Quanome Technologies, Inc 8-K, filed May 15, 2025
Quanome Technologies, Inc. (QNME)
About this 8-K
Quanome Technologies, Inc filed this 8-K on May 15, 2025, reporting on events of May 15, 2024.
Items reported
- Item 2.02: Financial results
- Item 9.01: Financial statements and exhibits
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CURRENT REPORT
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
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Item 2.02. Results of Operations and Financial Condition.
On May 15, 2024, Lakeside Holding Limited (the “Company”) announced its financial results for the fiscal quarter ended March 31, 2025. A copy of the press release is attached as Exhibit 99.1 to this Report.
The information under this Item 2.02, including Exhibit 99.1 shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, (the “Exchange Act”) or otherwise subject to the liabilities of that section, and shall not be deemed to be incorporated by reference into the filings of the Company under the Securities Act of 1933, as amended or the Exchange Act, except as will be expressly set forth by specific reference in such a filing.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits
| Exhibit No. | Description | |
| 99.1 | Press Release - Lakeside Holding Provides Third Quarter of Fiscal Year 2025 Results | |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). |
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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 hereunto duly authorized.
| Date: November 15, 2024 | ||
| Lakeside Holding Limited | ||
| By: | /s/ Henry Liu | |
| Henry Liu | ||
| Chairman and Chief Executive Officer | ||
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Exhibit 99.1
Lakeside Announces Fiscal 2025 Third Quarter and Nine-Month Results
ITASCA, IL, May 15, 2025 (GLOBE NEWSWIRE) -- Lakeside Holding Limited (“Lakeside” or the “Company”) (Nasdaq: LSH), a U.S.-based cross-border supply chain solution provider with a unique focus on the Asia-Pacific market operating through two specialized subsidiaries—American Bear Logistics and Hupan Pharmaceutical (Hubei) Co., Ltd., today announced financial results for its fiscal 2025 third quarter and nine months ended March 31, 2025.
Management Commentary
“The third quarter and first nine months of fiscal 2025 presented a dynamic environment for Lakeside,” commented Henry Liu, Chief Executive Officer. “While our established cross-border freight solutions experienced revenue declines compared to the prior year, primarily due to shifts in global shipping demands and pricing pressures, we are encouraged by the initial contributions from our new pharmaceutical distribution segment following the Hupan Pharmaceutical acquisition.
Our strategic objectives remain clear: expand our footprint in China’s pharmaceutical distribution market, where significant growth opportunities exist, while continuing to optimize our cross-border logistics services. We are actively integrating Hupan Pharmaceutical into our operations to leverage synergies between business segments.
Despite challenging market conditions in the freight sector, we remain committed to diversifying revenue streams and investing in high-growth areas. We believe our strategic focus on the Asia-Pacific market, coupled with our expansion into the pharmaceutical sector, positions Lakeside for long-term shareholder value creation.”
Highlights for the Nine Months Ended March 31, 2025, and Recent Developments:
| ● | Successful Initial Public Offering (IPO): On July 1, 2024, the Company successfully closed its IPO of 1,500,000 shares of common stock at $4.50 per share, raising aggregate gross proceeds of approximately $6.75 million (net proceeds of approximately $5.4 million after deducting underwriting discounts, commissions, and other offering expenses). This milestone provided significant capital to support the Company’s growth strategies and operational expansion. |
| ● | Acquisition of Hupan Pharmaceutical: On November 21, 2024, Lakeside completed the acquisition of Hupan Pharmaceutical (Hubei) Co., Ltd. (“Hupan Pharmaceutical”), marking its entry into the medical logistics and pharmaceutical distribution sector in China. This strategic acquisition is aimed at diversifying revenue streams and capitalizing on the growing healthcare market in the region. Hupan Pharmaceutical contributed $715,362 to revenues for the nine months ended March 31, 2025. |
| ● | Convertible Debt Financing: On March 5, 2025, Lakeside announced a convertible debt financing agreement for up to $4.5 million. This financing is intended to provide additional working capital to support the growth of its pharmaceutical distribution business and for general corporate purposes, further strengthening the Company’s financial position and ability to execute its strategic initiatives. |
| ● | Expansion of Pharmaceutical Business: Following the acquisition, the Company has been actively working to integrate Hupan Pharmaceutical and explore new business opportunities within the Chinese pharmaceutical market. This includes efforts to secure new distribution agreements and expand its product portfolio. For instance, as noted in prior announcements, the company has been working on securing distribution agreements with major pharmaceutical producers like Kelun Pharmaceutical. |
| ● | Continued Focus on Cross-Border Logistics: While navigating a challenging global shipping environment, American Bear Logistics, the Company’s freight forwarding arm, continued to provide customized cross-border ocean and airfreight solutions. The company remains focused on serving its core Asia-Pacific to U.S. trade lane, adapting to market shifts and customer needs. |
Financial Results for the Three Months Ending March 31, 2025:
Total revenues for the third quarter of fiscal 2025 were $3.80 million, a decrease compared to $4.46 million in the corresponding quarter of the previous fiscal year. This revenue comprised $2.86 million from third-party cross-border freight solutions (down from $3.82 million year-over-year), $0.45 million from related-party cross-border freight solutions (down from $0.64 million), and $0.50 million from the distribution of pharmaceutical products by third parties, a new revenue stream compared to nil in the prior year’s third quarter.
The total cost of revenues for the third quarter was $3.09 million, reduced from $3.49 million in the third quarter of fiscal 2024. This resulted in a gross profit of $0.72 million for the third quarter of fiscal 2025, compared to a gross profit of $0.98 million in the same period last year.
Operating expenses for the third quarter totaled $1.79 million, an increase from $0.94 million in the prior year’s third quarter. This included selling expenses of $0.10 million (nil in Q3 FY2024) and general and administrative expenses of $1.68 million (up from $0.96 million in Q3 FY2024). Consequently, the company recorded a loss from operations of $1.10 million for the third quarter of fiscal 2025, a shift from an income from operations of $0.04 million in the third quarter of fiscal 2024.
After accounting for other income and income taxes, the net loss attributable to the Company for the third quarter of fiscal 2025 was $1.07 million, or a loss of $0.14 per basic and diluted share. This compares to a net income attributable to the Company of $0.01 million, or $0.00 per share, for the third quarter of fiscal 2024.
Financial Results for the Nine Months Ended March 31, 2025:
For the nine months ended March 31, 2025, total revenues were $11.48 million, compared to $13.53 million for the same period in fiscal 2024. Revenues from third-party cross-border freight solutions were $9.56 million (down from $12.46 million), related-party cross-border freight solutions contributed $1.21 million (up from $1.07 million), and the distribution of pharmaceutical products by third parties generated $0.72 million (compared to nil in the prior year period).
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The total cost of revenues for the nine-month period was $10.28 million, a decrease from $10.84 million in the prior year period. This led to a gross profit of $1.20 million for the first nine months of fiscal 2025, down from $2.69 million in the corresponding period of fiscal 2024.
Operating expenses for the nine months increased to $5.60 million from $2.90 million in the prior year period. These expenses included $0.16 million in selling expenses (nil in the prior year period) and $5.43 million in general and administrative expenses (up from $2.80 million). As a result, the loss from operations for the nine months ended March 31, 2025, was $4.40 million, compared to a loss from operations of $0.21 million for the same period in fiscal 2024.
The net loss attributable to the Company for the nine months ended March 31, 2025, was $4.35 million, or a loss of $0.58 per basic and diluted share. This compares to a net loss attributable to the Company of $0.23 million, or a loss of $0.04 per share, for the nine months ended March 31, 2024.
Revenues by Customer Geographic Location
For the three months ended March 31, 2025, revenues from Asia-based customers were $3.3 million, a decrease from $3.8 million in the same period of the prior year. Revenues from U.S.-based customers were $0.5 million for the third quarter of fiscal 2025, compared to $0.6 million in the third quarter of fiscal 2024. The shift in revenue composition reflects the dynamic nature of global trade and the company’s strategic focus.
The following table presents the disaggregation of revenues by customer geographic location for the three months ended March 31, 2025 and 2024:
Revenues by Customer Geographic Location (Unaudited)
| For the three months ended March 31, | ||||||||||||||||||||||||
| 2025 | 2024 | |||||||||||||||||||||||
| Revenues | Amount | % of total Revenues | Amount | % of total Revenues | Amount Increase (Decrease) | Percentage Increase (Decrease) | ||||||||||||||||||
| Revenue from cross-border freight solutions | ||||||||||||||||||||||||
| Asia-based customers | $ | 2,851,137 | 75.0 | % | 3,822,169 | 85.7 | % | $ | (971,032 | ) | (25.4 | )% | ||||||||||||
| U.S.-based customers | 454,727 | 12.0 | % | 638,594 | 14.3 | % | (183,867 | ) | (28.8 | )% | ||||||||||||||
| 3,305,864 | 87.0 | % | 4,460,763 | 100.0 | % | (1,154,899 | ) | (25.9 | )% | |||||||||||||||
| Revenue from distribution of pharmaceuticals | ||||||||||||||||||||||||
| Asia-based customers | 497,276 | 13.0 | % | - | - | 497,276 | N/A | |||||||||||||||||
| Total revenues | $ | 3,803,140 | 100.0 | % | $ | 4,460,763 | 100.0 | % | $ | (657,623 | ) | (14.7 | )% | |||||||||||
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For the nine months ended March 31, 2025, revenues from Asia-based customers totaled $9.1 million, an increase from $8.1 million in the corresponding period of fiscal 2024. This growth highlights the continued demand from our Asia-based clientele. Revenues from U.S.-based customers for the nine-month period were $2.4 million, compared to $5.4 million in the prior year period, reflecting strategic adjustments in customer focus and market conditions.
The following table presents the disaggregation of revenues by customer geographic location for the nine months ended March 31, 2025 and 2024:
| For the nine months ended March 31, | ||||||||||||||||||||||||
| 2025 | 2024 | |||||||||||||||||||||||
| Revenues | Amount | % of total Revenues | Amount | % of total Revenues | Amount Increase (Decrease) | Percentage Increase (Decrease) | ||||||||||||||||||
| Revenue from cross-border freight solutions | ||||||||||||||||||||||||
| Asia-based customers | $ | 8,410,974 | 73.3 | % | $ | 8,119,136 | 60.0 | % | $ | 291,838 | 3.6 | % | ||||||||||||
| U.S.-based customers | 2,353,947 | 20.5 | % | 5,406,206 | 40.0 | % | (3,052,259 | ) | (56.5 | )% | ||||||||||||||
| 10,764,921 | 93.8 | % | 13,525,342 | 100.0 | % | (2,760,422 | ) | (20.4 | )% | |||||||||||||||
| Revenue from distribution of pharmaceuticals | ||||||||||||||||||||||||
| Asia-based customers | 715,362 | 6.2 | % | - | - | 715,362 | N/A | |||||||||||||||||
| Total revenues | $ | 11,480,283 | 100.0 | % | $ | 13,525,342 | 100.0 | % | $ | (2,045,060 | ) | (15.1 | )% | |||||||||||
Conference Call & Audio Webcast
Lakeside’s management team will hold an earnings conference call at 4:30 PM Eastern Time (3:30 PM Central Time) on Thursday, May 22 to discuss the Company’s financial results and provide an overview of the Company’s operations. Management will lead the conference call and be available to answer questions.
To access the call by phone, please dial 1- 877-407-9716 (international callers, please dial 1- 201-493-6779) approximately 10 minutes before the start of the call. Refer to conference ID: 13753971 or LAKESIDE. **NOTE: THIS CONFERENCE ID WILL BE REQUIRED FOR ENTRY
A live audio conference call webcast will be available online at
https://viavid.webcasts.com/starthere.jsp?ei=1708554&tp_key=b4f1b10725
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About Lakeside Holding Limited
Lakeside Holding Limited is a U.S.-based cross-border supply chain solution provider with a unique focus on the Asia-Pacific market. Through two specialized subsidiaries—American Bear Logistics and Hupan Pharmaceutical (Hubei) Co., Ltd.—Lakeside delivers tailored logistics solutions spanning general and specialized sectors.
American Bear Logistics, with strategic hubs in Chicago, Dallas, Los Angeles, and New York, offers customized cross-border ocean and airfreight solutions, connecting Asia-based logistics service companies and e-commerce platforms with the U.S. market.
Lakeside recently acquired Hupan Pharmaceutical (Hubei) Co., Ltd., expanding its service scope and enhancing its pharmaceutical logistics and distribution capabilities within China. This strategic move underscores Lakeside’s commitment to advancing integrated cross-border logistics solutions.
For more information, please visit https://lakeside-holding.com. The Company routinely updates important information on its website.
Safe Harbor Statement
This press release contains forward-looking statements that reflect our current expectations and views of future events. Known and unknown risks, uncertainties and other factors may cause our actual results, performance or achievements to be materially different from those expressed or implied by the forward-looking statements. You can identify some of these forward-looking statements by words or phrases such as “may,” “will,” “expect,” “anticipate,” “aim,” “estimate,” “intend,” “plan,” “believe,” “is/are likely to,” “potential,” “continue” or other similar expressions. We have based these forward-looking statements largely on our current expectations and projections about future events that we believe may affect our financial condition, results of operations, business strategy and financial needs. These forward-looking statements involve various risks and uncertainties. Except as required by law, we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events. We qualify all of our forward-looking statements by these cautionary statements.
Investor Relations Contact:
Matthew Abenante, IRC
President
Strategic Investor Relations, LLC
Tel: 347-947-2093
Email: matthew@strategic-ir.com
(tables follow)
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LAKESIDE HOLDING LIMITED
CONDENSED CONSOLIDATED BALANCE SHEETS
AS OF MARCH 31, 2025 AND JUNE 30, 2024
(UNAUDITED)
| As of March 31, 2025 | As of June 30, 2024 | |||||||
| (unaudited) | (audited) | |||||||
| ASSETS | ||||||||
| CURRENT ASSETS | ||||||||
| Cash | $1,499,257 | $123,550 | ||||||
| Accounts receivable – third parties, net | 1,397,499 | 2,082,152 | ||||||
| Accounts receivable – related party, net | 306,295 | 763,285 | ||||||
| Prepayment and other receivable | 91,426 | - | ||||||
| Contract assets | 71,331 | 129,506 | ||||||
| Inventories, net | 216,489 | - | ||||||
| Due from related parties | 856,570 | 441,279 | ||||||
| Loan to a third party | 573,546 | - | ||||||
| Total current assets | 5,012,413 | 3,539,772 | ||||||
| NON-CURRENT ASSETS | ||||||||
| Investment in other entity | 15,741 | 15,741 | ||||||
| Property and equipment at cost, net of accumulated depreciation | 533,993 | 344,883 | ||||||
| Intangible asset, net | 386,811 | - | ||||||
| Right of use operating lease assets | 3,619,138 | 3,471,172 | ||||||
| Right of use financing lease assets | 102,398 | 37,476 | ||||||
| Deferred tax asset | - | 89,581 | ||||||
| Deferred offering costs | - | 1,492,798 | ||||||
| Deposit and prepayment | 269,269 | 202,336 | ||||||
| Total non-current assets | 4,927,350 | 5,653,987 | ||||||
| TOTAL ASSETS | $ | 9,939,763 | $ | 9,193,759 | ||||
| LIABILITIES AND EQUITY | ||||||||
| CURRENT LIABILITIES | ||||||||
| Accounts payables – third parties | $ | 1,577,044 | $ | 1,161,858 | ||||
| Accounts payables – related parties | 68,895 | 227,722 | ||||||
| Accrued liabilities and other payables | 1,448,588 | 1,335,804 | ||||||
| Current portion of obligations under operating leases | 2,389,965 | 1,186,809 | ||||||
| Current portion of obligations under financing leases | 48,617 | 37,619 | ||||||
| Loans payable, current | 617,682 | 746,962 | ||||||
| Contract liabilities | 42,168 | - | ||||||
| Dividend payable | - | 98,850 | ||||||
| Tax payable | 106,433 | 79,825 | ||||||
| Due to shareholders | - | 1,018,281 | ||||||
| Convertible notes - current | 484,541 | |||||||
| Total current liabilities | 6,783,933 | 5,893,730 | ||||||
| NON-CURRENT LIABILITIES | ||||||||
| Loans payable, non-current | 156,509 | 136,375 | ||||||
| Loan payable to related party | 124,176 | |||||||
| Deferred tax liabilities | 96,703 | - | ||||||
| Obligations under operating leases, non-current | 1,815,211 | 2,506,402 | ||||||
| Obligations under financing leases, non-current | 72,651 | 17,460 | ||||||
| Convertible note - non-current | 140,792 | |||||||
| Total non-current liabilities | 2,406,042 | 2,660,237 | ||||||
| TOTAL LIABILITIES | $ | 9,189,975 | $ | 8,553,967 | ||||
| Commitments and Contingencies | ||||||||
| EQUITY | ||||||||
| Common stocks, $0.0001 par value, 200,000,000 shares authorized, 7,500,000 and 6,000,000 issued and outstanding as of March 31, 2025 and June 30, 2024, respectively | 750 | 600 | ||||||
| Subscription receivable | - | (600 | ) | |||||
| Additional paid-in capital | 5,113,511 | 642,639 | ||||||
| Statutory reserve | 7,014 | - | ||||||
| Deficits | (4,365,856 | ) | (5,819 | ) | ||||
| Accumulated other comprehensive income | (5,631 | ) | 2,972 | |||||
| Total equity | 749,788 | 639,792 | ||||||
| TOTAL LIABILITIES AND EQUITY | $ | 9,939,763 | $ | 9,193,759 | ||||
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LAKESIDE HOLDING LIMITED
CONDENSED CONSOLIDATED STATEMENT OF INCOME (LOSS)
AND COMPREHENSIVE INCOME (LOSS)
FOR THE THREE MONTHS AND NINE MONTHS ENDED MARCH 31, 2025 AND 2024
(UNAUDITED)
| Nine Months Ended March 31, | Three Months Ended March 31, | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Revenue from cross-border freight solutions – third party | $ | 9,559,567 | $ | 12,457,709 | $ | 2,857,504 | $ | 3,817,726 | ||||||||
| Revenue from cross-border freight solutions – related parties | 1,205,354 | 1,067,633 | 448,360 | 643,037 | ||||||||||||
| Revenue from distribution of pharmaceutical products – third parties | 715,362 | - | 497,276 | - | ||||||||||||
| Total revenue | 11,480,283 | 13,525,342 | 3,803,140 | 4,460,763 | ||||||||||||
| Cost of revenue from cross-border freight solutions – third party | 8,756,778 | 9,367,882 | 2,602,784 | 3,038,232 | ||||||||||||
| Cost of revenue from cross-border freight solutions – related party | 1,286,380 | 1,469,845 | 365,330 | 446,968 | ||||||||||||
| Cost of revenue from pharmaceutical products – third parties | 240,966 | - | 119,175 | - | ||||||||||||
| Total cost of revenue | 10,284,124 | 10,837,727 | 3,087,289 | 3,485,199 | ||||||||||||
| Gross profit | 1,196,159 | 2,687,615 | 715,851 | 975,564 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Selling expenses | 158,118 | - | 103,630 | - | ||||||||||||
| General and administrative expenses | 5,429,398 | 2,803,311 | 1,680,339 | 962,481 | ||||||||||||
| Loss from deconsolidation of a subsidiary | - | 73,151 | - | - | ||||||||||||
| Provision (reversal) of allowance for expected credit loss | 8,021 | 22,198 | 6,065 | (27,393 | ) | |||||||||||
| Total operating expenses | 5,595,537 | 2,898,660 | 1,790,034 | 935,088 | ||||||||||||
| (Loss) income from operations | (4,399,378 | ) | (211,045 | ) | (1,074,183 | ) | 40,476 | |||||||||
| Other income | ||||||||||||||||
| Other income, net | 310,796 | 190,887 | 109,255 | 102,438 | ||||||||||||
| Interest expense | (156,266 | ) | (79,400 | ) | (87,274 | ) | (25,536 | ) | ||||||||
| Total other income | 154,530 | 111,487 | 21,981 | 76,902 | ||||||||||||
| (Loss) income before income taxes | (4,244,848 | ) | (99,558 | ) | (1,052,202 | ) | 117,378 | |||||||||
| Income tax expense | 108,175 | 130,735 | 18,594 | 104,610 | ||||||||||||
| Net (loss) income | (4,353,023 | ) | (230,293 | ) | (1,070,796 | ) | 12,768 | |||||||||
| Less: net loss attributable to non-controlling interest | - | (3,025 | ) | - | - | |||||||||||
| Net (loss) income attributable to the Company | (4,353,023 | ) | (227,268 | ) | (1,070,796 | ) | 12,768 | |||||||||
| Other comprehensive (loss) income: | ||||||||||||||||
| Foreign currency translation (loss) income | (8,603 | ) | 3,122 | 3,583 | - | |||||||||||
| Comprehensive (loss) income | (4,361,626 | ) | (227,171 | ) | (1,067,213 | ) | 12,768 | |||||||||
| Less: comprehensive loss attributable to non-controlling interest | - | (3,119 | ) | - | - | |||||||||||
| Comprehensive (loss) income attributable to the Company | $ | (4,361,626 | ) | $ | (224,052 | ) | $ | (1,067,213 | ) | $ | 12,768 | |||||
| Loss per share – basic and diluted | $ | (0.58 | ) | $ | (0.04 | ) | $ | (0.14 | ) | $ | - | |||||
| Weighted Average Shares Outstanding – basic and diluted | 7,500,000 | 6,000,000 | 7,500,000 | 6,000,000 | ||||||||||||
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LAKESIDE HOLDING LIMITED
CONDENSSED CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED MARCH 31, 2025 AND 2024
(UNAUDITED)
| For the Nine Months Ended March 31, | ||||||||
| 2025 | 2024 | |||||||
| Cash flows from operating activities: | ||||||||
| Net loss | $ | (4,353,023 | ) | $ | (230,293 | ) | ||
| Adjustments to reconcile net loss to net cash provided by operating activities: | ||||||||
| Depreciation – G&A | 86,413 | 53,985 | ||||||
| Depreciation – cost of revenue | 62,441 | 54,493 | ||||||
| Amortization of intangible asset | 32,056 | - | ||||||
| Amortization and interest expense of operating lease assets | 1,515,688 | 658,713 | ||||||
| Depreciation of right-of-use finance assets | 24,081 | 22,548 | ||||||
| Provision of allowance for expected credit loss | 8,021 | 22,198 | ||||||
| Interest expense of convertible note | 40,541 | - | ||||||
| Deferred tax expense | 81,567 | 36,264 | ||||||
| Interest income | (11,645 | ) | - | |||||
| Loss from derecognition of shares in subsidiary | - | 73,151 | ||||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable – third parties | 666,858 | (283,936 | ) | |||||
| Accounts receivable – related parties | 466,764 | (565,824 | ) | |||||
| Contract assets | 58,175 | (58,498 | ) | |||||
| Inventories, net | (216,489 | ) | - | |||||
| Due from related parties | (41,230 | ) | 212,342 | |||||
| Due to related party | - | 14,536 | ||||||
| Prepayment and other deposit | (158,359 | ) | 2,623 | |||||
| Accounts payables – third parties | 415,186 | 493,085 | ||||||
| Accounts payables – related parties | (158,827 | ) | 57,420 | |||||
| Contract liabilities | 42,168 | - | ||||||
| Accrued expense and other payables | 393,633 | 111,122 | ||||||
| Tax payable | 26,608 | 94,471 | ||||||
| Operating lease liabilities | (1,151,931 | ) | (606,756 | ) | ||||
| Net cash (used in) provided by operating activities | (2,171,304 | ) | 161,644 | |||||
| Cash flows from investing activities: | ||||||||
| Purchase of furniture and equipment | (36,072 | ) | - | |||||
| Payment for leasehold improvement | (76,456 | ) | - | |||||
| Net cash payment for asset acquisition | (552,721 | ) | - | |||||
| Loan to a third party | (561,901 | ) | - | |||||
| Payment made for investment in other entity | - | (29,906 | ) | |||||
| Net cash outflow from deconsolidation of a subsidiary (Appendix A) | - | (48,893 | ) | |||||
| Net cash used in investing activities | (1,227,150 | ) | (78,799 | ) | ||||
| Cash flows from financing activities: | ||||||||
| Proceeds from loans | 294,975 | 225,000 | ||||||
| Repayment of loans | (420,765 | ) | (200,132 | ) | ||||
| Net proceeds from issuance of convertible notes | 755,512 | - | ||||||
| Proceeds from a loan from a related party | 124,176 | - | ||||||
| Repayment of equipment and vehicle loans | (85,591 | ) | (89,802 | ) | ||||
| Principal payment of finance lease liabilities | (22,814 | ) | (21,485 | ) | ||||
| Payment for deferring offering cost | - | (140,000 | ) | |||||
| Advances from Hupan Pharmaceutical prior to acquisition | 276,365 | - | ||||||
| Proceeds from initial public offering, net of share issuance costs | 5,351,281 | - | ||||||
| Advances to related parties | (685,247 | ) | - | |||||
| Proceeds from shareholders | - | 158,455 | ||||||
| Repayment to shareholders | (805,345 | ) | - | |||||
| Net cash provided by (used in) financing activities | 4,782,547 | (67,964 | ) | |||||
| Effect of exchange rate changes on cash | (8,386 | ) | 3,216 | |||||
| Net increase in cash | 1,375,707 | 18,097 | ||||||
| Cash, beginning of the period | 123,550 | 174,018 | ||||||
| Cash, end of the period | $ | 1,499,257 | $ | 192,115 | ||||
| SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | ||||||||
| Cash paid for income tax | $ | - | $ | - | ||||
| Cash paid for interest | $ | 67,704 | $ | 24,030 | ||||
| SUPPLEMENTAL SCHEDULE OF NON-CASH IN INVESTING AND FINANCING ACTIVITIES | ||||||||
| Deferred offering costs within due to shareholders | $ | - | $ | 660,826 | ||||
| Deferred offering costs within accrued expense and other payables | $ | - | $ | 176,176 | ||||
| Property additions included in loan payable | $ | 102,235 | - | |||||
| Additions to leasehold improvement through accounts payable and other payable | $ | 123,176 | - | |||||
| Due to shareholder offset against due from related parties | $ | 311,185 | - | |||||
| NON-CASH ACTIVITIES | ||||||||
| Right of use assets obtained in exchange for operating lease obligations | $ | 1,447,494 | $ | - | ||||
| Right of use assets obtained in exchange for finance lease obligation | $ | 89,003 | $ | 19,982 | ||||
| APPENDIX A – Net cash outflow from deconsolidation of a subsidiary | ||||||||
| Working capital, net | $ | 29,812 | ||||||
| Investment in other entity recognized | (15,741 | ) | ||||||
| Elimination of NCl at deconsolidation of a subsidiary | 10,187 | |||||||
| Loss from deconsolidation of a subsidiary | (73,151 | ) | ||||||
| Cash | $ | (48,893 | ) | |||||
8