Core Points - Jamieson Wellness Inc. announced the election of all nominee directors at the annual meeting held on May 23, 2024 [1] - The voting results showed high approval rates for each director, with Heather Allen receiving 99.81% of votes for and Tania Clarke receiving 99.98% [2] Company Overview - Jamieson Wellness is a leading natural health brand in Canada, established in 1922, and is recognized as the 1 brand in vitamins, minerals, and supplements (VMS) [3] - The company also owns the youtheory brand, acquired in 2022, which is a growing lifestyle brand in the U.S. [3] - Jamieson Wellness products are available in over 50 countries and include various innovative VMS and sports nutrition products under multiple brands [3] - The company is committed to responsible business practices and is a participant in the United Nations Global Compact [3]

Financial Performance - For the year ended December 31, 2023, the company reported a net loss of $11.5 million and negative operating cash flows of $13.5 million, primarily due to the economic downturn's impact on business operations [496]. - For the year ended December 31, 2023, the net cash used in operating activities was $(13.5 million), while net cash provided by financing activities was $(1.6 million) [500]. - The provision for inventory adjustments for the year ended December 31, 2023, was $(438,949), indicating a reduction in the carrying value of obsolete or excess inventory [506]. Liquidity and Cash Management - As of December 31, 2023, the company had cash and restricted cash of approximately $1.3 million and working capital of $17.6 million, with $1.2 million of cash held by the VIE in China [497]. - The company expects that cash on hand of approximately $1.2 million and bank borrowing will collectively provide sufficient liquidity for at least the next twelve months [498]. Accounts Receivable and Credit Losses - Approximately $1.2 million, or 47%, of accounts receivable as of December 31, 2023, were collected by March 31, 2024, and approximately $10.9 million, or 81%, of advances to suppliers were utilized [497]. - The allowance for credit losses for accounts receivable was $559,382 as of December 31, 2023, compared to $84,400 in 2022 [505]. Regulatory and Accounting Considerations - The company is required to set aside at least 10% of after-tax profits to fund statutory reserve funds until they reach 50% of registered capital, which may restrict dividend payments [495]. - The company does not expect the adoption of recently issued accounting pronouncements to have a material impact on its financial position or results of operations [494]. Foreign Currency and Risk Management - The company has not entered into any hedging transactions to reduce exposure to foreign currency exchange risk, as its operations are primarily denominated in RMB [491].

Financial Performance - Total revenues for the first half of 2023 were $84.4 million, a decrease of 15.9% from $100.4 million in the same period of 2022[2] - Net loss for the first half of 2023 was $7.1 million, a decrease of 11.4% compared to a net loss of $8.0 million in the same period of 2022[16] - Total GMV (Gross Merchandise Value) was $115.5 million, down 20.6% year-over-year from $145.5 million[2] - Net revenues for the six months ended June 30, 2023, were $84,406,244, a decrease of 16% compared to $100,407,042 for the same period in 2022[26] - Loss from operations for the six months ended June 30, 2023, was $6,588,483, an improvement from a loss of $8,517,181 in the same period of 2022[26] - Net loss attributable to ordinary shareholders for the six months ended June 30, 2023, was $7,089,881, compared to $8,034,970 in the prior year, indicating a reduction of approximately 11.7%[26] - The company reported a loss per share of $3.33 for the six months ended June 30, 2023, improved from a loss per share of $4.87 in the same period of 2022[26] - For the six months ended June 30, 2023, Jowell Global Ltd. reported a net loss of $7,115,964, compared to a net loss of $8,034,970 for the same period in 2022, indicating a 11.4% improvement in net loss year-over-year[28] Revenue Sources - Household products revenue increased by about $17.4 million or 56.1% year-over-year, becoming the largest revenue producer for the company[7] Expenses and Costs - Operating loss was $6.6 million, an improvement from an operating loss of $8.5 million in the same period of 2022[14] - Total cost and operating expenses were $91.0 million, a decrease of 16.5% from $108.9 million in the same period of 2022[8] - Marketing expenses decreased by 46.7% to $3.3 million in the first half of 2023, down from $6.2 million in the same period of 2022[12] - The total cost and operating expenses for the six months ended June 30, 2023, were $90,994,727, down from $108,924,223 in the prior year, reflecting a reduction of approximately 16.5%[26] Assets and Liabilities - Total assets as of June 30, 2023, were $41,752,296, a significant decrease from $71,202,486 as of December 31, 2022[25] - Total liabilities as of June 30, 2023, were $12,770,594, down from $33,736,579 at the end of 2022[25] - The company had cash and cash equivalents of $1,983,830 as of June 30, 2023, compared to $13,718,102 at the end of 2022[25] - Cash and restricted cash at the end of the period was $1,983,830, down from $10,294,808 at the end of June 30, 2022, representing an 80.7% decrease[28] - Total stockholders' equity as of June 30, 2023, was $28,981,702, a decrease from $37,485,314 as of June 30, 2022, reflecting a 22.8% decline[27] Inventory and Receivables - Inventories increased to $17,179,507 as of June 30, 2023, from $13,278,205 at the end of 2022, reflecting a growth of approximately 29.5%[25] - The company experienced a significant increase in accounts receivable, totaling $1,670,275 for the six months ended June 30, 2023, compared to a decrease of $442,472 in the same period of 2022[28] - The balance of inventories decreased significantly, with a total of $(4,785,784) for the six months ended June 30, 2023, compared to $(1,731,202) in the same period of 2022[28] Shareholder Information - The company consolidated its ordinary shares at a ratio of one-for-sixteen on October 25, 2023, and increased authorized share capital to $800,000[26] - Jowell Global Ltd. had a total of 2,135,879 common shares outstanding as of June 30, 2023, an increase from 1,966,138 shares as of June 30, 2022[27] - The company reported a capital contribution from minority shareholders of $36,105 for the six months ended June 30, 2023[27] Foreign Currency and Cash Flow - Jowell Global Ltd. recorded a foreign currency translation loss of $1,534,482 for the six months ended June 30, 2023, compared to a loss of $1,597,147 in the same period of 2022[27] - The company reported a net cash used in operating activities of $9,918,157 for the six months ended June 30, 2023, compared to $16,186,979 for the same period in 2022, showing a 38.5% reduction in cash outflow[28] - The company issued 3,094 common shares as share-based compensation, amounting to $129,690 for the six months ended June 30, 2023, compared to $1,157,980 for the same period in 2022[28]

Financial Performance - For the year ended December 31, 2022, the company reported a net loss of $11.5 million and negative operating cash flows of $12.0 million, primarily due to its strategy to increase leading brands on its platform [500]. - The company's revenue increased by approximately $39.1 million in 2022 from 2021, while the cost of revenues increased by approximately $44.5 million during the same period [501]. - The company experienced a net cash outflow of $4.5 million in 2022, compared to a net cash inflow of $3.0 million in 2021 [506]. Liquidity and Cash Position - As of December 31, 2022, the company had cash and restricted cash of approximately $16.7 million and working capital of $28.3 million [502]. - The company believes that its current cash and bank borrowing will provide sufficient liquidity for at least the next twelve months [503]. - The principal sources of liquidity include proceeds from public offerings and private placements, with $9.9 million raised from issuing ordinary shares in 2022 [501]. Accounts Receivable and Credit Losses - Approximately $4.4 million, or 66%, of the accounts receivable balance as of December 31, 2022, was collected by March 31, 2023 [502]. - The allowance for credit losses for accounts receivable was $84,400 as of December 31, 2022, down from $103,805 in 2021 [511]. Inventory Management - The company recorded inventory write-downs of $1,102,119, $329,639, and $24,172 for the years ended December 31, 2022, 2021, and 2020, respectively [512]. Foreign Currency Risk - The company has not entered into any hedging transactions to reduce exposure to foreign currency exchange risk [497].

Financial Performance - For the year ended December 31, 2021, the company reported a net loss of $6.4 million and negative operating cash flows of $18.0 million, primarily due to aggressive business strategies aimed at increasing traffic to its online platform [497]. - The company raised net proceeds of approximately $25.7 million from its initial public offering, which were used to expand business operations, resulting in a revenue increase of approximately $74.0 million in 2021 compared to 2020 [498]. - The company has not identified any trends or uncertainties that could materially affect its financial position or operating results for the period from January 1, 2021, to December 31, 2021 [505]. Cash and Liquidity - As of December 31, 2021, the company had cash and restricted cash of approximately $21.2 million and working capital of approximately $31.3 million [501]. - Approximately $18.2 million of the cash was held by the VIE with banks and financial institutions in China, highlighting the company's reliance on its consolidated VIE for operations [501]. - As of March 31, 2022, approximately $3.9 million, or 70%, of the accounts receivable balance as of December 31, 2021, had been collected [501]. - The company had a short-term bank loan of approximately $2.7 million as of December 31, 2021, which was renewed to March 2023, indicating a stable credit history [502]. Obligations and Reserves - The company's operating lease contractual obligations as of December 31, 2021, totaled approximately $5.9 million [509]. - The company is required to set aside at least 10% of its after-tax profits each year for statutory reserve funds, which are not distributable as cash dividends [496]. - The company has not entered into any financial guarantees or derivative contracts that could impact its financial position [506].

Financial Position - As of December 31, 2020, the company had cash of approximately $18.2 million and current assets of approximately $30.0 million, with current liabilities of approximately $12.2 million, resulting in a current ratio of 2.47:1[497] - As of December 31, 2020, approximately $13.6 million cash was held by the company's VIE with banks and financial institutions in China[499] - The company's operating lease contractual obligations as of December 31, 2020, totaled $4.055 million[507] Fundraising Activities - The company completed a private placement on October 21, 2020, issuing 1,149,425 ordinary shares and receiving aggregated proceeds of $10 million[498] - The company's initial public offering (IPO) on March 19, 2021, raised approximately $29.9 million, including proceeds from the over-allotment option[498] Cash Flow - For the year 2020, net cash provided by operating activities was $6.339 million, while net cash used in investing activities was $117, and net cash provided by financing activities was $11.345 million[503] Risk Management - The company does not believe that inflation has had a material impact on its financial position or results of operations to date, but acknowledges potential future risks[489] - The company has not entered into any hedging transactions to reduce exposure to foreign currency exchange risk, as its operations are primarily denominated in RMB[491] Future Outlook - The company expects that existing resources, including cash generated from operations, will be sufficient to meet working capital requirements over the next twelve months[499] - The company has no material impact from Covid-19 on its liquidity[496]

Financial Performance - Full year revenue increased by 56.81% year over year to approximately $96.88 million from $61.78 million in 2019[2] - Net income for the full year rose by 180.47% year over year to approximately $3.59 million from $1.28 million in 2019[2] - Total net revenues for 2020 reached $96,879,173, a significant increase from $61,775,903 in 2019, representing a growth of approximately 56.8%[25] - Net income for 2020 was $3,586,692, compared to $1,278,359 in 2019, indicating an increase of about 180.5%[25] - Earnings per share for 2020 were $0.17, up from $0.06 in 2019, reflecting a growth of 183.3%[25] - The company reported a comprehensive income of $4,370,098 for 2020, compared to $1,280,796 in 2019, showing an increase of about 241.5%[25] Revenue Breakdown - Revenue from health and nutritional supplements surged by 131.00% to $52.37 million, driven by a 119.00% increase in quantity sold[7] - Household products revenue increased by 24.72% to $25.73 million, primarily due to a 50.90% rise in weighted average unit price[8] Operating Expenses and Income - Total operating expenses increased by 52.77% to $91.77 million from $60.07 million in 2019, attributed to sales growth and operational expansion[9] - Income from operations rose to $5.11 million, accounting for 5.27% of revenue in 2020, compared to 2.75% in 2019[14] Assets and Liabilities - Total current assets increased to $30,014,644 in 2020 from $11,190,351 in 2019, marking a growth of approximately 168.5%[23] - Total liabilities rose to $15,120,110 in 2020, compared to $6,884,793 in 2019, an increase of about 119.4%[23] - The total stockholders' equity rose to $18,744,744 in 2020 from $4,374,646 in 2019, reflecting an increase of approximately 327.5%[23] Cash Flow and Reserves - Cash reserves grew significantly to $18,244,055 in 2020 from $11,511 in 2019, indicating a substantial increase[23] - Net cash provided by operating activities reached $6,339,153 in 2020, compared to a cash outflow of $856,332 in 2019[27] - The company reported a net cash increase of $18,232,544 for the year, up from a decrease of $216,258 in the previous year[27] - Cash paid for income tax amounted to $839,325 in 2020, compared to $573,448 in 2019, indicating a rise of approximately 46%[27] - The cash balance at the end of the year was $18,244,055, a substantial increase from $11,511 at the end of 2019[27] Shareholder Information - The company had a total of 20,222,976 weighted average shares outstanding for 2020, compared to 20,000,000 in 2019[25] - The company issued $10,000,000 in ordinary shares during the financing activities, contributing to a net cash inflow of $11,344,806[27] Strategic Initiatives - The company launched the "Juhao Best Choice" community group-buying store initiative to expand its offline retail presence[16] - A strategic cooperation agreement was signed with ZTO Express to enhance logistics and community retail capabilities[16] Other Financial Metrics - Accounts payable increased to $5,688,809 in 2020 from $2,913,271 in 2019, representing an increase of approximately 95.5%[23] - Advance to suppliers related parties saw a significant increase to $7,583,425 in 2020, compared to a decrease of $4,136,542 in 2019[27] - The effect of exchange rate changes on cash was $665,331, a notable increase from $49,507 in the previous year[27] - The company recorded depreciation and amortization of $25,926 in 2020, up from $19,004 in 2019[27]