Tue, May 14, 9:14 PM (73 days ago)
Rubber Leaf Inc. reported a net loss of $725,110 for Q1 2024, compared to a net loss of $199,320 in Q1 2023. Revenue increased by 26% to $2.95 million, primarily due to higher sales from the indirect supply model. However, the company faced a gross loss of $196,625, attributed to factory relocation costs of $190,703 and increased cost of sales. General and administrative expenses rose by 101% to $391,649 due to higher professional service fees related to a Nasdaq uplisting application. Cash flow from operations was negative at $628,739, but financing activities provided $785,369. The company secured a $7.75 million line of credit and plans to resume production in June 2024 post-relocation. The balance sheet shows a negative working capital of $11.7 million, primarily due to increased accounts receivable from related parties and higher payables. The company is involved in legal proceedings over construction cost disputes and is actively pursuing a resolution.