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NETSOL Technologies Reports 3% Total Net Revenue Growth With 26% Increase in Recurring Revenue and Net Profitability in Fiscal First Quarter 2025

13.11.2024 by admin

3% increase in 1Q’25 total net revenues to $14.6 million
26% increase in 1Q’25 subscription and support revenues to $8.2 million
45% gross margins in 1Q’25
Net income in 1Q’25 of $71,000 building on FY’24 profitability
Cash and cash equivalents increased to $24.5 million
Signed expansion agreement with major automaker in China increasing contract value to over $30 million
Signed $16 million agreement with major automaker in the United States

ENCINO, Calif., Nov. 13, 2024 (GLOBE NEWSWIRE) — NETSOL Technologies, Inc. (Nasdaq: NTWK), a global business services and asset finance solutions provider, reported results for the fiscal first quarter of 2025 ended September 30, 2024.

Najeeb Ghauri, Co-Founder, Chief Executive Officer, and Chairman of NETSOL Technologies Inc., commented, “We’re continue to build on the foundation we laid in 2024, achieving profitability in the first fiscal quarter of 2025 driven by a 26% increase in recurring subscription and support revenues and consistent services revenues when compared to the first quarter of fiscal 2024. Moreover, we are strengthening our balance sheet and are aggressively but strategically investing in the growth of our business, with a particular focus on AI, as we expand our product offerings and grow our presence in both new and existing geographic markets.”

Fiscal First Quarter 2025 Financial Results

Total net revenues for the first quarter of fiscal 2025 increased 3% to $14.6 million, compared with $14.2 million in the prior year period, driven by a 26% increase in subscription and support revenues and consistent services revenues in the quarter. On a constant currency basis, total net revenues were $14.5 million.

No meaningful license fees compared with $1.3 million in the prior year period.
Total subscription (SaaS and Cloud) and support revenues increased 26% to $8.2 million compared with $6.5 million in the prior year period. Total subscription and support revenues as percentage of sales increased to 56%, compared with 46% in the prior year period. Total subscription and support revenues on a constant currency basis were $8.1 million.
Total services revenues were $6.4 million, compared with $6.5 million in the prior year period. Total services revenues on a constant currency basis were $6.3 million.

Gross profit for the first quarter of fiscal 2025 was $6.6 million or 45% of net revenues, compared to $6.2 million or 43% of net revenues in the first quarter of fiscal 2024. On a constant currency basis, gross profit was $6.7 million or 46% of net revenues as measured on a constant currency basis.

Operating expenses for the first quarter of fiscal 2025 were $7.3 million or 50% of sales compared to $5.8 million or 41% of sales for the first quarter of fiscal 2024. On a constant currency basis, operating expenses were $7.2 million or 49% of sales on a constant currency basis.

Loss from operations for the first quarter of fiscal 2025 was $(760,000) compared to income from operations of $350,000 in the first quarter of fiscal 2024.

GAAP net income attributable to NETSOL for the first quarter of fiscal 2025 totaled $71,000 or $0.006 per diluted share, compared with GAAP net income of $31,000 or 0.003 per diluted share in the prior year period.

Non-GAAP EBITDA for the first quarter of fiscal 2025 was $302,000 or $0.03 per diluted share, compared with non-GAAP EBITDA of $805,000 or $0.07 per diluted share in the first quarter of fiscal 2024 (see note regarding “Use of Non-GAAP Financial Measures,” below for further discussion of this non-GAAP measure).

Non-GAAP adjusted EBITDA for the first quarter of fiscal 2025 was $204,000 or $0.02 per diluted share, compared with a non-GAAP adjusted EBITDA of $466,000 or $0.04 per diluted share in the prior year period (see note regarding “Use of Non-GAAP Financial Measures,” below for further discussion of this non-GAAP measure).

Balance Sheet and Capital Structure

Cash and cash equivalents was $24.5 million as of September 30, 2024, compared with $19.1 million as of June 30, 2024. Working capital was $24.2 million as of September 30, 2024, compared with $23.6 million as of June 30, 2024. Total NETSOL stockholders’ equity at September 30, 2024, was $34.7 million or $3.03 per share.

Management Commentary

“Our performance in the first quarter of 2025 was driven by encouraging trends including a double-digit increase in subscription and support revenue and consistent services revenues when compared to the first quarter of 2024,” Najeeb Ghauri, Co-Founder, Chief Executive Officer, and Chairman of NETSOL Technologies Inc., commented. “Importantly, we achieved these results without recognizing any meaningful license fees in the quarter, demonstrating a shift in our revenue to rely less on large, one-time licensing fees and benefit from more predictable and consistent SaaS sales.

“We continued to invest in the growth of our business during the quarter,” Mr. Ghauri continued. “Geographic expansion remains a key strategic focus for us, and we believe that there is significant opportunity for growth in new markets, as well as the ones that we currently hold a leadership position in as we continue to innovate and evolve our product offerings to meet shifting market demands. The recent product rebranding has been particularly well received and we’re focused on investing in our business development initiatives to create a more sustainable pipeline of opportunities across all our markets.

“Growth in the United States continues to be a top priority, and we’re making encouraging progress as we continue to penetrate this region. During the quarter, we announced a five-year, $16 million deal with a major automaker and to revolutionize their digital car buying experience through Transcend Retail, our omnichannel digital retail platform. We’re performing in our established markets as well – during the quarter, we signed an expansion agreement with a major automaker in China increasing the contract value to over $30 million, demonstrating our strength of customer relationships and ongoing demand for our products from Tier 1 names in the auto industry. We remain confident that we will be able to achieve double digit revenue growth this fiscal year.”

Roger Almond, Chief Financial Officer of NETSOL Technologies Inc., commented, “Our first quarter results reflect the strengthening of our business model with solid growth of our recurring revenue base. From a liquidity standpoint, we strengthened our balance sheet in the quarter with a cash position of $24.5 million compared with $19.1 million at the close of fiscal 2024, as well as improved working capital. Looking ahead, we believe that NETSOL is well positioned to deliver double-digit revenue growth in fiscal 2025 and drive enhanced value for our shareholders.”

Conference Call

NETSOL Technologies management will hold a conference call on Wednesday, November 13, at 9:00 a.m. Eastern Time (6:00 a.m. Pacific Time) to discuss these financial results. A question-and-answer session will follow management’s presentation.

U.S. dial-in: 877-407-0789
International dial-in: 201-689-8562

Please call the conference telephone number 5-10 minutes prior to the start time and provide the operator with the conference ID: NETSOL. The operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact Investor Relations at 203-972-9200.

The conference call will also be broadcast live and available for replay here, along with additional replay access being provided through the company information section of NETSOL’s website.

A telephone replay of the conference call will be available approximately three hours after the call concludes through Wednesday, November 27, 2024.

Toll-free replay number: 844-512-2921
International replay number: 412-317-6671
Replay ID: 13750042

About NETSOL Technologies
NETSOL Technologies, Inc. NTWK is a worldwide provider of IT and enterprise software solutions primarily serving the global leasing and finance industry. The Company’s suite of applications is backed by 40 years of domain expertise and supported by a committed team of professionals placed in ten strategically located support and delivery centers throughout the world. NETSOL’s products help companies transform their finance and leasing operations, providing a fully automated asset-based finance solution covering the complete leasing and finance lifecycle.

Forward-Looking Statements
This press release may contain forward-looking statements relating to the development of the Company’s products and services and future operation results, including statements regarding the Company that are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected. The words “expects,” “anticipates,” variations of such words, and similar expressions, identify forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, but their absence does not mean that the statement is not forward-looking. These statements are not guarantees of future performance and are subject to certain risks, uncertainties, and assumptions that are difficult to predict. Factors that could affect the Company’s actual results include the progress and costs of the development of products and services and the timing of the market acceptance. The subject Companies expressly disclaim any obligation or undertaking to update or revise any forward-looking statement contained herein to reflect any change in the company’s expectations with regard thereto or any change in events, conditions or circumstances upon which any statement is based.

Use of Non-GAAP Financial Measures
The reconciliation of Adjusted EBITDA to net income, the most comparable financial measure based upon GAAP, as well as a further explanation of adjusted EBITDA, is included in the financial tables in Schedule 4 of this press release.

Investor Relations Contact:

IMS Investor Relations
netsol@imsinvestorrelations.com
+1 203-972-9200


NETSOL Technologies, Inc. and Subsidiaries Schedule 1: Consolidated Balance Sheets

	As of			As of
ASSETS	September 30, 2024			June 30, 2024
Current assets:
Cash and cash equivalents	$	24,525,956		$	19,127,165
Accounts receivable, net of allowance of $15,533 and $398,809		5,936,063			13,049,614
Revenues in excess of billings, net of allowance of $460,743 and $116,148		12,743,571			12,684,518
Other current assets		3,328,112			2,600,786
Total current assets		46,533,702			47,462,083
Revenues in excess of billings, net – long term		866,388			954,029
Property and equipment, net		4,847,869			5,106,842
Right of use assets – operating leases		1,216,835			1,328,624
Other assets		32,341			32,340
Intangible assets, net		–			–
Goodwill		9,302,524			9,302,524
Total assets	$	62,799,659		$	64,186,442

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable and accrued expenses	$	8,414,790		$	8,232,342
Current portion of loans and obligations under finance leases		6,443,937			6,276,125
Current portion of operating lease obligations		590,541			608,202
Unearned revenue		6,923,112			8,752,153
Total current liabilities		22,372,380			23,868,822
Loans and obligations under finance leases; less current maturities		92,638			95,771
Operating lease obligations; less current maturities		594,631			688,749
Total liabilities		23,059,649			24,653,342

Stockholders’ equity:
Preferred stock, $.01 par value; 500,000 shares authorized;		–			–
Common stock, $.01 par value; 14,500,000 shares authorized;
12,383,872 shares issued and 11,444,841 outstanding as of September 30, 2024 ,
12,359,922 shares issued and 11,420,891 outstanding as of June 30, 2024		123,842			123,602
Additional paid-in-capital		128,709,890			128,783,865
Treasury stock (at cost, 939,031 shares
as of September 30, 2024 and June 30, 2024)		(3,920,856	)		(3,920,856	)
Accumulated deficit		(44,141,518	)		(44,212,313	)
Other comprehensive loss		(46,049,023	)		(45,935,616	)
Total NetSol stockholders’ equity		34,722,335			34,838,682
Non-controlling interest		5,017,675			4,694,418
Total stockholders’ equity		39,740,010			39,533,100
Total liabilities and stockholders’ equity	$	62,799,659		$	64,186,442

NETSOL Technologies, Inc. and Subsidiaries Schedule 2: Consolidated Statement of Operations

	For the Three Months
	Ended September 30,
	2024			2023
Net Revenues:
License fees	$	1,229		$	1,280,449
Subscription and support		8,192,471			6,512,243
Services		6,404,798			6,449,489
Total net revenues		14,598,498			14,242,181

Cost of revenues		8,034,386			8,080,164
Gross profit		6,564,112			6,162,017

Operating expenses:
Selling, general and administrative		6,964,321			5,432,969
Research and development cost		359,949			378,419
Total operating expenses		7,324,270			5,811,388

Income (loss) from operations		(760,158	)		350,629

Other income and (expenses)
Interest expense		(258,219	)		(276,017	)
Interest income		769,867			414,718
Gain (loss) on foreign currency exchange transactions		542,545			(134,253	)
Other income		153,491			57,881
Total other income (expenses)		1,207,684			62,329

Net income before income taxes		447,526			412,958
Income tax provision		(229,817	)		(121,895	)
Net income		217,709			291,063
Non-controlling interest		(146,914	)		(260,173	)
Net income attributable to NetSol	$	70,795		$	30,890


Net income per share:
Net income per common share
Basic	$	0.006		$	0.003
Diluted	$	0.006		$	0.003

Weighted average number of shares outstanding
Basic		11,429,695			11,345,856
Diluted		11,482,754			11,345,856

NETSOL Technologies, Inc. and Subsidiaries Schedule 3: Consolidated Statement of Cash Flows

	For the Three Months
	Ended September 30,
	2024			2023
Cash flows from operating activities:
Net income	$	217,709		$	291,063
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization		365,997			530,786
Provision (reversal) for bad debts		336,506			7,880
(Gain) loss on sale of assets		–			(98	)
Stock based compensation		47,779			60,354
Changes in operating assets and liabilities:
Accounts receivable		6,738,384			4,608,881
Revenues in excess of billing		836,403			(1,478,386	)
Other current assets		(222,359	)		92,686
Accounts payable and accrued expenses		10,546			341,722
Unearned revenue		(2,813,220	)		(2,791,269	)
Net cash provided by operating activities		5,517,745			1,663,619

Cash flows from investing activities:
Purchases of property and equipment		(100,737	)		(371,630	)
Sales of property and equipment		–			1,230
Purchase of subsidiary shares		(7,895	)		–
Net cash used in investing activities		(108,632	)		(370,400	)

Cash flows from financing activities:
Proceeds from the exercise of stock options		21,500			–
Proceeds from bank loans		250,000			–
Payments on finance lease obligations and loans – net		(118,311	)		(44,474	)
Net cash provided by (used in) financing activities		153,189			(44,474	)
Effect of exchange rate changes		(163,511	)		(230,322	)
Net increase (decrease) in cash and cash equivalents		5,398,791			1,018,423
Cash and cash equivalents at beginning of the period		19,127,165			15,533,254
Cash and cash equivalents at end of period	$	24,525,956		$	16,551,677

NETSOL Technologies, Inc. and Subsidiaries Schedule 4: Reconciliation to GAAP

	For the Three Months
	Ended September 30,
	2024			2023

Net Income (loss) attributable to NetSol	$	70,795		$	30,890
Non-controlling interest		146,914			260,173
Income taxes		229,817			121,895
Depreciation and amortization		365,997			530,786
Interest expense		258,219			276,017
Interest (income)		(769,867	)		(414,718	)
EBITDA	$	301,875		$	805,043
Add back:
Non-cash stock-based compensation		47,779			60,354
Adjusted EBITDA, gross	$	349,654		$	865,397
Less non-controlling interest (a)		(145,781	)		(399,440	)
Adjusted EBITDA, net	$	203,873		$	465,957

Weighted Average number of shares outstanding
Basic		11,429,695			11,345,856
Diluted		11,482,754			11,345,856

Basic adjusted EBITDA	$	0.02		$	0.04
Diluted adjusted EBITDA	$	0.02		$	0.04


(a)The reconciliation of adjusted EBITDA of non-controlling interest
to net income attributable to non-controlling interest is as follows

Net Income (loss) attributable to non-controlling interest	$	146,914		$	260,173
Income Taxes		70,587			36,377
Depreciation and amortization		89,135			141,351
Interest expense		79,192			85,889
Interest (income)		(242,647	)		(128,091	)
EBITDA	$	143,181		$	395,699
Add back:
Non-cash stock-based compensation		2,600			3,741
Adjusted EBITDA of non-controlling interest	$	145,781		$	399,440

Markets News

What's Going On With Palantir Stock After Renewing Collaboration With Rio Tinto?

13.11.2024 by admin

Palantir Technologies Inc. PLTR shares are trading relatively flat in the premarket session on Wednesday.

The company announced today that it renewed its multi-year enterprise agreement with the mining giant Rio Tinto Plc RIO, extending the partnership for an additional four years.

This agreement ensures Rio Tinto’s continued access to Palantir’s Artificial Intelligence Platform (AIP), further enhancing the company’s operational efficiency and AI capabilities.

As an early adopter of Palantir Foundry, Rio Tinto has already built a robust digital twin, or “Ontology,” which serves as a unified data model for critical operations.

Also Read: Palantir Overtakes Lockheed Martin In Market Cap, How Does The ‘Messi Of AI’ Stack Up Against The Traditional Defense Player

The Ontology enables Rio Tinto to leverage AIP to rapidly develop, test, and deploy AI-driven solutions, addressing challenges in areas like plant operations, geotechnical risk management, and the coordination of unmanned trains.

“The Foundry Ontology has made our structured data accessible, and AIP is doing the same for our unstructured data while enabling us to attack with pace problems previously deemed too complex,” said Bold Bataar, Rio Tinto’s Chief Commercial Officer.

According to Benzinga Pro, RIO stock has lost over 6% in the past year. Investors can gain exposure to the stock via VanEck Steel ETF SLX and Gabelli ETFs Trust Gabelli Financial Services Opportunities ETF GABF and VanEck Natural Resources ETF HAP.

For instance, in Western Australia’s Pilbara region, Foundry integrates real-time data from hundreds of systems, allowing operators to optimize the routing of 53 driverless trains transporting iron ore. This has led to improved safety and throughput on the rail network.

Meanwhile, in Mongolia’s Oyu Tolgoi mine, the Ontology provides dynamic risk management for one of the world’s most challenging mining environments.

Palantir’s AIP will enhance Rio Tinto’s ability to manage complex workflows and accelerate innovation across its operations. Both companies expect the AI platform to drive continued improvements in performance, safety, and decision-making in Rio Tinto’s high-stakes environments.

Ted Mabrey, Palantir’s Head of Commercial, highlighted the potential of AIP to address Rio Tinto’s most pressing challenges, including risk identification and asset management, ensuring safe and efficient AI deployment.

PLTR stock has gained over 200% in the past year. Investors can gain exposure to the stock via REX AI Equity Premium Income ETF AIPI and Global X Funds Global X Defense Tech ETF SHLD.

Price Action: PLTR shares are trading higher by 1.02% to $60.46 premarket at last check Wednesday, whie RIO shares are trading lower by 0.46% to $60.92.

Image via Shutterstock

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Spirit Air Nears Bankruptcy That Would Wipe Out Shareholders

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SAIHEAT Limited Reports Unaudited Financial Results for the Six Months Ended June 30, 2024

13.11.2024 by admin

SINGAPORE, Nov. 13, 2024 (GLOBE NEWSWIRE) — SAIHEAT Limited (f/k/a SAI.TECH Global Corporation) (“SAIHEAT” or the “Company”) SAIH SAITW)), today reported unaudited financial results for the six months ended June 30, 2024.

Financial Highlights for the Six Months Ended June 30, 2024

Total revenues for the six months ended June 30, 2024, were US$ 3.2 million, having increased 6% compared to the six months ended June 30, 2023.

Gross Margin for the six months ended June 30, 2024, was negative US$ 0.1 million, compared to gross profits of US$ 0.2 million for the six months ended June 30, 2023.

Net losses for the six months ended June 30, 2024, was US$ 1.9 million compared to net losses of US$ 3.7 million for the six months ended June 30, 2023.

Mr. Arthur Lee, Chairman and Chief Executive Officer of the Company, stated that, “Despite the reduction in block rewards from the April ‘halving event’, our total revenue have increased 6% compared to the six months ended June 30, 2023. Due primarily to the significant increase in the Bitcoin price, which has more than tripled since January 2023.”

Recent Developments

On-site Project Development Update in the U.S.

We expanded our SAI NODE Marietta facility, initiated a scale-up that began in December 2023. This expansion included the strategic addition of 478 Bitmain bitcoin mining machines, increasing our hash rate capacity by approximately 68 PH/s. With this deployment, we now have around 150 PH/s operational hash rate for our self-mining operations, achieving a self-mining efficiency of approximately 27.3 J/TH.
We signed a Memorandum of Understanding (MoU) with Idaho Competitive Aquatics, LLC in August 2024 to develop a model case of our Advanced Computing Center Ecosystem (ACCE), which is to utilize recycled computing heat as a replacement of nature gas heaters at the aquatic center. Upon the completion of the project, the new ACCE system is expected to eliminate CO2 emission from original nature gas heating by up to 96,000 pounds per month and lowering facility heating costs by over 40% immediately.
We announced our latest All-in-One ACCE products, RACKCAB and HYDROCAB, which integrate server hosting system, CDU system and computing heat capture/recycling system into one standard cabinet. Our All-in-One ACCE product is developed as a low-cost and easy-to-install system for computing heat recycling. Both products are currently deployed and under installation at our customer.

Presence at In-Person Event

We participated in the 2024 SelectUSA Investment Summit in June. This prestigious event connects investors, companies, and industry experts, serving as a crucial platform for fostering business investment. Dr. Tao Wu showcased our groundbreaking initiatives, including our Computing Heat Recycling R&D Center in Marietta, Ohio, which features the innovative Advanced Computing Center Ecosystem (ACCE). Our participation underscores our commitment to introducing sustainable technology solutions to the U.S. market and advancing our strategic plan.

Community and Partnership Engagement

Our sponsored Computing Heat Recycle Center Education Program received a grant from the Marietta Community Foundation in May 2024 to support our continuing joint efforts to provide innovative learning opportunities for students while addressing food insecurity through produce grown in our computing heat recycling greenhouse.
We signed a Memorandum of Understanding with Al-Farabi Kazakh National University in June 2024, to advance educational initiatives and scientific research in Kazakhstan, focusing on joint programs and research projects that leverage our expertise in AI computing and sustainable energy solutions.

HEATNUC Business Line Update

We signed two Memorandums of Understanding (MoUs) in July 2024, aimed at enhancing cooperation within the small modular reactor (SMR) industry.
We appointed François Morin as our Nuclear Energy Strategy Consultant in July 2024, bringing his vast experience from roles such as Director at the World Nuclear Association. Mr. Morin will focus on evaluating the company’s expansion into the small modular reactor market, particularly in Asia and globally. His expertise will be instrumental in supporting our innovation and growth in the nuclear energy sector.
In August 2024, we became a member of the World Nuclear Association (WNA). As part of our membership, we participated in the World Nuclear Symposium 2024 held in September 2024.
In September 2024, we signed two MoUs that further solidify our position in the Middle Eastern nuclear and SMR markets. One MoU with Jiangsu Shentong Nuclear Equipment focuses on exporting control systems for nuclear power, and another with Shanghai Kaiquan Pump emphasizes joint production of nuclear and SMR equipment.
We signed two additional MoUs in October 2024, targeting further cooperation in the nuclear and SMR sectors. The MoU with Kinze Nuclear Innovation focuses on nuclear technology consulting and digitalization services, while the one with Jiangsu Jintonglingguang Nuclear Energy Technology aims to enhance the production of nuclear equipment.
In October 2024, we signed an MoU with Jiangsu Xuanrui Vibration Damping Equipment Co., focusing on product development and marketing in the large-scale nuclear power sector. This collaboration is set to enhance joint manufacturing and market expansion initiatives.

Financial Results for the Six Months Ended June 30, 2024

Revenues

Sales of Products. Sales of products represents the sales of high-performance digital asset mining machines to end customers. The revenue from sales of products was $1.3 million for the six months ended June 30, 2024, decreased by $0.8 million, or 37% from $2.1 million for the six months ended June 30, 2023. The decrease was mainly due to slack market conditions for mining machines, coupled with a reduction in mining profit.

Hosting Service. Hosting services includes all services related to hosting and daily maintenance of mining machines for customers. Our hosting revenue was derived from our hosting operations in Mexico, which was $0.05 million and $0.3 million for the six months ended June 30, 2024 and 2023, respectively. The decrease was mainly in connection with our hosting client gradually scaling down the operation in response to the reduction of bitcoin mining rewards after halving.

Mining Pool. Mining pool income includes revenues from the Company’s self-owned sai.plus mining pool, representing mining rewards from sai.plus mining pool. The Company allocates mining rewards to each pool participant, mainly the hosting clients, net of the pool operator fees based on the sharing mechanism predetermined and records as cost of mining pool revenue. Our mining pool revenues were $0.07 million and $0.2 million, respectively, for the six months ended June 30, 2024, and June 30, 2023.

Mining Revenue. Mining revenues represent mining rewards generated from the Company’s self-owned mining machines. The mining revenues are mainly derived from our operations in Mexico beginning in 2022 and self-constructed in Marietta in 2023. Our mining revenue were $1.7 million and $0.4 million, respectively for the six months ended June 30, 2024, and June 30, 2023. We launched our self-constructed site in July 2023, in which we have filled 2.8 MW as of June 30, 2024.

Cost of Revenues

Cost of revenues primarily included the cost for the purchase of high-performance digital asset mining machines, costs incurred for our self-mining activities, and the direct costs incurred for the provision of hosting services and mining rewards allocated to each provider of pool participant in exchange for their computing power contributed to the mining pool.

The cost of revenues increased by $0.5 million or 17%, from $2.8 million for the six months ended June 30, 2023, to $3.3 million for the six months ended June 30, 2024. The increase is mainly due to a $1.7 million increase in cost of self-mining operation, partially offset by a $0.8 million decrease in cost for the purchase of high-performance digital asset mining machines, a $0.2 million decrease in hosting service and a $0.2 million decrease in mining pool in the first half 2024.

Gross Margin

Our gross profit decreased by $0.3 million, from gross profit $0.2 million for the six months ended June 30, 2023, to a gross loss of $0.1 million for the six months ended June 30, 2024. Gross profit as a percentage of revenue (“gross margin”) was 6% for the six months ended June 30, 2023, and gross loss as a percentage of revenue was 4% for the six months ended June 30, 2024. The decrease of gross margin was mainly due to a reduction in block rewards following the halving event in April 2024 and an increase in network difficulty.

Selling and Marketing Expenses

Our selling and marketing expenses primarily consisted of staff costs and depreciation expenses to participate in marketing activities. Selling and marketing expenses decreased by $0.53 million, or 82%, from $0.65 million for the six months ended June 30, 2023, to $0.12 million for the six months ended June 30, 2024. The decrease was mainly due to a $0.12 million decrease in depreciation expense, a $0.15 million decrease in marketing expense, and a $0.23 million decrease in incentive plan amortization that was launched in December 2022.

General and Administrative Expenses

Our general and administrative expenses mainly consisted of salaries and bonuses, office related expenses and professional service fees. General and administrative expenses decreased by $0.84 million, or 27%, from $3.1 million for the six months ended June 30, 2023, to $2.26 million for the six months ended June 30, 2024. The decrease was mainly attributable to a decrease of $0.67 million in incentive plan amortization that was launched in December 2022, a decrease of $0.05 million in salaries, a decrease of $0.12 million in office expense.

Research and Development Expenses

Our research and development expenses mainly consisted of salaries, bonuses, and research related expenses. Research and development expenses decreased by $0.26 million, or 43%, from $0.6 million for the six months ended June 30, 2023, to $0.34 million for the six months ended June 30, 2024. The decrease was mainly attributable to the amortization of research and development employees’ incentive plan that was launched in December 2022 and salaries.

Other Income, net

Other income was $0.9 million for the six months ended June 30, 2024, which mainly comprises $0.89 million gain on changes in fair value of cryptocurrencies, $0.02 million gain on exchange.

Net loss

As a result of the foregoing, we had a net loss of $3.7 million for the six months ended June 30, 2023, and a net loss of $1.9 million for the six months ended June 30, 2024.

Liquidity

As of June 30, 2024, cash and cash equivalents, restricted cash were US$ 1.9 million.

About SAIHEAT
SAIHEAT Limited SAIH delivers integrated energy services for next-generation data centers. Its thermal module, HEATWIT, offers data center liquid cooling system and solutions for computing heat recycling. The power module, HEATNUC, focuses on global power resource development and modular nuclear power joint development. Formerly known as SAI.TECH Global Corporation, SAIHEAT became a publicly traded company on the Nasdaq Stock Market (NASDAQ) through a merger with TradeUP Global Corporation in May 2022. For more information on SAIHEAT, please visit https://www.saiheat.com

Safe Harbor Statement
This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The words “believe”, “expect”, “anticipate”, “project”, “targets”, “optimistic”, “confident that”, “continue to”, “predict”, “intend”, “aim”, “will” or similar expressions are intended to identify forward-looking statements. All statements other than statements of historical fact are statements that may be deemed forward-looking statements. These forward-looking statements include, but not limited to, statements concerning SAIHEAT and the Company’s operations, financial performance, and condition are based on current expectations, beliefs and assumptions which are subject to change at any time. SAIHEAT cautions that these statements by their nature involve risks and uncertainties, and actual results may differ materially depending on a variety of important factors such as government and stock exchange regulations, competition, political, economic, and social conditions around the world including those discussed in SAIHEAT’s Form 20-F under the headings “Risk Factors”, “Results of Operations” and “Business Overview” and other reports filed with the Securities and Exchange Commission from time to time. All forward-looking statements are applicable only as of the date it is made and SAIHEAT specifically disclaims any obligation to maintain or update the forward-looking information, whether of the nature contained in this release or otherwise, in the future.

Media Contact
pr@saiheat.com

Investor Relations Contact
ir@saiheat.com

SAIHEAT Limited
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except for number of shares and per share data)

	As of December 31, 2023			As of June 30, 2024
	(US$)			(US$)
	Audited			(Unaudited)
Assets
Current assets:
Cash and cash equivalents		3,176			1,884
Restricted cash		—			42
Accounts receivable		900			437
Inventories		44			7
Crypto Assets		6,709			6,382
Stablecoin assets		81			12
Deposits, prepayments and other current assets, net		1,341			1,647
Total current assets		12,251			10,411

Non-current assets:
Property and equipment, net		4,994			4,710
Operating lease right-of-use assets		830			705
Long term Assets		—			1,758
Total non-current assets:		5,824			7,173
Total assets		18,075			17,584

Liabilities and equity
Current liabilities:
Accounts payable		45			83
Operating lease liabilities-current		241			160
Accrued and other liabilities		359			255
Short term Borrowings		—			929
Commitments and contingent liabilities		—			—
Other payable and accrued liabilities		42			47
Total current liabilities		687			1,474
Non-current liabilities:
Operating lease liabilities-non-current		569			519
Total non-current liabilities		569			519
Total Liabilities		1,256			1,993

Shareholders’ equity:
Class A Ordinary shares ($0.0001 par value; 330,369,366 shares authorized, 15,004,316 and 14,413,299 shares issued and outstanding in June 30, 2024 and December 31, 2023.)		1			2
Class B Ordinary shares ($0.0001 par value; 9,630,634 shares authorized and outstanding in June 30, 2024 and December 31, 2023.)		1			1
Additional paid-in capital		48,680			49,399
Accumulated deficit		(31,345	)		(33,282	)
Accumulated other comprehensive income/(loss)		(518	)		(529	)
Total shareholders’ equity		16,819			15,591
Total Liabilities and shareholders’ equity		18,075			17,584

SAIHEAT Limited
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS)/INCOME
(In thousands, except for number of shares and per share data)

	For the Six Months Ended June 30,
	2023			2024
	(US$)			(US$)
	(Unaudited)			(Unaudited)
Revenues		3,026			3,204
Cost of revenues		2,847			3,319
Gross Profit/(Loss)		179			(115	)

Sales and marketing expenses		652			123
General and administrative expenses		3,105			2,265
Research and development expenses		609			344
Impairment of long-lived assets		—			—
Total operating expenses		4,366			2,732

Loss from operations		(4,187	)		(2,847	)
Other income, net		462			910
Loss before income tax		(3,725	)		(1,937	)
Income tax expenses		—			—
Net loss		(3,725	)		(1,937	)

Other comprehensive loss
Foreign currency translation loss		(131	)		(10	)
Total comprehensive loss		(3,856	)		(1,947	)

Loss per ordinary share
Basic and diluted		(0.1578	)		(0.0792	)

Weighted average number of ordinary shares outstanding:
Basic & Diluted		23,611,768			24,472,089

Markets News

Starbucks To $77? Here Are 10 Top Analyst Forecasts For Wednesday

13.11.2024 by admin

Top Wall Street analysts changed their outlook on these top names. For a complete view of all analyst rating changes, including upgrades and downgrades, please see our analyst ratings page.

Piper Sandler boosted the price target for Shopify Inc. SHOP from $67 to $94. Piper Sandler analyst Clarke Jeffries maintained a Neutral rating. Shopify shares closed at $108.92 on Tuesday. See how other analysts view this stock.
Needham cut the price target for Heron Therapeutics, Inc. HRTX from $5 to $4. Needham analyst Serge Belanger maintained a Buy rating. Heron Therapeutics shares closed at $1.28 on Tuesday. See how other analysts view this stock.
Goldman Sachs raised Live Nation Entertainment, Inc. LYV price target from $132 to $148. Goldman Sachs analyst Stephen Laszczyk maintained a Buy rating. Live Nation shares settled at $129.67 on Tuesday. See how other analysts view this stock.
Piper Sandler raised Shift4 Payments, Inc. FOUR price target from $93 to $120. Piper Sandler analyst Clarke Jeffries maintained an Overweight rating. Shift4 Payments shares closed at $99.12 on Tuesday. See how other analysts view this stock.
Phillip Securities boosted Spotify Technology S.A. SPOT price target from $420 to $485. Phillip Securities analyst Jonathan Wolleben downgraded the stock from Buy to Accumulate. Spotify shares closed at $419.39 on Tuesday. See how other analysts view this stock.
Redburn Atlantic cut Starbucks Corporation SBUX price target from $84 to $77. Redburn Atlantic analyst Edward Lewis downgraded the stock from Neutral to Sell. Starbucks shares closed at $98.80 on Tuesday. See how other analysts view this stock.
HC Wainwright & Co. increased the price target for MAG Silver Corp. MAG from $18 to $20. HC Wainwright & Co. analyst Heiko Ihle maintained a Buy rating. MAG Silver shares settled at $15.22 on Tuesday. See how other analysts view this stock.
Evercore ISI Group boosted Caterpillar Inc. CAT price target from $321 to $365. Evercore ISI Group analyst David Raso downgraded the stock from In-Line to Underperform. Caterpillar shares closed at $393.01 on Tuesday. See how other analysts view this stock.
Baird raised the price target for Natera, Inc. NTRA from $120 to $160. Baird analyst Catherine Ramsey maintained an Outperform rating. Natera shares closed at $135.12 on Tuesday. See how other analysts view this stock.
Needham increased Dayforce Inc DAY price target from $82 to $95. Needham analyst Scott Berg maintained a Buy rating. Dayforce shares closed at $78.96 on Tuesday. See how other analysts view this stock.

Read This Next:

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Finance News

Volkswagen Boosts Bet on Rivian’s EV Tech by $800 Million

13.11.2024 by admin

(Bloomberg) — Volkswagen AG raised investment plans in Rivian Automotive Inc. by $800 million, signaling its commitment to the US partner even as electric-vehicle demand softens and the incoming Trump administration threatens to curtail supportive policies.

The Missner Group and Greystar-Thackeray Partners Announce Joint Venture for Industrial Development in Chicago's Stockyards

13.11.2024 by admin

CHICAGO, Nov. 12, 2024 /PRNewswire/ — The Missner Group (TMG) and Greystar-Thackeray have formed a joint venture to develop a speculative industrial building at 4002 S. Princeton Ave. in Chicago’s historic Stockyards.

This partnership leverages TMG’s local expertise and Thackeray’s national reach to meet strong demand for industrial space in a prime Chicago location.

“We are excited to expand our relationship with Greystar-Thackeray. This project reflects our shared vision for delivering dynamic, high-performance industrial assets in Chicago,” said Barry Missner, CEO of The Missner Group. “The Stockyards location is ideal for businesses seeking close proximity to key regional and national infrastructure with access to a strong labor pool, and we look forward to bringing this facility to market.”

The joint venture is in addition to an existing value-add acquisitions venture between TMG and Greystar-Thackeray, launched in April 2024.

Slated to break ground in Q1 2025, the LEED-certified building will feature 20 exterior loading docks, two drive-in doors, 36 trailer positions, and parking for 208 cars. Located less than half a mile from a full Dan Ryan interchange, the site provides easy access to Pershing Road.

ABOUT THE MISSNER GROUP

Established in 1945, The Missner Group provides comprehensive and integrated real estate investment, development, acquisition, and construction services throughout the Midwest. TMG has completed over 2 billion dollars of construction and over 25 million square feet of development. For almost 80 years they have committed to the same mission and vision establishing themselves as a premier and preferred general contractor and developer throughout the Midwest.

View original content to download multimedia:https://www.prnewswire.com/news-releases/the-missner-group-and-greystar-thackeray-partners-announce-joint-venture-for-industrial-development-in-chicagos-stockyards-302303381.html

SOURCE The Missner Group

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Finance News

Cathie Wood Is Selling Tesla and Buying This "Magnificent Seven" Stock Instead

13.11.2024 by admin

Over the last several years, Cathie Wood of Ark Invest has emerged as one of Wall Street’s most intriguing personalities.

Most portfolio managers emphasize concepts found in textbooks such as valuation multiples or intrinsic value. Wood is different. Ark Invest offers investors access to a host of exchange-traded funds (ETFs), the majority of which are comprised of emerging technology businesses.

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However, to her credit, she balances Ark’s portfolio with some exposure to larger, more established opportunities as well. Among Wood’s blue chip holdings are most of the “Magnificent Seven,” many of which are leading the charge in the artificial intelligence (AI) landscape.

And in that segment of her portfolio, her recent sales of Tesla (NASDAQ: TSLA) and purchases of Amazon (NASDAQ: AMZN) look like a savvy shift.

Generally speaking, portfolio managers do not reveal the precise timing of their trades nor discuss the rationale behind their decisions. Sometimes, hedge fund managers will give interviews on financial news programs and discuss their recent investment moves, but oftentimes these revelations come long after any significant buying or selling was made.

But Wood and the Ark Invest team do things a bit differently. Every evening, Ark Invest sends out an email to its followers that breaks down what stocks the funds bought and sold during that day’s trading session. Moreover, Wood is often featured on CNBC or Yahoo! Finance, and isn’t shy about discussing her high-conviction plays.

For the last two weeks, Wood has consistently been trimming her Tesla position.

Category	Oct. 24	Oct. 28	Oct. 29	Oct. 30	Nov. 1	Nov. 4	Nov. 5	Nov. 7
Shares of Tesla sold	85,500	120,000	13,900	62,200	30,600	9,900	2,300	85,000

While such consistent sales may give the impression that Wood is running for the hills, there’s more here than meets the eye. Since Tesla reported its third-quarter earnings on Oct. 23, its shares have gained more than 30%.

Wood recently explained during a segment on Yahoo! Finance that she sees now as an appropriate time to take some profits and rebalance the Ark funds. Considering how volatile Tesla stock can be, a sell-off could come out of nowhere.

Throughout the month of October, Wood was taking Tesla profits and reinvesting in its megacap tech cohort, Amazon. Between Oct. 8 and Nov. 7, Ark Invest scooped up over 395,000 shares of Amazon.

Amazon’s diverse business spanning across e-commerce, cloud computing, advertising, streaming, grocery delivery, and subscription services via its Prime membership program make it a particularly attractive opportunity, regardless of the economic climate.

And now, through a savvy partnership with Anthropic, Amazon has the chance to leverage AI across its entire ecosystem — bolstering customer engagement across all of its business segments.

This strategy is already beginning to pay off, as Amazon’s profit machine is scaling at an unprecedented pace. With $48 billion in trailing-12-month free cash flow and $88 billion of cash and equivalents on the balance sheet, it is more than equipped to continue investing in AI-driven strategies that can accelerate its growth.

A person assessing different investment options — Image Source: Getty Images

The big idea that investors need to keep in mind here is that Wood is still incredibly bullish long-term on Tesla despite her recent profit-taking. Remember, Ark Invest placed a five-year price target of $2,600 on Tesla stock just a few months ago. Moreover, Tesla still remains a core pillar across Ark’s funds. I surmise Wood will continue to hold the stock to varying degrees over time.

I see doubling down on Amazon as a particularly smart move right now. Its shares are historically cheap on a price-to-free-cash-flow basis, and I would not be surprised to see Wood scoop up more as the company enters a new phase of growth featuring all things AI.

Before you buy stock in Amazon, consider this:

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John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Adam Spatacco has positions in Amazon and Tesla. The Motley Fool has positions in and recommends Amazon and Tesla. The Motley Fool has a disclosure policy.

Cathie Wood Is Selling Tesla and Buying This “Magnificent Seven” Stock Instead was originally published by The Motley Fool

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