Planet Green (US:PLAG)2024-05-15 18:35Financial Performance - Net revenues for Q1 2024 were $1,530,767, a decrease of 82.0% compared to $8,534,292 in Q1 2023[19] - Gross profit for Q1 2024 was $362,805, compared to $246,426 in Q1 2023, reflecting an increase of 47.0%[19] - The operating loss for Q1 2024 was $927,124, an improvement from the operating loss of $1,159,914 in Q1 2023[19] - Net loss for Q1 2024 was $1,080,904, compared to a net loss of $1,285,371 in Q1 2023, indicating a 15.9% improvement[19] - The company reported a basic and diluted loss per share of $0.01 for Q1 2024, compared to a loss of $0.02 for Q1 2023[19] - The company reported a net loss of $1,080,904 for the three months ended March 31, 2024, compared to a net loss of $1,285,371 for the same period in 2023, indicating an improvement in performance[25] - Operating revenues for the VIE for the three months ended March 31, 2024, were $26,640, a significant decrease from $2,193,521 for the same period in 2023, indicating a decline of approximately 98.8%[91] - The net loss for the VIE for the three months ended March 31, 2024, was $(438,397), compared to a net loss of $(584,698) for the same period in 2023, showing an improvement of about 25%[91] - For the three months ended March 31, 2024, the loss attributed to PRC operations was $(1,054,951), compared to $(923,175) for the same period in 2023[133] - The net loss for the three months ended March 31, 2024, decreased by $0.21 million, or 16%, to $1.08 million from $1.29 million in the same period in 2023[152] Expenses and Liabilities - Total operating expenses decreased to $1,289,929 in Q1 2024 from $1,406,340 in Q1 2023, a reduction of 8.3%[19] - Total liabilities rose to $24,567,125 as of March 31, 2024, compared to $23,189,784 as of December 31, 2023, an increase of 5.9%[16] - The accumulated deficit increased to $(8,667,813) as of March 31, 2024, from $(8,229,416) as of December 31, 2023, indicating a deterioration of approximately 5.3%[88] - The company has an accumulated deficit of $141,805,501 and a working capital deficit of $7,267,697 as of March 31, 2024[44] - The debt to assets ratio increased to 57.27% as of March 31, 2024, compared to 54.40% as of December 31, 2023[154] Assets and Cash Flow - Total assets increased to $42,899,302 as of March 31, 2024, from $42,629,996 as of December 31, 2023, a growth of 0.6%[16] - Cash and cash equivalents were $403,082 as of March 31, 2024, down from $436,383 as of December 31, 2023, a decrease of 7.6%[16] - Net cash provided by operating activities was $183,614 for the three months ended March 31, 2024, down from $497,729 in the previous year[25] - Cash and cash equivalents at the end of the year were $403,082, compared to $224,216 at the end of the previous year[25] - As of March 31, 2024, the company had cash and cash equivalents of $403.08 thousand, down from $436.38 thousand as of December 31, 2023[154] Acquisitions and Subsidiaries - The company has been actively involved in acquisitions, including the acquisition of 100% equity of Xianning Bozhuang Tea Products Co., Ltd.[27] - The company has established various subsidiaries and joint ventures to expand its operations in China and other markets[27] - The company has consolidated the accounts of Jilin Chuangyuan Chemical Co., Ltd. as a VIE, which was acquired through a series of agreements on March 9, 2021[92][93] - The company issued 3,300,000 shares of common stock to acquire 75% of the equity interest in Jilin Chuangyuan Chemical Co., Ltd.[92] - Total consideration for the acquisition of Shandong Yunchu Supply Chain Co., Ltd. was $5,420,920, with approximately $4.72 million of goodwill attributed to expected synergies[99][100] Accounting and Financial Reporting - The Company’s financial statements are prepared according to generally accepted accounting principles in the United States (GAAP)[46] - The Company recognizes revenue when control of the promised goods or services is transferred to customers, following ASC 606[69] - The Company conducts annual assessments of goodwill for impairment, recognizing losses if the carrying value exceeds fair value[63] - The Company applies a straight-line method for depreciation of plant and equipment, with estimated useful lives ranging from 1 to 40 years[58] - The Company evaluated the provisions of ASC 740 related to accounting for uncertainty in income taxes, indicating a comprehensive model for recognizing tax positions[133] Operational Highlights - The company extended credit terms of 15 to 60 days to the majority of its domestic customers, which include third-party distributors, supermarkets, and wholesalers[102] - Customer C accounted for 23% of revenues for the three months ended March 31, 2024, while Customer B accounted for 23% in the previous year[137] - Supplier E accounted for 35% of purchases for the three months ended March 31, 2024, while Supplier A accounted for 18% in the previous year[139] Legal and Compliance - The company does not expect any material adverse impact from ongoing legal claims and litigation on its consolidated financial position[83] - The Chief Executive Officer and Chief Financial Officer have signed the report, confirming its accuracy and compliance with regulatory requirements[175] - The report includes various exhibits related to the Securities Purchase Agreement and certifications under the Sarbanes-Oxley Act of 2002[172] - The Inline XBRL documents are included to enhance the accessibility and usability of financial data[172]