Financial Performance - Total revenue for the six months ended December 31, 2023, was $87.72 million, a decrease of 27.0% compared to $120.21 million for the same period in 2022[6]. - Gross profit for the same period was $2.19 million, down 29.4% from $3.10 million year-over-year[6]. - The net loss for the six months ended December 31, 2023, was $721,745, compared to a net income of $926,717 for the same period in 2022[6]. - Sales of electronic components products totaled $86,329,512 for the six months ended December 31, 2023, down 27.0% from $118,348,676 in 2022[76]. - Integrated Circuits sales increased significantly to $30,881,697 in 2023 from $9,097,914 in 2022, representing a growth of 238.5%[76]. - The company reported a net loss attributable to ordinary shareholders of $721,745 for the six months ended December 31, 2023, compared to a net income of $926,717 in 2022[88]. - Basic and diluted earnings per share for the six months ended December 31, 2023, were both $(0.07), compared to $0.10 in 2022[88]. Assets and Liabilities - Total current assets decreased to $63.60 million as of December 31, 2023, from $86.89 million as of June 30, 2023, representing a decline of 26.8%[2]. - Total liabilities decreased to $49.40 million as of December 31, 2023, from $72.63 million as of June 30, 2023, a reduction of 31.9%[3]. - The company reported total shareholders' equity of $15.67 million as of December 31, 2023, an increase from $15.54 million as of June 30, 2023[4]. - Accounts receivable decreased significantly to $53.12 million as of December 31, 2023, from $76.69 million as of June 30, 2023, a decline of 30.8%[2]. - Total inventory, net, decreased to $454,999 as of December 31, 2023, from $833,858 as of June 30, 2023, representing a decline of about 45.5%[109]. - The balance due to related parties increased significantly to $3,280,522 as of December 31, 2023, compared to $1,508,766 as of June 30, 2023[160]. Cash Flow and Financing Activities - Cash and cash equivalents increased slightly to $1.13 million as of December 31, 2023, compared to $1.11 million as of June 30, 2023[2]. - The net cash used in operating activities was $1,026,221, a decrease from $1,905,166 in the prior year, showing an improvement of approximately 46%[10]. - The company experienced a net cash provided by financing activities of $2,987,399, up from $2,023,947 in the previous year, marking an increase of approximately 48%[10]. - The total interest expense for loans from PRC banks amounted to $321,697 for the six months ended December 31, 2023[144]. - The Company borrowed a total of RMB 16.0 million (approximately USD 2.3 million) from SPD Bank on October 24, 2023, with an effective interest rate of 2.74% per annum[126]. - The Company borrowed $2.75 million from Agricultural Bank of China on February 22, 2023, with an effective interest rate of 5.69% per annum[128]. Operational Highlights - The company has been actively engaged in the sales of electronic components primarily to small and medium-sized enterprises in China, focusing on the consumer electronics and automotive electronics sectors[13]. - ICZOOM has established a comprehensive logistics and shipping service to enhance customer experience and generate additional service commission fees[13]. - The company operates a B2B online platform, where customers can post quotes for electronic components, and revenue is recognized upon delivery[68][71]. - The company generates revenue from sales of electronic components and service commission fees, with commission fees ranging from 0.15% to 2% based on merchandise value[72][73]. Taxation and Regulatory Matters - ICZOOM Shenzhen was approved as a High and New Technology Enterprise, entitled to a reduced income tax rate of 15% beginning December 2023[152]. - For the six months ended December 31, 2023, the actual income tax expense was $(324,977), compared to a benefit of $1,052 for the same period in 2022[154]. - The deferred tax assets derived from net operating loss carry forwards increased to $741,077 as of December 31, 2023, from $406,760 as of June 30, 2023[156]. Shareholder Information - The weighted average number of ordinary shares outstanding for the six months ended December 31, 2023, was 10,362,861, compared to 8,826,374 for the same period in 2022[6]. - The total number of outstanding stock options is 742,762 with a weighted average exercise price of $0.18[183]. - The fair value of share options vested during the six months ended December 31, 2023 was nil, compared to $4,683 for the same period in 2022[188]. - The company recorded share-based compensation expense of nil for the six months ended December 31, 2023, down from $58,598 in 2022[188].
ICZOOM(IZM) - 2023 Q4 - Annual Report