0001213900-26-048646
SEC filingRevenue collapsed 65% to $160.9K amid business volume contraction, enabling gross profit expansion to $82.4K with 51.2% margin through direct labor cost discipline, yet net losses widened to -$22.8M as public company overheads overwhelmed core operations.
The Group's revenue recognition follows a five-step model under core principles, ensuring control transfer to customers. For event tickets, performance obligations are met upon order confirmation as an agent on behalf of merchants. In voucher sales, however, the Group acts as principal, recognizing gross revenue upon obtaining control of vouchers through fixed-quantity buyout agreements that expose it to substantive inventory risk prior to customer transfer. Customers simultaneously receive and consume benefits during the contract period, supporting the timing of recognition.
Despite gross margin improvement, net income deteriorated sharply to a -$22.8M loss from -$8.1M, a 180% worsening, with diluted EPS falling 50% to -$0.03. This reflects the burdens of public company operations, including elevated overheads and non-cash charges that scaled disproportionately to the shrunken revenue base. Operating cash flow remained deeply negative at -$9.7M, comparable to -$9.5M prior year, indicating sustained cash consumption in core activities.
Capital expenditures increased to $93K from $2.5K, aligned with management's commitment to well-planned investments for expected business growth. This resulted in free cash flow of -$9.8M, underscoring liquidity pressures. Property and equipment costs include purchase prices plus costs to bring assets to intended use, with repairs expensed as incurred and betterments capitalized to extend useful lives.
Share-based compensation for awards with requisite service periods is recognized straight-line over the service term at grant-date fair value. The Group adopted ASC 842 for operating leases effective January 1, 2021. Management monitors long-lived assets for impairment triggers, comparing carrying values to undiscounted future cash flows from use and disposition when indicators arise. These policies frame the financial dynamics, highlighting resilience in margins but vulnerability to fixed costs and cash burn as TDTH navigates its public company phase.