Cautionary Note Regarding Forward-Looking Statements This section warns that the report contains forward-looking statements subject to various risks and uncertainties that could materially alter actual results - The report contains forward-looking statements subject to risks and uncertainties that could cause actual results to differ materially61415 - Key risks include significant reliance on top customers, substantial accounts receivable that may become uncollectible, and potential expenses or delays due to the dismissal of BF Borgers as auditor67 - Other risks include potential fines from the Chinese government for uncompleted filings, challenges in maintaining product quality and competing effectively, and the need for substantial additional financing to execute business plans78 - Risks also encompass the unavailability of preferential tax treatments, disruptions in third-party supplier operations, fluctuations in raw material costs, and reliance on key executives910 - Regulatory developments in Mainland China, potential trading prohibitions under the Holding Foreign Companies Accountable Act, and changes in China's economic/political conditions pose additional risks1112 Item 1. Financial Statements This section presents the unaudited condensed consolidated financial statements for periods ended September 30, 2024, and December 31, 2023, prepared under U.S. GAAP - The financial statements are unaudited and prepared in accordance with U.S. GAAP, with certain disclosures condensed or omitted as permitted by SEC rules37 - Management believes all necessary adjustments have been made to present a fair statement of financial position, results of operations, and cash flows38 Condensed Consolidated Balance Sheets The balance sheets provide a snapshot of the company's financial position as of September 30, 2024, and December 31, 2023, showing assets, liabilities, and stockholders' equity | Metric | September 30, 2024 (Unaudited) | December 31, 2023 | Change | % Change | | :--------------------------------- | :----------------------------- | :---------------- | :----- | :------- | | Assets | | | | | | Cash | $106,737,492 | $98,040,554 | $8,696,938 | 8.87% | | Accounts receivable | $9,732,758 | $7,455,252 | $2,277,506 | 30.55% | | Inventories | $187,408 | $222,102 | $(34,694) | -15.62% | | Prepaid expenses & other current assets | $3,360,770 | $1,063,627 | $2,297,143 | 216.00% | | TOTAL CURRENT ASSETS | $120,018,428 | $106,781,535 | $13,236,893 | 12.39% | | Property, plant and equipment, net | $13,125,448 | $12,859,863 | $265,585 | 2.07% | | TOTAL ASSETS | $133,143,876 | $119,641,398 | $13,502,478 | 11.28% | | Liabilities | | | | | | Accounts payable | $1,218,402 | $640,795 | $577,607 | 90.14% | | Due to related parties | $434,576 | $- | $434,576 | N/A | | Income tax payable | $1,000,261 | $- | $1,000,261 | N/A | | Accrued expenses & other current liabilities | $800,612 | $4,462,496 | $(3,661,884) | -82.06% | | Convertible promissory notes payable | $- | $1,239,126 | $(1,239,126) | -100.00% | | TOTAL CURRENT LIABILITIES | $3,453,851 | $6,342,417 | $(2,888,566) | -45.54% | | Common stock purchase warrants liability | $214,679 | $378,371 | $(163,692) | -43.26% | | TOTAL LIABILITIES | $3,668,530 | $6,720,788 | $(3,052,258) | -45.41% | | Stockholders' Equity | | | | | | Common stock | $11,932 | $9,733 | $2,199 | 22.59% | | Additional paid in capital | $52,501,680 | $43,514,125 | $8,987,555 | 20.65% | | Retained earnings | $75,398,355 | $69,477,092 | $5,921,263 | 8.52% | | Accumulated other comprehensive loss | $(5,631,713) | $(7,275,432) | $1,643,719 | -22.60% | | TOTAL STOCKHOLDERS' EQUITY | $129,475,346 | $112,920,610 | $16,554,736 | 14.66% | | TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $133,143,876 | $119,641,398 | $13,502,478 | 11.28% | Condensed Consolidated Statements of Income and Comprehensive Income This statement details the company's revenues, expenses, and net income, as well as other comprehensive income, for the three and nine months ended September 30, 2024 and 2023 | Metric | 3 Months Ended Sep 30, 2024 | 3 Months Ended Sep 30, 2023 | YoY Change | % Change | 9 Months Ended Sep 30, 2024 | 9 Months Ended Sep 30, 2023 | YoY Change | % Change | | :--------------------------------------- | :-------------------------- | :-------------------------- | :--------- | :------- | :-------------------------- | :-------------------------- | :--------- | :------- | | Revenues | $11,537,989 | $11,123,605 | $414,384 | 3.73% | $38,649,823 | $37,331,498 | $1,318,325 | 3.53% | | Cost of Revenues | $(7,101,645) | $(6,346,079) | $(755,566) | 11.91% | $(26,014,703) | $(20,261,755) | $(5,752,948) | 28.39% | | Gross Profit | $4,436,344 | $4,777,526 | $(341,182) | -7.14% | $12,635,120 | $17,069,743 | $(4,434,623) | -25.98% | | Operating Expenses | $(953,332) | $(492,046) | $(461,286) | 93.75% | $(3,121,916) | $(2,389,043) | $(732,873) | 30.68% | | Income From Operations | $3,483,012 | $4,285,480 | $(802,468) | -18.72% | $9,513,204 | $14,680,700 | $(5,167,496) | -35.20% | | Total Other Income (Loss) | $157,123 | $(278,327) | $435,450 | -156.45% | $(851,326) | $(245,821) | $(605,505) | 246.39% | | Income Before Income Tax Expense | $3,640,135 | $4,007,153 | $(367,018) | -9.16% | $8,661,878 | $14,434,879 | $(5,773,001) | -40.00% | | Income Tax Expense | $(979,436) | $(1,148,185) | $168,749 | -14.70% | $(2,740,615) | $(4,109,679) | $1,369,064
Wetouch(WETH) - 2024 Q3 - Quarterly Report