Core Insights - Datasea Inc. reported significant revenue growth in the third fiscal quarter of 2025, with revenue reaching $10.4 million, a 653.6% increase from $1.38 million in the same period of fiscal 2024 [1][5] - The company’s total revenue for the first nine months of 2025 was $51.9 million, up 164.8% compared to $19.6 million for the same period in fiscal 2024 [1][5] - The growth was primarily driven by the strong performance of the 5G+AI multimodal digital segment and the acoustic high-tech products [2][5] Financial Highlights - Gross profit for the third fiscal quarter of 2025 was $0.3 million, with a gross margin of 2.9%, an improvement from $0.01 million and 0.7% in the same period of the prior year [5] - The net loss for the third fiscal quarter of 2025 was $1.8 million, significantly improved from a net loss of $4.1 million in the same period of the prior year [5] - The company’s cash balance increased by 378.2% to $0.9 million, while accounts receivable dropped by 93.2% to $0.05 million, indicating improved capital turnover [5] Business Segment Highlights - The 5G+AI multimodal digital segment continues to lead in China, with notable market expansion and long-term customer contracts [4] - The acoustic high-tech segment saw the placement of products in 463 beauty and health stores in Northern China, reflecting growing market acceptance [4] Business Outlook - Datasea reaffirms its full fiscal year 2025 revenue guidance of approximately $90 million, representing a 275% increase over fiscal year 2024 [7] - The company plans to drive profitability by scaling high-margin acoustic high-tech products and expanding into international markets through strategic partnerships and mergers & acquisitions [8]

Part I - Financial Information [Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) Financial statements for March 31, 2025, show total assets at $6.15 million, a shift to $2.83 million in stockholders' equity, and revenues of $51.89 million [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) As of March 31, 2025, total assets increased to $6.15 million, driven by intangible assets, while liabilities decreased, improving stockholders' equity to $2.83 million Consolidated Balance Sheet Highlights (Unaudited) | | March 31, 2025 | June 30, 2024 | | :--- | :--- | :--- | | **Total Assets** | **$6,154,373** | **$3,291,704** | | Total Current Assets | $1,989,796 | $2,647,892 | | Intangible assets, net | $3,805,383 | $546,001 | | **Total Liabilities** | **$3,321,879** | **$3,599,982** | | Total Current Liabilities | $3,131,890 | $3,599,982 | | **Total Stockholders' Equity (Deficit)** | **$2,832,494** | **($308,278)** | [Consolidated Statements of Operations and Comprehensive Loss](index=6&type=section&id=Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Loss) For the nine months ended March 31, 2025, revenues surged to $51.89 million, gross profit increased significantly, and net loss narrowed to $4.88 million Statement of Operations Highlights (Unaudited) | Metric | Nine Months Ended Mar 31, 2025 | Nine Months Ended Mar 31, 2024 | | :--- | :--- | :--- | | **Revenues** | $51,891,475 | $19,612,213 | | **Gross Profit** | $912,223 | $186,841 | | **Loss from Operations** | ($5,038,381) | ($6,754,003) | | **Net Loss to the Company** | ($4,881,265) | ($5,996,815) | | **Basic and Diluted Net Loss per Share** | ($0.24) | ($1.55) | [Consolidated Statements of Changes in Stockholders' Equity](index=8&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Stockholders%27%20Equity) Stockholders' equity increased to $2.84 million for the nine months ended March 31, 2025, primarily due to $5.94 million in equity financing and $1.47 million in stock compensation - The company issued 692,308 shares for equity financing, raising **$1.96 million**, and an additional 1,932,224 shares to related parties for **$3.98 million**[13](index=13&type=chunk) - A total of 554,365 shares were issued for stock compensation expense, valued at approximately **$1.47 million** during the nine-month period[13](index=13&type=chunk) - Shareholders forgave debt totaling **$462,208**, which was recorded as an increase in additional paid-in capital[13](index=13&type=chunk)[17](index=17&type=chunk) [Consolidated Statements of Cash Flows](index=10&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) For the nine months ended March 31, 2025, operating cash outflow improved to $1.79 million, investing activities used $4.04 million, and financing provided $6.55 million Cash Flow Summary (Unaudited) | Cash Flow Activity | Nine Months Ended Mar 31, 2025 | Nine Months Ended Mar 31, 2024 | | :--- | :--- | :--- | | **Net Cash Used in Operating Activities** | ($1,785,456) | ($5,954,352) | | **Net Cash Used in Investing Activities** | ($4,043,776) | ($108,911) | | **Net Cash Provided by Financing Activities** | $6,553,450 | $6,209,131 | | **Net Increase in Cash** | $685,475 | $32,801 | | **Cash, End of Period** | $866,737 | $52,529 | - The company received net proceeds of **$5.94 million** from the issuance of common stock[16](index=16&type=chunk) - Cash used for the acquisition of intangible assets was **$4.04 million**[16](index=16&type=chunk) [Notes to Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Notes detail the company's VIE structure, 'Going Concern' warning due to losses, revenue sources, and significant transactions including intangible asset purchases - The company operates in the PRC primarily through a Variable Interest Entity (VIE), Shuhai Beijing, controlled via contractual arrangements[19](index=19&type=chunk)[39](index=39&type=chunk) - Substantial doubt exists about the Company's ability to continue as a going concern due to recurring net losses (approx. **$4.88 million**) and negative operating cash flow (approx. **$1.79 million**)[35](index=35&type=chunk) Revenue by Source (Nine Months Ended March 31, 2025) | Revenue Source | Amount | | :--- | :--- | | 5G AI Multimodal communication | $51,503,911 | | Sell of Software | $326,936 | | Acoustic Intelligence Business | $56,908 | | Smart City business | $3,046 | | Other | $674 | | **Total Revenue** | **$51,891,475** | - On January 19, 2024, the company executed a **1-for-15 reverse stock split**, retroactively restating all share amounts[34](index=34&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=39&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes 164.6% revenue growth to 5G+AI business expansion, highlights strategic advancements, and addresses 'going concern' risk with recent financing and improved financial metrics [Overview and Business Summary](index=39&type=section&id=MD%26A_Overview) Datasea, a Nevada holding company operating via a VIE in China, focuses on acoustic high-tech and 5G+AI multimodal digital technologies, achieving $51.9 million revenue growth - Datasea is a Nevada holding company operating in China through a VIE structure, not a Chinese operating company[160](index=160&type=chunk) Financial Highlights (Nine Months Ended March 31, 2025) | Metric | Value | YoY Change | | :--- | :--- | :--- | | Revenue | $51,891,475 | +164.59% | | Gross Profit | $912,223 | +388.23% | | Net Loss | ($4,881,265) | -18.60% | | Cash Balance | $866,737 | +378.17% | | Accounts Receivable | $49,066 | -93.17% | | Net Intangible Assets | $3,805,383 | +596.96% | - The company reiterates confidence in achieving the full-year fiscal 2025 revenue target of **$90 million**[163](index=163&type=chunk) [Results of Operations](index=56&type=section&id=MD%26A_Results_of_Operations) For the three months ended March 31, 2025, revenue increased 648.7% to $10.4 million, and for nine months, revenue grew 164.6% to $51.9 million, with net loss narrowing Comparison of Operations (Three Months Ended March 31) | Metric | 2025 | 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Revenues | $10,353,977 | $1,383,001 | +648.7% | | Gross Profit | $297,790 | $9,871 | +2917.8% | | Net Loss to Company | ($1,782,998) | ($4,141,720) | -57.0% | Comparison of Operations (Nine Months Ended March 31) | Metric | 2025 | 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Revenues | $51,891,475 | $19,612,213 | +164.6% | | Gross Profit | $912,223 | $186,841 | +388.2% | | Net Loss to Company | ($4,881,265) | ($5,996,815) | -18.6% | - The increase in revenue was mainly due to the rapid growth of the **5G AI multimodal digital business** in China, where the company is an industry leader[254](index=254&type=chunk)[291](index=291&type=chunk) - Selling expenses decreased by **80.9%** for the quarter and **27.9%** for the nine-month period, primarily due to reduced advertising and marketing expenses[278](index=278&type=chunk)[305](index=305&type=chunk) [Liquidity and Capital Resources](index=66&type=section&id=MD%26A_Liquidity_and_Capital_Resources) As of March 31, 2025, the company had a $1.14 million working capital deficit, with operations using $1.79 million cash, while financing provided $6.55 million Working Capital Summary | Metric | March 31, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Cash | $866,737 | $181,262 | | Working Capital Deficit | ($1,142,094) | ($952,090) | | Current Ratio | 0.64:1 | 0.74:1 | Cash Flow Summary (Nine Months Ended March 31, 2025) | Activity | Amount | | :--- | :--- | | Net Cash Used in Operating Activities | ($1,785,456) | | Net Cash Used in Investing Activities | ($4,043,776) | | Net Cash Provided by Financing Activities | $6,553,450 | - Net proceeds from the sale of common stock amounted to **$5.94 million** during the nine months ended March 31, 2025[324](index=324&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=72&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company is not required to provide this information as it qualifies as a 'smaller reporting company' - As a "smaller reporting company", Datasea Inc. is not required to provide the information required by this Item[371](index=371&type=chunk) [Controls and Procedures](index=73&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls and procedures were ineffective due to material weaknesses, including inadequate segregation of duties and lack of U.S. GAAP trained personnel - The principal executive and financial officers concluded that the Company's disclosure controls and procedures were **not effective** as of the end of the reporting period[372](index=372&type=chunk) - Material weaknesses identified include inadequate segregation of duties, lack of U.S. GAAP trained personnel, and insufficient written accounting policies[377](index=377&type=chunk) - Management is implementing remediation strategies, including refining internal control processes and enhancing personnel training[374](index=374&type=chunk)[375](index=375&type=chunk)[386](index=386&type=chunk) Part II - Other Information [Legal Proceedings](index=76&type=section&id=Item%201.%20Legal%20Proceedings) The company reports that it is not a party to any pending legal proceedings, and none are known to be contemplated - The company is not a party to any pending legal proceedings and no such proceedings are known to be contemplated[389](index=389&type=chunk) [Risk Factors](index=76&type=section&id=Item%201A.%20Risk%20Factors) As a 'smaller reporting company,' Datasea Inc. is not required to provide the information for this item - As a "smaller reporting company", the company is not required to provide the information for this item[390](index=390&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=76&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This item is not applicable to the company for this reporting period - Not applicable[391](index=391&type=chunk) [Defaults Upon Senior Securities](index=76&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reports that there have been no defaults upon senior securities - None[392](index=392&type=chunk) [Mine Safety Disclosures](index=76&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[393](index=393&type=chunk) [Other Information](index=76&type=section&id=Item%205.%20Other%20Information) No material changes occurred in procedures for security holder board nominations, and no Rule 10b5-1 trading arrangements were adopted or terminated - There have been no material changes to the procedures by which security holders may recommend nominees to the Board of Directors[394](index=394&type=chunk) - During the three months ended December 31, 2024, no director or officer adopted, modified or terminated a "Rule 10b5-1 trading arrangement" or "non-Rule 10b5-1 trading arrangement"[394](index=394&type=chunk) [Exhibits](index=77&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with Form 10-Q, including CEO/CFO certifications and Inline XBRL data files List of Exhibits | Exhibit | Description | | :--- | :--- | | 31.1 | Certification by CEO (Sarbanes Oxley Section 302) | | 31.2 | Certification by CFO (Sarbanes Oxley Section 302) | | 32.1 | Certification by CEO (18 U.S.C. Section 1350) | | 32.2 | Certification by CFO (18 U.S.C. Section 1350) | | 101.INS | Inline XBRL Instance Document | | 101.SCH | Inline XBRL Taxonomy Extension Schema Document | | 101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document | | 101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document | | 101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document | | 101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document | | 104 | Cover Page Interactive Data File (Inline XBRL) |

Core Insights - Datasea Inc. expects to achieve projected annual revenue of $90 million, with third-quarter fiscal year 2025 revenue anticipated to be approximately $51.9 million, reflecting a year-over-year increase of about 164.6% compared to $19.6 million in the same period last year [1][2] Company Overview - Datasea Inc. is a digital technology company based in Nevada, specializing in acoustics high-tech and 5G+AI multimodal digital innovations [4] - The company provides products, services, and solutions for enterprise and retail customers, leveraging advanced R&D technology as the backbone for its offerings [4] - Datasea's 5G multimodal digital segment operates on a cloud platform based on AI, while its acoustics business utilizes cutting-edge technologies to combat viruses and develop applications in medical ultrasonic cosmetology [4] Strategic Focus - The company is strategically positioned to leverage opportunities in both the acoustics high-tech and 5G+AI multimodal digital sectors, aiming to drive long-term shareholder value [3] - Datasea's CEO emphasized the importance of technological innovation and market expansion in driving substantial growth, with a commitment to enhancing cost management and operational efficiencies [2]

昨夜今晨，随着多位美联储官员公开讨论降息事宜，美股三大股指迎来连续第三个交易日的集体上涨。当地时间4月24日，美股大幅收涨，道指上涨486.83 点，涨幅1.23%；纳指上涨457.99点，涨幅2.74%；标普500指数上涨108.91点，涨幅2.03%。 明星科技股普涨，特斯拉、亚马逊、微软涨超3%，谷歌、Meta涨逾2%，苹果涨近2%。半导体板块涨幅居前，美光科技、博通涨逾6%，英特尔、AMD涨 超4%，英伟达涨逾3%。 其中，英伟达市值一夜增加908亿美元（约合人民币6618亿元）。 | 英伟达 | | | | --- | --- | --- | | NVDA US 空 | | | | 106.540 昨收 102.710 量比 0.75 | | 106.430 | | 103.110 | 市值2.60万亿 换 0.93% | | | 103.475 市盈™ 35.63 | 额 230.94亿 | 3.720 3.62% | | 纳指科技ETF -1.90% 含英伟达 12.0% > | | 相关ETF ⑦ | | 0.309 | 0.29% ⊙ 18:07 美东时间 | 盘后 106.739 | | ...

Datasea's Top Line Growth Fueled by the Expansion of its State-of-the-Art 5G+AI Multimodal Digital Segment in ChinaBEIJING, Feb. 14, 2025 /PRNewswire/ -- Datasea Inc. (NASDAQ: DTSS) ("Datasea", the "Company", "we", "us", or "our"), a Nevada−based technology company specializing in 5G+AI multimodal digital solutions and acoustic high−tech innovations, today announced its financial results for its second fiscal quarter ended December 31, 2024. The Company reported revenue of approximately $20.5 million, an in ...

[Part I - Financial Information](index=3&type=section&id=Part%20I%20-%20Financial%20Information) [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) The company's financial statements show significant revenue growth and improved equity, but also a continued net loss and a going concern risk [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets) Total assets grew to $5.90 million and stockholders' equity turned positive, driven by increased intangible assets and reduced liabilities Consolidated Balance Sheet Highlights (Unaudited) | Account | Dec 31, 2024 ($) | June 30, 2024 ($) | | :--- | :--- | :--- | | **Total Current Assets** | 1,595,096 | 2,647,892 | | **Total Noncurrent Assets** | 4,308,437 | 643,812 | | **Total Assets** | **5,903,533** | **3,291,704** | | **Total Current Liabilities** | 2,560,305 | 3,599,982 | | **Total Liabilities** | **2,677,125** | **3,599,982** | | **Total Stockholders' Equity (Deficit)** | **3,226,408** | **(308,278)** | - The significant increase in noncurrent assets is mainly due to the growth of **intangible assets**, which rose from **$546,001 to $4,081,544**[10](index=10&type=chunk) - The company shifted from a **stockholders' deficit of $308,278 to a positive equity of $3,226,408**, largely due to an increase in additional paid-in capital[10](index=10&type=chunk) [Consolidated Statements of Operations and Comprehensive Loss](index=5&type=section&id=Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Loss) Substantial revenue growth for the three and six-month periods led to higher gross profit, though the company remains in a net loss position Three Months Ended December 31, (Unaudited) | Metric | 2024 ($) | 2023 ($) | Change (%) | | :--- | :--- | :--- | :--- | | Revenues | 20,456,404 | 11,348,469 | +80.3% | | Gross Profit | 417,452 | 102,235 | +308.3% | | Loss from Operations | (1,238,352) | (1,788,536) | -30.8% | | Net Loss to the Company | (1,136,278) | (1,833,039) | -38.0% | | Basic and Diluted Net Loss per Share | (0.16) | (0.72) | -77.8% | Six Months Ended December 31, (Unaudited) | Metric | 2024 ($) | 2023 ($) | Change (%) | | :--- | :--- | :--- | :--- | | Revenues | 41,537,498 | 18,229,212 | +127.9% | | Gross Profit | 614,433 | 176,970 | +247.2% | | Loss from Operations | (3,268,902) | (2,646,312) | +23.5% | | Net Loss to the Company | (3,098,267) | (1,855,095) | +67.0% | [Consolidated Statements of Cash Flows](index=9&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Cash from financing activities funded investments in intangible assets and covered operating cash use, resulting in a slight net cash increase Cash Flow Summary for Six Months Ended December 31, (Unaudited) | Cash Flow Activity | 2024 ($) | 2023 ($) | | :--- | :--- | :--- | | Net cash used in operating activities | (1,587,572) | (5,633,283) | | Net cash used in investing activities | (3,957,527) | (71,816) | | Net cash provided by financing activities | 5,659,128 | 6,241,781 | | **Net increase in cash** | **86,839** | **417,988** | - The primary use of cash in investing activities was the **acquisition of intangible assets, totaling $3.95 million**[17](index=17&type=chunk) - Financing activities were a key source of cash, with **$5.94 million in net proceeds from the issuance of common stock**[17](index=17&type=chunk) [Notes to Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Notes detail the company's VIE structure, going concern uncertainty, revenue sources, and significant financing and acquisition transactions - The company operates primarily through a **Variable Interest Entity (VIE) structure** in the People's Republic of China (PRC)[20](index=20&type=chunk) - A **1-for-15 reverse stock split** was effective on January 19, 2024, with all share amounts retroactively restated[35](index=35&type=chunk) - There is **substantial doubt about the Company's ability to continue as a going concern** due to recurring losses and an accumulated deficit of approximately **$42.54 million**[36](index=36&type=chunk) Revenue Breakdown for Six Months Ended Dec 31, 2024 | Revenue Source | Amount ($) | | :--- | :--- | | 5G AI Multimodal communication | 41,161,572 | | Acoustic Intelligence Business | 45,768 | | Software licensing | 326,936 | | Smart City business | 3,046 | | Other | 176 | | **Total revenue** | **41,537,498** | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=28&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses strong revenue growth from its 5G+AI business, ongoing net losses, going concern risks, and material weaknesses in internal controls [Overview](index=28&type=section&id=Overview) The company operates via a VIE structure in China, focusing on acoustic tech and a rapidly growing 5G+AI digital business - Datasea is a Nevada-based holding company with business activities in China conducted through a **VIE structure**[158](index=158&type=chunk) - For the six-month period ending Dec 31, 2024, **revenue grew 127.86% to $41.54 million**, driven by the 5G+AI multimodal digital business[160](index=160&type=chunk) - The company is focusing on five key application areas for its acoustic technology: **acoustic industry, agriculture, healthcare, health, and IoT**[165](index=165&type=chunk) - The **5G+AI multimodal digital platform is the main revenue source**, serving sectors like banking, insurance, and gaming[184](index=184&type=chunk)[201](index=201&type=chunk) [Results of Operations](index=43&type=section&id=Results%20of%20Operations) Revenue grew significantly for both three and six-month periods, but widening net loss for the six-month period reflects rising operating expenses Three-Month Operational Comparison (Ended Dec 31) | Metric | 2024 ($) | 2023 ($) | Change (%) | | :--- | :--- | :--- | :--- | | Revenues | 20,456,404 | 11,348,469 | +80.3% | | Gross Profit | 417,452 | 102,235 | +308.3% | | Gross Margin | 2.0% | 0.9% | +1.1 p.p. | | Net Loss to Company | (1,136,278) | (1,833,039) | -38.0% | Six-Month Operational Comparison (Ended Dec 31) | Metric | 2024 ($) | 2023 ($) | Change (%) | | :--- | :--- | :--- | :--- | | Revenues | 41,537,498 | 18,229,212 | +127.9% | | Gross Profit | 614,433 | 176,970 | +247.2% | | Gross Margin | 1.5% | 1.0% | +0.5 p.p. | | Net Loss from Cont. Ops | (3,098,267) | (2,688,641) | +15.2% | - The increase in G&A expenses for the six-month period was primarily due to a **$514,297 increase in stock compensation expense** and a **$369,845 increase in professional service fees**[317](index=317&type=chunk) [Liquidity and Capital Resources](index=53&type=section&id=Liquidity%20and%20Capital%20Resources) The company faces a working capital deficit and relies on equity financing to fund operations and investments, highlighting going concern risks - As of December 31, 2024, the company had a **working capital deficit of $965,209** and a current ratio of 0.62:1[325](index=325&type=chunk) Six-Month Cash Flow Summary (Ended Dec 31) | Activity | 2024 ($) | 2023 ($) | | :--- | :--- | :--- | | Net cash used in operating activities | (1,587,572) | (5,633,283) | | Net cash used in investing activities | (3,957,527) | (71,816) | | Net cash provided by financing activities | 5,659,128 | 6,241,781 | - The company's **accounts receivable balance decreased by 70.64%** to $210,980, indicating improved cash collection[343](index=343&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=59&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company is exempt from this disclosure requirement as a "smaller reporting company" - The company is exempt from this disclosure requirement due to its status as a **"smaller reporting company"**[376](index=376&type=chunk) [Controls and Procedures](index=59&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls were ineffective due to material weaknesses in internal controls over financial reporting - The CEO and CFO concluded that the company's **disclosure controls and procedures were not effective** as of the end of the reporting period[377](index=377&type=chunk) - Identified material weaknesses include **inadequate segregation of duties**, a **lack of personnel with U.S. GAAP expertise**, and **insufficient written accounting policies**[378](index=378&type=chunk) - Management is taking steps to **enhance internal controls**, including improving cost control and project management[385](index=385&type=chunk)[386](index=386&type=chunk)[387](index=387&type=chunk)[388](index=388&type=chunk)[389](index=389&type=chunk) [Part II - Other Information](index=62&type=section&id=Part%20II%20-%20Other%20Information) [Legal Proceedings](index=62&type=section&id=Item%201.%20Legal%20Proceedings) The company is not currently a party to any pending legal proceedings - The company is **not currently involved in any legal proceedings**[393](index=393&type=chunk) [Risk Factors](index=62&type=section&id=Item%201A.%20Risk%20Factors) The company is exempt from this disclosure requirement as a "smaller reporting company" - The company is exempt from this disclosure requirement due to its status as a **"smaller reporting company"**[394](index=394&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=62&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company details two significant equity financing events in July and September 2024 to fund R&D and corporate purposes - On July 2, 2024, a registered direct offering raised gross proceeds of approximately **$2.25 million**[396](index=396&type=chunk) - In September 2024, the company issued **1,932,224 shares to three non-U.S. investors at $2.06 per share**, including to the CEO and a director[395](index=395&type=chunk) [Defaults Upon Senior Securities](index=63&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reports no defaults upon senior securities - **None**[401](index=401&type=chunk) [Mine Safety Disclosures](index=63&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - **Not applicable**[402](index=402&type=chunk) [Other Information](index=63&type=section&id=Item%205.%20Other%20Information) No director or officer adopted, modified, or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement during the quarter - No director or officer adopted, modified, or terminated a **Rule 10b5-1 or non-Rule 10b5-1 trading arrangement** during the quarter[404](index=404&type=chunk) [Exhibits](index=64&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including Sarbanes-Oxley certifications and XBRL data files - Key exhibits include **CEO and CFO certifications** (Exhibits 31.1, 31.2, 32.1, 32.2) and **Inline XBRL documents** (Exhibit 101 series)[405](index=405&type=chunk)

Core Insights - Datasea Inc. reported an expected revenue of approximately $20.5 million for Q2 FY2025, marking an 81% increase from $11.3 million in the same period last year [1] - The gross profit for the same quarter is projected to be $0.41 million, reflecting a significant 310% increase from $0.1 million year-over-year [1] - The growth in revenue and gross profit is attributed to the expansion of the company's 5G AI multimodal digital business and increased market penetration in China [1][2] Company Overview - Datasea Inc. specializes in acoustic high-tech and 5G-AI multimodal digitalization, providing products, services, and solutions for enterprise and retail customers [3] - The company utilizes advanced R&D technology as the backbone for its products, operating its 5G multimodal digital segment on a cloud platform based on AI [3] - Datasea employs cutting-edge technologies in its acoustics business to combat viruses and is also developing applications in medical ultrasonic cosmetology [3] Strategic Initiatives - The company has established a wholly-owned subsidiary, Datasea Acoustics LLC, in Delaware to facilitate its entry into the U.S. market as part of its global expansion strategy [3] - Datasea's CEO emphasized the importance of their focus on 5G + AI multimodal solutions, which has led to increased adoption of their high-margin technical products and services [2] - The strategic placement of acoustic high-tech products in over 400 high-quality physical retail stores across China is expected to enhance financial results in the upcoming quarters [2]

With the New Agreements, Products to be Placed in a Total of 463 New Stores with Total Projected Sales of 260,000 Units and Revenue of $19 Million Expected by Year End 2025 BEIJING, Jan. 23, 2025 /PRNewswire/ -- Datasea Inc. (Nasdaq: DTSS), a Nevada-based digital technology company specializing in acoustic high-tech and 5G AI multimodal digital innovation ("Datasea" or "the Company"), today announced a major update for its acoustic high-tech business. Following the successful signing of agreements with 263 ...

Core Summary - The company, Datasea Inc, has signed cooperation agreements with 14 beauty industry service and management companies, targeting the sale of approximately 140,000 acoustic high-tech products by the end of 2025, which is expected to generate $11 million in revenue [1][2][3] - The agreements involve placing acoustic high-tech products in 263 beauty salons and body care stores in northern China, including Tianjin and Hebei Province, strengthening the company's market presence in the region [1] - The company plans to expand its customer base to up to 10,000 beauty and body care stores over the next 2-5 years, covering provinces in Tianjin, Hebei, Beijing, and Inner Mongolia [3][11] Product and Technology - The acoustic products included in the agreements are acoustic air sterilizers, sleep products, and the company's 5G AI Digital Service System specifically developed for beauty industry stores [2] - The 5G AI Digital System provides independent technical services to partnered stores, helping them offer better services to their customers [2] - The system integrates 5G and AI technologies to reshape service workflows, enabling precise customer need identification, personalized service recommendations, and efficient marketing through big data analytics [6] Strategic Expansion - The company aims to drive the digital transformation of the beauty and body care industry in northern China through its advanced acoustic high-tech products and 5G AI Digital Beauty System [7] - Datasea plans to continue expanding its sales channels and leveraging its technological expertise and marketing know-how to create sustainable value for merchants and consumers [7] - The company expects to increase its online and offline sales of acoustic high-tech products as the number of partner stores grows [11] Company Background - Datasea Inc is a Nevada-based digital technology company specializing in acoustic high-tech and 5G AI multimodal digital innovation, with a focus on ultrasonic, infrasound, and directional sound technology [8] - The company's 5G multimodal digital segment operates on a cloud platform based on AI, and it has established a wholly-owned subsidiary, Datasea Acoustics LLC, in Delaware to mark its global presence [8]

Core Viewpoint - Datasea Inc. has successfully entered into a strategic sales agreement with Qingrong Digital Chain Technology Co., Ltd., which is expected to generate approximately $20.8 million annually over the next five years through the sale of its acoustic high-tech products [1][2]. Group 1: Event Overview - The product promotion event titled "5G AI: Unlocking the Future with Sound" was held in Tianjin, showcasing Datasea's advancements in acoustic technology and its 5G-AI multimodal platform, attended by over 200 industry leaders and representatives [3][4]. - The event highlighted the introduction of upgraded acoustic air sterilizers and sleep aid products, focusing on the beauty industry in China [4]. Group 2: Strategic Partnerships - The agreement with Qingrong involves the sale of up to 300,000 units of Datasea's acoustic products annually, including air disinfection machines and sleep aids, through Qingrong's extensive network of home decoration stores across China [5]. - Collaboration with the Tianjin Women Entrepreneurs Association aims to promote women-led business ventures and support sales efforts in Tianjin and the greater North China region [4]. Group 3: Company Profile - Datasea Inc. specializes in innovative acoustic high-tech and 5G AI multimodal digital technologies, focusing on ultrasonic, infrasound, and directional sound technology [6][7]. - The company has established a wholly-owned subsidiary, Datasea Acoustics LLC, in Delaware to enhance its global presence and offer advanced acoustic solutions to the US market [7].