BEIJING, Sept. 27,
2023 /PRNewswire/ -- Datasea Inc., (NASDAQ: DTSS)
("Datasea" or the "Company"), a Nevada incorporated digital technology
corporation engaged in converging and innovative business segments
for intelligent acoustics and 5G messaging technology in
China, today announced financial
results for its full fiscal year ended June
30, 2023, and provided an update on its key strategic and
operational initiatives.
"Internationalization has always been a crucial strategy for us.
Datasea established a wholly-owned subsidiary, Datasea Acoustics
LLC, based in the State of Delaware,
USA, which is a critical milestone for our company. We will
introduce cutting-edge antiviral acoustic solutions to the U.S.
market and even the international market and also launch new
products such as ultrasonic Skin Repair Robot to meet the
ever-increasing demands of the global market. Additionally, we can
expand our product and service portfolio by engaging in
cross-border mergers or forming international joint ventures to
meet evolving market demands worldwide," said Zhixin Liu, CEO
of Datasea.
"Datasea achieved a number of new milestones in this fiscal
year, while our net sales decreased and the decline was partially
due to the negative impact of the coronavirus pandemic. The
COVID-19 pandemic has adversely disrupted the supply chain and
negatively impacted our production and marketing. The decline of
our net sales was also partially due to our strategic restructuring
of our business lines. However, we adopt the differentiation
strategy as well as strive for healthy and sustainable growth. We
believe this strategic restructuring reflects our forward-looking
vision and correct values."
"Despite these, I am pleased with our performance, including the
continuous improvement of technology and research and development
capabilities, a wide range of acoustic product portfolio, the
establishment of multiple marketing and sales channels and the
cooperation of domestic and international leading technology
laboratories. A more important measure of our success than
short-term revenue is the establishment of Acoustic Intelligence as
the core of our company's strategy. We will strive to make
achievements in three promising domains such as ultrasound,
Schumann resonance technology and directional sound,"
said Zhixin Liu, CEO of Datasea.
Full Year Financial Highlights
- Revenue was $7,045,311 for the
year ended June 30, 2023, compared to
$17,080,911 for the year ended
June 30, 2022, representing a
decrease of $10,035,600, or 59% . The
decrease in revenues was mainly due to the global COVID-19 pandemic
situation that reduced demand for 5G SMS business in China and therefore the decrease of the
revenue from 5G messaging.
- The balance of accounts receivable was $255,725 at June 30,
2023. The Company further segmented the market, planned
eight regional headquarters, strengthened the collection control,
and promoted the fund collection of contracted delivery projects,
which led to the acceleration of fund return and had a far-reaching
impact on the future.
- As of June 30, 2023 and
June 30, 2022, the company's prepaid
accounts were $609,175 and
$289,888 respectively, an increase of
$319,287 over the previous year, with
a growth rate of 110.14%. The company generated cash inflow through
the credit management of customers, thereby reducing the operating
pressure of the company and strengthening the utilization of
funds.
Full Year Business Highlights
Acoustic Intelligence
Datasea is the global initiator, promoter and practitioner of
the concept of acoustic intelligence and aims to introduce this
cutting-edge technology and its applications to China and the world. The Company demonstrated
the strong commitment to technological advancement and global
reach, and delivered cutting-edge intelligent acoustics solutions,
especially focusing on ultrasound, infrasound, directional sound
and Schumann resonance technology, to meet the evolving needs of
customers and communities worldwide.
- International expansion. The Company incorporated a
wholly-owned subsidiary, Datasea Acoustics LLC, based in the
State of Delaware, USA. Datasea
Acoustics LLC, established on July 31,
2023. Datasea Acoustics LLC will begin to provide leading
and high-quality ultrasonic air sterilizers, bathroom and cloakroom
sterilizers and odor removal products, as well as continuous new
products including ultrasonic Skin Repair Robots and Schumann
frequency sleep monitors to the global market, mainly the U.S.
market.
- Marketing and sales expansion. Datasea's acoustic
intelligent products are provided to businesses and retail
customers. Datasea developed partnerships on innovation and joint
research and development to explore new opportunities. On
December 2022, the Company unveiled
national Hailijia air sterilization product event with an online
event and offline product launches in various cities in
China, including Beijing, Shenzhen, Tianjin, Hangzhou and Harbin. During the product launches, Datasea
has entered into eight marketing and distribution agreements in
order to expand the business and reach to customers and sell
certain Hailijia air sterilizers and purifiers in China.
- Industry recognition. Datasea released China's inaugural white paper with co-authors,
to uncover detailed facts and compelling analyses of the acoustic
intelligence technology, commercial applications, and the industry
outlook. Datasea's acoustic intelligence technology has obtained
nine software copyrights from the Government of China, and seven
patents from the Government of China related to acoustic
intelligence are pending approval.
5G Messaging
- Client expansion. Datasea's 5G messaging solutions have
been adopted by leading companies across 11 industries, including
express, health care, retail, tourism and more.
- Marketing and sales expansion. Datasea is one of the
first movers in the 5G messaging industry and has built a
comprehensive 5G messaging product portfolio with high brand
recognition. The Company adopted an integrated sales strategy to
boost sales to better promote business development and meet with
the demand of customers.
About Datasea Inc.
Datasea Inc., was incorporated in Nevada on September
2014 and listed on the NASDAQ Capital Market on December 21, 2018 under the symbol DTSS. Datasea
is a leading provider of products, services, and solutions for
enterprise and retail customers in converging and innovative
industries, Intelligent Acoustics and 5G messaging business,
especially focusing on ultrasonic, infrasound and directional sound
technology. Datasea leverages cutting-edge technologies in the
realm of intelligent acoustics, especially harnessing the power of
ultrasonic sterilization to combat viruses and prevent human
infections. Alongside this, the company delves into innovations in
directional sound and medical ultrasonic cosmetology. With a
diverse product lineup, Datasea is devoted to enhancing the quality
of life using sound-based solutions. In a strategic move to mark
its presence in the global arena, Datasea established a
wholly-owned subsidiary, Datasea Acoustics LLC, in Delaware, USA, on July
31, 2023. This venture underlines Datasea's dedication to
"Intelligent Acoustics" and marks its ambition to offer avant-garde
antiviral acoustic solutions at ultrasonic disinfection and
sterilization, ultrasonic cosmetology, acoustic medical care, and
acoustic agriculture to the US and international market, reaching
an ever-growing consumer audience. Simultaneously, the
establishment of production, assembly, and sales channels, coupled
with the reinforcement of technological enhancements and
collaborations with international technology laboratories, augments
the prospects for the enduring progress of Datasea Acoustics LLC.
For additional information, please visit: www.dataseainc.com.
Datasea routinely posts important information on its website.
Twitter @Dataseainc, https://twitter.com/Dataseainc.
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of Section 21E of the Securities Exchange Act of 1934
and as defined in the U.S. Private Securities Litigation Reform Act
of 1995. These forward-looking statements can be identified by
terminology such as "will", "expects", "anticipates", "future",
"intends", "plans", "believes", "estimates", "target", "going
forward", "outlook," "objective" and similar terms. Such statements
are based upon management's current expectations and current market
and operating conditions, and relate to events that involve known
or unknown risks, uncertainties and other factors, all of which are
difficult to predict and which are beyond Datasea's control, which
may cause Datasea's actual results, performance or
achievements (including the RMB/USD value of its anticipated
benefit to Datasea as described herein) to differ materially and in
an adverse manner from anticipated results contained or implied in
the forward-looking statements. Further information regarding these
and other risks, uncertainties or factors is included in Datasea's
filings with the U.S. Securities and Exchange Commission, which are
available at www.sec.gov. Datasea does not undertake any obligation
to update any forward-looking statement as a result of new
information, future events or otherwise, except as required under
law.
Investor and Media Contact:
Datasea Inc. Investor relations
Email: investorrelations@shuhaixinxi.com
DATASEA INC.
|
CONSOLIDATED
STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
|
|
|
|
YEARS ENDED JUNE
30,
|
|
|
|
2023
|
|
|
2022
|
|
|
|
|
|
|
|
|
Revenues
|
|
$
|
7,045,311
|
|
|
$
|
17,080,911
|
|
Cost of goods
sold
|
|
|
6,704,380
|
|
|
|
16,125,238
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
|
340,931
|
|
|
|
955,673
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
Selling
|
|
|
690,731
|
|
|
|
1,358,203
|
|
General and
administrative
|
|
|
8,414,400
|
|
|
|
5,574,985
|
|
Research and
development
|
|
|
921,020
|
|
|
|
1,259,739
|
|
|
|
|
|
|
|
|
|
|
Total operating
expenses
|
|
|
10,026,151
|
|
|
|
8,192,927
|
|
|
|
|
|
|
|
|
|
|
Loss from
operations
|
|
|
(9,685,220)
|
|
|
|
(7,237,254)
|
|
|
|
|
|
|
|
|
|
|
Non-operating income
(expenses)
|
|
|
|
|
|
|
|
|
Other income
(expense)
|
|
|
(13,014)
|
|
|
|
75,075
|
|
Interest
income
|
|
|
219
|
|
|
|
50,497
|
|
|
|
|
|
|
|
|
|
|
Total non-operating
income (expenses), net
|
|
|
(12,795)
|
|
|
|
125,572
|
|
|
|
|
|
|
|
|
|
|
Loss before income
tax
|
|
|
(9,698,015)
|
|
|
|
(7,111,682)
|
|
|
|
|
|
|
|
|
|
|
Income tax
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
Loss before
noncontrolling interest
|
|
|
(9,698,015)
|
|
|
|
(7,111,682)
|
|
|
|
|
|
|
|
|
|
|
Less: (loss) income
attributable to noncontrolling interest
|
|
|
(218,323)
|
|
|
|
(589,974)
|
|
|
|
|
|
|
|
|
|
|
Net loss to the
Company
|
|
|
(9,479,692)
|
|
|
|
(6,521,708)
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive
item
|
|
|
|
|
|
|
|
|
Foreign currency
translation gain attributable to the Company
|
|
|
109,665
|
|
|
|
10,337
|
|
Foreign currency
translation gain (loss) attributable to noncontrolling
interest
|
|
|
29,734
|
|
|
|
(22,356)
|
|
|
|
|
|
|
|
|
|
|
Comprehensive loss
attributable to the Company
|
|
$
|
(9,370,027)
|
|
|
$
|
(6,511,371)
|
|
|
|
|
|
|
|
|
|
|
Comprehensive
loss attributable to noncontrolling interest
|
|
$
|
(188,589)
|
|
|
$
|
(612,330)
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted net
loss per share
|
|
$
|
(0.38)
|
|
|
$
|
(0.27)
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares
used for computing basic and diluted loss per share
|
|
|
24,951,868
|
|
|
|
23,956,393
|
|
DATASEA INC.
|
CONSOLIDATED BALANCE
SHEETS
|
|
|
|
JUNE 30,
2023
|
|
|
JUNE 30,
2022
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
CURRENT
ASSETS
|
|
|
|
|
|
|
Cash
|
|
$
|
19,728
|
|
|
$
|
164,217
|
|
Accounts
receivable
|
|
|
255,725
|
|
|
|
259,410
|
|
Inventory,
net
|
|
|
241,380
|
|
|
|
211,353
|
|
Value-added tax
prepayment
|
|
|
71,261
|
|
|
|
46,509
|
|
Prepaid expenses and
other current assets
|
|
|
701,423
|
|
|
|
575,312
|
|
Total current
assets
|
|
|
1,289,517
|
|
|
|
1,256,801
|
|
|
|
|
|
|
|
|
|
|
NONCURRENT
ASSETS
|
|
|
|
|
|
|
|
|
Security deposit for
rents
|
|
|
-
|
|
|
|
17,181
|
|
Long-term
investment
|
|
|
55,358
|
|
|
|
29,800
|
|
Property and equipment,
net
|
|
|
85,930
|
|
|
|
187,831
|
|
Intangible assets,
net
|
|
|
1,185,787
|
|
|
|
1,741,791
|
|
Right-of-use assets,
net
|
|
|
137,856
|
|
|
|
522,273
|
|
Total noncurrent
assets
|
|
|
1,464,931
|
|
|
|
2,498,876
|
|
|
|
|
|
|
|
|
|
|
TOTAL
ASSETS
|
|
$
|
2,754,448
|
|
|
$
|
3,755,677
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
CURRENT
LIABILITIES
|
|
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
1,005,059
|
|
|
$
|
197,573
|
|
Short term
loan
|
|
|
594,906
|
|
|
|
-
|
|
Unearned
revenue
|
|
|
609,175
|
|
|
|
289,888
|
|
Accrued expenses and
other payables
|
|
|
1,409,939
|
|
|
|
994,884
|
|
Due to related
parties
|
|
|
1,162,856
|
|
|
|
102,331
|
|
Loan payables -
current
|
|
|
-
|
|
|
|
81,950
|
|
Operating lease
liabilities
|
|
|
124,640
|
|
|
|
457,949
|
|
Total current
liabilities
|
|
|
4,906,575
|
|
|
|
2,124,575
|
|
|
|
|
|
|
|
|
|
|
NONCURRENT
LIABILITIES
|
|
|
|
|
|
|
|
|
Operating lease
liabilities
|
|
|
26,449
|
|
|
|
31,470
|
|
Loan payables -
non-current
|
|
|
1,401,521
|
|
|
|
-
|
|
Total noncurrent
liabilities
|
|
|
1,427,970
|
|
|
|
31,470
|
|
|
|
|
|
|
|
|
|
|
TOTAL
LIABILITIES
|
|
|
6,334,545
|
|
|
|
2,156,045
|
|
|
|
|
|
|
|
|
|
|
COMMITMENTS AND
CONTINGENCIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
STOCKHOLDERS'
EQUITY
|
|
|
|
|
|
|
|
|
Common stock, $0.001
par value, 375,000,000 shares authorized, 27,784,133
and 24,324,633 shares issued and outstanding as
of June 30, 2023 and 2022,
respectively
|
|
|
27,784
|
|
|
|
24,325
|
|
Additional paid-in
capital
|
|
|
24,122,973
|
|
|
|
20,729,559
|
|
Accumulated
comprehensive income
|
|
|
393,252
|
|
|
|
283,587
|
|
Accumulated
deficit
|
|
|
(28,063,258)
|
|
|
|
(18,583,566)
|
|
TOTAL COMPANY
STOCKHOLDERS' EQUITY (DEFICIT)
|
|
|
(3,519,249)
|
|
|
|
2,453,905
|
|
|
|
|
|
|
|
|
|
|
Noncontrolling
interest
|
|
|
(60,848)
|
|
|
|
(854,273)
|
|
|
|
|
|
|
|
|
|
|
TOTAL EQUITY
(DEFICIT)
|
|
|
(3,580,097)
|
|
|
|
1,599,632
|
|
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES
AND EQUITY (DEFICIT)
|
|
$
|
2,754,448
|
|
|
$
|
3,755,677
|
|
DATASEA INC.
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
|
|
|
YEARS ENDED JUNE
30
|
|
|
|
2023
|
|
|
2022
|
|
|
|
|
|
|
|
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
Loss including
noncontrolling interest
|
|
$
|
(9,698,015)
|
|
|
$
|
(7,111,682)
|
|
Adjustments to
reconcile loss including noncontrolling interest to net cash used
in
operating activities:
|
|
|
|
|
|
|
|
|
Loss on disposal of
fixed assets
|
|
|
2,443
|
|
|
|
916
|
|
Depreciation and
amortization
|
|
|
701,430
|
|
|
|
577,822
|
|
Bad debt expense
(reversal)
|
|
|
(50,421)
|
|
|
|
284,958
|
|
Operating lease
expense
|
|
|
620,696
|
|
|
|
863,691
|
|
Stock compensation
expense
|
|
|
4,378,887
|
|
|
|
642,000
|
|
Changes in assets and
liabilities:
|
|
|
|
|
|
|
|
|
Accounts
receivable
|
|
|
(15,387)
|
|
|
|
(267,771)
|
|
Inventory
|
|
|
(46,919)
|
|
|
|
(25,323)
|
|
Value-added tax
prepayment
|
|
|
(29,212)
|
|
|
|
123,313
|
|
Prepaid expenses and
other current assets
|
|
|
(141,545)
|
|
|
|
(224,285)
|
|
Accounts
payable
|
|
|
839,735
|
|
|
|
26,236
|
|
Unearned
revenue
|
|
|
353,849
|
|
|
|
111,689
|
|
Deferred
revenue
|
|
|
-
|
|
|
|
(46,461)
|
|
Accrued expenses and
other payables
|
|
|
523,534
|
|
|
|
741,328
|
|
Payment on operating
lease liabilities
|
|
|
(575,156)
|
|
|
|
(836,143)
|
|
|
|
|
|
|
|
|
|
|
Net cash used in
operating activities
|
|
|
(3,136,081)
|
|
|
|
(5,139,712)
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
|
Acquisition of property
and equipment
|
|
|
(3,881)
|
|
|
|
(51,340)
|
|
Acquisition of
intangible assets
|
|
|
(80,438)
|
|
|
|
(1,051,111)
|
|
Long-term
investment
|
|
|
(28,812)
|
|
|
|
(30,973)
|
|
|
|
|
|
|
|
|
|
|
Net cash used in
investing activities
|
|
|
(113,131)
|
|
|
|
(1,133,424)
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
|
Due to related
parties
|
|
|
1,110,238
|
|
|
|
37,042
|
|
Proceeds of loan
payables
|
|
|
2,197,400
|
|
|
|
-
|
|
(Repayment) of loan
payables
|
|
|
(198,431)
|
|
|
|
(1,402,336)
|
|
Proceeds from capital
contribution from a major shareholder
|
|
|
-
|
|
|
|
62,802
|
|
Net proceeds from
issuance of common stock
|
|
|
-
|
|
|
|
7,681,796
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by
financing activities
|
|
|
3,109,207
|
|
|
|
6,379,304
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange
rate changes on cash
|
|
|
(4,484)
|
|
|
|
8,373
|
|
|
|
|
|
|
|
|
|
|
Net increase
(decrease) in cash
|
|
|
(144,489)
|
|
|
|
114,541
|
|
|
|
|
|
|
|
|
|
|
Cash, beginning of
year
|
|
|
164,217
|
|
|
|
49,676
|
|
|
|
|
|
|
|
|
|
|
Cash, end of
year
|
|
$
|
19,728
|
|
|
$
|
164,217
|
|
|
|
|
|
|
|
|
|
|
Supplemental
disclosures of cash flow information:
|
|
|
|
|
|
|
|
|
Cash paid for
interest
|
|
$
|
25,501
|
|
|
$
|
-
|
|
Cash paid for income
tax
|
|
$
|
-
|
|
|
$
|
-
|
|
|
|
|
|
|
|
|
|
|
Supplemental
disclosures of non-cash operating, investing and financing
activities:
|
|
|
|
|
|
|
|
|
Right-of-use assets
obtained in exchange for operating lease liabilities
|
|
$
|
241,093
|
|
|
$
|
-
|
|
Transfer of prepaid
software development expenditure to intangible assets
|
|
$
|
-
|
|
|
$
|
50,000
|
|
Shares issued for
accrued bonus to officers
|
|
$
|
-
|
|
|
$
|
259,023
|
|
IMPORTANT NOTICE TO USERS (summary only, please refer to the
Form 10-K for full text of notice); All information is unaudited
unless otherwise noted or accompanied by an audit opinion and is
subject to the more comprehensive information contained in our SEC
reports and filings. We do not endorse third-party information. All
information speaks as of the last fiscal quarter or year for which
we have filed a Form 10-K or 10-Q, or for historical information
the date or period expressly indicated in or with such information.
We undertake no duty to update the information. Forward-looking
statements are subject to risks and uncertainties described in our
Forms 10-Q and 10-K.
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SOURCE Datasea Inc.