Exhibit 99.1
Global Mofy Metaverse Reports Record 2023 Financial Year Results
Company to Host Earnings Conference Call on Thursday, February 1,
2024, at 8.30 am ET
| - | Record Revenues of $26.9 million, up 56.4% from year ago, the
highest revenue in company’s history |
| - | Gross profit and net income both reached historical high of
$14.5 million and $6.6 million, respectively; with a 54% gross marginBeijing, CHINA, Jan. 30, 2024 (GLOBE NEWSWIRE) -- Global Mofy Metaverse
Limited (the “Company” or “Global Mofy Metaverse”) (NASDAQ: GMM), a technology solutions provider engaged in virtual
content production and digital assets development for the metaverse industry, today reported its financial results for the fiscal year
ended September 30, 2023. |
Fiscal Year 2023 Financial Highlights:
| ● | Total
revenues increased by $9.7 million or 56.4%, from $17.2 million for FY 2022, to $26.9
million for FY 2023. |
| ● | Gross
profit increased by $10.4 million, 253.1% from $4.1 million for FY 2022 to $14.5 million
for FY 2023. |
| ● | Gross
margin improved from 23.9% for FY2022 to 54.0% for FY2023. |
| ● | Net
income grew significantly to $6.6 million with earnings per share of $0.26 in FY 2023,
as compared to a net loss of $0.3 million with loss per share of $0.01 for the same period
of last year. |
| ● | Revenue
from high margin 3D Digital Asset Licensing business up 186.3% YoY to $11.5 million,
accounting for 42.8% of the total sales. |
| ● | Intangible
Asset totaled about $6.5 million as of FY 2023, v.s. $0 million as of FY2022. |
| ● | In
October 2023, the Company completed its $6 million Initial Public Offering on NASDAQ. |
| | |
For the Years Ended September 30, | |
| (in $ millions, except earnings per share; differences due to rounding) | |
2023 | | |
2022 | | |
% Change | |
| Revenues | |
$ | 26.9 | | |
$ | 17.2 | | |
| 56.4 | % |
| Gross profit | |
| 14.5 | | |
| 4.1 | | |
| 253.1 | % |
| Gross margin | |
| 54.0 | % | |
| 23.9 | % | |
| 30 percentage point | |
| Income from operations | |
| 7.6 | | |
| (0.3 | ) | |
| 2760.6 | % |
| Net income | |
| 6.6 | | |
| (0.3 | ) | |
| 2569.9 | % |
| Net income per share – Basic and Diluted | |
| 0.26 | | |
| (0.01 | ) | |
| 2700.0 | % |
Haogang Yang, CEO of the Company commented, “In
fiscal year 2023, we achieved exceptional results, highlighted by significant milestones. Our revenue reached an all-time high, primarily
driven by the rapid growth of our digital asset licensing business and the resurgence of the virtual production industry. Total revenues
increased by 56.4% to $26.9 million, marking a new record for our Company.”
“We strategically optimized our revenue
structure, with digital asset licensing-related revenue accounting for 42.8% of our total revenue. This high-margin sector experienced
a remarkable growth of 186.3% compared to the previous year.
“Our focus on research and development yielded
impressive outcomes, as our digital asset innovations gained recognition and adoption in the metaverse industry. We successfully capitalized
on these achievements, converting them into revenue-generating assets, and reducing R&D costs.
“We also achieved historic highs in gross
profit and gross profit margin, driven by our expansion in the digital asset application field and our leading position in the metaverse
industry.”
“Lastly, our net income soared to $6.6 million,
a significant increase compared to the previous year’s net loss. This remarkable growth was propelled by the optimization of our revenue
structure and the increasing proportion of high-margin digital asset licensing business.
“With successfully completion of our initial
public offerings with $6 million in October 2023 and follow-on offerings of $10 million early January 2024, we believe we have strong
balance sheet and sufficient working capital to support our business growth for year 2024.
“In conclusion, our Company’s exceptional
performance in fiscal year 2023, with record revenue, optimized revenue structure, successful R&D capitalization, unprecedented gross
profit, and a substantial increase in net profit, positions us for continued success. We remain committed to the development of digital
assets and leveraging our position in the metaverse industry to drive sustained growth and create substantial value.”
Fiscal Year 2023 Financial Results:
Revenues
Total revenues increased by $9.7 million or 56.4%,
from $17.2 million for the year ended September 30, 2022, to $26.9 million for the year ended September 30, 2023. The following table
sets forth a breakdown of our revenues:
| | |
For the Years Ended September 30, | |
| | |
2023 | | |
2022 | | |
Variance | |
| | |
Amount | | |
Amount | | |
Amount | | |
% | |
| Virtual technology service | |
$ | 15.4 | | |
$ | 12.5 | | |
$ | 2.8 | | |
| 22.7 | % |
| Digital marketing | |
| — | | |
| 0.6 | | |
| (0.6 | ) | |
| (100 | )% |
| Digital asset development and others | |
| 11.5 | | |
| 4.0 | | |
| 7.5 | | |
| 186.3 | % |
| Total | |
$ | 26.9 | | |
$ | 17.2 | | |
$ | 9.7 | | |
| 56.4 | % |
| - | Virtual technology service revenues accounted for 57.2% and 72.9% of total revenues in fiscal years 2023
and 2022, respectively. Revenue from virtual technology service increased by $2.8 million, or 22.7%, from fiscal year 2022 to fiscal year
2023, driven by the recovery of the Chinese movie and TV industries. |
| - | Revenues from digital marketing accounted for 0.0% and 3.7% of total revenues in fiscal years 2023 and
2022, respectively, due to adjusted business mechanisms and a focus on higher-margin lines. |
| - | Revenues from digital asset development and others accounted for 42.8% and 23.4% of total revenues in
fiscal years 2023 and 2022, respectively. Revenue from digital asset development increased by $7.5 million, or 186.3%, from fiscal year
2022 to fiscal year 2023, driven by the popularity of the metaverse concept and expansion into game production and cultural tourism businesses. |
Cost of revenues
Total cost of revenues decreased from $13.1 million
for the year ended September 30, 2022, to $12.4 million for the year ended September 30, 2023.
| - | The cost of revenues for virtual technology service increased by $0.1 million, or 1.1%, from $9.5 million
for the fiscal year 2022 to $9.6 million for the fiscal year 2023. It includes outsourcing costs, staff costs, and overhead related to
content production. The cost of revenues was varied in accordance with different projects. |
| - | The cost of revenues for digital marketing was $nil in fiscal year 2023 primarily due to we do not recognize
revenue for this period. In 2022, we entered into agency agreements with customers, eliminating significant costs for ad inventories and
advertising services. |
| - | The cost of revenues for digital asset development and others decreased by $0.4 million, or 14.1%, from
$3.2 million for the fiscal year 2022 to $2.7 million for the fiscal year 2023.The decrease was mainly due to the Company acquired less
complex digital assets from external suppliers in the current fiscal year which reduced the overall development and related cost. |
Gross profit and margin
As a result of changes in revenue and cost of
revenues, gross profit increased by $10.4 million, or 253.1% from $4.1 million for the year ended September 30, 2022 to $14.5 million
for the year ended September 30, 2023. The following table sets forth a breakdown of our gross profit and gross margin by services offered
for the years ended September 30, 2023 and 2022:
| | |
For the Years Ended September 30, | |
| | |
2023 | | |
2022 | | |
Variance | |
| | |
Gross profit | | |
GM% | | |
Gross profit | | |
GM% | | |
Amount | | |
% | |
| Virtual technology service | |
$ | 5.8 | | |
| 37.5 | % | |
$ | 3.0 | | |
| 24.1 | % | |
$ | 2.7 | | |
| 90.6 | % |
| Digital marketing | |
| — | | |
| — | | |
| 0.3 | | |
| 41.4 | % | |
| (0.3 | ) | |
| (100.0 | )% |
| Digital asset development and others | |
| 8.8 | | |
| 76.2 | % | |
| 0.8 | | |
| 20.6 | % | |
| 7.9 | | |
| 957.0 | % |
| Total | |
$ | 14.5 | | |
| 54 | % | |
$ | 4.1 | | |
| 23.9 | % | |
$ | 10.4 | | |
| 253.1 | % |
| - | The gross margin increased from 23.9% to 54% in fiscal year 2023. The improvement was driven by higher
gross profit margins for virtual technology services, which increased from 24.1% to 37.5%. Additionally, the gross profit margin for digital
asset development and others was 76.2% in fiscal year 2023, reflecting the higher margins typically seen in this business line. The increase
in gross margin for both segments was attributed to completing higher-margin projects and selling processed digital assets. |
Operating expenses
Operating expenses rose by $2.5 million, or 56.4%,
from $4.4 million for the fiscal year 2022 to $6.9 million for the fiscal year 2023. This increase was mainly driven by a $2.0 million
rise in general and administrative expenses and increase of $0.3 million in research and development expenses.
| - | Selling expenses, which include salary and benefit expenses for sales and marketing personnel, increased
by $0.1 million, or 91.5%, from $0.2 million for the FY2022 to $0.3 million for FY2023. These expenses represent a small portion of total
revenues and are not directly correlated with revenue growth. |
| - | General and administrative (“G&A”) expenses, including salaries, professional service
fees, and office expenses, increased by $2.0 million, or 192.5%, from $1.0 million for FY2022 to $3.0 million for FY2023. This increase
was primarily due to higher professional service fees related to the initial public offering, amortization of intangible assets, and provision
for doubtful accounts. G&A expenses represent 11.3% and 6.1% of total revenues for the years ended September 30, 2023 and 2022, respectively. |
| - | Research and development expenses, covering employee salaries, overhead, and outsourced development costs,
increased by $0.3 million, or 10.5%, to $3.5 million for the FY2023, from $3.2 million for the same period in 2022. This slight increase
is primarily due to less ongoing research and development projects as we have substantially completed our initial research of the digital
assets related techniques, and commenced development stage. |
Net income
As a result of the foregoing, we recorded a net
income of $6.6 million for the year ended September 30, 2023, as compared to a net loss of $0.3 million for the year ended September 30,
2022.
Recent developments
On January 11, 2024, the Company announced its
strategic investment in MERAEDU, marking its entrance into the vocational education sector. The RMB 8 million funding round was led by
the Anji County Government Industrial Guidance Fund, with Global Mofy Metaverse as a co-investor.
On January 04, 2024, the Company announced the
registration of its subsidiary, Global Mofy Technology LLC, in California, the United States, aiming to expand its virtual content production
business overseas, and to delve into the overseas digital entertainment markets.
On December 29, 2023, the Company entered into
securities purchase agreements with institutional investors for a follow-on offering of $10 million, resulting in the issuance of 1,379,313
ordinary shares and warrants. This increased the total number of issued and outstanding ordinary shares to 28,545,468.
On December 19, 2023, the Company announced the
success of “The Future Handbook,” an artificial intelligence-themed short film series produced in collaboration with bilibili.
This collection of multi-universe sci-fi films is directed by promising young directors, exploring the captivating domain of AI.
On December 06, 2023, the Company has been honored
with the prestigious “Most Valuable Investment Chinese Concept Stock” award at the 8th Zhitong Finance Capital Market Annual
Conference and Listed Company Awards Ceremony, held in Shenzhen, China.
On November 24, 2023, the Company and ELLE CHINA,
ELLE MEN CHINA have forged a long-term partnership, embarking on an eagerly anticipated collaboration that promises mutual promotional
benefits and an array of exciting projects in the realm of advertising and beyond.
In October 2023, the Company closed its initial
public offering, issuing 1,240,000 ordinary shares. The underwriter exercised its over-allotment option for an additional 40,000 ordinary
shares. After the IPO, the total number of issued and outstanding ordinary shares reached 27,166,155.
Earnings Conference Call
The Company’s management team including
CEO, CFO and CTO will host a conference call to discuss its 2023 annual results at 8.30 am US Eastern Time on Thursday February 1, 2024.
To attend the conference call, please use the information below.
Date/Time 8.30 am US Eastern Time (5.30 am US
Pacific Time/9.30 pm Beijing Time) on Thursday, February 1, 2024.
Conference Title: Global Mofy Metaverse Fiscal Year 2023 Earnings Call
To attend the conference call, please dial in via:
Beijing +86 (10) 58084199 (Chinese)
Beijing +86 (10) 58084166 (English)
China 400 810 8228 (Chinese)
Hong Kong +852 30051313
Hong Kong +852 30051355 (Chinese)
U.S. +1 646 2543594 (English)
The meeting password is 640770 for all participants
dialing in.
This conference call will be broadcast live on the Internet and can
be accessed by all interested parties at:
https://roadshowing.com/roadshowing/info.html?id=90435&lang=en.
The website login password is 265036. Please access the link at least
15 minutes prior to the start of the call to register, download, and install any necessary audio software.
About Global Mofy Metaverse Limited
Headquartered at Beijing, Global Mofy Metaverse
Limited is a technology solutions provider engaged in virtual content production, digital marketing, and digital assets development for
the metaverse industry. Utilizing its proprietary “Mofy Lab” technology platform which consists of cutting-edge three-dimensional
(“3D”) rebuilt technology and artificial intelligence (“AI”) interactive technology, the Company creates 3D high
definition virtual version of a wide range of physical world objects such as characters, objects and scenes which can be used in different
applications such as movies, TV series, AR/VR, animation, adverting and gaming. Global Mofy Metaverse is one of the leading digital asset
banks in China, which consists of more than 30,000 high precision 3D digital assets. With its strong technology platform and industry
track record, Global Mofy Metaverse is able to attract high-profile customers and earn repeat business. The Company primarily operates
in two lines of business (i) virtual technology service and (ii) digital asset development and others. We had another business line of
digital marketing in the fiscal years ended September 30, 2022 and 2021. For more information, please visit: www.globalmofy.cn/, ir.globalmofy.cn.
Forward-Looking Statement
This press release contains forward-looking statements.
Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying
assumptions and other statements that are other than statements of historical facts. When the Company uses words such as “may, “will,
“intend,” “should,” “believe,” “expect,” “anticipate,” “project,” “estimate”
or similar expressions that do not relate solely to historical matters, it is making forward-looking statements. These forward-looking
statements include, without limitation, the Company’s statements regarding the expected trading of its Ordinary Shares on the Nasdaq Capital
Market and the closing of the Offering. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties
that may cause the actual results to differ materially from the Company’s expectations discussed in the forward-looking statements. These
statements are subject to uncertainties and risks including, but not limited to, the uncertainties related to market conditions and the
completion of the initial public offering on the anticipated terms or at all, and other factors discussed in the “Risk Factors”
section of the registration statement filed with the SEC. For these reasons, among others, investors are cautioned not to place undue
reliance upon any forward-looking statements in this press release. Additional factors are discussed in the Company’s filings with the
SEC, which are available for review at www.sec.gov. The Company undertakes no obligation to publicly revise these forward-looking statements
to reflect events or circumstances that arise after the date hereof.
For more information, please contact:
Company
Global Mofy Metverse Ltd.
Investor Relations Department
Email: ir@mof-vfx.com
Investor Relations
WFS Investor Relations Inc.
Janice Wang, Managing Partner
Email: services@wealthfsllc.com
Phone: +86 13811768599
+1 628 283 9214
GLOBAL MOFY METAVERSE LIMITED
CONSOLIDATED BALANCE SHEETS
(Expressed in U.S. Dollars, except for the number of shares)
| | |
As of September 30, | |
| | |
2023 | | |
2022 | |
| | |
US$ | | |
US$ | |
| ASSETS | |
| | |
| |
| Current Assets | |
| | |
| |
| Cash | |
$ | 10,437,580 | | |
$ | 1,136,064 | |
| Short-term investments | |
| 780,000 | | |
| — | |
| Accounts receivable, net | |
| 3,286,330 | | |
| 2,101,665 | |
| Accounts receivable – related party | |
| — | | |
| 298,587 | |
| Advance to vendors | |
| 2,593,887 | | |
| 1,543,294 | |
| Due from related party | |
| — | | |
| 182,751 | |
| Loans receivable – current | |
| 287,829 | | |
| 295,213 | |
| Prepaid expenses and other current assets, net | |
| 507,336 | | |
| 395,842 | |
| Total current assets | |
| 17,892,962 | | |
| 5,953,416 | |
| | |
| | | |
| | |
| Non-current assets | |
| | | |
| | |
| Property and equipment, net | |
| 34,431 | | |
| 37,806 | |
| Intangible assets | |
| 6,505,792 | | |
| — | |
| Operating lease right-of-use assets | |
| 954,771 | | |
| 147,099 | |
| Loans receivable – noncurrent | |
| 447,505 | | |
| 458,986 | |
| Advance to vendor – noncurrent | |
| 1,020,874 | | |
| 1,800,000 | |
| Prepaid expenses and other non-current assets, net | |
| 262,986 | | |
| 129,222 | |
| Total non-current assets | |
| 9,226,359 | | |
| 2,573,113 | |
| Total Assets | |
$ | 27,119,321 | | |
$ | 8,526,529 | |
| | |
| | | |
| | |
| LIABILITIES AND EQUITY | |
| | | |
| | |
| Current Liabilities | |
| | | |
| | |
| Short-term bank loans | |
$ | 2,442,609 | | |
$ | 1,532,073 | |
| Loans from third parties | |
| 22,615 | | |
| 108,245 | |
| Accounts payable | |
| 531,091 | | |
| 952,249 | |
| Advance from customers | |
| 345,838 | | |
| 1,154,100 | |
| Tax payable | |
| 1,555,059 | | |
| 474,370 | |
| Accrued expenses and other liabilities | |
| 555,440 | | |
| 327,641 | |
| Operating lease liabilities – current | |
| 293,040 | | |
| 120,418 | |
| Total current liabilities | |
| 5,745,692 | | |
| 4,669,096 | |
| | |
| | | |
| | |
| Non-current Liabilities | |
| | | |
| | |
| Loan from third party, noncurrent | |
| — | | |
| 107,542 | |
| Operating lease liabilities – noncurrent | |
| 556,674 | | |
| — | |
| Total non-current liabilities | |
| 556,674 | | |
| 107,542 | |
| Total Liabilities | |
| 6,302,366 | | |
| 4,776,638 | |
| | |
| | | |
| | |
| Commitments | |
| | | |
| | |
| | |
| | | |
| | |
| Equity: | |
| | | |
| | |
| Ordinary shares (US$0.000002 par value, 25,000,000,000 shares authorized, 25,926,155 and 23,618,037 shares issued and outstanding as of September 30, 2023 and 2022, respectively)* | |
| 52 | | |
| 47 | |
| Additional paid-in capital | |
| 16,035,229 | | |
| 5,112,181 | |
| Statutory reserves | |
| 368,271 | | |
| 39,620 | |
| Accumulated earnings (deficit) | |
| 5,158,115 | | |
| (1,065,072 | ) |
| Accumulated other comprehensive (loss) | |
| (604,182 | ) | |
| (193,324 | ) |
| Total Global Mofy Metaverse Limited shareholders’ equity | |
| 20,957,485 | | |
| 3,893,452 | |
| Non-controlling interests | |
| (140,530 | ) | |
| (143,561 | ) |
| Total equity | |
| 20,816,955 | | |
| 3,749,891 | |
| Total liabilities and equity | |
$ | 27,119,321 | | |
$ | 8,526,529 | |
GLOBAL MOFY METAVERSE LIMITED
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(Expressed in U.S. Dollars, except for the number of shares)
| | |
For the Years Ended September 30, | |
| | |
2023 | | |
2022 | | |
2021 | |
| | |
US$ | | |
US$ | | |
US$ | |
| Revenue | |
| | |
| | |
| |
| Revenue from third parties | |
$ | 26,889,911 | | |
$ | 14,540,300 | | |
$ | 14,268,184 | |
| Revenue from related parties | |
| — | | |
| 2,647,993 | | |
| — | |
| Revenue | |
| 26,889,911 | | |
| 17,188,293 | | |
| 14,268,184 | |
| Cost of revenue | |
| (12,357,934 | ) | |
| (13,072,732 | ) | |
| (10,990,076 | ) |
| Gross profit | |
| 14,531,977 | | |
| 4,115,561 | | |
| 3,278,108 | |
| | |
| | | |
| | | |
| | |
| Operating expenses: | |
| | | |
| | | |
| | |
| Selling expenses | |
| (294,587 | ) | |
| (153,822 | ) | |
| (143,708 | ) |
| General and administrative expenses | |
| (3,046,037 | ) | |
| (1,041,330 | ) | |
| (1,077,102 | ) |
| Research and development expenses | |
| (3,546,155 | ) | |
| (3,207,759 | ) | |
| (661,134 | ) |
| Total operating expenses | |
| (6,886,779 | ) | |
| (4,402,911 | ) | |
| (1,881,944 | ) |
| | |
| | | |
| | | |
| | |
| Income (loss) from operations | |
| 7,645,198 | | |
| (287,350 | ) | |
| 1,396,164 | |
| | |
| | | |
| | | |
| | |
| Other (expenses) income: | |
| | | |
| | | |
| | |
| Interest income | |
| 41,230 | | |
| 42,948 | | |
| 42,690 | |
| Interest expenses | |
| (126,206 | ) | |
| (74,888 | ) | |
| (25,183 | ) |
| Other income, net | |
| 89,124 | | |
| 54,049 | | |
| 10,488 | |
| Total other income, net | |
| 4,148 | | |
| 22,109 | | |
| 27,995 | |
| | |
| | | |
| | | |
| | |
| Income (loss) before income taxes | |
| 7,649,346 | | |
| (265,241 | ) | |
| 1,424,159 | |
| Income tax expense | |
| (1,098,087 | ) | |
| — | | |
| (9,992 | ) |
| Net income (loss) | |
| 6,551,259 | | |
| (265,241 | ) | |
| 1,414,167 | |
| Net (loss) income attributable to non-controlling interest | |
| (579 | ) | |
| 1,981 | | |
| (2,295 | ) |
| Net income (loss) attributable to Global Mofy Metaverse Limited | |
$ | 6,551,838 | | |
$ | (267,222 | ) | |
$ | 1,416,462 | |
| | |
| | | |
| | | |
| | |
| Comprehensive (loss) income | |
| | | |
| | | |
| | |
| Net income (loss) | |
$ | 6,551,259 | | |
$ | (265,241 | ) | |
$ | 1,414,167 | |
| Foreign currency translation (loss) gain | |
| (407,248 | ) | |
| (198,124 | ) | |
| 7,983 | |
| Total comprehensive income (loss) | |
| 6,144,011 | | |
| (463,365 | ) | |
| 1,422,150 | |
| Comprehensive income attributable to non-controlling interests | |
| 3,031 | | |
| 2,304 | | |
| 4,259 | |
| Comprehensive income (loss) attributable to Global Mofy Metaverse Limited | |
$ | 6,140,980 | | |
$ | (465,669 | ) | |
$ | 1,417,891 | |
| | |
| | | |
| | | |
| | |
| Earnings (loss) per common share | |
| | | |
| | | |
| | |
| – Basic and diluted* | |
$ | 0.26 | | |
$ | (0.01 | ) | |
$ | 0.06 | |
| | |
| | | |
| | | |
| | |
| Weighted average number of common shares outstanding | |
| | | |
| | | |
| | |
| – Basic and diluted* | |
| 25,021,246 | | |
| 23,441,484 | | |
| 23,015,777 | |
GLOBAL MOFY METAVERSE LIMITED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Expressed in U.S. Dollars)
| | |
For the Years Ended September 30, | |
| | |
2023 | | |
2022 | | |
2021 | |
| | |
US$ | | |
US$ | | |
US$ | |
| Cash flows from operating activities | |
| | |
| | |
| |
| Net income (loss) | |
$ | 6,551,259 | | |
$ | (265,241 | ) | |
$ | 1,414,167 | |
| Adjustments to reconcile net income (loss) to net cash used in operating activities: | |
| | | |
| | | |
| | |
| Depreciation | |
| 439,279 | | |
| 27,852 | | |
| 23,140 | |
| Amortization of operating lease right-of-use assets | |
| 184,427 | | |
| 151,863 | | |
| 147,482 | |
| Provision for doubtful accounts, net of recovery | |
| 1,204,551 | | |
| (16,084 | ) | |
| 21,422 | |
| | |
| | | |
| | | |
| | |
| Changes in operating assets and liabilities: | |
| | | |
| | | |
| | |
| Accounts receivable, net | |
| (1,684,402 | ) | |
| 3,565,011 | | |
| (5,302,583 | ) |
| Accounts receivable – related party | |
| 301,136 | | |
| (324,116 | ) | |
| — | |
| Advances to vendors | |
| (766,921 | ) | |
| (3,356,195 | ) | |
| 662,025 | |
| Prepaid expenses and other current assets | |
| 1,518,313 | | |
| (16,901 | ) | |
| (323,016 | ) |
| Prepaid expenses and other noncurrent assets | |
| (65,892 | ) | |
| 61,142 | | |
| — | |
| Accounts payable | |
| (411,037 | ) | |
| (1,823,331 | ) | |
| 1,405,228 | |
| Advance from customers | |
| (809,364 | ) | |
| 738,642 | | |
| 49,877 | |
| Taxes payable | |
| 1,129,748 | | |
| 29,585 | | |
| 485,017 | |
| Accrued expenses and other liabilities | |
| (1,549,218 | ) | |
| 281,003 | | |
| 33,716 | |
| Lease liabilities | |
| (265,773 | ) | |
| (190,457 | ) | |
| (89,756 | ) |
| Net cash provided by (used in) operating activities | |
| 5,776,106 | | |
| (1,137,227 | ) | |
| (1,473,281 | ) |
| | |
| | | |
| | | |
| | |
| Cash flows from investing activities | |
| | | |
| | | |
| | |
| Purchase of property and equipment | |
| (9,782 | ) | |
| (28,839 | ) | |
| (51,683 | ) |
| Purchase of intangible assets | |
| (7,156,636 | ) | |
| — | | |
| — | |
| Purchase of short-term investments | |
| (750,000 | ) | |
| — | | |
| — | |
| Collection of loans to related parties | |
| 184,311 | | |
| — | | |
| 112,644 | |
| Loans to third parties | |
| (2,400,000 | ) | |
| — | | |
| (501,752 | ) |
| Loans to related party | |
| — | | |
| (198,376 | ) | |
| — | |
| Collection of loans to third parties | |
| 2,400,000 | | |
| 61,039 | | |
| 359,602 | |
| Net cash used in investing activities | |
| (7,732,107 | ) | |
| (166,176 | ) | |
| (81,189 | ) |
| | |
| | | |
| | | |
| | |
| Cash flows from financing activities | |
| | | |
| | | |
| | |
| Borrowings from third parties | |
| (217,629 | ) | |
| 234,237 | | |
| 1,060,364 | |
| Repayments of third parties loans | |
| 23,393 | | |
| (1,243,667 | ) | |
| — | |
| Proceeds from short-term bank loans | |
| 2,526,658 | | |
| 1,785,143 | | |
| 1,059,849 | |
| Repayments of short-term bank loans | |
| (1,545,149 | ) | |
| (1,174,487 | ) | |
| (302,583 | ) |
| Deferred offering cost | |
| (70,867 | ) | |
| (131,634 | ) | |
| — | |
| Capital contributions | |
| 10,923,053 | | |
| 2,000,000 | | |
| 805,722 | |
| Net cash provided by financing activities | |
| 11,639,459 | | |
| 1,469,592 | | |
| 2,623,352 | |
| Effect of foreign exchange rate on cash | |
| (381,942 | ) | |
| (118,819 | ) | |
| 11,054 | |
| Net increase in cash | |
| 9,301,516 | | |
| 47,370 | | |
| 1,079,936 | |
| Cash at the beginning of the year | |
| 1,136,064 | | |
| 1,088,694 | | |
| 8,758 | |
| Cash at the end of the year | |
$ | 10,437,580 | | |
$ | 1,136,064 | | |
$ | 1,088,694 | |
| | |
| | | |
| | | |
| | |
| Supplemental disclosures of cash flow information: | |
| | | |
| | | |
| | |
| Income taxes paid | |
$ | 258 | | |
$ | — | | |
| 739 | |
| Interest paid | |
$ | 126,206 | | |
$ | 74,888 | | |
$ | 25,183 | |
| | |
| | | |
| | | |
| | |
| Non-cash transactions of investing and financing activities: | |
| | | |
| | | |
| | |
| Initial recognition of right-of-use assets | |
$ | 1,022,582 | | |
$ | — | | |
$ | 313,741 | |
10
