- SOS Limited Reports 92.6% Surge in Commodity Trading Revenue Amid Strategic Pivot
- Cryptocurrency Mining Revenue Halves as SOS Focuses on Facility Upgrades and Commodity Expansion
In compliance with the
Results of operations
Revenue
The following table presents our revenues by revenue source and by proportion for the periods indicated (in thousands, except percentages):
|
|
FY 2024 |
|
|
FY 2023 |
|
||||||
|
|
Amount |
|
|
Percentage |
|
|
Amount |
|
|
Percentage |
|
Commodity trading |
|
214,340 |
|
|
92.6 |
% |
|
68,409 |
|
|
74 |
% |
Cryptocurrency Mining |
|
9,258 |
|
|
4 |
% |
|
18,898 |
|
|
20.4 |
% |
Hosting service |
|
6,506 |
|
|
2.8 |
% |
|
2,365 |
|
|
2.6 |
% |
Other |
|
1,320 |
|
|
0.6 |
% |
|
2,744 |
|
|
3 |
% |
Total |
|
231,424 |
|
|
100 |
% |
|
92,416 |
|
|
100 |
% |
The company reported a significant year-over-year increase in commodity trading revenue, which soared to
Conversely, cryptocurrency mining revenue declined to $9.3 million from
Revenue from other segments, primarily the legacy auto insurance business, continued to taper, reflecting $1.4 million decrease from
As of
As of
During the first half of 2024, the Company temporarily suspended operations to upgrade its facilities, resuming full production in July 2024.
Additionally, the Company's ETH holdings remain unchanged from the prior year at 2,924.79 units, with no additions made during the year.
The Company bought and sold commodity products such as sesame, sulfur, rubber, mung bean, asphalt and circuit modular units. The company recognizes revenue when the product has been delivered, title to the good and risk associated with it has been transferred to the customers. Revenue generated from commodity trading amounts to
Costs of revenue
Revenue costs increased from
Operating expenses
The following table presents our operating expense by source and proportion for the periods indicated (in thousands, except percentages):
|
|
FY 2024 |
|
|
FY 2023 |
|
||||||||||
Selling expenses |
|
|
2,774 |
|
|
|
10 |
% |
|
|
672 |
|
|
|
4 |
% |
General and administrative |
|
|
18,136 |
|
|
|
63 |
% |
|
|
11,058 |
|
|
|
58 |
% |
Share-based compensation |
|
|
7,735 |
|
|
|
27 |
% |
|
|
7,264 |
|
|
|
38 |
% |
|
|
|
28,645 |
|
|
|
|
|
|
|
18,994 |
|
|
|
|
|
Operating expenses increased from
Selling expenses
Selling expenses were
The year-on-year increase for 2024 was
General and administrative expenses
In 2024, G&A expenses for the year-on-year basis increased by
Share-based compensation expenses
Share-based compensation expenses increased from
GAAP Operating Loss and EPS
The Company had operating loss of
GAAP EPS Basic (Diluted EPS is the same as EPS Basic) was
Income Tax
The company incurred
Balance Sheet and Cash Flow
Our principal sources of liquidity are cash and cash equivalents and cash flows generated from our operations.
As of
The Company believes that its cash resources are adequate to fund its current operations and short-term growth initiatives, current liquidity and capital resources are sufficient to meet anticipated working capital needs (net cash used in operating activities), commitments, capital expenditures and for at least the next twelve months. The Company may, however, require additional cash resources due to changes in business conditions and other future developments, or changes in general economic conditions.
|
|
Year ended |
|
|
Year ended |
|
||
|
|
|
|
|
|
|
||
|
|
2024 |
|
|
2023 |
|
||
CASH FLOWS FROM OPERATING ACTIVITIES: |
|
|
|
|
|
|
||
Net loss |
|
$ |
(13,605) |
|
|
$ |
(3,651) |
|
Net loss from continuing operation |
|
|
(13,606) |
|
|
|
(3,651) |
|
Net loss from discontinued operation |
|
|
1 |
|
|
|
- |
|
Adjustments for: |
|
|
|
|
|
|
|
|
Depreciation of property, plant and equipment |
|
|
10,904 |
|
|
|
4,975 |
|
Depreciation of right-of-use asset |
|
|
377 |
|
|
|
800 |
|
Share-based compensation |
|
|
7,735 |
|
|
|
7,264 |
|
Accretion of finance leases |
|
|
6 |
|
|
|
32 |
|
Allowance for expected credit losses - accounts receivable |
|
|
196 |
|
|
|
451 |
|
Allowance for expected credit losses - other receivables |
|
|
(1,044) |
|
|
|
228 |
|
Impairment of intangible assets |
|
|
781 |
|
|
|
970 |
|
Impairment of mining equipment |
|
|
- |
|
|
|
4,455 |
|
Inventory impairment |
|
|
2,571 |
|
|
|
194 |
|
Adjustments, total |
|
|
21,526 |
|
|
|
19,369 |
|
|
|
|
|
|
|
|
|
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
|
Accounts receivable |
|
|
(2,017) |
|
|
|
1,172 |
|
Investment securities |
|
|
- |
|
|
|
(307) |
|
Other receivables |
|
|
(69,267) |
|
|
|
(25,194) |
|
Amount due from related parties |
|
|
29,745 |
|
|
|
29,456 |
|
Inventories |
|
|
(5,283) |
|
|
|
13,204 |
|
Intangible assets |
|
|
(9,258) |
|
|
|
(15,960) |
|
Accrued liabilities |
|
|
6,306 |
|
|
|
(5,193) |
|
Tax (recoverable)/payable |
|
|
(452) |
|
|
|
1,247 |
|
Accounts payable |
|
|
(24,229) |
|
|
|
(94) |
|
Other payables |
|
|
4,352 |
|
|
|
(4,795) |
|
Amount due to related parties |
|
|
(999) |
|
|
|
998 |
|
Lease liabilities |
|
|
(377) |
|
|
|
(544) |
|
Net cash generated from/(used in) operating activities from |
|
|
(63,559) |
|
|
|
9,708 |
|
Net cash generating from discontinued operating activities |
|
|
1 |
|
|
|
- |
|
Net cash generated from/(used in) operating activities |
|
|
(63,558) |
|
|
|
9,708 |
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM INVESTING ACTIVITIES: |
|
|
|
|
|
|
|
|
Purchases of property, plant and equipment |
|
|
- |
|
|
|
- |
|
Net cash used in investing activities from continuing operations |
|
|
- |
|
|
|
- |
|
Net cash used in investing activities from discontinued operation |
|
|
- |
|
|
|
|
|
Net cash used in investing activities |
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM FINANCING ACTIVITIES: |
|
|
|
|
|
|
|
|
Repayment of principle portion of lease liabilities |
|
|
(288) |
|
|
|
(288) |
|
Proceed from share issuance, net of issuance costs |
|
|
24,838 |
|
|
|
17,884 |
|
Proceeds from disposal of subsidiaries |
|
|
|
|
|
|
- |
|
Net cash generated from financing activities |
|
|
24,550 |
|
|
|
17,596 |
|
|
|
|
|
|
|
|
|
|
EFFECT OF EXCHANGE RATES ON CASH |
|
|
(2,685) |
|
|
|
(7,619) |
|
|
|
|
|
|
|
|
|
|
NET CHANGES IN CASH AND CASH EQUIVALENTS |
|
|
(41,693) |
|
|
|
19,685 |
|
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR |
|
|
279,177 |
|
|
|
259,492 |
|
CASH AND CASH EQUIVALENTS, END OF YEAR |
|
$ |
237,484 |
|
|
$ |
279,177 |
|
Net Cash Provided by/(Used in) Operating Activities
The Years Ended
Net cash generated from operating activities was
- A cash outflow of
$69.3 million from changes in other receivables for the year endedDecember 31, 2024 , compared with a cash outflow of$25.2 million for the previous year. - A cash outflow of $2 million in accounts receivable for the year ended
December 31, 2024 , compared with a cash inflow of$1.2 million for the previous year.
Cash Flow Used For Investment Activities
The net cash used in investing activities was nil for the year ended
Financing Activities
The net cash generated from financing activities was
We have financed our operations primarily through cash flows from operations, working capital from our shareholders, and equity financing through public and private offerings of our securities. We plan to support our future operations primarily from cash generated from our operations and equity financing.
About
SOS is currently engaged in commodity trading and cryptocurrency mining and hosting business. Our commodity trading services are primarily delivered through our subsidiaries in
Forward-Looking Statements
Certain statements in this press release may constitute "forward-looking statements" within the meaning of the federal securities laws, including, but not limited to, our expectations for future financial performance, business strategies or expectations for our business. These statements constitute projections, forecasts and forward-looking statements, and are not guarantees of performance. SOS cautions that forward-looking statements are subject to numerous assumptions, risks and uncertainties, which change over time. Words such as "may," "can," "should," "will," "estimate," "plan," "project," "forecast," "intend," "expect," "anticipate," "believe," "seek," "target," "look" or similar expressions may identify forward-looking statements.
These forward-looking statements are based on information available as of the date of this press release and our management's current expectations, forecasts and assumptions, and involve a number of judgments, risks and uncertainties that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements. These risks and uncertainties include, but not are limited to, the risk factors described by SOS in its filings with the
Accordingly, forward-looking statements should not be relied upon as representing our views as of any subsequent date, and you should not place undue reliance on these forward-looking statements in deciding whether to invest in our securities. We do not undertake any obligation to update forward-looking statements to reflect events or circumstances after the date they were made, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.
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