SOS(SOS) - 2024 Q2 - Quarterly Report

Financial Statements Consolidated Balance Sheets Total assets increased to $525.0 million, driven by receivables, while liabilities rose to $94.5 million, resulting in a slight equity increase Consolidated Balance Sheet Highlights (US$ millions) | Financial Item | 31-Dec-23 (Audited) | 30-Jun-24 (Unaudited) | | :--- | :--- | :--- | | Total Current Assets | 455.4 | 505.5 | | Total Assets | 483.9 | 525.0 | | Total Current Liabilities | 61.5 | 94.5 | | Total Liabilities | 61.5 | 94.5 | | Total Shareholders' Equity | 422.4 | 430.5 | - Cash and cash equivalents decreased from $279.2 million to $246.7 million[3] - Other receivables increased significantly from $80.0 million to $195.5 million[3] - Accrued liabilities rose from $15.2 million to $40.8 million[3] - Other payables increased from $7.5 million to $40.1 million[3] Consolidated Statements of Comprehensive Loss Revenue grew 44.8% to $60.5 million, but increased operating expenses led to a $15.1 million loss from operations Consolidated Statements of Comprehensive Loss Highlights (US$ millions) | Performance Metric | Six months ended 30-Jun-23 | Six months ended 30-Jun-24 | | :--- | :--- | :--- | | Net Revenue | 41.8 | 60.5 | | Gross Profit | 0.09 | 2.4 | | Gross Profit Ratio | 0.2% | 4.0% | | Loss from Operations | (12.5) | (15.1) | | Net Loss Attributable to SOS Ltd | (10.7) | (10.9) | | Basic and Diluted Loss Per Share | (0.0031) | (0.0299) | - Revenue grew by 44.8% year-over-year[6] - Gross profit margin improved significantly from 0.2% to 4.0%[6] - General and administrative expenses increased from $9.4 million to $14.5 million, driving the increase in total operating expenses[6] - The weighted average number of ordinary shares decreased drastically from 3.44 billion to 364.2 million, which significantly impacted the loss per share calculation[6] Consolidated Statements of Equity Shareholders' equity increased to $430.5 million, driven by share issuance and compensation, despite net loss and FX adjustments Consolidated Statements of Equity Highlights (US$ millions) | Equity Component Change | Amount | | :--- | :--- | | Balance, December 31, 2023 | 422.4 | | Share-based compensation | + 0.8 | | Issuance of Class A Ordinary Shares and warrant | + 24.8 | | Net loss | - 12.8 | | Foreign currency translation adjustments | - 4.7 | | Balance, June 30, 2024 | 430.5 | - The company issued 242,095,250 Class A Ordinary Shares and warrants during the period[9] - The total par value of shares increased from $0.7 million to $24.5 million, reflecting significant share issuance activity[9] Consolidated Statement of Cash Flow Operating activities resulted in a $53.4 million cash outflow, offset by $24.5 million from financing, decreasing cash to $246.7 million Consolidated Statement of Cash Flow Highlights (US$ millions) | Cash Flow Item | Six months ended 30-Jun-23 | Six months ended 30-Jun-24 | | :--- | :--- | :--- | | Net cash used in operating activities | (2.0) | (53.4) | | Net cash generated from/(used in) financing activities | (0.3) | 24.5 | | Net decrease on cash and cash equivalents | (2.3) | (28.8) | | Cash and cash equivalents at end of the period | 249.9 | 246.7 | - The primary driver for the large operating cash outflow was a $115.6 million negative change in 'Other receivables'[12] - Financing activities provided a net inflow of $24.5 million, primarily from the issuance of new shares ($24.8 million in proceeds)[12] - Despite a net loss of $10.9 million, non-cash charges like depreciation and amortization ($8.8 million) partially offset the loss in the operating cash flow calculation[12]