Cheetah Net Supply Chain Service Inc. Announces Full Year 2024 Results and Provides Corporate Update

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IRVINE, Calif., March 12, 2025 (GLOBE NEWSWIRE) -- Cheetah Net Supply Chain Service Inc. ("Cheetah” or the "Company”) (Nasdaq CM: CTNT), a logistics and warehousing services provider, today reported results for the year ended December 31, 2024 and provided a corporate update.

Recent Highlights*

*All share numbers are retrospectively adjusted for the Reverse Stock Split.

Tony Liu, Cheetah's Chairman and CEO commented, "It was a very tough year for Cheetah in 2024. The unexpected deteriorating market conditions in China resulted in weaker customer demands and a significant drop in sales for our parallel-import vehicle business, as luxury vehicle manufacturers discounted the prices of their vehicles below MSRP. As a result, our ability to profit from the sale of parallel-vehicle exports has been significantly challenged and we had to wind-down this segment after trying hard to collect aged accounts receivable.

"At the same time, we moved quickly to expand beyond the parallel-import vehicle business with the goal of becoming an integrated logistics and warehousing provider of international trade services for small- and medium-sized businesses. We will continue to focus on improving operational efficiencies, streamline operations, expand service offering, and enhance market position. Management will continue to take initiatives to seek out new business opportunities. We expect longer than expected to generate ideal profits and have confidence that we are positioning the Company for substantial future growth in this business.”

2024 Financial Results

During the year ended December 31, 2024, the Company's financial performance reflected the consequences of its business strategic shift to logistics and warehousing business and discontinued operations of parallel-import business under the challenging market conditions.

Continuing operations- logistics and warehousing business

During the year ended December 31, 2024, the Company had total revenues of $455,805 for the continuing operations, following the acquisition of Edward in February 2024 and TWEW in December 2024, with cost of revenues of $277,293 and gross profit of $178,512 reported. The Company will continue to expand its market presence in 2025.

General & administration expenses for the continuing operations were $3.6 million for the year ended December 31, 2024, an increase of $1.4 million, or 66.3%, from $2.2 million for the year ended December 31, 2023, primarily due to (i) an increase of $0.5 million in personnel-related expenses, which was attributed to the hiring of additional staff to support the newly launched logistics and warehousing segment, and labor services segment, (ii) an increase of $0.3 million in rental and leases following the acquisition of Edward with the addition of a new office workspace in California, (iii) an increase of $0.1 million in recruiting expenses associated with the development of new business lines, aligning with the Company's strategic shift towards logistics and warehousing, (iv) an increase of $0.2 million in insurance expenses due to higher costs associated with directors and officers insurance, (v) an increase of $0.1 million in depreciation and amortization expenses, primarily due to the acquisition of new fixed assets and additional intangible assets, and (vi) an increase of $0.2 million in other miscellaneous general and administration expenses during the year ended December 31, 2024.

Share-based compensation expenses for the continuing operations were $0.3 million for the year ended December 31, 2024, as compared to nil in 2023.

Interest income for the continuing operations was $320,472 for the year ended December 31, 2024, compared to $9,938 for the year ended December 31, 2023, representing an increase of $310,534, or 3,124.7%. The significant increase was primarily driven by interest earned on short-term loan receivables and certificates of deposit, funded by the net proceeds from our initial offering and public offerings closed in May and July 2024.

Interest expense for the continuing operations was $35,951 for the year ended December 31, 2024, which decreased by $5,932, or 14.2%, from $41,883 in 2023, mainly due to decreased credit card interest.

The Company's income tax benefits for the continuing operations were $0.2 million for the year ended December 31, 2024, compared with income tax benefits of approximately $0.5 for the same period in 2023.

Net loss from the continuing operations for the years ended December 31, 2024 and 2023 was $3.2 million and $1.7 million, respectively.

Discontinued Operations- parallel-import vehicle business

The Company's sales from the discontinued operations declined by 95.7% from $38.3 million in 2023 to $1.6 million in 2024 due to the significant deteriorating market on parallel-import vehicles in China.

Cost of revenues from the discontinued operation declined by 95.0% from $34.1 million in 2023 to $1.7 million in 2024, which was aligned with the sales downturn from parallel-import vehicles.

In 2024, the Company reported a gross loss of $24,820 from the discontinued operations, compared to a gross profit of $4.2 million in 2023, reflecting a decrease of $4.3 million, or 100.6%. The decrease was primarily attributable to the cessation of the parallel-import vehicle business and the significant drop in revenue.

Total selling, general & administration expenses for the discontinued operation increased by approximately $1.2 million, or 175.8%, to $1.8 million in 2024, compared to $0.7 million in 2023. The increase was primarily driven by a credit loss of $1.6 million for the aged uncollectible accounts receivable, and $0.1 million of forfeited vehicle deposits and sales tax returns, reflecting the financial impact of the business exit.

Total interest expenses for the discontinued operations decreased significantly to $88,788 for the year ended December 31, 2024, compared to $1.2 million in 2023. This decrease was primarily due to the cessation of vehicle purchases and the associated financing activities. The absence of inventory financing and a substantial decrease in LC financing charges were the main causes of this decline.

Net loss for the discontinued operations was approximately $2.0 million in 2024, compared to net income of $1.8 in 2023, reflecting the financial impact of the discontinued parallel-import vehicle business, including associated costs and adjustments.

As a result of the above factors, the Company reported an overall net loss of $5.2 million for the year ended December 31, 2024, as compared to a net income of $0.1 million in 2023.

Liquidity and Cash Flow

As of December 31, 2024, the Company had current assets of $11.0 million, consisting of cash and cash equivalents of $1.7 million, $6.1 million in short-term loan receivable, $0.4 million of other receivables, $0.3 million in prepaid expenses and other current assets from continuing operations, as well as $2.5 million in current assets from discontinued operations, primarily accounts receivable, which has been fully collected as of the date of our 2024 annual report. As of December 31, 2024, the Company's current liabilities, all of which related to continuing operations, totaled approximately $0.9 million, consisting of $0.4 million of operating lease liabilities, $0.2 million of other payables, and $0.2 million of loan payable, including the current portion of long-term borrowings.

During the year ended December 31, 2024, the Company also reported cash flow of $0.2 million provided by operating activities, $6.1 million used in investing activities, and $7.1 million provided by financing activities. As of December 31, 2024, the Company had total stockholders' equity of $12.6 million, compared to $6.9 million as of December 31, 2023.

The Company's working capital cushion is supported by its financing activities and its ability to borrow under its existing credit facilities.

The Company is working to further improve its liquidity and capital sources primarily by generating cash from operations, debt financing, and, if needed, financial support from its principal stockholder. If necessary to fully implement its business plan and sustain continuing growth, the Company may seek additional equity financing from outside investors. Based on the current operating plan, management believes that the aforementioned measures collectively will provide sufficient liquidity to meet the Company's future liquidity and capital requirements for at least 12 months from the issuance date of its consolidated financial statements.

Forward-Looking Statements

This press release contains certain forward-looking statements, including statements that are predictive in nature. Forward-looking statements are based on the Company's current expectations and assumptions. The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking statements. These statements may be identified by the use of forward-looking expressions, including, but not limited to, "anticipate,” "believe,” "continue,” "estimate,” "expect,” "future,” "intend,” "may,” "outlook,” "plan,” "potential,” "predict,” "project,” "should,” "will,” "would,” and similar expressions that predict or indicate future events or trends or that are not statements of historical matters, but the absence of these words does not mean that a statement is not forward-looking. The Company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise. Important factors that could cause actual results to differ materially from those in the forward-looking statements are set forth in the Company's filings with the U.S. Securities and Exchange Commission, including its registration statement on Form S-1, as amended, under the caption "Risk Factors.”

For more information, please contact:

Cheetah Net Supply Chain Service Inc. 

Investor Relations

(949) 418 7804

[email protected]

 
 
CHEETAH NET SUPPLY CHAIN SERVICE INC.

CONSOLIDATED BALANCE SHEETS

 
 December 31,     December 31, 
 2024 2023**
ASSETS       
CURRENT ASSETS:       
Cash and cash equivalents$1,650,962  $432,998 
Accounts receivable, net 47,976   - 
Loan receivable 6,088,295   672,500 
Other receivables 370,696   27,517 
Prepaid expenses and other current assets 338,642   292,338 
Current assets of discontinued operations 2,540,501   8,395,184 
TOTAL CURRENT ASSETS  11,037,072    9,820,537 
OTHER NONCURRENT ASSETS:     
Property, plant, and equipment, net 398,395   - 
Operating lease right-of-use assets 1,836,521   190,823 
Deferred tax assets, net -   47,905 
Intangibles, net 1,063,072   - 
Goodwill 1,044,394   - 
Non-current assets of discontinued operations -   - 
TOTAL ASSETS$ 15,379,454  $ 10,059,265 
      
LIABILITIES AND STOCKHOLDERS' EQUITY     
CURRENT LIABILITIES:     
Accounts payable$18,992  $- 
Current portion of long-term debt 34,577   32,887 
Loans payable from premium finance 120,461   148,621 
Due to a related party -   13,423 
Operating lease liabilities, current 438,351   39,703 
Accrued liabilities and other current liabilities 217,980   201,856 
Current liabilities of discontinued operations 52,900   1,922,301 
TOTAL CURRENT LIABILITIES  883,261    2,358,791 
NONCURRENT LIABILITIES:     
Long-term debt, net of current portion 610,020   644,725 
Operating lease liabilities, net of current portion 1,268,501   151,121 
Non-current liabilities of discontinued operations -   - 
TOTAL LIABILITIES$ 2,761,782  $ 3,154,637 
      
COMMITMENTS AND CONTINGENCIES (Note 15)  -   - 
      
STOCKHOLDERS' EQUITY     
Common stock, $0.0001 par value, 1,000,000,000 shares authorized; 3,218,886 and 1,119,750 shares issued and outstanding, including*:     
Class A common stock, $0.0001 par value, 891,750,000 shares authorized, 2,672,011 and 604,125 shares issued and outstanding 267   60 
Class B common stock, $0.0001 par value, 108,250,000 shares authorized, 546,875 and 515,625 shares issued and outstanding 55   52 
Additional paid-in capital* 17,297,961   6,996,275 
Subscription receivable -   (600,000)
(Accumulated deficit) Retained earnings (4,680,611)  508,241 
TOTAL STOCKHOLDERS' EQUITY  12,617,672    6,904,628 
      
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY$ 15,379,454  $ 10,059,265 
 
* Retrospectively adjusted for the reverse split of the Company's common stock at a ratio of 1-for-16, which took effect on October 21, 2024 (the "Reverse Stock Split”).

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CHEETAH NET SUPPLY CHAIN SERVICE INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

 
 For the Years Ended December 31, 
 2024    2023**
REVENUE$ 455,805  $ - 
      
COST OF REVENUE 277,293   - 
      
GROSS PROFIT  178,512    - 
      
OPERATING EXPENSES     
General and administrative expenses 3,641,713   2,190,513 
Share-based compensation expenses 277,345   - 
TOTAL OPERATING EXPENSES 3,919,058   2,190,513 
      
(LOSS) FROM OPERATIONS (3,740,546)  (2,190,513)
      
OTHER INCOME (EXPENSES)     
Interest income 320,472   9,938 
Interest expenses (35,951)  (41,883)
Other income 8,009   21,655 
OTHER INCOME (EXPENSES), NET 292,530   (10,290)
      
(LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES  (3,448,016)   (2,200,803)
      
Income tax (benefits) (215,822)  (488,918)
      
(LOSS) FROM CONTINUING OPERATIONS  (3,232,194)   (1,711,885)
      
(LOSS) INCOME FROM DISCONTINUING OPERATIONS, NET OF TAX**  (1,956,658)   1,845,755 
      
NET (LOSS) INCOME$ (5,188,852) $ 133,870 
      
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