Singularity Future Technology .(SGLY) - 2021 Q2 - Quarterly Report

Revenue Performance - Revenue for the three months ended December 31, 2020, decreased by approximately $136,684, or 6.8%, to $1,884,440 compared to $2,021,124 for the same period in 2019[156]. - Revenue from shipping agency and management services dropped to nil for the three months ended December 31, 2020, representing a 100% decrease from $500,000 in the same period in 2019[161]. - Revenue from freight logistics services increased by $380,940, or approximately 25.3%, during the three months ended December 31, 2020, primarily due to the execution of delayed contracts[162]. - Revenues decreased by $786,111, or approximately 20.6%, from $3,807,350 for the six months ended December 31, 2019, to $3,021,239 for the same period in 2020[181]. - Revenues from shipping agency and management services decreased by approximately 79.3% to $206,845 for the six months ended December 31, 2020, compared to $1,000,000 for the same period in 2019[185]. - Revenues from container trucking services were nil for the six months ended December 31, 2020, a decrease of 100.0% from $61,709 for the same period in 2019[188]. Profitability and Margins - Gross profit for the three months ended December 31, 2020, was $195,976, down by $1,069,503, or 84.5%, from $1,265,479 in the same period in 2019[155]. - The gross margin percentage decreased from approximately 62.6% for the three months ended December 31, 2019, to approximately 10.4% for the same period in 2020, a decline of 52.2%[168]. - Gross profit margin decreased from approximately 62.2% for the six months ended December 31, 2019, to approximately 7.9% for the same period in 2020[192]. Operating Costs and Expenses - Operating costs and expenses rose by $706,151, or approximately 30.0%, from $2,354,119 for the three months ended December 31, 2019, to $3,060,270 for the same period in 2020[166]. - Cost of revenues increased by $932,819, or approximately 123.4%, to $1,688,464 for the three months ended December 31, 2020, compared to $755,645 in the same period in 2019[168]. - Operating costs and expenses decreased by $944,212 or approximately 16.0%, from $5,890,425 for the six months ended December 31, 2019, to $4,946,213 for the same period in 2020[190]. - Selling expenses decreased by approximately 44.4% to $142,392 for the six months ended December 31, 2020, compared to $256,154 for the same period in 2019[193]. - General and administrative expenses surged by $612,171, or approximately 87.2%, from $702,064 for the three months ended December 31, 2019, to $1,314,235 for the same period in 2020[171]. - General and administrative expenses increased by approximately 12.5% to $2,017,669 for the six months ended December 31, 2020, primarily due to a $606,000 increase in professional expenses[195]. Losses and Financial Condition - Operating loss increased to $1,175,830 for the three months ended December 31, 2020, compared to $332,995 for the same period in 2019[174]. - Net loss was $1,093,560 for the three months ended December 31, 2020, compared to $363,355 for the same period in 2019[180]. - Operating loss improved to $1,924,974 for the six months ended December 31, 2020, compared to $2,083,075 for the same period in 2019[199]. - Net loss decreased to $1,842,016 for the six months ended December 31, 2020, compared to $2,111,979 for the same period in 2019[205]. Cash and Assets - Cash at the end of the period increased to $4,473,000 as of December 31, 2020, compared to $119,667 at the end of the previous period[206]. - Net cash provided by financing activities was approximately $6.9 million for the six months ended December 31, 2020, primarily from the issuance of common and preferred stock[214]. - Total current assets increased by approximately 255.9% to $6,808,881 as of December 31, 2020, compared to $1,913,319 as of June 30, 2020[206]. - Working capital improved to $1,057,611 as of December 31, 2020, compared to a deficit of $3,895,546 as of June 30, 2020[206]. Strategic Initiatives - The company plans to integrate traditional logistics with modern technology and pursue Bitcoin mining as part of its strategy to diversify revenue streams[151]. - The ongoing COVID-19 pandemic continues to adversely affect the company's operations and financial condition, leading to uncertainty in future performance[152]. - Provision for doubtful accounts decreased by $294,567, or approximately 105.7%, to $14,282 for the three months ended December 31, 2020, compared to $278,676 for the same period in 2019[172]. - Stock-based compensation was nil for the three months ended December 31, 2020, a decrease of $491,609 or 100.0%, compared to the same period in 2019[173]. - Provision for doubtful accounts decreased by approximately 99.8% to $45,091 for the six months ended December 31, 2020, compared to $1,285,592 for the same period in 2019[197].