Singularity Future Technology Ltd
For the period ended Dec 31, 2024. Filed Feb 19, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Dec 31, 2024 · Filed Feb 19, 2025
SGLY$0.40-4.7%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-09-30; filed 2024-11-14.
0001213900-24-098044
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-12-31; filed 2025-02-19.
0001213900-25-015071
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 80 previous paragraphs and 96 current paragraphs.
36 unchanged; 21 reworded; 30 added; 23 removed; 0 previous and 9 current paragraphs rearranged.
Tables are not compared: 9 previous and 14 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (30)
Current report
On November 16, 2024, Mr. Ziyun Liu resigned from his position as the chief executive officer of the Company and as a director of the board of directors of the Company. Mr. Ziyun Liu’s resignation was for personal reasons and was not the result of any disagreement with the Company on any matter relating to the Company’s operations, policies or practices.
Current report
On November 18, 2024, the Nominating and Corporate Governance Committee of the Board nominated and the Board appointed Mr. Jinhao Pang as the manager of the Technology Department of the Company and an executive director of the Board. There is no family relationship between Mr. Pang and any of our other officers and directors.
Current report
Our gross margin was 2.2% and (1.6%) for the three months ended December 31, 2024 and 2023, respectively. This increase in gross margin was mainly due to the introduction of lower priced suppliers during this period, resulting in a slight decrease in unit costs.
Current report
Provision for credit losses, net
Current report
Our total bad debt expenses amounted to nil and $6,992 for the three months ended December 31, 2024 and 2023, mainly due to the provision for a few uncollectable accounts receivable.
Current report
Stock-based Compensation
Current report
Stock-based compensation was nil for the three months ended December 31, 2024 and 2023.
Current report
(Loss) Gain from disposal of subsidiary
Current report
On September 12, 2024, the Company dissolved its U.S. subsidiary SG link LLC. Total loss from disposal was approximately $1,030. This disposal was not presented as discontinued operations because it did not represent any strategic change in the Company’s operations.
Current report
On October 24, 2023, the Company dissolved its Ningbo Saimeinuo Web Technology Ltd. subsidiary. Total gain from disposal was approximately $62,384. This disposal was not presented as discontinued operations because it did not represent any strategic change in the Company’s operations.
Current report
Other Incomes (Expenses), Net
Current report
Other income net was $348,207 for the three months ended December 31, 2024, as compared to other expense of $6,494 for the same period in fiscal 2023. Gain on disposal of ROU of $354,108 is recognized this period due to the early termination of a lease agreement in Great Neck, New York, accordingly, the impairment of ROU recognized in previous years is reversed.
Current report
Comparison of the Six Months Ended December 31, 2024 and 2023
Current report
Revenues
Current report
Cost of Revenues
Current report
Operating Costs and Expenses
Current report
Operating costs and expenses decreased by $2,733,440 to $2,685,985 in the six months ended December 31, 2024, or approximately 50.4% from $5,419,425 for six months ended December 31, 2023. This decrease was mainly due to the decrease in general and administrative expenses, provision for credit losses, net and impairment loss of cryptocurrencies as more fully discussed below.
Current report
General and Administrative Expenses
Current report
Selling Expenses
Current report
Provision for credit losses, net
Current report
Impairment Loss of Cryptocurrencies
Current report
Stock-based Compensation
Current report
Stock-based compensation was nil for the six months ended December 31, 2024 and 2023.
Current report
(Loss) Gain from disposal of subsidiary
Current report
On September 12, 2024, the Company dissolved its U.S. subsidiary SG link LLC. Total loss from disposal was approximately $1,030. This disposal was not presented as discontinued operations because it did not represent any strategic change in the Company’s operations.
Current report
On October 24, 2023, the Company dissolved its Ningbo Saimeinuo Web Technology Ltd. subsidiary. Total gain from disposal was approximately $62,384. This disposal was not presented as discontinued operations because it did not represent any strategic change in the Company’s operations.
Current report
Other Incomes (Expenses), Net
Current report
Other income net was $348,207 for the three months ended December 31, 2024, as compared to other expense of $6,494 for the same period in fiscal 2023. Gain on disposal of ROU $354,108 is recognized due to the early termination of a lease agreement in Great Neck, New York,accordingly, the impairment of ROU recognized in previous years is reversed.
Current report
Taxes
Removed paragraphs (23)
Previous report
We are currently exploring new business opportunities while continuing to provide freight logistics services. On September 19, 2023, the Company formed a 100% owned subsidiary, New Energy Tech Limited. (“New Energy”) in New York for to engage in the solar panel commodity trading business (the “Solar Panel Business”). In August 2024, New Energy entered into a joint venture development agreement with Market One Services Corp., a Wyoming corporation, to establish a joint venture to carry out the Solar Panel Business.
Previous report
The Company decided to develop the Solar Panel Business based on its insight into the broad prospects of new energy. In the decision-making process, the needs of environmental protection and market potential were fully considered. This new Solar Panel Business complements our existing businesses and will expand the company’s sustainable development.
Previous report
Special Committee Investigation
Previous report
As previously disclosed, on May 6, 2022, the Board of Directors of the Company (the “Board”) formed a special committee (the “Special Committee”) to investigate claims of alleged fraud, misrepresentation, and inadequate disclosure related to the Company and certain of its management personnel raised in a report, published by Hindenburg Research on May 4, 2022 (the “Hindenburg Report”). On February 23, 2023, the Board approved the dissolution of the Special Committee upon conclusion of the committee’s investigation. On July 3, 2023, the Company entered into settlement and release agreement with Mr. Yang Jie, the Company’s former CEO, which fully resolved his claims against the Company.
Previous report
Executive Changes
Previous report
On July 3, 2023, Mr. Tieliang Liu resigned as a director the Company and a member of the Compensation Committee, the Audit Committee, and the Nominating and Corporate Governance Committee.
Previous report
On July 10, 2023, Company terminated the employment of its Chief Operating Officer, Jing Shan, with cause. The termination was effective immediately.
Previous report
On July 31, 2023, the Company elected Mr. Zhongliang Xie as a Class II independent director to serve until the annual meeting of stockholders for the fiscal year 2023, to fill the vacancy on the Board resulting from the resignation of Mr. Tieliang Liu. The Board appointed Mr. Xie to serve as Chair of the Audit Committee, a member of the Compensation Committee and a member of the Nominating and Corporate Governance Committee.
Previous report
On September 21, 2023, Mr. Heng Wang resigned as a director of the Company and a member of the Compensation Committee, the Audit Committee, and the Nominating and Corporate Governance Committee.
Previous report
On September 25, 2023, the Company elected Mr. Xu Zhao as a Class I independent director to serve until the annual meeting of stockholders for the fiscal year 2022, to fill the vacancy on the Board resulting from the resignation of Mr. Heng Wang. The Board appointed Mr. Zhao to serve as a member of the Audit Committee, a member of the Compensation Committee and Chair of the Nominating and Corporate Governance Committee.
Previous report
On September 28, 2023, Ms. Ling Jiang resigned as a director of the Company and a member of the Compensation Committee, the Audit Committee, and the Nominating and Corporate Governance Committee.
Previous report
On October 6, 2023, the Company elected Ms. Yangyang Xu as a Class III independent director to serve until the annual meeting of stockholders for the fiscal year 2024, to fill the vacancy resulting from the resignation of Ms. Ling Jiang. The Board appointed Ms. Xu to serve as Chairwoman of the Compensation Committee and as a member of the Audit Committee and the Nominating and Corporate Governance Committee.
Previous report
On July 31, 2024, Mr. Haotian Song resigned from his position as a vice president of the Company and as a director of the Board.
Previous report
Nasdaq Listing Deficiencies
Previous report
On January 5, 2023, the Company received a deficiency notice from Nasdaq informing the Company that its common stock, no par value, fails to comply with the $1 minimum bid price required for continued listing on The Nasdaq Capital Market under Nasdaq Listing Rule 5550(a)(2) based upon the closing bid price of the common stock for the 30 consecutive business days prior to the date of the notice from Nasdaq. The Company has been provided an initial compliance period of 180 calendar days, or until July 5, 2023, to regain compliance with the minimum bid price requirement.
Previous report
On July 13, 2023, the Company received a notice from Nasdaq stating that the Company failed to regain compliance with respect to the minimum $1 bid price per share requirement under Nasdaq Listing Rules during the 180 calendar days given by Nasdaq for the Company to regain compliance, which ended on July 5, 2023. However, Nasdaq has determined that the Company is eligible for an additional 180 calendar day period, or until January 2, 2024, to regain compliance. Such determination is based on the Company meeting the continued listing requirement for market value of publicly held shares and all other applicable requirements for initial listing on the Capital Market with the exception of the bid price requirement, and the Company’s written notice of its intention to cure the deficiency during the second compliance period by effecting a reverse stock split, if necessary. The Company intends to regain compliance with Nasdaq’s bid price requirement prior to the end of the second bid price extension.
Previous report
On February 21, 2023, the Company received an additional staff determination notice from Nasdaq, advising that it had not received the Company’s Form 10-Q for the quarterly period ended December 31, 2022, which served as an additional basis for delisting the Company’s securities. The notice stated that the Nasdaq Hearings Panel will consider the additional deficiency in rendering a determination regarding the Company’s continued listing on Nasdaq. The Company submitted to the Panel a plan to regain compliance with the continued listing requirements and was granted a grace period to file all the delinquent reports, including the filing of the Form 10-Q for the quarterly period ended December 31, 2022, on or before February 28, 2023. On March 16, 2023, the Company received a formal notification from Nasdaq confirming that the Company had regained compliance with the Nasdaq Listing Rule 5250(c)(1), which requires the Company to timely file all required periodic financial reports with the SEC, and that the matter is now closed.
Previous report
On March 8, 2023, the Company received a notice from Nasdaq stating that the Company no longer complies with Nasdaq’s audit committee requirement under Nasdaq’s Listing Rule 5605 following the resignation of John Levy from the Company’s board of directors and audit committee effective February 23, 2023. Nasdaq advised the Company that in accordance with Nasdaq’s Listing Rule 5605(c)(4), the Company has a cure period to regain compliance (i) until the earlier of the Company’s next annual shareholders’ meeting or February 23, 2024; or (ii) if the next annual shareholders’ meeting is held before August 22, 2023, then the Company must evidence compliance no later than August 22, 2023.
Previous report
On July 7, 2023, the Company received a Notice of Noncompliance Letter (the “Letter”) from Nasdaq stating that the Company was not in compliance with Nasdaq Listing Rules due to its failure to timely hold an annual meeting of shareholders for the fiscal year ended June 30, 2022, which is required to be held within twelve months of the Company’s fiscal year end under Nasdaq Listing Rule 5620(a) and 5810(c)(2)(G). The Letter also states that the Company has 45 calendar days to submit a plan to regain compliance and if Nasdaq accepts the Plan, it can grant the Company an exception of up to 180 calendar days from the fiscal year end, or until December 27, 2023, to regain compliance. On August 30, 2023, the Company received a formal notification from Nasdaq stating that it has determined to grant the Company an extension until December 27, 2023, to regain compliance with Listing Rule 5620(a), which requires that the Company hold an annual meeting of shareholders within twelve months of the end of the Company’s fiscal year end. On October 19, 2023, the Company received a formal notification from the Nasdaq Stock Market LLC confirming that the Company had regained compliance with Listing Rule 5620(a), which requires that the Company hold an annual meeting of shareholders within twelve months of the end of the Company’s fiscal year, and that the matter is now closed.
Previous report
On July 13, 2023, the Company received a notice from Nasdaq stating that the Company no longer complies with Nasdaq’s independent director and audit committee requirements under Nasdaq’s Listing Rule 5605 following the resignation of Mr. Liu from the Company’s board of directors and audit committee effective July 3, 2023. Nasdaq advised the Company that in accordance with Nasdaq’s Listing Rule 5605(c)(4), the Company has a cure period to regain compliance (1) until the earlier of the Company’s next annual shareholders’ meeting or July 3, 2024; or (2) if the next annual shareholders’ meeting is held before January 2, 2024, then the Company must evidence compliance no later than January 2, 2024. In response to this notice, on July 31, 2023, the Company elected Mr. Zhongliang Xie as a Class II independent director to serve until the annual meeting of stockholders for the fiscal year 2023, to fill the vacancy on the Board resulting from the resignation of Mr. Liu. The Board appointed Mr. Xie to serve as Chair of the Audit Committee, a member of the Compensation Committee and a member of the Nominating and Corporate Governance Committee. On August 30, 2023, the Company received a formal notification from the Nasdaq Stock Market LLC (“Nasdaq”) confirming that the Company had regained compliance with the independent director and audit committee requirements for continued listing on The Nasdaq Capital Market set forth in Listing Rules 5605(b)(1) and 5605(c)(2) by appointing Mr. Zhongliang Xie to the Company’s board of directors and audit committee on July 31, 2023, and that the matter is now closed.
Previous report
Provision for doubtful accounts, net
Previous report
Other Income(Expenses), Net
Previous report
Other income, net was $21,117 for the three months ended September 30, 2024, which mainly consisted of interest income of $38,484, compared to $21,917 of interest expenses and $56,042 of exchange loss for the same period in 2023.
Reworded paragraphs (21)
Previous wording
On August 6, 2024, the Company appointed Ms. Jia Yang as a vice president of the Company and as a director of the Board to fill the vacancy resulting from Mr. Haotian Song’s resignation.
Current wording
On November 18, 2024, the Nominating and Corporate Governance Committee of the Board nominated and the Board appointed Ms. Jia Yang as the CEO of the Company and the chairwoman of the Board to fill the vacancy resulting from Mr. Ziyun Liu’s resignation. Ms. Yang has served as a vice president of the Company and a director of the Board since August 2024.
Previous wording
Revenues decreased by $394,524, or approximately 44.0%, to $501,402 for the three months ended September 30, 2024 from $895,926 for the same period in 2023. The decrease was mainly caused by shipping revenue decline from our U.S. subsidiary, Brilliant Warehouse, in $195,270 and from our PRC subsidiaries in $199,254 due to the business volume reduce.
Current wording
Revenues decreased by $486,616, or approximately 50.6%, to $474,624 for the three months ended December 31, 2024 from $961,240 for the same period in 2023. The decrease was mainly caused by shipping revenue decline from our U.S. subsidiary, Brilliant Warehouse, in $123,477 and from our PRC subsidiaries in $363,139 due to the business volume reduce.
Previous wording
Cost of revenues for our freight logistics services segment mainly consisted of freight costs to various freight carriers, cost of labor, warehouse rent and other overhead and sundry costs. Cost of revenues for our freight logistics services segment was $773,317 for the three months ended September 30, 2024, adecrease of $229,632, or approximately 22.9%, as compared to $1,002,949 for the same period in 2023. The decrease was in line with the decline in revenue.
Current wording
Cost of revenues for our freight logistics services segment mainly consisted of freight costs to various freight carriers, cost of labor, warehouse rent and other overhead and sundry costs. Cost of revenues for our freight logistics services segment was $464,100 for the three months ended December 31, 2024, a decrease of $512,776, or approximately 52.5%, as compared to $976,876 for the same period in 2023. The decrease was in line with the decline in revenue.
Previous wording
Operating costs and expenses decreased by $1,706,898 or approximately 52.8% from $ 1,526,854 for three months ended September 30, 2024 compared to $3,233,752 for the same period in 2023. This decrease was mainly due to the decrease in general and administrative expenses, impairment loss of Cryptocurrencies and provision for doubtful accounts as more fully discussed below.
Current wording
Operating costs and expenses decreased by $1,026,542 or approximately 47.0% from $2,185,673 for three months ended December 31, 2023 compared to for the same period in 2024. This decrease was mainly due to the decrease in general and administrative expenses as more fully discussed below.
Previous wording
Our general and administrative expenses consist primarily of salaries and benefits, travel expenses for our administration department, office expenses, and regulatory filing and professional service fees for auditing, legal and IT consulting. For the three months ended September 30, 2024, we had $690,556 of general and administrative expenses, as compared to $2,054,153 for the same period in 2023, representing a decrease of $1,363,597, or approximately 66.4%. The decrease was mainly due to the decreased professional fees of approximately $647,039 which are mainly included auditor fee, lawyer fee and consulting fee. On the other hand, other employee expense was reduced by $541,343 due to the labor compensation of $500,000 was paid in the same period of last year.
Current wording
Our general and administrative expenses consist primarily of salaries and benefits, travel expenses for our administration department, office expenses, and regulatory filing and professional service fees for auditing, legal and IT consulting. For the three months ended December 31, 2024, we had $632,262 of general and administrative expenses, as compared to $1,145,730 for the same period in 2023, representing a decrease of $513,468, or approximately 44.8%. The decrease was mainly due to the decreased employee and director remuneration of approximately $512,915 which mainly resulted in cost savings due to redundancy and salary reductions.
Previous wording
Our selling expenses consisted primarily of salaries, meals and entertainment and travel expenses for our sales representatives. For the three months ended September 30, 2024, we had $62,981 in selling expenses, as compared to $55,853 for the same period in 2023, which represents an increase of $7,128 or approximately 12.8%. The increase was mainly due to an increase in salaries as we added to employees and incurred increased marketing expenses for the freight logistics segment for our sales team.
Current wording
Our selling expenses consisted primarily of salaries, meals and entertainment and travel expenses for our sales representatives. For the three months ended December 31, 2024, we had $62,769 of selling expenses as compared to $56,075 for the same period in 2023, which represents an increase of $6,694 or approximately 11.9%. The increase was mainly due to increased efforts to increase the revenues of our freight logistics segment in the PRC.
Previous wording
The Company’s operations in the U.S. incurred cumulative U.S. federal net operation losses (“NOL”) of approximately $47,200,000 as of June 30, 2024, which may reduce future federal taxable income. During the three months ended September 30, 2024, approximately $1,000,000 of NOL was generated and the tax benefit derived from such NOL was approximately $210,000. As of September 30, 2024, the Company’s cumulative NOL amounted to approximately $48,200,000, which may reduce future federal taxable income.
Current wording
The Company’s operations in the U.S. incurred cumulative U.S. federal net operation losses (“NOL”) of approximately $48,200,000 as of September 30, 2024, which may reduce future federal taxable income. During the three months ended December 31, 2024, approximately $200,000 of NOL was generated and the tax benefit derived from such NOL was approximately $42,000. As of December 31, 2024, the Company’s cumulative NOL amounted to approximately $48,400,000, which may reduce future federal taxable income.
Previous wording
The Company’s operations in China incurred a cumulative NOL of approximately $2,062,000 as of June 30, 2024 which was mainly from net loss. During the three months ended September 30, 2024, additional NOL of approximately $55,000 was generated. As of September 30, 2024, the Company’s cumulative NOL amounted to approximately $* which may reduce future taxable income which will expire by 2026.
Current wording
The Company’s operations in China incurred a cumulative NOL of approximately $2,117,000 million as of September 30, 2024 which was mainly from net loss. During the three months ended December 31, 2024, additional NOL of approximately $81,000 was generated. As of December 31, 2024, the Company’s cumulative NOL amounted to approximately $2,198,000 which may reduce future taxable income which will expire by 2026.
Previous wording
The Company periodically evaluates the likelihood of the realization of deferred tax assets (“DTA”) and reduces the carrying amount of the deferred tax assets by a valuation allowance to the extent it believes a portion will not be realized. Management considers new evidence, both positive and negative, that could affect the Company’s future realization of deferred tax assets including its recent cumulative earnings experience, expectation of future income, the carry forward periods available for tax reporting purposes and other relevant factors. The Company determined that it is more likely than not its deferred tax assets could not be realized due to uncertainty on future earnings as a result of the Company’s reorganization and venture into new businesses. The Company provided a 100% allowance for its DTA as of September 30, 2024. The net decrease in valuation for the three months ended September 30, 2024 amounted to approximately $960,000, based on management’s reassessment of the amount of the Company’s deferred tax assets that are more likely than not to be realized.
Current wording
The Company periodically evaluates the likelihood of the realization of deferred tax assets and reduces the carrying amount of the deferred tax assets by a valuation allowance to the extent it believes a portion will not be realized. Management considers new evidence, both positive and negative, that could affect the Company’s future realization of deferred tax assets including its recent cumulative earnings experience, expectation of future income, the carry forward periods available for tax reporting purposes and other relevant factors. The Company determined that it is more likely than not its deferred tax assets could not be realized due to uncertainty on future earnings as a result of the Company’s reorganization and venture into new businesses. The Company provided a 100% allowance for its deferred tax assets as of December 31, 2024. The net decrease in valuation for the three months ended December 31, 2024 amounted to approximately $10,000 million, based on management’s reassessment of the amount of the Company’s deferred tax assets that are more likely than not to be realized.
Previous wording
As a result of the foregoing, we had a net loss of $1,004,335 for the three months ended September 30, 2024 compared to a net loss of $2,414,996 for the same period in 2023. After the deduction of non-controlling interest, net loss attributable to us was $961,789 for the three months ended September 30, 2024 compared to $2,290,185 for the same period in 2023. Comprehensive loss attributable to us was $1,072,055 for the three months ended September 30, 2024 compared to $2,167,204 for the same period in 2023.
Current wording
As a result of the foregoing, we had a net loss of $337,330 for the three months ended December 31, 2024 compared to a net loss of $1,168,543 for the same period in 2023. After the deduction of non-controlling interest, net loss attributable to us was $327,797 for the three months ended December 31, 2024 compared to $1,110,729 for the same period in 2023. Comprehensive loss attributable to us was $229,174 for the three months ended December 31, 2024 compared to $1,257,327 for the same period in 2023.
Previous wording
Our gross margin was (54.2%) and (11.9%) for the three months ended September 30, 2024 and 2023, respectively. This decrease in gross margin was mainly due to decreased revenue from our freight logistics business.
Current wording
Our gross margin was (26.8%) and (6.6%) for the six months ended December 31, 2024 and 2023, respectively. This decrease in gross margin was mainly due to decreased revenue from our freight logistics business.
Previous wording
Our total bad debt expenses amounted to nil and $48,618 for the three months ended September 30, 2024 and 2023, which was mainly due to the bad debt provision in $50,000 for the deposit of the early termination of the lease agreement in, Jericho, New York for the same period in 2023.
Current wording
Our total bad debt expenses amounted to nil and $55,610, for the six months ended December 31, 2024 and 2023, mainly due to the bad debt provision of $50,000 due the early termination of a lease agreement in Jericho, New York.
Previous wording
We recorded an impairment of nil and $72,179 for the three months ended September 30, 2024 and 2023, for the cryptocurrencies held by us as the ownership of the cryptocurrencies could not be verified.
Current wording
We recorded impairments of nil and $72,179 for the six months ended December 31, 2024 and 2023, for the cryptocurrencies held by us as the ownership of the cryptocurrencies could not be verified.
Previous wording
As of September 30, 2024, we had $17,740,908 in cash (including cash on hand and cash in bank). The majority of our cash is in banks located in the USA.
Current wording
As of December 31, 2024, we had $15,248,528 in cash (including cash on hand and cash in bank) and $3,016,913 in restricted cash. The majority of our cash is in banks located in the Djibouti a country in East Africa and the restricted cash is in banks located in U.S.
Previous wording
In assessing the liquidity, we monitor and analyze our cash on-hand and our operating and capital expenditure commitments. Our liquidity needs are to meet our working capital requirements, operating expenses and capital expenditure obligations. As of September 30, 2024, our working capital was approximately $11,891,475 and we had cash of approximately $17,740,908 in cash (including cash on hand and cash in bank). We believe our current working capital is sufficient to support our operations and debt obligations as they become due for the next twelve months.
Current wording
In assessing the liquidity, we monitor and analyze our cash on-hand and our operating and capital expenditure commitments. Our liquidity needs are to meet our working capital requirements, operating expenses and capital expenditure obligations. As of December 31, 2024, our working capital was $11,698,953 and we had cash and restricted cash of approximately $18,265,441 (including $15,248,528 in cash and $3,016,913 in restricted cash). We believe our current working capital is sufficient to support our operations and debt obligations as they become due for the next twelve months.
Previous wording
Our net cash used in operating activities was approximately $9,145 for the three months ended September 30, 2024. The operating cash outflow for the three months ended September 30, 2024 was primarily attributable to our net loss of approximately $1.0 million. We had an increase in accounts payable of approximately $585,260, and an increase in accrued expenses and other current liabilities of approximately $666,166 offset by an increase in accounts receivable of approximately $355,203.
Current wording
Our net provided by in operating activities was $397,878 for the six months ended December 31, 2024. The operating cash inflow for the six months ended December 31, 2024 was primarily attributable to accrued expenses and other current liabilities increased $1,511,975 and partial offset by net loss cash outflow of $1,341,665.
Previous wording
Our net cash used in operating activities was approximately $2.0 million for the three months ended September 30, 2023. The operating cash outflow for the three months ended September 30, 2023 was primarily attributable to our net loss of approximately $2.4 million adjusted by non-cash lease expense of $0.1 million and impairment loss of cryptocurrencies of $0.1 million.
Current wording
Our net cash used in operating activities was $5,887,757 for the six months ended December 31, 2023. The operating cash outflow for the six months ended December 31, 2023 was primarily attributable to our net loss of $3,583,539 and our long-term assets deposits of $2,496,197.
Previous wording
We did not have any investing activities for the three months ended September 30, 2024.
Current wording
We did not have any investing activities for the six months ended December 31, 2024.
Previous wording
Net cash provided by investing activities was approximately $0.05 million for the three months ended September 30, 2023 due to repayments from related parties from Zhejiang Jinbang Fuel Energy Co., Ltd (“Zhejiang Jinbang”) which is owned by Mr. Qinggang Wang.
Current wording
Net cash provided by investing activities was $25,951 for the six months ended December 31, 2023 due to repayments from related parties from Zhejiang Jinbang, which is owned by Mr. Qinggang Wang.
Previous wording
We did not have any financing activities for the three months ended September 30, 2024.
Current wording
We did not have any financing activities for the six months ended December 31, 2024.
Previous wording
Net cash used in financing activities for the three months ended September 30, 2023 was $5.4 million due to the repayment of $5 million of convertible notes and the accrued interest of $403,424.
Current wording
Net cash used in financing activities for the six months ended December 31, 2023 was $5,403,424 due to the repayment of $5,000,000 of convertible notes and accrued interest of $403,424.
Rearranged current paragraphs (9)
Current report — wording carried from elsewhere
We recorded impairments of nil for the three months ended December 31, 2024 and 2023, for the cryptocurrencies held by us as the ownership of the cryptocurrencies could not be verified.
Current report — wording carried from elsewhere
The following table sets forth the components of our costs and expenses for the periods indicated:
Current report — wording carried from elsewhere
The following tables present summary information by segments for the six months ended December 31, 2024 and 2023:
Current report — wording carried from elsewhere
Revenues decreased by $881,140, or approximately 47.4%, to $976,026 for the six months ended December 31, 2024 from $1,857,166 for the same period in 2023. The decrease was mainly caused by shipping revenue decline from our U.S. subsidiary, Brilliant Warehouse, in $318,747 and from our PRC subsidiaries in $562,393 due to the business volume reduce.
Current report — wording carried from elsewhere
Cost of revenues for our freight logistics services segment mainly consisted of freight costs to various freight carriers, cost of labor, warehouse rent and other overhead and sundry costs. Cost of revenues for our freight logistics services segment was $1,237,417 for the six months ended December 31, 2024, a decrease of $742,408, or approximately 37.5%, as compared to $1,979,825 for the same period in 2023. The decrease was in line with the decline in revenue.
Current report — wording carried from elsewhere
Our general and administrative expenses consist primarily of salaries and benefits, travel expenses for our administration department, office expenses, and regulatory filing and professional service fees for auditing, legal and IT consulting. For the six months ended December 31, 2024, we had $1,322,818 of general and administrative expenses, as compared to $3,199,883 for the same period in 2023, representing a decrease of $1,877,065, or approximately 58.7%. It was mainly attributable to the decreased professional fees of $883,932 and the decreased employee compensations of $954,052 due to redundancy and salary reductions.
Current report — wording carried from elsewhere
Our selling expenses consisted primarily of salaries, meals and entertainment and travel expenses for our sales representatives. For the six months ended December 31, 2024, we had $125,750 in selling expenses, as compared to $111,928 for the same period in 2023, which represents an increase of $13,822 or approximately 12.3%. The increase was mainly due to increased efforts to increase the revenues of our freight logistics segment in the PRC.
Current report — wording carried from elsewhere
We did not record any income tax expense for both the six months ended December 31, 2024 and 2023, respectively. See –Taxes above.
Current report — wording carried from elsewhere
As a result of the foregoing, we had a net loss of $1,341,665 for the six months ended December 31, 2024 compared to a net loss of $3,583,539 for the same period in 2023. After the deduction of non-controlling interest, net loss attributable to us was $1,289,586 for the six months ended December 31, 2024 compared to $3,400,914 for the same period in 2023. Comprehensive loss attributable to us was $1,301,228 for the six months ended December 31, 2024 compared to $3,424,530 for the same period in 2023.