Paranovus Entertainment Technology .(PAVS) - 2025 Q2 - Quarterly Report

Financial Performance - Revenues for the six months ended September 30, 2025, reached $12,413,039, a significant increase from $68,454 in the same period of 2024, marking a growth of over 18,000%[7] - Gross profit for the same period was $2,479,594, compared to $9,276 in 2024, indicating a substantial improvement in profitability[7] - Operating loss narrowed to $627,590 for the six months ended September 30, 2025, compared to a loss of $1,156,737 in 2024, reflecting a reduction of approximately 45.5%[7] - Net loss attributable to Paranovus Entertainment Technology Limited was $680,952 for the six months ended September 30, 2025, down from a loss of $1,765,866 in 2024, a decrease of about 61.4%[7] - The company incurred a net loss of $562,411 during the six-month period ended September 30, 2025, with a cash outflow from operating activities of $529,087[22] Assets and Liabilities - Total assets increased to $37,293,179 as of September 30, 2025, up from $35,564,173 as of March 31, 2025, representing a growth of approximately 4.86%[4] - Cash and cash equivalents increased to $412,047 as of September 30, 2025, compared to $261,355 as of March 31, 2025, representing a growth of approximately 57.6%[4] - Total current liabilities rose to $8,501,701 as of September 30, 2025, up from $6,403,485 as of March 31, 2025, an increase of about 32.8%[4] - Total shareholders' equity decreased to $28,438,482 as of September 30, 2025, from $29,002,597 as of March 31, 2025, a decline of approximately 1.9%[6] - The accumulated deficit amounted to $70,922,567 as of September 30, 2025, raising substantial doubt about the company's ability to continue as a going concern[22] Shareholder Information - The weighted average number of ordinary shares outstanding increased to 84,512,945 for the six months ended September 30, 2025, compared to 25,125,382 in 2024, indicating a significant increase in share issuance[7] - Share-based compensation for the six months ended September 30, 2025, amounted to $20,833, compared to no share-based compensation in the same period of 2024[11] - The Company issued 12,500,000 Class A ordinary shares for total consideration of $10,000,000 on January 20, 2022, with net proceeds of $10,000,000 after deducting commissions and offering expenses[117] - The Company issued 19,200,000 Class A ordinary shares to non-US investors for total net proceeds of $6.72 million[119] - The Company completed a share consolidation at a ratio of one-for-twenty, reducing authorized shares from 70,000,000 to 3,500,000 Class A ordinary shares[121] Cash Flow and Investments - The company recorded net cash used in operating activities from continuing operations of $159,337, compared to $966,366 in the previous period[1] - Net cash used in investing activities from continuing operations was $291,000, reflecting a significant decrease from $27,156,977 in the previous period[1] - The company issued ordinary shares for cash amounting to $27,000,000 during the financing activities[1] - Cash and cash equivalents at the end of the year were $412,047, compared to $105,049 at the end of the previous year[31] Impairments and Valuations - As of September 30, 2025, the Company recorded an impairment of intangible assets amounting to $1,108,333[46] - The Company evaluates goodwill for impairment quarterly and performed an annual assessment as of March 31, 2025, indicating a likelihood of impairment[40] - The company recognized an impairment of intangible assets amounting to $1,108,333 as of September 30, 2025, compared to nil for the same period in 2024[91] - Goodwill, net, remained at $17,500,601 as of September 30, 2025, with an impairment of $3,376,186 recognized for both periods[94] Revenue Recognition - Revenue is generated from healthcare products, automobiles, online store sales, and TikTok-related e-commerce services[54] - The Company recognizes revenue from online store sales upon delivery of products, with fixed selling prices specified in sales orders[57] - For TikTok-related e-commerce services, revenue is recognized upon satisfaction of performance obligations, with distinct obligations for training, consulting, and design services[59] Discontinued Operations - Discontinued operations reported no revenues in 2025, down from $26.41 million in 2024 and $98.15 million in 2023[147] - The net loss from discontinued operations in 2025 was $1.30 million, compared to $5.64 million in 2024 and $67.91 million in 2023[147] - The loss from discontinued operations before income tax was $935,559 in 2025, significantly reduced from $13.28 million in 2024[147] - The Company reported a loss on disposal of discontinued operations amounting to $367,223[146] Legal and Regulatory Matters - There are no pending legal proceedings as of September 30, 2025, and March 31, 2025, which may materially affect the company's financial position[149] - The FASB issued ASU 2023-09 in December 2023, which updates income tax disclosures, effective for public entities for annual periods beginning after December 15, 2024[81] - The Company does not expect the adoption of new accounting standards to have a material impact on its consolidated financial statements[85]