Company: EUDAW
Filing Date: 2025-04-29
Form Type: 20-F
Source: 0001641172-25-006627
Chunk: 34

Company: EUDA Health Holdings Ltd
Filing Date: 2025-04-29
Form: 20-F
Item: Item 5
Chunk 34
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ITEM
5. OPERATING AND FINANCIAL REVIEW AND PROSPECTS

The
following discussion and analysis of our financial condition and results of operations should be read in conjunction with our consolidated
financial statements that appear in this annual report. In addition to historical consolidated financial information, the following discussion
contains forward-looking statements that reflect our plans, estimates, and beliefs. Our actual results could differ materially from those
discussed in the forward-looking statements. Factors that could cause or contribute to these differences include those discussed below
and elsewhere in this annual report, particularly in “ Risk Factors.” All amounts in included in the fiscal years ended December
31, 2024, 2023 and 2022 (“ Annual Financial Statements”) are derived from our audited consolidated financial statements included
elsewhere in this annual report. These Annual Financial Statements have been prepared in accordance with U. S. Generally Accepted Accounting
Principles, or U. S. GAAP.

5A.
Operating Results

Overview

Summary
of Business

On
September 8, 2023, the Board of Directors held a Board meeting and all Members of Board of Directors has thoroughly reviewed the current
market conditions and strategic considerations, and reached a resolution to streamline certain medical-related business units in the
best interests of the Company and its shareholders. The Company has assessed the Board’s resolution about the streamlining of certain
medical-related business unit and determined that it qualifies as discontinued operations under ASC205-20 because it represented a strategic
shift that had a major effect on the Company’s medical services financial results. As a result, the Company’s current primary operations remained with its property management services. However, management is still actively seeking new investments and
businesses to acquire or develop other healthcare services.

Exiting
discontinued operations often incurs restructuring costs, including severance payments, contract terminations, and asset impairments.
These one-time expenses can strain liquidity, especially if they are higher than initially anticipated. Exiting discontinued operations
and transitioning to a new strategic focus has continued to require time and resources, diverting attention away from revenue-generating
activities. The transition period has continued to result in temporary liquidity constraints as the Company is still adjusting its operations
and reallocates resources. Discontinuing certain operations is part of a broader strategic realignment aimed at enhancing long-term profitability
and shareholder value. While strategic realignment may improve the Company’s overall financial health, impact on short-term liquidity
is expected to continue during the transition period.

Recent
Ac