UPAY, Inc. reported a significant decline in financial performance for the fiscal year ending February 28, 2025, with revenues totaling $715,269, down from $1,394,408 in the previous year. This decrease of $679,139 was primarily attributed to the loss of a major customer that had previously contributed a substantial portion of the company's revenue. Despite the drop in revenue, UPAY managed to reduce its net loss to $540,062 from $726,191 in the prior year, reflecting a decrease in operating expenses due to cost-control measures.
The company has undergone several strategic developments, including the acquisition of a controlling interest in AML GO (Pty) Ltd, a compliance software provider in South Africa, and the full ownership of Huntpal LLC, which expands UPAY's digital marketplace into the adventure travel sector. These acquisitions are expected to enhance UPAY's capabilities in anti-money laundering compliance and broaden its service offerings in the U.S. and African markets. Additionally, AML GO launched a new web-based AML screening portal, which is anticipated to meet growing compliance demands in Southern Africa.
Operationally, UPAY's customer base has been affected by the loss of key clients, with revenues concentrated among two customers, accounting for 41% of total revenue. The company reported a working capital deficit of $386,487 as of February 28, 2025, compared to $229,865 the previous year. UPAY's employee headcount remains at 16, with plans to hire additional staff contingent on revenue growth and funding availability. The company is focusing its sales efforts in Southern Africa while exploring potential expansion opportunities in the U.S.
Looking ahead, UPAY anticipates operating costs of approximately $620,000 from June 2025 to the end of the fiscal year, with monthly cash needs estimated at $31,000. The company plans to meet these needs through its current cash position and ongoing operations in South Africa, although it acknowledges the uncertainty in generating sufficient revenues to cover these costs. Management's forward-looking statements indicate a cautious approach, emphasizing the need for adequate funding to support future growth and operational stability.
About UPAY
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