Revenue and Profitability - For the three months ended September 30, 2025, revenues amounted to $6.1 million, a 48.8% increase from $4.1 million in the same period of 2024[270]. - Gross profit for the same period was $1.1 million, compared to $0.5 million in 2024, reflecting a significant improvement in profitability[270]. - Total revenue increased by $2.0 million, or 49.5%, from $4.1 million in Q3 2024 to $6.1 million in Q3 2025[294]. - Revenue from cross-border freight solutions rose by $0.7 million, or 16.7%, from $4.1 million in Q3 2024 to $4.8 million in Q3 2025, driven mainly by cross-border airfreight solutions[297]. - Revenue from cross-border ocean freight solutions decreased by $0.4 million, or 21.9%, from $1.8 million in Q3 2024 to $1.4 million in Q3 2025, due to a drop in processed volume from 1,430 TEU to 1,331 TEU[298]. - Revenue from cross-border airfreight solutions increased by $1.1 million, or 48.2%, from $2.2 million in Q3 2024 to $3.3 million in Q3 2025, despite a decrease in volume from approximately 7,273 tons to 5,776 tons[299]. - Revenue from Asia-based customers for cross-border freight solutions increased by $1.2 million, or 43.0%, from $2.8 million in Q3 2024 to $4.0 million in Q3 2025[301]. - Revenue from U.S.-based customers for cross-border freight solutions decreased by $0.5 million, or 41.4%, from $1.2 million in Q3 2024 to $0.7 million in Q3 2025[303]. - Total gross profit increased by $586.2 million, or 112.2%, from $522.5 million in Q3 2024 to $1.1 million in Q3 2025[296]. Operating Expenses and Losses - Total operating expenses rose by $530.3 million, or 28.7%, from $1.9 million in Q3 2024 to $2.4 million in Q3 2025[294]. - Net loss for Q3 2025 was $1.4 million, compared to a net loss of $1.3 million in Q3 2024, reflecting a slight increase in loss by $21,809[294]. - Selling expenses amounted to $0.2 million for the three months ended September 30, 2025, driven by salaries, software, and advertising expenses related to the new pharmaceutical distribution service[309]. - General and administrative expenses increased by $0.3 million, or 14.7%, from $1.8 million for the three months ended September 30, 2024, to $2.1 million for the same period in 2025[310]. - Interest expenses increased by $168,331, or 598.8%, from $28,110 for the three months ended September 30, 2024, to $196,441 for the same period in 2025[313]. Cash Flow and Financial Position - Net cash used in operating activities was $4,016,518 for the three months ended September 30, 2025, compared to $1,402,784 in the same period of 2024[322]. - Cash balance as of September 30, 2025, was $4.5 million, with current assets of $15.0 million and current liabilities of $9.8 million, resulting in a current ratio of 1.5[319]. - Net cash used in investing activities was $108,800 for the three months ended September 30, 2025, primarily due to an additional loan to a third party[326]. - Net cash provided by financing activities decreased to $3,672,316 for the three months ended September 30, 2025, from $4,044,402 in the same period of the prior year, primarily due to a smaller scale of financing activities[327]. - Capital expenditures were nil for the three months ended September 30, 2025, compared to $38,279 for the same period in 2024[328]. - The company expects capital expenditures to increase in the future as the business develops and plans to fund these expenditures with existing cash, loan proceeds, and private placements[329]. Business Operations and Market Environment - As of September 30, 2025, the company had fulfilled over 58,500 cross-border supply chain solution orders with an aggregate assessed value of $1.0 billion[269]. - The company has established collaborations with almost all major global ocean and air carriers, forwarding 37,300 TEU of container loads and 75,100 tons of air cargo as of September 30, 2025[267]. - The introduction of a new revenue stream from the distribution of pharmaceutical and medical products began in fiscal year 2025, creating opportunities but also exposing the company to additional risks[272]. - The U.S. has permanently eliminated the $800 de minimis threshold for duty-free shipments, increasing customs processing complexity and potentially reducing low-value parcel volumes[284]. - Recent U.S. tariff policies have created a challenging trade environment, significantly disrupting U.S.-China commerce and increasing operational complexities[282]. - The company aims to expand its customer base and improve service quality to achieve sustainable business growth, having served over 400 customers as of September 30, 2025[271]. - The company plans to continue monitoring the impact of COVID-19 and adapt its business operations as necessary to maintain service levels and profitability[281]. Accounting and Financial Reporting - The company prepares its financial statements in conformity with U.S. GAAP, which requires significant judgments and estimates that could materially affect reported amounts[330]. - Critical accounting estimates may have a material impact on the presentation of financial condition and results of operations, particularly those requiring subjective judgments[331]. - Common stock warrants are classified as either equity or liability instruments based on specific terms and assessments, with equity-classified warrants estimated using the Black-Scholes option-pricing model[332]. - The fair value of equity-classified warrants is determined at issuance, reflecting assumptions about market conditions and the company's stock[332]. - The company periodically reviews new accounting standards and their applicability to its financial statements[334].
Lakeside Holding Limited(LSH) - 2026 Q1 - Quarterly Report