LIQUIDITY AND CAPITAL RESOURCES

12 Months Ended

Dec. 31, 2022

Liquidity And Capital Resources

LIQUIDITY AND CAPITAL RESOURCES

NOTE－ 2 LIQUIDITY AND CAPITAL RESOURCES

The accompanying audited consolidated financial statements have been prepared using the going concern basis of accounting, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business.

As of December 31, 2022, the Company had cash balances of $19,003,336, a working capital surplus of $11,382,646 and accumulated deficit $81,138,563. For the year ended December 31, 2022, the Company had a net loss of $34,015,022 and net cash used in operating activities of $14,453,759. Net cash provided by investing activities was $177,393. Net cash provided by financing activities was $10,182,905, resulting principally from $10,402,891 net proceeds from IPO public offering and $412,890 net proceeds from the C1 warrants exercised. The Company also repaid $632,876 of First Insurance Funding loan during 2022.

While the Company believes that it will be able to continue to grow the Company’s revenue base and control expenditures, there is no assurance that it will be able to achieve these goals. As a result, the Company continually monitors its capital structure and operating plans and evaluates various potential funding alternatives that may be needed to finance the Company’s business development activities, general and administrative expenses and growth strategy. The consolidated financial statements for the years ended December 31, 2022 and 2021 have been prepared on a going concern basis and do not include any adjustments to reflect the possible future effects on the recoverability and classifications of assets or the amounts and classifications of liabilities that may result from the inability of the Company to continue as a going concern

COVID-19 (Delta and Omicron variants) and other Global Events

COVID-19 has globally resulted in loss of life, business shutdowns, restrictions on travel, and widespread cancellation of social gatherings. The extent to which the COVID-19 pandemic impacts our business will depend on future developments, which are highly uncertain and cannot be predicted at this time, including:

• new information which may emerge concerning the severity of the disease in Vietnam and SEA;

• the duration and spread of the outbreak;

• the severity of travel restrictions imposed by geographic areas in which we operate, mandatory or voluntary business closures;

• regulatory actions taken in response to the pandemic, which may impact merchant operations, consumer and merchant pricing, and our product offerings;

• other business disruptions that affect our workforce;

• the impact on capital and financial markets; and

• action taken throughout the world, including in markets in which we operate, to contain the COVID-19 outbreak or treat its impact.

In addition, the current outbreak of COVID-19 has resulted in a widespread global health crisis and adversely affected global economies and financial markets, and similar public health threats could do so in the future. Such events have impacted, and could in the future impact, demand for merchants and consumer purchase patterns, which in turn, could adversely affect our revenue and results of operations.

Since the onset of the COVID-19 pandemic in March and April 2020, all our POS merchant clients are affected by COVID-19 measures for F&B to temporary stop restaurant dine ins.

• Some of our restaurant clients ceased operations permanently and many were closed since June 2020 without any notice of reopening their business to date.

• Our largest POS client, a hotel chain for which we provide POS services to their F&B business in their hotels, ceased operations in two out of nine hotels since April 2020.

With the ongoing pandemic, Company faces challenges in our operation as follows:

• Disruption of operation in Vietnam, Philippines, India, Singapore and US where staffs have to work from home.

• The coordination of rebooting of company’s recent asset acquisition of NREI and Dream Space, which are the F&B Delivery platforms in operate in Philippines and Vietnam respectively.

• Application of licenses are delayed as government agencies take longer time to review and process time.

• HR process to hire personnel are generally slow due to people not willing to leave their current job, company have to spend more time and resource.

The spread of COVID-19 has caused us to modify our business practices, including employee travel, employee work locations in certain cases, and cancellation of physical participation in certain meetings, events and conferences and further actions may be taken as required or recommended by government authorities or as we determine are in the best interests of our employees, customers, and other business partners. We are monitoring the global outbreak of the pandemic, in SEA, especially Vietnam and are taking steps in an effort to identify and mitigate the adverse impacts on, and risks to, our business posed by its spread and the governmental and community reactions thereto. See “Risk Factors--Our business may be materially adversely affected by the recent coronavirus (COVID-19) outbreak. 

The Russian-Ukraine war and the supply chain disruption have not affected any specific segment of our business.