UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of December 2023
Commission file number: 001-40580
Sentage Holdings Inc.
501, Platinum Tower, 233 Taicang Rd., Huangpu,
Shanghai City, the PRC
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F ☒ Form 40-F ☐
SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
| Sentage Holdings Inc. | ||
| Date: December 22, 2023 | By: | /s/ Qiaoling Lu |
| Qiaoling Lu | ||
| Chief Executive Officer | ||
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EXHIBIT INDEX
| Number | Description of Exhibit | |
| 99.1 | Press Release |
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Exhibit 99.1
Sentage Holdings Inc. Announces Financial Results for the First Six Months of Fiscal Year 2023
Shanghai, China, December 22, 2023 (GLOBE NEWSWIRE) -- Sentage Holdings Inc. (the “Company”, “we”, “our”) (Nasdaq: SNTG), is a holding company incorporated in the Cayman Islands with no material operations of its own. Through its China-based operating entities, the Company offers consumer loan repayment and collection management, loan recommendation, and prepaid payment network services in China. The Company today announced its financial results for the first six months of fiscal year 2023 ended June 30, 2023. The following summarizes such financial results.
Financial Highlights for the First Six Months of Fiscal Year 2023
| ● | Total operating revenue was $82 in the six months ended June 30, 2023, compared with $0.18 million for the same period of last year, representing a 100% decrease. The reason for the decrease in revenue was that the Company’s existing business had been declining while the Company attempted to enter into new businesses. |
| ● | Net loss was $1.08 million in the six months ended June 30, 2023, compared with net loss of $0.96 million for the same period of last year. |
| ● | Basic and diluted loss per share was $0.46 in the six months ended June 30, 2023, compared with basic and diluted loss per share of $0.41 for the same period of last year. |
Financial Results for the First Six Months of Fiscal Year 2023
Operating Revenue
Total operating revenue decreased by $0.18 million, or 100%, to $82 in the six months ended June 30, 2023, from $0.18 million for the same period of last year. The reason for the decrease in revenue was that the company’s original business had been declining while the Company attempted to enter into new businesses.
Revenue from the prepaid payment network services business decreased by $0.18 million, or 100%, to $82 in the six months ended June 30, 2023, from $0.18 million for the same period of last year. Total number of merchant customers who used the Company’s prepaid payment network services was 1 in the six months ended June 30, 2023 and 8 in the same period in 2022. During the six months ended June 30, 2023 and 2022, the Company provided technology consulting and support services to these customers. The Company charged such merchant customers service fees for designing tailored payment solutions, interfacing their internal systems with the Company’s prepaid card payment system, and providing their staff with relevant operation training. These merchant customers have not yet issued prepaid cards to their end customers as of June 30, 2023 and 2022 and as of the date of this filing.
The Company did not generate any revenue from consumer loan repayment and collection management, or loan recommendation services, during the six months ended June 30, 2023 and 2022.
Operating Expenses
Selling, general and administrative expenses decreased by $52,717, or 5%, to $1,080,345 in the six months ended June 30, 2022, from $1,133,062 for the same period of last year. The decrease was due to the following reasons:
| ● | Professionals consulting expenses decreased by $ 167,000 or 42% to $ 226,500 in the six months ended June 30, 2023, from $393,500 for the same period of last year. The decrease was primarily due to the Company paid a smaller amount of consulting services to third party professionals. |
Provision for Income Taxes
Provision for income taxes was nil for the six months ended 30 June 2023, compared with nil for the same period last year.
Net Loss
Net loss was $1.08 million in the six months ended June 30, 2023, compared with net loss of $0.96 million for the same period of last year.
Loss Per Share
Basic and diluted loss per share was $0.46 in the six months ended June 30, 2023, compared with basic and diluted loss per share of $0.41 for the same period of last year.
Cash and Cash Equivalents
As of June 30, 2023, the Company had cash and restricted cash of $2.74million, compared with $3.83 million as of December 31, 2022.
Cash Flow
Net cash used in operating activities was $1.04 million, compared with Net cash used in operating activities of $1.70 million for the same period of last year.
Net cash used in investing activities was $537, compared with Net cash used in investing activities of $7,874 for the same period of last year.
Net cash used in financing activity was $4,709, compared with Net cash used in financing activity of $0.04 million for the same period of last year.
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About Sentage Holdings Inc.
Sentage Holdings Inc., headquartered in Shanghai, China, is a holding company incorporated in the Cayman Islands with no material operations of its own (the “Company”). Through its China-based operating entities, the Company offers consumer loan repayment and collection management, loan recommendation, and prepaid payment network services in China. Leveraging the Company’s deep understanding of its client base, strategic partner relationships, and proprietary valuation models and technologies, the Company is committed to working with its clients to understand their financial needs and challenges and offering customized services to help them meet their respective objectives. For more information, please visit the company’s website at ir.sentageholdings.com.
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:
Sentage Holdings Inc.
Investor Relations Department
Email: ir@sentageholdings.com
Ascent Investor Relations LLC
Tina Xiao President
Tel: +1 917-609-0333
Email: tina.xiao@ascent-ir.com
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SENTAGE HOLDINGS INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
| As of , | ||||||||
| June 30 | December 31 | |||||||
| 2023 | 2022 | |||||||
| USD | USD | |||||||
| ASSETS | ||||||||
| Current assets | ||||||||
| Cash | $ | 2,724,245 | $ | 3,805,135 | ||||
| Restricted cash | 19,850 | 23,089 | ||||||
| Loan receivable | 5,500,000 | 5,500,000 | ||||||
| Accounts receivable, net | 398,549 | 433,510 | ||||||
| Prepaid expenses and other assets | 4,455,206 | 4,579,646 | ||||||
| Total current assets | 13,097,850 | 14,341,380 | ||||||
| Non-current assets | ||||||||
| Right-of-use assets, net | 112,252 | 162,270 | ||||||
| Property and equipment, net | 66,618 | 53,023 | ||||||
| Intangible assets, net | 76,014 | 89,475 | ||||||
| Deferred tax assets | 12,067 | 12,686 | ||||||
| Total non-current assets | 266,951 | 317,454 | ||||||
| Total assets | $ | 13,364,801 | $ | 14,658,834 | ||||
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SENTAGE HOLDINGS INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS (Continued)
| As of , | ||||||||
| June 30 | December 31 | |||||||
| 2023 | 2022 | |||||||
| USD | USD | |||||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Current liabilities | ||||||||
| Accounts payable | $ | 8,225 | $ | 8,647 | ||||
| Operating lease liabilities | 84,820 | 87,129 | ||||||
| Accrued expenses and other liabilities | 211,876 | 309,001 | ||||||
| Total current liabilities | 304,921 | 404,777 | ||||||
| Non-current liabilities | ||||||||
| Operating lease liabilities | 23,858 | 74,384 | ||||||
| Due to a related party | 4,709 | |||||||
| Total non-current liabilities | 23,858 | 79,093 | ||||||
| Total liabilities | 328,779 | 483,870 | ||||||
| Shareholders’ equity | ||||||||
| Ordinary shares, $0.005 par value, 10,000,000 shares authorized, 2,805,325 shared issued and outstanding | 14,027 | 14,027 | ||||||
| Additional paid in capital | 55,327,858 | 55,327,858 | ||||||
| Statutory reserves | 166,038 | 166,038 | ||||||
| Accumulated deficit | (42,542,457 | ) | (41,460,571 | ) | ||||
| Accumulated other comprehensive income | 70,556 | 127,612 | ||||||
| Total shareholders’ equity | 13,036,022 | 14,174,964 | ||||||
| Total liabilities and shareholders’ equity | $ | 13,364,801 | $ | 14,658,834 | ||||
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SENTAGE HOLDINGS INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
| For the six months ended June 30, | ||||||||
| 2023 | 2022 | |||||||
| OPERATING REVENUE | ||||||||
| Prepaid payment network service fee | 82 | 177,489 | ||||||
| Total operating revenue | 82 | 177,489 | ||||||
| OPERATING EXPENSE | ||||||||
| Selling, general and administrative expenses | 1,080,345 | 1,133,062 | ||||||
| Total operating expenses | 1,080,345 | 1,133,062 | ||||||
| LOSS FROM OPERATIONS | (1,080,263 | ) | (955,573 | ) | ||||
| OTHER EXPENSES | (1,623 | ) | (7,248 | ) | ||||
| LOSS BEFORE INCOME TAX PROVISION | (1,081,886 | ) | (962,821 | ) | ||||
| PROVISION FOR INCOME TAXES | - | - | ||||||
| NET LOSS | (1,081,886 | ) | (962,821 | ) | ||||
| OTHER COMPREHENSIVE LOSS | ||||||||
| Foreign currency translation adjustment | (57,057 | ) | (45,407 | ) | ||||
| COMPREHENSIVE LOSS | $ | (1,138,943 | ) | $ | (1,008,228 | ) | ||
| Loss per common share- basic and diluted | $ | (0.46 | ) | $ | (0.41 | ) | ||
| Weighted average shares- basic and diluted | 2,376,764 | 2,374,795 | ||||||
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SENTAGE HOLDINGS INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
| For the six months ended June 30, | ||||||||
| 2023 | 2022 | |||||||
| Cash flows from operating activities | ||||||||
| Net loss | $ | (1,081,886 | ) | $ | (962,821 | ) | ||
| Adjustments to reconcile net income to cash and restricted cash provided by (used in) operating activities: | ||||||||
| Depreciation and amortization | 19,429 | 21,747 | ||||||
| Deferred income tax expense | - | 686 | ||||||
| Impairment loss recognized in respect of receivables | (2,902 | ) | 52,150 | |||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable | 37,863 | (203,307 | ) | |||||
| Prepaid expenses and other assets | 124,441 | (623,320 | ) | |||||
| Interest accrued for lease liabilities | (44,191 | ) | - | |||||
| Accrued expenses and other liabilities | (97,547 | ) | 12,134 | |||||
| Net cash used in operating activities | (1,044,793 | ) | (1,702,731 | ) | ||||
| Cash flows from investing activity | ||||||||
| Additions to property, plant and equipment | (537 | ) | (7,874 | ) | ||||
| Net cash used in investing activity | (537 | ) | (7,874 | ) | ||||
| Cash flows from financing activity | ||||||||
| Repayment of related party loans | (4,709 | ) | (43,992 | ) | ||||
| Net cash used in financing activity | (4,709 | ) | (43,992 | ) | ||||
| Reconciliation of cash and restricted cash, beginning of period | ||||||||
| Cash | 3,805,135 | 10,753,118 | ||||||
| Restricted cash | 23,089 | 30,269 | ||||||
| Cash and restricted cash, beginning of period | $ | 3,828,224 | $ | 10,783,387 | ||||
| Reconciliation of cash and restricted cash, end of period | ||||||||
| Cash | 2,724,245 | 8,953,505 | ||||||
| Restricted cash | 19,850 | 23,431 | ||||||
| Cash and restricted cash, end of period | $ | 2,744,095 | $ | 8,976,936 | ||||
| Effect of exchange rate changes on cash and restricted cash | (34,091 | ) | (51,854 | ) | ||||
| Net decrease in cash and restricted cash | (1,084,130 | ) | (1,806,451 | ) | ||||
| Cash and restricted cash, beginning of period | 3,828,224 | 10,783,387 | ||||||
| Cash and restricted cash, end of period | $ | 2,744,095 | $ | 8,976,936 | ||||
| Supplemental non-cash financing activity | ||||||||
| Lease liabilities arising from obtaining right-of-use assets | 3,138 | - | ||||||
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