Financial Performance - For the year ended December 31, 2024, the company reported a net loss of $8.0 million and an operating cash inflow of $790 thousand, primarily due to the negative impact of the economic downturn [508]. - The company incurred a net loss of $8,002,644 for the financial year ended December 31, 2024, leading to an accumulated deficit of $34,003,726 [509]. - The company reported a net cash increase of $934 thousand for the year ended December 31, 2024, compared to a decrease of $15.5 million in 2023 [512]. Cash and Working Capital - As of December 31, 2024, the company had cash of approximately $2.2 million and working capital of $10.2 million, with $2.1 million held by the VIE in China [510]. - The company believes that its current cash on hand and bank borrowing will provide sufficient liquidity for at least the next twelve months [511]. Accounts Receivable - Approximately $704 thousand, or 28%, of the accounts receivable balance as of December 31, 2024, was collected by March 31, 2025 [510]. - The allowance for credit losses for accounts receivable was $438,864 as of December 31, 2024, down from $559,382 in 2023 [516]. Inventory and Reserves - The company recorded a provision for inventory adjustments of $235,674 for the year ended December 31, 2024 [517]. - The company is required to set aside at least 10% of its after-tax profits each year to fund certain statutory reserve funds until these reach 50% of its registered capital [507]. Foreign Currency Risk - The company has not entered into any hedging transactions to reduce exposure to foreign currency exchange risk, as its operating transactions are mainly denominated in RMB [500].
Jowell .(JWEL) - 2024 Q4 - Annual Report