INLIF Limited(INLF) - 2025 Q2 - Quarterly Report

Revenue and Profitability - Revenue for the six months ended June 30, 2025, increased to $10,270,988, representing a 52.5% growth compared to $6,735,689 for the same period in 2024[6] - Gross profit for the same period was $1,797,909, slightly up from $1,713,985, indicating a gross margin improvement[6] - Net loss for the six months ended June 30, 2025, was $(1,975,420), compared to a net income of $390,081 in 2024, highlighting a significant decline in profitability[6] - The company reported a comprehensive loss of $(1,756,612) for the six months ended June 30, 2025, compared to a comprehensive income of $171,244 in 2024[6] - For the six months ended June 30, 2025, total revenue was $10,270,988, a 52.5% increase from $6,735,689 in the same period of 2024[56] - Revenue from sales of injection molding machine-dedicated manipulator arms and installation and warranty services was $4,373,031, up from $3,346,127, representing a 30.7% increase[56] - Revenue from sales of raw materials and scraps of manipulator arms increased significantly to $5,469,831 from $2,257,191, marking a 142.5% rise[56] - Revenue from sales of accessories of manipulator arms decreased to $386,603 from $1,045,007, a decline of 63.0%[56] - Revenue from installation services was $41,523, down from $87,364, a decrease of 52.5%[56] - The Company recognized no revenue on a net basis where it acted as an agent for the six months ended June 30, 2025 and 2024[51] Expenses and Cash Flow - Operating loss for the six months ended June 30, 2025, was $(2,067,293), compared to an operating income of $155,668 in 2024, reflecting increased operating expenses[6] - Employee benefits expenses increased to approximately $31,560 for the six months ended June 30, 2025, compared to $20,940 in 2024, reflecting a 50.6% increase[63] - Advertising costs for the six months ended June 30, 2025, were $52,203, down from $134,692 in 2024, a decrease of 61.2%[60] - Cash flows from operating activities showed a net cash used of $1,938,736 for the six months ended June 30, 2025, compared to a minimal cash used of $200 in the same period of 2024[155] Assets and Liabilities - Total current assets increased to $17,160,260 as of June 30, 2025, up from $13,251,374 as of December 31, 2024, primarily driven by higher accounts receivable[2] - Cash and cash equivalents decreased to $1,715,784 as of June 30, 2025, from $2,467,638 at the end of 2024, indicating cash flow challenges[2] - Total liabilities decreased to $7,103,387 as of June 30, 2025, from $8,201,258 as of December 31, 2024, indicating improved financial leverage[2] - Accounts receivable increased significantly to $7,141,688 as of June 30, 2025, compared to $3,840,120 as of December 31, 2024, reflecting an increase of 85.5%[89] - Total inventories decreased to $3,662,699 as of June 30, 2025, down 30.9% from $5,300,458 as of December 31, 2024[92] - Total accounts payable as of June 30, 2025, was $1,726,132, down from $3,132,613 as of December 31, 2024, indicating a reduction of approximately 44.5%[104] - Total short-term bank loans decreased slightly to $4,578,703 as of June 30, 2025, from $4,630,581 as of December 31, 2024, a decrease of about 1.1%[105] Equity and Shareholder Information - Shareholders' equity increased to $15,851,497 as of June 30, 2025, from $10,266,534 as of December 31, 2024, reflecting the impact of share issuance[9] - The Company completed its initial public offering on January 3, 2025, issuing 2,000,000 ordinary shares at a price of $4.00 per share[124] - As of June 30, 2025, the Company had a total of 15,900,000 issued and outstanding shares, with 12,500,000 being Class B Ordinary Shares[128] - The company did not declare any dividends for the periods presented, maintaining a focus on reinvestment[152] Investments and Financing Activities - The Company incurred $5,019,866 in net cash used in investing activities for the six months ended June 30, 2025, primarily due to loans to a third party[11] - The Company provided loans to a third party totaling $4,400,000 in January 2025, with an annual interest rate of 6.30%[93] - The Company issued ordinary shares, resulting in net cash provided by financing activities of $7,060,133 during the six months ended June 30, 2025[155] - Investment in subsidiaries increased to $15,744,331 as of June 30, 2025, up from $10,426,328 as of December 31, 2024, indicating a strategic focus on expanding subsidiary operations[153] Tax and Regulatory Information - The provision for income tax for the six months ended June 30, 2025, showed a total income tax benefit of $(1,703), compared to an expense of $17,823 for the same period in 2024[122] - The current income tax expense for the six months ended June 30, 2025, was $0, compared to $17,415 for the same period in 2024, indicating a significant reduction[122] - The total deferred tax assets increased to $6,991 as of June 30, 2025, from $5,169 as of December 31, 2024, an increase of approximately 35.2%[122] - The Company is required to allocate at least 10% of after-tax net income to statutory reserves until the reserve equals 50% of registered capital; as of June 30, 2025, the statutory reserve balance was $361,083[130] Corporate Structure and Changes - The Company was incorporated on January 4, 2023, in the Cayman Islands and owns 100% of Yunfei BVI, which was established on January 30, 2023[12] - Yunfei BVI owns 100% of Juli HK, incorporated on March 8, 2023, and Juli HK owns 100% of Fujian INLIF, established on April 21, 2023[13] - The Company has completed a reorganization, resulting in a structure where the five shareholders of Ewatt became the shareholders of the Company on September 6, 2023[17] Miscellaneous - The Company maintains inventories at the lower of cost or net realizable value, with allowances for obsolescence assessed based on expiration dates[32] - Property and equipment are stated at cost less accumulated depreciation, with estimated useful lives ranging from 3 to 30 years depending on the asset category[34] - The Company has two new buildings under construction for manufacturing purposes, which will be reclassified to property, plant, and equipment once completed[35] - The estimated useful life for land use rights is 50 years, with the current rental period extending to November 15, 2069[36] - Intangible assets, primarily purchased patents, are amortized on a straight-line basis over an estimated useful life of ten years[37] - The Company has pledged land-use rights valued at $2,146,880 as of June 30, 2025, for obtaining bank loans[99] - The Company experienced a foreign currency translation adjustment gain of $218,808 for the six months ended June 30, 2025[155]