Singularity Future Technology .(SGLY) - 2023 Q3 - Quarterly Report

Revenue Performance - For the nine months ended March 31, 2023, the Company's revenue from freight logistics services in China decreased by $546,438, or 24.37%, from $2,242,296 for the same period in 2022 to $1,695,858[194]. - Revenues decreased by $211,842, or approximately 21.8%, from $971,747 for the three months ended March 31, 2022, to $759,905 for the same period in 2023, primarily due to decreases in freight logistic services[195]. - Revenues from freight logistics services were $759,905 for the three months ended March 31, 2023, a decrease of $211,842, or approximately 21.8%, from $971,747 for the same period in 2022, mainly due to reduced customer demand for international e-commerce[197]. - Total revenues for the nine months ended March 31, 2023, increased by $642,358, or approximately 22.7%, from $2,829,682 for the same period in 2022 to $3,472,040, primarily due to increased revenue from the sale of crypto mining equipment[215]. - Revenues from freight logistics services decreased by $90,207, or 3.2%, to $2,739,475 for the nine months ended March 31, 2023, primarily due to decreased demand from a major customer in the PRC[219]. - Revenues from sales of crypto mining machines were $732,565 for the nine months ended March 31, 2023, compared to nil in the same period of 2022[220]. Expenses and Losses - Operating costs and expenses decreased by $5,861,198 or approximately 56.6%, from $10,358,558 for the three months ended March 31, 2022, to $4,497,360 for the same period in 2023[198]. - General and administrative expenses increased by $1,355,498, or approximately 63.3%, from $2,140,749 for the three months ended March 31, 2022, to $3,496,247 for the same period in 2023[202]. - The company recorded a net loss of $12,042,627 for the three months ended March 31, 2023, compared to a net loss of $9,422,520 for the same period in 2022[214]. - The company recorded a net loss of $18,739,820 for the nine months ended March 31, 2023, an improvement from a net loss of $23,455,465 in the same period of 2022[235]. - The company recorded $128,370 in impairment losses related to investments for the three months ended March 31, 2023, due to impairment of its investment in LSM Trading Ltd.[205]. - The company incurred $8,400,491 in lawsuit settlement expenses for the three months ended March 31, 2023, compared to nil in the same period in 2022[207]. - The company recorded $8,400,491 in lawsuit settlement expenses for the nine months ended March 31, 2023, compared to nil in the same period of 2022[230]. Compliance and Governance - The Company has been granted a compliance period until July 5, 2023, to regain compliance with Nasdaq's minimum bid price requirement of $1[188]. - The Company received a notice from Nasdaq on March 8, 2023, indicating non-compliance with audit committee requirements following the resignation of a board member[190]. - The Company regained compliance with Nasdaq Listing Rule 5250(c)(1) on March 16, 2023, confirming timely filing of required periodic financial reports[191]. - The Company appointed Heng Wang as non-executive chairman of the Board on March 30, 2023, following the resignation of John Levy[184]. Cash and Assets - As of March 31, 2023, the company had $21,609,701 in cash, with the majority held in U.S. banks[236]. - Total current assets decreased by 63.9% to $22.8 million as of March 31, 2023, compared to $63.2 million in June 2022[238]. - Working capital decreased by 67.3% to $12.4 million as of March 31, 2023, from $38.0 million in June 2022[238]. - Cash at the end of the period was $21.6 million as of March 31, 2023, down from $60.3 million at the end of the previous year[238]. - Current ratio decreased to 2.20 as of March 31, 2023, from 2.51 in June 2022, reflecting a decline of 12.4%[238]. - Net cash used in operating activities was approximately $32.3 million for the nine months ended March 31, 2023, primarily due to a net loss of approximately $18.7 million, which included an $8.4 million lawsuit settlement[239]. Operational Developments - The Company expanded its services to include warehousing through its US subsidiary, Brilliant Warehouse Service Inc., starting in fiscal year 2022[171]. - The Company has authorized the conduct of e-commerce business in China as of March 30, 2023[172]. - The Company experienced delays in fulfilling customer orders for crypto mining machines due to supply chain issues exacerbated by COVID-19[194].