false
0001602409
0001602409
2024-05-30
2024-05-30
iso4217:USD
xbrli:shares
iso4217:USD
xbrli:shares
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
May 30, 2024
Date of Report (Date of earliest event reported)
FINGERMOTION, INC.
(Exact name of registrant as specified in its charter)
| Delaware |
|
001-41187 |
|
46-4600326 |
| (State or other jurisdiction of incorporation) |
|
(Commission File Number) |
|
(IRS Employer Identification No.) |
111 Somerset Road, Level 3
Singapore |
|
238164 |
| (Address of principal executive offices) |
|
(Zip Code) |
(347) 349-5339
Registrant’s telephone number, including area code
Not applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K is
intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| ☐ |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| ☐ |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| ☐ |
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ☐ |
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of
the Act:
| Title of each class |
Trading Symbol (s) |
Name of each exchange on which registered |
| Common Stock |
FNGR |
The Nasdaq Stock Market LLC |
Indicate by check mark whether the registrant is an
emerging growth company as defined in as defined in Rule 405 of the Securities Act of 1933 (Section 230.405 of this chapter) or Rule 12b-2
of the Securities Exchange Act of 1934 (Section 240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check
mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting
standards provided pursuant to Section 13(a) of the Exchange Act. ☐
SECTION 2 – FINANCIAL INFORMATION
| Item 2.02 |
Results of Operations and Financial Condition. |
On May 30, 2024, FingerMotion, Inc. (the “Company”)
issued a news release to report its financial results for the fiscal year ended February 29, 2024. The information regarding the financial
results for the fiscal year ended February 29, 2024 of the Company contained in Item 7.01 below is responsive to this Item 2.02 and is
incorporated into this Item 2.02 by reference.
The information in this Item 2.02 (including Exhibit
99.1) shall not be deemed “filed” for purposes of Section 18 of the U.S. Securities Exchange Act of 1934, as amended (the
“Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference
in any filing under the U.S. Securities Act of 1933, as amended (the “Securities Act”), or the Exchange Act, except as expressly
set forth by specific reference in such a filing.
SECTION 7 – REGULATION FD
| Item 7.01 |
Regulation FD Disclosure |
On May 30, 2024, the Company issued a news release
to report its financial results for the fiscal year ended February 29, 2024. To review the full financial results, please view the Company’s
recent Form 10-K filing at www.sec.gov/edgar/search, which should be read in connection with this news release.
FY 2024 Financial Summary (results expressed
in US$ unless otherwise indicated):
| · | Reported annual revenue of $35.79 million which was an increase of $1.74 million or 5% compared to FY
2023 (includes Telecommunications Products & Services businesses, SMS & MMS, and Big Data); |
| · | Reported Year over Year annual growth in Telecommunications Products & Services business revenue of
$5.78 million or 21% compared to FY 2023; |
| · | Reported Year over Year annual decline in SMS & MMS business revenue of $3.94 million or 60% compared
to FY 2023; |
| · | Reported Year over Year annual decline in Big Data revenue of $0.11 million or 25% compared to FY 2023; |
| · | Reported gross profits of $3.86 million which was an increase of $1.54 million or 67% compared to FY 2023; |
| · | Reported annual cost of revenue of $31.93 million which was an increase of $0.19 million or 1% compared
to FY 2023; |
| · | Reported operating expenses of $7.68 million which was a decrease of $1.31 million or 15% compared to
FY 2023; |
| · | Reported annual net loss of $3.76 million which was a decrease of $3.78 million or 50% compared to FY
2023; |
| · | Basic and Diluted loss per share of $0.07; |
| · | At February 29, 2024, FingerMotion had $1.52 million in cash, a working capital surplus of $11.97 million
and a positive shareholders’ equity of $12.06 million; |
| · | At February 29, 2024, total assets were $18.81 million, total current liabilities and total liabilities
were $6.75 million; and |
| · | 52,545,350 common shares were issued and outstanding as of February 29, 2024. |
Strong revenue growth year
over year highlighted the financial performance.
“The Company experienced
a transitional year toward higher margin endeavors and product diversification,” stated Martin Shen, CEO of FingerMotion. “The
rise in gross profit came from our Telecom Products and Services business while we continued to invest in the future with our insuretec
partners. Our goal of eradicating debt was successful and we hope that our margin building initiatives will continue to build our balance
sheet as we transition into a new era of growth. Our launch of cloud-based services is growing and expected to be a significant driver
in the coming year, along with growth in our lifestyle app and other new initiatives.”
General and administrative
expenses increased by $908,368 or 16% during the year which was primarily attributable to a range of costs tied to meeting operational
and administrative requirements domestically and internationally. Marketing costs decreased $290,239 or 67% resulting from a focus on
just the telecommunications segment. Research and development expenses decreased by $97,990 or 12% due to savings from data access and
usage fees charged by the telecom companies.
A copy of the news release is attached as Exhibit
99.1 hereto.
The information in this Item 7.01 (including Exhibit
99.1) shall not be deemed “filed” for purposes of Section 18 of the Exchange Act, or otherwise subject to the liabilities
of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act, or the Exchange Act, except
as expressly set forth by specific reference in such a filing.
SECTION 9 – FINANCIAL STATEMENTS AND EXHIBITS
| Item 9.01 |
Financial Statements and Exhibits |
SIGNATURES
Pursuant to the requirements of the Securities Exchange
Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| |
FINGERMOTION, INC. |
| |
|
|
| DATE: May 30, 2024 |
By: |
/s/ Martin J. Shen |
| |
|
Martin J. Shen
CEO and Director |
FingerMotion Reports
FY 2024 Financial Results
Singapore, May 30, 2024
(ACCESSWIRE) -- FingerMotion, Inc. (NASDAQ: FNGR) (the “Company” or “FingerMotion”), a mobile
services and data company, is pleased to report its financial results for the year ended February 29, 2024. To review the full financial
results, please view the Company's recent 10-K filing at www.sec.gov/edgar/search, which should be read in connection with
this news release.
FY 2024 Financial Summary (results expressed
in US$ unless otherwise indicated):
| · | Reported annual revenue of $35.79 million which
was an increase of $1.74 million or 5% compared to FY 2023 (includes Telecommunications Products & Services businesses, SMS &
MMS, and Big Data); |
| · | Reported Year over Year annual growth in Telecommunications
Products & Services business revenue of $5.78 million or 21% compared to FY 2023; |
| · | Reported Year over Year annual decline in SMS
& MMS business revenue of $3.94 million or 60% compared to FY 2023; |
| · | Reported Year over Year annual decline in Big
Data revenue of $0.11 million or 25% compared to FY 2023; |
| · | Reported gross profits of $3.86 million which
was an increase of $1.54 million or 67% compared to FY 2023; |
| · | Reported annual cost of revenue of $31.93 million
which was an increase of $0.19 million or 1% compared to FY 2023; |
| · | Reported operating expenses of $7.68 million
which was a decrease of $1.31 million or 15% compared to FY 2023; |
| · | Reported annual net loss of $3.76 million which
was a decrease of $3.78 million or 50% compared to FY 2023; |
| · | Basic and Diluted loss per share of $0.07; |
| · | At February 29, 2024, FingerMotion had $1.52
million in cash, a working capital surplus of $11.97 million and a positive shareholders’ equity of $12.06 million; |
| · | At February 29, 2024, total assets were $18.81
million, total current liabilities and total liabilities were $6.75 million; and |
| · | 52,545,350 common shares were issued and outstanding
as of February 29, 2024. |
Strong revenue growth year
over year highlighted the financial performance.
“The Company experienced
a transitional year toward higher margin endeavors and product diversification,” stated Martin Shen, CEO of FingerMotion. “The
rise in gross profit came from our Telecom Products and Services business while we continued to invest in the future with our insuretec
partners. Our goal of eradicating debt was successful and we hope that our margin building initiatives will continue to build our balance
sheet as we transition into a new era of growth. Our launch of cloud-based services is growing and expected to be a significant driver
in the coming year, along with growth in our lifestyle app and other new initiatives.”
General and administrative
expenses increased by $908,368 or 16% during the year which was primarily attributable to a range of costs tied to meeting operational
and administrative requirements domestically and internationally. Marketing costs decreased $290,239 or 67% resulting from a focus on
just the telecommunications segment. Research and development expenses decreased by $97,990 or 12% due to savings from data access and
usage fees charged by the telecom companies.
About FingerMotion, Inc.
FingerMotion is an evolving technology company with
a core competency in mobile payment and recharge platform solutions in China. As the user base of its primary business continues to grow,
the Company is developing additional value-added technologies to market to its users. The vision of the Company is to rapidly grow the
user base through organic means and have this growth develop into an ecosystem of users with high engagement rates utilizing its innovative
applications. Developing a highly engaged ecosystem of users would strategically position the Company to onboard larger customer bases.
FingerMotion eventually hopes to serve over 1 billion users in the China market and eventually expand the model to other regional markets.
For more information on FingerMotion, visit: https://fingermotion.com/
Company Contact:
FingerMotion, Inc.
For further information e-mail: info@fingermotion.com
Phone: 718-269-3366
Investor Relations Contact:
Skyline Corporate Communications Group, LLC
Scott Powell, President
One Rockefeller Plaza, 11th Floor
New York, NY 10020
Office: (646) 893-5835
Email: info@skylineccg.com
Safe Harbor Statement
Except for the statements of historical fact contained
herein, the information presented in this news release constitutes “forward-looking statements” as such term is used in applicable
United States securities laws. These statements relate to analysis and other information that are based on forecasts or future results,
estimates of amounts not yet determinable and assumptions of management. Any other statements that express or involve discussions with
respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but
not always, using words or phrases such as “expects”, or “does not expect”, “is expected”, “anticipates”
or “does not anticipate”, “plans”, “estimates” or “intends”, or stating that certain actions,
events or results “may”, “could”, “would”, “might” or “will” be taken, occur
or be achieved) are not statements of historical fact and should be viewed as “forward-looking statements”. We have based
these forward-looking statements on our current expectations about future events or performance, including expected revenues. While we
believe these expectations are reasonable, such forward-looking statements are inherently subject to risks and uncertainties, many of
which are beyond our control. Our actual future results may differ materially from those discussed or implied in our forward-looking statements
for various reasons. Factors that could contribute to such differences include, but are not limited to: international, national and local
general economic and market conditions; demographic changes; the ability of the Company to sustain, manage or forecast its growth; the
ability of the Company to manage its VIE contracts; the ability of the Company to maintain its relationships and licenses in China; adverse
publicity; competition and changes in the Chinese telecommunications market; fluctuations and difficulty in forecasting operating results;
business disruptions, such as technological failures and/or cybersecurity breaches; and the other factors discussed in the Company’s
periodic reports that are filed with the Securities and Exchange Commission and available on its website (http://www.sec.gov). There can
be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those
anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements contained in this news
release and in any document referred to in this news release. The forward-looking statements included in this release are made only as
of the date hereof. For forward-looking statements in this news release, the Company claims the protection of the safe harbor for forward-looking
statements contained in the Private Securities Litigation Report Act of 1995. The Company assumes no obligation to update or supplement
any forward-looking statements whether as a result of new information, future events or otherwise. This news release shall not constitute
an offer to sell or the solicitation of any offer to our securities.
v3.24.1.1.u2
| X |
- DefinitionBoolean flag that is true when the XBRL content amends previously-filed or accepted submission.
| Name: |
dei_AmendmentFlag |
| Namespace Prefix: |
dei_ |
| Data Type: |
xbrli:booleanItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionFor the EDGAR submission types of Form 8-K: the date of the report, the date of the earliest event reported; for the EDGAR submission types of Form N-1A: the filing date; for all other submission types: the end of the reporting or transition period. The format of the date is YYYY-MM-DD.
| Name: |
dei_DocumentPeriodEndDate |
| Namespace Prefix: |
dei_ |
| Data Type: |
xbrli:dateItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionThe type of document being provided (such as 10-K, 10-Q, 485BPOS, etc). The document type is limited to the same value as the supporting SEC submission type, or the word 'Other'.
| Name: |
dei_DocumentType |
| Namespace Prefix: |
dei_ |
| Data Type: |
dei:submissionTypeItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionAddress Line 1 such as Attn, Building Name, Street Name
| Name: |
dei_EntityAddressAddressLine1 |
| Namespace Prefix: |
dei_ |
| Data Type: |
xbrli:normalizedStringItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionAddress Line 2 such as Street or Suite number
| Name: |
dei_EntityAddressAddressLine2 |
| Namespace Prefix: |
dei_ |
| Data Type: |
xbrli:normalizedStringItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- Definition
+ References
+ Details
| Name: |
dei_EntityAddressCityOrTown |
| Namespace Prefix: |
dei_ |
| Data Type: |
xbrli:normalizedStringItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionISO 3166-1 alpha-2 country code.
| Name: |
dei_EntityAddressCountry |
| Namespace Prefix: |
dei_ |
| Data Type: |
dei:countryCodeItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionCode for the postal or zip code
| Name: |
dei_EntityAddressPostalZipCode |
| Namespace Prefix: |
dei_ |
| Data Type: |
xbrli:normalizedStringItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionA unique 10-digit SEC-issued value to identify entities that have filed disclosures with the SEC. It is commonly abbreviated as CIK. Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 12
-Subsection b-2
| Name: |
dei_EntityCentralIndexKey |
| Namespace Prefix: |
dei_ |
| Data Type: |
dei:centralIndexKeyItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionIndicate if registrant meets the emerging growth company criteria. Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 12
-Subsection b-2
| Name: |
dei_EntityEmergingGrowthCompany |
| Namespace Prefix: |
dei_ |
| Data Type: |
xbrli:booleanItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionCommission file number. The field allows up to 17 characters. The prefix may contain 1-3 digits, the sequence number may contain 1-8 digits, the optional suffix may contain 1-4 characters, and the fields are separated with a hyphen.
| Name: |
dei_EntityFileNumber |
| Namespace Prefix: |
dei_ |
| Data Type: |
dei:fileNumberItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionTwo-character EDGAR code representing the state or country of incorporation.
| Name: |
dei_EntityIncorporationStateCountryCode |
| Namespace Prefix: |
dei_ |
| Data Type: |
dei:edgarStateCountryItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionThe exact name of the entity filing the report as specified in its charter, which is required by forms filed with the SEC. Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 12
-Subsection b-2
| Name: |
dei_EntityRegistrantName |
| Namespace Prefix: |
dei_ |
| Data Type: |
xbrli:normalizedStringItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionThe Tax Identification Number (TIN), also known as an Employer Identification Number (EIN), is a unique 9-digit value assigned by the IRS. Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 12
-Subsection b-2
| Name: |
dei_EntityTaxIdentificationNumber |
| Namespace Prefix: |
dei_ |
| Data Type: |
dei:employerIdItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionLocal phone number for entity.
| Name: |
dei_LocalPhoneNumber |
| Namespace Prefix: |
dei_ |
| Data Type: |
xbrli:normalizedStringItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionBoolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act. Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 13e
-Subsection 4c
| Name: |
dei_PreCommencementIssuerTenderOffer |
| Namespace Prefix: |
dei_ |
| Data Type: |
xbrli:booleanItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionBoolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act. Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 14d
-Subsection 2b
| Name: |
dei_PreCommencementTenderOffer |
| Namespace Prefix: |
dei_ |
| Data Type: |
xbrli:booleanItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionTitle of a 12(b) registered security. Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 12
-Subsection b
| Name: |
dei_Security12bTitle |
| Namespace Prefix: |
dei_ |
| Data Type: |
dei:securityTitleItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionName of the Exchange on which a security is registered. Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 12
-Subsection d1-1
| Name: |
dei_SecurityExchangeName |
| Namespace Prefix: |
dei_ |
| Data Type: |
dei:edgarExchangeCodeItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionBoolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as soliciting material pursuant to Rule 14a-12 under the Exchange Act. Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 14a
-Subsection 12
| Name: |
dei_SolicitingMaterial |
| Namespace Prefix: |
dei_ |
| Data Type: |
xbrli:booleanItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionTrading symbol of an instrument as listed on an exchange.
| Name: |
dei_TradingSymbol |
| Namespace Prefix: |
dei_ |
| Data Type: |
dei:tradingSymbolItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionBoolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as written communications pursuant to Rule 425 under the Securities Act. Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Securities Act
-Number 230
-Section 425
| Name: |
dei_WrittenCommunications |
| Namespace Prefix: |
dei_ |
| Data Type: |
xbrli:booleanItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
FingerMotion (NASDAQ:FNGR)
Historical Stock Chart
From Oct 2024 to Nov 2024
FingerMotion (NASDAQ:FNGR)
Historical Stock Chart
From Nov 2023 to Nov 2024
