Baosheng Media Group Holdings Limited Reports Financial Results for the First Half of 2022
Ms.
Financial Highlights for the First Half of 2022 |
||||||||||||
For the Six Months Ended |
||||||||||||
2022 |
2021 |
% |
||||||||||
Revenues |
$ |
428,150 |
$ |
2,415,352 |
-82.3 |
% |
||||||
Gross (loss) profit |
$ |
(1,062,518) |
$ |
1,444,334 |
-173.6 |
% |
||||||
Gross margin |
-248.2 |
% |
59.8 |
% |
-515.0 |
% |
||||||
Loss from operations |
$ |
(6,536,807) |
$ |
(2,242,820) |
191.5 |
% |
||||||
Net loss |
$ |
(6,310,346) |
$ |
(271,671) |
2,222.8 |
% |
||||||
Loss per share |
$ |
(0.22) |
$ |
(0.01) |
2,100.0 |
% |
- Revenue decreased by 82.3% to
$0.4 million in the first half of 2022 from$2.4 million in the first half of 2021. - Gross profit decreased by 173.6% to a gross loss of
$1.1 million in the first half of 2022 from a gross profit of$1.4 million in the first half of 2021. - Gross margin was negative 248.2% in the first half of 2022, compared to 59.8% in the first half of 2021.
- Loss from operations increased by 191.5% from
$2.4 million in the first half of 2021 to$6.5 million in the first half of 2022. - Net loss increased by 2,222.8% from
$0.3 million in the first half of 2021 to$6.0 million in the first half of 2022. - Loss per share increased by 2,100.0% from
$0.01 per share in the first half of 2021 to$0.22 per share in the first half of 2022.
Financial Results for the First half of 2022 and 2021
The following table summarizes the results of the Company's operations during the first half of 2022 and 2021, respectively.
For the Six Months Ended |
Changes |
|||||||||||||||
2022 |
2021 |
Amount |
% |
|||||||||||||
Revenues |
$ |
428,150 |
$ |
2,415,352 |
$ |
(1,987,202) |
-82.3 |
% |
||||||||
Cost of revenues |
(1,490,668) |
(971,018) |
(519,650) |
53.5 |
% |
|||||||||||
Gross (loss) profit |
(1,062,518) |
1,444,334 |
(2,506,852) |
-173.6 |
% |
|||||||||||
Operating Expenses |
||||||||||||||||
Selling and marketing expenses |
(363,678) |
(541,953) |
178,275 |
-32.9 |
% |
|||||||||||
General and administrative expenses |
(1,596,269) |
(1,654,997) |
58,728 |
-3.5 |
% |
|||||||||||
Provision for doubtful accounts |
(3,514,342 |
(1,490,204) |
(2,024,138) |
135.8 |
% |
|||||||||||
Total Operating Expenses |
(5,474,289) |
(3,687,154) |
(1,787,135) |
48.5 |
% |
|||||||||||
Loss from Operations |
(6,536,807) |
(2,242,820) |
(4,293,987) |
191.5 |
% |
|||||||||||
Interest income (expense), net |
42,948 |
(64,203) |
107,151 |
-166.9 |
% |
|||||||||||
Changes in fair value of warrant liabilities |
- |
1,902,153 |
(1,902,153) |
-100.0 |
% |
|||||||||||
Subsidy income |
38,790 |
249,102 |
(210,312) |
-84.4 |
% |
|||||||||||
Other income (expenses), net |
146,964 |
(115,903) |
262,867 |
-226.8 |
% |
|||||||||||
Loss Before Income Taxes |
(6,308,105) |
(271,671) |
(6,036,434) |
2,222.0 |
% |
|||||||||||
Income tax expense |
(2,241) |
- |
(2,241) |
100 |
% |
|||||||||||
Net Loss |
$ |
(6,310,346) |
$ |
(271,671) |
$ |
(6,038,675) |
2,222.8 |
% |
Revenues
The Company recognizes all revenues on a net basis, which are comprised of (i) rebates and incentives offered by publishers for procuring advertisers to place ads with them, which are typically calculated with reference to the advertising expenses of the Company's advertisers and are closely correlated to the Company's gross billing from advertisers; and (ii) net fees from advertisers, which are essentially the fees the Company charges its advertisers (i.e. gross billing), net of the media costs the Company incurred on their behalf.
Revenue decreased by 82.3% to
For the Six Months Ended |
||||||||||||
2022 |
2021 |
% Change |
||||||||||
Rebates and incentives offered by publishers |
$ |
373,508 |
$ |
2,355,036 |
-84.1 |
% |
||||||
Net fees from advertisers |
54,642 |
60,316 |
-9.4 |
% |
||||||||
Revenues |
$ |
428,150 |
$ |
2,415,352 |
-82.3 |
% |
The rebates and incentives offered by publishers decreased by
The net fees from advertisers remained stable during the two periods.
The Company generates advertising agency revenues from Search Engine Marketing ("SEM") services and non-SEM services.
For the Six Months Ended |
||||||||||||
2022 |
2021 |
% Change |
||||||||||
Revenue from SEM services |
$ |
50,380 |
$ |
2,356,200 |
-97.9 |
% |
||||||
Revenue from Non-SEM services |
377,770 |
59,152 |
538.6 |
% |
||||||||
Revenues |
$ |
428,150 |
$ |
2,415,352 |
-82.3 |
% |
The revenues from SEM services consist of rebates and incentives offered by publishers. The revenues from SEM services decreased by
The revenues from non-SEM services consist of both rebates and incentives offered by publishers and the net fees from advertisers. The revenues from non-SEM services increased by
Cost of revenues
The cost of revenues was primarily comprised of payroll and welfare expenses incurred by staff responsible for advertiser services and media relations, and taxes and surcharges. Total cost of revenues increased by
Gross profit
The Company generated a gross loss of
Selling and marketing expenses
Selling and marketing expenses decreased by
General and administrative expenses
General and administrative expenses were
Provision for doubtful accounts
For the first half of 2022 and 2021, provision for doubtful accounts was primarily comprised of provision for doubtful accounts receivable of
Change in fair value of warrant liabilities
The change in fair value of warrant liability for the first half of 2021 represents a net remeasurement gain of
Income tax expense
Income tax expense was
For the first half of 2021, the Company did not incur income tax expenses, as the Company incurred taxable losses.
Net loss
Net loss was
Financial Condition
As of
Net cash used in operating activities was
Net cash used in operating activities was
Net cash provided by investing activities was
Net cash used in financing activities was
About
Forward-Looking Statements
Certain statements 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 annual reports and in its other filings with the
For more information, please contact:
Investor Relations Contact:
Ascent Investor Relations LLC
+1-917-609-0333
tina.xiao@ascent-ir.com
|
||||||||
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS |
||||||||
As of |
||||||||
(Expressed in |
||||||||
|
|
|||||||
(unaudited) |
||||||||
ASSETS |
||||||||
Current Assets |
||||||||
Cash and cash equivalents |
$ |
5,031,813 |
$ |
4,751,538 |
||||
Restricted cash |
75,587 |
4,131,313 |
||||||
Accounts receivable, net |
51,036,740 |
56,363,183 |
||||||
Prepayments |
4,709,812 |
9,376,247 |
||||||
Prepayments – related party |
3,156,398 |
2,361,779 |
||||||
Media deposits |
1,420,899 |
1,244,704 |
||||||
Media deposits – related party |
1,356,777 |
1,426,419 |
||||||
Due from related parties |
17,236 |
1,748,769 |
||||||
Other current assets |
4,322,945 |
4,797,022 |
||||||
Total Current Assets |
71,128,207 |
86,200,974 |
||||||
Long-term investment |
1,310,334 |
1,569,218 |
||||||
Property and equipment, net |
1,016,069 |
1,378,457 |
||||||
Intangible assets, net |
663,071 |
775,603 |
||||||
Prepayments for intangible assets |
2,816,234 |
2,960,789 |
||||||
Right of use assets |
898,531 |
1,195,092 |
||||||
Total Assets |
$ |
77,832,446 |
$ |
94,080,133 |
||||
LIABILITIES AND SHAREHOLDERS' EQUITY |
||||||||
Current Liabilities |
||||||||
Accounts payable |
$ |
10,413,990 |
$ |
12,161,957 |
||||
Advance from advertisers |
461,370 |
1,622,458 |
||||||
Advertiser deposits |
- |
916,531 |
||||||
Dividends payable |
- |
1,255,375 |
||||||
Income tax payable |
265,279 |
278,440 |
||||||
Due to related parties |
1,675 |
- |
||||||
Operating lease liabilities, current |
500,653 |
515,592 |
||||||
Warrant liabilities |
2,728 |
2,744 |
||||||
Accrued expenses and other liabilities |
1,673,128 |
2,728,300 |
||||||
Total Current Liabilities |
13,318,823 |
19,481,397 |
||||||
Operating lease liabilities, noncurrent |
279,913 |
537,447 |
||||||
Total Liabilities |
13,598,736 |
20,018,844 |
||||||
Commitments and Contingencies |
||||||||
Shareholders' Equity |
||||||||
Ordinary Share (par value |
14,630 |
14,630 |
||||||
Additional paid-in capital |
41,564,519 |
41,564,519 |
||||||
Statutory reserve |
898,133 |
898,133 |
||||||
Retained earnings |
22,686,118 |
28,996,464 |
||||||
Accumulated other comprehensive (loss) gain |
(929,690) |
2,587,543 |
||||||
Total Shareholders' Equity |
64,233,710 |
74,061,289 |
||||||
Total Liabilities and Shareholders' Equity |
$ |
77,832,446 |
$ |
94,080,133 |
|
||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND |
||||||||
For the Six Months Ended |
||||||||
(Expressed in |
||||||||
For the Six Months Ended |
||||||||
2022 |
2021 |
|||||||
Revenues |
$ |
428,150 |
$ |
2,415,352 |
||||
Cost of revenues |
(1,490,668) |
(971,018) |
||||||
Gross (loss) profit |
(1,062,518) |
1,444,334 |
||||||
Operating Expenses |
||||||||
Selling and marketing expenses |
(363,678) |
(541,953) |
||||||
General and administrative expenses |
(1,596,269) |
(1,654,997) |
||||||
Provision for doubtful accounts |
(3,514,342) |
(1,490,204) |
||||||
Total Operating Expenses |
(5,474,289) |
(3,687,154) |
||||||
Loss from Operations |
(6,536,807) |
(2,242,820) |
||||||
Interest income (expense), net |
42,948 |
(64,203) |
||||||
Changes in fair value of warrant liabilities |
- |
1,902,153 |
||||||
Subsidy income |
38,790 |
249,102 |
||||||
Other income (expenses), net |
146,964 |
(115,903) |
||||||
Loss Before Income Taxes |
(6,308,105) |
(271,671) |
||||||
Income tax expense |
(2,241) |
- |
||||||
Net Loss |
$ |
(6,310,346) |
$ |
(271,671) |
||||
Other Comprehensive (Loss) Income |
||||||||
Foreign currency translation adjustment |
(3,517,233) |
699,837 |
||||||
Comprehensive (Loss) Income |
$ |
(9,827,579) |
$ |
428,166 |
||||
Weighted average number of ordinary share outstanding |
||||||||
Basic and Diluted |
29,260,784 |
26,759,235 |
||||||
Loss per share |
||||||||
Basic and Diluted |
$ |
(0.22) |
$ |
(0.01) |
|
||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||||||
For the Six Months Ended |
||||||||
(Expressed in |
||||||||
For the Six Months Ended |
||||||||
2022 |
2021 |
|||||||
|
$ |
(3,980,540) |
$ |
(27,756,592) |
||||
Cash Flows from Investing Activities: |
||||||||
Purchases of property and equipment |
- |
(422,253) |
||||||
Purchases of intangible assets |
- |
(834,788) |
||||||
Prepayments for intangible assets |
- |
(2,916,127) |
||||||
Investment in an investee |
- |
(1,545,547) |
||||||
Collection of loans from related parties |
1,730,005 |
- |
||||||
Loans made to related parties |
(171) |
- |
||||||
Net Cash Provided by (Used in) Investing Activities |
1,702,834 |
(5,718,715) |
||||||
Cash Flows from Financing Activities: |
||||||||
Issuance of ordinary shares pursuant to initial public offering, net of issuance |
- |
25,989,264 |
||||||
Issuance of ordinary shares pursuant to over-allotment, net of issuance costs |
- |
4,185,000 |
||||||
Issuance of units pursuant to a private placement, net of issuance costs |
- |
9,858,000 |
||||||
Repayment of bank borrowings |
(35,727) |
(1,545,547) |
||||||
Repayment of borrowings to related parties |
(15,446) |
- |
||||||
Payment of dividends |
(1,234,739) |
- |
||||||
|
(1,285,912) |
38,486,717 |
||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash |
(211,834) |
728,299 |
||||||
Net (decrease) increase in cash, cash equivalents and restricted cash |
(3,775,452) |
5,739,709 |
||||||
Cash, cash equivalents and restricted cash at beginning of period |
8,882,852 |
10,272,256 |
||||||
Cash, cash equivalents and restricted cash at end of period |
$ |
5,107,400 |
$ |
16,011,965 |
||||
Supplemental Cash Flow Information |
||||||||
Cash paid for interest expense |
$ |
- |
$ |
98,514 |
||||
Cash paid for income tax |
$ |
- |
$ |
- |
||||
Non-cash operating, investing and financing activities |
||||||||
Right of use assets obtained in exchange for operating lease obligations |
$ |
- |
$ |
1,553,829 |
View original content:https://www.prnewswire.com/news-releases/baosheng-media-group-holdings-limited-reports-financial-results-for-the-first-half-of-2022-301649409.html
SOURCE