Cuentas, Inc. Announces Outstanding Q1 2024 Financial Results: Reports Astonishing 998% YOY Sales Increase, Provides Update on Sale of Tampa Real Estate and Distribution Partnership Ownership.
MIAMI BEACH, FL, May 21, 2024 (GLOBE NEWSWIRE) -- Cuentas, Inc. (OTC: CUEN & CUENW) ("CUEN" or "the Company"), a pioneer driving the seamless integration of fintech, mobile telecommunications, and real estate for the unbanked and underbanked Hispanic demographic, announced today the publication of the company's Q1 2024 financial report on SEC Form 10Q. Key highlights include the company's improved sales and financial results, expected completion of the definitive sale of its Brooksville, Florida property and its interests in Cuentas SDI, LLC.
Key Highlights
Sales Surge: The company reported an extraordinary 898% increase in sales for Q1 2024 compared to the same period last year. This growth is a testament to Cuentas' innovative approach and strategic advancements in the telecommunications and fintech sectors.
Brooksville Property Sale: Cuentas is set to complete the definitive sale of its Brooksville, Florida property and its interests in Cuentas SDI, LLC. The sale, valued at $7.2 million, will significantly enhance the company's liquidity and support further strategic investments.
Strategic Investments: On May 1, 2024, Cuentas signed a Letter of Intent with Sekur Private Data Ltd. to acquire 5,000,000 shares of SWISF common stock for $500,000, and 25,000,000 shares for the transfer of the M&M Telecom MVNO Agreement and FCC 214 license valued at $2.5 million. This move will integrate Sekur's products into the Cuentas Mobile service, enhancing its bundled offerings for family and business customers.
Sale of Cuentas SDI: On May 20, 2024, Cuentas sold a 19.99% interest in Cuentas SDI, LLC for $215,500, retaining its extensive distribution network of over 31,000 bodegas and enhancing real-time reselling via online, mobile, and direct sales channels.
Reduction in Current Liabilities: A substantial 20% reduction to $3,741,000, compared to $4,689,000 as of March 31, 2023.
"We are thrilled to announce such a significant milestone for Cuentas," said Mr. Arik Maimon, CEO of CUEN. "Our team's dedication to delivering cutting-edge mobile telecommunications and fintech solutions has resulted in remarkable growth. We remain focused on our mission to empower our customers with innovative technology and unparalleled service. As Cuentas continues to build on this momentum, the company is committed to strategic investments and partnerships that will drive sustained growth and shareholder value such as the investment in Sekur Private Data Ltd. and our acquisition of our minority interest in Cuentas SDI, LLC."
Cuentas continues to expand its market presence with its robust mobile service, Cuentas Mobile, supported by a powerful distribution ecosystem and a meticulously developed software platform. Utilizing advanced eSIM technology, this system ensures reliability and will soon include a secure communications suite from Sekur Private Data Ltd. in a comprehensive service bundle.
Financial Results for the Fiscal Year ended March 31, 2024
Revenues:
In a remarkable achievement, revenues for the three months ended March 31, 2024, skyrocketed to $639,000, reflecting an astounding 898% increase compared to $64,000 for the same period in 2023.
Cost of Revenues:
The cost of revenues for the three months ended March 31, 2024, totaled $708,000, compared to $123,000 for the corresponding period in 2023. This includes:
Telecom Platform Costs and Digital Product Purchases: $565,000
Costs Related to Digital Products and GPR Card Sales: $131,000 (up from $67,000 in the prior year)
Gross Profit Margin:
The gross profit margin for the three months ended March 31, 2024, exhibited mixed results. While the telecommunications segment achieved a 48% gross profit margin, the digital product and general-purpose reloadable cards segment faced a gross loss margin of 65%. Overall, this resulted in a gross loss margin of 11%.
Operating Expenses:
Operating expenses, which include selling, general, and administrative expenses along with amortization of intangible assets, were significantly reduced. For the three months ended March 31, 2024, these expenses totaled $774,000, marking a substantial decrease from $1,627,000 in the same period in 2023.
Selling, General, and Administrative Expenses:
A notable reduction in selling, general, and administrative expenses was achieved, totaling $772,000 for the three months ended March 31, 2024. This represents a 52% decrease from $1,625,000 during the same period in 2023.
Net Loss:
The company significantly reduced its net loss, incurring a loss of $445,000 for the three months ended March 31, 2024, compared to a net loss of $1,695,000 for the same period in 2023. This improvement is attributed to the decrease in selling and general administrative expenses.
Cash Position:
As of March 31, 2024, the company's total current assets amounted to $492,000, which includes:
Cash: $28,000
Accounts Receivable: $290,000
Related Party Receivables: $169,000
Other Current Assets: $5,000
You can find the filed form 10Q here: CUENTAS INC - FORM 10Q
Cuentas, Inc. (OTC: CUEN & CUENW) is creating an alternative financial ecosystem for the growing global population who do not have access to traditional financial alternatives. The Company's proprietary technologies help to integrate FinTech (Financial Technology), e-finance and e-commerce services into solutions that deliver next generation digital financial services to the unbanked, under-banked and underserved populations nationally in the USA. The Cuentas Platform integrates Cuentas Mobile, the Company's Mobile Telecommunications solution, with its core financial services offerings to help entire communities enter the modern financial marketplace. Cuentas has launched its General Purpose Reloadable (GPR) Card, which includes a digital wallet, discounts for purchases at major physical and online retailers, rewards, and the ability to purchase digital content. LINK: https://cuentas.com AND https://cuentasmobile.com.
| Contact Information: Arik Maimon CEO at Cuentas Inc Cuentas Inc. (OTC:CUEN) Email: arik@cuentas.com | For media inquiries: Investor Relations Email: info@cuentas.com |
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Forward-Looking Statements
This news release contains "forward-looking statements," as that term is defined in section 27a of the United States Securities Act of 1933, as amended, and section 21e of the United States Securities Exchange Act of 1934, as amended. These forward-looking statements involve substantial uncertainties and risks and are based upon our current expectations, estimates and projections and reflect our beliefs and assumptions based upon information available to us at the date of this release. We caution readers that forward-looking statements are predictions based on our current expectations about future events. These forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties and assumptions that are difficult to predict. Our actual results, performance or achievements could differ materially from those expressed or implied by the forward-looking statements as a result of a number of factors, including, but not limited to, OTC and shareholder approval of the proposed transaction, our ability to manage our research and development programs that are based on novel technologies, our ability to successfully integrate WHEN operations and product offerings, the sufficiency of working capital to realize our business plans and our ability to raise additional capital, market acceptance, the going concern qualification in our financial statements, our ability to retain key employees, our competitors developing better or cheaper alternatives to our products, risks relating to legal proceedings against us and the risks and uncertainties discussed under the heading "RISK FACTORS" in Item 1A of our Annual Report on Form 10-K for the fiscal year ended December 31, 2022, and in our other filings with the Securities and Exchange Commission. We undertake no obligation to revise or update any forward-looking statement for any reason.
