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