TEN Holdings Reported Q2 Revenue Of $1.12M Vs $1.02M YoY, Adj EPS Loss Of $(0.13) Vs $(0.02) YoY

Financial Results

• Revenue for the three months ended June 30, 2025 was $1,116,000 compared to $1,023,000 for the three months ended June 30, 2024. Revenue increased by $93,000, or 9.1%, compared to the three months ended June 30, 2024. The increase was primarily driven by the following factors:

(a.)  Revenue from delivered events – virtual and hybrid events for the three months ended June 30, 2025 decreased by $16,000, or 1.8%, compared to the three months ended June 30, 2024, mainly due to certain customers shifting events to the third quarter of 2025 or later.

(b.)  Revenue from delivered events – physical events for the three months ended June 30, 2025 increased by $109,000, or 82.6%, compared to the three months ended June 30, 2024, mainly due to approximately $100,000 in revenue from additional events delivered to a new customer.

• Cost of revenue for the three months ended June 30, 2025 was $175,000 compared to $141,000 for the three months ended June 30, 2024. Cost of revenue increased by $34,000, or 24.1%, compared to the three months ended June 30, 2024. The increase was primarily due to an increase in physical events for such period causing the cost of revenue to increase by a proportionate amount.
• Selling, general, and administrative expenses increased by $910,000, or 73%, to $2,153,000 compared to the same period last year. The increase was primarily due to the added expenses attributable to being a publicly traded company, which was not a factor during the same period last year. These include higher legal costs, quarterly PCAOB audit and advisory costs, additional insurance premiums, external investor relations management costs, and ongoing capital markets advisory fees, among other expenses.
• Interest expenses for the three months ended June 30, 2025 totaled  $80,000, compared to $48,000 for the three months ended June 30, 2024.
• Net loss for the three months ended June 30, 2025 was $2,784,000, or $(0.13) per share, compared to a net loss of $408,000, or $(0.02) per share, for the three months ended June 30, 2024. $1,359,000 of the total loss in the three months ended June 30, 2025 was due to increased operating expenses which reflect the increase of ongoing costs associated with maintaining public company status. The remaining $1,425,000 of the expenses are attributable to expenses incurred in connection with the transaction executed with Sunpeak Holdings Corporation during the quarter and increased interest expense.
• US-GAAP loss for the three months ended June 30, 2025, which excludes stock-based compensation expense, was $2,784,000, or ($0.13) per share, compared to a loss of $408,000, or ($0.02) per share, in the three months ended June 30, 2024.
• Weighted average number of common shares outstanding was 21,425,980 for the three months ended June 30, 2025 and 25,000,000 for the three months ended June 30, 2024.

Selected Balance Sheet and Cash Flow Results

• As of June 30, 2025, the Company had total cash and cash equivalents of $739,000 compared to $48,000 as of December 31, 2024.
• Net cash used in operating activities increased from $1,007,000 in the three months ended June 30, 2024 to $7,577,000 in the three months ended June 30, 2025.The increase in cash used in operating activities is primarily driven by a $3,500,000 non-cash expense recognized during the quarter relating to the recognition of the Company's stock options expense.
• Net cash used in investing activities, comprised mostly of the purchase of capitalized internal-use software, was $529,000 in the three months ended June 30, 2025, compared to $541,000 in the three months ended June 30, 2024.