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EPWK Holdings (EPWK) investor relations material
EPWK Holdings Registration Filing summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Company overview and business model
Operates the second largest online crowdsourcing marketplace in China, connecting businesses (buyers) and service providers (sellers) for a wide range of digital services, including design, software development, marketing, and business support.
As of December 31, 2024, the platform had over 26.12 million registered users, 8.91 million buyers, and 17.22 million sellers, covering all 34 provinces in China.
The company is a Cayman Islands holding entity; operations are conducted through PRC subsidiaries and a variable interest entity (VIE) structure due to Chinese restrictions on foreign ownership in internet and telecom sectors.
Revenue streams include premium business solutions, online promotion, value-added services, and shared office rental/management.
Financial performance and metrics
For the year ended June 30, 2024: revenue was $20.22 million, net loss was $1.20 million; for 2023: revenue was $19.8 million, net loss was $1.08 million.
For the six months ended December 31, 2024: revenue was $8.48 million, net loss was $484,013; for the same period in 2023: revenue was $8.53 million, net income was $20,263.
Gross margin decreased to 16.37% for the six months ended December 31, 2024, from 28.83% in the same period of 2023, mainly due to a higher proportion of low-margin premium business solutions.
As of December 31, 2024, total assets were $4.75 million, total liabilities $12.39 million, and accumulated deficit $19.35 million.
The company has a working capital deficit and negative cash flows from operations, raising substantial doubt about its ability to continue as a going concern.
Use of proceeds and capital allocation
Estimated net proceeds of $8.9 million (assuming full offering and no warrant exercise), with intended use: 30% for AI R&D and platform upgrades, 25% for international expansion, 25% for innovative service ecosystems, and 20% for general working capital.
No proceeds are expected from warrant exercises due to the zero exercise price option.
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