2021 Q3 Form 10-Q Financial Statement

#000117184321005990 Filed on August 16, 2021

View on sec.gov

Income Statement

Concept 2021 Q3 2021 Q2 2020 Q2
Revenue $11.90M $14.55M $10.42M
YoY Change -3.28% 39.7% -32.6%
Cost Of Revenue $11.86M $14.77M $10.12M
YoY Change -8.4% 45.97% -32.94%
Gross Profit $43.00K -$218.0K $298.0K
YoY Change -106.71% -173.15% -18.58%
Gross Profit Margin 0.36% -1.5% 2.86%
Selling, General & Admin $1.529M $7.972M $1.202M
YoY Change 135.23% 563.23% -15.89%
% of Gross Profit 3555.81% 403.36%
Research & Development $88.00K $89.00K $116.0K
YoY Change -22.12% -23.28% -27.04%
% of Gross Profit 204.65% 38.93%
Depreciation & Amortization $5.000K $0.00 $2.000K
YoY Change 150.0% -100.0% -80.0%
% of Gross Profit 11.63% 0.67%
Operating Expenses $1.617M $8.061M $1.318M
YoY Change 111.93% 511.61% -17.0%
Operating Profit -$1.574M -$8.279M -$1.020M
YoY Change 12.11% 711.67% -16.53%
Interest Expense $1.000K $1.000K
YoY Change 0.0%
% of Operating Profit
Other Income/Expense, Net $2.817M $4.611M $40.00K
YoY Change -3453.57% 11427.5% -95.04%
Pretax Income $1.243M -$3.668M -$980.0K
YoY Change -183.53% 274.29% 136.14%
Income Tax -$131.0K -$22.00K -$10.00K
% Of Pretax Income -10.54%
Net Earnings $1.375M -$3.646M -$968.0K
YoY Change -203.15% 276.65% 155.41%
Net Earnings / Revenue 11.55% -25.06% -9.29%
Basic Earnings Per Share $0.04 -$0.11
Diluted Earnings Per Share $38.92K -$110.7K
COMMON SHARES
Basic Shares Outstanding 35.33M 32.93M 21.69M
Diluted Shares Outstanding

Balance Sheet

Concept 2021 Q3 2021 Q2 2020 Q2
SHORT-TERM ASSETS
Cash & Short-Term Investments $8.731M $11.75M
YoY Change
Cash & Equivalents $8.731M $11.75M $1.055M
Short-Term Investments
Other Short-Term Assets $1.658M $462.0K $959.0K
YoY Change 72.53% -51.82% 11887.5%
Inventory
Prepaid Expenses
Receivables $2.669M $3.707M $2.520M
Other Receivables $1.658M $462.0K $959.0K
Total Short-Term Assets $21.83M $24.06M $9.664M
YoY Change 116.07% 148.97% -5.35%
LONG-TERM ASSETS
Property, Plant & Equipment $190.0K $116.0K $73.00K
YoY Change 156.76% 58.9% -26.26%
Goodwill
YoY Change
Intangibles $3.275M $3.438M $1.493M
YoY Change 154.27% 130.27% 4047.22%
Long-Term Investments $1.911M $450.0K
YoY Change
Other Assets $1.262M $2.368M
YoY Change
Total Long-Term Assets $13.09M $12.89M $7.410M
YoY Change 89.46% 73.93% 66.11%
TOTAL ASSETS
Total Short-Term Assets $21.83M $24.06M $9.664M
Total Long-Term Assets $13.09M $12.89M $7.410M
Total Assets $34.92M $36.95M $17.07M
YoY Change 105.26% 116.4% 16.38%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $750.0K $1.015M $395.0K
YoY Change 35.87% 156.96% -46.77%
Accrued Expenses $543.0K $467.0K
YoY Change
Deferred Revenue $1.311M $1.539M $1.619M
YoY Change -53.54% -4.94%
Short-Term Debt $0.00 $0.00
YoY Change
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities $9.990M $13.44M $6.365M
YoY Change 28.8% 111.22% -22.59%
LONG-TERM LIABILITIES
Long-Term Debt $135.0K $135.0K
YoY Change
Other Long-Term Liabilities $1.923M $1.979M
YoY Change
Total Long-Term Liabilities $2.058M $2.114M
YoY Change
TOTAL LIABILITIES
Total Short-Term Liabilities $9.990M $13.44M $6.365M
Total Long-Term Liabilities $2.058M $2.114M
Total Liabilities $12.05M $15.56M $6.489M
YoY Change 52.8% 139.76% -22.28%
SHAREHOLDERS EQUITY
Retained Earnings -$42.57M -$43.94M -$39.05M
YoY Change 5.4% 12.52% 8.39%
Common Stock $35.00K $35.00K $22.00K
YoY Change 59.09% 59.09% 37.5%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $22.93M $21.46M $10.64M
YoY Change
Total Liabilities & Shareholders Equity $34.92M $36.95M $17.07M
YoY Change 105.26% 116.4% 16.38%

Cashflow Statement

Concept 2021 Q3 2021 Q2 2020 Q2
OPERATING ACTIVITIES
Net Income $1.375M -$3.646M -$968.0K
YoY Change -203.15% 276.65% 155.41%
Depreciation, Depletion And Amortization $5.000K $0.00 $2.000K
YoY Change 150.0% -100.0% -80.0%
Cash From Operating Activities -$1.269M -$1.625M
YoY Change
INVESTING ACTIVITIES
Capital Expenditures -$85.00K -$221.0K
YoY Change
Acquisitions
YoY Change
Other Investing Activities -$1.651M -$2.275M
YoY Change
Cash From Investing Activities -$1.736M -$2.496M
YoY Change
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 0.000 0.000
YoY Change
NET CHANGE
Cash From Operating Activities -1.269M -1.625M
Cash From Investing Activities -1.736M -2.496M
Cash From Financing Activities 0.000 0.000
Net Change In Cash -3.005M -4.121M
YoY Change
FREE CASH FLOW
Cash From Operating Activities -$1.269M -$1.625M
Capital Expenditures -$85.00K -$221.0K
Free Cash Flow -$1.184M -$1.404M
YoY Change

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cnet Increase Decrease In Shortterm Lease Liability
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43000 USD
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us-gaap Effect Of Exchange Rate On Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Including Disposal Group And Discontinued Operations
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us-gaap Nature Of Operations
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<table cellpadding="0" cellspacing="0" style="width: 100%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 12pt; margin-left: 0pt; margin-right: 0pt;"><tbody><tr style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 12pt;"><td rowspan="1" style="width: 2%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 12pt;"> <p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; font-variant: normal; margin: 0pt;"><b><em style="font: inherit;">1.</em></b></p> </td><td style="vertical-align: top; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 12pt; width: 98%;"> <p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; font-variant: normal; margin: 0pt;"><b>Organization and nature of operations </b></p> </td></tr> </tbody></table> <p style="font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;"> </p> <p style="font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt 0pt 0pt 27pt;">ZW Data Action Technologies Inc. (f/k/a ChinaNet Online Holdings, Inc.) (the “Company”) was incorporated in the State of Texas in <em style="font: inherit;"> April 2006 </em>and re-domiciled to become a Nevada corporation in <em style="font: inherit;"> October 2006. </em>On <em style="font: inherit;"> June 26, 2009, </em>the Company consummated a share exchange transaction with China Net Online Media Group Limited (the “Share Exchange”), a company organized under the laws of British Virgin Islands (“China Net BVI”). As a result of the Share Exchange, China Net BVI became a wholly owned subsidiary of the Company and the Company is now a holding company, which, through certain contractual arrangements with operating companies in the People’s Republic of China (the “PRC”), is engaged in providing Internet advertising, precision marketing, e-commerce online to offline (<em style="font: inherit;">O2O</em>) advertising and marketing services as well as the related data and technical services to small and medium enterprises (SMEs) in the PRC.</p>
us-gaap Use Of Estimates
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<table border="0" cellpadding="0" cellspacing="0" style="width:100%;font-family:Times New Roman;font-size:10pt;"><tbody><tr><td style="width:7pt;"/><td style="vertical-align:top;width:18pt;"> <p style="font-family:Times New Roman;font-size:10pt;font-variant:normal;margin:0pt;"><b>c)</b></p> </td><td style="vertical-align:top;"> <p style="font-family:Times New Roman;font-size:10pt;font-variant:normal;margin:0pt;"><b>Use of estimates</b></p> </td></tr> </tbody></table> <p style="font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;"> </p> <p style="font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:justify;margin:0pt 0pt 0pt 28pt;">The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the related disclosure of contingent assets and liabilities at the date of these consolidated financial statements, and the reported amounts of revenue and expenses during the reporting period. The Company continually evaluates these estimates and assumptions based on the most recently available information, historical experience and various other assumptions that the Company believes to be reasonable under the circumstances. Since the use of estimates is an integral component of the financial reporting process, actual results could differ from those estimates.</p> <p style="font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;"> </p>
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3.00

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