UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended June 30, 2023 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-38767 DATASEA INC. (Exact name of registrant as specified in its charter) 20th Floor, Tower B, Guorui Plaza 1 Ronghua South Road, Technological Develop ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number 001-38767 DATASEA INC. (Exact name of registrant as specified in its charter) | --- | --- | |-------------------------------------------------------------------------|------------- ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended December 31, 2022 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number 001-38767 DATASEA INC. (Exact name of registrant as specified in its charter) | --- | --- | |------------------------------------------------------------------------------------ ...

Financial Performance - Revenues for the three months ended September 30, 2022, were $1,164,305, representing a 73.4% increase from $671,130 in the same period of 2021[9] - Gross profit for the same period was $150,197, compared to $63,595 in the prior year, indicating a significant improvement in profitability[9] - The net loss attributable to the Company for the three months ended September 30, 2022, was $1,337,323, a slight improvement from a net loss of $1,441,234 in the same period of 2021[9] - For the three months ended September 30, 2022, the company reported a net loss of approximately $1.34 million, compared to a net loss of $1.44 million for the same period in 2021[27] - The Company had a comprehensive loss attributable to the Company of $1,324,985 for the three months ended September 30, 2022, compared to $1,445,931 in the prior year[9] - The net loss for the three months ended September 30, 2022, was $(757,146), a reduction from a net loss of $(870,189) in the same period of 2021, showing a narrowing of losses[41] - For the period ending September 30, 2022, the net loss was $19,920,889, compared to a net loss of $12,061,858 for the same period in 2021, representing a 65% increase in losses year-over-year[11] Assets and Liabilities - Total current assets decreased to $979,033 from $1,256,801, a decline of approximately 22.1%[6] - Total liabilities increased to $2,801,523 from $2,156,045, representing a rise of about 30%[6] - Total current liabilities increased to $2,394,898 as of September 30, 2022, compared to $1,711,439 as of June 30, 2022, reflecting a rise of approximately 39.9%[41] - As of September 30, 2022, total assets amounted to $1,919,865, a decrease from $2,290,541 as of June 30, 2022, representing a decline of approximately 16.2%[41] - Total stockholders' equity decreased to $1,245,170 from $2,453,905, a decline of approximately 49.3%[6] Cash Flow - Cash and cash equivalents decreased to $93,074 from $164,217, indicating a decline of approximately 43.3%[6] - Negative cash flow from operating activities was approximately $752,697 for the three months ended September 30, 2022, compared to $1,399,969 for the same period in 2021[27] - Cash provided by financing activities amounted to $790,302, a decrease from $7,172,459 in the prior year[13] - The company ended the period with cash of $93,074, a significant decrease from $5,805,362 at the end of the previous period[13] Operational Insights - The company is exploring options to raise additional funds through private or public offerings to support R&D and operations[28] - The company has recurring losses from operations, raising substantial doubt about its ability to continue as a going concern[27] - Management believes that the company will be able to continue operations for at least the next 12 months[28] - The Company anticipates that its financial resources will be sufficient to handle challenges associated with COVID-19[25] Revenue Recognition and Business Segments - The Company follows ASC 606 for revenue recognition, which requires identifying performance obligations and recognizing revenue when those obligations are satisfied[62] - The company’s only business segment is high technology and advanced information systems, focusing on smart city solutions and 5G messaging services[67] - The company recognized revenue of $1.04 million during the three months ended September 30, 2022, primarily from 5G messaging services[65] - The Company recognized an additional revenue of $124,544 from the Smart Public Broadcasting project during the same period[65] Subsidiaries and Market Expansion - The company has expanded its operations through the establishment of new subsidiaries and joint ventures, including Shuhai Jingwei and Shuhai Nanjing, to enhance its market presence and access funding for technology development[19][22] - The company incorporated two new subsidiaries during the year ended June 30, 2022, indicating ongoing market expansion efforts[30] Expenses and Cost Management - Total operating expenses decreased to $1,606,841 from $1,637,486 year-over-year, reflecting a reduction of approximately 1.9%[9] - The company incurred a stock compensation expense of $116,250 for the nine months ended September 30, 2022, down from $164,250 in the same period of 2021, suggesting cost control measures[13] - Operating lease expense for the three months ended September 30, 2022, was $203,111, down from $218,829 in the same period of 2021[137] Tax and Valuation - The Company has established a full valuation allowance for deferred tax assets as of September 30, 2022, due to uncertainty regarding future realization[126] - The effective tax rate for the Company was impacted by a valuation allowance of 21.3% for the three months ended September 30, 2022[129] Miscellaneous - The Company had no impairment loss recognized on long-lived assets for the three months ended September 30, 2022[55] - The exchange rate for USD to RMB at the end of September 30, 2022, was 7.0998, compared to 6.7114 at June 30, 2022[83] - The average USD to RMB exchange rate for the reporting period ended September 30, 2022, was 6.8287[83]

Financial Data and Key Metrics Changes - Datasea reported revenues of $17.08 million for the fiscal year ended June 30, 2022, a significant increase of $16.9 million or 9,653% compared to $0.17 million in the previous year [6][7] - The gross margin for the 12 months ended June 30, 2022, was 5.6%, with expectations for improvement due to economies of scale and increased brand recognition [10] - R&D expenses increased by $0.41 million or 48% year-on-year, totaling $1.26 million for the year ended June 30, 2022 [11] Business Line Data and Key Metrics Changes - The revenue from the 5G messaging business was $17.02 million, which included $11.93 million from 5G SMS and $3.26 million from value-added services [7][8] - The Smart City project generated $56,000 in revenue during the reporting period [7] Market Data and Key Metrics Changes - Datasea's customer base expanded across various provinces in China, including Beijing, Liaoning, and Guangdong, with agreements signed with over 11 industry customers [9] - The company aims to expand its global market exposure, particularly in North America, through the establishment of U.S. business subsidiaries [20] Company Strategy and Development Direction - Datasea's primary operational goals include providing best-in-class products in 5G messaging and acoustic intelligence, maximizing sustainable growth, and generating cash flows for shareholders [23] - The company is focusing on four key initiatives: enhancing digital communication, assisting companies in meeting marketing needs, investing in long-term growth areas, and leveraging innovation to provide unique solutions [24][26][29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's development for the new fiscal year, citing a $41.72 million procurement agreement for 5G messaging services [15] - The management noted that while the current economic environment poses challenges, the fundamentals of China's economy are improving, and the company is well-positioned for future growth [19][33] Other Important Information - Datasea plans to invest approximately $10 million in technological development over the next three years [13] - The company has developed ultrasonic sound sterilization equipment with a 99.83% efficacy against COVID-19, with significant orders already placed [12][16] Q&A Session Summary Question: How will you describe the company's competitiveness in the 5G messaging and acoustic intelligence? - Management highlighted the large market potential in China, authorization by major operators, a comprehensive product portfolio, and strong industry relationships as key competitive advantages [37][39][40] Question: If the Smart City solutions are not generating significant revenue, why does the company decide to keep it? - Management emphasized the promising market position and the strong synergies between Smart City solutions and the 5G messaging and acoustic intelligence businesses [44][45]

Datasea Inc. (NASDAQ:DTSS) Q2 2022 Earnings Conference Call February 14, 2022 8:00 AM ET Company Participants Annabelle Zhang - Investor Relations Zhixin Liu - Chief Executive Officer Mingzhou Sun - Chief Financial Officer Conference Call Participants Operator Greetings. Welcome to Datasea's Second Quarter Fiscal Year 2022 Financial Highlights and Updates. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] Plea ...