Cheetah Net Supply Chain Service Inc. Announces First Quarter 2025 Results and Provides Corporate Update
IRVINE, May 05, 2025 (GLOBE NEWSWIRE) -- Cheetah Net Supply Chain Service Inc. ("Cheetah" or the "Company") (Nasdaq CM: CTNT), a provider of logistics and warehousing services, today reported results for the quarter ended March 31, 2025 and provided a corporate update.
Recent Highlights
-- Continuous challenging market conditions in the People's Republic of
China (the "PRC") have resulted in an industry-wide slowdown of
parallel-import vehicle sales, including price and volume drops in the
luxury car models and the Company's margin was significantly compressed
or eliminated. The Company experienced significantly dropped sales volume
in the parallel-import vehicle segment during the year ended December 31,
2024. On March 5, 2025, Company's board of directors (the "Board")
approved the discontinuation of its parallel-import vehicle business.
Tony Liu, Cheetah's Chairman and CEO commented, "Our financial performance during the first quarter of 2025 reflected the consequences of our business strategic shift to logistics and warehousing under the significant challenging market conditions, such as the U.S. tariff policies on international trade and the increasing trade tensions between the U.S. and the PRC. By focusing on improving operational efficiencies and expanding service offerings, our newly acquired subsidiary, TW & EW Services Inc ("TWEW"), had higher revenues than the earlier acquired subsidiary, Edward Transit Express Group Inc. ("Edward"), reflecting our business transformation and strategic shift underway. Management will continue to take initiatives to seek out new business opportunities. We estimate it will take longer than expected to generate ideal profits but have confidence that we are positioning the Company for substantial future growth in this business."
First Quarter 2025 Financial Results
Continuing operations- logistics and warehousing business
For the three months ended March 31, 2025, the Company reported revenue of $479,799 from the logistics and warehousing services segment, including $62,515, or 13.0%, of its total revenue from Edward and $417,284, or 87.0%, of its total revenue from TWEW.
Revenue from Edward decreased by 18.6%, primarily due to the decreased international trade flow resulting from the trade tensions between China and the U.S.
The Company also reported cost of revenue of $423,543 for the three months ended March 31, 2025, mainly consisted of the labor costs for TWEW and ocean freight service costs for Edward. The Company reported a gross profit of $56,256 for the three months ended March 31, 2025.
General and administrative expenses for the Company's continuing operations increased by $0.2 million, or 30.3%, to $1.0 million for the three months ended March 31, 2025 from $0.8 million for the three months ended March 31, 2024, primarily due to (i) an increase of $0.1 million in personnel-related expenses, which was attributed to the hiring of additional staff to support the newly launched logistics and warehousing segment, (ii) an increase of $0.1 million in rental and leases following the acquisition of Edward and a new office workspace in California in July 2024, (iii) an increase of $22,547 in travel and entertainment expenses as part of business development efforts and client engagement, (iv) an increase of $27,067 in depreciation and amortization expenses, primarily due to the acquisition of new fixed assets and recorded intangible assets from the Edward and TWEW acquisitions, (v) an increase of 14,716 in other miscellaneous general and administration expenses during the three months ended March 31, 2025, partially offset by a decrease of $51,911 in legal and accounting fees due to additional professional fees for preparing a registration statement on Form S-1 during the first quarter of 2024. a decrease of $19,237 in insurance expenses resulting from a change in the Company's insurance provider.
Share-based compensation expenses were $16,185 and nil for the three months ended March 31, 2025 and 2024, respectively.
Interest income from continuing operations was $208,090 for the three months ended March 31, 2025, compared to $28,930 for the three months ended March 31, 2024, representing an increase of $179,160, or 619.3%. The significant increase was primarily driven by interest earned on short-term loan receivables and certificates of deposit, funded by the net proceeds from the Company's initial public offering and its public offerings closed in May and July 2024.
The Company had a net loss of $753,909 from our continuing operations for the three months ended March 31, 2025, compared to net loss of $608,930 for the same period of 2024.
Discontinued Operations- parallel-import vehicle business
During the three months ended March 31, 2024, the Company generated revenue of $1.4 million from the parallel-vehicle business. Only 13 units of vehicles were sold following the significant downturn of parallel-import vehicle business as stated under "Recent Highlights."
The Company also reported cost of revenue of $1.4 million, mainly the fulfillment expenses and a gross loss of $9,283 of the discontinued business for the three months ended March 31, 2024.
Selling Expenses and interest expenses for the discontinued parallel-import vehicle business was $78,840 and 54,459, respectively, for the three months ended March 31, 2024.
Net loss for the discontinued operations was approximately $142,582 for the three months ended March 31, 2024.
As a result of the above factors, the Company reported an overall net loss of $753,909 for the first quarter of 2025, as compared to net income of $608,930 in the same period of 2024.
Liquidity and Cash Flow
As of March 31, 2025, the Company had current assets of $10.2 million, consisting of cash and cash equivalents of $0.3 million, $9.1 million in loan receivables, $0.5 million of other receivables, $0.1 million of accounts receivable, and $0.2 million in prepaid expenses other current assets from continuing operations. The Company's current liabilities, all of which related to continuing operations, totaled approximately $0.9 million, consisting of $0.5 million of operating lease liabilities, $0.3 million of other payables, and $0.1 million of loan payable, including the current portion of long-term borrowings.
During the three months ended March 31, 2025, the Company reported net cash flow of $1.8 million provided by operating activities, $3.0 million provided by investing activities, and $68,539 used in financing activities.
As of March 31, 2025, the Company had total stockholders' equity of $11.9 million, compared to $12.6 million as of December 31, 2024.
The Company is working to further improve its liquidity and capital sources primarily by generating cash from operations, debt financing, and, if needed, financial support from its principal stockholders. If necessary to fully implement its business plan and sustain continued growth, the Company may seek additional equity financing from outside investors. Based on the current operating plan, management believes that the aforementioned measures collectively will provide sufficient liquidity to meet the Company's future liquidity and capital requirements for at least 12 months from the issuance date of its consolidated financial statements.
Forward-Looking Statements
This press release contains certain forward-looking statements, including statements that are predictive in nature. Forward-looking statements are based on the Company's current expectations and assumptions. The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking statements. These statements may be identified by the use of forward-looking expressions, including, but not limited to, "anticipate," "believe," "continue," "estimate," "expect," "future," "intend," "may," "outlook," "plan," "potential," "predict," "project," "should," "will," "would," and similar expressions that predict or indicate future events or trends or that are not statements of historical matters, but the absence of these words does not mean that a statement is not forward-looking. The Company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise. Important factors that could cause actual results to differ materially from those in the forward-looking statements are set forth in the Company's filings with the U.S. Securities and Exchange Commission, including its annual report on Form 10-K under the caption "Risk Factors."
For more information, please contact:
Cheetah Net Supply Chain Service Inc.
Investor Relations
(949)4187804
ir@cheetah-net.com
CHEETAH NET SUPPLY CHAIN SERVICE INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEET DATA
March 31, December 31,
2025 2024*
----------- --------------
(Unaudited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 324,142 $ 1,650,962
Accounts receivable 59,059 47,976
Loan receivable 9,114,695 6,088,295
Other receivable 500,862 370,696
Prepaid expenses and other current
assets 247,188 338,642
Current assets of discontinued
operations -- 2,540,501
---------- ----------
TOTAL CURRENT ASSETS 10,245,946 11,037,072
NONCURRENT ASSETS:
Property, plant, and equipment, net 388,513 398,395
Operating lease right-of-use assets 1,693,790 1,836,521
Deferred tax assets, net 600 --
Intangibles, net 1,035,000 1,063,072
Goodwill 1,044,394 1,044,394
Other non-current asset 100,000 --
---------- ----------
TOTAL ASSETS $14,508,243 $15,379,454
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $ 33,010 $ 18,992
Current portion of long-term debt 35,013 34,577
Loan payable from premium finance 60,871 120,461
Tax payable 5,200 --
Operating lease liabilities, current 524,140 438,351
Accrued liabilities and other current
liabilities 257,388 217,980
Current liabilities of discontinued
operations -- 52,900
---------- ----------
TOTAL CURRENT LIABILITIES 915,622 883,261
NONCURRENT LIABILITIES:
Long-term debt, net of current portion 600,634 610,020
Operating lease liabilities, net of
current portion 1,112,039 1,268,501
TOTAL LIABILITIES $ 2,628,295 $ 2,761,782
========== ==========
STOCKHOLDERS' EQUITY
Common stock, $0.0001 par value,
1,000,000,000 shares authorized;
3,218,886 and 1,119,750 shares issued
and outstanding, including*:
Class A common stock, $0.0001 par
value, 891,750,000 shares authorized,
2,672,011 and 604,125 shares issued
and outstanding 267 267
Class B common stock, $0.0001 par
value, 108,250,000 shares authorized,
546,875 and 515,625 shares issued and
outstanding 55 55
Additional paid-in capital 17,314,146 17,297,961
Accumulated deficit (5,434,520) (4,680,611)
---------- ----------
TOTAL STOCKHOLDERS' EQUITY 11,879,948 12,617,672
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY $14,508,243 $15,379,454
========== ==========
* Retrospectively adjusted for the reverse split of the Company's common stock at a ratio of 1-for-16, which took effect on October 21, 2024 (the "Reverse Stock Split").
CHEETAH NET SUPPLY CHAIN SERVICE INC.
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
For the Three Months Ended March 31,
--------------------------------------------
2025 2024**
-------------- -------------
(Unaudited)
REVENUE $ 479,799 $ 76,834
COST OF REVENUE 423,543 42,500
---------- ---------
GROSS PROFIT 56,256 34,334
OPERATING EXPENSES
General and administrative
expenses 1,000,519 767,642
Share-based compensation
expenses 16,185 --
---------- ---------
TOTAL OPERATING EXPENSES 1,016,704 767,642
---------- ---------
LOSS FROM OPERATIONS (960,448) (733,308)
---------- ---------
OTHER INCOME (EXPENSES)
Interest income 208,090 28,930
Interest expenses (8,812) (8,305)
Other income 12,616 621
---------- ---------
OTHER INCOME, NET 211,894 21,246
---------- ---------
LOSS FROM CONTINUING
OPERATIONS BEFORE INCOME
TAXES (748,554) (712,062)
Income tax provision
(benefits) 5,355 (245,714)
---------- ---------
LOSS FROM CONTINUING
OPERATIONS (753,909) (466,348)
---------- ---------
LOSS FROM DISCONTINUED
OPERATIONS, NET OF TAX** -- (142,582)
---------- ---------
NET LOSS $ (753,909) $ (608,930)
Loss from continuing
operations per ordinary
share - basic and
diluted* $ (0.23) $ (0.40)
Loss from discontinued
operations per ordinary
share - basic and
diluted* $ 0.00 $ (0.12)
Loss per share - basic and
diluted* $ (0.23) $ (0.52)
========== =========
Weighted average shares -
basic and diluted* 3,218,886 1,171,307
========== =========
* Retrospectively adjusted for the Reverse Stock Split.
** Reclassification- certain reclassifications have been made to the financial statements for the period ended March 31, 2024, to conform to the presentation for the discontinued operations, with no effect on previously reported net income (loss).
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CHANGES
IN STOCKHOLDERS' EQUITY
Common Stock*
--------------------------------------
Class A Class B Additional Total
Common Common paid-in Subscription Accumulated Stockholders'
stock Amount stock Amount capital Receivable Deficit Equity
--------- -------- ------- -------- ----------- -------------- ------------ -----------------
Balance,
December 31,
2024 2,672,011 $ 267 546,875 $ 55 $17,297,961 $ -- $(4,680,611) $ 12,617,672
Share-based
compensation
expenses -- -- -- -- 16,185 -- -- 16,185
Net loss from
continuing
operations
for the year -- -- -- -- -- -- (753,909) (753,909)
Balance, March
31, 2025 2,672,011 $ 267 546,875 $ 55 $17,314,146 $ -- $(5,434,520) $ 11,879,948
========= ==== ======= ==== ========== ===== ======= ========== ==========
Common Stock*
------------------------------------
Class A Class B Additional Retained Earnings Total
Common Common paid-in Subscription Stockholders'
stock Amount stock Amount capital Receivable (Accumulated Deficit) Equity
------- -------- ------- -------- ----------- -------------- ------------------------- -----------------
Balance,
December 31,
2023 604,125 $ 60 515,625 $ 52 $6,996,275 $ (600,000) $ 508,241 $ 6,904,628
Termination of
equity
classified
warrant -- -- -- -- (78,125) -- -- (78,125)
Issuance of
common stock
for
acquisition 79,521 8 -- -- 899,992 -- -- 900,000
Net loss from
continuing
operations
for the year -- -- -- -- -- -- (466,348) (466,348)
Net loss from
discontinued
operations
for the year (142,582) (142,582)
Balance, March
31, 2024 683,646 $ 68 515,625 $ 52 $7,818,142 $ (600,000) $ (100,689) $ 7,117,573
======= ==== ======= ==== ========= ========= ==== ============ ==== ==========
CHEETAH NET SUPPLY CHAIN SERVICE INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS
For the Three Months Ended
March 31,
-----------------------------------------
2025 2024
(Unaudited)
Cash flows from operating
activities:
Net Loss $ (753,909) $ (608,930)
Less: Loss from
discontinued operations,
net of tax -- (142,582)
Loss from continuing
operations (753,909) (466,348)
Adjustments to reconcile
net (loss) income to net
cash provided by operating
activities:
Depreciation 9,882 2,171
Amortization of operating
lease right-of-use assets 79,730 38,560
Amortization of Intangible
Assets 28,071 8,714
Share-based compensation
expenses 16,185 --
Deferred income tax
benefits -- (247,343)
Changes in operating
assets and liabilities:
Accounts receivable (11,083) 11,890
Other receivables (230,166) (672,295)
Prepaid expenses and other
current assets 90,856 (35,785)
Other payables and other
current liabilities 5,734 41,152
Operating lease liabilities (7,674) (8,475)
---------- ----------
Cash used in operating
activities-continuing
operations (772,374) (1,470,341)
Cash provided by operating
activities-discontinued
operations * 2,540,500 3,166,058
---------- ----------
Net cash provided by
operating activities 1,768,126 1,695,717
---------- ----------
Cash flows from investing
activities:
Acquisition of business,
net of cash acquired -- (220,117)
Loans made to third parties (3,075,400) --
Loans repayment received
from third parties 49,000 172,500
---------- ----------
Cash used in investing
activities-continuing
operations (3,026,400) (47,617)
Net cash used in investing
activities (3,026,400) (47,617)
---------- ----------
Cash flows from financing
activities:
Cash paid for warrant
termination -- (78,125)
Repayments of premium
finance (59,590) (73,713)
Repayments of long-term
borrowings (8,949) (8,068)
Borrowing from a related
party -- (13,423)
Cash provided by financing
activities-continuing
operations (68,539) (173,329)
Cash used in financing
activities-discontinued
operations* -- (1,004,565)
---------- ----------
Net cash used in financing
activities (68,539) (1,177,894)
---------- ----------
Net (decrease) increase in
cash (1,326,813) 470,206
Cash, beginning of year 1,650,955 432,998
---------- ----------
Cash, end of year 324,142 903,204
----------
Cash of continuing
operations $ 324,142 $ 903,204
========== ==========
Supplemental cash flow
information
Cash paid for income taxes $ 155 $ --
========== ==========
Cash paid for interests $ 8,812 $ 7,552
========== ==========
Noncash Financing and
investing activities:
Fair value of common stock
issued for acquisition $ - $ 1,700,000
========== ==========
Reclassification- certain reclassifications have been made to the financial statements for the three months ended March 31, 2024, to conform to the presentation for the discontinued operations, with no effect on previously reported net income (loss).
(END) Dow Jones Newswires
May 05, 2025 17:10 ET (21:10 GMT)
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