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 November 2023
Commission File Number: 001-40145
Jowell Global Ltd.
2nd Floor, No. 285 Jiangpu Road
Yangpu District, Shanghai
China 200082
(Address of principal executive office)
Indicate by check mark whether the registrant
files or will file annual reports under cover of Form 20-F or Form 40-F:
Form 20-F ☒ Form 40-F ☐
SIGNATURES
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.
|
Jowell Global Ltd. |
|
|
Date: November 24, 2023 |
By: |
/s/ Haiting Li |
|
Name: |
Haiting Li |
|
Title: |
Chief Executive Officer |
Exhibit Index
2
Exhibit 99.1
Jowell Global Ltd. Announces First Half 2023
Unaudited Financial Results
-- First Half Revenue of $84.4 million, down
15.9% year-over-year --
-- First Half GMV of $115.5 million, down
20.6% year-over-year --
Shanghai, China, November 24, 2023 (PRNewswire)
-- Jowell Global Ltd. (“Jowell” or the “Company”) (NASDAQ: JWEL), one of the leading cosmetics, health and nutritional
supplements, and household products e-commerce platforms in China, today announced its unaudited financial results for the six months
ended June 30, 2023.
First Half 2023 Financial and Operational Highlights
● | Total revenues were $84.4 million, a decrease of 15.9% from $100.4
million in the same period of 2022. |
● | Net loss was $7.1 million, a decrease of 11.4% compared to a net loss
of $8.0 million in the same period of 2022. |
● | Total GMV (Gross Merchandise Value) transacted in our online shopping
mall was $115.5 million, a decrease of 20.6% from $145.5 million in the same period of 2022. |
● | Total VIP members1
as of June 30, 2023 were approximately 2.5 million, an increase of 3.7% compared to approximately 2.4 million as of June 30, 2022. |
● | Total LHH stores2
as of June 30, 2023 were 26,528, an increase of 1.2% compared to 26,224 as of June 30, 2022. |
1 | “Total VIP members refers to the total number of members
registered on Jowell’s platform as of June 30, 2023. |
2 | LHH stores: the brand name of “Love Home Store”.
Authorized retailers may operate as independent stores or store-in-shop (an integrated store), selling products they purchased through
Jowell’s online platform LHH Mall under their retailer accounts which provides them with major discounts. |
Mr. Haiting Li, Chief Executive Officer and Chairman
of the Company, commented:
“Although we experienced a challenging first
half of 2023, we believe that we continue to be well positioned to weather what has been a challenging and changing consumer demands.
Our business operates in four distinct distribution channels that covers the wide range of consumer engagements and we are confident that
this diversification will enable us to meet the current consumer needs for household products as well as what we believe will be pent-up
consumer demand when a more vibrant economic cycle emerges. We are particularly buoyed by our select partnerships with third-party merchants
and our online presence which helped to mitigate what could have been a further decline resulting from the economic consequences of the
pandemic.”
“We plan upon enacting a strategic plan
across all of our distribution platforms that we believe will have the synergistic effect of boosting revenue for all of our product lines.
As an example, in this changing economic environment, our household goods segment showed strong growth and became our biggest product
revenue producer and was up 56% for the first six months of the year as compared to the year-ago period. We are intent upon deploying
creative and highly engaging promotional and marketing strategies to the products with good value and build confidence of our customers
that they can always find what they need on our platform in different economic environments and to sustain their brand loyalty over the
long term.” Mr. Li continued.
“We believe that our consumer brands are
among the best available and are bullish on the resurgence of consumer retail spending in China. We remain confident about our execution
capabilities across all of our platforms as well as our ability to create long-term value for our shareholders.” Mr. Li concluded.
First Half 2023 Financial Results
Total Revenues
Total revenues for the first half 2023 were
$84.4 million, representing a decrease of 15.9% from $100.4 million in the same period of 2022, primarily due to a decrease in the
weighted average unit price of our products sold and a decrease in our sales volume. Our weighted average unit price was $4.95 per
unit for the first half of 2023, which represented a decrease of 12.5% as compared to $5.66 per unit for the same period of 2022.
Health and nutritional supplements products led the decline in weighted average unit pricing, with a period-over-period decrease of
68.8% due to product mix change. The decrease in the volume of products sold was mainly due to the overall market downturn which resulted in a decline in
consumer spending as compared to the same period of 2022. The volume of Health and nutritional supplements declined the most, with a
period-over-period decrease of 15.4%.
Our household products revenue for the first
half 2023 increased by about $17.4 million or 56.1% as compared to the same period of 2022. The increase in home products revenue
was mainly due to the increase in sales of premium brand home appliances and kitchenware products. We have stepped up our promotions
on these items during holidays in the first half of 2023 in an attempt to offer more promotional discounts in response to the
overall market downturn.
| |
First Half Ended June 30 | | |
% | |
| |
2023 | | |
2022 | | |
change | |
Revenues (in thousands, except for percentages) | |
US$ | | |
US$ | | |
YoY* | |
Product sales | |
| |
· Cosmetic products | |
| 29,495.5 | | |
| 46,135.7 | | |
| -36.1 | % |
· Health and nutritional supplements | |
| 6,094.2 | | |
| 23,048.1 | | |
| -73.6 | % |
· Household products | |
| 48,473.1 | | |
| 31,053.2 | | |
| 56.1 | % |
· Others | |
| 343.4 | | |
| 170.0 | | |
| 102.0 | % |
Total | |
| 84,406.2 | | |
| 100,407.0 | | |
| -15.9 | % |
Total cost and operating expenses were
$91.0 million in the first half of 2023, a decrease of 16.5% from $108.9 million in the same period of 2022.
|
● |
Costs
of revenues were $83.8 million in the first half of 2023, a decrease
of 13.2% from $96.5 million in the same period of 2022, which including a decrease of $16.3 million in cosmetic products and $16.1 million
in health and nutritional supplements and partially offset by an increase of $19.7 million in household
products. The decrease is attributable to a decrease in the weighted average unit cost and a decrease in sales volume of cosmetic
products and health and nutritional supplements. The weighted average unit cost of cosmetic products decreased from $4.45 in the first
half of 2022 to $2.94 in the first half of 2023, and weighted average unit cost of health and nutritional supplements decreased from
$14.05 in the first half of 2022 to $4.42 in the first half of 2023, a decrease of 68.5%, both decreases mainly due to reduced customers
discretionary spendings on premium brands and their preference to low cost and low price as well as necessary household products as compared
to the same period of 2022. The health and nutritional supplements sales volume declined the most, with a decrease of 15.4%.
Cost
of revenues of household products for the first half 2023 increased about 67.0% as
compared to the same period of 2022. The increase was primarily due to a 71.0% increase in
weighted average unit cost. The increase in weighted average unit costs for our household products is mainly because we offered and
sold more higher unit price products in the first half 2023 than the same period of 2022. |
| ● | Fulfillment expenses primarily consist of costs related to order fulfillment,
including expenses paid for order preparing, packaging, outbound freight, and physical storage. Fulfillment expenses were $1.9 million
in the first half of 2023, an increase of 10.9% from the $1.8 million in the same period of 2022. Fulfillment expenses as a percentage
of total revenues were 2.3% in the first half of 2023, up from 1.7% in the first half of 2022. The increase was mainly due to an increase
in warehouse rent by 78.6% or $0.3 million as the Company expanded its temporary storage space for new variety of household products at
the beginning of 2023 to meet the demands of our customers. |
| ● | Marketing expenses primarily consist of targeted
online advertising, and payroll and related expenses for personnel engaged in marketing and selling activities. Marketing expenses were
$3.3 million in the first half of 2023, a decrease of 46.7% from the $6.2 million in the same period of 2022. The decrease was primarily
due to a decrease in our marketing and promotion activities. Marketing expense as percentage of total revenues was 3.9% in the first half
of 2023, down from 6.2% in the same period of 2022. |
| ● | General and administrative expenses mainly consist
of payroll, depreciation, office supplies and upkeep. General expenses and administration expenses were $2.0 million in the first half
of 2023, a decrease of 55.6% from $4.5 million in the same period of 2022. The decrease was primarily due to a $0.9 million decrease in
bad debt expense and $1.0 million decreased in share-based compensation of services provided. General and administration expenses as percentage
of total revenues was 2.3% in the first half of 2023, down from 4.4% in the same period of 2022. |
Operating Loss
Operating loss was $6.6 million, compared with
an operating loss of $8.5 million in the same period of 2022, which was mainly due the overall market downturn, which resulted in a decline
in consumer spending, as mentioned above.
Net Loss
Net loss was $7.1 million, a decrease of 11.4%
compared with net loss of $8.0 million in the same period of 2022, which was mainly due the overall market downturn, which resulted in
a decline in consumer spending, as mentioned above.
Loss per Share
The Company computes earnings (loss) per share
(“EPS”) in accordance with ASC 260, “Earnings per Share” (“ASC 260”). Each of the Company’s
Preferred Share has voting rights equal to two Ordinary Shares of the Company and each Preferred Share is convertible into one Ordinary
Share at any time. Except for voting rights and conversion rights, the Ordinary Shares and the Preferred Shares rank pari passu with one
another and have the same rights, preferences, privileges and restrictions. For the first half ended June 30, 2023 and 2022, respectively,
the Company had no potential ordinary shares outstanding that could potentially dilute EPS in the future.
Cash and Cash Equivalents
For the first half of 2023, the Company reported
a net loss of $7.1 million, a negative operating cash flow of $9.9 million and an accumulated deficit of approximately $21.7 million.
The Company’s principal sources of liquidity are proceeds from its public offering, a private placement and
a registered direct offering. As of June 30, 2023, the Company had cash and restricted cash of approximately $2.0 million, held by
the variable interest entity (VIE) Shanghai Juhao Information Technology Co., Ltd. (“Shanghai Juhao”) with banks and
financial institutions inside China as the Company conducts its operations primarily through the consolidated VIE in China; the Company’s
working capital as of June 30, 2023 was $21.1 million. Due to the uncertainty of the current market environment, management believes
it is necessary to enhance the collection of its outstanding accounts receivable and other receivables, and to be cautious in terms of
its operational decisions and project selections. As of October 31, 2023, approximately $2.9 million, or 66%, of its accounts
receivable balance as of June 30, 2023 were collected, approximately $3.0 million or 100% of its due from affiliate balance as of June
30, 2023 were collected, and approximately $2.1 million or 52% of its advances to supplier balance as of June 30, 2023 were
utilized. In addition, the Company’s Form F-3 registration was declared effective on August 31, 2022, and the Company may also seek
equity financing from outside investors if necessary.
Based on the latest business plan of the Company,
Shanghai Juhao has reduced its promotion efforts and marketing expenditures since the second half of 2022, which reduced the cash used
in operating activities. Management believes that the above-mentioned factors, including cash on hand of approximately
$2.0 million, will provide sufficient liquidity for the Company to meet its future liquidity and capital requirements for at least
the next twelve months.
About Jowell Global Ltd
Jowell Global Ltd.(the “Company”)
is one of the leading cosmetics, health and nutritional supplements and household products e-commerce platforms in China. We offer our
own brand products to customers and also sell and distribute health and nutritional supplements, cosmetic products and certain household
products from other companies on our platform. In addition, we allow third parties to open their own stores on our platform for a service
fee based upon sale revenues generated from their online stores and we provide them with our unique and valuable information about market
needs, enabling them to better manage their sales effort, as well as an effective platform to promote their brands. The Company also sells
its products through authorized retail stores all across China, which operate under the brand names of “Love Home Store” or
“LHH Store” and “Best Choice Store”. For more information, please visit http://ir.1juhao.com/.
Exchange Rate
The Company’s financial information is presented
in U.S. dollars (“USD”). The functional currency of the Company is the Chinese Yuan, Renminbi (“RMB”), the currency
of the PRC. Any transactions which are denominated in currencies other than RMB are translated into RMB at the exchange rate quoted by
the People’s Bank of China prevailing at the dates of the transactions, and exchange gains and losses are included in the statements
of operations as foreign currency transaction gain or loss. The consolidated financial statements of the Company have been translated
into U.S. dollars in accordance with ASC 830, “Foreign Currency Matters”.
This press release contains translations of certain
RMB amounts into U.S. dollars (“USD” or “$”) at specified rates solely for the convenience of the reader. The
exchange rates in effect as of June 30, 2023 and December 31, 2022 were RMB1 for $0.1378 and $0.1450, respectively. The average exchange
rates for the six months ended June 30, 2023 and 2022 were RMB1 for $0.1444 and $0.1543, respectively.
Safe Harbor Statement
This press release contains forward-looking statements.
These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. Statements
that are not historical facts, including statements about the Company’s beliefs and expectations, are forward-looking statements. Forward-looking
statements involve inherent risks and uncertainties, and a number of factors could cause actual results to differ materially from those
contained in any forward-looking statement. In some cases, forward-looking statements can be identified by words or phrases such as “may,”
“will,” “expect,” “anticipate,” “target,” “aim,” “estimate,” “intend,”
“plan,” “believe,” “potential,” “continue,” “is/are likely to” or other similar expressions.
The Company may also make written or oral forward-looking statements in its reports filed with, or furnished to, the U.S. Securities and
Exchange Commission, in its annual reports to shareholders, in press releases and other written materials and in oral statements made
by its officers, directors or employees to third parties. These statements are subject to uncertainties and risks including, but not limited
to, the following: the Company’s goals and strategies; the Company’s future business development; financial condition and
results of operations; product and service demand and acceptance; reputation and brand; the impact of competition and pricing; changes
in technology; government regulations; fluctuations in general economic and business conditions in China and assumptions underlying or
related to any of the foregoing and other risks contained in reports filed by the Company with the SEC. For these reasons, among others,
investors are cautioned not to place undue reliance upon any forward-looking statements in this press release. Additional factors are
discussed in the Company’s filings with the SEC, which are available for review at www.sec.gov. The Company undertakes no obligation
to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof.
For investor and media inquiries, please contact:
Jowell Global Ltd.
Ms. Jessie Zhao
Email: IR@1juhao.com
Jowell Global Ltd.
CONDENSED CONSOLIDATED BALANCE
SHEETS
| |
June 30, | | |
December 31, | |
| |
2023 | | |
2022 | |
| |
(Unaudited) | | |
| |
ASSETS | |
| | |
| |
Current Assets: | |
| | |
| |
Cash | |
$ | 1,983,830 | | |
$ | 13,718,102 | |
Restricted cash | |
| - | | |
| 3,000,000 | |
Accounts receivable, net | |
| 4,308,925 | | |
| 6,208,606 | |
Accounts receivable - related parties | |
| 31,098 | | |
| 285,530 | |
Advance to suppliers | |
| 3,782,626 | | |
| 21,742,495 | |
Advance to suppliers - related parties | |
| 172,528 | | |
| - | |
Inventories | |
| 17,179,507 | | |
| 13,278,205 | |
Due from affiliate | |
| 3,032,141 | | |
| - | |
Prepaid expenses and other current assets | |
| 1,854,645 | | |
| 1,668,775 | |
Total current assets | |
| 32,345,300 | | |
| 59,901,713 | |
| |
| | | |
| | |
Long-term investment | |
| 3,774,477 | | |
| 4,454,993 | |
Property and equipment, net | |
| 808,801 | | |
| 1,019,720 | |
Intangible assets, net | |
| 718,830 | | |
| 855,112 | |
Right of use lease assets, net | |
| 2,601,351 | | |
| 3,389,536 | |
Other non-current asset | |
| 874,429 | | |
| 919,720 | |
Deferred tax assets | |
| 629,108 | | |
| 661,692 | |
Total Assets | |
$ | 41,752,296 | | |
$ | 71,202,486 | |
| |
| | | |
| | |
LIABILITIES AND STOCKHOLDERS’ EQUITY | |
| | | |
| | |
Current Liabilities: | |
| | | |
| | |
Short-term loan | |
$ | 620,211 | | |
$ | 2,464,375 | |
Accounts payable | |
| 5,793,828 | | |
| 6,331,437 | |
Accounts payable - related parties | |
| 277,486 | | |
| 1,806,352 | |
Deferred revenue | |
| 2,372,970 | | |
| 18,395,244 | |
Deferred revenue - related parties | |
| 81,688 | | |
| 74,088 | |
Current portion of operating lease liabilities | |
| 1,012,176 | | |
| 1,179,237 | |
Accrued expenses and other liabilities | |
| 640,477 | | |
| 1,105,241 | |
Due to related parties | |
| 377,856 | | |
| 178,816 | |
Taxes payable | |
| 109,817 | | |
| 102,359 | |
Total current liabilities | |
| 11,286,509 | | |
| 31,637,149 | |
| |
| | | |
| | |
Non-current portion of operating lease liabilities | |
| 1,484,085 | | |
| 2,099,430 | |
Total liabilities | |
| 12,770,594 | | |
| 33,736,579 | |
| |
| | | |
| | |
Commitments and contingencies | |
| | | |
| | |
| |
| | | |
| | |
Equity | |
| | | |
| | |
Common stock, $0.0016 par value, 450,000,000 shares authorized, 2,135,879
and 2,132,785 issued and outstanding at June 30, 2023 and December 31, 2022, respectively * | |
| 3,418 | | |
| 3,413 | |
Preferred stock, $0.0016 par value, 50,000,000 shares authorized, 46,875
issued and outstanding at June 30, 2023 and December 31, 2022, respectively * | |
| 75 | | |
| 75 | |
Additional paid-in capital | |
| 52,687,237 | | |
| 52,557,552 | |
Statutory reserves | |
| 394,541 | | |
| 394,541 | |
Accumulated deficit | |
| (21,662,306 | ) | |
| (14,572,425 | ) |
Accumulated other comprehensive loss | |
| (2,485,202 | ) | |
| (950,720 | ) |
Total Jowell Global Ltd. Stockholders’ Equity | |
| 28,937,763 | | |
| 37,432,436 | |
Noncontrolling interest | |
| 43,939 | | |
| 33,471 | |
Total Equity | |
| 28,981,702 | | |
| 37,465,907 | |
| |
| | | |
| | |
Total Liabilities and Equity | |
$ | 41,752,296 | | |
$ | 71,202,486 | |
* On October 25, 2023, the Company consolidated
its ordinary shares at the ratio of one-for-sixteen (“Share Consolidation”). Immediately following the Share Consolidation,
the Company increased the authorized share capital to $800,000 divided into shares of which (i) 450,000,000 shares are designated as ordinary
shares with a nominal or par value of $0.0016 per share, and (ii) 50,000,000 shares are designated as preferred shares with a nominal
or par value of $0.0016 per share. All shares and per share data for all the periods presented have been retroactively restated.
Jowell Global Ltd.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
AND COMPREHENSIVE LOSS
(Unaudited)
|
|
For the Six Months Ended June 30, |
|
|
|
2023 |
|
|
2022 |
|
Net Revenues |
|
$ |
84,406,244 |
|
|
$ |
100,407,042 |
|
|
|
|
|
|
|
|
|
|
Cost and Operating Expenses: |
|
|
|
|
|
|
|
|
Cost of revenues |
|
|
(83,763,353 |
) |
|
|
(96,499,119 |
) |
Fulfillment expenses |
|
|
(1,942,595 |
) |
|
|
(1,751,330 |
) |
Marketing expenses |
|
|
(3,306,812 |
) |
|
|
(6,209,824 |
) |
General and administrative expenses |
|
|
(1,981,967 |
) |
|
|
(4,463,950 |
) |
Total cost and operating expenses |
|
|
(90,994,727 |
) |
|
|
(108,924,223 |
) |
|
|
|
|
|
|
|
|
|
Loss From Operations |
|
|
(6,588,483 |
) |
|
|
(8,517,181 |
) |
|
|
|
|
|
|
|
|
|
Other Income (Expenses), net |
|
|
|
|
|
|
|
|
Interest expense |
|
|
(39,388 |
) |
|
|
(60,013 |
) |
Investment income (loss) |
|
|
(483,214 |
) |
|
|
172,416 |
|
Other income (expense), net |
|
|
(2,118 |
) |
|
|
58,780 |
|
Other Income (expenses), net |
|
|
(524,720 |
) |
|
|
171,183 |
|
|
|
|
|
|
|
|
|
|
Loss Before Income Taxes |
|
|
(7,113,203 |
) |
|
|
(8,345,998 |
) |
|
|
|
|
|
|
|
|
|
Provision (Benefit) for Income Taxes |
|
|
2,761 |
|
|
|
(311,028 |
) |
Net Loss |
|
|
(7,115,964 |
) |
|
|
(8,034,970 |
) |
|
|
|
|
|
|
|
|
|
Less: net loss attributable to noncontrolling interest |
|
|
(26,083 |
) |
|
|
- |
|
|
|
|
|
|
|
|
|
|
Net Loss Attributable to Ordinary Shareholders of Jowell Global Ltd. |
|
$ |
(7,089,881 |
) |
|
$ |
(8,034,970 |
) |
|
|
|
|
|
|
|
|
|
Loss Per share – Basic and Diluted |
|
$ |
(3.33 |
) |
|
$ |
(4.87 |
) |
|
|
|
|
|
|
|
|
|
Weighted Average Shares Outstanding – Basic and diluted* |
|
|
2,135,574 |
|
|
|
1,650,279 |
|
|
|
|
|
|
|
|
|
|
Net Loss |
|
$ |
(7,115,964 |
) |
|
$ |
(8,034,970 |
) |
|
|
|
|
|
|
|
|
|
Other Comprehensive Loss, net of tax |
|
|
|
|
|
|
|
|
Foreign currency translation loss |
|
|
(1,534,036 |
) |
|
|
(1,597,147 |
) |
Total Comprehensive Loss |
|
|
(8,650,000 |
) |
|
|
(9,632,117 |
) |
|
|
|
|
|
|
|
|
|
Less: comprehensive income attributable to non-controlling interest |
|
|
(25,637 |
) |
|
|
- |
|
|
|
|
|
|
|
|
|
|
Comprehensive Loss Attributable to Ordinary Shareholders of Jowell Global Ltd. |
|
$ |
(8,624,363 |
) |
|
$ |
(9,632,117 |
) |
* On October 25, 2023, the Company consolidated
its ordinary shares at the ratio of one-for-sixteen (“Share Consolidation”). Immediately following the Share Consolidation,
the Company increased the authorized share capital to $800,000 divided into shares of which (i) 450,000,000 shares are designated as ordinary
shares with a nominal or par value of $0.0016 per share, and (ii) 50,000,000 shares are designated as preferred shares with a nominal
or par value of $0.0016 per share. All shares and per share data for all the periods presented have been retroactively restated.
Jowell Global Ltd.
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES
IN STOCKHOLDERS’ EQUITY
FOR THE SIX MONTHS ENDED JUNE 30, 2023 AND 2022
(Unaudited)
| |
Common
Stock* | | |
Preferred
Stock* | | |
Additional
Paid-in | | |
Statutory | | |
Retained
Earnings
(Accumulated | | |
Accumulated
Other
Comprehensive | | |
Total
Jowell
Global Ltd.
Stockholders’ | | |
Noncontrolling | | |
Total | |
| |
Shares | | |
Amount | | |
Shares | | |
Amount | | |
Capital | | |
Reserves | | |
deficit) | | |
Income
(loss) | | |
Equity | | |
interest | | |
Equity | |
Balance
at January 1, 2022 | |
| 1,604,873 | | |
| 2,568 | | |
| 46,875 | | |
$ | 75 | | |
| 40,827,231 | | |
$ | 394,541 | | |
| (3,036,045 | ) | |
| 1,495,081 | | |
| 39,683,451 | | |
| | | |
| 39,683,451 | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Private
placements issuance | |
| 326,875 | | |
| 523 | | |
| - | | |
| - | | |
| 6,275,477 | | |
| - | | |
| - | | |
| - | | |
| 6,276,000 | | |
| - | | |
| 6,276,000 | |
Share-based
compensation | |
| 34,390 | | |
| 55 | | |
| - | | |
| - | | |
| 1,157,925 | | |
| - | | |
| - | | |
| - | | |
| 1,157,980 | | |
| - | | |
| 1,157,980 | |
Net
loss for the period | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| (8,034,970 | ) | |
| - | | |
| (8,034,970 | ) | |
| - | | |
| (8,034,970 | ) |
Foreign
currency translation loss | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| (1,597,147 | ) | |
| (1,597,147 | ) | |
| - | | |
| (1,597,147 | ) |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Balance
at June 30, 2022 | |
| 1,966,138 | | |
| 3,146 | | |
| 46,875 | | |
$ | 75 | | |
| 48,260,633 | | |
$ | 394,541 | | |
| (11,071,015 | ) | |
| (102,066 | ) | |
| 37,485,314 | | |
| - | | |
| 37,485,314 | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Balance
at January 1, 2023 | |
| 2,132,785 | | |
| 3,413 | | |
| 46,875 | | |
$ | 75 | | |
| 52,557,552 | | |
$ | 394,541 | | |
| (14,572,425 | ) | |
| (950,720 | ) | |
| 37,432,436 | | |
| 33,471 | | |
| 37,465,907 | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Share-based
compensation | |
| 3,094 | | |
| 5 | | |
| - | | |
| - | | |
| 129,685 | | |
| - | | |
| - | | |
| - | | |
| 129,690 | | |
| - | | |
| 129,690 | |
Capital
contributed by minority shareholder | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| 36,105 | | |
| 36,105 | |
Net
loss for the period | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| (7,089,881 | ) | |
| - | | |
| (7,089,881 | ) | |
| (26,083 | ) | |
| (7,115,964 | ) |
Foreign
currency translation loss | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| (1,534,482 | ) | |
| (1,534,482 | ) | |
| 446 | | |
| (1,534,036 | ) |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Balance
at June 30, 2023 | |
| 2,135,879 | | |
| 3,418 | | |
| 46,875 | | |
$ | 75 | | |
| 52,687,237 | | |
$ | 394,541 | | |
| (21,662,306 | ) | |
| (2,485,202 | ) | |
| 28,937,763 | | |
| 43,939 | | |
| 28,981,702 | |
* On October 25, 2023, the Company consolidated its
ordinary shares at the ratio of one-for-sixteen (“Share Consolidation”). Immediately following the Share Consolidation, the
Company increased the authorized share capital to $800,000 divided into shares of which (i) 450,000,000 shares are designated as ordinary
shares with a nominal or par value of $0.0016 per share, and (ii) 50,000,000 shares are designated as preferred shares with a nominal
or par value of $0.0016 per share. All shares and per share data for all the periods presented have been retroactively restated.
Jowell Global Ltd.
CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS
(Unaudited)
| |
For the Six Months
Ended June 30, | |
| |
2023 | | |
2022 | |
Cash flows from operating activities: | |
| | |
| |
Net loss | |
$ | (7,115,964 | ) | |
$ | (8,034,970 | ) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | |
| | | |
| | |
Depreciation and amortization | |
| 202,822 | | |
| 195,420 | |
Loss (income) from long-term investment | |
| 483,214 | | |
| (172,416 | ) |
Credit loss for doubtful accounts | |
| - | | |
| 906,484 | |
Amortization of operating lease right-of-use assets | |
| 552,702 | | |
| 663,044 | |
Inventory reserve | |
| - | | |
| 337,630 | |
Deferred income taxes | |
| - | | |
| (311,028 | ) |
Share-based compensation | |
| 129,690 | | |
| 1,157,980 | |
Changes in operating assets and liabilities: | |
| | | |
| | |
Accounts receivables | |
| 1,670,275 | | |
| (442,472 | ) |
Accounts receivable - related Parties | |
| 251,882 | | |
| 193,809 | |
Inventories | |
| (4,785,784 | ) | |
| (1,731,202 | ) |
Advance to suppliers | |
| 17,698,012 | | |
| (1,155,484 | ) |
Advance to suppliers - related parties | |
| (180,791 | ) | |
| (10,228,261 | ) |
Prepaid expenses and other current assets | |
| (280,888 | ) | |
| 36,012 | |
Accounts payables | |
| (236,633 | ) | |
| 2,633,562 | |
Accounts payables - related parties | |
| (1,508,872 | ) | |
| (2,186,368 | ) |
Deferred revenue | |
| (15,828,565 | ) | |
| 2,107,320 | |
Operating lease liabilities | |
| (552,367 | ) | |
| (678,538 | ) |
Taxes payable | |
| 13,098 | | |
| 330,050 | |
Accrued expenses and other liabilities | |
| (429,988 | ) | |
| 192,449 | |
Net cash used in operating activities | |
| (9,918,157 | ) | |
| (16,186,979 | ) |
| |
| | | |
| | |
Cash flows from investing activities: | |
| | | |
| | |
Due from affiliate | |
| (3,177,354 | ) | |
| - | |
Purchase of intangible assets | |
| (4,950 | ) | |
| - | |
Disposal of equipment | |
| 81,469 | | |
| - | |
Purchase of equipment | |
| (12,260 | ) | |
| (686,560 | ) |
Net cash used in investing activities | |
| (3,113,095 | ) | |
| (686,560 | ) |
| |
| | | |
| | |
Cash flows from financing activities: | |
| | | |
| | |
Private placements issuance | |
| - | | |
| 6,276,000 | |
Proceeds from short-term loans | |
| 649,913 | | |
| - | |
Repayment of short-term loans | |
| (2,455,228 | ) | |
| - | |
Proceeds from related party loans | |
| 205,846 | | |
| 48,372 | |
Net cash provided by (used in) financing activities | |
| (1,599,469 | ) | |
| 6,324,372 | |
| |
| | | |
| | |
Effect of exchange rate changes on cash and restricted cash | |
| (103,551 | ) | |
| (405,752 | ) |
| |
| | | |
| | |
Net decrease in cash and restricted cash | |
| (14,734,272 | ) | |
| (10,954,919 | ) |
| |
| | | |
| | |
Cash and restricted cash, beginning of period | |
| 16,718,102 | | |
| 21,249,727 | |
| |
| | | |
| | |
Cash and restricted cash, end of period | |
$ | 1,983,830 | | |
$ | 10,294,808 | |
Reconciliation
of cash and restricted cash to the consolidated balance sheets | |
| | | |
| | |
Cash | |
| 1,983,830 | | |
| 7,294,808 | |
Restricted cash | |
| - | | |
| 3,000,000 | |
| |
| | | |
| | |
Total cash and restricted cash | |
$ | 1,983,830 | | |
$ | 10,294,808 | |
| |
| | | |
| | |
Supplemental disclosure information: | |
| | | |
| | |
Cash paid for income tax | |
$ | 2,761 | | |
$ | - | |
Cash paid for interest | |
$ | 39,388 | | |
$ | 60,013 | |
| |
| | | |
| | |
Supplemental non-cash activities: | |
| | | |
| | |
Cash paid in prior year for purchase of intangible assets | |
$ | - | | |
$ | 794,010 | |
Right of use assets obtained in exchange for operating lease obligations | |
$ | (98,320 | ) | |
$ | 35,341 | |
9
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