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Rubber Leaf (RLEA0.00%) Inc has submitted its 10-K filing for the fiscal year ended December 31, 2024.
The filing details the company's operations through its wholly owned subsidiary, Rubber Leaf Sealing Products (Zhejiang) Co., Ltd., which specializes in the production and sales of automotive rubber and plastic sealing strips.
Revenue for the fiscal year was $6,929,706, a decrease from $9,990,150 in the previous year. The decline is attributed to reduced demand from direct supply model clients, including eGT, which temporarily suspended production.
Cost of sales was $7,669,249, down from $10,346,151 in the previous year, reflecting decreased production volume. The company reported a gross loss of $739,543, compared to a gross loss of $356,001 in the prior year.
Operating expenses increased to $1,060,857 from $797,208, primarily due to higher professional service fees related to legal expenses and application for uplisting to The Nasdaq Capital Market.
Net loss for the year was $2,203,628, compared to a net loss of $1,398,144 in the previous year. The increase in net loss is attributed to lower revenue and increased operating expenses.
Cash used in operating activities was $609,209, while cash used in investing activities was $1,947,583. Cash provided by financing activities was $2,527,010.
The company faces ongoing legal proceedings, including a dispute over construction costs with Ningbo Rongsen Construction Co., Ltd., and a refund claim from eGT for prepayments.
Rubber Leaf Inc has secured a line of credit from the Industrial and Commercial Bank of China to support its operations, but its accounts remain frozen due to the ongoing litigation.
The company acknowledges a material weakness in its internal controls over financial reporting due to a lack of segregation of duties and GAAP knowledge.
Rubber Leaf Inc continues to focus on expanding its market presence and enhancing its product offerings through strategic partnerships and geographic expansion.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Rubber Leaf annual 10-K report dated March 20, 2025. To report an error, please email earnings@qz.com.