Revenue and Profit - Net revenues for the three months ended June 30, 2024 were $247,061, a decrease of $1,025,536 (81%) compared to $1,272,597 for the same period in 2023[80] - Net revenues for the six months ended June 30, 2024 were $514,883, a decrease of $2,393,003 (82%) compared to $2,907,886 for the same period in 2023[81] - Gross profit for the three months ended June 30, 2024 was $44,276, a decrease of $575,523 (93%) compared to $619,799 for the same period in 2023[83] - Gross profit for the six months ended June 30, 2024 was $99,209, a decrease of $1,478,512 (94%) compared to $1,577,721 for the same period in 2023[83] Net Loss - Net loss for the three months ended June 30, 2024 was $777,723, compared to a net loss of $444,829 for the same period in 2023[84] - Net loss for the six months ended June 30, 2024 was $1,778,803, compared to a net loss of $534,005 for the same period in 2023[84] Cash Flow and Working Capital - Cash and cash equivalents decreased to $7,410 as of June 30, 2024 from $288,255 as of December 31, 2023[88] - Net cash used in operating activities for the six months ended June 30, 2024 was $274,805, compared to $85,816 provided by operating activities for the same period in 2023[90] - Net cash used in financing activities for the six months ended June 30, 2024 was $130, compared to $42,802 provided by financing activities for the same period in 2023[92] - The company estimates it has insufficient working capital to support daily operations for the next twelve months without raising additional capital[88] Accounting Policies and Off-Balance Sheet Arrangements - No material changes to critical accounting policies related to revenue recognition, allowance of doubtful accounts, and impairment of intangible assets and goodwill[94] - No off-balance sheet arrangements that materially affect financial condition, revenues, or expenses[96] Related Party Transactions - Accounts receivable from related parties as of June 30, 2024: $33,043, and December 31, 2023: $61,113[97] - Prepayments to related parties as of June 30, 2024: $806,932, and December 31, 2023: $941,978[97] - Deposits to related parties as of June 30, 2024: $523,886, and December 31, 2023: $536,450[97] - Accounts payable to related parties as of June 30, 2024: $187,954, and December 31, 2023: $162,310[97] - Outstanding payables due to related parties as of June 30, 2024: $1,015,727, and December 31, 2023: $680,226[97] - Products sold to related parties during six months ended June 30, 2024: $9,751, and June 30, 2023: $69,598[98] - Goods purchased from related parties during six months ended June 30, 2024: $167,351, and June 30, 2023: $374,686[98] - Rental expenses to related parties during six months ended June 30, 2024: $8,918, and June 30, 2023: $9,501[98]
Fortune Valley Treasures(FVTI) - 2024 Q2 - Quarterly Report