Kaixin Auto(US:KXIN)2024-10-10 20:00Financial Performance - Net revenue for the six months ended June 30, 2024, was $0, compared to $18,856,000 for the same period in 2023, indicating a significant drop in revenue[3] - Gross profit for the six months ended June 30, 2024, was $0, down from $188,000 in the prior year, reflecting a complete loss of revenue generation[3] - Net loss attributable to Kaixin's shareholders for the six months ended June 30, 2024, was $5,370,000, compared to a net loss of $4,481,000 for the same period in 2023, representing an increase in loss of approximately 19.8%[3] - For the six months ended June 30, 2024, total revenues were $0, a decrease from $18,856 in the same period of 2023, primarily due to a decline in new-car wholesales from $17,977 to $0[40] - For the six months ended June 30, 2024, KAG reported a net loss of $5,370,000, with a net loss per share of $(0.10)[107] Assets and Liabilities - Total assets decreased from $67,633,000 as of December 31, 2023, to $64,600,000 as of June 30, 2024, representing a decline of approximately 4.5%[2] - Total current liabilities decreased from $15,115,000 as of December 31, 2023, to $12,191,000 as of June 30, 2024, a reduction of about 19.3%[2] - Cash and cash equivalents decreased from $2,085,000 as of December 31, 2023, to $628,000 as of June 30, 2024, a decline of approximately 69.9%[2] - As of June 30, 2024, the Group had accumulated deficits of approximately $341,941, up from $336,571 as of December 31, 2023, raising concerns about its ability to continue as a going concern[22] - The Group's current liabilities amounted to approximately $12.2 million as of June 30, 2024, with major shareholders considering providing financial support to meet obligations[23] Equity and Shares - Total equity increased slightly from $49,017,000 as of December 31, 2023, to $49,242,000 as of June 30, 2024, reflecting a growth of approximately 0.5%[2] - The weighted average shares used in calculating net loss per share increased significantly from 15,465,700 in 2023 to 53,549,438 in 2024 due to share consolidation[3] - As of June 30, 2024, there were 59,195,101 ordinary shares outstanding, an increase from 49,806,556 shares as of December 31, 2023[82] - The Group issued 4,935,700 ordinary shares in the Reverse Acquisition, reflecting the equity structure post-acquisition[80] Expenses - Selling and marketing expenses increased to $838,000 for the six months ended June 30, 2024, compared to $257,000 in the same period of 2023, marking a rise of approximately 226.4%[3] - General and administrative expenses rose to $4,907,000 for the six months ended June 30, 2024, up from $3,990,000 in 2023, an increase of about 22.9%[3] - The company recorded share-based compensation expenses of $1,447, compared to $1,218 for the same period in 2023, representing an increase of approximately 18.8%[118] Cash Flow - The company experienced a net cash used in operating activities of $1,438,000 for the six months ended June 30, 2024, an improvement from $3,427,000 for the same period in 2023[7] - The Group's cash position was approximately $0.6 million as of June 30, 2024, alongside $1.4 million due from related parties, indicating liquidity challenges[23] - The company reported a decrease in cash flows from financing activities, with a net cash used of $665,000 in the previous period[7] Acquisitions and Subsidiaries - On August 22, 2023, the Group acquired 100% equity interest in Morning Star Auto Inc. for a share consideration of $20,250, issuing 6,666,667 ordinary shares post-consolidation[12] - The Group established two new subsidiaries in September 2023 and January 2024, both with 100% equity interest, expanding its operational footprint in the PRC[13] - Three additional subsidiaries were set up between February and March 2023, with the Group holding a 70% equity interest in each, enhancing its market presence[14] Legal and Regulatory - The Company does not believe that ongoing legal proceedings will have a material adverse impact on its financial position or results[119]