AirNet Technology Inc. Announces Unaudited Financial Results for the First Half of 2023
- Reported net loss of $3,925,000 for the first half of 2023
- Negative working capital of $66,428 as of June 30, 2023
- History of operating losses and negative operating cash flows
- Significant net loss and negative working capital raise substantial doubt about the company's ability to continue as a going concern
Insights
Financial performance is a critical indicator of a company's health and future prospects. In the case of AirNet Technology Inc., the reported unaudited financial results for the first half of 2023 show a significant decline in cash and cash equivalents, from $2,700 thousand to $132 thousand, which is concerning as it may affect the company's ability to fund operations and invest in growth opportunities. The net loss has also widened from $1,008 thousand to $3,693 thousand year-over-year, which suggests that the company is facing increased financial challenges.
Moreover, the accumulated deficit has grown and the company now has a negative working capital of $66,428 thousand as of June 30, 2023. This is a red flag for liquidity issues and potential solvency concerns. The going concern note indicates that there is substantial doubt about the company's ability to continue as a going concern without the risk of bankruptcy.
For stakeholders, this financial snapshot could signal potential restructuring, the need for additional capital, or operational changes to reverse the negative trends. Investors should closely monitor the company's next steps and management's plans to address these financial challenges.
Market positioning and competitive landscape are essential for understanding a company's potential to recover from financial difficulties. AirNet Technology Inc. operates in the advertising industry, which is highly competitive and sensitive to economic cycles. The significant drop in revenues, from $2,541 thousand to $581 thousand, indicates that the company may be losing its market share or facing reduced demand for its services.
In such a dynamic industry, innovation and strategic partnerships are often key to survival and growth. The company's ability to adapt to market changes and consumer behavior will be crucial. Stakeholders should evaluate the company's strategic initiatives in the context of industry trends, such as the shift towards digital and targeted advertising, to assess its long-term viability.
Investors often look for growth potential and financial stability in a company. The data presented suggests that AirNet Technology Inc. is currently facing significant financial headwinds. The increasing net loss and negative equity position may deter potential investors and could impact the company's stock performance negatively.
However, it's important to consider the broader economic context and any sector-specific challenges that may be influencing these financial results. Investors should also consider the company's historical performance, management's expertise and any forward-looking statements or strategic plans provided by the company to address its current financial situation.
While the current financials are concerning, they do not necessarily preclude a turnaround with the right strategic actions. Investors should weigh the risks associated with the company's financial health against the potential rewards of any recovery or strategic moves that could be made.
BEIJING, Dec. 26, 2023 (GLOBE NEWSWIRE) -- AirNet Technology Inc., formerly known as AirMedia Group Inc. (“AirNet” or the “Company”) (Nasdaq: ANTE), today announced its unaudited financial results for the first half of 2023.
| AIRNET TECHNOLOGY INC. UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (In U.S. dollars in thousands, except share and per share data) | |||||||
| As of December 31, | As of June 30, | ||||||
| 2022 | 2023 | ||||||
| (Unaudited) | |||||||
| Assets | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 2,700 | $ | 132 | |||
| Accounts receivable, net | 1,421 | 552 | |||||
| Other current assets, net | 65,072 | 28,527 | |||||
| Amount due from related parties | 601 | 199 | |||||
| Total current assets | 69,794 | 29,410 | |||||
| Property and equipment, net | 10,885 | 10,447 | |||||
| Long-term investments, net | 34,083 | 30,654 | |||||
| Long-term deposits, net | 371 | 62 | |||||
| Operating lease right-of-use assets | 16 | 8 | |||||
| TOTAL ASSETS | 115,149 | 70,581 | |||||
| Liabilities | |||||||
| Current liabilities: | |||||||
| Short-term loan | 12,822 | 9,912 | |||||
| Accounts payable | 15,774 | 16,451 | |||||
| Accrued expenses and other current liabilities | 11,277 | 11,041 | |||||
| Deferred revenue | 7,745 | 7,366 | |||||
| Amount due to related parties | 1,174 | 1,207 | |||||
| Income tax payable | 1,865 | 1,232 | |||||
| Operating lease liability, current | 10 | 12 | |||||
| Consideration received from buyer | 29,000 | 27,580 | |||||
| Payable of earnout commitment | 22,120 | 21,037 | |||||
| Total current liabilities | 101,787 | 95,838 | |||||
| Non-current liabilities: | |||||||
| Operating lease liability, non-current | 9 | - | |||||
| Total liabilities | 101,796 | 95,838 | |||||
AIRNET TECHNOLOGY INC. UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS - CONTINUED (In U.S. dollars in thousands, except share and per share data) | ||||||||
| As of December 31, | As of June 30, | |||||||
| 2022 | 2023 | |||||||
| (Unaudited) | ||||||||
| Equity | ||||||||
| Ordinary shares ( | 359 | 181 | ||||||
| Additional paid-in capital | 332,746 | 298,685 | ||||||
| Treasury stock (245,818 shares as of December 31, 2022 and June 30, 2023) | (1,148 | ) | (1,148 | ) | ||||
| Accumulated deficit | (318,239 | ) | (322,164 | ) | ||||
| Accumulated other comprehensive income | 32,044 | 31,368 | ||||||
| Total AirNet Technology Inc.'s shareholders' equity | 45,762 | 6,922 | ||||||
| Non-controlling interests | (32,409 | ) | (32,179 | ) | ||||
| Total equity (deficits) | 13,353 | (25,257 | ) | |||||
| TOTAL LIABILITIES AND DEFICITS | $ | 115,149 | $ | 70,581 | ||||
AIRNET TECHNOLOGY INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In U.S. dollars in thousands, except share and per share data) | ||||||||
| Six months ended June 30, | ||||||||
| 2022 | 2023 | |||||||
| (Unaudited) | (Unaudited) | |||||||
| Revenues | $ | 2,541 | $ | 581 | ||||
| Business tax and surcharges | (53 | ) | (43 | ) | ||||
| Net revenues | 2,488 | 538 | ||||||
| Cost of revenues | (2,358 | ) | (1,394 | ) | ||||
| Gross profit (loss) | 130 | (856 | ) | |||||
| Operating expenses: | ||||||||
| Selling and marketing | (748 | ) | (359 | ) | ||||
| General and administrative | (3,435 | ) | (1,712 | ) | ||||
| Research and development | (18 | ) | (16 | ) | ||||
| Total operating expenses | (4,201 | ) | (2,087 | ) | ||||
| Loss from operations | (4,071 | ) | (2,943 | ) | ||||
| Interest expense, net | (448 | ) | (330 | ) | ||||
| Loss from long-term investments | (1,275 | ) | (618 | ) | ||||
| Other income, net | 4,798 | 199 | ||||||
| Loss from operations before income taxes | (996 | ) | (3,692 | ) | ||||
| Income tax expenses | (12 | ) | (1 | ) | ||||
| Net loss | (1,008 | ) | (3,693 | ) | ||||
| Less: Net income from operations attributable to non-controlling interests | 756 | 232 | ||||||
| Net loss from operations attributable to AirNet Technology Inc.'s shareholders | $ | (1,764 | ) | $ | (3,925 | ) | ||
| Net loss attributable to AirNet Technology Inc.’s shareholders per ordinary share | ||||||||
| - Basic and diluted | $ | (0.27 | ) | $ | (1.10 | ) | ||
| Net loss attributable to AirNet Technology Inc.’s shareholders per ADS | ||||||||
| - Basic and diluted | $ | (0.27 | ) | $ | (1.10 | ) | ||
| Weighted average ordinary shares used in calculating net loss per ordinary share | ||||||||
| - Basic and diluted | 6,612,793 | 3,575,714 | ||||||
| Weighted average ADS used in calculating net loss per ADS | ||||||||
| - Basic and diluted | 6,612,793 | 3,575,714 | ||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Going concern
The Group has a history of operating losses and negative operating cash flows and has negative working capital of
The Group plans to strengthen the air travel media network business to drive its revenues and bring in cash to keep operation. In addition, the Group tried to reach an agreement to transfer its
Forward-Looking Statements
This announcement contains forward-looking statements within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “is expected to,” “anticipates,” “aim,” “future,” “intends,” “plans,” “believes,” “are likely to,” “estimates,” “may,” “should” and similar expressions. The Company may also make written or oral forward-looking statements in its reports filed with, or furnished to, the U.S. Securities and Exchange Commission, in its annual reports to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Forward-looking statements are based upon management’s current expectations and current market and operating conditions, and involve inherent risks and uncertainties, all of which are difficult to predict and many of which are beyond the Company’s control, which may cause its actual results, performance or achievements to differ materially from those in the forward-looking statements. Further information is included in the Company’s filings with the U.S. Securities and Exchange Commission. All information provided in this announcement is as of the date of this announcement, and the Company does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under law.
Company Contact
Linda Wang
Investor Relations
AirNet Technology Inc.
Tel: +86-10-8460-8678
Email: ir@ihangmei.com
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