Tue, Jul 16, 2:47 PM (53 days ago)
Value Exchange International, Inc. (VEII) reported a net revenue increase of 10.1% to $12,030,325 for the fiscal year ending December 31, 2023, driven by higher sales in hardware and consumables. However, the gross profit decreased by 30.1% to $1,184,381 due to increased costs of services. Operating expenses surged by 294.4% to $7,892,826, largely due to higher audit fees, staff costs, and other administrative expenses. Consequently, VEII reported a net loss of $6,734,911, a significant decline from the previous year's net income of $3,366. Basic and diluted net loss per share was $0.18. Key financial highlights include: - Increased cost of services by 17.5% to $10,845,944. - Operating loss rose to $6,691,065. - Income tax expenses decreased to $39,770. VEII's liquidity improved with net cash provided by financing activities increasing to $2,800,489. The company secured convertible credit lines totaling $5 million in 2023 for operating expenses and business development. However, the downgrade of VEII's common stock to Pink Sheets Limited Information on July 1, 2024, may impact liquidity and future funding efforts. The company faces significant competition and operational risks, including cybersecurity threats and regulatory challenges in Hong Kong and China.