Financial Performance - Total revenues for the six months ended June 30, 2025, were $67,507, a decrease of 67.9% compared to $210,488 for the same period in 2024[10] - Gross profit for the six months ended June 30, 2025, was $53,348, down from $181,611 in 2024, reflecting a gross margin decline[10] - Net loss for the six months ended June 30, 2025, was $2,037,496, compared to a net loss of $285,132 for the same period in 2024, indicating a significant increase in losses[10] - Operating expenses for the six months ended June 30, 2025, were $2,133,903, significantly higher than $495,889 in 2024, primarily due to increased general and administrative costs[10] - The company reported a comprehensive loss of $2,038,842 for the six months ended June 30, 2025, compared to a comprehensive loss of $290,171 for the same period in 2024, indicating an increase of over 600%[90] - Net cash used in operating activities for the six months ended June 30, 2025, was $2,715,600, a significant increase from $2,100 in the same period of 2024[92] Assets and Equity - Total assets decreased from $6,723,254 as of December 31, 2024, to $5,114,689 as of June 30, 2025, a decline of approximately 24%[6] - Total shareholders' equity fell from $6,184,703 as of January 1, 2025, to $4,732,094 as of June 30, 2025, representing a decrease of about 23.5%[14] - As of June 30, 2025, the company had net assets restricted in the aggregate of approximately $709,286, which included additional paid-in capital and statutory reserves[76] Cash and Liquidity - Cash and cash equivalents decreased from $6,159,823 as of December 31, 2024, to $1,809,154 as of June 30, 2025, indicating liquidity challenges[6] - Cash flow from financing activities remained minimal, with only a capital contribution of $72 reported for the six months ended June 30, 2024[92] - Cash paid for interest expenses was $5,358 for the six months ended June 30, 2025, indicating financing costs incurred during the period[16] Shareholder Information - The weighted average number of ordinary shares used in the per share calculation increased from 12,000,000 in 2024 to 15,008,011 in 2025[10] - The company issued 2,800,000 Class A ordinary shares under its 2025 Equity Incentive Plan on May 12, 2025, with a recognized share-based compensation expense of $586,233 for the six months ended June 30, 2025[74] - The company did not pay any dividends to shareholders for the periods presented, and its investment in subsidiaries is recorded under the equity method[86] Operational Highlights - The company holds a 60% equity interest in Mili (Jiangsu) Medical Technology Co., Ltd, established on May 28, 2025, expanding its healthcare solutions portfolio[22] - Major customers accounted for approximately 54% and 32% of total revenues for the six months ended June 30, 2025, compared to a more diversified customer base in the previous year[54] - The company operates as one reportable segment, with all revenues generated in China for the six months ended June 30, 2024, and 2025[48] Currency and Foreign Exchange - The average exchange rate for the USD to RMB was $1 = RMB 7.2526 for the six months ended June 30, 2025, compared to $1 = RMB 7.2150 for the same period in 2024[45] - The company reported a foreign currency translation adjustment loss of $1,346 for the six months ended June 30, 2025[10] Investment and Capital Contributions - The company has made a capital contribution of $586,233 during the six months ended June 30, 2025, reflecting ongoing investment in operations[14] - The company made a significant investment in short-term investments amounting to $1,400,000 during the six months ended June 30, 2025[92] Credit Losses and Provisions - The company reported a provision for current expected credit losses of $65,329 for the six months ended June 30, 2025, compared to $11,761 for the same period in 2024[16] - The company recorded an equity loss of subsidiary amounting to $239,349 for the six months ended June 30, 2025, compared to $282,732 for the same period in 2024, showing a decrease of approximately 15%[90]
Pheton Holdings Ltd(PTHL) - 2025 Q2 - Quarterly Report