Financial Performance - For the nine months ended March 31, 2025, total revenues were $11.5 million, a decrease of 14.8% from $13.5 million in the same period of 2024[252]. - Gross profit for the nine months ended March 31, 2025, was $1.2 million, down from $2.7 million in the same period of 2024, indicating a decline of 55.6%[252]. - Total revenue for the three months ended March 31, 2025, was $3,803,140, a decrease of $657,623 or 14.7% compared to $4,460,763 for the same period in 2024[273]. - Total revenues decreased by $2.8 million, or 20.4%, from $13.5 million for the nine months ended March 31, 2024, to $10.7 million for the nine months ended March 31, 2025[299]. - Gross profit for the nine months ended March 31, 2025, was $1.2 million, a decrease of $1.5 million or 55.5% compared to $2.7 million for the same period in 2024[298]. - Gross profit decreased by $1.5 million, or 55.5%, to $1.2 million, with a gross margin for cross-border freight solutions dropping to 6.7% from 19.9%[307]. - Gross profit for the three months ended March 31, 2025, was $715,851, a decrease of $259,713 or 26.6% compared to $975,564 in Q1 2024[273]. - The company reported a net loss of $1.1 million for the three months ended March 31, 2025, compared to a net income of $12,768 for the same period in 2024[296]. - The net loss for the nine months ended March 31, 2025, was $4,353,023, which is an increase of $4,122,730 compared to the prior year[327]. Revenue Breakdown - Revenue from cross-border freight solutions decreased by $1.2 million, or 25.9%, from $4.5 million in Q1 2024 to $3.3 million in Q1 2025, primarily due to a decline in volume from airfreight solutions[274]. - Revenue from cross-border ocean freight solutions fell by $0.8 million, or 39.6%, from $2.1 million in Q1 2024 to $1.3 million in Q1 2025, attributed to reduced container volumes and increased competition[275]. - Revenue from cross-border airfreight solutions decreased by $0.3 million, or 13.5%, from $2.3 million in Q1 2024 to $2.0 million in Q1 2025, driven by a decline in processed volume due to trade policy uncertainties[276]. - Revenue from Asia-based customers for cross-border freight solutions decreased by $1.0 million, or 25.4%, from $3.8 million in Q1 2024 to $2.8 million in Q1 2025[279]. - Revenue from U.S.-based customers for cross-border freight solutions decreased by $0.1 million, or 28.8%, from $0.6 million in Q1 2024 to $0.5 million in Q1 2025[279]. - Revenue from Asia-based customers for cross-border freight solutions increased by $0.3 million, or 3.6%, to $8.4 million, while revenue from U.S.-based customers decreased by $3.0 million, or 56.5%, to $2.4 million[303][304]. Operational Developments - As of March 31, 2025, the company had fulfilled over 51,500 cross-border supply chain solution orders with an aggregate assessed value of $1.0 billion[250]. - The company has established collaborations with almost all major global ocean and air carriers, forwarding 34,900 TEU of container loads and 63,300 tons of air cargo as of March 31, 2025[248]. - The company operates three regional warehousing and distribution centers with a total area of approximately 142,484 square feet and a daily floor load capacity of up to 3,000 cubic meters[249]. - The company has cooperated with over 200 domestic ground transportation carriers to enhance its service offerings[248]. - The company acquired 100% equity interest in Hupan Pharmaceutical, expanding its business segment into pharmaceutical distribution and supply chain services[251]. - The company established a new revenue stream in December 2024, generating $0.5 million from pharmaceutical product distribution in Q1 2025, with no revenue from this segment in the prior year[277]. Cost and Expenses - Selling expenses increased to $0.1 million for the three months ended March 31, 2025, compared to nil for the same period in 2024, driven by salaries for the new pharmaceutical distribution service[287]. - General and administrative expenses rose by $0.7 million, or 74.6%, from $1.0 million for the three months ended March 31, 2024, to $1.7 million for the same period in 2025[288]. - General and administrative expenses increased by $2.6 million, or 93.7%, to $5.4 million, representing 47.3% of total revenues for the nine months ended March 31, 2025[311]. - Interest expenses increased by $76,866, or 96.8%, to $156,266 for the nine months ended March 31, 2025, primarily due to late credit card payments and convertible note interest[316]. Future Outlook - The company aims to expand its customer base and improve service quality to achieve sustainable business growth[253]. - The impact of COVID-19 and recent U.S. tariff policies may adversely affect the company's operations and financial condition in the future[258][260]. - The company anticipates further revenue declines in the next quarter due to competitive pressures and new tariffs affecting cross-border trade[278]. - The company plans to sublease one of its warehouses in Chicago in the next fiscal quarter to mitigate costs and improve gross profit margin[283]. - The company expects capital expenditures to increase in the future as the business continues to develop and expand[331]. Cash Flow and Financial Position - Net cash used in operating activities for the nine months ended March 31, 2025, was $(2,171,304), a significant increase compared to $161,644 for the same period in 2024[325][326]. - Net cash used in investing activities was $1,227,150 for the nine months ended March 31, 2025, primarily due to a cash payment of $552,721 for intangible assets through the acquisition of Hupan Pharmaceutical[328]. - Net cash provided by financing activities was $4,782,547 for the nine months ended March 31, 2025, compared to a net cash used of $67,964 in the same period of the prior year[329]. - Capital expenditures amounted to $337,954 for the nine months ended March 31, 2025, compared to $0 for the same period in 2024[330]. - As of March 31, 2025, total stockholders' equity was $0.8 million, with a current ratio of 0.73:1 and negative working capital of $1.7 million[321]. - As of March 31, 2025, total contractual obligations amounted to $6,730,831, with $4,135,777 due within one year[332]. - The company had a cash increase of $1,375,707 for the nine months ended March 31, 2025, compared to an increase of $18,097 in the same period of 2024[324]. - The company had a loan of $561,901 to a third party during the nine months ended March 31, 2025[328]. - There were no off-balance sheet arrangements that could materially affect the company's financial condition as of March 31, 2025[333].
Lakeside Holding Limited(LSH) - 2025 Q3 - Quarterly Report