CooTek Cayman(US:CTKYY)2021-09-09 16:00Financial Performance - Net revenues for the six months ended June 30, 2021, were $164.77 million, a decrease of 29.4% compared to $233.41 million for the same period in 2020[6]. - Gross profit for the six months ended June 30, 2021, was $147.10 million, down from $223.14 million in 2020, reflecting a gross margin decline[6]. - Net loss attributable to ordinary shareholders for the six months ended June 30, 2021, was $13.50 million, compared to a net loss of $6.62 million in 2020, indicating a significant increase in losses[6]. - The company reported a comprehensive loss of $13.25 million for the six months ended June 30, 2021, compared to a comprehensive loss of $6.44 million in 2020[9]. - For the six months ended June 30, 2021, the net loss was US$12.1 million, compared to a net loss of US$6.6 million for the same period in 2020, indicating an increase in losses of approximately 83%[14]. - The Group's net revenues for the six months ended June 30, 2021, were US$59.2 million, a significant decrease from US$222.1 million for the same period in 2020, representing a decline of approximately 73%[31]. - The Group's net income for the six months ended June 30, 2021, was US$33.3 million, compared to US$21.0 million for the same period in 2020, indicating an increase of approximately 58%[31]. - For the six months ended June 30, 2021, total revenue decreased to US$164,768,953 from US$233,408,923 in the same period of 2020, representing a decline of approximately 29.4%[58]. - Advertising revenue for the same period dropped to US$162,485,069, down from US$232,196,523, a decrease of about 30%[58]. Assets and Liabilities - Total current assets increased from $68.18 million as of December 31, 2020, to $79.43 million as of June 30, 2021[3]. - Total liabilities decreased from $110.70 million as of December 31, 2020, to $101.50 million as of June 30, 2021[3]. - The accumulated deficit as of June 30, 2021, amounted to US$213.1 million, reflecting the ongoing financial challenges faced by the company[19]. - The company’s current liabilities exceeded its current assets by US$21.4 million as of June 30, 2021, indicating liquidity concerns[19]. - As of June 30, 2021, the Group's total assets were US$28.9 million, down from US$53.5 million as of December 31, 2020, reflecting a decrease of approximately 46%[31]. - The Group's accounts receivable decreased from US$16.1 million as of December 31, 2020, to US$11.5 million as of June 30, 2021, a decline of approximately 29%[31]. - The Group's total accrued expenses and other current liabilities decreased to USD 6,684,535 as of June 30, 2021, down from USD 10,686,518 as of December 31, 2020, a reduction of approximately 37.5%[93]. - The Group's property and equipment, net, decreased to USD 4,100,477 as of June 30, 2021, from USD 5,393,742 as of December 31, 2020, a decline of approximately 23.9%[87]. Cash Flow and Liquidity - Cash and cash equivalents rose from $24.67 million as of December 31, 2020, to $35.67 million as of June 30, 2021, indicating improved liquidity[3]. - Net cash used in operating activities for the six months ended June 30, 2021, was US$40.5 million, a significant increase from the previous year's cash provided by operating activities of US$20.4 million[14]. - The company reported a total cash, cash equivalents, and restricted cash of US$38.96 million at the end of June 30, 2021, down from US$64.92 million at the end of June 30, 2020[14]. - The company plans to enhance its operating cash flow and seek capital financing to fund its operations, including marketing activities[20]. - The company has sufficient cash and liquidity to fund its operations for one year from the date of the financial statements issuance[21]. - The company reported a cash inflow of US$27.18 million from the issuance of convertible notes during the six months ended June 30, 2021[14]. - The company’s total cash, cash equivalents, and restricted cash decreased by approximately 40% from the previous year, highlighting a need for improved cash management strategies[14]. Expenses and Investments - Operating expenses for the six months ended June 30, 2021, totaled $157.44 million, down from $229.99 million in 2020, showing a reduction in costs[6]. - Research and development expenses increased from $14.95 million in 2020 to $18.75 million in 2021, reflecting ongoing investment in innovation[6]. - User acquisition costs for advertising and promotion expenses were US$100,148,612 for the six months ended June 30, 2021, compared to US$204,965,757 in 2020, reflecting a reduction of approximately 51%[62]. - Operating lease costs for the six months ended June 30, 2021, were US$893,050, an increase from US$710,590 in the same period of 2020[75]. - The Group recognized revenue of US$3,014,390 by reducing the balance of deferred revenue for the six months ended June 30, 2021, compared to US$3,631,753 in 2020[60]. Shareholder Information - The weighted average shares used in calculating net loss per ordinary share increased from approximately 3.09 billion in 2020 to 3.19 billion in 2021[6]. - The weighted average number of ordinary shares outstanding increased from 3,094,780,922 in June 2020 to 3,187,723,620 in June 2021, reflecting a growth of approximately 3%[128]. - The company incurred share-based compensation expenses of US$2.15 million for the six months ended June 30, 2021, compared to US$2.37 million for the same period in 2020[14]. - The company recognized share-based compensation expense of US$1,255,165 for the six months ended June 30, 2021, down from US$1,428,823 in the same period of 2020, a decrease of 12%[124]. - As of June 30, 2021, there were 324,679,357 options outstanding with a weighted average exercise price of US$0.02, compared to 290,614,107 options at the beginning of the year[121]. - The company had US$2,221,352 in unrecognized compensation costs related to unvested restricted shares as of June 30, 2021, expected to be recognized over a weighted-average period of 1.53 years[127]. Debt and Financing - The Group's short-term bank borrowings increased significantly from US$267,917 as of December 31, 2020, to US$5.1 million as of June 30, 2021[31]. - The Group issued a convertible note for a principal amount of USD 20.0 million in March 2021, receiving cash proceeds of USD 18.2 million[101]. - The convertible note payable and related derivative liabilities amounted to US$17.8 million as of June 30, 2021, which can be settled in cash, ADSs, or a combination of both[22]. - The Group completed an offering in August 2021, issuing 990,034 ADSs for net proceeds of US$1.4 million[22]. - The company had an outstanding equity financing available of US$20.0 million as of June 30, 2021, under the Standby Equity Distribution Agreement[111].