Cheetah Net Supply Chain Service Inc 10-Q for FY2023 Q2

Cheetah Net Supply Chain Service Inc. (CTNT)

10-Q 2023-09-05 For: 2023-06-30

Added on April 06, 2026

About this 10-Q

Cheetah Net Supply Chain Service Inc filed this 10-Q on September 5, 2023, covering the quarter ended June 30, 2023 (FY2023 Q2).

Headline figures

Quarter ended June 30, 2023, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $12.22M; down 41.2% from $20.79M a year earlier
Net income: $155.75K; up 90.4% from net income of $81.81K a year earlier
Diluted EPS: $0.01; unchanged from $0.01 a year earlier

Search and read filings like this one from Claude or ChatGPT with the SEC filings MCP server →


North Carolina		81-3509120
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)


Title of each Class	Trading Symbol(s)	Name of each exchange on which registered
Class A common stock, par value $0.0001 per share	CTNT	The Nasdaq Stock Market LLC


Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☒	Smaller reporting company	☒
		Emerging growth company	☒


Part I	Financial Information	1

Item 1	Financial Statements	1

	Unaudited Condensed Consolidated Balance Sheets as of June 30, 2023 and December 31, 2022	1

	Unaudited Condensed Consolidated Statements of Operations for the Three and Six Months Ended June 30, 2023 and 2022	2

	Unaudited Condensed Consolidated Statements of Changes in Stockholders’ Equity for the Three and Six Months Ended June 30, 2023 and 2022	3

	Unaudited Condensed Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2023 and 2022	4

	Notes to Unaudited Condensed Consolidated Financial Statements	5

Item 2	Management’s Discussion and Analysis of Financial Condition and Results of Operations	21

Item 3	Quantitative and Qualitative Disclosures about Market Risk	33

Item 4	Controls and Procedures	34

Part II	Other Information	35

Item 1	Legal Proceedings	35

Item 1A	Risk Factors	35

Item 2	Unregistered Sales of Equity Securities and Use of Proceeds	35

Item 3	Defaults Upon Senior Securities	35

Item 4	Mine Safety Disclosures	35

Item 5	Other Information	35

Item 6	Exhibits	36

Signatures		37


	June 30,		December 31,
	2023		2022
ASSETS
CURRENT ASSETS:
Cash	$	592,126	$	58,381
Accounts receivable		2,146,882		7,086,651
Inventories, net		6,962,926		5,965,935
Other receivables		813,355		900,730
Prepaid expenses and other current assets		318,313		480,828
TOTAL CURRENT ASSETS		10,833,602		14,492,525

Operating lease right-of-use assets		235,249		140,145
Deferred tax assets		75,345		86,734
TOTAL ASSETS	$	11,144,196	$	14,719,404

LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Short-term borrowings	$	86,285	$	86,285
Current portion of long-term borrowings		32,074		31,281
Loans payable from inventory financing		—		4,164,100
Loans payable from letter of credit financing		4,945,617		7,105,873
Loans payable from dealers finance		170,732		41,747
Loans payable from revolving line of credit		1,871,154		—
Due to a related party		28,875		—
Operating lease liabilities, current		62,354		149,458
Other payables and other current liabilities		515,355		616,863
TOTAL CURRENT LIABILITIES		7,712,446		12,195,607

Long-term borrowings, non-current		661,375		678,442
Operating Lease Liabilities, non-current		177,208		—
TOTAL LIABILITIES		8,551,029		12,874,049

COMMITMENTS AND CONTINGENCIES

STOCKHOLDERS’ EQUITY
Common stock, $0.0001 par value, 100,000,000 shares authorized; 16,666,000 shares issued and outstanding, including:
Class A common stock, $0.0001 par value - 91,750,000 shares authorized, 8,416,000 shares issued and outstanding		842		842
Class B common stock, $0.0001 par value - 8,250,000 shares authorized, 8,250,000 shares issued and outstanding		825		825
Additional paid-in capital		3,269,317		3,269,317
Subscription receivable		(1,100,000)		(1,800,000)
Retained earnings		422,183		374,371
TOTAL STOCKHOLDERS’ EQUITY		2,593,167		1,845,355

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	11,144,196	$	14,719,404


	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
REVENUE	$	12,223,026	$	20,788,964	$	22,437,468	$	33,607,035

COST OF REVENUE
Cost of vehicles		10,319,991		18,977,349		18,824,494		30,736,345
Fulfillment expenses		650,666		503,452		1,217,548		1,096,004
Total cost of revenue		10,970,657		19,480,801		20,042,042		31,832,349

GROSS PROFIT		1,252,369		1,308,163		2,395,426		1,774,686

OPERATING EXPENSES
Selling expenses		141,340		36,720		419,123		289,107
General and administrative expenses		565,400		347,302		1,146,470		582,850
Total operating expenses		706,740		384,022		1,565,593		871,957

INCOME FROM OPERATIONS		545,629		924,141		829,833		902,729

OTHER INCOME (EXPENSES)
Interest expense, net		(334,855)		(819,921)		(771,914)		(1,533,109)
Other income, net		1,968		2,134		3,902		4,246
Total other expenses, net		(332,887)		(817,787)		(768,012)		(1,528,863)

INCOME (LOSS) BEFORE INCOME TAX PROVISION		212,742		106,354		61,821		(626,134)

Income tax provision		56,997		24,549		14,009		(153,242)

NET INCOME (LOSS)	$	155,745	$	81,805	$	47,812	$	(472,892)

Earning (loss) per share - basic and diluted	$	0.01	$	0.01	$	0.00	$	(0.03)
Weighted average shares - basic and diluted		16,666,000		15,000,000		16,666,000		15,000,000


	Common Stock*
	Class A			Class B			Additional						Total
	Common			Common			paid-in		Subscription		Retained		Stockholders’
	stock	Amount		stock	Amount		capital		Receivable		Earnings		Equity
Balance, December 31, 2022	8,416,000	$	842	8,250,000	$	825	$	3,269,317	$	(1,800,000)	$	374,371	$	1,845,355

Stock issuance	—		—	—		—		—		700,000		—		700,000
Net loss for the period	—		—	—		—		—		—		(107,933)		(107,933)

Balance, March 31, 2023	8,416,000	$	842	8,250,000	$	825	$	3,269,317	$	(1,100,000)	$	266,438	$	2,437,422

Net income for the period	—		—	—		—		—		—		155,745		155,745

Balance, June 30, 2023	8,416,000	$	842	8,250,000	$	825	$	3,269,317	$	(1,100,000)	$	422,183	$	2,593,167


	Six Months Ended
	June 30,
	2023		2022
Cash flows from operating activities:
Net income (loss)	$	47,812	$	(472,892)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Amortization of operating lease right-of-use assets		95,718		81,391
Inventory reserve recovery		—		(92,811)
Deferred tax provision		11,389		(153,242)
Changes in operating assets and liabilities:
Accounts receivable		4,939,770		(8,037,635)
Inventories		(996,990)		8,938,100
Other receivables		87,375		41,044
Due from a related party		—		10,000
Prepaid expenses and other current assets		162,515		(341,907)
Deferred revenue		—		(1,544,073)
Other payables and other current liabilities		(101,508)		(24,468)
Operating lease liabilities		(100,718)		(71,730)
Net cash provided by (used in) operating activities		4,145,363		(1,668,223)

Cash flows from financing activities:
Proceeds from issuance of common stock under private placement transaction		700,000		—
Proceeds from inventory financing		—		15,030,700
Repayments of inventory financing		(4,164,100)		(15,009,600)
Proceeds from letter of credit financing		12,705,140		20,192,971
Repayments of letter of credit financing		(14,865,396)		(19,471,200)
Proceeds from loans from dealer finance		340,729		20,063
Repayments of loans from dealers finance		(211,745)		(20,063)
Proceeds from revolving Line of Credit		2,536,154		—
Repayment of revolving Line of Credit		(665,000)		—
Proceeds from long-term borrowings		—		350,000
Repayments of long-term borrowings		(16,275)		(3,748)
Borrowing from a related party		28,875		313,913
Repayments made to a related party		—		(30,584)
Net cash (used in) provided by financing activities		(3,611,618)		1,372,452

Net increase (decrease) in cash		533,745		(295,771)
Cash, beginning of period		58,381		500,977
Cash, end of period	$	592,126	$	205,206

Supplemental cash flow information
Cash paid for income taxes	$	74,533	$	31,225
Cash paid for interest	$	205,042	$	559,712


Name of Entity	Date of Incorporation	State of Incorporation	% of Ownership	Principal Activities
Cheetah Net	August 9, 2016	North Carolina	Parent, 100%	Parallel-import vehicle dealership business
Subsidiaries of the parent:
Allen-Boy	August 31, 2016	Delaware	100%	Parallel-import vehicle dealership business

Fairview	December 5, 2018	North Carolina	100%	Parallel-import vehicle dealership business

Pacific	January 17, 2019	New York	100%	Parallel-import vehicle dealership business

Limousine	February 10, 2021	South Carolina	100%	Parallel-import vehicle dealership business

Entour	April 8, 2021	New York	100%	Parallel-import vehicle dealership business

Logistics	October 12, 2022	New York	100%	Parallel-import vehicle dealership business


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2023		2022		2023		2022
	(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)
U.S. domestic market	$	5,257,545	$	1,320,876	$	6,915,780	$	3,431,478
Overseas market		6,965,481		19,468,088		15,521,688		30,175,557
Total revenue	$	12,223,026	$	20,788,964	$	22,437,468	$	33,607,035


	June 30, 2023		December 31, 2022
	(Unaudited)
Vehicles	$	6,962,926	$	5,965,935
Subtotal		6,962,926		5,965,935
Less: inventory valuation allowance		—		—
Total inventories	$	6,962,926	$	5,965,935

Inventory reserve charged to costs of sales		—		—
Sale of previously reserved inventory		—		(92,811)
Ending balance	$	—	$	—


	June 30, 2023
	(Unaudited)
Inventories aged less than 3 months	$	6,654,303
Inventories aged from 4‑6 months		308,623
Less: inventory valuation allowance		—
Total inventories	$	6,962,926


	June 30, 2023		December 31, 2022
Right-of-use assets	$	235,249	$	140,145

Operating lease liabilities – current	$	62,354	$	149,458
Operating lease liabilities – non-current		177,208		—
Total operating lease liabilities	$	239,562	$	149,458


Twelve months ending June 30,	Amount
2024	$	77,196
2025		80,864
2026		83,290
2027		56,770
Total lease payments		298,120
Less: imputed interest		(58,558)
Present value of lease liabilities	$	239,562


Twelve months ending June 30,	Future repayment
2024	$	10,382
2025		10,805
2026		11,247
2027		11,706
2028		12,183
Thereafter		427,940
Total	$	484,263


Twelve months ending June 30,	Future repayment
2024	$	21,692
2025		22,916
2026		24,208
2027		25,574
2028		27,016
Thereafter		87,780
Total	$	209,186


Name		Relationship with Our Company
Mr. Huan Liu		Chief Executive Officer (“CEO”) and Chairman of the Board of Directors


	For the Three Months Ended						For the Six Months Ended
	June 30,						June 30,
	2023			2022			2023			2022
Federal statutory tax rate	$	21.0	%	$	21.0	%	$	21.0	%	$	21.0	%
State statutory tax rate		5.8	%		2.0	%		(6.2)	%		0.2	%
Non-deductible expenses		0.0	%		0.1	%		0.2	%		(0.0)	%
Non-taxable income		0.0	%		0.0	%		7.7	%		3.3	%
Effective tax rate	$	26.8	%	$	23.1	%	$	22.7	%	$	24.5	%


	Three months ended June 30,								Change				Six Months Ended June 30,								Change
	2023				2022				Amount		%		2023				2022				Amount		%
	USD		%		USD		%						USD		%		USD		%
Revenue	$	12,223,026	100.0	%	$	20,788,964	100.0	%	$	(8,565,938)	(41.2)	%	$	22,437,468	100.0	%	$	33,607,035	100.0	%	$	(11,169,567)	(33.2)	%
Cost of Revenue
Cost of vehicles		10,319,991	84.4	%		18,977,349	91.3	%		(8,657,358)	(45.6)	%		18,824,494	83.9	%		30,736,345	91.4	%		(11,911,851)	(38.8)	%
Fulfillment expenses		650,666	5.3	%		503,452	2.4	%		147,214	29.2	%		1,217,548	5.4	%		1,096,004	3.3	%		121,544	11.1	%
Total cost of revenue		10,970,657	89.7	%		19,480,801	93.7	%		(8,510,144)	(43.7)	%		20,042,042	89.3	%		31,832,349	94.7	%		(11,790,307)	(37.0)	%

Gross Profit (Loss)		1,252,369	10.3	%		1,308,163	6.3	%		(55,794)	(4.3)	%		2,395,426	10.7	%		1,774,686	5.3	%		620,740	35.0	%

Selling expenses		141,340	1.2	%		36,720	0.2	%		104,620	284.9	%		419,123	1.9	%		289,107	0.9	%		130,016	45.0	%
General and administrative expenses		565,400	4.6	%		347,302	1.7	%		218,098	62.8	%		1,146,470	5.1	%		582,850	1.7	%		563,620	96.7	%
Total operating expenses		706,740	5.8	%		384,022	1.9	%		322,718	84.0	%		1,565,593	7.0	%		871,957	2.6	%		693,636	79.5	%

Income (Loss) From Operations		545,629	4.5	%		924,141	4.4	%		(378,512)	(41.0)	%		829,833	3.7	%		902,729	2.7	%		(72,896)	(8.1)	%

Other Income (Expenses)
Interest expenses, net		(334,855)	(2.7)	%		(819,921)	(3.9)	%		485,066	(59.2)	%		(771,914)	(3.4)	%		(1,533,109)	(4.6)	%		761,195	(49.7)	%
Other income, net		1,968	—			2,134	—			(166)	(7.8)	%		3,902	—			4,246	—	%		(344)	(8.1)	%
Total other expenses, net		(332,887)	(2.7)	%		(817,787)	(3.9)	%		484,900	(59.3)	%		(768,012)	(3.4)	%		(1,528,863)	(4.6)	%		760,851	(49.8)	%

Income (Loss) before Income Tax Provision		212,742	1.8	%		106,354	0.5	%		106,388	100.0	%		61,821	0.3	%		(626,134)	(1.9)	%		687,955	(109.9)	%

Provision for (Benefits of) Income Taxes		56,997	0.5	%		24,549	0.1	%		32,448	132.2	%		14,009	0.1	%		(153,242)	(0.5)	%		167,251	(109.1)	%
Net Income (Loss)	$	155,745	1.3	%	$	81,805	0.4	%	$	73,940	90.4	%	$	47,812	0.2	%	$	(472,892)	(1.4)	%	$	520,704	(110.1)	%


	Three Months Ended June 30, 2023					Three Months Ended June 30, 2022					Average Selling Price Changes
	No.	Sales Amount		Ave Selling Price		No.	Sales Amount		Ave Selling Price		Amount		%
Bentley	—	$	—	$	—	1	$	276,448	$	276,448	$	—	—	%
BMW X7	—		—		—	18		1,561,248		86,736		—	—	%
Porsche Cayenne	—		—		—	9		817,587		90,843		—	—	%
Mercedes G550	—		—			6		1,183,338		197,223		—	—	%
Mercedes G63	—		—		—	5		1,321,171		264,234		—	—	%
Mercedes GLS 450	57		6,295,570		110,449	92		9,527,051		103,555		6,894	6.6	%
Mercedes Maybach	9		2,174,314		241,590	—		—		—		—	—	%
MB S500	—		—		—	20		2,747,157		137,358		—	—	%
Land Rover Range Rover	3		499,232		166,411	1		162,039		162,039		4,372	2.7	%
Toyota Sequoia	8		802,637		100,330	—		—		—		—	—
LEXUS LX570	—		—		—	2		212,054		106,027		—	—
LEXUS LX600	16		2,451,273		153,204	21		2,980,871		141,946		11,258	7.9	%
Total	93	$	12,223,026	$	131,430	175	$	20,788,964	$	118,794	$	12,636	10.4	%


	Three Months Ended June 30,
	2023		2022		Amount		%
Cost of Revenue
Cost of Vehicles	$	10,319,991	$	18,977,349	$	(8,657,358)	(45.6)	%
Fulfillment Expenses		650,666		503,452		147,214	29.2	%
Total Cost of Revenue	$	10,970,657	$	19,480,801	$	(8,510,144)	(43.7)	%


	For the Three Months Ended June 30,
	2023		2022		Amount		%
Inventory Financing	$	14,246	$	301,868	$	(287,622)	(95.3)	%
Letter of Credit Financing		251,031		512,509		(261,478)	(51.0)	%
Dealers Finance Charges		2,850		109		2,741	2,266.9	%
Other Loan Interest Expenses		7,849		5,023		2,826	56.3	%
Line of Credit		57,398		—		57,398	100	%
Credit Card Interest		1,481		412		1,069	259.5	%
Total	$	334,855	$	819,921	$	(485,066)	(59.2)	%


	Six Months Ended June 30, 2023					Six Months Ended June 30, 2022					Average Selling Price Changes
	No.	Sales Amount		Ave Selling Price		No.	Sales Amount		Ave Selling Price		Amount		%
Bentley	—	$	—	$	—	1	$	276,448	$	276,448	$	—	—	%
BMW X7	5		480,210		96,042	52		4,515,193		86,831		9,211	10.6	%
Porsche Cayenne	—		—		—	17		1,530,837		90,049		—	—	%
Mercedes G550	—		—		—	7		1,332,738		190,391		—	—	%
Mercedes G63	—		—		—	8		1,917,066		239,633		—	—	%
Mercedes GLS 450	83		9,172,404		110,511	139		14,183,865		102,042		8,469	8.3	%
Mercedes Maybach	12		2,877,516		239,793	—		—		—		—	—	%
MB S500	—		—		—	47		6,389,475		135,945		—	—	%
RAM Trucks	14		1,698,061		121,290	—		—		—		—	—
Land Rover Range Rover	10		1,614,422		161,442	1		162,039		162,039		(597)	(0.4)	%
Toyota Sequoia	24		2,433,859		101,411	—		—		—		—	—
LEXUS LX570	—		—		—	3		318,503		106,168		—	—
LEXUS LX600	27		4,160,996		154,111	21		2,980,871		141,946		12,165	8.6	%
Total	175	$	22,437,468	$	128,214	296	$	33,607,035	$	113,537	$	14,677	12.9	%


	Six Months Ended June 30,
	2023		2022		Amount		%
Selling Expenses
Payroll and benefits	$	117,676	$	88,342	$	29,334	33.2	%
Ocean Freight		291,712		200,765		90,947	45.3	%
Others		9,735		—		9,735	100.0	%
Total Selling expenses	$	419,123	$	289,107	$	130,016	45.0	%


	For the Six Months Ended June 30,
	2023		2022		Amount		%
Inventory Financing	$	112,769	$	545,306	$	(432,537)	(79.3)	%
Letter of Credit Financing		581,456		976,800		(395,344)	(40.5)	%
Dealers Finance Charges		3,016		109		2,907	100.0	%
Other Loan Interest Expenses		15,794		7,654		8,140	106.3	%
Line of Credit		57,398		—		57,398	—	%
Credit Card Interest		1,481		3,240		(1,759)	(54.3)	%
Total	$	771,914	$	1,533,109	$	(761,195)	(49.7)	%


			Less than 1		1 to 5		Above 5
	Total		Year		years		years
Lease commitment	$	298,120	$	77,196	$	220,924	$	—
Long-term borrowings		693,449		32,074		145,655		515,720
Total	$	991,569	$	109,270	$	366,579	$	515,720

Exhibit		Incorporated by Reference (Unless Otherwise Indicated)
Number	Exhibit Title	Form	File	Exhibit	Filing Date

3.1	Second Amended and Restated Article of Incorporation	S-1	333- 271185	3.1	May 3, 2023

3.2	Bylaws	S-1	001- 271185	3.2	April 7, 2023

4.1	Specimen Stock Certificate	S-1	333- 271185	4.1	April 7, 2023

31.1	Certification of Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002	—	—	—	Filed herewith

31.2	Certification of Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002	—	—	—	Filed herewith

32.1*	Certification of Principal Executive Officer pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002	—	—	—	Furnished herewith

32.2*	Certification of Principal Financial Officer pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002	—	—	—	Furnished herewith

101.INS	Inline XBRL Instance Document	—	—	—	Filed herewith

101.SCH	Inline XBRL Taxonomy Extension Schema Document	—	—	—	Filed herewith

101.CAL	Inline XBRL Taxonomy Extension Calculation Linkbase Document	—	—	—	Filed herewith

101.DEF	Inline XBRL Taxonomy Extension Definition Linkbase Document	—	—	—	Filed herewith

101.LAB	Inline XBRL Taxonomy Extension Label Linkbase Document	—	—	—	Filed herewith

101.PRE	Inline XBRL Taxonomy Extension Presentation Linkbase Document	—	—	—	Filed herewith

104	Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)	—	—	—	Filed herewith


		Cheetah Net Supply Chain Service Inc.

		By:	/s/ Huan Liu
			Huan Liu
			Chief Executive Officer, Director, and Chairman of the Board of Directors

/s/ Huan Liu
Huan Liu
Chief Executive Officer, Director, and Chairman of the Board of Directors
(Principal Executive Officer)

/s/ Robert Cook
Robert Cook
Chief Financial Officer
(Principal Accounting and Financial Officer)