[Company Overview and Q2 2025 Highlights](index=1&type=section&id=Company%20Overview%20and%20Q2%202025%20Highlights) Cheetah Net Supply Chain Service Inc. reports Q2 2025 revenue growth, reduced net loss, and strategic integration efforts [Q2 2025 Performance Summary](index=1&type=section&id=Q2%202025%20Performance%20Summary) Cheetah Net Supply Chain Service Inc. reported a significant revenue increase of 278.9% for Q2 2025 from its logistics and warehousing business, reaching $354,126. Despite an operating loss, the net loss decreased by 6.8% to $512,528, primarily due to substantial interest income. The company is focusing on integrating recent acquisitions and improving operational efficiency amidst trade policy pressures | Metric | Q2 2025 (USD) | Q2 2024 (USD) | Change (%) | | :-------------------- | :------------ | :------------ | :--------- | | Revenue | $354,126 | N/A | +278.9% | | Operating Loss | ($780,849) | N/A | N/A | | Net Loss | ($512,528) | N/A | -6.8% | - CEO Tony Liu noted improving sequential results towards stabilization after tariff turmoil, with proactive measures including increasing labor and logistics services and generating interest income from public offerings proceeds[4](index=4&type=chunk) - The company plans to continue integrating recently acquired companies to build a resilient growth foundation and navigate trade policy pressures[4](index=4&type=chunk) [Second Quarter 2025 Financial Results](index=1&type=section&id=Second%20Quarter%202025%20Financial%20Results) Q2 2025 financial results detail continuing logistics operations, discontinued vehicle business, and overall net loss [Continuing Operations - Logistics and Warehousing Business](index=1&type=section&id=Continuing%20Operations%20-%20Logistics%20and%20Warehousing%20Business%20(Q2%202025)) For the three months ended June 30, 2025, the logistics and warehousing segment generated $354,126 in revenue, significantly boosted by acquisitions. Edward Transit Express Group Inc. contributed 14.9% of total revenue, but saw a 43.7% decrease due to U.S.-China ocean freight suspensions. Cost of revenue was $319,226, resulting in a gross profit of $34,900. General and administrative expenses decreased by 6.9% YoY, while interest income surged by 863.9% due to proceeds from public offerings. The net loss from continuing operations improved to $512,528 from $550,022 in the prior year Q2 2025 Continuing Operations Revenue Breakdown | Source | Revenue (USD) | % of Total Revenue | | :----- | :------------ | :----------------- | | Total | $354,126 | 100% | | Edward Transit Express Group Inc. | $52,684 | 14.9% | | TW & EW Services Inc. | $301,442 | 85.1% | - Revenue from Edward decreased by **43.7%** primarily due to a temporary suspension in U.S.-China ocean freight activities in April 2025, partially offset by stabilized trade flow in May and June 2025[6](index=6&type=chunk) Q2 2025 Key Financials (Continuing Operations) | Metric | Q2 2025 (USD) | Q2 2024 (USD) | Change (YoY) | | :-------------------------- | :------------ | :------------ | :----------- | | Cost of Revenue | $319,226 | N/A | N/A | | Gross Profit | $34,900 | N/A | N/A | | General & Administrative Expenses | $805,305 | $865,354 | -6.9% | | Share-based Compensation | $10,444 | $0 | N/A | | Interest Income | $272,228 | $28,241 | +863.9% | | Net Loss from Continuing Operations | ($512,528) | ($550,022) | -6.8% | [Discontinued Operations - Parallel-Import Vehicle Business](index=2&type=section&id=Discontinued%20Operations%20-%20Parallel-Import%20Vehicle%20Business%20(Q2%202025)) In Q2 2024, the discontinued parallel-import vehicle business generated $200,297 in revenue from the sale of only one vehicle, resulting in a gross loss of $15,537 and a net loss of approximately $62,858. This business was significantly impacted by a downturn in the PRC market Q2 2024 Discontinued Operations Financials | Metric | Q2 2024 (USD) | | :-------------------- | :------------ | | Revenue | $200,297 | | Cost of Revenue | $215,843 | | Gross Loss | ($15,537) | | Selling Expenses | $19,422 | | Interest Expenses | $27,899 | | Net Loss | ($62,858) | [Overall Net Loss](index=2&type=section&id=Overall%20Net%20Loss%20(Q2%202025)) The Company reported an overall net loss of $512,528 for the three months ended June 30, 2025, a decrease from $612,880 in the same period of 2024, reflecting an improved financial position despite ongoing operational challenges Overall Net Loss (Q2) | Metric | Q2 2025 (USD) | Q2 2024 (USD) | | :------- | :------------ | :------------ | | Net Loss | ($512,528) | ($612,880) | [Six Months 2025 Financial Results](index=2&type=section&id=Six%20Months%202025%20Financial%20Results) H1 2025 financial results detail continuing logistics operations, discontinued vehicle business, and the overall net loss [Continuing Operations - Logistics and Warehousing Business](index=2&type=section&id=Continuing%20Operations%20-%20Logistics%20and%20Warehousing%20Business%20(H1%202025)) For the six months ended June 30, 2025, revenue from the logistics and warehousing segment reached $833,925, with TWEW contributing the majority (86.2%). Edward's revenue decreased by 32.4% due to U.S.-China trade disruptions. Cost of revenues significantly increased by 743.1% to $742,769, primarily due to TWEW's contribution. General and administrative expenses rose by 10.6% to $1.8 million, driven by increased rental, personnel, and depreciation expenses, partially offset by lower legal and recruiting fees. Interest income saw a substantial 740.1% increase to $480,318. The net loss from continuing operations widened to $1,266,437 from $1,016,370 YoY H1 2025 Continuing Operations Revenue Breakdown | Source | Revenue (USD) | % of Total Revenue | | :----- | :------------ | :----------------- | | Total | $833,925 | 100% | | Edward Transit Express Group Inc. | $115,199 | 13.8% | | TW & EW Services Inc. | $718,726 | 86.2% | - Revenue from Edward decreased by **32.4%** due to temporary suspension in U.S.-China ocean freight activities in April 2025, partially offset by stabilized trade flow in May and June 2025[17](index=17&type=chunk) H1 2025 Key Financials (Continuing Operations) | Metric | H1 2025 (USD) | H1 2024 (USD) | Change (YoY) | | :-------------------------- | :------------ | :------------ | :----------- | | Cost of Revenue | $742,769 | $88,098 | +743.1% | | General & Administrative Expenses | $1,805,824 | $1,632,996 | +10.6% | | Share-based Compensation | $26,629 | $0 | N/A | | Interest Income | $480,318 | $57,171 | +740.1% | | Net Loss from Continuing Operations | ($1,266,437) | ($1,016,370) | +24.6% | [Discontinued Operations - Parallel-Import Vehicle Business](index=3&type=section&id=Discontinued%20Operations%20-%20Parallel-Import%20Vehicle%20Business%20(H1%202025)) For the six months ended June 30, 2024, the discontinued parallel-import vehicle business generated $1.6 million in revenue from 14 vehicle sales. Total selling expenses were $98,262 and interest expenses were $82,358, leading to a net loss of approximately $205,440 H1 2024 Discontinued Operations Financials | Metric | H1 2024 (USD) | | :-------------------- | :------------ | | Revenue | $1.6 million | | Vehicles Sold | 14 units | | Selling Expenses | $98,262 | | Interest Expenses | $82,358 | | Net Loss | ($205,440) | [Overall Net Loss](index=3&type=section&id=Overall%20Net%20Loss%20(H1%202025)) The Company reported an overall net loss of $1,266,437 for the six months ended June 30, 2025, compared to a net loss of $1,221,810 for the same period in 2024 Overall Net Loss (H1) | Metric | H1 2025 (USD) | H1 2024 (USD) | | :------- | :------------ | :------------ | | Net Loss | ($1,266,437) | ($1,221,810) | [Liquidity and Cash Flow](index=3&type=section&id=Liquidity%20and%20Cash%20Flow) This section reviews the Company's balance sheet, cash flow activities, and liquidity outlook [Balance Sheet Highlights](index=3&type=section&id=Balance%20Sheet%20Highlights) As of June 30, 2025, the Company's current assets totaled $9.9 million, primarily comprising $8.7 million in loan receivables and $0.2 million in cash. Current liabilities were approximately $0.9 million. Total stockholders' equity decreased to $11.4 million from $12.6 million at December 31, 2024 Key Balance Sheet Figures (June 30, 2025) | Metric | Amount (USD) | | :-------------------- | :----------- | | Current Assets | $9.9 million | | Cash and Cash Equivalents | $0.2 million | | Loan Receivables | $8.7 million | | Current Liabilities | $0.9 million | | Total Stockholders' Equity | $11.4 million | [Cash Flow Activities](index=3&type=section&id=Cash%20Flow%20Activities) For the six months ended June 30, 2025, the Company generated $1.3 million in cash from operating activities, used $2.7 million in investing activities, and $138,294 in financing activities Cash Flow Summary (H1 2025) | Activity | Net Cash Flow (USD) | | :-------------------- | :------------------ | | Operating Activities | $1.3 million provided | | Investing Activities | $2.7 million used | | Financing Activities | $138,294 used | [Liquidity Outlook](index=4&type=section&id=Liquidity%20Outlook) Management believes that current measures, including generating cash from operations, debt financing, and potential support from its principal stockholder, will provide sufficient liquidity for at least 12 months. Additional equity financing may be sought if needed for business plan implementation and sustained growth - The Company aims to improve liquidity through cash generation from operations, debt financing, and potential financial support from its principal stockholder[32](index=32&type=chunk) - Management is confident that current measures will provide sufficient liquidity for at least 12 months, with potential for additional equity financing if required for growth[32](index=32&type=chunk) [Forward-Looking Statements](index=4&type=section&id=Forward-Looking%20Statements) This section provides a standard disclaimer for forward-looking statements, noting inherent risks and no obligation for updates [Disclaimer on Forward-Looking Statements](index=4&type=section&id=Disclaimer%20on%20Forward-Looking%20Statements) This section provides a standard disclaimer regarding forward-looking statements, noting they are based on current expectations and assumptions, and are subject to risks outlined in SEC filings. The Company disclaims any obligation to publicly update these statements - Forward-looking statements are based on current expectations and assumptions, protected by the Private Securities Litigation Reform Act of 1995[33](index=33&type=chunk) - The Company undertakes no obligation to publicly update any forward-looking statement and advises readers to refer to risk factors in its SEC filings, including Form 10-K[33](index=33&type=chunk) [Investor Relations Contact](index=4&type=section&id=Investor%20Relations%20Contact) This section provides essential contact information for investor relations inquiries [Contact Information](index=4&type=section&id=Contact%20Information) Contact details for investor relations are provided for inquiries - For investor relations inquiries, contact Cheetah Net Supply Chain Service Inc. at (949) 418-7804 or ir@cheetah-net.com[34](index=34&type=chunk) [Unaudited Condensed Consolidated Financial Statements](index=5&type=section&id=Unaudited%20Condensed%20Consolidated%20Financial%20Statements) This section presents unaudited condensed consolidated balance sheets, statements of operations, and cash flows [Unaudited Condensed Consolidated Balance Sheets](index=5&type=section&id=Unaudited%20Condensed%20Consolidated%20Balance%20Sheets) The balance sheets present the Company's financial position as of June 30, 2025, and December 31, 2024, detailing assets, liabilities, and stockholders' equity. Key changes include a decrease in cash and cash equivalents, an increase in loan receivables, and a decrease in total stockholders' equity Unaudited Condensed Consolidated Balance Sheets (Selected Items) | ASSETS (USD) | June 30, 2025 | December 31, 2024 | | :-------------------------------- | :------------ | :---------------- | | Cash and cash equivalents | $185,186 | $1,650,962 | | Loan receivable | $8,749,445 | $6,088,295 | | TOTAL CURRENT ASSETS | $9,916,789 | $11,037,072 | | TOTAL ASSETS | $13,895,388 | $15,379,454 | | LIABILITIES AND STOCKHOLDERS' EQUITY (USD) | | | | TOTAL CURRENT LIABILITIES | $976,800 | $883,261 | | TOTAL LIABILITIES | $2,517,524 | $2,761,782 | | TOTAL STOCKHOLDERS' EQUITY | $11,377,864 | $12,617,672 | [Unaudited Consolidated Statements of Operations](index=6&type=section&id=Unaudited%20Consolidated%20Statements%20of%20Operations) The statements of operations provide a detailed breakdown of revenues, costs, and expenses for the three and six months ended June 30, 2025, and 2024. It highlights the significant increase in revenue from continuing operations, the impact of discontinued operations in the prior year, and the overall net loss trends Unaudited Consolidated Statements of Operations (Selected Items) | Metric (USD) | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :-------------------------------- | :------------ | :------------ | :------------ | :------------ | | REVENUE | $354,126 | $93,563 | $833,925 | $170,397 | | COST OF REVENUE | $319,226 | $45,598 | $742,769 | $88,098 | | GROSS PROFIT | $34,900 | $47,965 | $91,156 | $82,299 | | LOSS FROM OPERATIONS | ($780,849) | ($817,389) | ($1,741,297) | ($1,550,697) | | Interest income | $272,228 | $28,241 | $480,318 | $57,171 | | LOSS FROM CONTINUING OPERATIONS | ($512,528) | ($550,022) | ($1,266,437) | ($1,016,370) | | LOSS FROM DISCONTINUED OPERATIONS, NET OF TAX | — | ($62,858) | — | ($205,440) | | NET LOSS | ($512,528) | ($612,880) | ($1,266,437) | ($1,221,810) | | Loss per share - basic and diluted | ($0.16) | ($0.38) | ($0.39) | ($0.88) | [Unaudited Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) The cash flow statements detail the cash generated from or used in operating, investing, and financing activities for the six months ended June 30, 2025, and 2024. It shows a net decrease in cash for H1 2025, primarily due to significant cash used in investing activities Unaudited Condensed Consolidated Statements of Cash Flows (Selected Items) | Cash Flow Activity (USD) | H1 2025 | H1 2024 | | :-------------------------------- | :------------ | :------------ | | Net cash provided by operating activities | $1,333,668 | $827,980 | | Net cash used in investing activities | ($2,661,150) | ($912,617) | | Net cash used in financing activities | ($138,294) | $5,944,540 | | Net (decrease) increase in cash | ($1,465,776) | $5,859,903 |

Core Insights - Cheetah Net Supply Chain Service Inc. reported a significant revenue increase of 278.9% year-over-year for Q2 2025, totaling $354,126, despite an operating loss of $780,849 [2][4] - The company experienced a net loss of $512,528 for Q2 2025, which is a 6.8% improvement compared to the same period in 2024 [2][9] - Management is focusing on integrating recently acquired companies to build a more resilient growth foundation amid trade policy pressures [3] Financial Performance - Revenue from logistics and warehousing services for Q2 2025 was $354,126, with $52,684 (14.9%) from Edward Transit Express Group and $301,442 (85.1%) from TW & EW Services [4] - The cost of revenue for Q2 2025 was $319,226, leading to a gross profit of $34,900 [6][28] - General and administrative expenses decreased by 6.9% to $805,305 in Q2 2025, primarily due to reduced legal and accounting fees [7] Interest Income and Losses - Interest income for Q2 2025 was $272,228, a substantial increase of 863.9% compared to $28,241 in Q2 2024 [8][9] - The net loss from continuing operations for the six months ended June 30, 2025, was $1,266,437, compared to a net loss of $1,016,370 for the same period in 2024 [18][29] Discontinued Operations - The parallel-import vehicle business generated revenue of $200,297 in Q2 2024, with only one vehicle sold during that quarter [10] - The net loss for discontinued operations was approximately $62,858 for Q2 2024 [11] Liquidity and Cash Flow - As of June 30, 2025, the company had current assets of $9.9 million and current liabilities of approximately $0.9 million [21] - The company reported a net cash flow of $1.3 million from operating activities during the six months ended June 30, 2025 [22][30]

PART I – FINANCIAL INFORMATION This part presents the company's unaudited condensed consolidated financial statements and management's discussion and analysis [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements for Cheetah Net Supply Chain Service Inc., including balance sheets, statements of operations, changes in stockholders' equity, and cash flows, along with detailed notes [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets%20as%20of%20June%2030%2C%202025%20(Unaudited)%20and%20December%2031%2C%202024) The balance sheet shows a decrease in total assets and stockholders' equity from December 31, 2024, to June 30, 2025, primarily driven by a significant reduction in cash and cash equivalents, partially offset by an increase in loan receivables Key Balance Sheet Data (June 30, 2025 vs. December 31, 2024) | Metric | June 30, 2025 (Unaudited) | December 31, 2024* | | :-------------------------------- | :------------------------ | :----------------------- | | Cash and cash equivalents | $185,186 | $1,650,962 | | Loan receivable | $8,749,445 | $6,088,295 | | Total Current Assets | $9,916,789 | $11,037,072 | | Total Assets | $13,895,388 | $15,379,454 | | Total Current Liabilities | $976,800 | $883,261 | | Total Liabilities | $2,517,524 | $2,761,782 | | Total Stockholders' Equity | $11,377,864 | $12,617,672 | - Cash and cash equivalents decreased significantly from **$1,650,962** at December 31, 2024, to **$185,186** at June 30, 2025[8](index=8&type=chunk) - Loan receivable increased from **$6,088,295** at December 31, 2024, to **$8,749,445** at June 30, 2025[8](index=8&type=chunk) [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20for%20the%20Three%20and%20Six%20Months%20Ended%20June%2030%2C%202025%20and%202024%20(Unaudited)) The company reported increased revenue and gross profit for the six months ended June 30, 2025, compared to the prior year, primarily from continuing operations, but net loss increased due to higher operating expenses and a shift from income tax benefits to expenses Key Operating Results (Continuing Operations) | Metric (Continuing Operations) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Revenue | $354,126 | $93,563 | $833,925 | $170,397 | | Cost of Revenue | $319,226 | $45,598 | $742,769 | $88,098 | | Gross Profit | $34,900 | $47,965 | $91,156 | $82,299 | | Loss from Operations | $(780,849) | $(817,389) | $(1,741,297) | $(1,550,697) | | Other Income, Net | $281,308 | $20,092 | $493,202 | $41,338 | | Loss from Continuing Operations Before Income Taxes | $(499,541) | $(797,297) | $(1,248,095) | $(1,509,359) | | Income tax (benefits) | $12,987 | $(247,275) | $18,342 | $(492,989) | | Loss from Continuing Operations | $(512,528) | $(550,022) | $(1,266,437) | $(1,016,370) | | Net Loss | $(512,528) | $(612,880) | $(1,266,437) | $(1,221,810) | - Revenue from continuing operations for the six months ended June 30, 2025, increased by **389.4%** to **$833,925** from **$170,397** in the prior year[10](index=10&type=chunk) - Net loss for the six months ended June 30, 2025, was **$(1,266,437)**, an increase from **$(1,221,810)** in the same period of 2024[10](index=10&type=chunk) [Condensed Consolidated Statements of Changes in Stockholders' Equity](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Changes%20in%20Stockholders'%20Equity%20for%20the%20Three%20and%20Six%20Months%20Ended%20June%2030%2C%202025%20and%202024%20(Unaudited)) Stockholders' equity decreased from $12,617,672 at December 31, 2024, to $11,377,864 at June 30, 2025, primarily due to the net loss from continuing operations, partially offset by share-based compensation expenses Stockholders' Equity Changes (December 31, 2024 to June 30, 2025) | Item | December 31, 2024 | March 31, 2025 | June 30, 2025 | | :------------------------ | :---------------- | :------------- | :------------ | | Total Stockholders' Equity | $12,617,672 | $11,879,948 | $11,377,864 | | Share-based compensation | — | $16,185 | $10,444 | | Net loss from continuing operations | $(4,680,611) | $(753,909) | $(512,528) | - Accumulated deficit increased from **$(4,680,611)** at December 31, 2024, to **$(5,947,048)** at June 30, 2025, reflecting the net losses[12](index=12&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows%20for%20the%20Six%20Months%20Ended%20June%2030%2C%202025%20and%202024%20(Unaudited)) Net cash provided by operating activities increased significantly for the six months ended June 30, 2025, driven by cash from discontinued operations, but investing activities used substantial cash due to loans made to third parties, and financing activities shifted from providing cash to using cash Cash Flow Summary (Six Months Ended June 30) | Cash Flow Activity | 2025 (Unaudited) | 2024 (Unaudited) | | :---------------------------------- | :--------------- | :--------------- | | Net cash provided by operating activities | $1,333,668 | $827,980 | | Cash used in operating activities-continuing operations | $(1,206,833) | $(2,137,280) | | Cash provided by operating activities-discontinued operations | $2,540,501 | $2,965,260 | | Net cash used in investing activities | $(2,661,150) | $(912,617) | | Net cash (used in) provided by financing activities | $(138,294) | $5,944,540 | | Net (decrease) increase in cash | $(1,465,776) | $5,859,903 | | Cash, end of year | $185,186 | $6,292,901 | - Cash used in investing activities more than doubled in 2025, primarily due to **$3,445,150** in loans made to third parties[15](index=15&type=chunk) - Financing activities shifted from providing **$5,944,540** in 2024 (due to public offerings) to using **$138,294** in 2025[15](index=15&type=chunk) [Notes to Unaudited Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) These notes provide detailed explanations of the company's organization, significant accounting policies, financial instrument details, and the impact of its business transformation, including the discontinuation of parallel-import vehicle sales and the expansion into logistics and warehousing services [NOTE 1 — ORGANIZATION AND BUSINESS DESCRIPTION](index=8&type=section&id=NOTE%201%20%E2%80%94%20ORGANIZATION%20AND%20BUSINESS%20DESCRIPTION) Cheetah Net Supply Chain Service Inc. converted from an LLC to a corporation in 2022 and holds 100% equity in several subsidiaries, discontinuing its parallel-import vehicle dealership business in March 2025 to shift focus to logistics and warehousing services through acquisitions, a reverse stock split, and subsidiary dissolutions - The Company discontinued its parallel-import vehicle dealership business in March 2025 due to declining sales (**95.7% drop in 2024 revenue**) and uncollectible receivables[19](index=19&type=chunk)[20](index=20&type=chunk)[21](index=21&type=chunk) - Business focus shifted to logistics and warehousing services through acquisitions: Edward Transit Express Group Inc. (Jan 2024) for logistics and warehousing, and TW & EW Services Inc. (Dec 2024) for labor and logistics services[16](index=16&type=chunk)[22](index=22&type=chunk)[23](index=23&type=chunk) - A **1-for-16 reverse stock split** was effectuated on October 21, 2024, with Class A common stock trading on a post-split basis from October 24, 2024[18](index=18&type=chunk) - Cheetah Net Logistics LLC and Pacific Consulting LLC were dissolved on June 24, 2025, as part of internal corporate restructuring[16](index=16&type=chunk)[172](index=172&type=chunk) [NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES](index=12&type=section&id=NOTE%202%20%E2%80%94%20SUMMARY%20OF%20SIGNIFICANT%20ACCOUNTING%20POLICIES) The financial statements are prepared under U.S. GAAP, with a going concern assumption despite operating losses, supported by management's new business strategy, and key accounting policies include estimates, cash and cash equivalents, accounts receivable under CECL model, loan receivables, depreciation, amortization, fair value measurements, lease accounting, revenue recognition, and income tax accounting with a full valuation allowance against deferred tax assets - The Company's ability to continue as a going concern is dependent on successfully executing its new business strategy and achieving profitable operations, despite a net operating loss of approximately **$1.3 million** for the six months ended June 30, 2025[26](index=26&type=chunk)[29](index=29&type=chunk) - Revenue from continuing operations for the six months ended June 30, 2025, was **$833,925**, a significant increase from **$170,397** in 2024, primarily driven by the acquisition of TWEW[59](index=59&type=chunk) Cash and Cash Equivalents | Item | June 30, 2025 (Unaudited) | December 31, 2024 | | :-------------------- | :------------------------ | :---------------- | | Cash held in Current Accounts | $185,186 | $627,924 | | Certificate of Deposit| — | $1,023,038 | | Total | $185,186 | $1,650,962 | - A full valuation allowance was recorded against deferred tax assets as of June 30, 2025, and December 31, 2024, due to cumulative pretax book losses and forecasted losses for 2025[65](index=65&type=chunk)[134](index=134&type=chunk) [NOTE 3 — LOAN RECEIVABLE](index=25&type=section&id=NOTE%203%20%E2%80%94%20LOAN%20RECEIVABLE) Loan receivables significantly increased to $8,749,445 as of June 30, 2025, from $6,088,295 at December 31, 2024, due to several new unsecured short-term loan agreements with Hongkong Sanyou Petroleum Co Limited and Asia Finance Investment Limited, bearing annual interest rates ranging from 8.0% to 12.0%, which led to a substantial increase in interest income Short-term Loan Receivables | Date | Borrower | Principal Amount | Interest Rate | Maturity | | :----------- | :----------------------------- | :--------------- | :------------ | :------- | | June 20, 2024| Hongkong Sanyou Petroleum Co Ltd | $1,000,000 | 12.0% | 12 months| | July 23, 2024| Hongkong Sanyou Petroleum Co Ltd | $1,500,000 | 12.0% | 12 months| | Aug 16, 2024 | Asia Finance Investment Limited| $558,295 (adjusted)| 1.0% monthly | 12 months| | Oct 2, 2024 | Hongkong Sanyou Petroleum Co Ltd | $1,000,000 | 12.0% | 12 months| | Oct 28, 2024 | Hongkong Sanyou Petroleum Co Ltd | $1,000,000 | 12.0% | 12 months| | Nov 20, 2024 | Hongkong Sanyou Petroleum Co Ltd | $500,000 | 12.0% | 12 months| | Jan 7, 2025 | Asia Finance Investment Limited| $100,000 | 1.0% monthly | 12 months| | Jan 29, 2025 | Asia Finance Investment Limited| $300,000 | 1.0% monthly | 12 months| | Mar 17, 2025 | Hongkong Sanyou Petroleum Co Ltd | $950,000 | 12.0% | 12 months| | Mar 18, 2025 | Asia Finance Investment Limited| $825,400 | 1.0% monthly | 12 months| | Mar 19, 2025 | Asia Finance Investment Limited| $900,000 | 1.0% monthly | 12 months| | June 13, 2025| Asia Finance Investment Limited| $169,750 | 8.0% | 12 months| | June 26, 2025| Asia Finance Investment Limited| $200,000 | 8.0% | 12 months| Interest Income from Loan Receivables | Period | Interest Income | | :-------------------------- | :-------------- | | Three Months Ended June 30, 2025 | $272,228 | | Six Months Ended June 30, 2025 | $474,896 | | Three Months Ended June 30, 2024 | $21,250 | | Six Months Ended June 30, 2024 | $44,876 | [NOTE 4 — OTHER RECEIVABLES](index=27&type=section&id=NOTE%204%20%E2%80%94%20OTHER%20RECEIVABLES) Other receivables increased significantly to $843,579 as of June 30, 2025, from $370,696 at December 31, 2024, primarily due to a substantial rise in interest receivable from loan agreements Other Receivables Breakdown | Item | June 30, 2025 (Unaudited) | December 31, 2024 | | :---------------- | :------------------------ | :---------------- | | Rent Deposit | $114,992 | $112,751 | | Interest Receivable | $715,405 | $245,655 | | Others | $13,182 | $12,290 | | Total | $843,579 | $370,696 | - Interest receivable increased by **$469,750**, from **$245,655** at December 31, 2024, to **$715,405** at June 30, 2025, primarily from accrued interests on loan agreements[86](index=86&type=chunk) [NOTE 5 — DISCONTINUED OPERATIONS](index=28&type=section&id=NOTE%205%20%E2%80%94%20DISCONTINUED%20OPERATIONS) The company formally discontinued its parallel-import vehicle business on March 3, 2025, reclassifying all associated financial results as discontinued operations, which for the six months ended June 30, 2024, reported a net loss of $205,440 on revenues of $1,631,248, with significant collection efforts made on accounts receivable and credit losses recognized - The Board approved the discontinuation of the parallel-import vehicle business on March 3, 2025, leading to reclassification of all related financial results as discontinued operations[88](index=88&type=chunk)[193](index=193&type=chunk)[215](index=215&type=chunk) Loss from Discontinued Operations (Six Months Ended June 30, 2024) | Metric | 2024 (Unaudited) | | :---------------------- | :--------------- | | Revenue | $1,631,248 | | Cost of Revenue | $1,656,068 | | Gross loss | $(24,820) | | Total operating expenses| $98,262 | | Interest expenses | $82,358 | | Loss from discontinued operations | $(205,440) | - Accounts receivable from discontinued operations were **$2,540,501** as of December 31, 2024, after an allowance for credit loss of **$1,589,546**. An additional **$2.5 million** was collected by March 3, 2025, resulting in a zero balance[93](index=93&type=chunk)[94](index=94&type=chunk)[95](index=95&type=chunk)[96](index=96&type=chunk) - Cash provided by discontinued operating activities was **$2,540,501** for the six months ended June 30, 2025, primarily from accounts receivable collection[99](index=99&type=chunk)[226](index=226&type=chunk) [NOTE 6 — PROPERTY, PLANT, AND EQUIPMENT, NET](index=31&type=section&id=NOTE%206%20%E2%80%94%20PROPERTY%2C%20PLANT%2C%20AND%20EQUIPMENT%2C%20NET) Property, plant, and equipment, net, decreased slightly to $378,631 as of June 30, 2025, from $398,395 at December 31, 2024, with depreciation expense for the six months ended June 30, 2025, at $19,764 and no impairment losses recorded Property, Plant, and Equipment, Net | Item | June 30, 2025 (Unaudited) | December 31, 2024 | | :------------------------ | :------------------------ | :---------------- | | Motor Vehicles | $365,000 | $365,000 | | Leasehold improvements | $60,795 | $60,795 | | Less accumulated depreciation | $(47,164) | $(27,400) | | Total | $378,631 | $398,395 | - Depreciation expense for the six months ended June 30, 2025, was **$19,764**, compared to **$7,636** for the same period in 2024[100](index=100&type=chunk) [NOTE 7 — LEASES](index=33&type=section&id=NOTE%207%20%E2%80%94%20LEASES) The company leases office and warehouse spaces, recognizing operating lease ROU assets and liabilities, with total lease expenses for the six months ended June 30, 2025, significantly increasing to $416,258 due to a new office lease in Irvine, California, and an extended warehouse lease for its subsidiary Edward, while also attempting to terminate an existing lease - A new non-cancellable operating lease for office space in Irvine, California, commenced on July 23, 2024, with monthly base rent ranging from **$42,000** to **$45,000**[106](index=106&type=chunk) Total Lease Expenses (Six Months Ended June 30) | Lease Type | 2025 (Unaudited) | 2024 (Unaudited) | | :---------------------- | :--------------- | :--------------- | | Operating lease expenses| $355,526 | $119,703 | | Short-term lease expenses | $60,732 | $47,849 | | Total lease expenses | $416,258 | $167,552 | Operating Lease Liabilities | Item | June 30, 2025 (Unaudited) | December 31, 2024 | | :------------------------------ | :------------------------ | :---------------- | | Right-of-use assets | $1,548,646 | $1,836,521 | | Operating lease liabilities – current | $612,719 | $438,351 | | Operating lease liabilities – non-current | $950,372 | $1,268,501 | | Total operating lease liabilities | $1,563,091 | $1,706,852 | [NOTE 8 — INTANGIBLE ASSET AND GOODWILL](index=35&type=section&id=NOTE%208%20%E2%80%94%20INTANGIBLE%20ASSET%20AND%20GOODWILL) The company acquired Edward in January 2024 for $1.5 million and TWEW in November 2024 for $1 million, recognizing goodwill and intangible assets such as developed technology, customer relationships, and trade names, with amortization expenses for intangible assets totaling $56,144 for the six months ended June 30, 2025, and no impairment losses - Acquisition of Edward (Jan 2024): Gross purchase price **$1.5 million**, consisting of **$0.3 million cash** and **$0.9 million fair value of Class A common stock**. Recognized goodwill of **$568,532** and intangible assets (developed technology, customer relationships, trade names)[114](index=114&type=chunk)[115](index=115&type=chunk)[116](index=116&type=chunk)[117](index=117&type=chunk) - Acquisition of TWEW (Nov 2024): Gross purchase price **$1 million**, consisting of **$0.2 million cash** and **$0.8 million fair value of Class A common stock**. Recognized goodwill of **$475,861** and customer relationships of **$600,000**[118](index=118&type=chunk)[119](index=119&type=chunk) Intangible Assets and Estimated Useful Lives | Intangible Assets | Estimated Useful Lives (months) | | :------------------------ | :------------------------------ | | Edward-Developed Technology | 84 | | Edward-Customer Relationships | 144 | | Edward-Trade Names | 84 | | TWEW-Customer Relationships | 120 | - Accumulated amortization expenses for intangible assets were **$56,144** for the six months ended June 30, 2025, and **$21,786** for the same period in 2024[119](index=119&type=chunk) [NOTE 9 — PREMIUM FINANCE](index=37&type=section&id=NOTE%209%20%E2%80%94%20PREMIUM%20FINANCE) The company entered a premium finance agreement on August 1, 2024, to finance directors and officers' insurance, borrowing $205,774.80 at an 8.51% annual interest rate, which was fully repaid by June 2, 2025, with related interest expenses of $3,004 for the six months ended June 30, 2025 - A premium finance loan of **$205,774.80** at **8.51%** annual interest, taken on August 1, 2024, for D&O insurance, was fully repaid by June 2, 2025[121](index=121&type=chunk) Premium Finance Balance | Item | June 30, 2025 (Unaudited) | December 31, 2024 | | :------------- | :------------------------ | :---------------- | | Premium finance | $— | $120,461 | - Interest expenses from premium finance were **$3,004** for the six months ended June 30, 2025, compared to **$996** for the same period in 2024[122](index=122&type=chunk) [NOTE 10 — LONG-TERM BORROWINGS](index=37&type=section&id=NOTE%2010%20%E2%80%94%20LONG-TERM%20BORROWINGS) Total long-term borrowings decreased slightly to $626,764 as of June 30, 2025, from $644,597 at December 31, 2024, including loans from the U.S. Small Business Administration (SBA) and Thread Capital Inc., with scheduled monthly installment payments extending to 2050 and 2031, respectively, and interest expenses of $13,406 for the six months ended June 30, 2025 Long-Term Borrowings | Lender | June 30, 2025 (Unaudited) | December 31, 2024 | | :---------------------- | :------------------------ | :---------------- | | Small Business Administration | $462,329 | $468,542 | | Thread Capital Inc. | $164,435 | $176,055 | | Total | $626,764 | $644,597 | | Current portion | $36,412 | $34,577 | | Non-current portion | $590,352 | $610,020 | - SBA loan: **$500,000** total, fixed interest rate of **3.75%** per annum, monthly payments of **$2,485**, maturing May 2050[123](index=123&type=chunk) - Thread Capital loan: **$221,300** total, fixed annual interest rate of **5.5%** (after Dec 1, 2022), monthly payments of **$2,721**, maturing May 2031[124](index=124&type=chunk) - Interest expenses for long-term borrowings were **$13,406** for the six months ended June 30, 2025, compared to **$15,563** for the same period in 2024[125](index=125&type=chunk) [NOTE 11 — STOCK BASED COMPENSATION](index=38&type=section&id=NOTE%2011%20%E2%80%94%20STOCK%20BASED%20COMPENSATION) The company adopted the Amended and Restated 2024 Stock Incentive Plan, granting both vested and non-vested shares to directors and employees, resulting in share-based compensation expenses of $26,629 for the six months ended June 30, 2025, with total unrecognized compensation cost for non-vested shares of $183,337 to be recognized over a weighted average period of three years - The Company adopted the Amended and Restated 2024 Stock Incentive Plan on August 16, 2024, approved by stockholders on September 30, 2024[126](index=126&type=chunk) - Share-based compensation expenses were **$26,629** for the six months ended June 30, 2025, compared to nil in 2024[129](index=129&type=chunk)[207](index=207&type=chunk) Non-Vested Shares Activity (Six Months Ended June 30, 2025) | Item | Number of non-vested Shares | Weighted Average Grant Date Fair Value Per Share (US$) | | :--------------------------------- | :-------------------------- | :----------------------------------------------------- | | Outstanding as of December 31, 2024 | 79,062 | 3.28 | | Correction | (6,250) | 3.39 | | Forfeited | (6,250) | 1.94 | | Outstanding as of June 30, 2025 | 66,562 | 3.39 | - Total unrecognized compensation cost relating to non-vested shares was **$183,337** as of June 30, 2025, to be recognized over a weighted average period of three years[130](index=130&type=chunk) [NOTE 12 — INCOME TAXES](index=40&type=section&id=NOTE%2012%20%E2%80%94%20INCOME%20TAXES) The company recorded an income tax expense of $18,342 for the six months ended June 30, 2025, a significant change from a $492,989 income tax benefit in the prior year, including current quarter provision and prior period/acquisition-related tax payments, while maintaining a full valuation allowance against deferred tax assets due to cumulative and forecasted losses Income Tax Provision (Six Months Ended June 30) | Component | 2025 (Unaudited) | 2024 (Unaudited) | | :------------------------ | :--------------- | :--------------- | | Total current income tax provision | $5,200 | $4,328 | | Total deferred income tax expenses (benefits) | — | $(497,317) | | Total income tax benefits | $5,200 | $(492,989) | - The consolidated statement of operations reflects an income tax expense of approximately **$18,342** for the six months ended June 30, 2025, including current provision and prior period/acquisition-related tax filings[132](index=132&type=chunk)[213](index=213&type=chunk) - A full valuation allowance is recorded against deferred tax assets due to a three-year cumulative pretax book loss and a forecasted loss for 2025[134](index=134&type=chunk) Effective Tax Rate (Six Months Ended June 30) | Item | 2025 (Unaudited) | 2024 (Unaudited) | | :------------------------ | :--------------- | :--------------- | | Federal income tax at the statutory rate | 21.0 % | 21.0 % | | State statutory tax rate | 4.3 % | 11.4 % | | Change in valuation allowance | (25.3)% | — % | | Effective tax rate | (0.4)% | 32.7 % | [NOTE 13 — CONCENTRATIONS](index=42&type=section&id=NOTE%2013%20%E2%80%94%20CONCENTRATIONS) The company's business is influenced by political, economic, and legal environments in the U.S. and PRC, particularly due to its logistics services catering to cross-border trade, with risks including trade policy changes, tariffs, and dependence on limited customers and third-party providers in the early stage of its logistics and warehousing business - The company's business is influenced by political, economic, and legal environments in the U.S. and PRC, especially due to its logistics services for cross-border trade[138](index=138&type=chunk) - Risks include potential negative impacts from government policies on ocean freight and tariffs, high dependence on limited customers and third-party providers, and competition in the logistics and warehousing industry[35](index=35&type=chunk)[175](index=175&type=chunk) [NOTE 14 — STOCKHOLDERS' EQUITY](index=42&type=section&id=NOTE%2014%20%E2%80%94%20STOCKHOLDERS'%20EQUITY) The company's authorized common stock is 1,000,000,000 shares ($0.0001 par value), comprising Class A (one vote) and Class B (15 votes) common stock, with key equity activities including subscription payments, IPO proceeds, follow-on offerings, a 1-for-16 reverse stock split, and termination of warrants - Authorized common stock: **1,000,000,000 shares** (**$0.0001** par value), with **891,750,000 Class A** (one vote) and **108,250,000 Class B** (15 votes)[142](index=142&type=chunk) - IPO (August 2023): **78,125 Class A shares** at **$64.00/share**, gross proceeds **$5.0 million**[145](index=145&type=chunk) - May Offering (May 2024): **825,625 Class A shares** at **$9.92/share**, gross proceeds **$8.19 million**[147](index=147&type=chunk) - July Offering (July 2024): **404,979 Class A shares** at **$3.68/share**, gross proceeds **$1.49 million**[148](index=148&type=chunk)[244](index=244&type=chunk) - A **1-for-16 reverse stock split** took effect on October 21, 2024[149](index=149&type=chunk) - **3,906 equity-classified underwriter warrants** were terminated on March 4, 2024, with a termination fee of **$78,125**[154](index=154&type=chunk) [NOTE 15 — SEGMENT REPORTING](index=45&type=section&id=NOTE%2015%20%E2%80%94%20SEGMENT%20REPORTING) Following the discontinuation of the parallel-import vehicle business, the company now operates as a single reportable segment focused on logistics and warehousing services, with substantially all long-lived assets located in the U.S., and the segment reported a net loss of $(1,266,437) for the six months ended June 30, 2025 - The company now operates in one operating segment: logistics and warehousing services, following the discontinuation of the parallel-import vehicle business[73](index=73&type=chunk)[155](index=155&type=chunk) Logistics and Warehousing Services Segment Performance (Six Months Ended June 30) | Metric | 2025 (Unaudited) | 2024 (Unaudited) | | :------------------------ | :--------------- | :--------------- | | Revenues | $833,925 | $170,397 | | Cost of revenues | $742,769 | $88,098 | | Staff cost | $616,274 | $532,290 | | Share-based compensation expenses | $26,629 | — | | Lease expense | $416,258 | $167,552 | | Depreciation and amortization expenses | $75,907 | $29,422 | | Interest expenses | $16,872 | $16,607 | | Income tax expenses (credit) | $18,342 | $(492,989) | | Segment net loss | $(1,266,437) | $(1,016,370) | Discontinued Operations (Parallel-Import Vehicle Segment) Performance (Six Months Ended June 30, 2024) | Metric | 2024 (Unaudited) | | :------------------------ | :--------------- | | Revenues | $1,631,248 | | Cost of revenues | $1,656,068 | | Gross loss | $(24,820) | | Staff cost | $77,652 | | Interest expenses | $82,358 | | Segment net loss | $(205,440) | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=48&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on the company's financial performance, condition, and operational changes, highlighting the strategic shift from parallel-import vehicle sales to logistics and warehousing services, the impact of acquisitions, financial results for both continuing and discontinued operations, liquidity, capital resources, and critical accounting policies [Business Overview and Recent Developing Trends](index=48&type=section&id=Business%20Overview%20and%20Recent%20Developing%20Trends) Cheetah Net has transitioned from parallel-import vehicle sales, discontinued in March 2025 due to market decline, to logistics and warehousing services, supported by acquisitions of Edward (Feb 2024) and TWEW (Dec 2024), relocation of its headquarters to Irvine, California, a 1-for-16 reverse stock split in October 2024, and dissolution of two subsidiaries in June 2025, facing risks related to U.S.-PRC political and economic environments and market competition - The company discontinued its parallel-import vehicle business on March 3, 2025, due to a significant decline in sales (**95.7% drop in 2024**) and collection difficulties[165](index=165&type=chunk)[166](index=166&type=chunk) - Business focus shifted to logistics and warehousing services, supported by the acquisition of Edward (Feb 2024) and TWEW (Dec 2024), and relocation of headquarters to Irvine, California[167](index=167&type=chunk) - A **1-for-16 reverse stock split** was effectuated on October 21, 2024[171](index=171&type=chunk) - Cheetah Net Logistics LLC and Pacific Consulting LLC were dissolved on June 24, 2025[172](index=172&type=chunk) - Risks include dependence on U.S.-PRC political/economic environments, trade policies, limited customers, and intense industry competition[173](index=173&type=chunk)[175](index=175&type=chunk) [Results of Operations](index=52&type=section&id=Results%20of%20Operations) For the six months ended June 30, 2025, revenue from continuing operations (logistics and warehousing) increased by 389.4% to $833,925, primarily due to the TWEW acquisition, and gross profit also increased by 10.8%, but net loss from continuing operations widened to $(1,266,437) from $(1,016,370) in the prior year, mainly due to increased general and administrative expenses and a shift from income tax benefits to expenses, while discontinued operations (parallel-import vehicles) reported a net loss of $(205,440) for the six months ended June 30, 2024, with no revenue in 2025 Consolidated Results of Operations (Continuing Operations) | Metric (Continuing Operations) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Revenues | $354,126 | $93,563 | $833,925 | $170,397 | | Cost of Revenues | $319,226 | $45,598 | $742,769 | $88,098 | | Gross Profit | $34,900 | $47,965 | $91,156 | $82,299 | | General and administrative expenses | $805,305 | $865,354 | $1,805,824 | $1,632,996 | | Share-based compensation expenses | $10,444 | — | $26,629 | — | | Interest income, net | $264,168 | $19,939 | $463,446 | $40,564 | | Income tax (benefits) | $12,987 | $(247,275) | $18,342 | $(492,989) | | Loss from continuing operations | $(512,528) | $(550,022) | $(1,266,437) | $(1,016,370) | - Revenue from Edward decreased by **32.4%** for the six months ended June 30, 2025, due to a temporary suspension in U.S.-PRC ocean freight activities, partially offset by stabilized trade flow[200](index=200&type=chunk) - Revenue from TWEW contributed **$718,726** (**86.2% of total revenue**) for the six months ended June 30, 2025, following its acquisition[199](index=199&type=chunk) - General and administrative expenses increased by **10.6%** to **$1.8 million** for the six months ended June 30, 2025, driven by higher rental and lease expenses, personnel costs, and depreciation/amortization[206](index=206&type=chunk) - Interest income from continuing operations surged by **740.1%** to **$480,318** for the six months ended June 30, 2025, primarily from short-term loan receivables and certificates of deposit funded by public offerings[210](index=210&type=chunk) - Discontinued operations (parallel-import vehicle business) reported a net loss of approximately **$205,440** for the six months ended June 30, 2024, with no revenue in 2025[219](index=219&type=chunk) [Liquidity and Capital Resources](index=66&type=section&id=Liquidity%20and%20Capital%20Resources) The company's current assets were $9.9 million as of June 30, 2025, including $0.2 million in cash and cash equivalents and $8.7 million in loan receivables, with current liabilities totaling $0.9 million; net cash provided by operating activities was $1.3 million for the six months ended June 30, 2025, largely due to cash from discontinued operations, but investing activities used $2.7 million, primarily for loans to third parties, and financing activities used $0.1 million, a shift from providing $5.9 million in the prior year Key Liquidity Metrics (June 30, 2025) | Metric | Amount (USD) | | :---------------------- | :----------- | | Current assets | $9.9 million | | Cash and cash equivalents | $0.2 million | | Loan receivables | $8.7 million | | Current liabilities | $0.9 million | Cash Flow Summary (Six Months Ended June 30) | Cash Flow Activity | 2025 (Unaudited) | 2024 (Unaudited) | | :---------------------------------- | :--------------- | :--------------- | | Net cash provided by operating activities | $1,333,668 | $827,980 | | Net cash used in investing activities | $(2,661,150) | $(912,617) | | Net cash (used in) provided by financing activities | $(138,294) | $5,944,540 | - Net cash used in investing activities increased to approximately **$2.7 million** for the six months ended June 30, 2025, primarily due to **$3.5 million** in short-term loans made to third parties[228](index=228&type=chunk) - Net cash used in financing activities was **$138,294** for the six months ended June 30, 2025, a significant change from **$7.1 million** provided in the prior year, which included proceeds from public offerings[231](index=231&type=chunk)[232](index=232&type=chunk) [Off-Balance Sheet Arrangements](index=67&type=section&id=Off-Balance%20Sheet%20Arrangements) The company does not currently have any off-balance sheet financing arrangements or relationships with unconsolidated entities or financial partnerships for such purposes - The company does not have any off-balance sheet financing arrangements[234](index=234&type=chunk) [Critical Accounting Policies](index=67&type=section&id=Critical%20Accounting%20Policies) There have been no material changes to the company's critical accounting estimates since the Annual Report - No material changes to critical accounting estimates since the Annual Report[235](index=235&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=68&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) As a smaller reporting company, Cheetah Net Supply Chain Service Inc. is not required to provide quantitative and qualitative disclosures about market risk - As a smaller reporting company, the registrant is not required to provide quantitative and qualitative disclosures about market risk[237](index=237&type=chunk) [Item 4. Controls and Procedures](index=68&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, under the supervision of its principal executive and financial officers, evaluated the effectiveness of disclosure controls and procedures as of June 30, 2025, and determined them to be ineffective at a reasonable assurance level, with no material changes occurring in internal control over financial reporting during the quarter - Disclosure controls and procedures were determined to be ineffective at a reasonable assurance level as of June 30, 2025[239](index=239&type=chunk) - No material changes occurred in internal control over financial reporting during the quarter ended June 30, 2025[240](index=240&type=chunk) PART II – OTHER INFORMATION This part covers legal proceedings, risk factors, equity sales, and other disclosures required for the quarterly report [Item 1. Legal Proceedings](index=69&type=section&id=Item%201.%20Legal%20Proceedings) The company is not currently involved in any material legal proceedings but anticipates involvement in ordinary course legal matters, which could result in material expenses or adverse financial impacts - The company is not currently involved in any material legal proceedings[242](index=242&type=chunk) - Anticipates involvement in legal proceedings, claims, and litigation arising in the ordinary course of business, which could have a material adverse effect on financial statements[242](index=242&type=chunk) [Item 1A. Risk Factors](index=69&type=section&id=Item%201A.%20Risk%20Factors) As a smaller reporting company, Cheetah Net Supply Chain Service Inc. is not required to provide the information regarding risk factors - As a smaller reporting company, the registrant is not required to provide risk factor information[243](index=243&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=69&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company completed two public offerings: the July Offering (404,979 Class A shares at $3.68/share, net proceeds $1.1 million) and the May Offering (825,625 Class A shares at $9.92/share, net proceeds $7.4 million), with proceeds from the July Offering partially used for the TWEW acquisition and strategically deployed into short-term loan arrangements to generate interest income, and May Offering proceeds fully used for working capital and general corporate purposes - July Offering: Issued **404,979 Class A common shares** at **$3.68/share**, generating net proceeds of approximately **$1.1 million**[244](index=244&type=chunk)[246](index=246&type=chunk) - July Offering proceeds: **$200,000** used for the TWEW acquisition; remaining proceeds strategically deployed into short-term loan arrangements to generate interest income[246](index=246&type=chunk)[247](index=247&type=chunk) - May Offering: Issued **825,625 Class A common shares** at **$9.92/share**, generating net proceeds of approximately **$7.4 million**[248](index=248&type=chunk)[250](index=250&type=chunk) - May Offering proceeds were fully used for working capital and other general corporate purposes[250](index=250&type=chunk) [Item 3. Defaults Upon Senior Securities](index=70&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) This item is not applicable to the company - Not applicable[251](index=251&type=chunk) [Item 4. Mine Safety Disclosures](index=70&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[252](index=252&type=chunk) [Item 5. Other Information](index=70&type=section&id=Item%205.%20Other%20Information) There is no other information to report under this item - None[252](index=252&type=chunk) [Item 6. Exhibits](index=71&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed as part of the quarterly report on Form 10-Q, including articles of incorporation, bylaws, specimen stock certificate, loan agreements, and certifications - Includes Fourth Amended and Restated Article of Incorporation, Bylaws, Specimen Stock Certificate, Loan Agreements, and Certifications (302 and 906)[255](index=255&type=chunk) SIGNATURES This section provides the official certification and signing of the quarterly report by authorized personnel - The report was signed by Huan Liu, Chief Executive Officer, Director, and Chairman of the Board of Directors, on August 4, 2025[259](index=259&type=chunk)

Revenue and Profitability - For Q1 2025, Cheetah reported revenue of $479,799 from logistics and warehousing services, with TWEW contributing $417,284 (87.0%) and Edward contributing $62,515 (13.0%) [3] - Revenue from Edward decreased by 18.6% due to reduced international trade flow resulting from U.S.-China trade tensions [3] - The company reported a gross profit of $56,256 for Q1 2025, with a cost of revenue of $423,543 [4] - Cheetah experienced a net loss of $753,909 in Q1 2025, compared to a net loss of $608,930 in the same period of 2024 [9] - For the three months ended March 31, 2025, Cheetah Net Supply Chain Service Inc. reported a net loss of $753,909, compared to a net loss of $608,930 for the same period in 2024, indicating an increase in losses of approximately 23.8% [30] - Cheetah Net Supply Chain Service Inc. reported a loss from continuing operations of $753,909 for the three months ended March 31, 2025, compared to a loss of $466,348 for the same period in 2024, reflecting an increase of about 61.5% [30] Expenses and Financial Position - General and administrative expenses increased by $0.2 million, or 30.3%, to $1.0 million compared to Q1 2024, primarily due to increased personnel-related expenses and new office space [5] - Interest income surged to $208,090 in Q1 2025, up 619.3% from $28,930 in Q1 2024, driven by interest on short-term loans and certificates of deposit [8] - The company incurred share-based compensation expenses of $16,185 for the three months ended March 31, 2025, while there were no such expenses reported for the same period in 2024 [30] - The company reported depreciation expenses of $9,882 for the three months ended March 31, 2025, compared to $2,171 for the same period in 2024, showing a significant increase of approximately 354.5% [30] Assets and Liabilities - As of March 31, 2025, total current assets were $10.2 million, with cash and cash equivalents at $0.3 million and loan receivables at $9.1 million [13] - The company had total stockholders' equity of $11.9 million as of March 31, 2025, down from $12.6 million at the end of 2024 [16] - Cheetah's current liabilities totaled approximately $0.9 million, primarily related to operating lease liabilities and other payables [13] - The balance of stockholders' equity as of March 31, 2025, was $11,879,948, a decrease from $12,617,672 as of December 31, 2024, indicating a decline of approximately 5.9% [27] - Cheetah Net Supply Chain Service Inc. had a total accumulated deficit of $(5,434,520) as of March 31, 2025, compared to $(4,680,611) as of December 31, 2024, reflecting an increase in the deficit of approximately 16.1% [27] Cash Flow and Investment Activities - The cash provided by operating activities for discontinued operations was $2,540,500 for the three months ended March 31, 2025, compared to $3,166,058 in the same period of 2024, reflecting a decrease of about 19.7% [30] - The total cash used in investing activities for the three months ended March 31, 2025, was $3,026,400, significantly higher than $47,617 used in the same period of 2024 [30] - Cheetah Net Supply Chain Service Inc. reported cash and cash equivalents of $324,142 at the end of March 31, 2025, down from $903,204 at the end of March 31, 2024, representing a decrease of approximately 64.1% [30] Future Outlook - The company plans to seek new business opportunities and improve operational efficiencies to position itself for future growth despite current challenges [2] - The fair value of common stock issued for acquisition was reported as $1,700,000 in the previous year, indicating ongoing investment activities [30]

Core Insights - Cheetah Net Supply Chain Service Inc. has shifted its focus from parallel-import vehicle sales to logistics and warehousing services due to challenging market conditions in China and trade tensions with the U.S. [2][3] - The company reported a significant decline in sales volume in the parallel-import vehicle segment, leading to the discontinuation of this business line [2][3] - The logistics and warehousing segment generated $479,799 in revenue for Q1 2025, with TWEW contributing 87% of this revenue [3][4] Recent Highlights - The parallel-import vehicle business faced a significant downturn, prompting the board to approve its discontinuation [2] - The company is focusing on operational efficiencies and expanding service offerings to position itself for future growth [2] - The newly acquired subsidiary TWEW outperformed the earlier acquisition, Edward Transit Express Group, indicating a positive shift in business strategy [2] Financial Performance - For Q1 2025, total revenue was $479,799, with a gross profit of $56,256 [3][4] - General and administrative expenses increased by 30.3% to $1.0 million, primarily due to hiring and operational expansions [5] - Interest income surged to $208,090, a 619.3% increase compared to the same period in 2024, driven by interest on short-term loans and certificates of deposit [7] Losses and Discontinued Operations - The company reported a net loss of $753,909 for Q1 2025, compared to a net loss of $608,930 in Q1 2024 [8][10] - The discontinued parallel-import vehicle business generated $1.4 million in revenue in Q1 2024 but incurred a gross loss of $9,283 [9][10] Liquidity and Cash Flow - As of March 31, 2025, current assets totaled $10.2 million, with cash and cash equivalents at $0.3 million [12] - The company reported net cash flow of $1.8 million from operating activities for Q1 2025 [13] - Total stockholders' equity decreased to $11.9 million from $12.6 million as of December 31, 2024 [13]

Part I [Item 1. Financial Statements](index=4&type=section&id=Item%201%20Financial%20Statements) Unaudited Q1 2025 financials reflect a business transformation, with discontinued vehicle operations, revenue growth in logistics, a net loss, and decreased assets Condensed Consolidated Balance Sheet Highlights (Unaudited) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $324,142 | $1,650,962 | | Loan receivable | $9,114,695 | $6,088,295 | | TOTAL ASSETS | $14,508,243 | $15,379,454 | | **Liabilities & Equity** | | | | TOTAL LIABILITIES | $2,628,295 | $2,761,782 | | TOTAL STOCKHOLDERS' EQUITY | $11,879,948 | $12,617,672 | Condensed Consolidated Statements of Operations Highlights (Unaudited) | Account | Three Months Ended Mar 31, 2025 | Three Months Ended Mar 31, 2024 | | :--- | :--- | :--- | | REVENUE | $479,799 | $76,834 | | GROSS PROFIT | $56,256 | $34,334 | | LOSS FROM OPERATIONS | $(960,448) | $(733,308) | | LOSS FROM CONTINUING OPERATIONS | $(753,909) | $(466,348) | | LOSS FROM DISCONTINUED OPERATIONS | $0 | $(142,582) | | NET LOSS | $(753,909) | $(608,930) | | Loss per share - basic and diluted | $(0.23) | $(0.52) | Condensed Consolidated Statements of Cash Flows Highlights (Unaudited) | Account | Three Months Ended Mar 31, 2025 | Three Months Ended Mar 31, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $1,768,126 | $1,695,717 | | Net cash used in investing activities | $(3,026,400) | $(47,617) | | Net cash used in financing activities | $(68,539) | $(1,177,894) | | Net (decrease) increase in cash | $(1,326,813) | $470,206 | - On March 3, 2025, the Board approved the discontinuation of the parallel-import vehicle business, with financial results now reported as discontinued operations in accordance with ASC 205-20[23](index=23&type=chunk)[93](index=93&type=chunk) [Note 1: Organization and Business Description](index=9&type=section&id=NOTE%201%20%E2%80%94%20ORGANIZATION%20AND%20BUSINESS%20DESCRIPTION) Cheetah Net is transitioning from its discontinued vehicle business to logistics and warehousing, supported by acquisitions and a reverse stock split - The company is undergoing a business transformation, shifting its focus from parallel-import vehicle sales to logistics and warehousing services following the acquisitions of Edward and TWEW[26](index=26&type=chunk) - The parallel-import vehicle business was formally discontinued on March 3, 2025, due to a significant decline in sales (**95.7% drop in revenue in 2024**) and challenges in collecting receivables[22](index=22&type=chunk)[23](index=23&type=chunk) - A **1-for-16 reverse stock split** was effectuated on October 21, 2024, and all share information has been retrospectively adjusted[20](index=20&type=chunk) [Note 5: Discontinued Operations](index=28&type=section&id=NOTE%205%20%E2%80%94%20DISCONTINUED%20OPERATIONS) The parallel-import vehicle business is discontinued, reporting a Q1 2024 loss, with significant 2024 credit losses and substantial Q1 2025 receivables collection Loss from Discontinued Operations (Q1 2024) | Metric | For the Three Months Ended March 31, 2024 | | :--- | :--- | | Revenue | $1,430,951 | | Gross loss | $(9,283) | | Loss from discontinued operations | $(142,582) | - The company recorded a total allowance for credit loss of **$1.6 million** for the year ended December 31, 2024, related to the discontinued vehicle business[101](index=101&type=chunk) - In Q1 2025, the company collected **$2.5 million** in accounts receivable from the discontinued operations, resulting in a significant cash inflow from these activities[102](index=102&type=chunk)[203](index=203&type=chunk) [Note 8: Intangible Asset and Goodwill](index=36&type=section&id=NOTE%208%20%E2%80%94%20INTANGIBLE%20ASSET%20AND%20GOODWILL) Intangible assets and goodwill from Edward and TWEW acquisitions total $1.2 million and $1.0 million respectively, with Q1 2025 amortization expenses - Acquired **100% of Edward** on February 2, 2024, for a total purchase consideration of **$1.2 million**, resulting in goodwill of **$568,532** and intangible assets (developed technology, customer relationships, trade names) of **$516,000**[119](index=119&type=chunk)[121](index=121&type=chunk)[122](index=122&type=chunk) - Acquired **100% of TWEW** on December 19, 2024, for a total purchase consideration of **$1.0 million**, resulting in goodwill of **$475,861** and customer relationship intangibles of **$600,000**[123](index=123&type=chunk)[124](index=124&type=chunk) - For the three months ended March 31, 2025, the company incurred amortization expenses of **$28,071** related to these acquired intangible assets[124](index=124&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=48&type=section&id=Item%202%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the strategic pivot to logistics, noting Q1 2025 revenue growth from acquisitions, increased costs, a net loss, and sufficient liquidity - The company has formally discontinued its parallel-import vehicle business as of March 3, 2025, and is now focused on expanding its logistics and warehousing services through the acquisitions of Edward (Feb 2024) and TWEW (Dec 2024)[167](index=167&type=chunk)[169](index=169&type=chunk)[170](index=170&type=chunk) Results of Operations Summary (Continuing Operations) | Metric | Q1 2025 (Unaudited) | Q1 2024 (Unaudited) | Change % | | :--- | :--- | :--- | :--- | | Revenue | $479,799 | $76,834 | 524.5% | | Gross Profit | $56,256 | $34,334 | 63.8% | | Loss from continuing operations | $(753,909) | $(466,348) | 61.7% | | Net Loss | $(753,909) | $(608,930) | 23.8% | - The significant revenue increase in Q1 2025 is primarily attributed to the TWEW acquisition, which contributed **$417,284** (**87.0%** of total revenue)[177](index=177&type=chunk) - As of March 31, 2025, the company had **$0.3 million** in cash and cash equivalents and **$9.1 million** in loan receivables, with management believing it has sufficient capital to fund operations for at least the next 12 months[197](index=197&type=chunk)[199](index=199&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=62&type=section&id=Item%203%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) As a smaller reporting company, the company is exempt from providing quantitative and qualitative disclosures about market risk - As a smaller reporting company, Cheetah Net is not required to provide quantitative and qualitative disclosures about market risk[213](index=213&type=chunk) [Item 4. Controls and Procedures](index=62&type=section&id=Item%204%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were ineffective as of March 31, 2025, with no material changes to internal control over financial reporting during the quarter - Management concluded that as of March 31, 2025, the company's disclosure controls and procedures were **ineffective** at a reasonable assurance level[215](index=215&type=chunk) - No material changes occurred in the company's internal control over financial reporting during the quarter ended March 31, 2025[216](index=216&type=chunk) Part II [Item 1. Legal Proceedings](index=63&type=section&id=Item%201%20Legal%20Proceedings) The company is not currently involved in material legal proceedings but anticipates potential litigation in the ordinary course of business - The company reports no current material legal proceedings[218](index=218&type=chunk) [Item 1A. Risk Factors](index=63&type=section&id=Item%201A%20Risk%20Factors) As a smaller reporting company, the company is not required to provide information regarding risk factors - The company is not required to provide risk factors as it qualifies as a smaller reporting company[219](index=219&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=63&type=section&id=Item%202%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company details the use of proceeds from two public offerings, allocating funds from the July 2024 offering to the TWEW acquisition and the May 2024 offering to working capital - The July 2024 Offering raised net proceeds of approximately **$1.1 million**, of which **$200,000** was used as cash consideration for the acquisition of TWEW[220](index=220&type=chunk)[222](index=222&type=chunk) - The May 2024 Offering raised net proceeds of approximately **$7.4 million**, with about **$7.2 million** used for working capital and general corporate purposes as of the report date[223](index=223&type=chunk)[225](index=225&type=chunk) [Item 6. Exhibits](index=65&type=section&id=Item%206%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including corporate governance documents, material contracts, and CEO/CFO certifications - The report includes several new loan agreements as exhibits, dated between November 2024 and March 2025, with Hongkong Sanyou Petroleum Co Limited and Asia Finance Investment Limited[230](index=230&type=chunk) - Certifications from the Principal Executive Officer and Principal Financial Officer pursuant to Sarbanes-Oxley Sections 302 and 906 are filed with the report[230](index=230&type=chunk)

Discontinued Operations - The Company's sales from discontinued operations in the parallel-import vehicle segment declined by 95.7% to $1.6 million in 2024, down from $38.3 million in 2023[14]. - The net loss from discontinued operations was approximately $2.0 million in 2024, compared to a net income of $1.8 million in 2023, reflecting the impact of ceasing the parallel-import vehicle business[18]. - The company experienced a cash inflow from discontinued operations of $3,698,138, down from $7,257,146 in 2023[33]. Continuing Operations - Total revenues for the continuing operations in logistics and warehousing amounted to $455,805 in 2024, following the acquisition of Edward Transit Express Group[7]. - The Company reported a gross profit of $178,512 for its continuing operations in 2024, with a cost of revenues of $277,293[7]. - General and administrative expenses for continuing operations increased by 66.3% to $3.6 million in 2024, up from $2.2 million in 2023[8]. - Interest income for continuing operations surged by 3,124.7% to $320,472 in 2024, compared to $9,938 in 2023[10]. - The Company incurred a total net loss of $5.2 million for the year ended December 31, 2024, compared to a net income of $0.1 million in 2023[18]. - The company reported a loss from continuing operations of $3,232,194 in 2024, compared to a loss of $1,711,885 in 2023[27]. Financial Performance - Total revenue for 2024 was $455,805, compared to no revenue reported in 2023[27]. - Gross profit for 2024 was $178,512, with a cost of revenue of $277,293[27]. - Operating expenses increased significantly to $3,919,058 in 2024 from $2,190,513 in 2023, representing a 79% increase[27]. - The net loss for 2024 was $5,188,852, compared to a net income of $133,870 in 2023[27]. - Total assets increased to $15,379,454 in 2024 from $10,059,265 in 2023, marking a 53% growth[25]. - Total liabilities decreased to $2,761,782 in 2024 from $3,154,637 in 2023, a reduction of approximately 12%[25]. - Stockholders' equity rose to $12,617,672 in 2024, up from $6,904,628 in 2023, indicating an increase of 83%[25]. Cash Flow and Financing - Cash used in operating activities from continuing operations was $3,455,918, an increase from $1,646,921 in the previous year[33]. - The company generated net cash provided by operating activities of $242,220, down from $5,610,225 in 2023[33]. - Cash used in investing activities amounted to $6,130,932, significantly higher than $672,500 in the prior year[33]. - The company raised $7,309,120 from a follow-on public offering in May 2024 and $1,093,556 in July 2024[33]. - Net cash provided by financing activities was $7,106,676, compared to a net cash used of $4,563,108 in 2023[33]. - The ending cash balance for continuing operations increased to $1,650,962 from $432,998 in the previous year[33]. - The company paid $2,000 in income taxes, a decrease from $74,533 in 2023[33]. - The fair value of common stock issued for acquisition was $1,700,000, with no comparable figure in the previous year[33]. Acquisitions and Growth - The Company acquired TWEW for $1.0 million in December 2024, aiming to expand its logistics services in the western region[11]. - The company completed several stock issuances, including a follow-on public offering that raised approximately $8,402,656 in total[30]. - The weighted average shares outstanding increased to 1,955,214 in 2024 from 1,073,945 in 2023[27]. - The Company plans to seek additional equity financing if necessary to sustain growth and meet future liquidity requirements[22].

Core Viewpoint - Cheetah Net Supply Chain Service Inc. faced significant challenges in 2024 due to deteriorating market conditions in China, leading to a strategic shift from parallel-import vehicle sales to logistics and warehousing services, resulting in a total net loss of $5.2 million for the year [4][19]. Financial Performance - The company's total revenues from continuing operations were $455,805 for the year ended December 31, 2024, with a gross profit of $178,512 [9][28]. - Net losses from continuing operations were $3.2 million, compared to $1.7 million in 2023 [14][28]. - The company reported a gross loss of $24,820 from discontinued operations, a significant decline from a gross profit of $4.2 million in 2023 [16]. Discontinued Operations - Sales from the discontinued parallel-import vehicle business plummeted by 95.7% to $1.6 million in 2024 from $38.3 million in 2023 [15]. - The cost of revenues from discontinued operations decreased by 95.0% to $1.7 million in 2024, aligning with the sales downturn [15]. - The net loss from discontinued operations was approximately $2.0 million in 2024, compared to a net income of $1.8 million in 2023 [19]. Strategic Initiatives - The company acquired Edward Transit Express Group, Inc. for $1.5 million in February 2024 and TWEW for $1.0 million in December 2024 to expand its logistics and warehousing capabilities [6][9]. - Cheetah relocated its headquarters to Irvine, CA, to enhance its focus on logistics and warehousing, benefiting from proximity to major ports [6][9]. Shareholder Actions - The company completed a public offering of 404,979 shares at $3.68 per share in July 2024, generating net proceeds of $1.1 million [9]. - A reverse stock split at a ratio of 1-for-16 was approved and took effect on October 21, 2024, impacting the trading of its Class A common stock [9][26]. Liquidity and Cash Flow - As of December 31, 2024, the company had current assets of $11.0 million, including cash and cash equivalents of $1.7 million [20]. - The company reported cash flow of $0.2 million from operating activities, $6.1 million used in investing activities, and $7.1 million provided by financing activities during the year [21][33].

Financial Performance - The company reported a net loss of $5.2 million for the year ended December 31, 2024, primarily due to the wind-down of the discontinued parallel-import vehicle operations and increased operating expenses associated with the transition to logistics and warehousing services [195]. - Total revenue from continuing operations was $455,805 in 2024, reflecting the company's shift to logistics and warehousing services after discontinuing the parallel-import vehicle business [194]. - The company experienced a 95.7% drop in revenue from parallel-import vehicle sales, decreasing from $38.3 million in 2023 to $1.6 million in 2024 [183]. - The company recorded a loss from discontinued operations of approximately $2.0 million in 2024, compared to income of $1.8 million in 2023 [196]. - The net loss from continuing operations was $3.2 million in 2024, compared to a net loss of $1.7 million in 2023 [207]. - Revenue from discontinued operations fell to $1.6 million in 2024, a decrease of 95.7% from $38.3 million in 2023, due to the exit from the parallel-import vehicle business [210]. - Total cost of revenue for discontinued operations decreased by 95.0% to $1.7 million in 2024, down from $34.1 million in 2023 [211]. - Gross loss for discontinued operations was $24,820 in 2024, compared to a gross profit of $4.2 million in 2023, reflecting a decline of 100.6% [212]. - Total selling, general, and administrative expenses for discontinued operations increased by 175.8% to $1.8 million in 2024, driven by credit losses and forfeited vehicle deposits [213]. - Net cash provided by operating activities from discontinued operations was $3.7 million in 2024, down from $7.2 million in 2023 [225]. Operational Changes - The company relocated its headquarters from Charlotte, NC, to Irvine, CA, to enhance focus on logistics and warehousing operations [186]. - The company acquired TWEW in December 2024 to further expand its logistics services [186]. - The company is actively integrating TWEW's operations to strengthen its position in the logistics sector [187]. - The Company depleted its inventory of vehicles by the first quarter of 2024, with the entire inventory balance of $1,515,270 as of December 31, 2023, reclassified to discontinued operations [263]. - As of December 31, 2023, the Company operated as a single reportable segment focused on parallel-import vehicles, but transitioned back to a single segment focused on logistics and warehousing services by December 31, 2024 [257]. Expenses and Income - General and administrative expenses increased by $1.4 million (66.3%) to $3.6 million in 2024, driven by higher personnel-related expenses and costs associated with the acquisitions [200]. - Interest income from continuing operations increased to $320,472 in 2024, up from $9,938 in 2023, representing a growth of 3,124.7% [204]. - Total interest expenses decreased by 14.2% to $35,951 in 2024, down from $41,883 in 2023, primarily due to reduced credit card interest [205]. - General and administrative expenses for continuing operations were $3,641,713 in 2024, compared to $2,190,513 in 2023 [243]. - For the year ended December 31, 2024, total selling expenses for the discontinued parallel-import vehicle business were $117,819, down from $668,172 in 2023 [242]. Acquisitions and Intangible Assets - The Company recorded intangible assets from the acquisitions of Edward and TWEW during the year ended December 31, 2024 [264]. - There was no impairment recognized for intangible assets for the year ended December 31, 2024 [265]. - Goodwill is tested for impairment at the reporting unit level, with no impairment recorded as of December 31, 2024 [272]. Future Plans and Reporting - The Company intends to adopt ASU 2023-07 regarding segment reporting in its Annual Report for the year ending December 31, 2025 [276]. - The Company plans to adopt ASU 2023-09 concerning income tax disclosures in its Annual Report for the year ending December 31, 2025 [277]. Fair Value and Impairment - The Company applies a three-level fair value hierarchy for measuring fair value, with Level 1 being quoted prices for identical assets in active markets [269]. - The Company reviews its intangible assets for impairment whenever events indicate that the carrying amount may not be recoverable [264]. - The Company recognizes lease liabilities and right-of-use assets in accordance with FASB ASC No. 842 [271]. - The fair value of the Company's financial instruments approximated the fair value of the respective assets and liabilities as of December 31, 2024 and 2023 [266]. - The Company did not record any impairment for long-lived assets for the years ended December 31, 2024 and 2023 [275].

Acquisition Announcement - Cheetah Net Supply Chain Service Inc. has executed definitive agreements for the acquisition of TW & EW Services Inc., a California-based labor and logistics service provider, expected to close on or about December 4, 2024 [1][2] - The total cost of the acquisition includes a cash payment of $200,000 and share consideration valued at $800,000, with a per-share price of $1.704 [2] Strategic Implications - The acquisition is anticipated to strengthen Cheetah's position in the logistics sector by integrating TW & EW's expertise in general labor and logistics support services, which will streamline operations and create additional value for stakeholders [3] - Cheetah aims to capitalize on additional service opportunities and enhance service delivery to both current and future customers following the integration of TW & EW [3] Company Background - Cheetah Net is a provider of logistics and warehousing services, originally focused on the sale of parallel-import vehicles to the PRC market, and has transitioned towards broader logistics services in response to market challenges [4] - Established in 2016, Cheetah expanded its footprint in the logistics and warehousing industry in February 2024, demonstrating a commitment to adapting to evolving market conditions [4]