Exceed World, Inc. reported a significant decline in financial performance for the six months ending March 31, 2025, as detailed in its latest 10-Q filing. The company generated revenues of $5.32 million, a decrease of 52.5% compared to $11.19 million during the same period in 2024. The decline in revenue is attributed primarily to reduced recruitment activities for premium members of its Force Club membership program. The company also reported a net loss of $2.61 million for the six months, compared to a loss of $441,188 in the prior year, indicating a substantial deterioration in profitability.
In terms of operational metrics, Exceed World experienced a notable increase in advertising expenses, which rose to $562,723 for the six months ended March 31, 2025, compared to $224,428 in the same period last year. This increase reflects the company's efforts to enhance promotional activities aimed at attracting new customers. Additionally, research and development expenses decreased significantly to $1.34 million from $2.23 million, as the company transitioned its Connector Plan project into the application development stage.
The company’s cash position also saw a decline, with cash and restricted cash totaling $11.90 million as of March 31, 2025, down from $18.99 million a year earlier. This reduction in cash reserves is linked to negative cash flows from operations amounting to $3.71 million, contrasting with positive cash inflows of $1.28 million in the previous year. The working capital decreased to $8.74 million from $13.80 million, reflecting the challenges faced in maintaining liquidity amid declining revenues.
Exceed World continues to focus on its strategic initiatives, including expanding its sales network and enhancing value-added services for premium members. The company operates primarily in Japan, where it generates most of its revenue. Looking ahead, Exceed World aims to stabilize its operations and improve its financial performance by leveraging its existing customer base and exploring new market opportunities. The management remains cautious about the economic conditions and competitive landscape that could impact future results.
About Exceed World, Inc.
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