Full Year 2023 Financial Results
Revenues
For the full year of 2023, revenues increased by
Cost of revenues
Total cost of revenues increased by
Gross loss and gross loss margin
Gross loss was
Operating expenses
Sales and marketing expenses were
General and administrative expenses decreased by
Research and development expenses decreased by
Operating loss
Loss from operations was
Other income, net
Net other income was
Net loss attributable to CNET and loss per share
Net loss attributable to CNET was
Financial Condition
As of
Net cash used in operating activities was
About
Established in 2003 and headquartered in
Safe Harbor Statement
This release contains certain "forward-looking statements" relating to the business of
For more information, please contact:
Email: shunyu.zheng@weitian-ir.com
Phone: +1 718-213-7386
CONSOLIDATED BALANCE SHEETS (In thousands, except for number of shares and per share data) | |||||||
As of | |||||||
2023 | 2022 | ||||||
(US $) | (US $) | ||||||
Assets | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 817 | $ | 4,391 | |||
Accounts receivable, net of allowance for doubtful accounts of | 844 | 1,745 | |||||
Prepayment and deposit to suppliers | 4,505 | 4,567 | |||||
Other current assets, net | 2,794 | 1,610 | |||||
Total current assets | 8,960 | 12,313 | |||||
Long-term investments, net | 794 | 1,596 | |||||
Operating lease right-of-use assets | 22 | 1,761 | |||||
Property and equipment, net | 215 | 249 | |||||
Intangible assets, net | 841 | 3,264 | |||||
Long-term deposits and prepayments | - | 69 | |||||
Deferred tax assets, net | 401 | 406 | |||||
Total Assets | $ | 11,233 | $ | 19,658 | |||
Liabilities and Equity | |||||||
Current liabilities: | |||||||
Accounts payable * | $ | 201 | $ | 205 | |||
Advances from customers * | 843 | 739 | |||||
Accrued payroll and other accruals * | 350 | 438 | |||||
Taxes payable * | 3,194 | 3,248 | |||||
Operating lease liabilities * | 24 | 347 | |||||
Lease payment liabilities related to short-term leases * | 99 | 101 | |||||
Other current liabilities * | 144 | 437 | |||||
Warrant liabilities | - | 185 | |||||
Total current liabilities | 4,855 | 5,700 |
Long-term liabilities: | |||||||||
Operating lease liabilities-Non current * | - | 1,535 | |||||||
Long-term borrowing from a related party | 124 | 126 | |||||||
Total Liabilities | 4,979 | 7,361 | |||||||
Commitments and contingencies | |||||||||
Equity: | |||||||||
ZW Data Action Technologies Inc.’s stockholders’ equity | |||||||||
Common stock ( | 7 | 7 | |||||||
Additional paid-in capital | 62,067 | 62,017 | |||||||
Statutory reserves | 2,598 | 2,598 | |||||||
Accumulated deficit | (59,690 | ) | (53,525 | ) | |||||
Accumulated other comprehensive income | 1,272 | 1,200 | |||||||
Total ZW Data Action Technologies Inc.’s stockholders’ equity | 6,254 | 12,297 | |||||||
Noncontrolling interests | - | - | |||||||
Total equity | 6,254 | 12,297 | |||||||
Total Liabilities and Equity | $ | 11,233 | $ | 19,658 |
* Liabilities recognized as a result of consolidating these VIEs do not represent additional claims on the Company’s general assets.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS)/INCOME (In thousands, except for number of shares and per share data) | ||||||||
Year Ended | ||||||||
2023 | 2022 | |||||||
(US $) | (US $) | |||||||
Revenues | $ | 30,585 | $ | 26,235 | ||||
Cost of revenues | 31,021 | 26,429 | ||||||
Gross (loss) | (436 | ) | (194 | ) | ||||
Operating expenses | ||||||||
Sales and marketing expenses | 267 | 269 | ||||||
General and administrative expenses | 4,061 | 8,304 | ||||||
Research and development expenses | 17 | 229 | ||||||
Impairment on intangible assets | 1,231 | 2,123 | ||||||
Total operating expenses | 5,576 | 10,925 | ||||||
Loss from operations | (6,012 | ) | (11,119 | ) | ||||
Other income/(expenses) | ||||||||
Change in fair value of warrant liabilities | 185 | 1,854 | ||||||
Interest income | 298 | 116 | ||||||
Impairment on long-term investments | (433 | ) | (596 | ) | ||||
Gain on disposal of subsidiaries | 10 | - | ||||||
Other expenses, net | (24 | ) | (49 | ) | ||||
Total other income | 36 | 1,325 | ||||||
Loss before income tax benefit/(expense) and noncontrolling interests | (5,976 | ) | (9,794 | ) | ||||
Income tax benefit/(expenses) | 2 | 3 | ||||||
Net loss | (5,974 | ) | (9,791 | ) | ||||
Net income attributable to noncontrolling interests | - | - | ||||||
Net loss attributable to | $ | (5,974 | ) | $ | (9,791 | ) |
Net loss | $ | (5,974 | ) | $ | (9,791 | ) | ||
Foreign currency translation income/(loss) | 72 | 118 | ||||||
Comprehensive loss | $ | (5,902 | ) | $ | (9,673 | ) | ||
Comprehensive income attributable to noncontrolling interests | - | - | ||||||
Comprehensive loss attributable to | $ | (5,902 | ) | $ | (9,673 | ) | ||
Loss per share | ||||||||
Loss per common share | ||||||||
Basic and diluted ** | $ | (0.83 | ) | $ | (1.37 | ) | ||
Weighted average number of common shares outstanding : | ||||||||
Basic and diluted ** | 7,194,890 | 7,136,290 |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) | ||||||||
Year Ended | ||||||||
2023 | 2022 | |||||||
(US $) | (US $) | |||||||
Cash flows from operating activities | ||||||||
Net loss | $ | (5,974 | ) | $ | (9,791 | ) | ||
Adjustments to reconcile net loss to net cash used in operating activities | ||||||||
Depreciation and amortization | 1,288 | 2,215 | ||||||
Amortization of operating lease right-of-use assets | 364 | 341 | ||||||
Share-based compensation expenses | 107 | 186 | ||||||
Loss on disposal of fixed assets | 6 | - | ||||||
Impairment on long-term investments | 433 | 596 | ||||||
Impairment on intangible assets | 1,231 | 2,123 | ||||||
Provision of allowances for doubtful accounts | 1,033 | 2,394 | ||||||
Change in fair value of warrant liabilities | (185 | ) | (1,854 | ) | ||||
Deferred taxes | (2 | ) | (3 | ) | ||||
Gain on disposal of subsidiaries | (10 | ) | - | |||||
Effect of termination of an operating lease contract | (138 | ) | - | |||||
Other non-operating (income)/losses | (300 | ) | (113 | ) | ||||
Changes in operating assets and liabilities | ||||||||
Accounts receivable | 593 | (276 | ) | |||||
Prepayment and deposit to suppliers | 36 | 1,652 | ||||||
Due from related parties | - | 59 | ||||||
Other current assets | 3 | 2 | ||||||
Accounts payable | (1 | ) | (848 | ) | ||||
Advances from customers | 115 | (420 | ) | |||||
Accrued payroll and other accruals | (80 | ) | 60 | |||||
Other current liabilities | (184 | ) | 836 | |||||
Taxes payable | (4 | ) | (6 | ) | ||||
Operating lease liabilities | (343 | ) | (302 | ) | ||||
Lease payment liability related to short-term leases | - | (40 | ) | |||||
Net cash used in operating activities | (2,012 | ) | (3,189 | ) | ||||
Cash flows from investing activities | ||||||||
Payment for leasehold improvements and purchase of vehicles, furniture and office equipment | (81 | ) | - | |||||
Net proceeds from disposal of fixed assets | 14 | - | ||||||
Cash effect of deconsolidation of subsidiaries | (3 | ) | - | |||||
Investment and advances to ownership investee entities | (64 | ) | - | |||||
Proceeds from disposal of subsidiaries | 3 | - | ||||||
Proceeds from disposal of ownership investee entities | 426 | - | ||||||
Repayment of short-term loans from ownership investee entities | - | 12 | ||||||
Short-term loans to unrelated parties | (2,000 | ) | (2,600 | ) | ||||
Repayment of short-term loans and interest income from unrelated parties | 168 | 2,140 | ||||||
Deposit and prepayment repaid from/(paid for) contracts of other investing activities | - | 1,000 | ||||||
Net cash provided by/(used in) investing activities | (1,537 | ) | 552 | |||||
Cash flows from financing activities | ||||||||
Proceeds from issuance of common stock and warrants (net of cash offering cost of | - | - | ||||||
Net cash provided by financing activities | - | - | ||||||
Effect of exchange rate fluctuation on cash and cash equivalents | (25 | ) | (145 | ) | ||||
Net (decrease)/increase in cash and cash equivalents | (3,574 | ) | (2,782 | ) | ||||
Cash and cash equivalents, at beginning of the year | 4,391 | 7,173 | ||||||
Cash and cash equivalents, at end of the year | $ | 817 | $ | 4,391 | ||||
Supplemental disclosure of cash flow information | ||||||||
Income taxes paid | $ | - | $ | - | ||||
Interest expense paid | $ | - | $ | - | ||||
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