Revenue Performance - For the three months ended September 30, 2024, total revenues decreased by $66,922, or 1.6%, to $4,081,554 compared to $4,148,476 for the same period in 2023[189]. - Revenue from cross-border ocean freight solutions increased by $132,934, or 7.8%, to $1,836,591, representing 45.0% of total revenues for Q3 2024[188]. - Revenue from cross-border airfreight solutions decreased by $199,856, or 8.2%, to $2,244,963, accounting for 55.0% of total revenues for Q3 2024[188]. - Total revenues decreased by $66,922, or 1.6%, from $4,148,476 in Q3 2023 to $4,081,554 in Q3 2024, with Asia-based customer revenues increasing by $1.1 million, or 65.8%, while U.S.-based customer revenues decreased by $1.2 million, or 48.2%[193]. - Revenues from cross-border airfreight solutions decreased by $0.2 million, or 8.2%, from $2.4 million in Q3 2023 to $2.2 million in Q3 2024, due to a volume drop from approximately 7,816 tons to 7,273 tons[190]. - Revenues from cross-border ocean freight solutions increased by $0.1 million, or 7.8%, from $1.7 million in Q3 2023 to $1.8 million in Q3 2024, driven by an increase in volume from 1,290 TEU to 1,430 TEU[191]. Profitability and Loss - Gross profit for the three months ended September 30, 2024, was $522,539, a decrease of $125,004, or 19.3%, from $647,543 in Q3 2023[189]. - Gross profit decreased by $0.1 million, or 19.3%, from $0.6 million in Q3 2023 to $0.5 million in Q3 2024, with a gross margin decline from 15.6% to 12.8%[198]. - The net loss for the three months ended September 30, 2024, was $1,335,407, compared to a net loss of $307,285 for the same period in 2023[187]. - Loss before income taxes was $1.2 million for Q3 2024, compared to a loss of $0.3 million in Q3 2023, attributed to decreased gross profit and increased operating expenses[207]. - Net loss increased to $1.3 million in Q3 2024 from $0.3 million in Q3 2023[209]. Operating Expenses - Operating expenses increased significantly to $1,850,043 in Q3 2024, compared to $981,051 in Q3 2023, primarily due to higher general and administrative expenses[187]. - General and administrative expenses increased by $1.0 million, or 114.7%, from $0.9 million in Q3 2023 to $1.8 million in Q3 2024, representing 45.0% of total revenues[199]. Cash Flow and Investments - Net cash used in operating activities was $1,402,784 for the three months ended September 30, 2024, compared to a net cash provided of $40,357 for the same period in 2023, reflecting a significant increase in net loss[215][216]. - The increase in cash used in operating activities of $1,443,141 was primarily due to a net loss increase of $1,028,122 and a $641,637 increase in cash outflow from working capital[217]. - Net cash used in investing activities was $38,279 for the three months ended September 30, 2024, down from $78,799 in the same period in 2023, primarily due to purchases of property and equipment[218]. - Net cash provided by financing activities was $4,044,402 for the three months ended September 30, 2024, a substantial increase from $66,760 in the prior year, mainly due to net proceeds of approximately $5,351,281 from an offering[218]. - Capital expenditures amounted to $38,279 for the three months ended September 30, 2024, compared to nil in the same period in 2023, indicating an increase in investment in fixed assets[220]. - The company expects capital expenditures to increase in the future, funded by existing cash balances and proceeds from loans and the IPO closed in July 2024[221]. Assets and Liabilities - As of September 30, 2024, cash and cash equivalents were $2.7 million, with current assets of $5.8 million and current liabilities of $4.4 million, resulting in a current ratio of 1.3:1[210]. - Accounts receivable net of allowance decreased from $2.8 million as of June 30, 2023, to $2.3 million as of September 30, 2024, with a credit loss allowance of $66,903[211]. - Total contractual obligations as of September 30, 2024, amounted to $5,763,202, with operating lease obligations of $5,104,017[222]. - The company reported no off-balance sheet arrangements that could materially affect its financial condition or results of operations as of September 30, 2024[223]. Internal Controls and Management - Management identified material weaknesses in internal controls over financial reporting, including inadequate segregation of duties and insufficient written policies[236]. - The company plans to address identified weaknesses by hiring additional accounting staff and implementing formal procedures and controls for financial reporting[237]. Business Operations - The company has fulfilled over 45,000 cross-border supply chain solution orders with an aggregate assessed value of $1.0 billion as of September 30, 2024[170]. - The company operates three regional warehousing and distribution centers in the U.S. with a total gross area of approximately 142,484 square feet[169]. - As of September 30, 2024, the company had collaborated with almost all major global ocean and air carriers, forwarding 32,800 TEU of container loads and 55,100 tons of air cargo[168]. - The company aims to expand its customer base and improve service quality to achieve sustainable business growth[172].
Lakeside Holding Limited(LSH) - 2025 Q1 - Quarterly Report