to a loss of $7.31 million in the first quarter of 2024, reflecting a worsening financial situation.

In terms of operational changes, Alset Inc. has seen a reduction in total assets, which decreased from $96.76 million at the end of 2024 to $90.46 million as of March 31, 2025. This decline was primarily driven by a decrease in cash and cash equivalents, which fell to $25.19 million from $27.24 million. The company also reported a decrease in total liabilities from $6.56 million to $5.65 million, indicating a reduction in financial obligations. The stockholders' equity also decreased to $84.81 million from $90.20 million, largely due to the net loss attributable to common stockholders.

Strategically, Alset Inc. has made notable changes, including the issuance of 1.5 million shares of common stock, which raised approximately $2.61 million. The company also reported an increase in additional paid-in capital, which rose to $336.32 million from $334.02 million. However, the company continues to face challenges with its investments, particularly in securities, where unrealized losses on investments were significant, amounting to $3.80 million for the quarter. The company has also been involved in various joint ventures and acquisitions, including the acquisition of LEH Insurance Group LLC, although the impact of these activities on overall performance remains to be seen.

Alset Inc. has indicated that it is focusing on improving its operational efficiency and exploring new market opportunities, particularly in the Asia-Pacific region. The company is actively managing its investments and is looking to enhance its product offerings in the biohealth and digital transformation sectors. Despite the current financial challenges, Alset Inc. remains committed to its long-term growth strategy and aims to stabilize its financial position in the coming quarters. The management has expressed cautious optimism about future performance, contingent on market conditions and the successful execution of its strategic initiatives.