Financial Performance - Revenue for the three months ended September 30, 2025, was $7,905,065, representing a 84.5% increase from $4,291,966 in the same period of 2024[16] - Gross profit for the nine months ended September 30, 2025, was $12,563,704, up 262.5% from $3,467,319 in the prior year[16] - Net income for the three months ended September 30, 2025, was $3,344,966, compared to $1,567,037 for the same period in 2024, marking a 113.0% increase[16] - Operating income for the nine months ended September 30, 2025, was $9,257,712, compared to $2,672,469 in the same period of 2024, reflecting a 246.5% increase[16] - For the nine months ended September 30, 2025, net income increased to $7,040,691 compared to $1,924,250 for the same period in 2024, representing a growth of approximately 266%[24] - For the three months ended September 30, 2025, total revenue was $7,905,065, a significant increase from $4,291,966 for the same period in 2024, representing an 84.5% year-over-year growth[113] - For the nine months ended September 30, 2025, total revenue reached $19,884,127, up from $5,254,161 in the same period of 2024, representing a 278.5% increase[114] - The company reported a net income of $7,040,691 for the nine months ended September 30, 2025, compared to $1,924,250 for the same period in 2024, indicating a year-over-year increase of 265.5%[114] Assets and Liabilities - Total current assets increased to $46,180,067 as of September 30, 2025, from $44,017,708 as of December 31, 2024[15] - Total liabilities decreased to $38,485,803 as of September 30, 2025, from $39,942,149 as of December 31, 2024[15] - Retained earnings rose significantly to $11,036,694 as of September 30, 2025, compared to $3,996,003 at the end of 2024[18] - Cash and cash equivalents decreased to $37,207,274 as of September 30, 2025, from $41,432,852 as of December 31, 2024[15] - Cash and cash equivalents as of September 30, 2025 totaled $37.2 million, with a net working capital surplus of $8.0 million[133] Shareholder Information - The company reported a basic and diluted earnings per share of $0.07 for the three months ended September 30, 2025, up from $0.04 in the same period of 2024[16] - As of September 30, 2025, the Company had outstanding warrants totaling 6,900,000 public warrants and 9,357,000 private warrants[66] - The Business Combination resulted in the issuance of 52,235,000 shares of common stock as of September 30, 2025, following the cancellation of Legacy CFI shares and the redemption of Iron Horse shares[78] - The company issued 1,000,000 shares of restricted common stock valued at $4,090,000 for management advisory services, to be amortized over a six-month term starting October 1, 2025[95] - As of September 30, 2025, the company has 52,235,000 shares of common stock issued and outstanding, an increase from 47,689,349 shares as of December 31, 2024, representing an increase of approximately 9.5%[93] Cash Flow and Investments - Cash flows from operating activities showed a net cash used of $5,707,674 for the nine months ended September 30, 2025, compared to a net cash provided of $21,852,126 in 2024[24] - The company has made significant investments in research and development, with costs amounting to $96,188 for the nine months ended September 30, 2025, compared to none in the prior year[16] - The Company invested substantially all assets held in the Trust Account in U.S. Treasury Bills, amounting to $2,414,229 as of September 30, 2025[37] - The company has marketable securities held in a trust account valued at $2,414,229 as of September 30, 2025[101] Operational Highlights - The company is focused on distributing natural, grain-based health foods, catering to the rising demand for high-quality nutritional options[25] - The company operates in two segments: wholesale distribution and live-stream sales, with performance assessed based on operating income[112] - The wholesale distribution segment generated $7,791,395 in revenue, while live-stream sales contributed $113,670, indicating that wholesale distribution accounted for approximately 98.6% of total revenue[113] - Key products include Cordyceps Peptide Selenium powder and Baofei Granule Extract plant-based drink, catering to the rising demand for health foods[121] Tax and Regulatory Matters - The effective tax rate for the three months ended September 30, 2025, was 29.1%, compared to 32.1% for the same period in 2024[111] - The PRC withholding tax rate on dividends payable by PRC companies to non-PRC-resident enterprises is 10%, which may be reduced to 5% under certain conditions[149] - If classified as a PRC resident enterprise, the company would face a uniform 25% enterprise income tax rate on worldwide income, significantly reducing net income[150] - PRC subsidiaries can only pay dividends from accumulated profits, and must set aside at least 10% of after-tax profits for statutory reserves until they reach 50% of registered capital[154] - The company has received a legal opinion confirming compliance with the China Securities Regulatory Commission (CSRC) regarding its U.S. listing[116] Business Combination and Corporate Actions - The company completed a business combination on September 29, 2025, changing its name to CN Healthy Food Tech Group Corp and began trading under the ticker symbol UCFI[27] - Transaction costs related to the Business Combination totaled approximately $5,907,000, with $4,376,000 of these costs still outstanding as of September 30, 2025[79] - The company completed an initial public offering on December 29, 2023, with 6,900,000 public warrants outstanding, each exercisable at $11.50 per share[96][97] Risks and Challenges - The company's securities have been suspended from trading on Nasdaq since October 1, 2025, which could materially affect the value or liquidity of its securities[188] - If the trading halt continues or if the securities are delisted, it may lead to significant adverse consequences for investors, including reduced liquidity and increased regulatory scrutiny[189]
Iron Horse Acquisitions Corp.(IROHU) - 2025 Q3 - Quarterly Report