Business Expansion and Operations - As of September 30, 2021, the company launched its first RAS demo site in Taiwan and is currently promoting RASs while seeking cooperation with the local solar energy industry[124]. - The company plans to sell over 5,000 tanks in the next five years, with production facilities to be established in Taiwan and sales targeted at the Americas and European countries[129]. - The company intends to expand fish farming demo sites in Taiwan by adding 20 units of RAS eel farming equipment and build a catfish farm in the U.S. by the end of 2024[130]. - On September 7, 2022, the company acquired an 80% controlling interest in Meixin Institutional Food Development Co., Ltd. for $4,300,000[125]. - The company completed the acquisition of 229 acres of land in Montgomery County, Alabama, for building RASs for fish farming[130]. - The company has ceased all operations in China and moved its technology and back-office operations to Taiwan as of October 2020[121]. - The company is targeting Taiwan government-supported solar fish farms and plans to expand its sales and marketing model through online marketing and data intelligence[128]. - The company aims to enhance market penetration through the establishment of its own fish farms and diversify revenue streams through various sales channels[130]. - The company is poised to grow its existing operations in Taiwan and expand into North and South America[122]. - The company plans to build land-based fish farming demo sites in multiple countries, requiring additional capital for construction, marketing, and operations[220]. Financial Performance - Revenue for the three months ended March 31, 2024, was $4,899,880, an increase of 27.7% compared to $3,837,863 for the same period in 2023[204]. - Gross profit for the three months ended March 31, 2024, was $83,961, up from $68,656 in the comparable period, reflecting a significant increase in gross profit margin due to enhanced fish trading and e-commerce live-stream sales[206]. - General and administrative expenses decreased to $451,465 for the three months ended March 31, 2024, compared to $1,059,337 for the same period in 2023, primarily due to reduced legal and consulting fees[207]. - Net loss attributable to the company for the three months ended March 31, 2024, was $486,420, a decrease from a net loss of $987,648 in the comparable period, indicating improved financial performance[209]. - The company reported a foreign currency translation gain of $57,307 for the three months ended March 31, 2024[205]. Cash Flow and Capital Management - Cash and cash equivalents as of March 31, 2024, were $961,777, down from $1,460,504 in 2023, representing a decrease of approximately 34.2%[166]. - Net cash used in operating activities for the quarter ended March 31, 2024, was $460,993, compared to $364,370 for the same period in 2023[216]. - The cash balance as of March 31, 2024, was $461,515, with management believing this will be sufficient to meet working capital requirements for at least one year[211]. - The company had net cash provided by investing activities of $201,863 for the three months ended March 31, 2024, contrasting with a net cash used of $1,058,821 in the same period of 2023[216]. - Net cash used in financing activities amounted to $60,678 for Q1 2024, up from $41,137 in Q1 2023, primarily due to bank loan repayments[219]. - Shareholders are committed to providing additional financing for capital raising efforts, although success in raising this capital is not guaranteed[220]. Accounting and Financial Reporting - The company recognizes impairment losses for long-lived assets when the carrying amount exceeds the estimated undiscounted future cash flows expected from the assets[186]. - The company applies ASC Topic 820 for fair value measurements, which includes a hierarchy of valuation techniques based on observable and unobservable inputs[161][162]. - Goodwill is tested for impairment annually, with any impairment charge recognized only when the estimated fair value of a reporting unit is less than its carrying amount[178]. - The company has early adopted ASU 2014-09 for revenue recognition, which requires revenue to reflect the transfer of promised goods or services to customers[188]. - Financial assets are classified into categories such as FVTPL, FVTOCI, and amortized cost, with specific measurement requirements for each category[152]. - The loss allowance for expected credit loss is recognized for financial assets at amortized cost and investments in debt instruments measured at FVTOCI[156]. - The company derecognizes financial assets when contractual rights to cash flows expire or when it transfers the asset along with substantial risks and rewards[159]. - The company uses the Black-Scholes pricing model to value share-based compensation, incorporating estimates of volatility and other factors[182]. - The company accounts for business acquisitions under ASC 805, measuring acquisition costs based on fair values of transferred assets and assumed liabilities[222]. - Estimates and assumptions regarding fair values of acquired assets may impact future financial results, including potential impairment charges[223]. - The company is classified as a "smaller reporting company" and is not required to provide certain market risk disclosures[225].
Nocera (NCRA) - 2024 Q1 - Quarterly Report