Cheetah Net Supply Chain Service (US:CTNT)2024-11-13 22:05Financial Performance - Total revenues for the three months ended September 30, 2024, were $61,208, a significant decrease from $10,038,246 for the same period in 2023, representing a decline of approximately 99.4%[8] - Gross profit for the three months ended September 30, 2024, was $29,869, compared to $1,167,360 for the same period in 2023, indicating a decrease of about 97.4%[8] - The company reported a net loss of $1,815,292 for the three months ended September 30, 2024, compared to a net income of $122,903 for the same period in 2023, reflecting a negative swing of approximately 1,572%[8] - Operating expenses for the three months ended September 30, 2024, totaled $2,478,771, compared to $714,150 for the same period in 2023, reflecting an increase of approximately 248.5%[8] - For the nine months ended September 30, 2024, the net loss was $3,037,102 compared to a net income of $170,715 for the same period in 2023[14] - Revenues for the nine months ended September 30, 2024, were $1.9 million, compared to $32.5 million for the same period in 2023, representing a decrease of $30.6 million, or 94.3%[174] - The company reported a net loss of $3.0 million for the nine months ended September 30, 2024, compared to a net income of $0.2 million for the same period in 2023[197] Assets and Liabilities - Total current assets increased to $12,418,881 as of September 30, 2024, up from $9,820,537 as of December 31, 2023, marking an increase of about 26.3%[6] - Total liabilities decreased to $2,874,412 as of September 30, 2024, down from $3,154,637 as of December 31, 2023, representing a reduction of approximately 8.8%[6] - The company’s total stockholders' equity increased to $13,953,743 as of September 30, 2024, compared to $6,904,628 as of December 31, 2023, indicating an increase of about 102.5%[6] - The company had cash and cash equivalents of $5,287,376 as of September 30, 2024, a substantial increase from $432,998 as of December 31, 2023[6] - Accounts receivable as of September 30, 2024, totaled $3,291,450, down from $6,494,695 as of December 31, 2023, reflecting a decrease in outstanding balances[66] - As of September 30, 2024, total loans receivable amounted to $3,058,295, a significant increase from $672,500 on December 31, 2023, reflecting a growth of approximately 354%[70] Revenue Sources - Revenue from the U.S. domestic market for parallel-import vehicles was $1,244,615 for the three months ended September 30, 2023, while there was no revenue reported for the same period in 2024[50] - The overseas market generated $8,793,631 in revenue for the three months ended September 30, 2023, with $1,430,951 for the nine months ended September 30, 2024, indicating a decrease in performance[50] - The logistics and warehousing segment reported $36,860 in revenue for the three months ended September 30, 2024, compared to no revenue in the same period of 2023[51] - The company generated revenue of $231,605 from logistics and warehousing services for the nine months ended September 30, 2024, following the acquisition of Edward in February 2024[185] Expenses and Costs - General and administrative expenses increased by $572,365, or 108.0%, to $1.1 million for the three months ended September 30, 2024, primarily due to increases in personnel-related and rental expenses[164] - Selling expenses decreased to approximately $117.8 million for the nine months ended September 30, 2024, from $603.2 million for the same period in 2023, a reduction of $485.4 million, or 80.5%[187] - The total cost of revenues for the three months ended September 30, 2024, was $31,339, representing a significant decrease compared to the previous year[164] - Total cost of revenue from parallel-import vehicles sold decreased by $27.3 million, or 94.3%, to $1.7 million for the nine months ended September 30, 2024, from $28.9 million for the same period in 2023[180] Shareholder Equity and Stock - The company raised $8,402,676 from a follow-on public offering, contributing to a net increase in cash of $4,854,378 for the period[14] - The company approved the grant of 45,938 shares of Class A common stock and 31,250 shares of Class B common stock to the CEO, which vested immediately[107] - As of September 30, 2024, the Company had 1,960,218 shares of Class A common stock and 546,875 shares of Class B common stock issued and outstanding[131] Credit and Loans - The company incurred share-based compensation expenses of $261,666 during the nine months ended September 30, 2024[14] - The company provided an unsecured short-term loan of $500,000 on December 11, 2023, with an interest rate increase from 12.0% to 18.0% upon maturity extension[71] - The company extended a short-term loan of $1,500,000 to Hongkong Sanyou Petroleum Co. Limited under the same terms as a previous loan of $1,000,000[72] Tax and Regulatory - The effective income tax rate for the three months ended September 30, 2024, was 23.6%, compared to 26.4% for the same period in 2023[114] - Total deferred tax assets as of September 30, 2024, were $1,548,590, significantly increased from $47,905 as of December 31, 2023[115] - Income tax benefits were $0.6 million for the three months ended September 30, 2024, compared with an income tax provision of approximately $44,217 for the same period in 2023[173] Market Conditions - The ongoing military conflicts and inflation may adversely affect the company's liquidity, business, financial condition, and results of operations[160] - The company is experiencing changes in consumer demand in the Chinese market towards fuel-efficient vehicles and EVs, which may negatively impact vehicle sales volumes[160] Acquisitions - The company acquired Edward Transit Express Group Inc. in February 2024 to expand logistics and warehousing operations and relocated its headquarters to Irvine, CA, in July 2024[147] - The acquisition of Edward was completed on February 2, 2024, for a total purchase price of $1,500,000, which included a cash payment of $300,000 and the issuance of shares valued at $9 million[128]