ZW Data Action Technologies Inc. (Nasdaq: CNET) (the "Company"), an
integrated online advertising, precision marketing, data analytics
and other value-added services provider serving enterprise clients,
today announced its unaudited financial results for the three and
nine months ended September 30, 2020.
Third
Quarter of
2020 Financial
Highlights
|
|
For the Three Months Ended September 30, |
($ millions, except per share data) |
|
2020 |
|
2019 |
|
% Change |
Revenues |
|
$12.30 |
|
$15.51 |
|
-20.7% |
Gross
profit (loss) |
|
($0.64) |
|
$0.89 |
|
-171.9% |
Gross
margin |
|
-5.2% |
|
5.8% |
|
-11pp* |
Loss
from operations |
|
($1.40) |
|
($0.28) |
|
-410.5% |
Operating loss margin |
|
-11.4% |
|
-1.8% |
|
-9.6pp |
Net
loss attributable to CNET |
|
($1.33) |
|
($0.39) |
|
-243.6% |
Loss
per share |
|
($0.06) |
|
($0.02) |
|
-200.0% |
*pp: percent points |
|
|
|
|
|
|
- Revenues decreased by 20.7% to
$12.30 million for the third quarter of 2020, primarily due to the
decrease in revenues from our Internet advertising and distribution
of the right to use search engine marketing service business
categories, as a result of the slow recovery after the COVID-19
outbreak.
- Gross loss was $0.64 million with a
gross loss margin of 5.2% for the third quarter of 2020.
- Loss from operations was $1.40
million for the third quarter of 2020, compared to $0.28 million
for the same period of last year, primarily attributable to the
decrease in gross profit, which was partially offset by the
decrease in operating expenses.
- Net loss attributable to CNET was
$1.33 million, or loss per share of $0.06, for the third quarter of
2020, compared to net loss of $0.39 million, or loss per share of
$0.02, for the same period of last year.
“Despite continued decrease on a year-over-year
basis, our third quarter revenues increased 18% sequentially and
almost tripled from the trough level in the first quarter,
highlighting the continuing post-pandemic recovery trend. Looking
ahead, with restoring growth and profitability remaining a
challenge for us in the near-term, we are actively pursuing new
initiatives, opportunities, and strategic alternatives to right the
ship,” said Mr. Handong Cheng, Chairman and Chief Executive Officer
of ZW Data Action Technologies.
Third
Quarter
2020 Financial
Results
Revenues
|
|
For the Three Months Ended September 30, |
|
|
2020 |
|
2019 |
|
% Change |
- Internet advertising and related data service |
|
2,429 |
|
3,949 |
|
-38.5% |
- Distribution of the right to use search engine marketing
service |
|
8,706 |
|
11,554 |
|
-24.6% |
- Data and technical services |
|
300 |
|
5 |
|
NM |
Internet advertising and related services |
|
11,435 |
|
15,508 |
|
-26.3% |
Ecommerce O2O advertisement and marketing services |
|
269 |
|
0 |
|
NM |
Technical solution services |
|
600 |
|
0 |
|
NM |
Total revenues |
|
12,304 |
|
15,508 |
|
-20.7% |
|
|
|
|
|
|
|
For the third quarter of 2020, revenues
decreased by $3.20 million, or 20.7%, to $12.30 million from $15.51
million for the same period of last year. The decrease in revenues
was primarily attributable to the decrease in revenues from the
Internet advertising and distribution of the right to use search
engine marketing service business categories, as a result of slow
business recovery after the COVID-19 outbreak during the first
quarter of 2020.
Cost of revenues
|
|
For the Three Months Ended September 30, |
|
|
2020 |
|
2019 |
|
% Change |
- Internet advertising and related data service |
|
1,998 |
|
3,669 |
|
-45.5% |
- Distribution of the right to use search engine marketing
service |
|
9,731 |
|
10,947 |
|
-11.1% |
- Data and technical services |
|
265 |
|
0 |
|
NM |
Internet advertising and related services |
|
11,994 |
|
14,616 |
|
-17.9% |
Ecommerce O2O advertisement and marketing services |
|
375 |
|
0 |
|
NM |
Technical solution services |
|
576 |
|
0 |
|
NM |
Total cost of revenues |
|
12,945 |
|
14,616 |
|
-11.4% |
Total cost of revenues decreased by $1.67
million, or 11.4%, to $12.95 million for the third quarter of 2020
from $14.62 million for the same period of last year. The decrease
in cost of revenues was primary attributable to the decrease in
costs associated with the distribution of the right to use search
engine marketing service we purchased from key search engines and
cost related to providing Internet advertising services on our ad
portals, which was in line with the decrease in the related
revenues as discussed above.
Gross profit (loss) and gross profit (loss)
margin
Gross loss was $0.64 million for the third
quarter of 2020, compared to gross profit of $0.89 million for the
same period of last year, which was primarily due to gross loss
incurred from our main revenue stream, the distribution of the
right to use search engine marketing service business category, as
a result of the slow recovery of economy after the COVID-19
outbreak during the first quarter of 2020, which was partially
offset by the increase in gross profit generated from Internet
advertising business. Gross loss margin was 5.2% for third quarter
of 2020, compared to gross profit margin of 5.8% for the same
period of last year.
Operating expenses
Sales and marketing expenses decreased by $0.05
million, or 47.7%, to $0.06 million for the third quarter of 2020
from $0.11 million for the same period of last year. The decrease
in sales and marketing expenses was mainly attributable to the
decrease in performance based salary and bonus expenses, due to the
decrease in revenues.
General and administrative expenses decreased by
$0.23 million, or 27.5%, to $0.59 million for the third quarter of
2020 from $0.82 million for the same period of last year. The
decrease in general and administrative expenses was mainly
attributable to the decrease in general departmental expenses, as a
result of cost reduction plan executed by management after the
COVID-19 outbreak.
Research and development expenses decreased by
$0.13 million, or 52.7%, to $0.11 million for the third quarter of
2020 from $0.24 million for the same period of last year. Research
and development expenses accounted for 0.9% of total revenues for
the third quarter of 2020, compared to 1.5% for the same period of
last year.
Operating loss
Loss from operations was $1.40 million for the
third quarter of 2020, compared to $0.28 million for the same
period of last year. Operating loss margin was 11.4% for the third
quarter of 2020, compared to 1.8% for the same period of last
year.
Other income (expense), net
Total other expenses decreased to $0.08 million
for the third quarter of 2020, compared to $0.13 million for the
same period of last year, which was primarily related to change in
fair value of warrant liabilities. Net loss
attributable to CNET and loss per share
Net loss attributable to CNET was $1.33 million,
or loss per share of $0.06, for the third quarter of 2020. This
compared to net loss attributable to CNET of $0.39 million, or loss
per share of $0.02, for the same period of last year.
First
Nine
Months 2020 Financial
Results
|
|
For the Nine Months Ended September 30, |
($ millions, except per share data) |
|
2020 |
|
2019 |
|
% Change |
Revenues |
|
$27.10 |
|
$39.53 |
|
-31.4% |
Gross profit |
|
$0.56 |
|
$1.70 |
|
-67.3% |
Gross margin |
|
2.1% |
|
4.3% |
|
-2.2 pp* |
Loss from operations |
|
($4.70) |
|
($2.24) |
|
-110.3% |
Operating loss margin |
|
-17.3% |
|
-5.7% |
|
-11.7 pp |
Net loss attributable to
CNET |
|
($4.61) |
|
($1.91) |
|
-142.0% |
Loss per share |
|
($0.22) |
|
($0.12) |
|
-83.3% |
*pp: percent points |
|
|
|
|
|
|
Revenues
|
|
For the Nine Months Ended September 30, |
|
|
2020 |
|
2019 |
|
% Change |
- Internet advertising and related data service |
|
5,679 |
|
9,384 |
|
-39.5 |
% |
- Distribution of the right to use search engine marketing
service |
|
18,004 |
|
30,134 |
|
-40.3 |
% |
- Data and technical services |
|
900 |
|
10 |
|
NM |
|
Internet advertising and related services |
|
24,583 |
|
39,528 |
|
-37.8 |
% |
Ecommerce O2O advertisement and marketing services |
|
1,276 |
|
0 |
|
NM |
|
Technical solution services |
|
1,245 |
|
0 |
|
NM |
|
Total revenues |
|
27,104 |
|
39,528 |
|
-31.4 |
% |
|
|
|
|
|
|
|
|
For the first nine months of 2020, revenues
decreased by $12.42 million, or 31.4%, to $27.10 million from
$39.53 million for the same period of last year. The decrease in
revenues was primarily attributable to the decrease in revenues
from our Internet advertising and distribution of the right to use
search engine marketing service business categories, as a result of
the COVID-19 outbreak during the first fiscal quarter and the slow
recovery in the second and third quarters of 2020.
Cost of revenues
|
|
For the Nine Months Ended September 30, |
|
|
2020 |
|
2019 |
|
% Change |
- Internet advertising and related data service |
|
4,904 |
|
8,887 |
|
-44.8 |
% |
- Distribution of the right to use search engine marketing
service |
|
19,147 |
|
28,936 |
|
-33.8 |
% |
- Data and technical services |
|
796 |
|
5 |
|
NM |
|
Internet advertising and related services |
|
24,847 |
|
37,828 |
|
-34.3 |
% |
Ecommerce O2O advertisement and marketing services |
|
1,125 |
|
0 |
|
NM |
|
Technical solution services |
|
576 |
|
0 |
|
NM |
|
Total cost of revenues |
|
26,548 |
|
37,828 |
|
-29.8 |
% |
For the first nine months of 2020, cost of
revenues decreased by $11.28 million, or 29.8%, to $26.55 million
from $37.83 million for the same period of last year, which was
primarily due to the decrease in costs associated with the
distribution of the right to use search engine marketing service we
purchased from key search engines and cost related to providing
Internet advertising services on our ad portals, which was in line
with the decrease in the related revenues.
Gross profit and gross margin
Gross profit decreased by $1.14 million, or
67.3%, to $0.56 million for the first nine months of 2020 from
$1.70 million for the same period of last year, as a result of the
gross loss of our distribution of the right to use search engine
marketing service and partially offset by and the increase in gross
profit generated from our Internet advertising service, Ecommerce
O2O advertising and marketing services and technical solution
services during the first nine months of 2020.
Overall gross margin was 2.1% for first nine
months of 2020, compared to 4.3% for the same period of last
year.
Operating expenses
Sales and marketing expenses decreased by $0.17
million, or 36.4%, to $0.29 million for the first nine months of
2020 from $0.46 million for the same period of last year. The
changes in sales and marketing expenses was mainly attributable to
the following reasons: (1) staff salary and benefit expenses and
general departmental expenses decreased by $0.29 million, due to
office shutdown during the first fiscal quarter of 2020, resulted
from the COVID-19 outbreak during the period and related epidemic
control measures imposed by the local governments where we operate,
and slow recovery of business performance after the outbreak in the
following quarters; and (2) the increase in share-based
compensation expenses of $0.12 million, related to restricted
shares granted and issued to our sales staff during the first
fiscal quarter of 2020.
General and administrative expenses increased by
$1.65 million, or 57.2%, to $4.52 million for the first nine months
of 2020 from $2.88 million for the same period of last year. The
increases in general and administrative expenses was mainly
attributable to the following reasons: (1) the increase in
share-based compensation expenses of $1.49 million, due to
restricted shares granted and issued in the first fiscal quarter of
2020; and (2) the increase in allowance for doubtful accounts of
$0.31 million.
Research and development expenses decreased by
$0.16 million, or 26.0%, to $0.44 million for the first nine months
of 2020 from $0.60 million for the same period of last year.
Research and development expenses accounted for 1.6% of total
revenues for the first nine months of 2020, compared to 1.5% for
the same period of last year.
Operating loss
Loss from operations increased by $2.47 million,
or 110.3%, to $4.70 million for the first nine months of 2020 from
$2.24 million for the same period of last year. Operating loss
margin was 17.3% for the first nine months of 2020, compared to
5.7% for the same period of last year.
Other income (expense), net
Total other income was $nil for the first nine
months of 2020, compared to $0.31 million for the same period of
last year, which was primarily related to change in fair value of
warrant liabilities. Net loss attributable to
CNET and loss per share
As a result of the foregoing, net loss
attributable to CNET was $4.61 million, or loss per share of $0.22,
for the first nine months of 2020. This compared to net loss
attributable to CNET of $1.91 million, or loss per share of $0.12,
for the same period of last year.
Financial Condition
As of September 30, 2020, the Company had cash
and cash equivalents of $0.50 million, compared to $1.60 million as
of December 31, 2019. Accounts receivable, net was $2.28 million as
of September 30, 2020, compared to $3.26 million as of December 31,
2019. Working capital was $2.35 million as of September 30, 2020,
compared to $4.92 million as of December 31, 2019.
Net cash provided by operating activities was
$0.60 million for the first nine months of 2020, compared to net
cash used in operating activities of $4.06 million for the same
period of last year. Net cash used in investing activities was
$1.27 million for the first nine months of 2020, compared to $0.80
million for the same period of last year. Net cash used in
financing activities was $0.43 million for the first nine months of
2020, compared to net cash provided by financing activities of
$1.96 million for the same period of last year.
Recent Developments
Effective October 14, 2020, the Company changed
its corporate name change from “ChinaNet Online Holdings, Inc.” to
“ZW Data Action Technologies Inc.”
On August 7, 2020, the Company appointed Mr.
Charles Chiu to the position of the Company’s Chief Operating
Officer and Mr. Mark Li, the current Chief Financial Officer of the
Company, to serve as Secretary of the Company. On the same date,
Mr. George Chu resigned from the roles of Chief Operating Officer
and Secretary of the Company due to personal reasons. Mr. Chu
continued to serve as a director of the Board of Directors of the
Company.
About ZW Data Action
Technologies Inc.
Established in 2003 and headquartered in
Beijing, China, ZW Data Action Technologies Inc. (the “Company”)
offers online advertising, precision marketing, data analytics and
other value-added services for enterprise clients. Leveraging its
fully integrated services platform, proprietary database, and
cutting-edge algorithms, ZW Data Action Technologies delivers
customized, result-driven business solutions for small and
medium-sized enterprise clients in China. The Company also develops
blockchain and artificial intelligence enabled web/mobile
applications and software solutions for general public, enterprise
clients, and government agencies. More information about the
Company can be found at: http://www.zdat.com/.
Safe Harbor Statement
This release contains certain "forward-looking
statements" relating to the business of ZW Data Action Technologies
Inc., which can be identified by the use of forward-looking
terminology such as "believes," "expects," "anticipates,"
"estimates" or similar expressions. Such forward-looking statements
involve known and unknown risks and uncertainties, including
business uncertainties relating to government regulation of our
industry, market demand, reliance on key personnel, future capital
requirements, competition in general and other factors that may
cause actual results to be materially different from those
described herein as anticipated, believed, estimated or expected.
Certain of these risks and uncertainties are or will be described
in greater detail in our filings with the Securities and Exchange
Commission. These forward-looking statements are based on ZW Data
Action Technologies current expectations and beliefs concerning
future developments and their potential effects on the Company.
There can be no assurance that future developments affecting ZW
Data Action Technologies will be those anticipated by ZW Data
Action Technologies. These forward-looking statements involve a
number of risks, uncertainties (some of which are beyond the
control of the Company) or other assumptions that may cause actual
results or performance to be materially different from those
expressed or implied by such forward-looking statements. ZW Data
Action Technologies undertakes no obligation to publicly update or
revise any forward-looking statements, whether as a result of new
information, future events or otherwise, except as may be required
under applicable securities laws.
For more information, please contact:
Sherry
Zheng Weitian Group
LLCEmail: shunyu.zheng@weitian-ir.comPhone: +1 718-213-7386
|
|
ZW DATA ACTION TECHNOLOGIES
INC.CONDENSED
CONSOLIDATED BALANCE SHEETS(In
thousands, except for number of shares and per share data) |
|
|
|
September 30,
2020 |
|
December 31, 2019 |
|
|
(US $) |
|
(US $) |
|
|
(Unaudited) |
|
|
Assets |
|
|
|
|
Current assets: |
|
|
|
|
Cash and cash equivalents |
|
$ |
500 |
|
$ |
1,603 |
Accounts receivable, net of allowance for doubtful accounts of
$3,996 and |
|
|
|
|
|
|
$3,148, respectively |
|
|
2,282 |
|
|
3,260 |
Prepayment and deposit to suppliers |
|
|
6,301 |
|
|
6,980 |
Due from related parties, net |
|
|
58 |
|
|
81 |
Other current assets, net |
|
|
961 |
|
|
11 |
Total current assets |
|
|
10,102 |
|
|
11,935 |
|
|
|
|
|
|
|
Long-term investments |
|
|
64 |
|
|
35 |
Operating lease right-of-use assets |
|
|
4 |
|
|
12 |
Property
and equipment, net |
|
|
74 |
|
|
78 |
Intangible assets, net |
|
|
1,288 |
|
|
1,899 |
Blockchain platform applications development costs |
|
|
4,189 |
|
|
3,879 |
Long-term prepayments |
|
|
474 |
|
|
- |
Deferred
tax assets, net |
|
|
815 |
|
|
713 |
Total Assets |
|
$ |
17,010 |
|
$ |
18,551 |
|
|
|
|
|
Liabilities and Equity |
|
|
|
|
Current liabilities: |
|
|
|
|
Short-term bank loan |
|
$ |
- |
|
$ |
430 |
Accounts payable |
|
|
552 |
|
|
408 |
Advance from customers |
|
|
2,822 |
|
|
2,006 |
Accrued payroll and other accruals |
|
|
442 |
|
|
491 |
Taxes payable |
|
|
3,290 |
|
|
3,214 |
Lease payment liability related to short-term leases |
|
|
222 |
|
|
136 |
Other current liabilities |
|
|
325 |
|
|
221 |
Warrant liabilities |
|
|
103 |
|
|
107 |
Total current liabilities |
|
|
7,756 |
|
|
7,013 |
Long-term liabilities: |
|
|
|
|
Long-term borrowing from a director |
|
|
129 |
|
|
|
125 |
|
Total Liabilities |
|
|
7,885 |
|
|
|
7,138 |
|
|
|
|
|
|
Commitments and contingencies |
|
|
|
|
|
|
|
|
|
Equity: |
|
|
|
|
ZW Data Action Technologies Inc.’s stockholders’ equity |
|
|
|
|
Common stock (US$0.001 par value; authorized 50,000,000 shares;
issued and |
|
|
|
|
|
|
|
|
outstanding 21,741,926 shares and 19,629,403 shares at
September 30, 2020 and December 31, 2019, respectively) |
|
|
22 |
|
|
|
20 |
|
Additional paid-in capital |
|
|
45,569 |
|
|
|
43,111 |
|
Statutory reserves |
|
|
2,607 |
|
|
|
2,607 |
|
Accumulated deficit |
|
|
(40,384 |
) |
|
|
(35,773 |
) |
Accumulated other comprehensive income |
|
|
1,371 |
|
|
|
1,505 |
|
Total ZW Data Action Technologies Inc.’s stockholders’ equity |
|
|
9,185 |
|
|
|
11,470 |
|
|
|
|
|
|
Noncontrolling interests |
|
|
(60 |
) |
|
|
(57 |
) |
Total equity |
|
|
9,125 |
|
|
|
11,413 |
|
|
|
|
|
|
Total Liabilities and Equity |
|
$ |
17,010 |
|
|
$ |
18,551 |
|
|
|
|
|
|
|
|
|
|
ZW DATA ACTION TECHNOLOGIES
INC.CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS AND
COMPREHENSIVE LOSS(In thousands, except
for number of shares and per share data) |
|
|
|
Nine Months Ended September 30, |
|
Three Months Ended September 30, |
|
|
|
2020 |
|
|
|
2019 |
|
|
|
2020 |
|
|
|
2019 |
|
|
|
(US $) |
|
(US $) |
|
(US $) |
|
(US $) |
|
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
From unrelated parties |
|
$ |
27,086 |
|
|
$ |
39,025 |
|
|
$ |
12,300 |
|
|
$ |
15,113 |
|
From a related party |
|
|
18 |
|
|
|
503 |
|
|
|
4 |
|
|
|
395 |
|
Total
revenues |
|
|
27,104 |
|
|
|
39,528 |
|
|
|
12,304 |
|
|
|
15,508 |
|
Cost of revenues |
|
|
26,548 |
|
|
|
37,828 |
|
|
|
12,945 |
|
|
|
14,616 |
|
Gross profit/(loss) |
|
|
556 |
|
|
|
1,700 |
|
|
|
(641 |
) |
|
|
892 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and marketing expenses |
|
|
293 |
|
|
|
461 |
|
|
|
58 |
|
|
|
111 |
|
General and administrative expenses |
|
|
4,520 |
|
|
|
2,875 |
|
|
|
592 |
|
|
|
817 |
|
Research and development expenses |
|
|
443 |
|
|
|
599 |
|
|
|
113 |
|
|
|
239 |
|
Total operating expenses |
|
|
5,256 |
|
|
|
3,935 |
|
|
|
763 |
|
|
|
1,167 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from
operations |
|
|
(4,700 |
) |
|
|
(2,235 |
) |
|
|
(1,404 |
) |
|
|
(275 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expenses) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net |
|
|
- |
|
|
|
(33 |
) |
|
|
1 |
|
|
|
(10 |
) |
Other expenses |
|
|
(4 |
) |
|
|
(6 |
) |
|
|
(21 |
) |
|
|
(2 |
) |
Change in fair value of warrant liabilities |
|
|
4 |
|
|
|
351 |
|
|
|
(64 |
) |
|
|
(120 |
) |
Total other income |
|
|
- |
|
|
|
312 |
|
|
|
(84 |
) |
|
|
(132 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss before income tax
benefit and noncontrolling interests |
|
|
(4,700 |
) |
|
|
(1,923 |
) |
|
|
(1,488 |
) |
|
|
(407 |
) |
Income tax benefit |
|
|
87 |
|
|
|
10 |
|
|
|
155 |
|
|
|
16 |
|
Net loss |
|
|
(4,613 |
) |
|
|
(1,913 |
) |
|
|
(1,333 |
) |
|
|
(391 |
) |
Net loss attributable to noncontrolling interests |
|
|
2 |
|
|
|
8 |
|
|
|
- |
|
|
|
3 |
|
Net loss attributable to ZW Data Action Technologies
Inc. |
|
$ |
(4,611 |
) |
|
$ |
(1,905 |
) |
|
$ |
(1,333 |
) |
|
$ |
(388 |
) |
Net loss |
|
$ |
(4,613 |
) |
|
$ |
(1,913 |
) |
|
$ |
(1,333 |
) |
|
$ |
(391 |
) |
Foreign
currency translation (loss)/gain |
|
|
(135 |
) |
|
|
97 |
|
|
|
(203 |
) |
|
|
73 |
|
Comprehensive loss |
|
$ |
(4,748 |
) |
|
$ |
(1,816 |
) |
|
$ |
(1,536 |
) |
|
$ |
(318 |
) |
Comprehensive loss attributable to noncontrolling interests |
|
|
3 |
|
|
|
6 |
|
|
|
2 |
|
|
|
1 |
|
Comprehensive loss
attributable to ZW Data Action Technologies Inc. |
|
$ |
(4,745 |
) |
|
$ |
(1,810 |
) |
|
$ |
(1,534 |
) |
|
$ |
(317 |
) |
|
|
|
|
|
|
|
|
|
Loss per share |
|
|
|
|
|
|
|
|
Loss per
common share |
|
|
|
|
|
|
|
|
Basic and diluted |
|
$ |
(0.22 |
) |
|
$ |
(0.12 |
) |
|
$ |
(0.06 |
) |
|
$ |
(0.02 |
) |
|
|
|
|
|
|
|
|
|
Weighted average number of common shares
outstanding: |
|
|
|
|
|
|
|
|
Basic and diluted |
|
|
21,271,301 |
|
|
|
16,447,233 |
|
|
|
21,720,259 |
|
|
|
16,517,440 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ZW DATA ACTION TECHNOLOGIES
INC.CONDENSED CONSOLIDATED STATEMENTS OF
CASH FLOWS(In thousands) |
|
|
|
Nine Months Ended September 30, |
|
|
2020 |
|
|
2019 |
|
|
(US $) |
|
|
(US $) |
|
|
(Unaudited) |
|
|
(Unaudited) |
Cash flows from operating activities |
|
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(4,613 |
) |
|
|
$ |
(1,913 |
) |
Adjustments to
reconcile net loss to net cash
provided by/(used in)
operating activities |
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
622 |
|
|
|
|
66 |
|
Amortization of operating lease right-of-use assets |
|
|
7 |
|
- |
|
|
88 |
|
Share-based compensation expenses |
|
|
2,066 |
|
|
|
|
307 |
|
Provision for allowances for doubtful accounts |
|
|
751 |
|
|
|
|
445 |
|
Deferred taxes |
|
|
(87 |
) |
|
|
|
(10 |
) |
Change in fair value of warrant liabilities |
|
|
(4 |
) |
|
|
|
(351 |
) |
Changes in operating
assets and liabilities |
|
|
|
|
|
|
|
|
|
Accounts receivable |
|
|
254 |
|
|
|
|
(289 |
) |
Prepayment and deposit to suppliers |
|
|
1,077 |
|
|
|
|
(5,191 |
) |
Due from related parties |
|
|
24 |
|
|
|
|
226 |
|
Other current assets |
|
|
(5 |
) |
|
|
|
11 |
|
Long-term prepayments |
|
|
(375 |
) |
|
|
|
- |
|
Accounts payable |
|
|
137 |
|
|
|
|
(1,946 |
) |
Advance from customers |
|
|
754 |
|
|
|
|
4,151 |
|
Advance from a customer, related |
|
|
- |
|
|
|
|
9 |
|
Accrued payroll and other accruals |
|
|
(55 |
) |
|
|
|
(242 |
) |
Lease payment liability related to short-term leases |
|
|
81 |
|
|
|
|
180 |
|
Other current liabilities |
|
|
(38 |
) |
|
|
|
291 |
|
Taxes payable |
|
|
8 |
|
|
|
|
123 |
|
Prepaid lease payment |
|
|
(9 |
) |
|
|
|
(10 |
) |
Net cash provided
by/(used in)
operating activities |
|
|
595 |
|
|
|
|
(4,055 |
) |
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities |
|
|
|
|
|
|
|
|
|
Investment to investee entities |
|
|
(27 |
) |
|
|
|
(36 |
) |
Short-term loan to an unrelated party |
|
|
(944 |
) |
|
|
|
- |
|
Payment for blockchain platform applications development costs |
|
|
(302 |
) |
|
|
|
- |
|
Prepayment for software system development |
|
|
- |
|
|
|
|
(760 |
) |
Net cash used in
investing activities |
|
|
(1,273 |
) |
|
|
|
(796 |
) |
|
|
|
|
|
|
|
|
|
|
Cash flows from financing activities |
|
|
|
|
|
|
|
|
|
Proceeds from issuance of common stock (net of cash offering cost
of US$8) |
|
|
- |
|
|
|
|
2,393 |
|
Proceeds from short-term bank loan |
|
|
- |
|
|
|
|
438 |
|
Repayment of short-term bank loan |
|
|
(429 |
) |
|
|
|
(875 |
) |
Net cash (used in)/provided by
financing activities |
|
|
(429 |
) |
|
|
|
1,956 |
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange rate fluctuation |
|
|
4 |
|
|
|
|
(10 |
) |
|
|
|
|
|
|
|
|
|
|
Net decrease in cash and cash equivalents |
|
|
(1,103 |
) |
|
|
|
(2,905 |
) |
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at beginning of the period |
|
|
1,603 |
|
|
|
|
3,742 |
|
Cash and cash equivalents at end of the period |
|
$ |
500 |
|
|
|
$ |
837 |
|
|
|
|
|
|
|
|
|
|
|
Supplemental disclosure of cash flow
information |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income taxes paid |
|
$ |
- |
|
|
|
$ |
- |
|
Interest expense paid |
|
$ |
2 |
|
|
|
$ |
36 |
|
|
|
|
|
|
|
|
|
|
|
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