Sentage Holdings Inc. Announces Financial Results for the First Six Months of Fiscal Year 2023

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SHANGHAI, Dec. 23, 2023 /PRNewswire/ -- Sentage Holdings Inc. (the "Company", "we", "our") (Nasdaq: SNTG), is a holding company incorporated in the Cayman Islands with no material operations of its own. Through its China-based operating entities, the Company offers consumer loan repayment and collection management, loan recommendation, and prepaid payment network services in China. The Company today announced its financial results for the first six months of fiscal year 2023 ended June 30, 2023. The following summarizes such financial results.

Financial Highlights for the First Six Months of Fiscal Year 2023

  • Total operating revenue was $82 in the six months ended June 30, 2023, compared with $0.18 million for the same period of last year, representing a 100% decrease. The reason for the decrease in revenue was that the Company's existing business had been declining while the Company attempted to enter into new businesses.
  • Net loss was $1.08 million in the six months ended June 30, 2023, compared with net loss of $0.96 million for the same period of last year.
  • Basic and diluted loss per share was $0.46 in the six months ended June 30, 2023, compared with basic and diluted loss per share of $0.41 for the same period of last year.

Financial Results for the First Six Months of Fiscal Year 2023

Operating Revenue

Total operating revenue decreased by $0.18 million, or 100%, to $82 in the six months ended June 30, 2023, from $0.18 million for the same period of last year. The reason for the decrease in revenue was that the company's original business had been declining while the Company attempted to enter into new businesses.

Revenue from the prepaid payment network services business decreased by $0.18 million, or 100%, to $82 in the six months ended June 30, 2023, from $0.18 million for the same period of last year. Total number of merchant customers who used the Company's prepaid payment network services was 1 in the six months ended June 30, 2023 and 8 in the same period in 2022. During the six months ended June 30, 2023 and 2022, the Company provided technology consulting and support services to these customers. The Company charged such merchant customers service fees for designing tailored payment solutions, interfacing their internal systems with the Company's prepaid card payment system, and providing their staff with relevant operation training. These merchant customers have not yet issued prepaid cards to their end customers as of June 30, 2023 and 2022 and as of the date of this filing.

The Company did not generate any revenue from consumer loan repayment and collection management, or loan recommendation services, during the six months ended June 30, 2023 and 2022.

Operating Expenses

Selling, general and administrative expenses decreased by $52,717, or 5%, to $1,080,345 in the six months ended June 30, 2022, from $1,133,062 for the same period of last year. The decrease was due to the following reasons:

  • Professionals consulting expenses decreased by $ 167,000 or 42% to $ 226,500 in the six months ended June 30, 2023, from $393,500 for the same period of last year. The decrease was primarily due to the Company paid a smaller amount of consulting services to third party professionals.

Provision for Income Taxes

Provision for income taxes was nil for the six months ended 30 June 2023, compared with nil for the same period last year.

Net Loss

Net loss was $1.08 million in the six months ended June 30, 2023, compared with net loss of $0.96 million for the same period of last year.

Loss Per Share

Basic and diluted loss per share was $0.46 in the six months ended June 30, 2023, compared with basic and diluted loss per share of $0.41 for the same period of last year.

Cash and Cash Equivalents

As of June 30, 2023, the Company had cash and restricted cash of $2.74million, compared with $3.83 million as of December 31, 2022.

Cash Flow

Net cash used in operating activities was $1.04 million, compared with Net cash used in operating activities of $1.70 million for the same period of last year.

Net cash used in investing activities was $537, compared with Net cash used in investing activities of $7,874 for the same period of last year.

Net cash used in financing activity was $4,709, compared with Net cash used in financing activity of $0.04 million for the same period of last year.

About Sentage Holdings Inc.

Sentage Holdings Inc., headquartered in Shanghai, China, is a holding company incorporated in the Cayman Islands with no material operations of its own (the "Company"). Through its China-based operating entities, the Company offers consumer loan repayment and collection management, loan recommendation, and prepaid payment network services in China. Leveraging the Company's deep understanding of its client base, strategic partner relationships, and proprietary valuation models and technologies, the Company is committed to working with its clients to understand their financial needs and challenges and offering customized services to help them meet their respective objectives. For more information, please visit the company's website at ir.sentageholdings.com. 

Forward-Looking Statement

Certain statements in this announcement are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on current expectations and projections about future events and financial trends that the Company believes may affect its financial condition, results of operations, business strategy and financial needs. Investors can identify these forward-looking statements by words or phrases such as "may," "will," "expect," "anticipate," "aim," "estimate," "intend," "plan," "believe," "potential," "continue," "is/are likely to" or other similar expressions. The Company undertakes no obligation to update forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review risk factors that may affect its future results in the Company's registration statement.

For more information, please contact:

Sentage Holdings Inc.

Investor Relations Department
Email: ir@sentageholdings.com

Ascent Investor Relations LLC

Tina Xiao President
Tel: +1 917-609-0333
Email: tina.xiao@ascent-ir.com

 

 

SENTAGE HOLDINGS INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS




As of ,




June 30



December 31




2023



2022




USD



USD


ASSETS







Current assets







Cash


$

2,724,245



$

3,805,135


Restricted cash



19,850




23,089


Loan receivable



5,500,000




5,500,000


Accounts receivable, net



398,549




433,510


Prepaid expenses and other assets



4,455,206




4,579,646











Total current assets



13,097,850




14,341,380











Non-current assets









Right-of-use assets, net



112,252




162,270


Property and equipment, net



66,618




53,023


Intangible assets, net



76,014




89,475


Deferred tax assets



12,067




12,686











Total non-current assets



266,951




317,454











Total assets


$

13,364,801



$

14,658,834


 

 

SENTAGE HOLDINGS INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS (Continued)




As of ,




June 30



December 31




2023



2022




USD



USD


LIABILITIES AND STOCKHOLDERS' EQUITY







Current liabilities







Accounts payable


$

8,225



$

8,647


Operating lease liabilities



84,820




87,129


Accrued expenses and other liabilities



211,876




309,001











Total current liabilities



304,921




404,777











Non-current liabilities









Operating lease liabilities



23,858




74,384


Due to a related party







4,709











Total non-current liabilities



23,858




79,093











Total liabilities



328,779




483,870











Shareholders' equity









Ordinary shares, $0.005 par value, 10,000,000 shares authorized, 2,805,325 shared
   issued and outstanding



14,027




14,027


Additional paid in capital



55,327,858




55,327,858


Statutory reserves



166,038




166,038


Accumulated deficit



(42,542,457)




(41,460,571)


Accumulated other comprehensive income



70,556




127,612











Total shareholders' equity



13,036,022




14,174,964











Total liabilities and shareholders' equity


$

13,364,801



$

14,658,834


 

 

SENTAGE HOLDINGS INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS




For the six months
ended June 30,




2023



2022


OPERATING REVENUE







Prepaid payment network service fee



82




177,489


Total operating revenue



82




177,489











OPERATING EXPENSE









Selling, general and administrative expenses



1,080,345




1,133,062


Total operating expenses



1,080,345




1,133,062











LOSS FROM OPERATIONS



(1,080,263)




(955,573)











OTHER EXPENSES



(1,623)




(7,248)











LOSS BEFORE INCOME TAX PROVISION



(1,081,886)




(962,821)











PROVISION FOR INCOME TAXES



-




-











NET LOSS



(1,081,886)




(962,821)











OTHER COMPREHENSIVE LOSS









Foreign currency translation adjustment



(57,057)




(45,407)


COMPREHENSIVE LOSS


$

(1,138,943)



$

(1,008,228)











Loss per common share- basic and diluted


$

(0.46)



$

(0.41)











Weighted average shares- basic and diluted



2,376,764




2,374,795


 

 

SENTAGE HOLDINGS INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS




For the six months
ended June 30,




2023



2022


Cash flows from operating activities







Net loss


$

(1,081,886)



$

(962,821)


Adjustments to reconcile net income to cash and restricted cash
   provided by (used in) operating activities:









Depreciation and amortization



19,429




21,747


Deferred income tax expense



-




686


Impairment loss recognized in respect of receivables



(2,902)




52,150


Changes in operating assets and liabilities:









Accounts receivable



37,863




(203,307)


Prepaid expenses and other assets



124,441




(623,320)


Interest accrued for lease liabilities



(44,191)




-


Accrued expenses and other liabilities



(97,547)




12,134


Net cash used in operating activities



(1,044,793)




(1,702,731)











Cash flows from investing activity









Additions to property, plant and equipment



(537)




(7,874)


Net cash used in investing activity



(537)




(7,874)











Cash flows from financing activity









Repayment of related party loans



(4,709)




(43,992)


Net cash used in financing activity



(4,709)




(43,992)











Reconciliation of cash and restricted cash, beginning of period









Cash



3,805,135




10,753,118


Restricted cash



23,089




30,269


Cash and restricted cash, beginning of period


$

3,828,224



$

10,783,387











Reconciliation of cash and restricted cash, end of period









Cash



2,724,245




8,953,505


Restricted cash



19,850




23,431


Cash and restricted cash, end of period


$

2,744,095



$

8,976,936











Effect of exchange rate changes on cash and restricted cash



(34,091)




(51,854)


Net decrease in cash and restricted cash



(1,084,130)




(1,806,451)


Cash and restricted cash, beginning of period



3,828,224




10,783,387


Cash and restricted cash, end of period


$

2,744,095



$

8,976,936


Supplemental non-cash financing activity









Lease liabilities arising from obtaining right-of-use assets



3,138




-


 

 

 


Source: Sentage Holdings Inc. Related Stocks: NASDAQ:SNTG

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