Sentage Holdings Inc. Announces Financial Results for the First Six Months of Fiscal Year 2024
SHANGHAI, Dec. 17, 2024 /PRNewswire/ -- 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 2024 ended June 30, 2024. The following summarizes such financial results.
Financial Highlights for the First Six Months of Fiscal Year 2024
- Total operating revenue was $nil in the six months ended June 30, 2024, compared with $82 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 declined while the Company attempting to enter into new businesses. the company has been adjusting and improving its products and services to enhance its competitiveness. These improvements require more time to be completed.
- Net loss was $1.12 million in the six months ended June 30, 2024, compared with net loss of $1.08 million for the same period of last year.
- Basic and diluted loss per share was $0.47 in the six months ended June 30, 2024, compared with basic and diluted loss per share of $0.46 for the same period of last year.
Financial Results for the First Six Months of Fiscal Year 2024
Operating Expenses
Selling, general and administrative expenses increased by $43,366, or 4%, to $1,123,711 in the six months ended June 30, 2024, from $1,080,345 for the same period of last year. The increase was due to the following reasons:
- Professionals consulting expenses increased by $122,525 or 30% to $ 534,675 in the six months ended June 30, 2024, from $412,151 for the same period of last year. The increase was primarily due to the company paying more for consulting services to third party professionals.
Provision for Income Taxes
Provision for income taxes was nil for the six months ended 30 June 2024, compared with nil for the same period last year.
Net Loss
Net loss was $1.12 million in the six months ended June 30, 2024, compared with net loss of $1.08 million for the same period of last year.
Loss Per Share
Basic and diluted loss per share was $0.47 in the six months ended June 30, 2024, compared with basic and diluted loss per share of $0.46 for the same period of last year.
Cash and Cash Equivalents
As of June 30, 2024, the Company had cash and restricted cash of $1.61million, compared with $2.26 million as of December 31, 2023.
Cash Flow
Net cash used in operating activities was $1.09 million, compared with Net cash used in operating activities of $1.01 million for the same period of last year.
Net cash used in investing activities was $nil, compared with Net cash used in investing activities of $537, for the same period of last year.
Net cash provided by/ (used in) financing activity was $0.43 million, compared with Net cash used in financing activity of $(4,709) for the same period of last year.
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: [email protected]
Ascent Investor Relations LLC
Tina Xiao President
Tel: +1-646-932-7242
Email: [email protected]
SENTAGE HOLDINGS INC. AND SUBSIDIARIES | ||||||||
CONSOLIDATED BALANCE SHEETS | ||||||||
As of | As of | |||||||
USD | USD | |||||||
ASSETS | ||||||||
Current assets | ||||||||
Cash and cash equivalents | $ | 2,262,881 | $ | 1,615,725 | ||||
Restricted cash | 26,127 | 21,101 | ||||||
Accounts receivable, net | 284,628 | 132,049 | ||||||
Prepaid expenses and other current assets | 9,118,909 | 6,720,283 | ||||||
Total current assets | 11,692,545 | 8,489,158 | ||||||
Non-current assets | ||||||||
Right-of-use assets, net | 72,939 | 29,133 | ||||||
Plant and equipment, net | 64,472 | 57,395 | ||||||
Intangible assets, net | 66,859 | 58,702 | ||||||
Long-term investments | 1,000,000 | 3,500,000 | ||||||
Deferred tax assets | 12,324 | 12,040 | ||||||
Total non-current assets | 1,216,594 | 3,657,270 | ||||||
Total assets | $ | 12,909,139 | $ | 12,146,428 | ||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
Current liabilities | ||||||||
Accounts payable | $ | 5,985 | $ | 5,847 | ||||
Lease liabilities | 72,230 | 23,802 | ||||||
Accrued expenses and other current liabilities | 256,795 | 237,490 | ||||||
Total current liabilities | 335,010 | 267,139 | ||||||
Non-current liability | ||||||||
Due to a related party, non-current | 344,235 | 782,364 | ||||||
Total non-current liability | 344,235 | 782,364 | ||||||
Total liabilities | 679,245 | 1,049,503 | ||||||
Shareholders' equity | ||||||||
Class A Ordinary shares, $0.005 par value, 180,000,000 shares authorized, | 14,027 | 14,027 | ||||||
Class B Ordinary shares, $0.005 par value, 20,000,000 shares authorized, no shares | - | - | ||||||
Additional paid in capital | 55,327,858 | 55,327,858 | ||||||
Statutory reserves | 166,038 | 166,038 | ||||||
Accumulated deficit | (43,363,848) | (44,489,252) | ||||||
Accumulated other comprehensive income | 85,819 | 78,254 | ||||||
Total shareholders' equity | 12,229,894 | 11,096,925 | ||||||
Total liabilities and shareholders' equity | $ | 12,909,139 | $ | 12,146,428 | ||||
* | Retrospectively restated for one-for-five reverse split with effective date of August 10, 2022. |
SENTAGE HOLDINGS INC. AND SUBSIDIARIES | ||||||||
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS | ||||||||
For the six months | ||||||||
2023 | 2024 | |||||||
OPERATING REVENUE | ||||||||
Prepaid payment network service fee | 82 | - | ||||||
Total operating revenue | 82 | - | ||||||
OPERATING EXPENSE | ||||||||
Selling, general and administrative expenses | 1,080,345 | 1,123,711 | ||||||
Total operating expenses | 1,080,345 | 1,123,711 | ||||||
LOSS FROM OPERATIONS | (1,080,263) | (1,123,711) | ||||||
OTHER EXPENSES | (1,623) | (1,693) | ||||||
LOSS BEFORE INCOME TAX PROVISION | (1,081,886) | (1,125,404) | ||||||
PROVISION FOR INCOME TAXES | - | - | ||||||
NET LOSS | (1,081,886) | (1,125,404) | ||||||
OTHER COMPREHENSIVE LOSS | ||||||||
Foreign currency translation adjustment | (57,057) | (7,565) | ||||||
COMPREHENSIVE LOSS | $ | (1,138,943) | $ | (1,132,969) | ||||
Loss per common share- basic and diluted | $ | (0.46) | $ | (0.47) | ||||
Weighted average shares- basic and diluted | 2,376,764 | 2,376,764 | ||||||
SENTAGE HOLDINGS INC. AND SUBSIDIARIES | ||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
For the six months | ||||||||
2023 | 2024 | |||||||
Cash flows from operating activities | ||||||||
Net loss | $ | (1,081,886) | $ | (1,125,404) | ||||
Adjustments to reconcile net income to cash and restricted cash | ||||||||
Depreciation and amortization | 49,087 | 52,151 | ||||||
Allowance for Credit Losses | (2,902) | 45,231 | ||||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable | 37,863 | 107,348 | ||||||
Prepaid expenses and other current assets | 124,441 | (101,374) | ||||||
Lease liabilities | (44,191) | (44,473) | ||||||
Accrued expenses and other current liabilities | (97,547) | (19,443) | ||||||
Net cash used in operating activities | (1,015,135) | (1,085,964) | ||||||
Cash flows from investing activity | ||||||||
Additions to property, plant and equipment | (537) | - | ||||||
Net cash used in investing activity | (537) | - | ||||||
Cash flows from financing activity | ||||||||
Proceeds from (Repayment to) related party loans | (4,709) | 438,129 | ||||||
Net cash (used in)/provided by financing activity | (4,709) | 438,129 | ||||||
Reconciliation of cash and restricted cash, beginning of period | ||||||||
Cash | 3,805,135 | 2,262,881 | ||||||
Restricted cash | 23,089 | 26,127 | ||||||
Cash and restricted cash, beginning of period | $ | 3,828,224 | $ | 2,289,008 | ||||
Reconciliation of cash and restricted cash, end of period | ||||||||
Cash | 2,724,245 | 1,615,725 | ||||||
Restricted cash | 19,850 | 21,101 | ||||||
Cash and restricted cash, end of period | $ | 2,744,095 | $ | 1,636,826 | ||||
Effect of exchange rate changes on cash and restricted cash | (63,749) | (4,347) | ||||||
Net decrease in cash and restricted cash | (1,084,130) | (652,182) | ||||||
Cash and restricted cash, beginning of period | 3,828,224 | 2,289,008 | ||||||
Cash and restricted cash, end of period | $ | 2,744,095 | $ | 1,636,826 | ||||
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SOURCE Sentage Holdings Inc.