Financial Performance - Revenue for the six months ended June 30, 2025, was $43,555,675, a decrease of 13.5% compared to $50,273,589 in the same period of 2024[6] - Gross profit for the six months ended June 30, 2025, was $546,696, down 52.0% from $1,139,700 in 2024[6] - Net income for the six months ended June 30, 2025, was $1,209,506, compared to $320,444 in 2024, representing a significant increase of 276.5%[6] - The profit before income taxes for the six months ended June 30, 2025, was $1,209,506, compared to $418,791 in 2024, representing a significant increase of 188.5%[87] - The income tax expense for the six months ended June 30, 2025, was recorded as $0, while it was $98,347 in 2024, indicating a reduction in tax liability[87] - The effective tax rate for the six months ended June 30, 2025, was impacted by a valuation allowance of $628,301 against deferred tax assets[87] Assets and Liabilities - Total current assets as of June 30, 2025, were $12,733,374, slightly up from $12,539,006 as of December 31, 2024[4] - Total liabilities decreased to $4,330,416 as of June 30, 2025, from $11,961,785 as of December 31, 2024, indicating a reduction of 63.8%[4] - Shareholders' equity increased to $8,421,458 as of June 30, 2025, from $614,144 as of December 31, 2024, reflecting a growth of 1,272.5%[4] - As of June 30, 2025, accounts receivable amounted to $13,460,734, with an allowance for expected credit loss of $5,740,368, resulting in a net accounts receivable of $7,720,366[74] - The balance of allowance for expected credit loss was nil as of June 30, 2025, down from $5,740,368 as of December 31, 2024[64] Cash Flow - Cash at the end of the period was $2,687,406, down from $4,793,555 at the beginning of the period, a decrease of 43.9%[11] - As of June 30, 2025, the Company had cash and cash equivalents of $2,687,404 deposited with financial institutions in Hong Kong, with no significant credit risk identified[61] - The Company believes that no significant credit risk exists as its financial institutions have high credit quality and it has not incurred any losses related to deposits[61] Revenue Recognition - Revenue from the sales and distribution of marine fuel is recognized at the point of delivery, with payment terms generally set at 30 days post-delivery[42] - The Company adopted ASC 606 for revenue recognition, ensuring that revenue reflects the transfer of promised goods or services to customers[41] - For the six months ended June 30, 2025, the total revenue was $43,555,675, a decrease of 13.3% compared to $50,273,589 in the same period of 2024[111] - The revenue from Hong Kong for the six months ended June 30, 2025, was $41,130,233, down from $47,565,305 in 2024, reflecting a decline of 13.1%[111] Shareholder Information - The company issued 1,000,000 Class A Ordinary Shares under the 2024 equity incentive plan, raising $4,815,100[9] - The Company executed a share split at a ratio of 11,250,000 for one on July 11, 2024, increasing the number of shares issued and outstanding from 1 to 11,250,000[54] - As of June 30, 2025, the total number of issued and outstanding shares was 37,487,500 following the completion of the offering[97] - The Company issued a total of 23,800,000 Ordinary Shares at $0.30 per share in an offering that closed on April 11, 2025, raising gross proceeds of $7,140,000[96] Operational Insights - The Company operates through its wholly-owned subsidiaries, Petrolink Hong Kong and Petrolink Singapore, providing marine fuel logistics services primarily in the Asia Pacific market[17] - A reorganization was completed on February 21, 2024, resulting in the Company becoming the holding company of Petrolink Hong Kong, with all ordinary shares transferred to the Company[18] - The Company has recognized ROU assets and operating lease liabilities of $70,378 during the six months ended June 30, 2024[40] - Operating lease right-of-use assets were recorded at $18,500 as of June 30, 2025, with total operating lease expenses of $19,154 for the six months ended June 30, 2025[78] - The Company has a weighted average remaining lease term of 0.54 years and a weighted average discount rate of 5.24% as of June 30, 2025[78] Customer Concentration - For the six months ended June 30, 2025, two customers accounted for approximately 27.5% and 11.7% of the Company's total revenue, compared to 23.3% and 13.1% for the same period in 2024[66] - The Company reported no sales of marine fuel to Tri Co Trading Co., Limited for the six months ended June 30, 2025, compared to $3,731,638 in the same period of 2023[104] Taxation - The Group had a net operating loss carry-forward of $3,761,645 as of June 30, 2025, which can offset future taxable income indefinitely[86] - The Company is not currently under examination by an income tax authority, and it does not expect any material changes regarding unrecognized tax positions over the next 12 months[52] - The Company does not anticipate any significant increases or decreases in unrecognized tax benefits in the next 12 months from June 30, 2025[88]
Ptl Limited(PTLE) - 2025 Q2 - Quarterly Report