Planet Green (PLAG) - 2025 Q1 - Quarterly Report

PART I - FINANCIAL INFORMATION Financial Statements This section presents Planet Green Holdings Corp.'s unaudited condensed consolidated financial statements for Q1 2025 and 2024, revealing a net loss, working capital deficit, and going concern doubt Condensed Consolidated Balance Sheets As of March 31, 2025, total assets increased to $26.12 million, liabilities rose to $15.16 million, and stockholders' equity decreased to $10.95 million, resulting in a $6.69 million working capital deficit Condensed Consolidated Balance Sheet Highlights (Unaudited) | Balance Sheet Items | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Assets | $26,117,101 | $25,416,978 | | Total Current Assets | $8,060,562 | $7,191,366 | | Total Non-current Assets | $18,056,539 | $18,225,612 | | Total Liabilities | $15,162,421 | $13,723,116 | | Total Current Liabilities | $14,749,010 | $13,312,118 | | Total Stockholders' Equity | $10,954,680 | $11,693,862 | | Accumulated Deficit | $(148,850,555) | $(148,053,653) | - The company reported a working capital deficit of $6,688,448 as of March 31, 2025[37] Unaudited Condensed Consolidated Statements of Operations and Comprehensive Loss Q1 2025 net loss improved to $796,902 from $1,080,904 in Q1 2024, despite a 44% revenue decrease and 84% gross profit decline, with continuing operations loss widening Q1 2025 vs Q1 2024 Statement of Operations (Unaudited) | Metric | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net Revenues | $840,333 | $1,504,127 | | Gross Profit | $54,853 | $352,913 | | Operating Loss | $(716,828) | $(581,655) | | Loss from Continuing Operations | $(739,993) | $(593,123) | | Net Loss | $(796,902) | $(1,080,904) | | Basic and Diluted EPS (Continuing) | $(0.10) | $(0.08) | Unaudited Condensed Consolidated Statements of Cash Flows Q1 2025 saw $346,698 net cash used in operations, a reversal from Q1 2024's $430,474 provided, while financing activities provided $1.30 million, increasing cash to $1.15 million Q1 2025 vs Q1 2024 Cash Flow Summary (Unaudited) | Cash Flow Activity | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net Cash (Used in) Provided by Operating Activities | $(346,698) | $430,474 | | Net Cash Used in Investing Activities | $(2,456) | $(4,758) | | Net Cash Provided by (Used in) Financing Activities | $1,296,242 | $(317,740) | | Cash and Restricted Cash at End of Period | $1,146,802 | $349,015 | Notes to Unaudited Condensed Consolidated Financial Statements Notes detail accounting policies, a 'Going Concern' warning due to losses and deficit, significant related-party transactions, customer/supplier concentrations, and the April 2025 decision to discontinue Shandong Yunchu operations - The company incurred a net loss from continuing operations of $739,993 for Q1 2025, an accumulated deficit of $148.9 million, and a working capital deficit of $6.7 million, raising substantial doubt about its going concern ability[37] - On April 30, 2025, the Board of Directors resolved to discontinue the operation of the subsidiary Shandong Yunchu[112] - As of March 31, 2025, amounts due from related parties totaled $1.94 million, and amounts due to related parties totaled $4.57 million, primarily for working capital, non-interest bearing, and unsecured[89][90][91] - In Q1 2025, two customers accounted for 25% and 10% of revenues, while four suppliers accounted for 38%, 25%, 14%, and 10% of purchases, indicating significant concentration risk[102][104] Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A) Management discusses Q1 2025 financial results, highlighting a 44% net revenue decrease due to stagnant sales and advertising decline, reiterating 'going concern' risk from recurring losses and working capital deficit Q1 2025 vs Q1 2024 Operational Results Summary (in thousands) | Metric | Q1 2025 | Q1 2024 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Net revenues | $840 | $1,504 | $(664) | (44)% | | Gross profit | $55 | $353 | $(298) | (84)% | | Operating loss | $(716) | $(581) | $(135) | 23% | | Net loss | $(797) | $(1,080) | $283 | (26)% | - The Q1 2025 revenue decrease was attributed to stagnant sales of high-grade synthetic fuel products (down to $0.78 million from $1.12 million) and a decline in advertising service revenue from $0.38 million to zero[115] - The company faces substantial doubt about its going concern ability due to a net loss from continuing operations of $739,993, an accumulated deficit of $148.9 million, and a working capital deficit of $6.7 million as of March 31, 2025[124] - Net cash used in operating activities was $0.35 million in Q1 2025, a reversal from $0.43 million provided in Q1 2024, primarily due to changes in net operating assets and liabilities[128] Quantitative and Qualitative Disclosures About Market Risk This section is marked as not applicable by the company - No quantitative and qualitative disclosures about market risk were provided, as the item was marked 'Not applicable'[152] Controls and Procedures Management concluded that disclosure controls and procedures were not effective as of March 31, 2025, though financial statements are deemed fairly presented, with no material changes to internal controls during the quarter - The CEO and CFO concluded that the company's disclosure controls and procedures were not effective as of March 31, 2025[153] - No material changes were made to the company's internal control over financial reporting during the most recently completed fiscal quarter[156] PART II - OTHER INFORMATION Legal Proceedings The company is involved in several legal proceedings, including a former employee's breach of contract lawsuit and debt-related lawsuits against subsidiaries Shandong Yunchu and Xianning Bozhuang - A former employee's breach of contract lawsuit seeking $609,145 is ongoing after an amended complaint was filed[159] - Subsidiary Shandong Yunchu is involved in a lawsuit over an alleged debt transfer agreement for RMB 7.01 million ($960,686), which it contests[160] - A court ordered subsidiary Xianning Bozhuang to pay RMB 867,326 ($118,823) plus interest for outstanding construction fees[161] - A court ordered subsidiary Shandong Yunchu to pay RMB 2.82 million ($385,988) under an agency import contract, with Xianning Jiayi held jointly liable after its appeal was denied[162] Risk Factors No material changes to the risk factors previously disclosed in the Form S-3/A registration statement filed on April 18, 2023, have occurred - As of this report's date, no material changes to the risk factors disclosed in the Company's Form S-3/A registration statement filed on April 18, 2023, have occurred[163] Unregistered Sales of Equity Securities and Use of Proceeds This section is marked as not applicable for the reporting period - This item is not applicable for the reporting period[164] Defaults Upon Senior Securities This section is marked as not applicable for the reporting period - This item is not applicable for the reporting period[165] Mine Safety Disclosures This section is marked as not applicable for the reporting period - This item is not applicable for the reporting period[166] Other Information This section discloses the Board of Directors' resolution on April 30, 2025, to discontinue the operations of subsidiary Shandong Yunchu - On April 30, 2025, the Board of Directors resolved to discontinue the operation of the subsidiary Shandong Yunchu[168] Exhibits This section lists exhibits filed with the Form 10-Q report, including CEO and CFO certifications and Inline XBRL data files - Exhibits filed with the report include CEO and CFO certifications under Sarbanes-Oxley Sections 302 and 906, and various Inline XBRL documents[170]