Planet Green (US:PLAG)2023-11-13 16:00Financial Performance - Net revenues for the three months ended September 30, 2023, were $4,183,478, a decrease from $10,264,434 for the same period in 2022, representing a decline of approximately 59%[18] - Gross profit for the nine months ended September 30, 2023, was $638,475, down from $2,603,146 in the same period of 2022, indicating a decrease of about 75%[18] - Operating loss for the three months ended September 30, 2023, was $(1,126,285), compared to $(2,109,293) for the same period in 2022, showing an improvement of approximately 47%[18] - Net loss attributable to common shareholders for the nine months ended September 30, 2023, was $(14,764,145), compared to $(4,870,760) for the same period in 2022, reflecting a significant increase in losses[18] - Total comprehensive loss for the three months ended September 30, 2023, was $(1,114,899), compared to $(4,009,612) for the same period in 2022, indicating a reduction in comprehensive losses[18] - Basic and diluted loss per common share for the three months ended September 30, 2023, was $(0.02), compared to $(0.03) for the same period in 2022[18] - The net loss for the nine months ended September 30, 2023, was $14,764,145, compared to a net loss of $5,052,488 for the same period in 2022, representing an increase in losses of approximately 192%[25] - The company reported a basic and diluted loss per share of $(0.20) for the nine months ended September 30, 2023, compared to $(0.09) for the same period in 2022[146] Assets and Liabilities - Total assets decreased from $60.72 million as of December 31, 2022, to $49.42 million as of September 30, 2023, representing a decline of approximately 18.5%[15] - Current assets increased from $13.83 million to $18.57 million, a growth of about 34.1%[15] - Total liabilities increased from $20.13 million to $24.22 million, reflecting a rise of about 20.5%[15] - Stockholders' equity decreased from $40.59 million to $25.20 million, a decline of approximately 37.9%[15] - Total current liabilities increased from $19.57 million to $23.73 million, a rise of about 21.2%[15] - The accumulated deficit as of September 30, 2023, was $(134,246,166), an increase from $(98,943,143) as of September 30, 2022[20] - The company’s total assets as of the acquisition date of Allinyson Ltd. were valued at $7,812,825[110] Cash Flow - Cash provided by operating activities was $(4,240,629) in 2023, an improvement from $(10,208,033) in 2022[25] - Cash from investing activities increased to $2,699,069 in 2023, compared to $(3,271,268) in 2022, primarily due to proceeds from the disposal of equity method investments of $2,770,000[25] - Cash from financing activities was $1,527,688 in 2023, down from $11,314,508 in 2022, reflecting a decrease in proceeds from the issuance of common stock[25] - Total cash and cash equivalents at the end of 2023 were $313,500, slightly up from $311,095 at the end of 2022[25] - The company reported a foreign currency translation adjustment gain of $164,227 for the nine months ended September 30, 2023[20] Expenses - Research and development expenses for the three months ended September 30, 2023, were $61,985, compared to $79,031 in the same period of 2022, a decrease of approximately 22%[18] - Selling and marketing expenses for the nine months ended September 30, 2023, totaled $721,456, down from $1,497,194 in the same period of 2022, a reduction of about 52%[18] - Depreciation expenses increased to $1,531,932 in 2023 from $716,964 in 2022, indicating higher asset utilization or investment[25] - The company incurred an interest expense of $221,193 for the nine months ended September 30, 2023, down from $488,331 for the same period in 2022, a decrease of approximately 55%[132] Acquisitions and Investments - The company has engaged in multiple acquisitions, including 100% equity interests in various subsidiaries, enhancing its market presence[30][32][33] - The acquisition of Jingshan Sanhe Luckysky New Energy Technologies Co., Ltd. involved the issuance of 2,200,000 shares of common stock in exchange for 85% equity interest[86] - The total consideration for the acquisition of Jilin Chuangyuan Chemical Co., Ltd. was $8,085,000, with approximately $3.19 million of goodwill attributed to expected synergies[94] - The acquisition of Shandong Yunchu Supply Chain Co., Ltd. resulted in a net asset acquisition valued at $5,420,920, with goodwill of approximately $4.72 million expected from operational synergies[99] - The acquisition of Anhui Ansheng Petrochemical Equipment Co., Ltd. had a total consideration at fair value of $7,926,000, with goodwill estimated at $10.26 million due to anticipated synergies[104] Operational Challenges - The Company incurred a net loss of $14,365,365 for the nine months ended September 30, 2023, with an accumulated deficit of $134,246,166[42] - The company has a working capital deficit of $4,769,328 as of September 30, 2023[42] - Management's plan for continued existence relies on executing a business plan to generate profit and may require private placements for funding[43] - The company may face substantial doubt about its ability to continue as a going concern if it cannot execute its business plan[43] Revenue Recognition and Accounting Policies - The Company recognizes revenue when control of goods or services is transferred to customers, following ASC 606[64] - The Company applies the weighted average cost method for inventory valuation, which includes raw materials and finished goods[51] - The Company conducts annual assessments of goodwill for impairment, recognizing losses if the carrying value exceeds fair value[59] - The Company follows the asset and liability method for accounting income taxes, recognizing deferred tax benefits in future years[69]