Cheetah Net Supply Chain Service Inc. Announces Full Year 2024 Results and Provides Corporate Update

Core Viewpoint - Cheetah Net Supply Chain Service Inc. faced significant challenges in 2024 due to deteriorating market conditions in China, leading to a strategic shift from parallel-import vehicle sales to logistics and warehousing services, resulting in a total net loss of $5.2 million for the year [4][19]. Financial Performance - The company's total revenues from continuing operations were $455,805 for the year ended December 31, 2024, with a gross profit of $178,512 [9][28]. - Net losses from continuing operations were $3.2 million, compared to $1.7 million in 2023 [14][28]. - The company reported a gross loss of $24,820 from discontinued operations, a significant decline from a gross profit of $4.2 million in 2023 [16]. Discontinued Operations - Sales from the discontinued parallel-import vehicle business plummeted by 95.7% to $1.6 million in 2024 from $38.3 million in 2023 [15]. - The cost of revenues from discontinued operations decreased by 95.0% to $1.7 million in 2024, aligning with the sales downturn [15]. - The net loss from discontinued operations was approximately $2.0 million in 2024, compared to a net income of $1.8 million in 2023 [19]. Strategic Initiatives - The company acquired Edward Transit Express Group, Inc. for $1.5 million in February 2024 and TWEW for $1.0 million in December 2024 to expand its logistics and warehousing capabilities [6][9]. - Cheetah relocated its headquarters to Irvine, CA, to enhance its focus on logistics and warehousing, benefiting from proximity to major ports [6][9]. Shareholder Actions - The company completed a public offering of 404,979 shares at $3.68 per share in July 2024, generating net proceeds of $1.1 million [9]. - A reverse stock split at a ratio of 1-for-16 was approved and took effect on October 21, 2024, impacting the trading of its Class A common stock [9][26]. Liquidity and Cash Flow - As of December 31, 2024, the company had current assets of $11.0 million, including cash and cash equivalents of $1.7 million [20]. - The company reported cash flow of $0.2 million from operating activities, $6.1 million used in investing activities, and $7.1 million provided by financing activities during the year [21][33].