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 March 2024
Commission File No. 001-38505
CLPS Incorporation
c/o Unit 1000, 10th Floor, Millennium City III
370 Kwun Tong Road, Kwun Tong, Kowloon
Hong Kong SAR
Tel: (852) 37073600
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICE)
Indicate by check mark whether the registrant files or will file annual
reports under cover Form 20-F or Form 40-F.
Form 20-F ☒
Form 40-F ☐
Item 8.01 Other Information
On March 5, 2024, CLPS Inc. (the “Company”)
issued a press release announcing its financial results for the six months ended December 31, 2023, or the first half of the Company’s
fiscal year 2024. A copy of this press release is filed as Exhibit 99.1 to this report.
Exhibits
SIGNATURE
Pursuant to the requirements of the Securities
Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| |
CLPS Incorporation |
| |
|
|
| |
By: |
/s/ Raymond Ming Hui Lin |
| |
Name: |
Raymond Ming Hui Lin |
| |
Title: |
Chief Executive Officer |
Dated: March 5, 2024
2
Exhibit 99.1
CLPS Incorporation Reports Financial Results
for the First Half of Fiscal Year 2024
Hong Kong, March 5, 2024 /PRNewswire/ —
CLPS Incorporation (the “Company” or “CLPS”) (Nasdaq: CLPS), today announced its unaudited financial results for the
six months ended December 31, 2023, or the first half of the Company’s fiscal year 2024.
During this period, CLPS navigated a challenging
global economic landscape due to factors such as economic slowdown and the impact of exchange rate fluctuation between the RMB and the
U.S. dollar, given its reporting currency. While these factors impacted business development, they also provided valuable insights and
strengthened the Company’s ability to navigate such dynamic environments.
Observing a temporary reduction in demand for
certain IT services from established clients due to budget adjustments, particularly in banking and e-commerce areas, CLPS offset revenue
challenges by strategically acquiring new clients, innovating product development, diversifying revenue streams, and implementing proactive
market solutions. Increased compensation expenses linked to the growing demand for IT professionals were effectively managed through the
Company’s Talent Creation Program (“TCP”) and Talent Development Program (“TDP”). These programs seamlessly blend
education, training, and service delivery, not only mitigating the impact of rising manpower costs but also reinforcing CLPS’s commitment
to nurturing top talents.
Through consistent execution of its global expansion
strategy, coupled with investments in advanced technology, extensive research, and a deep understanding of client needs, CLPS has built
a strong industry reputation, enhanced its competitiveness, and solidified its bargaining power over the years.
First Half of Fiscal 2024 Highlights (all results
compared to the six months ended December 31, 2022)
| ● | Revenue from the United States increased by 92.7% to $1.9 million from $1.0 million. |
| ● | Revenue generated outside of mainland China increased by 25.4% to $9.0 million from $7.2 million. |
| ● | Revenue from automotive area increased by 10.7% to $7.2 million from $6.5 million. |
| ● | Total operating expenses decreased by 2.6% to $16.7 million from $17.1 million. |
| ● | Non-GAAP operating expenses1 decreased by 8.2% to $13.9 million from $15.2 million. |
| ● | Net cash provided by operating activities was $13.1 million, representing the fifth consecutive reporting
period of generating positive cash flow from operations. |
Mr. Raymond Lin, Chief Executive Officer of CLPS,
commented, “Despite facing challenges in the first half of fiscal 2024, I am pleased to share several key developments that demonstrate
our commitment to building a strong foundation for future growth.
Our M&A strategy, exemplified by the acquisition
of Purple Potato Finance, has bolstered our overseas credit card business. Similarly, the January 2024 acquisition of College of Allied
Educators Pte. Ltd. in Singapore represents a significant step in CLPS’s commitment to developing industry-level IT professionals through
our TCP and TDP.
Further strengthening our global presence, we
intensified our business efforts in North America. This included opening a subsidiary in Canada and boosting our U.S. operation, which
drove a remarkable 92.7% increase in the U.S. revenue compared to the prior year period. In Southeast Asia, our business in Singapore
generated a 15.9% year-over-year revenue increase. Additionally, we generated revenue from our business in Philippines during this period.
Moreover, we remain dedicated to building a sustainable
future by actively nurturing a positive corporate culture through leadership training, university collaborations, strategic partnerships,
and enriched talent development opportunities.
We continue to champion innovation, showcasing
our commitment to staying at the forefront of technology with the launch of an AI-generated content (AIGC) solution and an innovative
quantitative trading system. Our active participation in industry events further reinforces our position on staying ahead and engages
with the broader tech community.
With confidence, we believe these strategic decisions
position CLPS for long-term success. We remain dedicated to transparency, innovation, and creating sustainable value for all stakeholders.”
Ms. Rui Yang, Chief Financial Officer of CLPS,
commented, “We have managed to achieve noteworthy financial results during this period. We actively pursued and secured new revenue
streams, including initial sales of IT products. Our global expansion strategy and cost optimization efforts led to 25.4% increase in
revenue generated outside of the mainland China, and a 2.6% decrease in operating expenses. Maintaining a healthy cash flow remains a
core objective, and we are proud to report our fifth consecutive period of positive cash flow from operations.
Further demonstrating our commitment to shareholder
value, we declared a second special cash dividend of $0.10 per share in November 2023. Looking ahead with unwavering determination, we
are confident in our ability to not only overcome potential challenges but also leverage them as opportunities to propel CLPS towards
even greater heights of financial success.”
First Half of Fiscal Year 2024 Financial Results
Revenues
In the first half of fiscal 2024, revenues decreased
by $5.0 million, or 6.5%, to $71.8 million from $76.8 million in the prior year period. The decrease was due to the decreased demand from
existing clients and the effect of currency fluctuation in RMB against the U.S. dollar.
Revenues by Service
| ● | Revenue from IT consulting services decreased by $3.3 million, or 4.6%, to $69.5 million in the first
half of fiscal year 2024 from $72.8 million in the prior year period. Revenue from IT consulting services accounted for 96.8% of
total revenue, compared to 94.9% in the prior year period. The decrease was primarily due to existing clients’ increased focus on
budget optimization leading to a decrease in demand. |
| ● | Revenue from customized IT solution services decreased by $2.0 million, or 61.5%, to $1.2 million in the
first half of fiscal 2024 from $3.2 million in the prior year period. Revenue from customized IT solution services accounted for 1.7%
of total revenue, compared to 4.1% in the prior year period. The decrease was primarily due to existing clients’ increased focus
on budget optimization leading to a decrease in demand. |
| ● | Revenue from other services increased by $0.2 million, or 37.5%, to $1.0 million in the first half
of fiscal year 2024 from $0.8 million in the prior year period. Revenue from other services accounted for 1.5% of total revenue,
compared to 1.0% in the prior year period. The increase was primarily due to the initial revenue generated from IT product sales during
this reporting period. |
Revenues by Operational Areas
| ● | Revenue from the banking area decreased by $3.6 million, or 11.2%, to $28.6 million in the first half
of fiscal 2024, from $32.2 million in the prior year period. Revenue from banking area accounted for 39.9% and 42.0% of total revenues
in the first half of fiscal 2024 and 2023, respectively. |
| ● | Revenue from the wealth management area decreased by $0.2 million, or 1.1%, to $18.6 million in the first
half of fiscal 2024, from $18.8 million in the prior year period. Revenue from wealth management area accounted for 25.9% and 24.5% of
total revenues in the first half of fiscal 2024 and 2023, respectively. |
| ● | Revenue from the e-Commerce area decreased by $2.7 million, or 20.2%, to $11.0 million in the first half
of fiscal 2024, from $13.7 million in the prior year period. Revenue from e-Commerce area accounted for 15.3% and 17.9% of total revenues
in the first half of fiscal 2024 and 2023, respectively. |
| ● | Revenue from the automotive area increased by $0.7 million, or 10.7%, to $7.2 million in the first half
of fiscal 2024, from $6.5 million in the prior year period. Revenue from automotive area accounted for 10.1% and 8.5% of total revenues
in the first half of fiscal 2024 and 2023, respectively. |
Revenues by Geography
Revenue generated outside of the mainland China
increased by 25.4% to $9.0 million in the first half of fiscal year 2024, from $7.2 million in the prior year period. The increase was
primarily due to the robust performance of our U.S. and Singapore operations.
Gross Profit
Gross profit was $15.8 million in the first half
of fiscal 2024, compared to $18.5 million in the prior year period.
Operating Expenses
Selling and marketing expenses increased by $0.04
million, or 1.5%, to $2.72 million in the first half of fiscal 2024 from $2.68 million in the prior year period. As a percentage of total
revenues, selling and marketing expenses increased to 3.8% in the first half of fiscal 2024 compared to 3.5% in the prior year period.
The increase was primarily due to a decrease in the turnover rate among core employees, resulting in an increase in the provision for
non-cash share-based compensation expenses. After excluding the non-cash share-based compensation expenses, non-GAAP selling and marketing
expenses2 decreased by $0.1 million, or 3.5%, to $2.5 million from $2.6 million in the prior year period.
Research and development expenses decreased by
$1.2 million, or 26.7%, to $3.2 million in the first half of fiscal 2024 from $4.4 million in the prior year period. As a percentage of
total revenues, research and development expenses decreased to 4.5% in the first half of fiscal 2024 compared to 5.7% in the prior year
period. The decrease was primarily due to the decreased demand in customized IT solution services, resulting to a strategic realignment
of our R&D department.
General and administrative expenses increased
by $0.5 million, or 4.6%, to $11.2 million in the first half of fiscal 2024 from $10.7 million in the prior year period. As a percentage
of total revenues, general and administrative expenses increased to 15.6% in the first half of fiscal 2024 compared to 13.9% in the prior
year period. The increase was primarily due to an increase in non-cash share-based compensation expenses. After excluding the non-cash
share-based compensation expenses, non-GAAP general and administrative expenses3 decreased by $0.1 million, or 1.9%, to $8.7
million from $8.8 million in the prior year period.
Operating (Loss) Income
Operating loss was $0.9 million in the first half
of fiscal 2024, compared to $1.3 million operating income in the same period of the previous year.
Other Income and Expenses
Total other income, net of other expenses was $0.1
million in the first half of fiscal 2024, compared to $0.2 million total other income, net of other expenses in the prior
year period.
Provision for Income Taxes
Provision for income taxes increased by $0.1 million
to $0.3 million in the first half of fiscal 2024 from $0.2 million in the same period of the previous year.
Net (Loss) Income
Net loss was $1.0 million in the first half of
fiscal 2024, compared to $1.4 million net income in the prior year period.
Non-GAAP net income4 was $1.7
million in the first half of fiscal 2024, compared to $3.3 million in the prior year period.
Net loss attributable to CLPS Incorporation’s
shareholders in the first half of fiscal 2024 was $1.5 million, compared to $1.3 million net income attributable to CLPS Incorporation’s
shareholders in the prior year period.
Non-GAAP net income attributable to CLPS Incorporation’s
shareholders5 was $1.2 million in the first half of fiscal 2024, compared to $3.2 million in the prior year period.
Cash Flow
As of December 31, 2023, the Company had cash
and cash equivalents of $35.1 million compared to $22.2 million as of June 30, 2023.
Net cash provided by operating activities was
approximately $13.1 million. Net cash used in investing activities was approximately $3.2 million. Net cash provided by financing activities
was approximately $2.3 million. The effect of exchange rate change on cash was approximately positive $0.7 million. The Company believes
that its current cash position and cash flow from operations are sufficient to meet its anticipated cash needs for at least the next 12
months.
Financial Outlook
Undeterred by the short-term challenges, we remain
confident about our long-term business growth. For fiscal year 2024, the Company expects, considering our financial numbers could be affected
by the floating exchange rate, and absent material acquisitions or non-recurring transactions, total sales growth was adjusted in the
range of approximately 5% to 10%, and non-GAAP net income growth in the range of approximately 7% to 12% compared to fiscal year 2023
financial report.
This forecast reflects the Company’s current and
preliminary views, which are subject to change and are subject to risks and uncertainties, including, but not limited to various risks
and uncertainties facing the Company’s business and operations as identified in its public filings.
Exchange Rate
The balance sheet amounts with the exception of
equity as of December 31, 2023, were translated at 7.0999 RMB to 1.00 USD compared to 7.2513 RMB to 1.00 USD as of June 30, 2023. The
equity accounts were stated at their historical rate. The average translation rates applied to the income statements accounts for the
periods ended December 31, 2023 and 2022 were 7.2347 RMB to 1.00 USD and 6.9789 RMB to 1.00 USD, respectively. The change in the value
of the RMB relative to the U.S. dollar may affect our financial results reported in the U.S. dollar terms without giving effect to any
underlying change in our business or results of operation.
About CLPS Incorporation
Headquartered in Hong Kong, CLPS Incorporation
is a global leading information technology (“IT”) consulting and solutions service provider focused on delivering services primarily
to global institutions on the banking, wealth management, e-commerce, and automotive sectors. The Company serves as an IT service provider
to a growing network of clients in the global financial service industry, including large financial institutions in the U.S., Europe,
Australia, Asia, and their PRC-based IT centers. The Company maintains 20 delivery and/or research & development centers to serve
different customers in various geographic locations. Mainland China centers are located in Shanghai, Beijing, Dalian, Tianjin, Xi’an,
Chengdu, Guangzhou, Shenzhen, Hangzhou, and Hainan. The remaining 10 global centers are located in Hong Kong SAR, USA, Japan, Singapore,
Australia, Malaysia, India, Philippines, Vietnam, and Canada. For further information regarding the Company, please visit: https://ir.clpsglobal.com/,
or follow CLPS on Facebook, Instagram, LinkedIn, X (formerly Twitter), and YouTube.
Forward-Looking Statements
Certain of the statements made in this press release
are “forward-looking statements” within the meaning and protections of Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include statements with respect to the
Company’s beliefs, plans, objectives, goals, expectations, anticipations, assumptions, estimates, intentions, and future performance,
and involve known and unknown risks, uncertainties and other factors, which may be beyond the Company’s control, and which may cause the
actual results, performance, capital, ownership or achievements of the Company to be materially different from future results, performance
or achievements expressed or implied by such forward-looking statements. All such statements attributable to us are expressly qualified
in their entirety by this cautionary notice, including, without limitation, those risks and uncertainties related to the Company’s financial
and operational performance in the first half of fiscal year 2024, its expectations of the Company’s future performance, its preliminary
outlook and guidance offered in this presentation, as well as the risks and uncertainties described in the Company’s most recently filed
SEC reports and filings. Such reports are available upon request from the Company, or from the Securities and Exchange Commission, including
through the SEC’s Internet website at http://www.sec.gov. We have no obligation and do not undertake to update, revise or correct any
of the forward-looking statements after the date hereof, or after the respective dates on which any such statements otherwise are made.
Use of Non-GAAP Financial Measures
The consolidated financial information is prepared
in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”), except
that the consolidated statement of changes in shareholders’ equity, consolidated statements of cash flows, and the detailed notes have
not been presented. The Company uses non-GAAP operating income, non-GAAP general and administrative expenses, non-GAAP operating margin,
non-GAAP net income attributable to CLPS Incorporation’s shareholders, and basic and diluted non-GAAP net income per share, which
are non-GAAP financial measures. Non-GAAP operating income is operating income excluding share-based compensation expenses. Non-GAAP general
and administrative expenses is a non-GAAP financial measure, which is defined as general and administrative expenses excluding share-based
compensation expenses. Non-GAAP operating margin is non-GAAP operating income as a percentage of revenues. Non-GAAP net income attributable
to CLPS Incorporation’s shareholders is net income attributable to CLPS Incorporation’s shareholders excluding share-based compensation
expenses. Basic and diluted non-GAAP net income per share is non-GAAP net income attributable to common shareholders divided by weighted
average number of shares used in the calculation of basic and diluted net income per share. The Company believes that separate analysis
and exclusion of the non-cash impact of share-based compensation expenses clarity to the constituent parts of its performance. The Company
reviews these non-GAAP financial measures together with GAAP financial measures to obtain a better understanding of its operating performance.
It uses the non-GAAP financial measure for planning, forecasting and measuring results against the forecast. The Company believes that
non-GAAP financial measure is useful supplemental information for investors and analysts to assess its operating performance without the
effect of non-cash share-based compensation expenses, which have been and will continue to be significant recurring expenses in its business.
However, the use of non-GAAP financial measures has material limitations as an analytical tool. One of the limitations of using non-GAAP
financial measures is that they do not include all items that impact the Company’s net income for the period. In addition, because non-GAAP
financial measures are not measured in the same manner by all companies, they may not be comparable to other similar titled measures used
by other companies. In light of the foregoing limitations, you should not consider non-GAAP financial measure in isolation from or as
an alternative to the financial measure prepared in accordance with U.S. GAAP.
The presentation of these non-GAAP financial measures
is not intended to be considered in isolation from, or as a substitute for, the financial information prepared and presented in accordance
with U.S. GAAP. The Company encourages investors to carefully consider its results under GAAP, as well as its supplemental non-GAAP
information and the reconciliation between these presentations, to more fully understand its business. For more information on these non-GAAP
financial measures, please see the table captioned “Unaudited Reconciliations of Non-GAAP and GAAP Results” near the end of
this release.
Contact:
CLPS Incorporation
Rhon Galicha
Investor Relations Office
Phone: +86-182-2192-5378
Email: ir@clpsglobal.com
| 1 |
Non-GAAP operating expenses
is a non-GAAP financial measure, which is defined as operating expenses excluding share-based compensation expenses. Please refer to
the section titled “Unaudited Reconciliation of Non-GAAP and GAAP Results” for details. |
| 2 |
Non-GAAP selling and marketing expenses is a non-GAAP financial measure, which is defined as selling and marketing expenses excluding share-based compensation expenses. Please refer to the section titled “Unaudited Reconciliation of Non-GAAP and GAAP Results” for details. |
| 3 |
Non-GAAP general and administrative expenses is a non-GAAP financial measure, which is defined as general and administrative expenses excluding share-based compensation expenses. Please refer to the section titled “Unaudited Reconciliation of Non-GAAP and GAAP Results” for details. |
| 4 |
Non-GAAP net income is a non-GAAP financial measure, which is defined as net income excluding share-based compensation expenses. Please refer to the section titled “Unaudited Reconciliation of Non-GAAP and GAAP Results” for details. |
| 5 |
Non-GAAP net income attributable to CLPS Incorporation’s shareholders is a non-GAAP financial measure, which is defined as net income attributable to CLPS Incorporation’s shareholders excluding share-based compensation expenses. Please refer to the section titled “Unaudited Reconciliation of Non-GAAP and GAAP Results” for details. |
CLPS
INCORPORATION
CONDENSED
CONSOLIDATED BALANCE SHEETS
(Amounts in U.S. dollars (“$”),
except for number of shares)
| | |
As of | |
| | |
December 31, 2023 (Unaudited) | | |
June 30, 2023 (Audited) | |
| ASSETS | |
| | |
| |
| Current assets: | |
| | |
| |
| Cash and cash equivalents | |
$ | 35,108,870 | | |
$ | 22,214,029 | |
| Restricted cash | |
| 89,539 | | |
| 87,604 | |
| Accounts receivable, net | |
| 39,092,817 | | |
| 48,515,467 | |
| Prepayments, deposits and other assets, net | |
| 3,279,971 | | |
| 1,665,736 | |
| Amounts due from related parties | |
| 465,582 | | |
| 391,271 | |
| Total Current Assets | |
$ | 78,036,779 | | |
$ | 72,874,107 | |
| Non-Current assets: | |
| | | |
| | |
| Property and equipment, net | |
| 21,404,190 | | |
| 20,112,305 | |
| Intangible assets, net | |
| 689,783 | | |
| 726,175 | |
| Operating lease right-of-use assets | |
| 3,006,854 | | |
| 815,324 | |
| Long-term investments | |
| 612,843 | | |
| 456,598 | |
| Prepayments, deposits and other assets, net | |
| 1,614,426 | | |
| 252,656 | |
| Amounts due from related parties | |
| 422,541 | | |
| - | |
| Deferred tax assets, net | |
| 115,975 | | |
| 81,899 | |
| Total Assets | |
$ | 105,903,391 | | |
$ | 95,319,064 | |
| | |
| | | |
| | |
| LIABILITIES AND SHAREHOLDERS’ EQUITY | |
| | | |
| | |
| Current liabilities: | |
| | | |
| | |
| Bank loans | |
$ | 15,699,530 | | |
$ | 10,554,617 | |
| Accounts payable | |
| 925,425 | | |
| 690,035 | |
| Accrued expenses and other current liabilities | |
| 379,474 | | |
| 324,021 | |
| Tax payables | |
| 1,860,960 | | |
| 2,503,375 | |
| Contract liabilities | |
| 1,189,953 | | |
| 918,470 | |
| Salaries and benefits payable | |
| 13,228,752 | | |
| 10,586,239 | |
| Operating lease liabilities | |
| 1,230,907 | | |
| 712,302 | |
| Amount due to related parties | |
| 25,344 | | |
| 24,889 | |
| Total Current Liabilities | |
$ | 34,540,345 | | |
$ | 26,313,948 | |
| Non-Current liabilities: | |
| | | |
| | |
| Operating lease liabilities | |
| 1,906,298 | | |
| 104,114 | |
| Deferred tax liabilities | |
| 111,057 | | |
| 185,382 | |
| Unrecognized tax benefit | |
| 2,843,667 | | |
| 2,320,918 | |
| Other non-current liabilities | |
| 904,793 | | |
| 885,901 | |
| TOTAL LIABILITIES | |
$ | 40,306,160 | | |
$ | 29,810,263 | |
| Commitments and Contingencies | |
| | | |
| | |
| | |
| | | |
| | |
| Shareholders’ Equity | |
| | | |
| | |
| Common stock, $0.0001 par value, 100,000,000 shares authorized; 25,616,056 shares issued and outstanding as of December 31, 2023; 23,650,122 shares issued and outstanding as of June 30, 2023 | |
| 2,562 | | |
| 2,365 | |
| Additional paid-in capital | |
| 60,914,080 | | |
| 58,183,383 | |
| Statutory reserves | |
| 5,517,142 | | |
| 5,356,828 | |
| Retained earnings | |
| 826,631 | | |
| 5,029,021 | |
| Accumulated other comprehensive losses | |
| (3,116,935 | ) | |
| (3,990,594 | ) |
| | |
| | | |
| | |
| Total CLPS Incorporation’s Shareholders’ Equity | |
| 64,143,480 | | |
| 64,581,003 | |
| | |
| | | |
| | |
| Noncontrolling Interests | |
| 1,453,751 | | |
| 927,798 | |
| | |
| | | |
| | |
| Total Shareholders’ Equity | |
| 65,597,231 | | |
| 65,508,801 | |
| | |
| | | |
| | |
| Total Liabilities and Shareholders’ Equity | |
$ | 105,903,391 | | |
$ | 95,319,064 | |
CLPS
INCORPORATION
UNAUDITED CONDENSED CONSOLIDATED statements
of INCOME
AND COMPREHENSIVE INCOME
(Amounts in U.S. dollars (“$”), except
for number of shares)
| | |
For the six months ended December 31, | |
| | |
2023 | | |
2022 | |
| | |
| | |
| |
| Revenues | |
$ | 71,774,201 | | |
$ | 76,760,811 | |
| Less: Cost of revenues (note 1) | |
| (56,024,043 | ) | |
| (58,299,928 | ) |
| Gross profit | |
| 15,750,158 | | |
| 18,460,883 | |
| | |
| | | |
| | |
| Operating income (expenses): | |
| | | |
| | |
| Selling and marketing expenses (note 1) | |
| 2,724,226 | | |
| 2,684,075 | |
| Research and development expenses | |
| 3,194,918 | | |
| 4,359,214 | |
| General and administrative expenses (note 1) | |
| 11,184,626 | | |
| 10,694,588 | |
| Subsidies and other operating income | |
| (437,598 | ) | |
| (620,702 | ) |
| Total operating expenses | |
| 16,666,172 | | |
| 17,117,175 | |
| (Loss) income from operations | |
| (916,014 | ) | |
| 1,343,708 | |
| Other income | |
| 308,017 | | |
| 399,917 | |
| Other expenses | |
| (198,043 | ) | |
| (183,695 | ) |
| (Loss) income before income tax and share of income (loss) in equity investees | |
| (806,040 | ) | |
| 1,559,930 | |
| Provision for income taxes | |
| 337,563 | | |
| 185,196 | |
| (Loss)
income before share of income in equity investees | |
| (1,143,603) | | |
| 1,374,734 | |
| Share of income in equity investees, net of tax | |
| 150,148 | | |
| 22,577 | |
| Net (loss) income | |
| (993,455) | | |
| 1,397,311 | |
| Less: Net income attributable to noncontrolling interests | |
| 494,080 | | |
| 129,881 | |
| Net (loss)
income attributable to CLPS Incorporation’s shareholders | |
$ | (1,487,535 | ) | |
$ | 1,267,430 | |
| | |
| | | |
| | |
| Other comprehensive income (loss) | |
| | | |
| | |
| | |
| | | |
| | |
| Foreign currency translation income (loss) | |
$ | 905,532 | | |
$ | (746,569 | ) |
| Less: foreign currency translation income (loss) attributable to noncontrolling interest | |
| 31,873 | | |
| (35,064 | ) |
| Other comprehensive income (loss) attributable to CLPS Incorporation’s shareholders | |
$ | 873,659 | | |
$ | (711,505 | ) |
| | |
| | | |
| | |
| Comprehensive (loss) income attributable to | |
| | | |
| | |
| CLPS Incorporation’s shareholders | |
$ | (613,876 | ) | |
$ | 555,925 | |
| Comprehensive income attributable to noncontrolling interests | |
| 525,953 | | |
| 94,817 | |
| Comprehensive
(loss) income | |
$ | (87,923 | ) | |
$ | 650,742 | |
| | |
| | | |
| | |
| Basic (loss) earnings per common share | |
$ | (0.06 | ) | |
$ | 0.05 | |
| Weighted average number of share outstanding – basic | |
| 24,814,349 | | |
| 23,626,122 | |
| Diluted (loss) earnings per common share | |
$ | (0.06 | ) | |
$ | 0.05 | |
| Weighted average number of share outstanding – diluted | |
| 24,814,349 | | |
| 23,643,457 | |
Note:
| (1) | Includes share-based compensation expenses as follows: |
| Cost of revenues | |
| 5,809 | | |
| 11,071 | |
| Selling and marketing expenses | |
| 192,947 | | |
| 60,091 | |
| General and administrative expenses | |
| 2,532,137 | | |
| 1,871,910 | |
| | |
| 2,730,893 | | |
| 1,943,072 | |
CLPS
INCORPORATION
UNAUDITED RECONCILIATION OF NON-GAAP AND GAAP
RESULTS
(Amounts in U.S. dollars (“$”), except
for number of shares)
| | |
For the six months ended December 31, | |
| | |
2023 | | |
2022 | |
| | |
| | |
| |
| Cost of revenues | |
$ | (56,024,043 | ) | |
$ | (58,299,928 | ) |
| Less: share-based compensation expenses | |
| (5,809 | ) | |
| (11,071 | ) |
| Non-GAAP cost of revenues | |
$ | (56,018,234 | ) | |
$ | (58,288,857 | ) |
| | |
| | | |
| | |
| Selling and marketing expenses | |
$ | (2,724,226 | ) | |
$ | (2,684,075 | ) |
| Less: share-based compensation expenses | |
| (192,947 | ) | |
| (60,091 | ) |
| | |
| | | |
| | |
| Non-GAAP selling and marketing expenses | |
$ | (2,531,279 | ) | |
$ | (2,623,984 | ) |
| | |
| | | |
| | |
| General and administrative expenses | |
$ | (11,184,626 | ) | |
$ | (10,694,588 | ) |
| Less: share-based compensation expenses | |
| (2,532,137 | ) | |
| (1,871,910 | ) |
| Non-GAAP general and administrative expenses | |
$ | (8,652,489 | ) | |
$ | (8,822,678 | ) |
| | |
| | | |
| | |
| Operating (loss) income | |
$ | (916,014 | ) | |
$ | 1,343,708 | |
| Add: share-based compensation expenses | |
| 2,730,893 | | |
| 1,943,072 | |
| Non-GAAP operating income | |
$ | 1,814,879 | | |
$ | 3,286,780 | |
| | |
| | | |
| | |
| Operating Margin | |
| (1.3 | )% | |
| 1.8 | % |
| Add: share-based compensation expenses | |
| 3.8 | % | |
| 2.5 | % |
| Non-GAAP operating margin | |
| 2.5 | % | |
| 4.3 | % |
| | |
| | | |
| | |
| Net (loss) income | |
$ | (993,455 | ) | |
$ | 1,397,311 | |
| Add: share-based compensation expenses | |
| 2,730,893 | | |
| 1,943,072 | |
| Non-GAAP net income | |
$ | 1,737,438 | | |
$ | 3,340,383 | |
| | |
| | | |
| | |
| Net (loss) income attributable to CLPS Incorporation’s shareholders | |
$ | (1,487,535 | ) | |
$ | 1,267,430 | |
| Add: share-based compensation expenses | |
| 2,730,893 | | |
| 1,943,072 | |
| Non-GAAP net income attributable to CLPS Incorporation’s shareholders | |
$ | 1,243,358 | | |
$ | 3,210,502 | |
| | |
| | | |
| | |
| Weighted average number of share outstanding used in computing GAAP and non-GAAP basic earnings | |
| 24,814,349 | | |
| 23,626,122 | |
| GAAP basic (loss) earnings per common share | |
$ | (0.06 | ) | |
$ | 0.05 | |
| Add: share-based compensation expenses | |
| 0.11 | | |
| 0.09 | |
| Non-GAAP basic earnings per common share | |
$ | 0.05 | | |
$ | 0.14 | |
| | |
| | | |
| | |
| Weighted average number of share outstanding used in computing GAAP diluted (loss) earnings | |
| 24,814,349 | | |
| 23,643,457 | |
| Weighted average number of share outstanding used in computing non-GAAP diluted earnings | |
| 24,814,477 | | |
| 23,643,457 | |
| | |
| | | |
| | |
| GAAP diluted (loss) earnings per common share | |
$ | (0.06 | ) | |
$ | 0.05 | |
| Add: share-based compensation expenses | |
| 0.11 | | |
| 0.09 | |
| Non-GAAP diluted earnings per common share | |
$ | 0.05 | | |
$ | 0.14 | |
10
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