Company: EUDAW
Filing Date: 2025-04-29
Form Type: 20-F
Source: 0001641172-25-006627
Chunk: 40

Company: EUDA Health Holdings Ltd
Filing Date: 2025-04-29
Form: 20-F
Item: Item 5
Chunk 40
---
 $                  7,299      $                 $            7,299      100.0  
  Gross margin                                                                   100.0                                     100.0             
  Wellness Membership Program                                                                                                                
  Gross profit                                                $                  2,890      $                 $            2,890      100.0  
  Gross margin                                                                   100.0                                     100.0             
  Total holistic wellness consumer products and services                                                                                     
  Gross profit                                                $                 55,035      $                 $           55,035      100.0  
  Gross margin                                                                    62.0                                     100.0             

  27  

For
the year ended December 31, 2024, our holistic wellness consumer products and services segment generated total gross profit of $55,035, representing a gross margin of 62.0%. The overall gross margin
primarily reflects the contribution from our higher-margin licensing services, wellness membership program, and wellness therapies services.

Operating
Expenses

Total
operating expenses increased by approximately $13.3 million, or 276.8%, to approximately $18.1 million for the year ended December
31, 2024 from approximately $4.8 million for the same period in 2023. The increase was mainly attributable to the increase of
impairment loss on long-lived asset of approximately $14.8 million as a result of the Fortress Cove Acquisition (defined below). The
increase was offset by decrease of selling expenses of approximately $0.4 million and decrease of general and administrative
(“ G& A”) expenses of approximately $1.1 million.

A
decrease of approximately $0.4 million in selling expenses was mainly attributable to the decrease of approximately $0.4 million in advertising
and marketing expense as management initiated its operating strategy to minimize its marketing related expenses during the year ended
December 31, 2024 as compared to the same period in 2023.

A
decrease of approximately $1.1 million in general and administrative expenses for the year ended December 31, 2024, compared to the same
period in 2023, was primarily attributable to decrease of approximately $1.0 million in professional fees, including audit, legal,
accounting, and other advisory services, as well as a decrease of approximately $0.2 million in salary expenses resulting from management’s
efforts to streamline operations and improve overall efficiency.

An
increase of approximately $14.8 million