First Half of 2023 Financial Highlights
- First Half of 2023 total revenues of
US$46.30 million , compared toUS$0.80 million in the prior-year period, due to that increased commodity trading. - First Half of 2023 gross profit of
US$0.08 million , a decreased of 70.87% fromUS$0.26 million in the prior-year period. This is due to the lower gross profit margin of mass goods due to greater fluctuations in purchasing and selling prices. - First Half of 2023 loss from operations of
US$4.07 million , an increase of 69.79% from loss from continuing operations ofUS$2.40 million in the prior-year period. - Net loss from continued operation increased 77.52% to
US$4.36 million for the First Half of 2023, fromUS$2.46 million in the prior-year period. - Net income from discontinued operation is
US$4,894 for the First Half of 2023, comparing with the net loss from discontinued operation ofUS$3.71 million in the prior-year period. US$0.13 million in cash and cash equivalents as ofJune 30, 2023 .
Management Commentary
The COVID-19 outbreak since early 2020 has had a negative impact on the global economy and our financial performance has been negatively impacted. Mr.
Recent Operating Highlights
- On
March 31, 2023 , Blue Hat closed a private placement of 4,000,000 ordinary shares, par value$0.01 per share (referred to hereinafter as the “ordinary shares”) at a price of$0.70 per share to one purchaser and its designated persons without a broker. The aggregate gross proceeds to the Company is approximately$2.80 million . - On
May 23, 2023 , the Company entered into a Consulting Service Agreement withWei Deng (the “Consultant”). In consideration of the services to be provided by the Consultant to the Company for one year, the Company issued a total of 500,000 restricted shares of the Company ordinary shares at a price of$1.03 per share. - On
June 8, 2023 ,Fujian Blue Hat Interactive Entertainment Technology Ltd. ,Fuzhou CSFCTECH Co. Ltd. ,Fujian Roar Game Technology Co. Ltd. andFuzhou UC71 Co., Ltd. were deconsolidated from the Company as a result of the termination of the VIE agreements.
First Half of 2023 Results
Total revenues were
Revenues from sales of commodity trading were
Revenues from sales of information service were
Revenues from sales of interactive toys (animation series) were nil for the for the First Half of 2023, compared to
Revenues from sales of interactive toys (game series) were nil for the First Half of 2023, compared to
Gross profit decreased 70.87% to
Total gross margin was 0.16% for the First Half of 2023, compared to 32.28% in the prior-year period.
Total operating expenses increased by
Loss from operations increased 69.79% to loss from operations of
Net loss from continued operation increased 77.52% to net loss from continued operation of
Net income (loss) from discontinued operation increased 100.13% to net income from discontinued operation of
Basic loss per share from continued operation were
Basic loss per share from discontinued operation were nil for the First Half of 2023, compared to
Balance Sheet Highlights
As of
During the First Half of 2023, the Company completed a private placement by issuing 4 million restrictive ordinary shares. Separate from the above transaction, the Company paid consulting services by issuing 0.5 million restrictive ordinary shares.
About Blue Hat
Blue Hat was formerly a provider of communication services and IDC business, as well as a producer, developer, and operator of AR interactive entertainment games, toys, and educational materials in
Forward-Looking Statements
This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. All forward-looking statements are inherently uncertain as they are based on current expectations and assumptions concerning future events or future performance of the Company. Readers are cautioned not to place undue reliance on these forward-looking statements, which are only predictions and speak only as of the date hereof. In evaluating such statements, prospective investors should review carefully various risks and uncertainties identified in this release and matters set in the Company’s
Contacts:
Phone: +86 (592) 228-0010
Email: ir@bluehatgroup.net
BLUE HAT INTERACTIVE ENTERTAINMENT TECHNOLOGY AND SUBSIDIARIES UNAUDITED CONSOLIDATED BALANCE SHEETS | ||||||||
ASSETS | 2023 | 2022 | ||||||
(Audited) | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 133,150 | $ | 69,273 | ||||
Restricted cash | — | 1,129 | ||||||
Accounts receivable, net | 8,911,899 | 9,170,996 | ||||||
Other receivables, net | 3,472,252 | 4,704,455 | ||||||
Other receivables - related party | 1,365,938 | 1,427,829 | ||||||
Prepayments, net | 1,865,330 | 117,587 | ||||||
Assets related to discontinued operation | 7,747,405 | 6,040,801 | ||||||
Total current assets | 23,495,974 | 21,532,070 | ||||||
Property and equipment, net | 3,681,038 | 3,817,015 | ||||||
Other assets: | ||||||||
Prepayments | 2,437,065 | 2,495,570 | ||||||
Operating lease, right-of-use asset | 39,128 | 40,596 | ||||||
Intangible assets, net | 1,240,556 | 1,368,424 | ||||||
Long-term investments | 1,660,716 | 1,722,999 | ||||||
Assets related to discontinued operation | 2,571,202 | 3,300,184 | ||||||
Total other assets | 7,948,667 | 8,927,773 | ||||||
Total assets | $ | 35,125,679 | $ | 34,276,858 | ||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
Current liabilities: | ||||||||
Short-term loans - banks | $ | 447,588 | $ | 473,825 | ||||
Accounts payable | 437,063 | 324,991 | ||||||
Other payables and accrued liabilities | 9,095,955 | 9,014,057 | ||||||
Other payables - related party | 85,031 | 22,643 | ||||||
Operating lease liabilities - current | 10,850 | 11,261 | ||||||
Customer deposits | 3,375 | 19,629 | ||||||
Taxes payable | 788,575 | 841,334 | ||||||
Liability related to discontinued operation | 7,772,308 | 6,700,468 | ||||||
Total current liabilities | 18,640,745 | 17,408,208 | ||||||
Other liabilities: | ||||||||
Operating lease liability | 29,919 | 31,041 | ||||||
Convertible bonds payable | 1,164,317 | 1,393,499 | ||||||
Long term payable -related party y | 974,471 | 914,771 | ||||||
Total other liabilities | 2,168,707 | 2,339,311 | ||||||
Total liabilities | 20,809,452 | 19,747,519 | ||||||
COMMITMENTS AND CONTINGENCIES | ||||||||
Shareholders’ equity | ||||||||
Ordinary shares, authorized, 14,598,583 shares issued and outstanding as of | 145,986 | 98,947 | ||||||
Additional paid-in capital | 48,768,815 | 44,145,826 | ||||||
Statutory reserves | 2,143,252 | 2,143,252 | ||||||
Retained earnings | (39,481,333 | ) | (35,113,598 | ) | ||||
Accumulated other comprehensive income | 310,028 | 834,513 | ||||||
Total | 11,886,748 | 12,108,940 | ||||||
Non-controlling interests | 2,429,479 | 2,420,399 | ||||||
Total equity | 14,316,227 | 14,529,339 | ||||||
Total liabilities and shareholders’ equity | $ | 35,125,679 | $ | 34,276,858 |
BLUE HAT INTERACTIVE ENTERTAINMENT TECHNOLOGY AND SUBSIDIARIES UNAUDITED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME | ||||||||
For the Six Months Ended | ||||||||
2023 | 2022 | |||||||
Revenues | $ | 46,304,236 | $ | 804,182 | ||||
Cost of revenue | 46,228,625 | 544,622 | ||||||
Gross profit | 75,611 | 259,560 | ||||||
Operating expenses: | ||||||||
Selling | 3,922 | 143,899 | ||||||
General and administrative | 2,865,496 | 1,069,647 | ||||||
Research and development | 1,273,215 | 1,441,273 | ||||||
Total operating expenses | 4,142,633 | 2,654,819 | ||||||
Loss from operations | (4,067,022 | ) | (2,395,259 | ) | ||||
Other income (expense) | ||||||||
Interest income | 5 | 200 | ||||||
Interest expense | (291,703 | ) | (17,356 | ) | ||||
Other finance expenses | (11,099 | ) | (6,121 | ) | ||||
Other income, net | 6,386 | 5,723 | ||||||
Total other expense, net | (296,411 | ) | (17,554 | ) | ||||
Loss before income taxes | (4,363,433 | ) | (2,412,813 | ) | ||||
Provision for income taxes | 116 | 45,289 | ||||||
Loss from Continuing Operations | (4,363,549 | ) | (2,458,102 | ) | ||||
Discontinued Operations | ||||||||
Income (loss) from discontinued operations | 4,894 | (3,707,361 | ) | |||||
Less: Net income (loss) attributable to non-controlling interests | 9,080 | (922,670 | ) | |||||
Net Loss attributable to | (4,367,735 | ) | (5,242,793 | ) | ||||
Other comprehensive loss | ||||||||
Net loss from continued operations | (4,363,552 | ) | (2,458,102 | ) | ||||
Foreign currency translation adjustment - continued operations | (372,369 | ) | (1,019,403 | ) | ||||
Comprehensive loss - continued operations | $ | (4,735,921 | ) | $ | (3,477,505 | ) | ||
Net income (loss) from discontinued operations | 4,894 | (3,707,361 | ) | |||||
Foreign currency translation adjustment - discontinued operations | (152,116 | ) | 51,435 | |||||
Comprehensive loss - discontinued operations | (147,222 | ) | (3,655,926 | ) | ||||
Comprehensive Income (Loss) | (4,883,143 | ) | (7,133,431 | ) | ||||
Less: Comprehensive income (loss) attributable to non-controlling interests | 9,080 | (922,670 | ) | |||||
Comprehensive income attributable to | (4,892,223 | ) | (6,210,761 | ) | ||||
Weighted average number of ordinary shares | ||||||||
Basic | 12,052,427 | 6,021,612 | ||||||
Diluted | 13,333,094 | 6,947,050 | ||||||
losses per share | ||||||||
Basic loss per share from continued operation | $ | (0.36 | ) | $ | (0.41 | ) | ||
Basic loss per share from discontinued operation | — | $ | (0.46 | ) | ||||
Diluted losses per share | ||||||||
Diluted loss per share from continued operation | $ | (0.33 | ) | $ | (0.35 | ) | ||
Diluted loss per share from discontinued operation | — | $ | (0.40 | ) |
Source:
2023 GlobeNewswire, Inc., source