Core Viewpoint - Taoping Inc. aims to achieve annual sales of approximately RMB 200 million (around US$27 million) in 2026 through expanded cooperation in smart agriculture with Mengla County Agricultural Reclamation Group and its subsidiary [1] Group 1: Business Expansion - The partnership plans to increase the total planting area from nearly 75 acres to 500 acres, creating several thousand flexible jobs [2] - The company previously announced a target to expand the planting base in Mengla County to 3,500 acres by 2027, with projected annual output valued at RMB 600 million (US$82.5 million) [3] Group 2: Technological Integration - Taoping Yunnan and Mengla are utilizing advanced technologies such as drones, artificial intelligence (AI), big data, and the Internet of Things to improve production and operational efficiency [2] Group 3: Strategic Partnership - The strategic partnership with Mengla has already shown strong results, with successful trial vegetable crops leading to additional land lease agreements and an expanded demonstration planting base [4]

SHENZHEN, China, June 16, 2025 /PRNewswire/ -- Taoping Inc. (Nasdaq: TAOP, the "Company"), a provider of innovative smart cloud platform services and solutions, today announced that on June 13, 2025, it received notification from The Nasdaq Stock Market LLC ("Nasdaq") confirming the Company has cured its bid price deficiency, and that the Company has regained compliance with Nasdaq Listing Rule 5550(a)(2). Accordingly, this matter is now closed and the Company's ordinary shares will continue to trade uninte ...

Core Viewpoint - Taoping Inc. has entered into a new sales and purchase agreement worth RMB 20 million (approximately US$2.8 million) with Hunan Xiuxiang Agricultural Technology Co., Ltd. to supply agricultural products over a two-year period, indicating a strategic move to enhance its operations in the agricultural sector [1][2]. Company Overview - Taoping Inc. specializes in providing innovative smart cloud platform services and solutions, leveraging technology to enhance communication and marketing for both private and public sector clients [6]. - The company has established a comprehensive ecosystem of city partners and a portfolio of high-value areas for its products, aligning with its smart cloud platform and services [6]. Recent Developments - The new agreement with Xiuxiang Agricultural follows a previous major agreement that is projected to generate an annual output value of RMB 600 million (approximately US$83.3 million) by 2027, focusing on advanced agricultural practices and technologies in Mengla County, Yunnan Province [3][4]. - The company has conducted successful trials at its agricultural base in Mengla County, resulting in positive improvements in both yield and quality of the products grown, which supports its strategy to expand in the agricultural market [4]. Market Context - Xiuxiang Agricultural, based in Changsha, Hunan Province, aims to modernize its operations and improve supply chain efficiency by collaborating with Taoping, reflecting the growing demand for agricultural products, particularly vegetables, in China [2][4]. - Mengla County, where Taoping operates, is recognized for its rich biodiversity and serves as a significant trade hub, which enhances the potential for agricultural development and tourism [5].

Company Overview - Taoping Inc. is a provider of innovative smart cloud platform services and solutions, focusing on technology to enhance communication and marketing for both private and public sectors [4]. Reverse Stock Split Announcement - The board of directors approved a one-for-thirty reverse stock split of the Company's issued and outstanding ordinary shares, effective May 29, 2025 [1]. - Each thirty ordinary shares will automatically combine into one issued and outstanding ordinary share without requiring action from shareholders [2]. Purpose of the Reverse Stock Split - The reverse stock split aims to increase the per share trading price to meet the $1.00 minimum bid price requirement for continued listing on the Nasdaq Stock Market [3]. - Post-split, the Company will have approximately 0.89 million ordinary shares issued and outstanding, excluding shares from options and convertible notes [3].

Financial Performance - The company incurred a net loss of $1.8 million for the year ended December 31, 2024, compared to a net loss of $0.7 million for 2023[438]. - Net cash used in operating activities was $2.4 million for the year ended December 31, 2024, slightly higher than $2.3 million in 2023[433]. - As of December 31, 2024, the company had cash and cash equivalents of $1.6 million, an increase from $1.3 million in 2023[438]. - As of December 31, 2024, the company's cash and cash equivalents totaled $1,576,632, an increase from $1,300,855 in 2023, representing a growth of approximately 21.2%[450]. - Cash held by entities located in the PRC increased to $906,180 in 2024 from $647,217 in 2023, marking an increase of approximately 40%[450]. Credit Losses and Assets - The allowance for credit losses decreased from approximately $25.6 million in 2023 to $7.7 million in 2024, reflecting significant write-offs[429]. - As of December 31, 2024, restricted net assets represented 64.33% of consolidated net assets, down from 79.99% in 2023[449]. - The company maintains an allowance for credit losses based on historical trends and estimates of future economic conditions[471]. Financing Activities - Net cash provided by financing activities was $3.7 million for the year ended December 31, 2024, primarily from short-term and long-term loans[435]. - The company had total short-term and long-term bank loans of approximately $7.9 million as of December 31, 2024[437]. - The company entered into standby equity purchase agreements in July 2023, allowing it to sell up to $11 million in ordinary shares over the next 36 months[441]. - The company sold an unsecured convertible promissory note with a principal amount of $609,000 in September 2023, which may be converted into shares at a price of $8.00[442]. Revenue Recognition - The company recognizes revenue from product sales, software sales, advertising, and other sales, with revenue recognized upon delivery of goods and services[454]. - Revenue from product sales is primarily generated from Cloud-Application-Terminal based digital ads display terminals and high-end data storage servers[455]. - The company follows ASC 606 for revenue recognition, ensuring revenues are recognized net of applicable taxes when obligations are satisfied[453]. Operations and Investments - The company has ceased its cryptocurrency mining operations by December 2022, resulting in no revenue from this segment for the years ended December 31, 2023 and 2024[464]. - The company has a lease agreement for office space with fixed monthly rental payments, extended to April 30, 2026, generating consistent rental income[467]. - The company emphasizes continuous expenditures on research and development to enhance existing products and create new ones, crucial for maintaining competitiveness in a rapidly changing industry[451]. - The company plans to invest in developing a smart agricultural planting base in Mengla County, Yunnan Province, starting in 2025[439]. Accounting and Compliance - Recent accounting pronouncements discussed in the audited consolidated financial statements[486]. - The company accounts for cryptocurrencies as intangible assets, assessing for impairment annually, with no cash flows from cryptocurrencies included in operating activities[474][476].

Core Viewpoint - Taoping Inc. reported a slight decrease in revenue for 2024, focusing on AI-driven product development and enhanced existing solutions, while anticipating improved growth in 2025 due to increased demand for cloud-based technologies and strategic investments in innovation [2][3]. Financial Performance - Total revenue for the year ended December 31, 2024, was $36.7 million, down from $38.6 million in 2023, attributed to a decline in traditional advertising and software revenue despite increased demand for AI-integrated products [3]. - Cost of revenue decreased by $0.9 million to $28.9 million in 2024, with the cost of revenue as a percentage of total revenue increasing to 78.8% from 77.1% in 2023 [4]. - Gross profit margin decreased to 21.2% in 2024 from 22.9% in 2023, primarily due to lower margins in the advertising business [5]. - The net loss attributable to the company was $1.8 million for 2024, compared to a net loss of $0.7 million in 2023 [6]. Strategic Focus - The company is positioned to benefit from China's accelerated urbanization, which is expected to drive demand for its Smart City IoT platforms [2]. - Taoping aims to expand its gross margin by increasing the contribution of higher-margin sales, particularly from AI-related products [5].

Mr. Jianghuai Lin, Chairman and CEO of Taoping, said: "Our unwavering focus and consistent efforts in expanding our AI-related product lines and applications continue to strengthen our competitive position in attractive growth markets. We believe these represent significant long-term opportunities as we prioritize developing new AI features that transform how companies interact with their customers, and analyze text, voice, and images." "Importantly, we are also benefiting from rising demand as more custome ...

Core Viewpoint - Taoping Inc. has entered a non-binding strategic cooperation framework agreement with the Government of Mengla County, Yunnan Province, focusing on modern agricultural development to enhance regional economic growth [1][2][3] Investment and Project Details - The project aims to develop an agricultural planting base in Mengla County, expanding to 3,500 acres over three years with a total investment of RMB 200 million (approximately US$27.5 million) [2] - By 2027, the project is projected to generate an annual output value of RMB 600 million (approximately US$82.5 million) [2] Technological Integration and Support - The cooperation will leverage advanced technologies such as the Internet of Things, big data, and artificial intelligence to improve production and operational efficiency [3] - The Government of Mengla County will provide support in land transfers, technology, and resource allocation, facilitating partnerships with neighboring countries [3] Strategic Importance and Vision - The Chairman and CEO of Taoping Inc. emphasized Mengla County's natural resources and location as ideal for modern agricultural development, aiming to create a comprehensive agricultural industrial system [4] - The agreement is noted as one of the largest in the company's history, showcasing the strength of its technology and the long-term potential of the partnership [4]

Core Points - Taoping Inc. has received a notification from Nasdaq granting an additional 180 calendar days to comply with the minimum bid price requirement, extending the deadline to June 16, 2025 [7] - The company must maintain a closing bid price of at least US$1.00 per share for at least ten consecutive business days to regain compliance [1] - The notification does not affect the current trading status of the company's ordinary shares, which will continue to trade on Nasdaq under the ticker "TAOP" [2] Company Overview - Taoping Inc. specializes in innovative smart cloud platform services, new media, and artificial intelligence solutions, serving both private and public sectors [5] - The company has developed a comprehensive portfolio and a city partner ecosystem to enhance communication and marketing effectiveness for its customers [5]

Financial Performance - Total revenue for the six months ended June 30, 2024, was $18,078,547, representing a 28.4% increase from $14,078,009 in the same period of 2023[8] - Gross profit for the same period was $4,140,692, up from $3,874,900, indicating a gross margin improvement[8] - Net income attributable to the company for the six months ended June 30, 2024, was $588,744, a significant recovery from a net loss of $1,809,030 in the prior year[8] - The company reported a gross profit margin of approximately 22.9% for the six months ended June 30, 2024, compared to 27.5% in the same period of 2023[8] - For the six months ended June 30, 2024, Taoping Inc. reported a net income of $588,744, a significant improvement compared to a net loss of $1,809,030 for the same period in 2023[18] - Revenue achieved a 28.4% period-over-period increase in the first half of 2024, driven by recovery in market conditions and customer demand[45] - Basic earnings per share for the six months ended June 30, 2024, was $0.13, compared to a loss of $1.10 per share for the same period in 2023[120] Assets and Liabilities - Total current assets increased to $27,450,267 as of June 30, 2024, compared to $25,250,915 at the end of 2023, reflecting a growth of 8.7%[6] - Total assets reached $34,079,694, up from $32,826,314, marking a 3.8% increase[6] - Total liabilities decreased to $18,241,825 from $20,063,017, a reduction of 9.1%[6] - As of June 30, 2024, accounts receivable totaled approximately $14.2 million, down from $19.5 million as of December 31, 2023, indicating a decrease of about 27.5%[62] - The net accounts receivable as of June 30, 2024, was approximately $7.4 million, compared to $8.1 million as of December 31, 2023, reflecting a decline of about 7.8%[62] - The allowance for credit losses decreased to approximately $6.9 million as of June 30, 2024, from $25.6 million as of December 31, 2023, representing a reduction of approximately 73.1%[63] - The company held approximately $0.5 million in cash as of June 30, 2024, down from $1.3 million as of December 31, 2023, a decrease of approximately 61.5%[58] Operational Expenses - Research and development expenses were $1,224,244, down from $1,585,894, indicating a 22.8% reduction[8] - Cash used in operating activities for the first half of 2024 was $(2,532,001), a decline from $(670,271) in the same period of 2023, reflecting operational challenges[18] - The Company reported depreciation expenses of approximately $1.1 million for the six months ended June 30, 2024, compared to $1.3 million for the same period in 2023[130] - The Company recognized impairments for obsolete inventories of approximately $10,700 for the six months ended June 30, 2024, compared to $8,400 for the same period in 2023[128] Financing Activities - The company issued 2,891,822 ordinary shares for financing purposes, raising $2,887,990 during the first half of 2024[18] - The holder of the company's convertible promissory note converted $100,000 of principal and accrued interest into 149,925 ordinary shares in May 2024, reflecting ongoing financing activities[24] - The Company issued a Convertible Promissory Note on September 27, 2023, with an aggregate principal amount of $609,000, maturing in 12 months and carrying an annual interest rate of 8%[177] - The net proceeds from the Convertible Promissory Note were $550,000 after accounting for transaction costs and original issue discount[177] - The Company recognized interest expense of approximately $119,000 for the period ended June 30, 2024, including $22,000 related to contractual interest obligations[180] Strategic Initiatives - Taoping Inc. continues to focus on providing cloud-based technologies for Smart City IoT platforms and digital advertising delivery, targeting various sectors including government and education[26] - The Company established a subsidiary for off-grid wastewater treatment in May 2023 and acquired 80% of Fujian Taoping Investment Co., Ltd. in September 2023, expanding its digital advertising business[35] - The Company has entered into long-term strategic cooperation agreements to provide cloud-based intelligent product solutions, expected to generate revenue for years[46] Tax and Regulatory Matters - The PRC statutory tax rate remains at 25% for the company[147] - The company's tax loss carryforwards totaled RMB143.8 million ($20.0 million) as of June 30, 2024, with expiration dates through June 30, 2034[149] - Current income tax expense for the six months ended June 30, 2024, was $5,347, a decrease of 84.5% compared to $34,513 for the same period in 2023[146] - The expected income tax benefit for the six months ended June 30, 2024, was $148,523, compared to a tax benefit of $(443,629) in the same period of 2023[147] Shareholder Matters - The company implemented a one-for-ten reverse stock split on August 1, 2023, affecting the number of shares outstanding[8] - A one-for-ten reverse stock split of the Company's ordinary shares was effective on August 1, 2023[52] - The Company is authorized to issue 100,000,000 ordinary shares, with various issuances occurring throughout 2023 and 2024 generating significant net proceeds[188] Other Financial Information - The Company generated approximately $123,000 and $128,000 in rental income for the periods ended June 30, 2024, and 2023, respectively[91] - The Company recognized revenue of approximately $682,000 and $463,000 from advances from customers for the six months ended June 30, 2024, and 2023, respectively[93] - The total minimum rental income to be received in the next five years is projected to be $452,486, with $123,405 in 2024, $246,811 in 2025, and $82,270 in 2026[92] - The Company’s advertising revenue is fixed based on the number of advertisement deliveries and contract duration, with no variable consideration[86]