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Rubber Leaf Inc (RLEA0.00%) has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing includes financial statements for the quarter, showing an increase in sales revenue to $6,916,046 from $6,265,261 in the same quarter the previous year. The increase is attributed to higher demand from the indirect supply model.
Cost of sales for the quarter was $7,451,955, compared to $6,137,529 in the same quarter of the previous year. This increase is partly due to losses from factory relocation and idle capacity.
The company reported a gross loss of $535,909 for the quarter, compared to a gross profit of $127,732 in the previous year, with the decline attributed to reduced production in the direct supply model.
Selling expenses decreased to $20,311 from $66,670, mainly due to reduced direct supply model sales.
General and administrative expenses increased to $929,165 from $487,512, primarily due to higher professional service fees.
Net loss for the quarter was $1,773,183, compared to $591,529 in the previous year. The increase in net loss is attributed to the decrease in direct supply model sales and increased costs.
Cash used in operating activities was $2,233,478, while cash used in investing activities was $236,222. Cash provided by financing activities was $2,455,798.
Rubber Leaf had a negative working capital of $12,730,616 as of September 30, 2024. The company is managing its cash flow through a line of credit from the Industrial and Commercial Bank of China.
The filing also details ongoing legal proceedings related to construction costs of a new factory, with an appeal pending in the Ningbo Intermediate People’s Court.
The company identified material weaknesses in its internal controls over financial reporting, specifically in U.S. GAAP knowledge and segregation of duties.
Rubber Leaf continues to focus on its indirect supply model while addressing challenges in the direct supply model due to external factors such as EU tariffs.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Rubber Leaf quarterly 10-Q report dated November 14, 2024. To report an error, please email earnings@qz.com.