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]

Revenue Performance - For Q3 2024, Cheetah generated $61,208 in revenue from logistics and warehousing, a decrease of $9.9 million or 99.4% compared to $10.0 million in Q3 2023[8] - For the nine months ended September 30, 2024, revenues were $1.9 million, down $30.6 million or 94.3% from $32.5 million in the same period of 2023[13] - Total revenues for the three months ended September 30, 2024, were $61,208, a significant decrease from $10,038,246 in the same period of 2023[24] Profitability - Gross profit for Q3 2024 decreased by approximately $1.1 million or 97.4%, with a gross margin increase from 11.6% in Q3 2023 to 48.8% in Q3 2024[9] - The company reported a gross profit of $87,348 for the nine months ended September 30, 2024, a decrease of approximately $3.5 million or 97.5% from $8.9 million in the same period of 2023[14] - Gross profit for the nine months ended September 30, 2024, was $87,348, compared to $3,562,786 for the same period in 2023, indicating a decline in profitability[24] Net Income and Loss - The net loss for Q3 2024 was $1.8 million, compared to a net income of $0.1 million in Q3 2023[12] - The net loss for the nine months ended September 30, 2024, was $3,037,102, compared to a net income of $170,715 for the same period in 2023[27] Expenses - General and administrative expenses rose to $1.1 million in Q3 2024, an increase of $0.6 million or 108.0% from $0.5 million in Q3 2023[10] - Operating expenses for the nine months ended September 30, 2024, totaled $4,210,029, compared to $2,279,743 for the same period in 2023[24] Cash and Liquidity - As of September 30, 2024, Cheetah had cash and cash equivalents of $5.3 million and working capital of approximately $11.6 million[20] - Cash and cash equivalents rose to $5,287,376 as of September 30, 2024, compared to $432,998 at the end of 2023[26] - The company experienced a net increase in cash of $4,854,378 for the nine months ended September 30, 2024[27] - Management believes that current measures will provide sufficient liquidity to meet future capital requirements for at least 12 months from the issuance date of its consolidated financial statements[22] Equity and Financing - The allowance for credit loss of accounts receivable was $1.1 million for the nine months ended September 30, 2024, compared to nil for the same period in 2023[16] - The company plans to seek additional equity financing if necessary to sustain continued growth and implement its business plan[22] - Total stockholders' equity increased to $13,953,743 as of September 30, 2024, from $6,904,628 at the end of 2023[26] - Total current assets increased to $12,418,881 as of September 30, 2024, from $9,820,537 as of December 31, 2023[26]

Core Insights - Cheetah Net Supply Chain Service Inc. is undergoing a significant business transformation from a parallel-import vehicle business to a logistics and warehousing model, driven by the downturn in the Chinese economy and the need to capitalize on U.S.-China trade flows [7] Company Updates - The company relocated its headquarters from Charlotte, NC to Irvine, CA to better align with its new business model and access the Southern California market [2] - A public offering of 404,979 shares at $3.68 per share was completed, generating net proceeds of $1.1 million for working capital and corporate purposes [3] - The board approved an Amended and Restated 2024 Stock Incentive Plan, leading to stock awards totaling 150,000 shares and share-based compensation expenses of $261,666 for Q3 2024 [4] - A reverse stock split at a ratio of 1-for-16 was approved and took effect on October 21, 2024, with trading on a post-split basis starting October 24, 2024 [5][6] Financial Performance - Q3 2024 revenue was $61,208, a decrease of $9.9 million or 99.4% compared to $10.0 million in Q3 2023, primarily due to the decline in the parallel-import vehicle business [8] - Gross profit for Q3 2024 decreased by approximately $1.1 million or 97.4%, but gross margin improved from 11.6% in Q3 2023 to 48.8% in Q3 2024 [9] - General and administrative expenses increased by $0.6 million or 108.0% to $1.1 million in Q3 2024, driven by personnel-related and rental expenses for the new logistics segment [10] - A credit loss allowance of $1.1 million was recorded for accounts receivable, reflecting overdue balances from the parallel-import vehicle business [11] - The net loss for Q3 2024 was $1.8 million, compared to a net income of $0.1 million in Q3 2023 [12] Nine-Month Financial Results - Revenues for the nine months ended September 30, 2024, were $1.9 million, down 94.3% from $32.5 million in the same period in 2023, largely due to the decline in the parallel-import vehicle business [13] - Gross profit for the nine months decreased by approximately $3.5 million or 97.5%, with a gross margin of 11.0% compared to 4.7% in the prior year [14] - General and administrative expenses rose by $1.0 million or 63.2% to $2.7 million, attributed to increased personnel and operational costs [15] - The net loss for the nine months was $3.0 million, compared to a net income of $0.2 million in the same period of the previous year [19] Liquidity and Cash Flow - As of September 30, 2024, the company had cash and cash equivalents of $5.3 million and working capital of approximately $11.6 million [20] - Cash provided by operating activities was $0.6 million for the nine months ended September 30, 2024, with total stockholders' equity at $14.0 million [21] - The company is focused on improving liquidity through operational cash generation and may seek additional equity financing if necessary [22]

Financial Performance - Total revenues for the three months ended September 30, 2024, were $61,208, a significant decrease from $10,038,246 for the same period in 2023, representing a decline of approximately 99.4%[8] - Gross profit for the three months ended September 30, 2024, was $29,869, compared to $1,167,360 for the same period in 2023, indicating a decrease of about 97.4%[8] - The company reported a net loss of $1,815,292 for the three months ended September 30, 2024, compared to a net income of $122,903 for the same period in 2023, reflecting a negative swing of approximately 1,572%[8] - Operating expenses for the three months ended September 30, 2024, totaled $2,478,771, compared to $714,150 for the same period in 2023, reflecting an increase of approximately 248.5%[8] - For the nine months ended September 30, 2024, the net loss was $3,037,102 compared to a net income of $170,715 for the same period in 2023[14] - Revenues for the nine months ended September 30, 2024, were $1.9 million, compared to $32.5 million for the same period in 2023, representing a decrease of $30.6 million, or 94.3%[174] - The company reported a net loss of $3.0 million for the nine months ended September 30, 2024, compared to a net income of $0.2 million for the same period in 2023[197] Assets and Liabilities - Total current assets increased to $12,418,881 as of September 30, 2024, up from $9,820,537 as of December 31, 2023, marking an increase of about 26.3%[6] - Total liabilities decreased to $2,874,412 as of September 30, 2024, down from $3,154,637 as of December 31, 2023, representing a reduction of approximately 8.8%[6] - The company’s total stockholders' equity increased to $13,953,743 as of September 30, 2024, compared to $6,904,628 as of December 31, 2023, indicating an increase of about 102.5%[6] - The company had cash and cash equivalents of $5,287,376 as of September 30, 2024, a substantial increase from $432,998 as of December 31, 2023[6] - Accounts receivable as of September 30, 2024, totaled $3,291,450, down from $6,494,695 as of December 31, 2023, reflecting a decrease in outstanding balances[66] - As of September 30, 2024, total loans receivable amounted to $3,058,295, a significant increase from $672,500 on December 31, 2023, reflecting a growth of approximately 354%[70] Revenue Sources - Revenue from the U.S. domestic market for parallel-import vehicles was $1,244,615 for the three months ended September 30, 2023, while there was no revenue reported for the same period in 2024[50] - The overseas market generated $8,793,631 in revenue for the three months ended September 30, 2023, with $1,430,951 for the nine months ended September 30, 2024, indicating a decrease in performance[50] - The logistics and warehousing segment reported $36,860 in revenue for the three months ended September 30, 2024, compared to no revenue in the same period of 2023[51] - The company generated revenue of $231,605 from logistics and warehousing services for the nine months ended September 30, 2024, following the acquisition of Edward in February 2024[185] Expenses and Costs - General and administrative expenses increased by $572,365, or 108.0%, to $1.1 million for the three months ended September 30, 2024, primarily due to increases in personnel-related and rental expenses[164] - Selling expenses decreased to approximately $117.8 million for the nine months ended September 30, 2024, from $603.2 million for the same period in 2023, a reduction of $485.4 million, or 80.5%[187] - The total cost of revenues for the three months ended September 30, 2024, was $31,339, representing a significant decrease compared to the previous year[164] - Total cost of revenue from parallel-import vehicles sold decreased by $27.3 million, or 94.3%, to $1.7 million for the nine months ended September 30, 2024, from $28.9 million for the same period in 2023[180] Shareholder Equity and Stock - The company raised $8,402,676 from a follow-on public offering, contributing to a net increase in cash of $4,854,378 for the period[14] - The company approved the grant of 45,938 shares of Class A common stock and 31,250 shares of Class B common stock to the CEO, which vested immediately[107] - As of September 30, 2024, the Company had 1,960,218 shares of Class A common stock and 546,875 shares of Class B common stock issued and outstanding[131] Credit and Loans - The company incurred share-based compensation expenses of $261,666 during the nine months ended September 30, 2024[14] - The company provided an unsecured short-term loan of $500,000 on December 11, 2023, with an interest rate increase from 12.0% to 18.0% upon maturity extension[71] - The company extended a short-term loan of $1,500,000 to Hongkong Sanyou Petroleum Co. Limited under the same terms as a previous loan of $1,000,000[72] Tax and Regulatory - The effective income tax rate for the three months ended September 30, 2024, was 23.6%, compared to 26.4% for the same period in 2023[114] - Total deferred tax assets as of September 30, 2024, were $1,548,590, significantly increased from $47,905 as of December 31, 2023[115] - Income tax benefits were $0.6 million for the three months ended September 30, 2024, compared with an income tax provision of approximately $44,217 for the same period in 2023[173] Market Conditions - The ongoing military conflicts and inflation may adversely affect the company's liquidity, business, financial condition, and results of operations[160] - The company is experiencing changes in consumer demand in the Chinese market towards fuel-efficient vehicles and EVs, which may negatively impact vehicle sales volumes[160] Acquisitions - The company acquired Edward Transit Express Group Inc. in February 2024 to expand logistics and warehousing operations and relocated its headquarters to Irvine, CA, in July 2024[147] - The acquisition of Edward was completed on February 2, 2024, for a total purchase price of $1,500,000, which included a cash payment of $300,000 and the issuance of shares valued at $9 million[128]

Revenue Performance - Revenue for Q2 2024 was $0.3 million, a significant decline of 97.5% compared to $12.2 million in Q2 2023[4] - Total revenue for the first half of 2024 was $1.8 million, a decrease of 91.9% from $22.4 million in the same period last year[6] - The company sold only one vehicle in Q2 2024, down from 93 vehicles in the same period last year, resulting in vehicle sales revenue of $0.2 million compared to $12.2 million in Q2 2023[2] - Logistics and warehousing services generated approximately $0.1 million in revenue during the first half of 2024, representing about 9.5% of total revenues[7] Cost and Expenses - The cost of revenue from parallel-import vehicles sold decreased by approximately $10.8 million, or 98.0%, from $11.0 million in Q2 2023 to $0.2 million in Q2 2024[4] - Selling expenses decreased significantly to approximately $20,000 in Q2 2024, representing 6.6% of total revenues, down from $141,340 in Q2 2023[5] Net Income and Loss - The company reported a net loss of $0.6 million in Q2 2024, compared to a net income of $0.2 million in Q2 2023[5] - For the six months ended June 30, 2024, Cheetah Net Supply Chain Service Inc. reported a net loss of $1,221,810 compared to a net income of $47,812 for the same period in 2023[13] Cash Flow and Financial Position - As of June 30, 2024, the company had cash of $6.3 million and working capital of approximately $12.4 million[8] - Net cash provided by operating activities for the six months ended June 30, 2024, was $827,980, a significant decrease from $4,145,363 in the prior year[13] - The company experienced a net cash outflow of $912,617 in investing activities during the six months ended June 30, 2024[13] - Cheetah Net Supply Chain Service Inc. generated $5,944,540 in net cash from financing activities, a turnaround from a net cash outflow of $3,611,618 in the same period last year[13] - The net increase in cash for the six months ended June 30, 2024, was $5,859,903, compared to an increase of $533,745 in the prior year[13] - Cash at the beginning of the period was $432,998, which increased to $6,292,901 by the end of the period[13] - The cash balance at the end of the period for June 30, 2024, was $6,292,901, significantly higher than $592,126 at the end of June 30, 2023[13] Strategic Plans - The company plans to move its headquarters from Charlotte, NC to Irvine, CA to enhance its logistics and warehouse operations[3] - The company aims to become an integrated provider of international trade services and financing for small- and medium-sized traders, moving beyond the parallel-import vehicle business[2]

Core Viewpoint - Cheetah Net Supply Chain Service Inc. is facing significant challenges in its parallel-import vehicle business due to adverse market conditions in the PRC, leading to a substantial decline in revenue and a strategic shift towards logistics and warehousing services [2][3]. Financial Performance - For the second quarter of 2024, total revenues were approximately $0.3 million, a drastic decrease from $12.2 million in the same quarter of 2023, primarily due to a 98.4% drop in revenue from parallel-import vehicles [4][9]. - The company sold only one vehicle in Q2 2024 compared to 93 vehicles in Q2 2023, resulting in vehicle sales revenue of $0.2 million versus $12.2 million in the prior year [2][4]. - The net loss for Q2 2024 was $0.6 million, contrasting with a net income of $0.2 million in Q2 2023 [8][12]. - For the first half of 2024, revenues totaled $1.8 million, down from $22.4 million in the same period last year, with only 14 vehicles sold compared to 175 in the previous year [9][10]. Cost Structure - The total cost of revenue from parallel-import vehicles sold decreased by approximately $10.8 million, or 98.0%, from $11.0 million in Q2 2023 to $0.2 million in Q2 2024 [5][10]. - The cost of revenue as a percentage of vehicle revenue was 107.8% in Q2 2024, indicating a loss on vehicle sales [5][10]. New Business Direction - The company is transitioning from the parallel-import vehicle business to become an integrated provider of international trade services and financing for small- and medium-sized traders, generating over $70,000 in warehousing and logistics revenue from non-vehicle-related wholesalers in Q2 2024 [2][3]. - The planned headquarters move from Charlotte, NC to Irvine, CA aims to enhance logistics operations and access to the Southern California market [2][3]. Liquidity and Cash Flow - As of June 30, 2024, the company reported cash of $6.3 million and working capital of approximately $12.4 million [13]. - The company is focused on improving liquidity through operational cash generation, debt financing, and potential equity financing if necessary [14].

Financial Performance - Total revenues for the three months ended June 30, 2024, were $293,860, a significant decrease from $12,223,026 in the same period of 2023[7] - Gross profit for the six months ended June 30, 2024, was $57,479, down from $2,395,426 in the same period of 2023[7] - The net loss for the three months ended June 30, 2024, was $(612,880), compared to a net income of $155,745 for the same period in 2023[7] - The net loss for the six months ended June 30, 2024, was $1,221,810, compared to a net income of $47,812 for the same period in 2023[13] - Total revenue for the three months ended June 30, 2024, was $293,860, a decrease of 97.6% compared to $12,223,026 for the same period in 2023[9] - Total revenue for the six months ended June 30, 2024, was $1,801,645, a decrease of 92.0% compared to $22,437,468 for the same period in 2023[9] - The company reported a loss from operations of $(852,348) for the three months ended June 30, 2024, compared to a profit of $545,629 in the same period of 2023[7] - Operating expenses for the six months ended June 30, 2024, totaled $1,731,258, compared to $1,565,593 for the same period in 2023[7] Assets and Liabilities - Total current assets increased to $13,621,717 as of June 30, 2024, from $9,820,537 as of December 31, 2023[5] - Total assets rose to $16,275,899 as of June 30, 2024, compared to $10,059,265 as of December 31, 2023[5] - Current liabilities decreased to $1,240,967 as of June 30, 2024, from $2,358,791 as of December 31, 2023[5] - Total liabilities decreased to $2,462,086 as of June 30, 2024, from $3,154,637 as of December 31, 2023[5] - Stockholders' equity increased to $13,813,813 as of June 30, 2024, from $6,904,628 as of December 31, 2023[5] Cash Flow - Cash provided by operating activities for the six months ended June 30, 2024, was $827,980, significantly lower than $4,145,363 for the same period in 2023[13] - Net cash provided by operating activities was $827,980, a significant decrease from $4,145,363 in the prior year[13] - Net cash used in investing activities was approximately $0.9 million for the six months ended June 30, 2024, including $0.2 million for the Edward acquisition[165] - Net cash provided by financing activities was $5,944,540 for the six months ended June 30, 2024, compared to $(3,611,618) for the same period in 2023[168] Revenue Segments - Revenue from the parallel-import vehicle dealership is recognized at the point of vehicle delivery, with no right of return or sales incentives provided to dealers[41] - In the logistics and warehousing services segment, revenue is recognized based on the actual number of days goods are stored, with no provisions for sales return allowances[42] - For the six months ended June 30, 2024, the company generated approximately $0.2 million in revenues from logistics and warehousing services, representing about 31.8% of total revenues for the period[118] - Revenue from parallel-import vehicles decreased by $20.8 million, or 92.7%, from approximately $22.4 million for the six months ended June 30, 2023, to $1.6 million for the same period in 2024[141] Acquisitions and Investments - The company reported an acquisition of business for $220,117 during the six months ended June 30, 2024[13] - The company finalized the acquisition of Edward for a total purchase price of $1.5 million, consisting of $0.3 million in cash and $1.2 million in stock[71] - The company acquired Edward Transit Express Group Inc. for a total consideration of $1,500,000 in cash and stock, expanding its logistics capabilities[16] Operational Changes - The company dissolved two wholly owned subsidiaries on May 23, 2024, as part of its restructuring efforts[17] - The company has engaged in parallel-import vehicle dealership and logistics services, with subsidiaries involved in freight forwarding and warehousing[14][19] Tax and Compliance - The Company incurred a total income tax benefit of $(247,275) for the three months ended June 30, 2024, compared to a benefit of $56,997 for the same period in 2023[87] - The effective tax rate for the three months ended June 30, 2024, was 28.5%, compared to 26.8% for the same period in 2023[88] - The Company has not assessed a valuation allowance for deferred tax assets, believing it is more likely than not that all will be realized before expiration[48] Stock and Shares - As of June 30, 2024, there were 24,148,329 shares of Class A common stock and 8,250,000 shares of Class B common stock issued and outstanding[102] - The Company closed its IPO on August 3, 2023, selling 1,250,000 shares of Class A common stock at a price of $4.00 per share, resulting in gross proceeds of $5.0 million[99] - The Company completed a follow-on offering on July 25, 2024, for 6,479,663 shares of Class A common stock at a price of $0.23 per share, with net proceeds intended for working capital and general corporate purposes[110] Economic Environment - The Company experienced a significant decline in the market for new luxury vehicles in the PRC, attributed to weak economic conditions and a shift in consumer demand towards domestically produced electric vehicles[117] - The ongoing economic weakness in the PRC and a shift towards domestically produced EVs have negatively impacted vehicle sales volumes and revenues[128]

Core Viewpoint - Cheetah Net Supply Chain Service Inc. has successfully closed a follow-on offering of 6,479,663 shares of Class A common stock, generating approximately $1.49 million in gross proceeds, which will be utilized for working capital and general corporate purposes [7][4]. Company Overview - Cheetah Net is a provider of logistics and warehouse services, historically known for supplying parallel-import vehicles, particularly luxury brands such as Mercedes, BMW, Porsche, Lexus, and Bentley, sourced from the U.S. market for resale in the PRC market [9]. - The company has shifted its focus to facilitating non-vehicle trade, offering storage services, logistics services, freight forwarding services, and inventory financing services to its clients [9]. Offering Details - The offering was conducted under a registration statement on Form S-1, which was declared effective on July 15, 2024, with a final prospectus filed on July 26, 2024 [8]. - The gross proceeds from the offering amount to approximately $1.49 million before deducting related fees and expenses [7].