2024 Q3 Form 10-Q Financial Statement

#000117184324004216 Filed on July 29, 2024

View on sec.gov

Income Statement

Concept 2024 Q3 2024 Q1 2023 Q4
Revenue $3.239M $3.531M $5.268M
YoY Change -64.72% -44.09% 19.13%
Cost Of Revenue $3.184M $3.459M $5.275M
YoY Change -65.33% -47.83% 14.23%
Gross Profit $55.00K $72.00K -$7.000K
YoY Change -1475.0% -122.93% -96.43%
Gross Profit Margin 1.7% 2.04% -0.13%
Selling, General & Admin $2.047M $994.0K $521.0K
YoY Change 27.78% 1.43% -80.39%
% of Gross Profit 3721.82% 1380.56%
Research & Development $0.00 $0.00 -$1.000K
YoY Change -100.0% -102.08%
% of Gross Profit 0.0% 0.0%
Depreciation & Amortization $20.00K $238.0K $322.0K
YoY Change 0.0% -26.09% -41.98%
% of Gross Profit 36.36% 330.56%
Operating Expenses $2.047M $994.0K $520.0K
YoY Change 27.78% -0.4% -80.78%
Operating Profit -$1.992M -$922.0K -$527.0K
YoY Change 24.03% -29.73% -81.83%
Interest Expense $66.00K $91.00K $68.00K
YoY Change -16.46% 26.39% 240.0%
% of Operating Profit
Other Income/Expense, Net $87.00K $69.00K -$4.000K
YoY Change -1.14% -58.93% -100.37%
Pretax Income -$1.905M -$853.0K -$1.910M
YoY Change 25.49% -25.44% -57.75%
Income Tax $0.00 -$3.000K -$2.000K
% Of Pretax Income
Net Earnings -$1.914M -$850.0K -$1.908M
YoY Change 25.92% -25.63% -57.79%
Net Earnings / Revenue -59.09% -24.07% -36.22%
Basic Earnings Per Share -$1.06 -$0.12
Diluted Earnings Per Share -$1.06 -$0.12 -$0.26
COMMON SHARES
Basic Shares Outstanding 7.205M 7.205M 7.205M
Diluted Shares Outstanding

Balance Sheet

Concept 2024 Q3 2024 Q1 2023 Q4
SHORT-TERM ASSETS
Cash & Short-Term Investments $1.123M $467.0K $817.0K
YoY Change -14.54% -70.67% -81.39%
Cash & Equivalents $1.120M $470.0K $820.0K
Short-Term Investments
Other Short-Term Assets $2.412M $2.869M $2.794M
YoY Change -0.41% -13.77% 73.54%
Inventory
Prepaid Expenses
Receivables $1.478M $749.0K $844.0K
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $9.856M $9.295M $8.960M
YoY Change 5.06% -14.54% -27.23%
LONG-TERM ASSETS
Property, Plant & Equipment $134.0K $187.0K $215.0K
YoY Change -18.79% -16.89% -13.65%
Goodwill $78.00K $0.00
YoY Change
Intangibles $210.0K $646.0K $841.0K
YoY Change -91.12% -78.21% -74.23%
Long-Term Investments $397.0K $794.0K $794.0K
YoY Change -60.3% -50.5% -50.25%
Other Assets $410.0K $404.0K $401.0K
YoY Change -11.45% -16.18% -15.58%
Total Long-Term Assets $1.151M $2.109M $2.273M
YoY Change -78.68% -69.68% -69.05%
TOTAL ASSETS
Total Short-Term Assets $9.856M $9.295M $8.960M
Total Long-Term Assets $1.151M $2.109M $2.273M
Total Assets $11.01M $11.40M $11.23M
YoY Change -25.52% -36.04% -42.86%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $500.0K $266.0K $201.0K
YoY Change 155.1% 22.02% -1.95%
Accrued Expenses $103.0K $403.0K $374.0K
YoY Change -70.4% -30.03% -52.36%
Deferred Revenue $700.0K $1.427M $843.0K
YoY Change -38.22% 98.19% 14.07%
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities $5.981M $5.861M $4.855M
YoY Change 17.46% 10.13% -14.82%
LONG-TERM LIABILITIES
Long-Term Debt $125.0K $123.0K $124.0K
YoY Change 2.46% -3.15% -1.59%
Other Long-Term Liabilities $0.00
YoY Change -100.0%
Total Long-Term Liabilities $125.0K $123.0K $124.0K
YoY Change -91.36% -92.44% -92.53%
TOTAL LIABILITIES
Total Short-Term Liabilities $5.981M $5.861M $4.855M
Total Long-Term Liabilities $125.0K $123.0K $124.0K
Total Liabilities $6.106M $5.988M $4.979M
YoY Change -6.61% -13.83% -32.36%
SHAREHOLDERS EQUITY
Retained Earnings -$62.67M -$60.54M -$59.69M
YoY Change 8.46% 10.36% 11.52%
Common Stock $2.000K $7.000K $7.000K
YoY Change -71.43% 0.0% 0.0%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $4.838M $5.411M $6.254M
YoY Change
Total Liabilities & Shareholders Equity $11.01M $11.40M $11.23M
YoY Change -25.52% -36.04% -42.86%

Cashflow Statement

Concept 2024 Q3 2024 Q1 2023 Q4
OPERATING ACTIVITIES
Net Income -$1.914M -$850.0K -$1.908M
YoY Change 25.92% -25.63% -57.79%
Depreciation, Depletion And Amortization $20.00K $238.0K $322.0K
YoY Change 0.0% -26.09% -41.98%
Cash From Operating Activities -$198.0K -$350.0K -$476.0K
YoY Change -70.62% -61.79% -139.02%
INVESTING ACTIVITIES
Capital Expenditures $0.00 $29.00K
YoY Change -100.0%
Acquisitions
YoY Change
Other Investing Activities -$6.000K $9.000K -$9.000K
YoY Change -140.0% -100.48% -100.87%
Cash From Investing Activities -$6.000K $9.000K -$38.00K
YoY Change -83.78% -100.48% -103.69%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 806.0K $0.00 0.000
YoY Change
NET CHANGE
Cash From Operating Activities -198.0K -$350.0K -476.0K
Cash From Investing Activities -6.000K $9.000K -38.00K
Cash From Financing Activities 806.0K $0.00 0.000
Net Change In Cash 602.0K -$350.0K -514.0K
YoY Change -184.67% -87.5% -122.83%
FREE CASH FLOW
Cash From Operating Activities -$198.0K -$350.0K -$476.0K
Capital Expenditures $0.00 $29.00K
Free Cash Flow -$198.0K -$505.0K
YoY Change -72.73% -141.39%

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<table border="0" cellpadding="0" cellspacing="0" style="width: 100%; text-indent: 0px;"> <tbody><tr style="vertical-align: top;"> <td style="width: 27pt;"> <p style="font-family: 'Times New Roman', Times, serif;font-size: 10pt;font-variant:normal;margin:0pt;"><b>1.</b></p> </td> <td style="width: auto;"> <p style="font-family: 'Times New Roman', 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;, Times, serif; font-size: 10pt; font-variant: normal; margin: 0pt 0pt 0pt 28pt; text-indent: 0pt; text-align: justify;">ZW Data Action Technologies Inc. (the “Company”) was incorporated in the State of Texas in April 2006 and re-domiciled to become a Nevada corporation in October 2006. On June 26, 2009, 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 (O2O) advertising and marketing services as well as the related data and technical services to small and medium enterprises (SMEs) in the PRC. The Company also develops blockchain enabled web/mobile applications and provides software solutions, i.e., Software-as-a-Service (“SaaS”) services for clients.</p>
CY2024Q1 us-gaap Operating Income Loss
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CashAndCashEquivalentsAtCarryingValue
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CY2024Q1 cnet Working Capital
WorkingCapital
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CY2023Q4 us-gaap Cash And Cash Equivalents At Carrying Value
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CY2023Q4 cnet Working Capital
WorkingCapital
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CY2024Q1 us-gaap Use Of Estimates
UseOfEstimates
<table border="0" cellpadding="0" cellspacing="0" style="width: 100%; text-indent: 0px;"> <tbody><tr style="vertical-align: top;"> <td style="width: 27pt;"> <p style="font-family: 'Times New Roman', Times, serif;font-size: 10pt;font-variant:normal;margin:0pt;"><b>c)</b></p> </td> <td style="width: auto;"> <p style="font-family: 'Times New Roman', Times, serif;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 28pt; text-align: justify; text-indent: 0pt;">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>
CY2024Q1 us-gaap Foreign Currency Exchange Rate Translation1
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CY2024Q1 cnet Foreign Currency Exchange Rate Translation Average
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CY2023Q1 cnet Foreign Currency Exchange Rate Translation Average
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AllowanceForDoubtfulAccountsReceivable
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5000 usd
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187000 usd
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215000 usd
CY2024Q1 us-gaap Depreciation
Depreciation
30000.00 usd
CY2023Q1 us-gaap Depreciation
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20000.00 usd
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5285000 usd
CY2024Q1 cnet Accumulated Impairment Of Intangible Assets Finite Lived
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CY2023Q4 cnet Accumulated Impairment Of Intangible Assets Finite Lived
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3744000 usd
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841000 usd
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210000 usd
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300000 usd
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3000.000 usd
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3000.000 usd
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3000.000 usd
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1000.000 usd
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403000 usd
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350000 usd
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-850000 usd
CY2023Q1 us-gaap Net Income Loss Available To Common Stockholders Diluted
NetIncomeLossAvailableToCommonStockholdersDiluted
-1143000 usd
CY2024Q1 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
7204506
CY2023Q1 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
7174506
CY2024Q1 us-gaap Earnings Per Share Basic
EarningsPerShareBasic
-0.12
CY2023Q1 us-gaap Earnings Per Share Basic
EarningsPerShareBasic
-0.16
CY2024Q1 us-gaap Allocated Share Based Compensation Expense
AllocatedShareBasedCompensationExpense
0 usd
CY2023Q1 us-gaap Allocated Share Based Compensation Expense
AllocatedShareBasedCompensationExpense
35000 usd

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