Universe Pharmaceuticals INC (the “Company,” “we,” “our” and “us”)
(Nasdaq: UPC), a pharmaceutical producer and distributor in China,
today announced its unaudited financial results for the first six
months of fiscal year 2024 ended March 31, 2024.
Mr. Gang Lai, Chairman of the Board of Directors
and CEO of Universe Pharmaceuticals INC, commented, “During the
first six months of fiscal year 2024, we navigated business
uncertainties and adjusted our business strategy to offset the
impact of the global economic slowdown. As a result, we generated
$12.9 million in revenue for the six months ended March 31, 2024,
lower than the $18.5 million revenue generated in the same period
of last year. We made considerable efforts to implement our growth
strategies during this challenging period. To complement our
offline sales channels, we started developing online sales
channels, which helped us seize more opportunities and we expect
online sales to drive our business growth in the fast-evolving
market. Through executing our growth strategy of emphasizing
digital marketing and expanding our sales on e-commerce platforms,
our goal is to improve our brand recognition, deliver products to
more customers, and expand our business scale. Looking forward, we
intend to continue implementing our expansion strategy, through
which we hope to achieve greater market penetration and customer
base expansion, with the goal of creating long-term value for our
shareholders.”
Financial Highlights for the Six Months Ended March 31,
2024
|
|
For the Six Months Ended March 31, |
|
($
millions, except per share data) |
|
2024 |
|
|
2023 |
|
|
% Change |
|
Revenues |
|
|
12.9 |
|
|
|
18.5 |
|
|
|
-30.2 |
% |
(Loss) income from
operations |
|
|
(1.7 |
) |
|
|
0.1 |
|
|
|
-1,266.0 |
% |
Net loss |
|
|
(13.1 |
) |
|
|
(0.7 |
) |
|
|
1,731.3 |
% |
Loss per share |
|
|
(3.59 |
) |
|
|
(0.20 |
) |
|
|
1,720.7 |
% |
- Revenues decreased by 30.2% to
$12.9 million for the six months ended March 31, 2024 from $18.5
million for the six months ended March 31, 2023, primarily
attributable to decreased sales volume of the Company’s traditional
Chinese medicine derivatives (“TCMD”) products and third-party
products by 1,863,919 and 1,712,660 units, or 23.4% and 29.9%,
respectively, due to decrease in customer demand resulted from
economic slowdown, as well as a 3.3% negative impact from
fluctuations in foreign currency exchange rate.
- Loss from operations was $1.7
million for the six months ended March 31, 2024, compared to an
income from operations of $0.1 million for the six months ended
March 31, 2023, due to the decrease in revenue as discussed
above.
- Net loss was $13.1 million for the
six months ended March 31, 2024, compared to a net loss of $0.7
million for the six months ended March 31, 2023. Realized loss
on short-term investments from wealth management financial products
was $3,094,084 for the six months ended March 31, 2024, compared to
short-term investment income of $166,931 for the six months ended
March 31, 2023. The Company also recorded change in fair value of
short-term investment of $7,617,502 for its investment holdings
during the six months ended March 31, 2024. No change in fair value
of short-term investment was recognized for the six months ended
March 31, 2023.
- Loss per share was $3.59 for the
six months ended March 31, 2024, compared to loss per share of
$0.20 for the six months ended March 31, 2023.
Financial Results for the Six Months Ended March 31,
2024 Compared to the Six Months Ended March 31, 2023
Revenues
Total revenues decreased by $5,582,816, or
30.2%, to $12,884,370 for the six months ended March 31, 2024, from
$18,467,186 for the six months ended March 31, 2023.
|
|
For the Six Months Ended March 31, |
|
|
|
2024 |
|
|
2023 |
|
|
|
Revenue |
|
|
Cost of revenue |
|
|
Grossmargin |
|
|
Revenue |
|
|
Cost of revenue |
|
|
Gross margin |
|
TCMD products sales |
|
$ |
6,870,591 |
|
|
$ |
5,602,807 |
|
|
18.5 |
% |
|
$ |
9,374,312 |
|
|
$ |
6,617,445 |
|
|
29.4 |
% |
Third-party products
sales |
|
|
6,013,779 |
|
|
|
3,912,232 |
|
|
34.9 |
% |
|
|
9,092,874 |
|
|
|
5,721,600 |
|
|
37.1 |
% |
Total |
|
$ |
12,884,370 |
|
|
$ |
9,515,039 |
|
|
26.2 |
% |
|
$ |
18,467,186 |
|
|
$ |
12,339,044 |
|
|
33.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales of TCMD products decreased by $2,503,721,
or 26.7%, to $6,870,591 for the six months ended March 31, 2024,
from $9,374,312 for the six months ended March 31, 2023. The
decrease in the sales of TCMD products was mainly attributable to
the following: (i) a 23.4% decrease in sales volume of TCMD
products by 1,863,919 units, to 6,097,325 units sold in the six
months ended March 31, 2024, from 7,961,244 units sold in the six
months ended March 31, 2023. Global economic slowdown has led to a
decline in customers’ spending power, and customer demand decreased
during the six months ended March 31, 2024; and (ii) a 3.3%
negative impact from fluctuations in foreign currency exchange
rate, as the average exchange rate used in converting Renminbi
(“RMB”) into U.S. dollars (“USD”) changed from US$1 to RMB6.9761 in
for the six months ended March 31, 2023 to US$1 to RMB7.2064 in the
six months ended March 31, 2024.
Sales of third-party products decreased by
$3,079,095, or 33.9%, to $6,013,779 for the six months ended March
31, 2024, from $9,092,874 for the six months ended March 31, 2023.
The decrease in the sales of third-party products was mainly
attributable to the following: (i) a 29.9% decrease in sales volume
of third-party products by 1,712,660 units, to 4,014,841 units sold
in the six months ended March 31, 2024, from 5,727,501 units sold
in the six months ended March 31, 2023 due to a decline in customer
demand; and (ii) a 3.3% negative impact from fluctuations in
foreign currency exchange rate.
Cost of revenues and Gross
profit
Cost of revenues decreased by $2,824,005, or
22.9%, to $9,515,039 for the six months ended March 31, 2024, from
$12,339,044 for the six months ended March 31, 2023, due to a
decrease in sales volume of the Company’s TCMD products and
third-party products, partially offset by an increase in the
average cost of TCMD products by $0.09, or 10.8%, from $0.83 for
the six months ended March 31, 2023 to $0.92 for the six months
ended March 31, 2024. In the summer of 2023, a severe flood in
Anhui Province and Hubei Province of China, which are two main
producing areas of traditional Chinese medicinal materials, led to
a decrease in the supply of such materials and an increase in the
prices of the traditional Chinese medicine raw materials during the
six months ended March 31, 2024.
Gross profit decreased by $2,758,811 to
$3,369,331 for the six months ended March 31, 2024, from $6,128,142
for the six months ended March 31, 2023. Gross margin decreased by
7.0% to 26.2% for the six months ended March 31, 2024, from 33.2%
for the six months ended March 31, 2023.
Operating expenses
Selling expenses increased by $1,723,849, or
74.0%, to $4,054,357 for the six months ended March 31, 2024, from
$2,330,508 for the six months ended March 31, 2023, primarily
attributable to (i) an increase in advertising expenses by
$1,432,932, from $1,340,368 in the six months ended March 31, 2023,
to $2,773,300 in the six months ended March 31, 2024. The Company
entered into advertising service agreement with Health Headline to
promote its brand on the Health Headline’s website and mobile app.
The Company increased publicity efforts for its products and brand,
and the advertising expenses increased significantly during the six
months ended March 31, 2024; and (ii) an increase in salary and
employee benefit expenses by $112,104, or 32.1%, as the Company
recruited 10 new employees in the marketing department to promote
sales of its products.
General and administrative expenses decreased by
$411,445, or 29.8%, to $968,608 for the six months ended March 31,
2024 from $1,380,053 for the six months ended March 31, 2023,
primarily attributable to (i) a decrease in bad debt expense by
$265,530, because the Company accrued less bad debt expenses based
on its assessment of the collectability of the accounts receivable
and advance to suppliers; and (ii) a decrease in office supply and
utility expense by $217,681 due to cost savings.
Research and development expenses decreased by
$2,181,832, or 96.2%, to $86,503 for the six months ended March 31,
2024, from $2,268,335 for the six months ended March 31, 2023,
primarily attributable to (i) a decrease in development expenditure
on improving production process of the Company’s Chinese medicine
products in the amount of $1,505,144. The Company entered into
several cooperative agreements with external academic and research
institutions to jointly conduct development of eight production
process to improve production efficiency and product quality, with
activities beginning in August 2022, and incurred significant
amount of research and development expense in connection with such
efforts during the six months ended March 31, 2023. These
development activities were completed and results were integrated
in production in September 2023, and no such expenses incurred
during the six months ended March 31, 2024; and (ii) a decrease in
the materials used in the research and development activities by
$666,765 in connection with development activities on improving
production process.
Other income (expenses),
net
Total other expenses, net was $10,696,172 for
the six months ended March 31, 2024, compared to total other income
of $109,685 for the six months ended March 31, 2023. Realized loss
on short-term investment from wealth management financial products
was $3,094,084 for the six months ended March 31, 2024, compared to
realized income on short-term investment of $166,931 for the six
months ended March 31, 2023. The Company’s short-term investment
consists of non-rated company bonds and shares of public companies,
which represented 93.1% and 6.9% of the total investment as of
March 31, 2024, respectively. The number of global corporate
defaults nearly doubled in 2023 as inflation and higher interest
rates squeezed some issuers’ cash flows. Furthermore, financing
conditions were challenging for the lowest-rated borrowers and
funding liquidity was tight. The Company incurred approximately 90%
loss for two disposed bonds, and recorded change in fair value of
short-term investment of $7,617,502 for its bond holdings during
the six months ended March 31, 2024. No change in fair value of
short-term investment was recognized for the six months ended March
31, 2023.
Provision for income taxes
Provision for income taxes was $665,148 for the
six months ended March 31, 2024, representing a decrease of
$309,210, or 31.7%, from $974,358 for the six months ended March
31, 2023, due to decreased taxable income. As the Company’s PRC
principal subsidiaries, Jiangxi Universe Pharmaceuticals Co., Ltd.
and Jiangxi Universe Pharmaceuticals Trade Co., Ltd., incurred net
loss during the six months ended March 31, 2024, the Company
evaluated the likelihood of the realization of deferred tax assets,
determined that deferred tax assets arising from net operating loss
carry-forwards in previous years might not be fully realized, and
recognized $665,148 in valuation allowance for deferred tax assets
during the six months ended March 31, 2024.
Net loss
Net loss was $13,101,457 for the six months
ended March 31, 2024, representing a $12,386,030 decrease from a
net loss of $715,427 for the six months ended March 31, 2023.
Basic and diluted loss per share were $3.59 for
the six months ended March 31, 2024, compared with basic and
diluted loss per share of $0.20 for the six months ended March
31, 2023.
Balance Sheet
As of March 31, 2024, the Company had cash of
$8,861,590, as compared to $5,285,247 as of September 30, 2023.
Cash Flow
Net cash used in operating activities
was $2,429,621 for the six months ended March 31, 2024,
compared with cash provided by operating activities of
$4,798,702 for the six months ended March 31, 2023.
Net cash used in investing activities was
$67,656 for the six months ended March 31, 2024, compared
with $646 for the six months ended March 31, 2023.
Net cash provided by financing activities was
$6,067,732 for the six months ended March 31, 2024, compared with
$2,080,918 for the six months ended March 31, 2023.
Subsequent Event
On July 15, 2024, the Company closed its
self-underwritten public offering (“Offering”) of 20,000,000
ordinary shares, par value $0.01875 per share (the “Ordinary
Shares”). The Ordinary Shares were priced at $1.25 per share. The
Company raised a total of $25 million through that Offering, before
deducting Offering-related expenses.
About Universe Pharmaceuticals INC
Universe Pharmaceuticals INC, headquartered in
Ji’an, Jiangxi, China, is a pharmaceutical producer and distributor
in China. The Company specializes in the manufacturing, marketing,
sales and distribution of traditional Chinese medicine derivatives
products targeting the elderly with the goal of addressing their
physical conditions in the aging process and to promote their
general well-being. The Company also distributes and sells
biomedical drugs, medical instruments, Traditional Chinese Medicine
Pieces, and dietary supplements manufactured by third-party
pharmaceutical companies. Currently, the Company’s products are
sold in 30 provinces of China. For more information, visit the
company’s website at http://www.universe-pharmacy.com/.
Forward-Looking Statements
All statements other than statements of
historical fact in this announcement are forward-looking
statements. These forward-looking statements involve known and
unknown risks and uncertainties and are based on current
expectations and projections about future events and financial
trends that the Company believes may affect its financial
condition, results of operations, business strategy and financial
needs. Investors can identify these forward-looking statements by
words or phrases such as “may,” “will,” “expect,” “anticipate,”
“aim,” “estimate,” “intend,” “plan,” “believe,” “potential,”
“continue,” “is/are likely to” or other similar expressions. The
Company undertakes no obligation to update forward-looking
statements to reflect subsequent occurring events or circumstances,
or changes in its expectations, except as may be required by law.
Although the Company believes that the expectations expressed in
these forward-looking statements are reasonable, it cannot assure
you that such expectations will turn out to be correct, and the
Company cautions investors that actual results may differ
materially from the anticipated results and encourages investors to
review other factors that may affect its future results in the
Company’s most recent annual report on Form 20-F and in its other
filings with the U.S. Securities and Exchange Commission.
For more information, please
contact:Email:IR@universe-pharmacy.comPhone:+86-0796-8403687
|
UNIVERSE PHARMACEUTICALS INC. AND
SUBSIDIARIESCONDENSED CONSOLIDATED
BALANCE SHEETS |
|
|
|
As of |
|
|
|
March 31, 2024 |
|
|
September 30,2023 |
|
|
|
(Unaudited) |
|
|
|
|
ASSETS |
|
|
|
|
|
|
CURRENT ASSETS |
|
|
|
|
|
|
|
|
Cash |
|
$ |
8,861,590 |
|
|
$ |
5,285,247 |
|
Short-term investments |
|
|
2,527,603 |
|
|
|
13,219,005 |
|
Accounts receivable, net |
|
|
14,384,228 |
|
|
|
10,667,603 |
|
Due from related parties |
|
|
- |
|
|
|
61,678 |
|
Inventories, net |
|
|
3,386,052 |
|
|
|
3,343,266 |
|
Advance to suppliers |
|
|
368,960 |
|
|
|
180,643 |
|
Prepayment for acquisition |
|
|
3,462,460 |
|
|
|
3,426,535 |
|
Prepaid expenses and other current assets |
|
|
539,240 |
|
|
|
590,377 |
|
TOTAL CURRENT ASSETS |
|
|
33,530,133 |
|
|
|
36,774,354 |
|
|
|
|
|
|
|
|
|
|
Property, plant and equipment, net |
|
|
3,522,997 |
|
|
|
3,699,965 |
|
Prepayments made to a related party for purchase of property |
|
|
2,215,974 |
|
|
|
2,192,982 |
|
Prepayments for construction in progress |
|
|
9,225,725 |
|
|
|
9,092,996 |
|
Intangible assets, net |
|
|
147,652 |
|
|
|
148,584 |
|
Investment in equity securities |
|
|
692,492 |
|
|
|
685,307 |
|
Deferred tax assets |
|
|
- |
|
|
|
656,980 |
|
Prepaid expenses-related party, non-current |
|
|
96,141 |
|
|
|
35,864 |
|
TOTAL NONCURRENT ASSETS |
|
|
15,900,981 |
|
|
|
16,512,678 |
|
|
|
|
|
|
|
|
|
|
TOTAL ASSETS |
|
$ |
49,431,114 |
|
|
$ |
53,287,032 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT LIABILITIES |
|
|
|
|
|
|
|
|
Short-term bank loans |
|
$ |
4,431,949 |
|
|
$ |
5,482,456 |
|
Accounts payable |
|
|
7,763,981 |
|
|
|
4,585,285 |
|
Taxes payable |
|
|
172,374 |
|
|
|
434,758 |
|
Due to related parties |
|
|
5,515,160 |
|
|
|
540,096 |
|
Accrued expenses and other current liabilities |
|
|
2,726,078 |
|
|
|
2,711,736 |
|
TOTAL CURRENT LIABILITIES |
|
|
20,609,542 |
|
|
|
13,754,331 |
|
|
|
|
|
|
|
|
|
|
Long-term bank loans |
|
|
2,077,476 |
|
|
|
- |
|
TOTAL
LIABILITIES |
|
|
22,687,018 |
|
|
|
13,754,331 |
|
|
|
|
|
|
|
|
|
|
COMMITMENTS AND
CONTINGENCIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SHAREHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
Ordinary shares, $0.01875 par value, 166,666,666 shares authorized,
3,645,974 and 3,625,000 shares issued and outstanding as of March
31, 2024 and September 30, 2023, respectively * |
|
|
68,362 |
|
|
|
67,969 |
|
Additional paid in capital |
|
|
29,278,766 |
|
|
|
29,279,159 |
|
Statutory reserve |
|
|
2,439,535 |
|
|
|
2,439,535 |
|
Retained earnings |
|
|
(2,942,153 |
) |
|
|
10,159,304 |
|
Accumulated other comprehensive loss |
|
|
(2,100,414 |
) |
|
|
(2,413,266 |
) |
TOTAL SHAREHOLDERS’ EQUITY |
|
|
26,744,096 |
|
|
|
39,532,701 |
|
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
$ |
49,431,114 |
|
|
$ |
53,287,032 |
|
|
UNIVERSE PHARMACEUTICALS INC. AND
SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF
INCOME AND COMPREHENSIVE
INCOME(UNAUDITED) |
|
|
|
For the Six Months EndedMarch
31, |
|
|
|
2024 |
|
|
2023 |
|
|
|
|
|
|
|
|
REVENUE |
|
$ |
12,884,370 |
|
|
$ |
18,467,186 |
|
COST OF REVENUE AND
RELATED TAX |
|
|
9,515,039 |
|
|
|
12,339,044 |
|
GROSS
PROFIT |
|
|
3,369,331 |
|
|
|
6,128,142 |
|
|
|
|
|
|
|
|
|
|
OPERATING
EXPENSES |
|
|
|
|
|
|
|
|
Selling expenses |
|
|
4,054,357 |
|
|
|
2,330,508 |
|
General and administrative
expenses |
|
|
968,608 |
|
|
|
1,380,053 |
|
Research and development
expenses |
|
|
86,503 |
|
|
|
2,268,335 |
|
Total operating expenses |
|
|
5,109,468 |
|
|
|
5,978,896 |
|
|
|
|
|
|
|
|
|
|
INCOME (LOSS) FROM
OPERATIONS |
|
|
(1,740,137 |
) |
|
|
149,246 |
|
|
|
|
|
|
|
|
|
|
OTHER INCOME
(EXPENSES) |
|
|
|
|
|
|
|
|
Interest expense, net |
|
|
(136,613 |
) |
|
|
(74,569 |
) |
Other income, net |
|
|
152,027 |
|
|
|
17,323 |
|
Realized (loss) gain on
short-term investments |
|
|
(3,094,084 |
) |
|
|
166,931 |
|
Change in fair value of
short-term investments |
|
|
(7,617,502 |
) |
|
|
- |
|
Total other (loss) income,
net |
|
|
(10,696,172 |
) |
|
|
109,685 |
|
|
|
|
|
|
|
|
|
|
(LOSS) INCOME BEFORE
INCOME TAX PROVISION |
|
|
(12,436,309 |
) |
|
|
258,931 |
|
|
|
|
|
|
|
|
|
|
PROVISION FOR INCOME
TAXES |
|
|
665,148 |
|
|
|
974,358 |
|
|
|
|
|
|
|
|
|
|
NET LOSS |
|
|
(13,101,457 |
) |
|
|
(715,427 |
) |
|
|
|
|
|
|
|
|
|
OTHER COMPREHENSIVE
INCOME |
|
|
|
|
|
|
|
|
Foreign currency translation
adjustment |
|
|
312,852 |
|
|
|
1,399,775 |
|
COMPREHENSIVE (LOSS)
INCOME |
|
$ |
(12,788,605 |
) |
|
$ |
684,348 |
|
|
|
|
|
|
|
|
|
|
Earnings per ordinary
share - basic and diluted |
|
$ |
(3.59 |
) |
|
$ |
(0.20 |
) |
Weighted average
shares - basic and diluted * |
|
$ |
3,645,974 |
|
|
$ |
3,625,000 |
|
|
CONDENSED CONSOLIDATED
STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITYFOR
THE SIX MONTHS ENDED MARCH 31, 2024 AND
2023(UNAUDITED) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated |
|
|
|
|
|
|
|
|
|
Additional |
|
|
|
|
|
|
|
|
Other |
|
|
|
|
|
|
Ordinary Share |
|
|
Paid in |
|
|
Statutory |
|
|
Retained |
|
|
Comprehensive |
|
|
|
|
|
|
Shares |
|
|
Amount |
|
|
Capital |
|
|
Reserve |
|
|
Earnings |
|
|
Income |
|
|
Total |
|
Balance at September 30, 2022 |
|
|
3,625,000 |
|
|
$ |
67,969 |
|
|
$ |
29,279,159 |
|
|
$ |
2,439,535 |
|
|
$ |
16,322,365 |
|
|
$ |
(1,666,705 |
) |
|
$ |
46,442,323 |
|
Net loss |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(715,427 |
) |
|
|
- |
|
|
|
(715,427 |
) |
Foreign currency translation
adjustment |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
1,399,775 |
|
|
|
1,399,775 |
|
Balance at March 31,
2023 |
|
|
3,625,000 |
|
|
$ |
67,969 |
|
|
$ |
29,279,159 |
|
|
$ |
2,439,535 |
|
|
$ |
15,606,938 |
|
|
$ |
(266,930 |
) |
|
$ |
47,126,671 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated |
|
|
|
|
|
|
|
|
|
|
Additional |
|
|
|
|
|
|
|
|
|
|
Other |
|
|
|
|
|
|
|
Ordinary Share |
|
|
Paid in |
|
|
Statutory |
|
|
Retained |
|
|
Comprehensive |
|
|
|
|
|
|
|
Shares |
|
|
Amount |
|
|
Capital |
|
|
Reserve |
|
|
Earnings |
|
|
Income |
|
|
Total |
|
Balance at September
30, 2023 |
|
|
3,625,000 |
|
|
$ |
67,969 |
|
|
$ |
29,279,159 |
|
|
$ |
2,439,535 |
|
|
$ |
10,159,304 |
|
|
$ |
(2,413,266 |
) |
|
$ |
39,532,701 |
|
Reverse share-split
adjustment |
|
|
20,974 |
|
|
|
393 |
|
|
|
(393 |
) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Net loss |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(13,101,457 |
) |
|
|
- |
|
|
|
(13,101,457 |
) |
Foreign currency translation
adjustment |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
312,852 |
|
|
|
312,852 |
|
Balance at March 31,
2024 |
|
|
3,645,974 |
|
|
$ |
68,362 |
|
|
$ |
29,278,766 |
|
|
$ |
2,439,535 |
|
|
$ |
(2,942,153 |
) |
|
$ |
(2,100,414 |
) |
|
$ |
26,744,096 |
|
|
UNIVERSE PHARMACEUTICALS INC. AND
SUBSIDIARIESCONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS(UNAUDITED) |
|
|
|
For the Six Months EndedMarch
31, |
|
|
|
2024 |
|
|
2023 |
|
Cash flows from
operating activities: |
|
|
|
|
|
|
Net loss |
|
$ |
(13,101,457 |
) |
|
$ |
(715,427 |
) |
Adjustments to reconcile net income to net cash provided by
operating activities: |
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
248,860 |
|
|
|
257,781 |
|
Gain from disposal of fixed assets |
|
|
- |
|
|
|
(115 |
) |
Changes in allowance for doubtful accounts |
|
|
(265,530 |
) |
|
|
- |
|
Changes in inventory reserve |
|
|
(34,303 |
) |
|
|
(84,956 |
) |
Deferred income tax provision |
|
|
665,148 |
|
|
|
556,867 |
|
Realized loss (gain) on short-term investments |
|
|
3,094,084 |
|
|
|
(166,931 |
) |
Change in fair value of short-term investments |
|
|
7,617,502 |
|
|
|
- |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
|
Accounts receivable |
|
|
(3,346,205 |
) |
|
|
(1,763,903 |
) |
Inventories |
|
|
26,553 |
|
|
|
(488,746 |
) |
Advance to suppliers, net |
|
|
(186,782 |
) |
|
|
(187,460 |
) |
Prepaid expenses and other current assets |
|
|
57,436 |
|
|
|
(220,969 |
) |
Prepaid expenses-related party, non-current |
|
|
(60,016 |
) |
|
|
- |
|
Accounts payable |
|
|
3,136,661 |
|
|
|
7,928,308 |
|
Taxes payable |
|
|
(267,456 |
) |
|
|
149,684 |
|
Accrued expenses and other current liabilities |
|
|
(14,116 |
) |
|
|
(465,431 |
) |
Net cash (used in)
provided by operating activities |
|
|
(2,429,621 |
) |
|
|
4,798,702 |
|
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities: |
|
|
|
|
|
|
|
|
Purchases of property and equipment |
|
|
(30,189 |
) |
|
|
(646 |
) |
Prepayments for construction in progress |
|
|
(37,467 |
) |
|
|
- |
|
Purchase of short-term investments |
|
|
(313,541 |
) |
|
|
|
|
Sale of short-term investments |
|
|
313,541 |
|
|
|
|
|
Net cash used in
investing activities |
|
|
(67,656 |
) |
|
|
(646 |
) |
|
|
|
|
|
|
|
|
|
Cash flows from
financing activities: |
|
|
|
|
|
|
|
|
Proceeds from bank loans |
|
|
2,081,483 |
|
|
|
1,146,776 |
|
Repayment of bank loans |
|
|
(1,110,124 |
) |
|
|
(1,146,776 |
) |
Proceeds from related party borrowings |
|
|
5,096,373 |
|
|
|
2,080,918 |
|
Net cash provided by
financing activities |
|
|
6,067,732 |
|
|
|
2,080,918 |
|
|
|
|
|
|
|
|
|
|
Effect of changes of
foreign exchange rates on cash |
|
|
5,888 |
|
|
|
364,084 |
|
Net increase in
cash |
|
|
3,576,343 |
|
|
|
7,243,058 |
|
Cash, beginning of
period |
|
|
5,285,247 |
|
|
|
5,711,458 |
|
Cash, end of
period |
|
$ |
8,861,590 |
|
|
$ |
12,954,516 |
|
|
|
|
|
|
|
|
|
|
Supplemental
disclosure of cash flow information |
|
|
|
|
|
|
|
|
Cash paid for interest |
|
$ |
148,861 |
|
|
$ |
90,044 |
|
Cash paid for income tax |
|
$ |
969,914 |
|
|
$ |
575,132 |
|
Universe Pharmaceuticals (NASDAQ:UPC)
Historical Stock Chart
Von Okt 2024 bis Nov 2024
Universe Pharmaceuticals (NASDAQ:UPC)
Historical Stock Chart
Von Nov 2023 bis Nov 2024