Starbox Group Holdings Ltd. Announces Financial Results for Fiscal Year 2022 - Revenue Increases By 127.2% and Net Income Increases By 148.8%
Starbox Group Holdings Ltd. (Nasdaq: STBX) reported significant financial growth for fiscal year 2022, with total revenue reaching $7.2 million, a remarkable 127.2% increase from $3.2 million in fiscal year 2021. Net income surged 148.8% to $3.6 million. The company saw a boost in its digital advertising and cash rebate services, with the number of advertisers growing from 25 to 63. Cash from financing activities also rose substantially to $18.0 million. However, operating costs increased by 118.6% to $2.2 million, driven by higher employee expenses and professional fees, which could impact future profitability.
- Revenue increased to $7.2 million, up 127.2% from $3.2 million in FY 2021.
- Net income rose to $3.6 million, a 148.8% increase from $1.4 million in FY 2021.
- Significant growth in digital advertising revenue, which was $7.2 million, up 127.1%.
- Number of advertisers increased to 63 from 25 year-over-year.
- Operating costs jumped 118.6% to $2.2 million, impacting profit margins.
- Net cash used in operating activities was $1.2 million, compared to a positive $1.9 million in FY 2021.
- Substantial increase in professional and consulting service fees, which rose by $401,455.
Mr.
Fiscal Year 2022 Financial Highlights
- Total revenue was
$7.2 million 127.2% from$3.2 million - Income from operations was
$5.0 million 131.3% from$2.1 million - Net income was
$3.6 million 148.8% from$1.4 million
Fiscal Year 2022 Operational Highlights
- Number of advertisers was 63 as of
September 30, 2022 , compared to 25 as ofSeptember 30, 2021 . - Number of members on the GETBATS website and mobile app was 2,513,658 as of
September 30, 2022 , compared to 514,167 as ofSeptember 30, 2021 . - Number of Merchants on the GETBATS website and mobile app was 820 as of
September 30, 2022 , compared to 723 as ofSeptember 30, 2021 . - Number of transactions facilitated through GETBATS website and mobile app was 338,940 as of
September 30, 2022 , compared to 295,393 as ofSeptember 30, 2021 .
Fiscal Year 2022 Financial Results
Revenues
Total revenue was
- Revenue from digital advertising service was
$7.2 million 127.1% from$3.1 million - Revenue from cash rebate services was
$10,562 70.0% from$6,214 - Revenue from payment solution services was
$9,575 540.9% from$1,494
Operating Cost
Operating costs were
- Salary and employee benefit expenses were
$429,924 $237,943 $191,981 - Professional and consulting service fees were
$767,229 $401,455 $365,774 - Marketing and promotional expenses were
$188,338 $20,535 $167,803 - License costs were
$55,000 $5,000 $50,000 - Website and facility maintenance expenses were
$292,579 $106,822 $185,757 - Utility and office expenses were
$144,735 million $125,550 $19,185 September 2021 . - Depreciation and amortization expenses were
$161,267 $103,699 $2,568 - Business travel and entertainment expenses were
$67,836 $61,833 $6,003 - Others were
$164,619 $154,574 $37,268 $54,986 $24,251 $21,656
Provision for Income Taxes
Provision for income taxes was
Net Income
Net income was
Basic and Diluted Earnings per Share
Basic and diluted earnings per share was
Balance Sheet
As of
Cash Flow
Net cash used in operating activities was
Net cash used in investing activities was
Net cash provided by financing activities was
About
Headquartered in
Forward-Looking Statements
Certain statements in this announcement are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on the Company's current expectations and projections about future events that the Company believes may affect its financial condition, results of operations, business strategy and financial needs. Investors can identify these forward-looking statements by words or phrases such as "approximates," "assesses," "believes," "hopes," "expects," "anticipates," "estimates," "projects," "intends," "plans," "will," "would," "should," "could," "may" or similar expressions. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company's registration statement and other filings with the
For more information, please contact:
Investor Relations Department
Email: ir@starboxholdings.com
Phone: +1 917-609-0333
Email: tina.xiao@ascent-ir.com
CONSOLIDATED BALANCE SHEETS | ||||||||
As of | ||||||||
2022 | 2021 | |||||||
ASSETS | ||||||||
CURRENT ASSETS | ||||||||
Cash | $ | 17,778,896 | $ | 2,295,277 | ||||
Accounts receivable, net | 2,032,717 | 1,362,417 | ||||||
Due from related party | 1,473 | - | ||||||
Prepaid expenses and other current assets | 4,269,611 | 40,001 | ||||||
TOTAL CURRENT ASSETS | 24,082,696 | 3,697,695 | ||||||
Property and equipment, net | 13,380 | 12,176 | ||||||
Intangible assets, net | 903,768 | - | ||||||
Right-of-use assets, net | 42,574 | 305,264 | ||||||
TOTAL NONCURRENT ASSETS | 959,722 | 317,440 | ||||||
TOTAL ASSETS | $ | 25,042,418 | $ | 4,015,135 | ||||
LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIT) | ||||||||
CURRENT LIABILITIES | ||||||||
Deferred revenue | $ | - | $ | 800,492 | ||||
Taxes payable | 1,404,128 | 874,834 | ||||||
Due to related parties | 7,361 | 756,478 | ||||||
Operating lease liabilities, current | 15,833 | 72,362 | ||||||
Accrued expenses and other current liabilities | 541,050 | 16,834 | ||||||
TOTAL CURRENT LIABILITIES | 1,968,372 | 2,521,000 | ||||||
Operating lease liabilities, non-current | 26,741 | 232,902 | ||||||
Total Liabilities | 1,995,113 | 2,753,902 | ||||||
COMMITMENTS AND CONTINGENCIES | ||||||||
SHAREHOLDERS' EQUITY | ||||||||
Preferred shares, | - | - | ||||||
Ordinary common shares, | 51,047 | 45,000 | ||||||
Additional paid-in capital | 18,918,303 | 155,024 | ||||||
Retained earnings | 4,685,007 | 1,082,642 | ||||||
Accumulated other comprehensive loss | (607,052) | (21,433) | ||||||
TOTAL SHAREHOLDERS' EQUITY | 23,047,305 | 1,261,233 | ||||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 25,042,418 | $ | 4,015,135 | ||||
* | Retrospectively restated for the effect of a 1-for-11.25 reverse split of the preferred and ordinary shares (see Note 7). |
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) | |||||||||||
For the years ended | |||||||||||
2022 | 2021 | 2020 | |||||||||
OPERATING REVENUE | |||||||||||
Revenue from digital advertising services | $ | 7,174,050 | $ | 3,158,520 | $ | 153,145 | |||||
Revenue from cash rebate services | 10,562 | 6,214 | 718 | ||||||||
Revenue from payment solution services-related party | 9,575 | 1,494 | - | ||||||||
Total operating revenue | 7,194,187 | 3,166,228 | 153,863 | ||||||||
OPERATING COSTS | |||||||||||
Cost, selling, general and administrative expenses | 2,243,750 | 1,026,339 | 344,026 | ||||||||
Total operating costs | 2,243,750 | 1,026,339 | 344,026 | ||||||||
INCOME (LOSS) FROM OPERATIONS | 4,950,437 | 2,139,889 | (190,163) | ||||||||
OTHER INCOME | 59,377 | 166 | - | ||||||||
INCOME (LOSS) BEFORE INCOME TAX PROVISION | 5,009,814 | 2,140,055 | (190,163) | ||||||||
PROVISION FOR INCOME TAXES | 1,407,449 | 692,405 | 14,991 | ||||||||
NET INCOME (LOSS) | 3,602,365 | 1,447,650 | (205,154) | ||||||||
OTHER COMPREHENSIVE INCOME (LOSS) | |||||||||||
Foreign currency translation adjustment | (585,619) | (19,063) | (1,829) | ||||||||
COMPREHENSIVE INCOME (LOSS) | $ | 3,016,746 | $ | 1,428,587 | $ | (206,983) | |||||
Earnings (loss) per ordinary common share- basic and diluted | $ | 0.09 | $ | 0.04 | $ | (0.01) | |||||
Weighted average number of ordinary common shares- basic and diluted | 40,544,863 | 40,000,000 | 40,000,000 | ||||||||
| ||||||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||||
For the years ended | ||||||||||||
2022 | 2021 | 2020 | ||||||||||
Cash flows from operating activities | ||||||||||||
Net income (loss) | $ | 3,602,365 | $ | 1,447,650 | $ | (205,154) | ||||||
Adjustments to reconcile net income to cash and restricted cash provided by | ||||||||||||
Depreciation and amortization | 161,267 | 2,568 | 1,948 | |||||||||
Amortization of right-of-use operating lease assets | 56,690 | 7,274 | - | |||||||||
Changes in operating assets and liabilities: | ||||||||||||
Accounts receivable | (864,099) | (1,100,053) | (277,543) | |||||||||
Prepaid expenses and other current assets | (4,754,970) | (39,190) | (1,387) | |||||||||
Deferred revenue | (778,701) | 688,979 | 120,961 | |||||||||
Taxes payable | 661,359 | 870,528 | 17,195 | |||||||||
Operating lease liabilities | (56,690) | (7,274) | - | |||||||||
Accrued expenses and other current liabilities | 740,415 | 13,413 | 1,632 | |||||||||
Net cash provided by (used in) used in operating activities | (1,232,364) | 1,883,895 | (342,348) | |||||||||
Cash flows from investing activities | ||||||||||||
Purchase of fixed assets | (6,669) | (5,203) | (8,198) | |||||||||
Purchase of intangible assets | (1,129,260) | - | - | |||||||||
Cash advances to a related party | - | (387,945) | - | |||||||||
Collection of cash advances from a related party | - | 387,945 | - | |||||||||
Net cash used in investing activities | (1,135,929) | (5,203) | (8,198) | |||||||||
Cash flows from financing activities | ||||||||||||
Capital contribution by shareholders | - | 200,000 | - | |||||||||
Payment for deferred initial public offering costs and underwriter | (2,730,674) | - | - | |||||||||
Gross proceeds from issuance of Ordinary Shares in initial public | 21,500,000 | - | - | |||||||||
Proceeds from (Repayment to) related party borrowings | (729,521) | (125,875) | 707,064 | |||||||||
Net cash provided by financing activities | 18,039,805 | 74,125 | 707,064 | |||||||||
Effect of exchange rate changes on cash | (187,893) | (28,792) | 5,102 | |||||||||
Net increase in cash | 15,483,619 | 1,924,025 | 361,620 | |||||||||
Cash, beginning of year | 2,295,277 | 371,252 | 9,632 | |||||||||
Cash, end of year | $ | 17,778,896 | $ | 2,295,277 | $ | 371,252 | ||||||
Supplemental disclosure of cash flow information | ||||||||||||
Cash paid for income taxes | $ | 934,910 | $ | 15,747 | $ | - | ||||||
Cash paid for interest | $ | - | $ | - | $ | - | ||||||
Supplemental disclosure of non-cash investing and financing activities | ||||||||||||
Right-of-use assets obtained in exchange for operating lease liabilities | $ | 52,934 | $ | 317,170 | $ | - | ||||||
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