2022 Q4 Form 10-Q Financial Statement

#000117184322007589 Filed on November 18, 2022

View on sec.gov

Income Statement

Concept 2022 Q4 2022 Q3 2021 Q3
Revenue $4.422M $7.216M $11.90M
YoY Change -64.57% -39.36% -3.28%
Cost Of Revenue $4.618M $7.267M $11.86M
YoY Change -59.81% -38.71% -8.4%
Gross Profit -$196.0K -$51.00K $43.00K
YoY Change -119.8% -218.6% -106.71%
Gross Profit Margin -4.43% -0.71% 0.36%
Selling, General & Admin $2.657M $1.723M $1.529M
YoY Change -6.34% 12.69% 135.23%
% of Gross Profit 3555.81%
Research & Development $48.00K $57.00K $88.00K
YoY Change -36.0% -35.23% -22.12%
% of Gross Profit 204.65%
Depreciation & Amortization $555.0K $30.00K $5.000K
YoY Change 204.95% 500.0% 150.0%
% of Gross Profit 11.63%
Operating Expenses $2.705M $1.780M $1.617M
YoY Change -7.11% 10.08% 111.93%
Operating Profit -$2.901M -$1.831M -$1.574M
YoY Change 50.94% 16.33% 12.11%
Interest Expense $20.00K $21.00K $1.000K
YoY Change 1900.0% 2000.0% 0.0%
% of Operating Profit
Other Income/Expense, Net $1.079M -$1.007M $2.817M
YoY Change -7.46% -135.75% -3453.57%
Pretax Income -$4.521M -$2.838M $1.243M
YoY Change 498.81% -328.32% -183.53%
Income Tax -$1.000K $2.000K -$131.0K
% Of Pretax Income -10.54%
Net Earnings -$4.520M -$2.840M $1.375M
YoY Change 286.99% -306.55% -203.15%
Net Earnings / Revenue -102.22% -39.36% 11.55%
Basic Earnings Per Share -$0.08 $0.04
Diluted Earnings Per Share -$0.63 -$79.27K $38.92K
COMMON SHARES
Basic Shares Outstanding 35.83M 35.83M 35.33M
Diluted Shares Outstanding

Balance Sheet

Concept 2022 Q4 2022 Q3 2021 Q3
SHORT-TERM ASSETS
Cash & Short-Term Investments $4.391M $2.154M $8.731M
YoY Change -38.78% -75.33%
Cash & Equivalents $4.391M $2.154M $8.731M
Short-Term Investments
Other Short-Term Assets $1.610M $1.623M $1.658M
YoY Change -2.84% -2.11% 72.53%
Inventory
Prepaid Expenses
Receivables $1.745M $2.999M $2.669M
Other Receivables $0.00 $0.00 $1.658M
Total Short-Term Assets $12.31M $14.38M $21.83M
YoY Change -38.18% -34.1% 116.07%
LONG-TERM ASSETS
Property, Plant & Equipment $249.0K $267.0K $190.0K
YoY Change -33.6% 40.53% 156.76%
Goodwill
YoY Change
Intangibles $3.264M $5.896M $3.275M
YoY Change -56.61% 80.03% 154.27%
Long-Term Investments $1.596M $2.149M $1.911M
YoY Change -30.0% 12.45%
Other Assets $475.0K $466.0K $1.262M
YoY Change -7.95% -63.07%
Total Long-Term Assets $7.345M $10.62M $13.09M
YoY Change -42.22% -18.89% 89.46%
TOTAL ASSETS
Total Short-Term Assets $12.31M $14.38M $21.83M
Total Long-Term Assets $7.345M $10.62M $13.09M
Total Assets $19.66M $25.00M $34.92M
YoY Change -39.76% -28.4% 105.26%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $205.0K $276.0K $750.0K
YoY Change -81.68% -63.2% 35.87%
Accrued Expenses $785.0K $559.0K $543.0K
YoY Change 32.83% 2.95%
Deferred Revenue $739.0K $951.0K $1.311M
YoY Change -40.64% -27.46% -53.54%
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities $5.700M $6.561M $9.990M
YoY Change -35.38% -34.32% 28.8%
LONG-TERM LIABILITIES
Long-Term Debt $126.0K $123.0K $135.0K
YoY Change -8.03% -8.89%
Other Long-Term Liabilities $1.535M $1.557M $1.923M
YoY Change -19.51% -19.03%
Total Long-Term Liabilities $1.661M $1.680M $2.058M
YoY Change -18.74% -18.37%
TOTAL LIABILITIES
Total Short-Term Liabilities $5.700M $6.561M $9.990M
Total Long-Term Liabilities $1.661M $1.680M $2.058M
Total Liabilities $7.361M $8.241M $12.05M
YoY Change -32.25% -31.6% 52.8%
SHAREHOLDERS EQUITY
Retained Earnings -$53.53M -$49.01M -$42.57M
YoY Change 22.39% 15.13% 5.4%
Common Stock $7.000K $36.00K $35.00K
YoY Change -80.0% 2.86% 59.09%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $12.30M $16.76M $22.93M
YoY Change
Total Liabilities & Shareholders Equity $19.66M $25.00M $34.92M
YoY Change -39.76% -28.4% 105.26%

Cashflow Statement

Concept 2022 Q4 2022 Q3 2021 Q3
OPERATING ACTIVITIES
Net Income -$4.520M -$2.840M $1.375M
YoY Change 286.99% -306.55% -203.15%
Depreciation, Depletion And Amortization $555.0K $30.00K $5.000K
YoY Change 204.95% 500.0% 150.0%
Cash From Operating Activities $1.220M -$2.265M -$1.269M
YoY Change -154.51% 78.49%
INVESTING ACTIVITIES
Capital Expenditures $0.00 $0.00 -$85.00K
YoY Change -100.0% -100.0%
Acquisitions
YoY Change
Other Investing Activities $1.031M $0.00 -$1.651M
YoY Change 56.69% -100.0%
Cash From Investing Activities $1.031M $0.00 -$1.736M
YoY Change 63.65% -100.0%
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 0.000
YoY Change
NET CHANGE
Cash From Operating Activities 1.220M -2.265M -1.269M
Cash From Investing Activities 1.031M 0.000 -1.736M
Cash From Financing Activities 0.000 0.000 0.000
Net Change In Cash 2.251M -2.265M -3.005M
YoY Change -239.99% -24.63%
FREE CASH FLOW
Cash From Operating Activities $1.220M -$2.265M -$1.269M
Capital Expenditures $0.00 $0.00 -$85.00K
Free Cash Flow $1.220M -$2.265M -$1.184M
YoY Change -155.2% 91.3%

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CY2022Q3 us-gaap Profit Loss
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us-gaap Profit Loss
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us-gaap Nature Of Operations
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<table border="0" cellpadding="0" cellspacing="0" style="width:100%;font-family:Times New Roman;font-size:12pt;"><tbody><tr><td style="vertical-align: top; width: 21px;"> <p style="font-family:Times New Roman;font-size:10pt;font-variant:normal;margin:0pt;"><b><em style="font: inherit;">1.</em></b></p> </td><td style="vertical-align: top; width: 1410px;"> <p style="font-family:Times New Roman;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:Times New Roman;font-size:10pt;font-variant:normal;text-align:justify;margin:0pt 0pt 0pt 18pt;">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, Ecommerce 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="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: &quot;Times New Roman&quot;; font-size: 10pt; font-variant: normal; margin: 0pt 0pt 0pt 27pt; text-align: justify;">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>
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CY2021Q3 cnet Foreign Currency Exchange Rate Translation Average
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LongtermLeaseCost
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CY2022Q3 us-gaap Lease Cost
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CY2022Q3 cnet Prepayment And Deposit To Suppliers
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10000 usd
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2432000 usd
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2333000 usd
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9646000 usd
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3350000 usd
CY2022Q3 cnet Accumulated Impairment Of Intangible Assets Finite Lived
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400000 usd
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CY2021Q4 us-gaap Finite Lived Intangible Assets Accumulated Amortization
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us-gaap Finite Lived Intangible Asset Useful Life
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P3Y3M7D
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2000 usd
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559000 usd
CY2022Q3 us-gaap Deferred Tax Assets Valuation Allowance
DeferredTaxAssetsValuationAllowance
12906000 usd
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12271000 usd
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441000 usd
CY2021Q4 cnet Operating Loss Carryforwards Taxable Income Deduction Limitations
OperatingLossCarryforwardsTaxableIncomeDeductionLimitations
0.80 pure
CY2022Q3 us-gaap Warrants And Rights Outstanding
WarrantsAndRightsOutstanding
1280000 usd
CY2022Q2 us-gaap Warrants And Rights Outstanding
WarrantsAndRightsOutstanding
257000 usd
CY2021Q4 us-gaap Warrants And Rights Outstanding
WarrantsAndRightsOutstanding
2039000 usd
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FairValueAdjustmentOfWarrants
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CY2022Q3 us-gaap Fair Value Adjustment Of Warrants
FairValueAdjustmentOfWarrants
1023000 usd
CY2021Q3 us-gaap Warrants And Rights Outstanding
WarrantsAndRightsOutstanding
3686000 usd
CY2021Q3 us-gaap Warrants And Rights Outstanding
WarrantsAndRightsOutstanding
58000 usd
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WarrantsAndRightsOutstanding
6597000 usd
CY2021Q1 us-gaap Warrants And Rights Outstanding
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11921000 usd
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1505000 usd
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FairValueAdjustmentOfWarrants
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FairValueAdjustmentOfWarrants
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5001705
CY2021 cnet Class Of Warrant Or Right Exercisable Weighted Average Remaining Contractual Term
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cnet Class Of Warrant Or Right Issued During Period
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CY2022Q3 us-gaap Class Of Warrant Or Right Outstanding
ClassOfWarrantOrRightOutstanding
5001705
cnet Class Of Warrant Or Right Outstanding Weighted Average Remaining Contractual Term
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CY2022Q3 cnet Class Of Warrant Or Right Outstanding Weighted Average Exercise Price
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CY2022Q3 cnet Class Of Warrant Or Right Exercisable
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cnet Class Of Warrant Or Right Exercisable Weighted Average Remaining Contractual Term
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CY2022Q2 cnet Withholding Tax Rate Pursuant To Eit Law
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us-gaap Operating Income Loss
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CY2022Q3 us-gaap Assets
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CY2021Q4 us-gaap Assets
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32631000 usd
CY2022Q3 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
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7216000 usd
CY2022Q3 us-gaap Cost Of Goods And Services Sold
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CY2022Q3 us-gaap Operating Expenses
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1780000 usd
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552000 usd
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1023000 usd
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cnet Payment To Acquire Long Term Assets
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CY2021Q3 us-gaap Cost Of Goods And Services Sold
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CY2021Q3 us-gaap Operating Expenses
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CY2021Q3 us-gaap Depreciation And Amortization
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CY2021Q3 us-gaap Operating Income Loss
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CY2021Q3 us-gaap Fair Value Adjustment Of Warrants
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CY2021Q3 us-gaap Profit Loss
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CY2021Q3 cnet Payment To Acquire Long Term Assets
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us-gaap Net Income Loss Available To Common Stockholders Diluted
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CY2022Q3 us-gaap Net Income Loss Available To Common Stockholders Diluted
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CY2021Q3 us-gaap Net Income Loss Available To Common Stockholders Diluted
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1375000 usd
us-gaap Weighted Average Number Of Shares Outstanding Basic
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us-gaap Weighted Average Number Of Shares Outstanding Basic
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CY2022Q3 us-gaap Weighted Average Number Of Shares Outstanding Basic
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35827677
CY2021Q3 us-gaap Weighted Average Number Of Shares Outstanding Basic
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35332220
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-0.15
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CY2022Q3 us-gaap Earnings Per Share Basic
EarningsPerShareBasic
-0.08
CY2021Q3 us-gaap Earnings Per Share Basic
EarningsPerShareBasic
0.04
us-gaap Allocated Share Based Compensation Expense
AllocatedShareBasedCompensationExpense
135000 usd
us-gaap Allocated Share Based Compensation Expense
AllocatedShareBasedCompensationExpense
6945000 usd
CY2022Q3 us-gaap Allocated Share Based Compensation Expense
AllocatedShareBasedCompensationExpense
51000 usd
CY2021Q3 us-gaap Allocated Share Based Compensation Expense
AllocatedShareBasedCompensationExpense
88000 usd

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