(Exact name of registrant as specified in its charter) |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
(Address of Principal Executive Offices) | (Zip Code) |
( |
(Registrant’s telephone number, including area code) |
N/A |
(Former name, former address and former fiscal year, if changed since last report) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||
Large accelerated filer | ☐ | Accelerated filer | ☐ |
☒ | Smaller reporting company | ||
Emerging growth company |
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1 | ||||
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As of June 3 0 , |
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As of December 31, |
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2024 |
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2023 |
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(Unaudited) |
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ASSETS |
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CURRENT ASSETS |
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Cash |
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$ |
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$ |
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Restricted cash |
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Accounts receivable, net |
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Inventory, net |
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Prepayments |
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Other receivables and other current assets |
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Total current assets |
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NON-CURRENT ASSETS |
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Property, plant and equipment, net |
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Construction in progress |
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Land use rights, net |
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Operating lease right-of-use assets, net |
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Security deposits |
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Total non-current assets |
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TOTAL ASSETS |
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$ |
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$ |
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LIABILITIES AND STOCKHOLDERS’ DEFICIT |
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CURRENT LIABILITIES |
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Bank borrowings - current |
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Operating lease liabilities, current |
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Accounts and other payables and accruals |
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Taxes payable |
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Unearned revenue |
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Amounts due to related parties |
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Obligation under secured borrowing arrangement |
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Total current liabilities |
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Bank borrowings – non-current |
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Operating lease liabilities, – non-current |
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Total non-current liabilities |
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TOTAL LIABILITIES |
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$ |
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$ |
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COMMITMENTS AND CONTINGENCIES |
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STOCKHOLDERS’ EQUITY |
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Preferred stock – Series A, $ outstanding as of June 30, 2024 and December 31, 2023 |
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Common stock, $ June 30, 2024 and December 31, 2023 |
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Subscription receivable |
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( |
) |
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( |
) |
Additional paid-in capital |
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Retained earnings |
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( |
) |
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( |
) |
Accumulated other comprehensive loss |
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( |
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( |
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Total stockholders’ equity |
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TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY |
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$ |
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$ |
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F-1 |
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T h ree Months Ended |
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Six Months Ended |
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June 30, |
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June 30, |
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202 4 |
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202 3 |
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202 4 |
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202 3 |
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(Unaudited) |
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(Unaudited) |
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(Unaudited) |
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(Unaudited) |
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REVENUES |
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$ |
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$ |
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$ |
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$ |
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COST OF REVENUES |
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GROSS PROFIT |
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OPERATING EXPENSES |
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Selling expenses |
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General and administrative expenses |
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Finance Cost |
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Research and development expenses |
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Total operating expenses |
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INCOME FROM OPERATIONS |
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( |
) |
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( |
) |
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OTHER INCOME (EXPENSE) |
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Interest expense |
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( |
) |
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( |
) |
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( |
) |
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( |
) |
Amortization of debt discounts |
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( |
) |
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( |
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Extinguishment loss |
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Other income |
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Other expenses |
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Exchange loss |
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( |
) |
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Total other income (expenses), net |
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( |
) |
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( |
) |
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( |
) |
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LOSS BEFORE TAXES |
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( |
) |
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( |
) |
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( |
) |
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( |
) |
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Income tax expense |
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( |
) |
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( |
) |
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( |
) |
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( |
) |
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NET LOSS |
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( |
) |
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( |
) |
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( |
) |
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( |
) |
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Other comprehensive income: |
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Foreign currency translation adjustment |
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Total comprehensive loss |
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( |
) |
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( |
) |
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( |
) |
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( |
) |
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Basic and diluted earnings per share* |
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$ |
( |
) |
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$ |
( |
) |
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$ |
( |
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$ |
( |
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Weighted average number of shares of common stock outstanding – basic* |
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Weighted average number of shares of common stock outstanding – diluted* |
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F-2 |
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Preferred Stock – Series A |
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Common Stock |
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|||||||||||||||
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Number of shares |
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Amount |
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Number of shares |
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Amount |
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Subscription receivable |
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Additional paid in capital |
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Retained earnings |
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Accumulated other comprehensive loss |
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Total |
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|||||||||
Balance, December 31, 2023 |
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$ |
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$ |
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$ |
( |
) |
|
$ |
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$ |
( |
) |
|
$ |
( |
) |
|
$ |
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Net loss |
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- |
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- |
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- |
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- |
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- |
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|
- |
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|
( |
) |
|
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- |
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( |
) |
Issuance of shares |
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( |
) |
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency translation adjustment |
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|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
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Balance, June 30 , 2024 |
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$ |
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$ |
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$ |
( |
) |
|
$ |
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$ |
( |
) |
|
$ |
( |
) |
|
$ |
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|
|
Preferred Stock – Series A |
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Common Stock |
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|||||||||||||||
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Number of shares |
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Amount |
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Number of shares |
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Amount |
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Subscription receivable |
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Additional paid in capital |
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Retained earnings |
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Accumulated other comprehensive loss |
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Total |
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|||||||||
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|||||||||
Balance, March 31, 202 4 |
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$ |
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$ |
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|
$ |
( |
) |
|
$ |
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|
$ |
( |
) |
|
$ |
( |
) |
|
$ |
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Net loss |
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- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
( |
) |
|
|
- |
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|
( |
) |
Issuance of common stock |
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|
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( |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency translation adjustment |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
, 549 |
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Balance, June 30, 2024 |
|
|
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|
$ |
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|
|
|
|
|
|
$ |
|
|
|
$ |
( |
) |
|
$ |
|
|
|
$ |
( |
) |
|
$ |
( |
) |
|
$ |
|
|
|
|
Preferred Stock – Series A |
|
|
Common Stock |
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|
|
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|
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|||||||||||||||
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Number of shares |
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|
Amount |
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|
Number of shares |
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|
Amount |
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|
Subscription receivable |
|
|
Additional paid in capital |
|
|
Retained earnings |
|
|
Accumulated other comprehensive loss |
|
|
Total |
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|||||||||
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|||||||||
Balance, December 31, 2022 |
|
|
|
|
|
$ |
|
|
|
|
|
|
|
$ |
|
|
|
$ |
( |
) |
|
$ |
|
|
|
$ |
|
|
|
$ |
( |
) |
|
$ |
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|
|
|
|
|
|
|
|
|
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|
|
|
|
|
|
|
|
|
Net loss |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
( |
) |
|
|
|
|
|
|
( |
) |
|
|
|
|
|
|
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency translation adjustment |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
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|
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|
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|
|
|
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|
|
Balance, June 30 , 2023 |
|
|
|
|
|
$ |
|
|
|
|
|
|
|
$ |
|
|
|
$ |
( |
) |
|
$ |
|
|
|
$ |
|
|
|
$ |
( |
) |
|
$ |
|
|
|
|
Preferred Stock – Series A |
|
|
C ommon Stock |
|
|
|
|
|
|
|
|
|
|
|
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|
|||||||||||||||
|
|
Number of shares |
|
|
Amount |
|
|
Number of shares |
|
|
Amount |
|
|
Subscription receivable |
|
|
Additional paid in capital |
|
|
Retained earnings |
|
|
Accumulated other comprehensive loss |
|
|
Total |
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
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|
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|
|||||||||
Balance, March 31, 202 3 |
|
|
|
|
|
$ |
|
|
|
|
|
|
|
$ |
|
|
|
$ |
( |
) |
|
$ |
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$ |
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$ |
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$ |
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Net loss |
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- |
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- |
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- |
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- |
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- |
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- |
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(
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(
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Foreign currency translation adjustment |
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$ |
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Balance, June 30 , 2023 |
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$ |
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$ |
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$ |
( |
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$ |
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$ |
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$ |
( |
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$ |
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F-3 |
Six Months Ended June 3 0 , | ||||||||
2024 | 2023 | |||||||
(Unaudited) | (Unaudited) | |||||||
Cash flows from operating activities | ||||||||
Net loss | $ | ( | ) | $ | ( | ) | ||
Adjustments to reconcile net (loss) income to cash (used in) provided by operating activities: | ||||||||
Depreciation and amortization | ||||||||
Amortization of debt discounts | ||||||||
Share-based compensation | ||||||||
Income from settlement of C onvertible N otes | ( | ) | ||||||
Changes in assets and liabilities | ||||||||
Accounts receivable | ||||||||
Other receivables | ||||||||
Prepayments | ( | ) | ( | ) | ||||
Inventory | ( | ) | ( | ) | ||||
Prepaid expenses | ||||||||
Right of use assets | ||||||||
Deferred tax asset | ||||||||
Accounts payable | ( | ) | ( | ) | ||||
Accruals and other payables | ||||||||
Unearned revenue | ( | ) | ||||||
Payroll payable | ||||||||
Taxes payable | ( | ) | ( | ) | ||||
Accrued interest | ||||||||
Operating leases | ( | ) | ( | ) | ||||
Other assets | ||||||||
Net cash provided or (used in) operating activities | ( | ) | ||||||
Cash flows from investing activities | ||||||||
P urchase of equipment | ( | ) | ||||||
(Payments for ) or transfer from construction | ( | ) | ||||||
Net cash used in investing activities | ( | ) | ( | ) | ||||
Cash flows from financing activities | ||||||||
Rep yment of a b ank Loan | ( | ) | ( | ) | ||||
Re ayment of secured borrowing arrangementp | ( | ) | ||||||
Settlement of convertible notes | ( | ) | ||||||
Amounts received from or related party | ||||||||
Net cash (used in) provided by financing activities | ( | ) | ||||||
Effect of exchange rates on cash | ||||||||
Net change in cash and cash equivalents | ( | ) | ( | ) | ||||
Cash at beginning of year | ||||||||
Cash at end of period | $ | $ | ||||||
Supplemental of cash flow information | ||||||||
Cash paid for interest | $ | $ | ||||||
Cash paid for income taxes | $ | $ |
F-4 |
1. | ORGANIZATION AND BUSINESS |
F-5 |
2. | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
F-6 |
F-7 |
Balance sheet items, except for equity accounts | ||||
June 3 0 , 2024 | RMB to $ | HKD to $ | ||
June 3 0 , 2023 | RMB | HKD | ||
Income statement and cash flows items | ||||
For the six months ended June 3 0 , 2024 | RMB to $ | HKD to $ | ||
For the six months ended June 3 0 , 2023 | RMB | HKD |
F-8 |
Estimated useful lives (years) | ||||
Office and computer equipment | ||||
Manufacturing equipment |
Estimated useful lives (years) | ||||
Land use right |
F-9 |
Three Months ended June 30, | Six Months ended June 3 0 , | |||||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||||
(Unaudited) | (Unaudited) | |||||||||||||||
Net loss | ( | ) | ( | ) | $ | ( | ) | $ | ( | ) | ||||||
Weighted average number of shares of common stock outstanding - basic | * | * | ||||||||||||||
Add: potentially dilutive effect of shares issuable upon conversion of notes | ||||||||||||||||
Add: potentially dilutive effect of shares issuable upon exercise of warrants | ||||||||||||||||
Weighted average number of shares of common stock outstanding - diluted | * | * | ||||||||||||||
Basic and diluted (loss) earnings per share | ( | ) | ( | ) | $ | ( | )* | $ | ( | )* |
F-10 |
F-11 |
3. | RESTRICTED CASH |
June 3 0 , 2024 | December 31, 2023 | |||||||
Deposit for Bank acceptance bill | $ | $ | ||||||
Total | $ | $ |
4. | ACCOUNTS RECEIVABLE, NET |
June 3 0 , 2024 | December 31, 2023 | |||||||
Gross accounts receivable | $ | $ | ||||||
Less: allowance for doubtful accounts | ||||||||
$ | $ |
5. | OTHER RECEIVABLES |
June 3 0 , 2024 | December 31, 2023 | |||||||
Deposit and other assets | ||||||||
Total | $ | $ |
6. | INVENTORY, NET |
June 3 0 , 2024 | December 31, 2023 | |||||||
Raw materials and components | $ | $ | ||||||
Finished goods | ||||||||
Total | ||||||||
less: Impairment | ||||||||
Inventories, net | $ | $ |
F-12 |
7. | EQUIPMENT, NET |
June 3 0 , 2024 | December 31, 2023 | |||||||
Manufacturing equipment | $ | $ | ||||||
Office equipment | ||||||||
less: Accumulated depreciation | ||||||||
Total | $ | $ |
8. | LAND USE RIGHTS, NET |
June 3 0 , 2024 | December 31, 2023 | |||||||
Land use right | $ | $ | ||||||
less: Accumulated amortization | ||||||||
$ | $ |
9. | BANK BORROWINGS |
Bank | Loan period | Interest rate | Balance at June 3 0 , 2024 | Balance at December 31, 2023 | ||||||||||||
Industrial and Commercial Bank of China | % | $ | $ | |||||||||||||
Industrial and Commercial Bank of China | % | |||||||||||||||
Bank of Communications | % | |||||||||||||||
Bank of Communications | % | |||||||||||||||
Jiangnan Rural Commercial Bank | % | |||||||||||||||
Jiangnan Rural Commercial Bank | % | |||||||||||||||
Bank of America | April 30, 202 5 | Prime rate + | % | |||||||||||||
Total | $ | $ |
F-13 |
Bank | Loan period | Interest rate | Balance at June 30, 2024 | Balance at December 31, 2023 | ||||||||||||
EIDL Loan | From | |||||||||||||||
Total | $ | $ |
10. | BALANCES WITH RELATED PARTY |
1) | Related party transactions |
2) | Related party balances |
Accounts | Name of Related Party | Note | June 3 0 , 2024 | December 31, 2023 | ||||||||||||
Amount ( due to) from related party | Lin Li, Chief Executive Officer and Chairman of the Board | $ | ( | ) | $ |
11. | EQUITY |
F-14 |
12. | CONVERTIBLE NOTES |
Purchaser | Date of Issuance | Security Type | Consideration | |||||||||
Hongyu Wang | US$ | |||||||||||
Sam Yan | US$ |
Convertible Notes | June 3 0 , 2024 | |||
Convertible Notes – Face Value | $ | |||
Discount – Placement agent commissions – cash | ||||
Discount – Placement agent commissions – warrants | ||||
Discount – Detachable warrants | ||||
Discount – Beneficial conversion feature | ||||
$ |
F-15 |
13. | INCOME TAXES |
F-16 |
For the six months ended June 3 0 , 2024 | For the six months ended June 3 0 , 2023 | |||||||
Current: | - | - | ||||||
Federal | $ | $ | ||||||
State | ||||||||
Foreign | ||||||||
Total current | $ | $ | ||||||
Deferred: | - | |||||||
Federal | $ | $ | ||||||
State | ||||||||
Foreign | ||||||||
Total deferred | $ | $ | ||||||
Total income tax expense | $ | $ |
For the six months ended June 3 0 , 2024 | For the six months ended June 3 0 , 2023 | |||||||
Loss before income tax expense | $ | ( | ) | $ | ( | ) | ||
Computed tax benefit with statutory tax rate | % | % | ||||||
Income tax expense computed at statutory income tax rate | ( | ) | ( | ) | ||||
Impact of different tax rates in other jurisdictions | ( | ) | ||||||
Tax effect of non-deductible expenses | ||||||||
Total income tax expense | $ | $ |
F-17 |
14. | CHINA CONTRIBUTION PLAN |
15. | OPERATING LEASE |
Assets/liabilities | June 0 , 2024 | December 31, 2023 | ||||||
Assets | ||||||||
Operating lease right-of-use assets | $ | $ | ||||||
Liabilities | ||||||||
Operating lease liability - current | $ | $ | ||||||
Operating lease liability - non-current | ||||||||
Total lease liabilities | $ | $ |
For the six months ended June 3 0 , 2024 | For the six months Ended June 3 0 , 2023 | |||||||
Cash paid for amounts included in the measurement of operating lease liabilities | $ | $ | ||||||
Right-of-use assets obtained in exchange for new lease obligations: |
F-18 |
Lease Cost | Classification | For the three months ended June 3 0 , 2024 | For the three months ended June 3 0 , 2023 | |||||||||
Operating lease expense | General and administrative expenses | $ | $ |
Maturity of Lease Liabilities | Operating Leases | |||
Within one year | ||||
Within a period of more than one year but not more than two years | $ | |||
Within a period of more than two year but not more than three years | ||||
Within a period of more than three year but not more than four years | ||||
Within a period of more than four years but not more than five years | ||||
More than five years | ||||
Total lease commitment | $ | |||
Less: interest | ( | ) | ||
Present value of lease payments | $ |
Lease Term and Discount Rate | June 3 0 , 2024 | December 31, 2023 | ||||||
Weighted-average remaining lease term (years) | ||||||||
Operating leases | 2. 42 | |||||||
Weighted-average discount rate (%) | ||||||||
Operating leases | % | % |
16. | CONCENTRATIONS AND CREDIT RISK |
(a) | Concentrations |
F-19 |
(b) | Credit risk |
17. | CAPITAL COMMITMENTS |
18. | STOCK SPLIT |
19. | SECURED BORROWING ARRANGEMENT |
2 1 . | SUBSEQUENT EVENT |
F-20 |
2 2 . | UNRESTRICTED NET ASSETS |
As of June 3 0 , | As of December 31, | |||||||
2024 | 2023 | |||||||
(Unaudited) | ||||||||
Cash | ||||||||
Amounts due from subsidiaries | ||||||||
Total current assets | ||||||||
Interests in a subsidiary | ||||||||
Total Assets | ||||||||
Liabilities and Stockholders’ Deficit | ||||||||
All other current liabilities | ||||||||
Amounts due to subsidiaries | ||||||||
Total current liabilities | ||||||||
Non-current liabilities | ||||||||
Total Liabilities | ||||||||
Stockholders’ Equity (Deficit) | ||||||||
Preferred stock – Series A, $ * | ||||||||
Common stock, $ * | ||||||||
Subscription receivable | ( | ) | ( | ) | ||||
Additional Paid-in Capital | ||||||||
Acc umulated deficit | ( | ) | ( | ) | ||||
Accumulated other comprehensive income (loss) | ( | ) | ( | ) | ||||
Total Stockholders’ Equity (Deficit) | ||||||||
Total Liabilities and Stockholders’ Deficit |
F-21 |
For the six months ended June 3 0 , | For the six months ended June 3 0 , | |||||||
2024 | 2023 | |||||||
(Unaudited) | ||||||||
Revenue | ||||||||
Cost or revenues | ||||||||
Operating expenses | ||||||||
Income taxes | ||||||||
L oss – Parent only | ( | ) | ( | ) | ||||
Income – Subsidiaries with unrestricted net assets | ||||||||
I ncome( l oss) – Subsidiaries with restricted net assets | ( | ) | ||||||
Net loss – Consolidated | ( | ) | ( | ) |
For the six months ended June 3 0 , | For the six months ended June 3 0 , | |||||||
2024 | 2023 | |||||||
(Unaudited) | ||||||||
Cash from operating activities | ( | ) | ||||||
Cash used in investing activities | ||||||||
Cash from financing activities | ||||||||
Effect of exchange rates on cash | ||||||||
Net cash flows | ( | ) | ||||||
Beginning cash balance | ||||||||
Ending cash balance |
(i) | Basis of presentation |
(ii) | Restricted Net Assets |
F-22 |
Three Months Ended June 3 0 , | ||||||||||||||||
2024 | 2023 | |||||||||||||||
Amount | of Revenue | Amount | of Revenue | |||||||||||||
Revenues | 3,888,893 | 100.00 | % | 4,541,690 | 100.00 | % | ||||||||||
Cost of revenues | 2,988,266 | 76.84 | % | 3,638,926 | 80.12 | % | ||||||||||
Gross profit | 900,627 | 23.00 | % | 902,764 | 20.00 | % | ||||||||||
Operating expenses | ||||||||||||||||
Selling expenses | 187,062 | 4.81 | % | 146,945 | 3.24 | % | ||||||||||
General and administrative expenses | 1,461,225 | 37.57 | % | 384,199 | 8.46 | % | ||||||||||
Research and development expenses | 419,588 | 10.79 | % | 210,104 | 4.63 | % | ||||||||||
Finance Cost | - | - | - | - | % | |||||||||||
Income from operations | (1,167,248 | ) | (30.01 | )% | 161,516 | 3.56 | % | |||||||||
Other Income (expenses) | ||||||||||||||||
Interest expense | (77,696 | ) | (2.00 | )% | (330,720 | ) | (7.28 | )% | ||||||||
Amortization of debt discounts | - | - | % | (522,288 | ) | (11.50 | )% | |||||||||
Extinguishment loss | - | - | % | - | - | % | ||||||||||
Other income | 250,248 | 6.43 | % | 39 4 | 0.0 1 | % | ||||||||||
Other expenses | - | - | % | - | - | % | ||||||||||
Exchange loss | - | - | % | (5,600 | ) | (0.12 | )% | |||||||||
Net Income before taxes | ) | (25.58 | )% | (696,69 8 | ) | (15.34 | )% | |||||||||
Income tax (expenses) | (2,799 | ) | (0.07 | )% | (389 | ) | (0.01 | )% | ||||||||
Net loss | (997,495 | ) | (25.65 | )% | (697,08 7 | ) | (15.35 | )% | ||||||||
Other comprehensive income | ||||||||||||||||
Foreign currency translation adjustment | 92,549 | 2.38 | % | 10,455 | (0.23 | )% | ||||||||||
Total comprehensive loss | (904,946 | ) | (23.27 | )% | (686,63 2 | ) | (15.12 | )% |
1 |
Three Months ended June 30, | ||||||||||||||||||||||||
2024 | 2023 | Fluctuation | ||||||||||||||||||||||
Amount | Proportion | Amount | Proportion | Amount | % | |||||||||||||||||||
Salaries and Social Insurance | 76,982 | 41.15 | % | 74,094 | 50.42 | % | 2,888 | 3.90 | % | |||||||||||||||
Freight insurance | 22,950 | 12.27 | % | 3,616 | 2.46 | % | 19,334 | 5.35 | % | |||||||||||||||
Rent | 15,770 | 8.43 | % | 9,740 | 6.63 | % | 6,030 | 0.62 | % | |||||||||||||||
Advertising fee | 44,662 | 23.88 | % | 8,854 | 6.03 | % | 35,808 | 4.04 | % | |||||||||||||||
Travel fee | 26,698 | 14.27 | % | 50,642 | 34.46 | % | (23,944 | ) | (47.28 | )% | ||||||||||||||
Others | - | 0.00 | % | (1 | ) | 0.00 | % | 1 | (100.00 | )% | ||||||||||||||
Total selling expenses | 187,062 | 100.00 | % | 146,945 | 100.00 | % | 40,117 | 0.27 | % |
Three Months ended June 30, | ||||||||||||||||||||||||
2024 | 2023 | Fluctuation | ||||||||||||||||||||||
Amount | Proportion | Amount | Proportion | Amount | % | |||||||||||||||||||
Salary and Social Insurance | 1,1 9,424 | 82 . 08 | % | 31,920 | 8.31 | % | 1,1 67,504 | 3,657 . 59 | % | |||||||||||||||
Service fees | 1 23,226 | 8 . 43 | % | 211,529 | 55.06 | % | (88,303 | ) | (41.75 | )% | ||||||||||||||
Royalty fee | 6,034 | 0.41 | % | 5,645 | 1.47 | % | 389 | 6.89 | % | |||||||||||||||
Entertainment expenses | 12,769 | 0.87 | % | 22,025 | 5.73 | % | (9,256 | ) | (42.02 | )% | ||||||||||||||
Taxation | 19,664 | 1.35 | % | 20,548 | 5.35 | % | (884 | ) | (4.30 | )% | ||||||||||||||
Depreciation and amortization | 23,959 | 1.64 | % | 34,153 | 8.89 | % | (10,194 | ) | (29.85 | )% | ||||||||||||||
Bad debt | - | - | % | - | 0.00 | % | - | 0.00 | % | |||||||||||||||
Rent | 8,659 | 0.59 | % | 9,045 | 2.35 | % | (386 | ) | (4.27 | )% | ||||||||||||||
Travel fee | 11,729 | 0.80 | % | 5,068 | 1.32 | % | 6,661 | 131.43 | % | |||||||||||||||
Office expenses | 35,242 | 2.41 | % | 22,928 | 5.97 | % | 12,314 | 53.71 | % | |||||||||||||||
Other | 20,519 | 1.40 | % | 21,338 | 5.55 | % | (819 | ) | (3.84 | )% | ||||||||||||||
Total general and administrative expenses | 1,461,225 | 100.00 | % | 384,199 | 100.00 | % | 1,077,026 | 280.33 | % |
Six Months Ended June 30, | ||||||||||||||||
2024 | 2023 | |||||||||||||||
Amount | of Revenue | Amount | of Revenue | |||||||||||||
Revenues | 8,484,424 | 100.00 | % | 7,276,623 | 100.00 | % | ||||||||||
Cost of revenues | 6,039,807 | 71.19 | % | 5,123,917 | 70.42 | % | ||||||||||
Gross profit | 2,444,617 | 29.00 | % | 2,152,706 | 29.58 | % | ||||||||||
Operating expenses | ||||||||||||||||
Selling expenses | 405,437 | 4.7 8 | % | 345,436 | 4.75 | % | ||||||||||
General and administrative expenses | 1,946,262 | 22.94 | % | 739,326 | 10.16 | % | ||||||||||
Research and development expenses | 932,185 | 10. 99 | % | 510,315 | 7.01 | % | ||||||||||
Finance Cost | - | - | - | - | ||||||||||||
Income from operations | (839,267 | ) | (9.89 | )% | 557,629 | 7.66 | % | |||||||||
Other Income (expenses) | ||||||||||||||||
Interest expense | (345,644 | ) | (4.07 | )% | (418,457 | ) | (5.75 | )% | ||||||||
Amortization of debt discounts | - | - | % | (645,576 | ) | (8.87 | )% | |||||||||
Extinguishment loss | - | - | % | - | % | |||||||||||
Other income | 250,248 | 2.95 | % | 552 | 0.01 | % | ||||||||||
Other expenses | - | - | % | - | - | % | ||||||||||
Exchange loss | - | - | % | - | - | % | ||||||||||
Net loss before taxes | (934,663 | ) | (11.02 | )% | (505,852 | ) | (6.95 | )% | ||||||||
Income tax (expenses) | (2,799 | ) | (0.03 | )% | (5,769 | ) | (0.08 | )% | ||||||||
Net loss | (937,462 | ) | (11.05 | )% | (511,621 | ) | (7.03 | )% | ||||||||
Other comprehensive income | ||||||||||||||||
Foreign currency translation adjustment | 162,251 | 1.91 | % | 384,191 | 5.28 | % | ||||||||||
Total comprehensive loss | (775,211 | ) | (9.14 | )% | (127,430 | ) | (1.75 | )% |
2 |
Six Months ended June 30, | ||||||||||||||||||||||||
2024 | 2023 | Fluctuation | ||||||||||||||||||||||
Amount | Proportion | Amount | Proportion | Amount | % | |||||||||||||||||||
Salaries and Social Insurance | 160,113 | 39.49 | % | 166,378 | 48.16 | % | (6,265 | ) | (3.77 | )% | ||||||||||||||
Freight insurance | 41,190 | 10.16 | % | 21,902 | 6.34 | % | 19,288 | 0.88 | % | |||||||||||||||
Rent | 27,694 | 6.83 | % | 16,367 | 4.74 | % | 11,327 | 0.69 | % | |||||||||||||||
Advertising fee | 122,505 | 30.22 | % | 40,562 | 11.74 | % | 81,943 | 2.02 | % | |||||||||||||||
Travel fee | 53,935 | 13.30 | % | 100,185 | 29.00 | % | (46,250 | ) | (46.16 | )% | ||||||||||||||
Others | - | 0.00 | % | 42 | 0.01 | % | (42 | ) | (100.00 | )% | ||||||||||||||
Total selling expenses | 405,437 | 100.00 | % | 345,436 | 100.00 | % | 60,001 | 0.17 | % |
Six Months ended June 30, | ||||||||||||||||||||||||
2024 | 2023 | Fluctuation | ||||||||||||||||||||||
Amount | Proportion | Amount | Proportion | Amount | % | |||||||||||||||||||
Salary and Social Insurance | 1,2 41,007 | 63 . 76 | % | 76,411 | 10.34 | % | 1,164,596 | 1,524 . 12 | % | |||||||||||||||
Service fees | 40 9,507 | 21.04 | % | 367,119 | 49.66 | % | 42,388 | 11 . 55 | % | |||||||||||||||
Royalty fee | 11,854 | 0.61 | % | 12,547 | 1.70 | % | (693 | ) | (5.52 | )% | ||||||||||||||
Entertainment expenses | 33,697 | 1.73 | % | 37,555 | 5.08 | % | (3,858 | ) | (10.27 | )% | ||||||||||||||
Taxation | 19,675 | 1.01 | % | 20,548 | 2.78 | % | (873 | ) | (4.25 | )% | ||||||||||||||
Depreciation and amortization | 48,592 | 2.50 | % | 69,128 | 9.35 | % | (20,536 | ) | (29.71 | )% | ||||||||||||||
Bad debt | - | 0.00 | % | - | 0.00 | % | - | 0.00 | % | |||||||||||||||
Rent | 17,613 | 0.90 | % | 20,422 | 2.76 | % | (2,809 | ) | (13.75 | )% | ||||||||||||||
Travel fee | 31,418 | 1.61 | % | 33,734 | 4.56 | % | (2,316 | ) | (6.87 | )% | ||||||||||||||
Office expenses | 70,612 | 3.63 | % | 48,136 | 6.51 | % | 22,476 | 46.69 | % | |||||||||||||||
Other | 62,287 | 3.20 | % | 53,726 | 7.27 | % | 8,561 | 15.93 | % | |||||||||||||||
Total general and administrative expenses | 1,946,262 | 100.00 | % | 739,326 | 100.00 | % | 1,206,936 | 163.25 | % |
3 |
For the six Months Ended | ||||||||
June 30, | ||||||||
2024 | 2023 | |||||||
Net cash provided by ( used in ) operating activities | $ | 175 , 674 | $ | (1,062,973 | ) | |||
Net cash used in investing activities | $ | (326,829 | ) | $ | (7,593 | ) | ||
Net cash (used in) provided by financing activities | $ | (889,558 | ) | $ | 58,058 |
4 |
5 |
6 |
Exhibit No. | Description | |
101.INS | Inline XBRL Instance Document | |
101.SCH | Inline XBRL Taxonomy Extension Schema Document | |
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document | |
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document | |
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document | |
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document | |
104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) |
* | Filed herewith. |
** | Furnished herewith. This certification is being furnished solely to accompany this report pursuant to 18 U.S.C. Section 1350, and is not being filed for purposes of Section 18 of the Exchange Act of 1934, as amended, and is not to be incorporated by reference into any filings of the Company, whether made before or after the date hereof, regardless of any general incorporation language in such filing. |
^ | Certain terms have been omitted pursuant to Item 601(b)(2)(ii) of Regulation S-K. The Registrant hereby undertakes to furnish copies of any of the terms upon request by the SEC. |
† | Exhibits and schedules to this Exhibit have been omitted pursuant to Regulation S-K Item 601(a)(5). The Registrant agrees to furnish supplementally a copy of any omitted schedule or exhibit to the SEC upon request. |
7 |
Northann Corp. | ||
Date: August 14, 2024 | By: | /s/ Lin Li |
Name: | Lin Li | |
Title: | Chief Executive Officer | |
(Principal Executive Officer) | ||
Date: August 14, 2024 | By: | /s/ Sunny S. Prasad |
Name: | Sunny S. Prasad | |
Title: | Interim Chief Financial Officer | |
(Principal Accounting and Financial Officer) |
8 |