Akso Health (US:AHG)2024-01-02 16:00Financial Performance - Net revenues for the six months ended September 30, 2023, were $893,583, a significant decrease of 92.5% compared to $11,857,082 for the same period in 2022[7] - Gross profit for the six months ended September 30, 2023, was $38,830, down from $1,125,881 in the same period of 2022, indicating a decline of approximately 96.5%[7] - Loss from continuing operations for the six months ended September 30, 2023, was $(3,063,537), compared to a profit of $1,646,865 for the same period in 2022[7] - The company reported a net loss attributable to Akso's shareholders of $(3,457,657) for the six months ended September 30, 2023, compared to a net income of $810,338 for the same period in 2022[7] - The net loss for the six months ended September 30, 2023, was $3.905 million, compared to a net loss of $281.15 million for the same period in 2022[31] - Net revenues for September 2023 were $698,000, a significant decrease from $15,339,000 in September 2022, indicating a decline of approximately 95.5% year-over-year[89] - The company reported a net loss of $3,457,657 for September 2023, compared to a net income of $810,338 in September 2022, reflecting a substantial shift in financial performance[115] Assets and Liabilities - Total current assets decreased from $20,460,299 as of March 31, 2023, to $16,880,618 as of September 30, 2023, representing a decline of approximately 17.7%[2] - Total liabilities remained relatively stable at $11,549,145 as of September 30, 2023, compared to $11,620,783 as of March 31, 2023[4] - Total shareholders' equity decreased from $8,839,516 as of March 31, 2023, to $5,331,473 as of September 30, 2023, reflecting a decline of approximately 39.5%[5] - The accumulated deficit increased from $(54,467,600) as of March 31, 2023, to $(57,925,257) as of September 30, 2023[5] - Accounts receivable, net as of September 30, 2023, was $5,827,917, down from $7,696,983 as of March 31, 2023, representing a decrease of approximately 24.2%[95] - Inventory as of September 30, 2023, was valued at $1,227,339, down from $1,686,449 as of March 31, 2023, showing a decrease of approximately 27.2%[96] Cash Flow - Cash and cash equivalents increased from $7,924,468 as of March 31, 2023, to $9,211,639 as of September 30, 2023, representing an increase of approximately 16.3%[2] - For the period ending September 30, 2023, the net cash provided by operating activities was $242,335, a significant improvement compared to a net cash used of $(1,334,116) in the same period of 2022[12] - The cash and cash equivalents at the end of the period were $10,231,326, an increase from $9,990,561 at the end of September 2022[12] - The company reported a net cash provided by investing activities of $1,528,918, compared to $20,000,000 in the previous year[12] - The company’s cash flow from financing activities included a loan from third parties amounting to $350,000, contrasting with repayments of loans due to related parties of $(27,513,849) in the previous year[12] Business Operations and Strategy - The company plans to open 2 vaccine research centers and 100 radiation oncology centers on the east coast of the U.S. to serve cancer patients[16] - In May 2023, the company disposed of its social e-commerce business to focus on healthcare services[16] - The company has established three medical device sales centers in the U.S. and started operations in January 2022[16] - The company completed the disposal of its social e-commerce business in May 2023, which had a major impact on its financial results[33] - The Company completed the disposal of its social e-commerce business for cash consideration of US$215,000 on May 19, 2023, marking a strategic shift towards its medical devices business[87] - The company announced a new business plan on November 17, 2023, to explore online hospital and chain pharmacies segments in China, with plans to acquire online hospitals and independent pharmacies[127] Tax and Regulatory Matters - The company has no taxable income in the U.S. for the six months ended September 30, 2023, due to the applicable tax rates and operational losses[112] - The Company provided a full valuation allowance on net deferred tax assets for both the six months ended September 30, 2023, and 2022[68] - The Company has no significant unrecognized uncertain tax positions as of September 30, 2023, and does not expect changes in unrecognized tax benefits over the next twelve months[70] Shareholder Information - The weighted average number of ordinary shares outstanding remained constant at 68,598,050 for both September 2023 and September 2022[115] - As of September 30, 2023, the company had 6,340,000 warrants outstanding to purchase 19,020,000 ordinary shares with a weighted average exercise price of $3.00 per warrant[120] - The company repurchased an aggregate of 1,165,883 ADSs for a total consideration of $3,988,370, recorded as treasury stock[123] Other Financial Metrics - The allowance for uncollectible accounts receivable increased to $1.94 million as of September 30, 2023, from $400,759 as of March 31, 2023[54] - Total accrued expenses and other current liabilities increased to $1,004,151 as of September 30, 2023, compared to $938,767 as of March 31, 2023, marking an increase of approximately 7%[103] - The company has not recognized any impairment loss for long-lived assets for the six months ended September 30, 2023[57] - The company has elected not to recognize lease liabilities for operating leases with terms of one year or less, expensing lease payments on a straight-line basis[62] - The average exchange rate for RMB to USD during the reporting period was 7.1287, compared to 6.7312 in the previous year[77] - Noncontrolling interest in We Healthy was recorded at US$108,065 as of September 30, 2023, down from US$114,212 as of March 31, 2023[73] - The restricted net assets of the company's PRC entities amounted to approximately $89.5 million as of September 30, 2023, which is not available for distribution[124] - The statutory reserves of the company were $485,211 as of September 30, 2023, included as retained earnings[125]