10-K: Jocom Holdings Corp. Reports Net Profit for Fiscal Year Ended December 31, 2024, Despite Ongoing Concerns

Jocom Holdings Corp. reports a net profit of $68,519 for the year ended December 31, 2024, a significant improvement from the previous year's net loss, but faces going concern uncertainties.

Summary

• Jocom Holdings Corp., a Nevada corporation operating through its Malaysian subsidiary, announced its financial results for the year ended December 31, 2024.
• The company reported revenue of $24,000, consistent with the $24,000 generated in 2023, primarily from data analytic services provided to a related party, Jocom Mshopping Sdn Bhd.
• The company achieved a net profit of $68,519 for 2024, a notable turnaround from the $156,891 net loss in 2023.
• This improvement is attributed to foreign currency variations of $51,301 and a reversal of doubtful debts amounting to $80,373.
• General and administrative expenses decreased from $217,123 in 2023 to $87,155 in 2024.
• As of December 31, 2024, the company's cash and cash equivalents stood at $2,481, a significant increase from $134 at the end of 2023.
• The company's accumulated losses decreased from $713,047 to $644,528.
• The financial statements have been prepared on a going concern basis, despite the company's accumulated deficit of $644,528 and a capital deficiency of $68,561, raising substantial doubt about its ability to continue as a going concern.
• Management is relying on improved profitability and continued financial support from shareholders to address these concerns.

Sentiment

Score: 6

Explanation: The document presents a mixed sentiment. While the company achieved a net profit and improved its financial position, the going concern warning and reliance on related-party revenue raise concerns.

Positives

• The company achieved a net profit of $68,519 in 2024, a significant improvement from the $156,891 net loss in 2023.
• Cash and cash equivalents increased substantially to $2,481.
• General and administrative expenses were significantly reduced, indicating improved cost management.
• The company successfully reversed over accruals of operating expenses and provision of doubtful debt.
• The company generated other income of $131,674 which $51,301 is from foreign currency variations and $80,373 is from reversal of doubtful debts.

Negatives

• The company has an accumulated deficit of $644,528 and a capital deficiency of $68,561.
• The financial statements are prepared on a going concern basis, indicating uncertainty about the company's ability to continue operating.
• Revenue remains low at $24,000 for the year, primarily from a related party.
• The company relies on continued financial support from shareholders to meet its obligations.

Risks

• The company's ability to continue as a going concern is uncertain due to its accumulated deficit and capital deficiency.
• The company is dependent on financing activities to meet its working capital requirements.
• The company faces risks related to economic conditions, competition, and changes in laws and regulations.
• The company acknowledges the crucial necessity of establishing, executing, and sustaining strong cybersecurity measures to secure our information systems.
• The company's disclosure controls and procedures were not effective due to the presence of material weaknesses in internal control over financial reporting.

Future Outlook

The company plans to expand its software solution to cover the logistic segment by developing a logistic prediction algorithm and intends to eventually develop into a full-fledged m-commerce (Mobile commerce) platform specialized in online groceries and shopping.

Industry Context

The company operates in the e-commerce and data analytics sectors, which are experiencing growth, particularly in Southeast Asia. The company intends to provide a total integrated solution that protects both consumers and vendors.

Comparison to Industry Standards

• It is difficult to compare Jocom Holdings Corp.'s results directly to industry standards due to its unique business model and small size.
• Companies like Shopify, WooCommerce, Amazon and Etsy are mentioned as e-commerce platforms.
• DHL, FedEx, and post offices are mentioned as 3rd party logistics providers.
• The company's reliance on a single related-party client is not typical and poses a risk.

Related Party Transactions

• The company generated revenue of $6,000 and $24,000 from a related party, Jocom Mshopping Sdn. Bhd., for the years ended December 31, 2024 and 2023, respectively.
• The company leased office space from Ms. Chua Hwee Ping, the Chief Financial Officer, President, Secretary, Treasurer and Director.
• Expenses of $9,270 were paid for by our directors, Ms. Chua Hwee Ping and Mr. Sew Wen Chean as of December 31, 2022.
• A deposit of $579 was made by our director, Ms. Chua Hwee Ping, for opening a Company bank account as of December 31, 2021.

Stakeholder Impact

• Shareholders: The net profit is a positive sign, but the going concern warning may cause concern.
• Employees: The company plans to hire full time management, technical and administrative support personnel as the business and operations increase.
• Customers: The company intends to provide a total integrated solution that protects both consumers and vendors.

Next Steps

• The company plans to expand its services to additional customers and to customers in other geographic regions in Southeast Asia.
• The company plans to expand its software solution to cover the logistic segment by developing a logistic prediction algorithm.
• The company intends to introduce Facebook campaigns and various online advertisement to promote our services.
• The company plans to introduce vouchers, a loyalty program, bulk purchases, discount campaigns and other strategies that would increase awareness of our brand.

Key Dates

Keywords

financial results, data analytics, e-commerce, going concern, Jocom Holdings, JOCOM AI Smart Platform