CORRECTION – Cheetah Net Supply Chain Service Inc. Announces Third Quarter 2025 Results

Core Insights - Cheetah Net Supply Chain Service Inc. reported a revenue of $361,935 for Q3 2025, with a significant operating loss of $1,564,479, which includes an impairment loss of $731,307 on intangible assets and goodwill [2][4][9] - The company experienced a net loss of $1,314,650 for the quarter, marking a 27.6% decrease compared to the same period in 2024 [2][12] - Ongoing trade tensions and tariff issues have adversely affected logistics and warehousing demand, leading to a slower-than-expected recovery in the sector [3][5] Financial Performance - Revenue from logistics and warehousing services for Q3 2025 was $361,935, with $41,935 (11.6%) from Edward Transit Express Group and $320,000 (88.4%) from TW & EW Services Inc. [4] - The cost of revenue was reported at $317,757, resulting in a gross profit of $44,178 for the quarter [6][33] - General and administrative expenses decreased by 27.3% to $801,263, primarily due to cost-saving measures and staff optimization [7][17] Impairment and Losses - The company recognized an impairment loss of $731,307 for Q3 2025, attributed to the acquisition of Edward, following a qualitative and quantitative assessment of market conditions [9][18] - Share-based compensation expenses decreased significantly by 70.9% to $76,087 for the quarter [10] - The net loss from continuing operations for the nine months ended September 30, 2025, was $2,581,087, compared to a net loss of $1,710,581 for the same period in 2024 [22][24] Interest Income and Expenses - Interest income from continuing operations increased significantly to $244,776 for Q3 2025, up 176.7% from $88,460 in Q3 2024 [11][33] - Interest expenses slightly decreased to $7,849 for Q3 2025, down 6.9% from $8,435 in Q3 2024 [12][33] Liquidity and Cash Flow - As of September 30, 2025, the company had current assets of $9.7 million and current liabilities of approximately $1.3 million [26][27] - The company reported a net cash flow of $0.7 million from operating activities during the nine months ended September 30, 2025 [27][34] - Total stockholders' equity decreased to $10.1 million as of September 30, 2025, compared to $12.6 million at the end of 2024 [27][30]