FY2025 summary performance guidance of $49.1 million Revenue, $17.8 million Gross Profit and $0.8 million Management Adjusted EBITDA
Performance highlights strength in our Technology and Digital Studio business units offset by pressure in our Media & Branded Content business unit as a result of industry-wide AI SEO shifts, stable Gross Profit margin and expanding Management Adjusted EBITDA margin driven by cost reduction initiatives
Key capital structure milestones and new capital raised include repayment of our $4.7 million outstanding convertible note balance, $2.15 million in common equity and $375,000 in convertible notes raised from existing shareholders and new private investors, $1.5 million through a new convertible note from 3i at improved terms including 18-month maturity and 6-month interest and amortization holiday, and amendments to our existing outstanding ELOC agreement with Tumin Stone with improved terms to allow for more efficient and lower-cost strategic use of this instrument at our sole discretion
Several significant new strategic partnerships signed in the year including CMoney, Taiwan's largest stock information and financial education platform serving over 10 million active users each month; PChome, one of Asia's largest e-commerce platforms similar to an Amazon; and Geniee to expand access to advertising creative solution "Cr.ED", a data-powered creative platform and SaaS service that helps marketers create rich and engaging interactive digital advertisements more efficiently, among others
Large and active investor conference and event hosting calendar with some key wins including TechGALA Japan 2025 and appointment as Lead Partner for TechGALA Japan 2026; hosting 2025 Becoming Aces Awards and Launch of "Rising Star in Digital Impact" with 91APP Foundation; hosting INSIDE Future Day 2025 "Next-Gen AI Agents: Building a New Era of Human-AI Collaboration"; and co-hosting 2025 Generative AI Conference
Several key initiatives were launched in the year to better position the Company competitively on a revenue and cost and basis including continued diversification into Technology, Digital Studio and new media verticals; expanding proven successful media properties into new language markets with our multilingualization strategy; hiring and promoting key C-level and editorial talent; and continued strong progress on staff restructuring and reorganization efforts that we expect to bring significant cost savings
Dear Shareholders,
As we conclude 2025, we want to give an update on some notable developments at the Company as well as look back at key milestones achieved throughout this transformative year, and we will also highlight some of our plans for the year ahead.
FY2025 Summary Performance Guidance
We are issuing the following summary performance guidance for FY2025:
Revenue: $49.1 million, revenue growth driven by Technology and Digital Studio business unit performance, Media & Branded Content business unit expected to be flat or slightly down year-on-year as a result of industry-wide AI SEO impacts
Gross Profit: $17.8 million, Gross Profit margin in the range of 36-37%, in-line with FY2024
Management Adjusted EBITDA*2: $0.8 million, expected to exceed FY2024, driven by cost efficiency and cost reduction initiatives
Public Company Costs: projected at approximately $3.75m to $4m
FY2025 performance highlights the bifurcation between strength in our Technology and Digital Studio business units as they continue to experience growth and expansion, offset by our Media & Branded Content business unit that has been pressured by industry-wide AI SEO shifts.
Our Gross Profit is expected to remain approximately in line with FY2024, while our Management Adjusted EBITDA, which adjusts for the impact of public company costs to enhance comparability with FY2024, is expected to exceed FY2024 as a result of the implementation of our cost efficiency and cost reduction initiatives. We expect FY2025 to be our first year of Management Adjusted EBITDA profitability which is an important and exciting milestone for us.
Capital Structure Improvements & New Capital Raised
We recently announced key updates on the Company's capital structure and funding:
Repaid the outstanding balance of our convertible note with the initial principal of $4.7 million which we took on in December 2024 to help pay our closing costs in connection with our NASDAQ listing
Raised $2.15 million in common equity and $375,000 in convertible notes during 2025 from existing shareholders and new private investors including David Chu, the Taiwanese American founder of Nautica and former design head for Tumi and George Jenson, among others
Raised $1.5 million through a new convertible note from 3i at improved terms including 18-month maturity and 6-month interest and amortization holiday
Amended our existing outstanding ELOC agreement with Tumin Stone with improved terms to allow for more efficient and lower-cost strategic use of this instrument at our sole discretion
These updates enhance our financial flexibility and reduce dilution pressure on our stock price. We now benefit from a simpler capital structure that better fits our operational needs and strategic goals.
New Strategic Partnerships Drive Commerce Revenue & Retail Media Network Growth
On the business development front, we have signed several new and significant strategic partnerships that we believe will position us well in the commerce ...
