EPWK (EPWK) Registration Filing summary

Company overview and business model

• Operates the second largest online crowdsourcing marketplace in China, connecting businesses and service providers for design, IT, marketing, and other services, with over 26 million registered users as of December 31, 2024.

• Platform enabled $1.85 billion in GMV from 2019–2024, with 994,100 projects and $350 million GMV in 2024.

• Revenue streams include premium business solutions, online promotion, value-added services, and shared office rental/management.

• Business is conducted through a VIE structure due to PRC restrictions on foreign ownership in internet technology sectors.

Financial performance and metrics

• Revenue for the year ended June 30, 2024: $20.22 million (up 2.1% YoY); net loss: $1.20 million (2023: $1.08 million net loss).

• For the six months ended December 31, 2024: revenue $8.48 million, net loss $484,013 (2023: net income $20,263).

• Gross margin declined to 16.4% for the six months ended December 31, 2024, due to increased low-margin premium business solutions revenue.

• As of December 31, 2024: total assets $4.75 million, total liabilities $12.39 million, accumulated deficit $19.35 million.

• Negative operating cash flow for the year ended June 30, 2024: $(1.62) million.

Use of proceeds and capital allocation

• Net proceeds will be used approximately as follows: 30% for AI R&D and platform upgrades, 25% for international expansion, 25% for innovative service ecosystems, and 20% for general working capital.

• No current plans to pay dividends; future earnings intended for reinvestment and business expansion.