Financial Performance - For the year ended December 31, 2021, the company reported a net loss of $6.4 million and negative operating cash flows of $18.0 million, primarily due to aggressive business strategies aimed at increasing traffic to its online platform [497]. - The company raised net proceeds of approximately $25.7 million from its initial public offering, which were used to expand business operations, resulting in a revenue increase of approximately $74.0 million in 2021 compared to 2020 [498]. - The company has not identified any trends or uncertainties that could materially affect its financial position or operating results for the period from January 1, 2021, to December 31, 2021 [505]. Cash and Liquidity - As of December 31, 2021, the company had cash and restricted cash of approximately $21.2 million and working capital of approximately $31.3 million [501]. - Approximately $18.2 million of the cash was held by the VIE with banks and financial institutions in China, highlighting the company's reliance on its consolidated VIE for operations [501]. - As of March 31, 2022, approximately $3.9 million, or 70%, of the accounts receivable balance as of December 31, 2021, had been collected [501]. - The company had a short-term bank loan of approximately $2.7 million as of December 31, 2021, which was renewed to March 2023, indicating a stable credit history [502]. Obligations and Reserves - The company's operating lease contractual obligations as of December 31, 2021, totaled approximately $5.9 million [509]. - The company is required to set aside at least 10% of its after-tax profits each year for statutory reserve funds, which are not distributable as cash dividends [496]. - The company has not entered into any financial guarantees or derivative contracts that could impact its financial position [506].
Jowell .(JWEL) - 2021 Q4 - Annual Report