Sentage Holdings Inc. Announces Financial Results for the First Six Months of Fiscal Year 2022
Financial Highlights for the First Six Months of Fiscal Year 2022
- Total operating revenue was
$0.18 million in the six months endedJune 30, 2022 , compared with$1.32 million for the same period of last year, representing a 87.0% decrease, primarily due to the fact that in the first half of 2022: (1) the outstanding servicing agreements under the consumer loan repayment and collection management business were fully completed in fiscal 2021 and did not generate any revenue, and (2) the loan recommendation business did not generate any revenue because Chinese financial institutions limited loan approvals to loan applicants as a result of the Chinese government's recent measures to rein in the overheated property market. - Net loss was
$0.96 million in the six months endedJune 30, 2022 , compared with net income of$0.45 million for the same period of last year. - Basic and diluted loss per share was
$0.41 in the six months endedJune 30, 2022 , compared with basic and diluted earnings per share of$0.22 for the same period of last year.
COVID-19 Impact
Our business operations have been negatively affected by the ongoing COVID-19 pandemic for fiscal year 2021 and for the six months ended
Financial Results for the First Six Months of Fiscal Year 2022
Operating Revenue
Total operating revenue decreased by
Loan Repayment and Collection Management Business
Revenue from the consumer loan repayment and collection management business decreased to nil for the six months ended
Loan Recommendation Business
Revenue from the loan recommendation services business decreased to nil for the six months ended
Prepaid Payment Network Service Business
Revenue from the prepaid payment network services business decreased by
Operating Expenses
Selling, general and administrative expenses increased by
- Consulting and professional expenses increased by
$ 389,006 , or 116% to$ 723,556 in the six months endedJune 30, 2022 , from$334,550 for the same period of last year. The increase was primarily due to the Company paid a higher amount of consulting services to third party professionals for business strategy and planning purposes. In addition, the company paid audit and legal services fees to the third-party providers for the preparation of the annual report filed with theU.S. Securities and Exchange Commission as a publicly listed company.
Provision for Income Taxes
Provision for income taxes decreased to nil for the six months ended
Net Income/(Loss)
Net loss was
Earnings(loss) Per Share
Basic and diluted loss per share was
Cash and Cash Equivalents
As of
Cash Flow
Net cash used in operating activities was
Net cash used in investing activities was
Net cash used in financing activities was
About
Forward-Looking Statement
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 risk factors that may affect its future results in the Company's registration statement.
For more information, please contact:
Investor Relations Department
Email: ir@sentageholdings.com
Ascent Investor Relations LLC
Tel: +1 917-609-0333
Email: tina.xiao@ascent-ir.com
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CONSOLIDATED BALANCE SHEETS |
||||||||
As of |
||||||||
|
|
|||||||
2022 |
2021 |
|||||||
USD |
USD |
|||||||
ASSETS |
||||||||
Current assets |
||||||||
Cash |
$ |
8,953,505 |
$ |
10,753,118 |
||||
Restricted cash |
23,431 |
30,269 |
||||||
Loan receivable |
5,500,000 |
5,500,000 |
||||||
Accounts receivable, net |
554,865 |
403,708 |
||||||
Prepaid expenses and other current assets |
1,138,382 |
515,062 |
||||||
Total current assets |
16,170,183 |
17,202,157 |
||||||
Non-current assets |
||||||||
Property and equipment, net |
119,311 |
120,280 |
||||||
Intangible assets, net |
17,643 |
30,547 |
||||||
Deferred tax assets |
13,038 |
13,724 |
||||||
Total non-current assets |
149,992 |
164,551 |
||||||
Total assets |
$ |
16,320,175 |
$ |
17,366,708 |
SENTAGE HOLDINGS INC. AND SUBSIDIARIES |
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CONSOLIDATED BALANCE SHEETS (Continued) |
||||||||
As of |
||||||||
|
|
|||||||
2022 |
2021 |
|||||||
USD |
USD |
|||||||
LIABILITIES AND STOCKHOLDERS' EQUITY |
||||||||
Current liabilities |
||||||||
Accounts payable |
$ |
6,957 |
$ |
2,743 |
||||
Accrued expenses and other current liabilities |
387,911 |
379,991 |
||||||
Total current liabilities |
394,868 |
382,734 |
||||||
Non-current liability |
||||||||
Due to a related party, non-current |
117,028 |
161,020 |
||||||
Total non-current liability |
117,028 |
161,020 |
||||||
Total liabilities |
511,896 |
543,754 |
||||||
Shareholders' equity |
||||||||
Ordinary shares, |
2,800 |
2,800 |
||||||
Additional paid in capital |
55,339,085 |
55,339,085 |
||||||
Statutory reserves |
159,591 |
166,038 |
||||||
Accumulated deficit |
(39,861,485) |
(38,898,664) |
||||||
Accumulated other comprehensive income |
168,288 |
213,695 |
||||||
Total shareholders' equity |
15,808,279 |
16,822,954 |
||||||
Total liabilities and shareholders' equity |
$ |
16,320,175 |
$ |
17,366,708 |
SENTAGE HOLDINGS INC. AND SUBSIDIARIES |
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CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS |
||||||||
For the six months ended |
||||||||
2022 |
2021 |
|||||||
OPERATING REVENUE |
||||||||
Consumer loan repayment and collection management service fees |
$ |
- |
$ |
117,287 |
||||
Loan recommendation service fees |
- |
872,201 |
||||||
Prepaid payment network service fee |
177,489 |
328,195 |
||||||
Total operating revenue |
177,489 |
1,317,683 |
||||||
OPERATING EXPENSE |
||||||||
Selling, general and administrative expenses |
1,133,062 |
720,244 |
||||||
Total operating expenses |
1,133,062 |
720,244 |
||||||
(LOSS)INCOME FROM OPERATIONS |
(955,573) |
597,439 |
||||||
OTHER EXPENSES |
(7,248) |
(304) |
||||||
(LOSS)INCOME BEFORE INCOME TAX PROVISION |
(962,821) |
597,135 |
||||||
PROVISION FOR INCOME TAXES |
- |
151,954 |
||||||
NET (LOSS)INCOME |
(962,821) |
445,181 |
||||||
OTHER COMPREHENSIVE (LOSS)/INCOME |
||||||||
Foreign currency translation adjustment |
(45,407) |
(38,586) |
||||||
COMPREHENSIVE (LOSS)/INCOME |
$ |
(1,008,228) |
$ |
406,595 |
||||
(Loss/)earnings per common share- basic and diluted |
$ |
(0.41) |
$ |
0.22 |
||||
Weighted average shares- basic and diluted |
2,374,795 |
2,000,000 |
|
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CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||||||
For the six months ended |
||||||||
2022 |
2021 |
|||||||
Cash flows from operating activities |
||||||||
Net (loss) income |
$ |
(962,821) |
$ |
445,181 |
||||
Adjustments to reconcile net income to cash and restricted cash provided by (used in) |
||||||||
Depreciation and amortization |
21,747 |
25,316 |
||||||
Deferred income tax expense |
686 |
51,956 |
||||||
Impairment loss recognised in respect of receivables |
52,150 |
- |
||||||
Changes in operating assets and liabilities: |
||||||||
Accounts receivable |
(203,307) |
(42,536) |
||||||
Prepaid expenses and other current assets |
(623,320) |
265,424 |
||||||
Accounts payable |
- |
(2,256) |
||||||
Deferred revenue |
- |
(117,287) |
||||||
Accrued expenses and other current liabilities |
12,134 |
248,446 |
||||||
Net cash (used in)/provided by used in operating activities |
(1,702,731) |
874,244 |
||||||
Cash flows from investing activities |
||||||||
Cash acquired from newly established VIE entity- Zhenyi |
- |
644 |
||||||
Additions to Property and equipment, net |
(7,874) |
- |
||||||
Net cash (used in)/provided by investing activities |
(7,874) |
644 |
||||||
Cash flows from financing activities |
||||||||
Deferred initial public offering costs |
- |
(220,422) |
||||||
Repayment to related party loans |
(43,992) |
(693,268) |
||||||
Net cash used in financing activities |
(43,992) |
(913,690) |
||||||
Reconciliation of cash and restricted cash, beginning of period |
||||||||
Cash |
117,434 |
117,434 |
||||||
Restricted cash |
22,948 |
22,948 |
||||||
Cash and restricted cash, beginning of period |
$ |
140,382 |
$ |
140,382 |
||||
Reconciliation of cash and restricted cash, end of period |
||||||||
Cash |
8,953,505 |
77,710 |
||||||
Restricted cash |
23,431 |
25,424 |
||||||
Cash and restricted cash, end of period |
$ |
8,976,936 |
$ |
103,134 |
||||
Effect of exchange rate changes on cash and restricted cash |
(51,854) |
1,554 |
||||||
Net decrease in cash and restricted cash |
(1,806,451) |
(37,248) |
||||||
Cash and restricted cash, beginning of period |
10,783,387 |
140,382 |
||||||
Cash and restricted cash, end of period |
$ |
8,976,936 |
$ |
103,134 |
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