Planet Green (US:PLAG)2025-11-14 15:57Financial Performance - For the three months ended September 30, 2025, net revenues were $771,636, a decrease of 47% from $1,460,943 in the same period of 2024[18]. - Gross profit for the three months ended September 30, 2025, was $28,293, down from $95,927 in the prior year, reflecting a gross margin of approximately 3.7%[18]. - Operating loss for the three months ended September 30, 2025, was $(3,356,560), compared to $(405,239) for the same period in 2024, indicating a significant increase in operating losses[18]. - The net loss for the nine months ended September 30, 2025, was $(13,718,776), compared to $(3,986,907) for the same period in 2024, reflecting a substantial increase in losses[18]. - For the nine months ended September 30, 2025, net revenues decreased by approximately $1.24 million, or 33%, to $2.52 million from $3.75 million in the same period of 2024[126]. - The net loss for the nine months ended September 30, 2025, increased by $9.73 million, to $13.72 million from $3.99 million in the same period of 2024[131]. - Loss per share from continuing operations for the nine months ended September 30, 2025, was $(0.65), compared to $(0.22) for the same period in 2024[105]. Cash Flow and Liquidity - Cash and cash equivalents decreased to $63,451 as of September 30, 2025, from $180,039 as of December 31, 2024, a decline of approximately 64.8%[16]. - The company reported a net cash used in operating activities of $1,329,176 for the nine months ended September 30, 2025, compared to net cash provided of $434,850 in the prior year[40]. - As of September 30, 2025, the company had cash and restricted cash of $63.754 million, a decrease from $180.335 million as of December 31, 2024[133]. - Net cash used in investing activities was $2.474 million for the nine months ended September 30, 2025, down from $6.169 million in 2024[139]. - The company reported net cash provided by financing activities of $1.202 million for the nine months ended September 30, 2025, compared to net cash used of $0.412 million in 2024[140]. Assets and Liabilities - Total current assets decreased to $6,908,489 as of September 30, 2025, from $14,892,373 as of December 31, 2024, representing a decline of approximately 53.6%[16]. - Total liabilities increased to $12,867,197 as of September 30, 2025, compared to $13,723,116 as of December 31, 2024, indicating a slight decrease of about 6.3%[16]. - The accumulated deficit increased to $(161,772,429) as of September 30, 2025, from $(148,053,653) as of December 31, 2024, indicating a worsening financial position[19]. - The company has a working capital deficit of $5.537 million as of September 30, 2025[134]. - The debt to assets ratio increased to 104.7% as of September 30, 2025, from 54.0% as of December 31, 2024[133]. Operational Changes - The company reported a loss from discontinuing operations of $(8,726,579) for the three months ended September 30, 2025, compared to $(856,169) in the same period of 2024, indicating a significant increase in losses from discontinued operations[18]. - The company incurred a net loss from continuing operations of $4,698,088 for the nine months ended September 30, 2025, compared to a net loss of $1,602,680 for the same period in 2024, indicating a significant increase in losses[40]. - The company has discontinued operations of Shandong Yunchu as of April 30, 2025, and disposed of its 100% equity interest in Promising Prospect HK Limited on September 1, 2025, resulting in a gain from disposal of $935,958[38]. Expenses - Research and development expenses for the nine months ended September 30, 2025, were $53,888, compared to $43,365 in the same period of 2024, reflecting an increase of approximately 24%[18]. - General and administrative expenses for the nine months ended September 30, 2025, increased by $2.50 million, or 119%, to $4.59 million compared to $2.09 million in the same period of 2024[130]. - Selling and marketing expenses increased by approximately $0.01 million, or 144%, to $0.02 million for the nine months ended September 30, 2025, from approximately $9,000 in the same period of 2024[129]. - Interest paid during the nine months ended September 30, 2025, was $108,137, compared to $46,951 in the same period of 2024[40]. - Interest expense for the nine months ended September 30, 2025, was $108,137, compared to $46,952 for the same period in 2024, an increase of 130.5%[101]. Investments and Financing - The company received $4,057,700 from long-term loans during the nine months ended September 30, 2025, compared to $2,082,333 in the same period of 2024[40]. - The company plans to continue relying on private placements or certain related parties for funding to support operations and investments[41]. - The company issued an aggregate of 1,450,000 shares of common stock under the 2025 Plan for a fair value of $2.80 million[123]. Accounting and Compliance - The Company recognizes revenue when control of the promised goods or services is transferred to customers, following ASC 606 "Revenue Recognition" standards[60]. - The Company conducts an annual assessment of goodwill for impairment, recognizing a charge if the carrying value exceeds fair value[54]. - Statutory reserves require the Company to appropriate 10% of its profit annually until the reserve reaches a maximum of 50% of the registered capital in PRC[57]. - The Company evaluates the impact of recent accounting pronouncements on its consolidated financial statements, including ASU 2024-04 and ASU 2025-01[78][79]. - Disclosure controls and procedures were deemed not effective as of September 30, 2025[151].