DH Holdings, Inc. Reports Full Year 2020 Audited Financial Results

Rhea-AI Summary

TDH Holdings, Inc. (NASDAQ: PETZ) reported a dramatic drop in annual revenues for 2020, totaling $0.82 million, down 93.55% from $12.65 million in 2019. The gross loss improved to $0.04 million from $1.52 million, primarily due to halted unprofitable orders. Operating loss reduced by 72.32% to $1.93 million. Despite these losses, net loss attributable to common stockholders fell to $0.87 million, or a loss of $0.02 per share, from $8.63 million, or $0.41 per share, in 2019. The company cited uncompetitive pricing, operational suspensions, and COVID-19 disruptions as key challenges.

Positive

• Net loss improved to $0.87 million from $8.63 million in 2019.
• Loss per share decreased significantly from $0.41 to $0.02.
• Improvements in gross loss reported, from $1.52 million to $0.04 million.

Negative

• Revenues plummeted by 93.55% from $12.65 million in 2019 to $0.82 million.
• Continuous operational losses reported, with a significant operating loss of $1.93 million.
• Working capital deficit increased to $8.55 million from $7.27 million in 2019.
• COVID-19 caused significant disruptions, affecting sales and supply chain operations.

QINGDAO, China, April 26, 2021 /PRNewswire/ -- TDH Holdings, Inc. (NASDAQ: PETZ) ("TDH" or the "Company"), a PRC-based company that specializes in the development, manufacturing and sales of pet food products in China and beyond, announced today its financial results for the twelve months ended December 31, 2020.

Full Year 2020 Financial Highlights:

		For the Twelve Months Ended December 31,
($ millions, except per share data)		2020		2019		% Change
Revenues		$0.82		$12.65		-93.55%
Gross loss		($0.04)		($1.52)		97.25%
Gross loss margin		-5.13%		-12.04%		6.91 pp*
Loss from operations		($1.93)		($6.96)		72.32%
Operating loss margin		-236.25%		-55.02%		-181.23 pp*
Net loss attributable to common stockholders		($0.87)		($8.63)		89.86%
Loss per share - basic and diluted		($0.02)		($0.41)		95.35%
* pp: percentage points

• Revenues decreased by 93.55% from $12.65 million in fiscal year 2019 to $0.82 million in fiscal year 2020, with decrease in sales from overseas markets, domestic market and E-commerce platform. The decrease in total revenues in 2020 was mainly due to: (1) decrease in sales orders due to our uncompetitive sales prices for our products which made them less attractive to our customers; (2) partially suspension of our overseas E-commerce business due to the estimated gross loss; (3) suspension of our production and operations commencing in November 2019 and ending in May 2020 due to our defaults on loan repayments to financial institutions, claims from our suppliers and creditors and labor arbitration derived from our cutting down certain employees. The COVID-19 outbreak and spread further caused disruption in our supply chain, transportation and our sales activities from the beginning of 2020 to May 2020. As a result, we had the inability to fulfill customer orders on a timely manner and we received reduced sales orders from our customers and our sales volume significantly decreased in 2020 as compared to 2019.
• Gross loss was $0.04 million in fiscal year 2020 as compared to gross loss of $1.52 million in fiscal year 2019. The decrease in gross loss was a result of stop taking unprofitable orders, and the slightly improvement of our cost management.
• Operating loss was $1.93 million in fiscal year 2020 as compared to operating loss of $6.96 million in 2019. The continuous deficit from operation was mainly due to the fact that our sales revenue continued to decrease, while we continued to incur fixed overhead costs and high operating expenses during 2020. The decrease in loss from operations was the combined result of improvement in gross margin and decrease in our total operating expenses in 2020 as compared to 2019.
• Net loss attributable to common stockholders was $0.87 million, or a loss per share of $0.02, for the year of 2020 as compared to net loss of $8.63 million, or a loss per share of $0.41, for 2019.

Full Year 2020 Financial Results
Revenues
The Company generates its revenues from product sales, mainly including sales for pet chews, dried pet snacks and wet canned pet foods in oversea markets, domestic markets and by e-commerce platform. Revenue consists of the invoiced value for the sales, net of value-added tax ("VAT"), business tax, and applicable local government levies. For the year of 2020, total revenues decreased by $11.83 million, or 93.55%, to $0.82 million from $12.65 million in 2019. The decrease in total revenues in 2020 was mainly due to: (1) decrease in sales orders due to the uncompetitive selling prices of our products which made our products less attractive to our customers; (2) partial suspension of our overseas E-commerce business due to the estimated gross loss; (3) suspension of our production and operations commencing in November 2019 and ending in May 2020 due to our defaults on loan repayments to financial institutions, claims from our suppliers and creditors and labor arbitration derived from our cutting down certain employees. The COVID-19 outbreak and spread further caused disruption in our supply chain, transportation and our sales activities from the beginning of 2020 to May 2020. As a result, we had the inability to fulfill customer orders on a timely manner and we received reduced sales orders from our customers and our sales volume significantly decreased in 2020 as compared to 2019.

		For the Twelve Months Ended December 31,
		2020					2019					Y/Y Change
		Revenues ($'000)		% of Total			Revenues ($'000)		% of Total			Amount ($'000)		%
Overseas	$	226		27.77%		$	9,995		79.02%		$	-9,769		-97.74%
Domestic		575		70.52%			2,711		21.44%			-2,137		-78.80%
E-commerce		17		2.05%			84		0.66%			-67		-80.06%
less: sales tax and additional surcharge		-3		-0.34%			-142		-1.12%			139		-98.04%
Total	$	815		100.00%		$	12,648		100.00%		$	-11,833		-93.55%

 

Overseas sales decreased by $9.77 million, or 97.74%, to $0.23 million for the year of 2020 from $10.00 million for 2019. Domestic sales decreased by $2.14 million, or 78.80%, to $0.57 million for the year of 2020 from $2.71 million for 2019. The decrease was due to the decrease in sales orders due to our uncompetitive sales price, the COVID-19 outbreak and spread further caused disruption in our supply chain, transportation and our sales activities from the beginning of 2020 to May 2020. Sales from the e-commerce channel decreased by $0.07 million, or 80.06%, to $0.02 million for the year of 2020 from $0.08 million for 2019, due to suspension of our overseas E-commerce business as the losses continue to grow.

	For the Twelve Months Ended December 31,
		2020					2019					Y/Y Change
		Revenues ($'000)		% of Total			Revenues ($'000)		% of Total			Amount ($'000)		%
Pet chews	$	59		7.25%		$	6,470		51.15%		$	-6,411		-99.09%
Dried pet snacks		318		38.94%			4,618		36.51%			-4,301		-93.13%
Wet canned pet food		84		10.32%			1,310		10.36%			-1,226		-93.58%
Dental health snacks		20		2.44%			305		2.41%			-285		-93.48%
Baked pet biscuits		3		0.38%			87		0.69%			-84		-96.42%
Others		334		41.01%			-		0%			334		100.00%
Less: sales tax and additional surcharge		-3		-0.34%			-142		-1.12%			139		-98.04%
Total	$	815		100.00%		$	12,648		100.00%		$	-11,833		-93.55%

 

Sales of pet chews decreased by $6.41 million, or 99.09%, to $0.06 million for the year 2020 from $6.47 million for 2019. Sales of dried pet snacks decreased by $4.3 million, or 93.13%, to $0.32 million for the year 2020 from $4.62 million for 2019. Sales of wet canned pet food decreased by $1.23 million, or 93.58%, to $0.08 million for the year 2020 from $1.31 million for 2019. Sales of dental health snacks decreased by $0.29 million, or 93.48%, to $0.02 million for the year 2020 from $0.31 million for 2019. These decreases were due to the decrease in sales orders due to our uncompetitive selling prices, the COVID-19 outbreak and spread further caused disruption in our supply chain, transportation and our sales activities from the beginning of 2020 to May 2020. Sales of pet chews, dried pet snacks, wet canned pet food, and dental health snacks accounted for 7.25%, 38.93%, 10.32%, and 2.44%, respectively, for the year of 2020, compared to 51.15%, 36.51%, 10.36%, and 2.41%, respectively, for 2019.

Cost of revenues
Cost of revenues consists primarily of raw materials, labor and factory overhead. Cost of revenues decreased by $13.31 million, or 93.95%, to $0.86 million for the year of 2020 from $14.17 million for 2019. This decrease in cost of revenues was mainly due to the 93.55% decrease in our total net revenue for the year ended December 31, 2020. As a percentage of revenues, cost of revenues was 105.13% for the year 2020, compared to 112.04% for 2019.

Gross loss and gross loss margin
Gross loss was $0.04 million for the year of 2020, compared to gross profit of $1.52 million for 2019. Gross loss margin was 5.13% for the year 2019, compared to gross loss margin of 12.04% for 2020.

Operating expense
Operating expense consists of selling expenses, general and administrative expenses and research and development expenses.

Selling expenses decreased by $0.8 million, or 87.18%, to $0.12 million for the year 2020 from $0.92 million for 2019. The decrease in our selling expense was in line with our reduced sales activities and decreased revenue in 2020.

General and administrative expenses decreased by $1.94 million, or 52.29%, to $1.77 million for the year 2020 from $3.70 million for 2019. The main reason for the decrease was because we have cut-down number of employees as a result of our business strategy adjustment when our business scale reduced in 2020, as a result, our salary paid to employees, office expenses incurred and business consulting expenses all decreased in 2020 as compared to 2019.

Impairment of long-lived assets other than goodwill charge was $Nil in 2020, as compared to $0.81 million in 2019.

As a result, total operating expenses decreased by $3.55 million, or 65.34%, to $1.88 million for the year of 2020 from $5.44 million for 2019. As a percentage of total revenues, total operating expenses was 231.11% for the year of 2020, compared to 42.98% for 2019.

Operating loss and operating loss margin
Loss from operations was $1.93 million for the year of 2020, compared to operating loss of $6.96 million for 2019. The continuous loss from operation was mainly due to decreased sales revenue.

Net loss and loss per share
Net loss was $0.87 million for the year of 2020, compared to net loss of $8.63 million for 2019. Net loss attributable to common stockholders was $0.87 million, or loss per share of $0.02, for the year of 2020. This is compared to net loss attributable to common stockholders of $8.63 million, or loss per share of $0.41, for 2019.

Financial Conditions
As of December 31, 2020, the Company had cash, cash equivalents and restricted cash of $6.75 million, compared to $6.50 million at December 31, 2019. Accounts receivable and inventories were $0.17 million and $0.25 million, respectively, as of December 31, 2020, compared to $0.02 million and $0.47 million, respectively, at the end of 2019. Total working capital deficit was $8.55 million as of December 31, 2020, as compared to working capital deficit of $7.27 million at the end of 2019.

Net cash used in operating activities was $2.63 million for the year of 2020, compared to $5.63 million for 2019. Net cash provided by investing activities was $3.36 million for the year of 2020, compared to $0.11 million for 2019. Net cash used in financing activities was $0.59 million for the year of 2020, compared to $9.52 million net cash provided by financing activities in 2019.

Going Concern
As reflected in our consolidated financial statements, our revenue decreased by approximately $11.83 million from approximately $12.65 million in 2019 to approximately $0.82 million in 2020. Net cash used in operating activities amounted to approximately $2.63 million for the year ended December 31, 2020. As of December 31, 2020, we had working capital deficit of approximately $8.55 million as compared to working capital deficit of approximately $7.3 million as of December 31, 2019. In addition, starting from November 2019, we temporarily suspended our manufacturing activities due to operating inefficiency, the suspension of our manufacturing activities led to reduced sales and operating cash flows, and consequently caused our inability to make the payments to settle vendor bills and repay the bank loans upon maturity. As a result, in late 2019, some of our vendors and several financial institutions initiated lawsuits against us for payment. Our inability to resolve these matters satisfactorily had material adverse effect on the Company's financial condition in 2020. Furthermore, in December 2019, a novel strain of coronavirus (COVID-19) surfaced. COVID-19 spread rapidly throughout China and worldwide, which caused significant volatility in the PRC and international markets. There has been significant uncertainty around the breadth and duration of business disruptions related to COVID-19, as well as its impact on the PRC and international economies. To reduce the spread of the COVID-19, the Chinese government has employed measures including city lockdowns, quarantines, travel restrictions, suspension of business activities and school closures. Due to difficulties resulting from the COVID-19 outbreak and all the other aspects of our operating challenges, including, but not limited to, the extending temporary closure of our facilities and operations to until the middle of May 2020, pending lawsuits for supplier arrears, bank loans and employee compensation, limited support from the Company's employees, delayed access to raw material supplies, reduced customer sales orders, and our inability to promote the sales to customers on a timely basis, our revenue for the year ended December 31, 2020 decreased significantly. Furthermore, certain premises including factory building and warehouse have been frozen for a period of three years following a court order issued in April 2020. These facts raised substantial doubt about our ability to continue as a going concern for the next 12 months from the date of this report.

Our plan to alleviate the substantial doubt about our ability to continue as a going concern include attempting to improve our business profitability, our ability to generate sufficient cash flow from our operations to meet our operating needs on a timely basis, obtain additional working capital funds through debt and equity financings to eliminate inefficiencies in order to meet our anticipated cash requirements. We also plan to evaluate and identify suitable strategic or acquisition opportunities, complete such transactions on commercially favorable terms, or successfully integrate business operations, infrastructure and management philosophies of acquired businesses and companies. Given the operating difficulties and the COVID-19 outbreak, we resumed our business activities on May 18, 2020, with the support of the local government. We believe the negative impact of the COVID-19 coronavirus outbreak on our business to be temporary and for our sales activities have started to run as normal, which will help us to increase our sales in the near future. Due to the effects discussed above, to the extent that we experience a more adverse operating environment, incur unanticipated capital expenditures, or if we decide to accelerate our growth, then additional financing may be required. Currently, we are working to improve our liquidity and capital sources primarily through financial support from our principal shareholder and explore debt or equity financing possibilities. In order to fully implement our business plan and sustain continued growth, we may also need to raise capital from outside investors. On December 2, 2020, we entered into subscription agreements with four accredited investors for the sale of 9,100,000 of the Company's common shares at the price $0.30 per share for the gross proceeds of approximately $2.73 million. We received the $2.73 million proceeds in April 2021. Our expectation, therefore, is that we will seek to access the capital markets in both the U.S. and China to obtain additional funds as needed. At the present time, however, we do not have commitments of funds from any third party. No assurance can be given that additional financing, if required, would be available on favorable terms or at all. If we do not secure capital needed for our operations, we may have to temporarily suspend or cease our operations.

Notice
Rounding amounts and percentages: Certain amounts and percentages included in this press release have been rounded for ease of presentation. Percentage figures included in this press release have not in all cases been calculated on the basis of such rounded figures, but on the basis of such amounts prior to rounding. For this reason, certain percentage amounts in this press release may vary from those obtained by performing the same calculations using the figures in the financial statements. In addition, certain other amounts that appear in this press release may not sum due to rounding.

About TDH Holdings, Inc.
Founded in April 2002, TDH Holdings, Inc. (the "Company") (NASDAQ: PETZ), is a developer, manufacturer and distributer of a variety of pet food products under multiple brands that are sold in the China, Asia and Europe. More information about the Company can be found at www.tiandihui.com.

Safe Harbor Statement
This news release contains forward-looking statements.  Without limiting the generality of the foregoing, words such as "may," "will," "expect," "believe," "anticipate," "intend," "could," "estimate" or "continue" or the negative or other variations thereof or comparable terminology are intended to identify forward-looking statements. These statements are only predictions, uncertainties and other factors may cause the Company's actual results, levels of activity, performance or achievements to be materially different from any future results, levels or activity, performance or achievements expressed or implied by these forward-looking statements. Specifically, the Company's statements regarding, among others, its growth and business outlook, the Company's ability to execute on its business plan, secure necessary capital to sustain and maintain its operations, its ability to resume its operations at the previous levels, its ability to successfully resolve various legal proceedings in which it is involved, are forward-looking statements. In addition, any statements that refer to expectations, projections or other characterizations of future events or circumstances are forward-looking statements. These forward-looking statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict and many of which are beyond the control of the Company.  Actual results may differ from those projected in the forward-looking statements due to risks and uncertainties that are described more fully in the Company's public reports filed with the U.S. Securities and Exchange Commission. Although the Company believes that the assumptions underlying the forward-looking statements are reasonable, any of the assumptions could prove inaccurate and, therefore, there can be no assurance that the results contemplated in forward-looking statements will be realized.  In light of the significant uncertainties inherent in the forward-looking information included herein, the inclusion of such information should not be regarded as a representation by TDH or any other person that their objectives or plans will be achieved. The Company does not undertake any obligation to revise the forward-looking statements contained herein to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

TDH HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
	December 31,			December 31,
	2020			2019
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	6,566,549		$	5,114,175
Restricted cash		182,515			1,390,403
Short-term investments		3,138,578			-
Accounts receivable, net		168,499			21,657
Advances to suppliers, net		41,088			39,806
Inventories, net		247,245			473,216
Prepayments and other current assets, net		172,481			153,633
Total current assets		10,516,955			7,192,890
NON-CURRENT ASSETS:
Property, plant and equipment, net		6,636,995			6,562,669
Land use rights, net		1,009,005			973,224
Long-term investments		-			71,757
Operating lease right-of-use assets		19,103			-
Operating lease right-of-use assets - related parties		270,852			286,670
Total non-current assets		7,935,955			7,894,320
Total assets	$	18,452,910		$	15,087,210
LIABILITIES AND STOCKHOLDERS' EQUITY  (DEFICIT)
CURRENT LIABILITIES:
Accounts payable	$	3,209,763		$	3,436,939
Accounts payable - related parties		124,715			116,834
Notes payable		-			908,008
Advances from customers		90,834			116,155
Bank overdrafts		78,320			78,320
Short-term loans		8,391,323			7,624,061
Short-term loans - related parties		985,883			892,510
Taxes payable		60,729			57,521
Due to related parties		42,021			39,387
Operating lease liabilities, current		9,913			-
Operating lease liabilities - related parties, current		195,231			137,347
Other current liabilities		5,882,164			1,054,818
Total current liabilities		19,070,896			14,461,900
NON-CURRENT LIABILITIES:
Deferred tax liabilities		-			1,036
Operating lease liabilities - related party, non-current		274,794			286,875
Total liabilities		19,345,690			14,749,811
STOCKHOLDERS' EQUITY (DEFICIT):
Common stock ($0.001 par value; 200,000,000 shares authorized; 45,849,995 shares issued and outstanding at December 31, 2020 and 2019)		45,850			45,850
Additional paid-in capital		21,963,570			21,963,678
Statutory reserves		160,014			160,014
Accumulated deficit		-22,849,319			-21,974,651
Accumulated other comprehensive income (loss)		-212,895			142,516
Total TDH Holdings, Inc. stockholders' equity (deficit)		-892,780			337,407
Noncontrolling interest		-			-8
Total stockholders' equity (deficit)		-892,780			337,399
Total liabilities and stockholders' equity (deficit)	$	18,452,910		$	15,087,210

 

TDH HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
	For The Years Ended December 31,
	2020			2019			2018
Net revenue	$	815,225		$	12,455,414		$	22,154,506
Net revenue -related parties		-			192,841			1,519,531
Total revenue		815,225			12,648,255			23,674,037
Cost of revenue		857,060			13,992,499			26,278,300
Cost of revenue - related parties		-			178,636			1,448,533
Total cost of revenue		857,060			14,171,135			27,726,833
Gross loss		-41,835			-1,522,880			-4,052,796
Operating expenses:		-
Selling expense		117,993			920,237			4,535,945
General and administrative expense		1,766,109			3,702,035			2,792,858
Research and development expense		-			-			1,062,582
Impairment of long-lived assets other than goodwill		-			813,344			-
Impairment of goodwill		-			-			1,599,591
Total operating expenses		1,884,102			5,435,616			9,990,976
Loss from operations		-1,925,937			-6,958,496			-14,043,772
Interest expense		-1,180,489			-1,378,755			-233,101
Government subsidies		8,651			129,255			81,882
Other income		137,163			1,189			20,242
Other expense		-35,197			-290,655			-26,992
Investment income, net		2,120,241			-			-
Loss from equity method investment		-			-127,965			-17,524
Total other income (expenses)		1,050,369			-1,666,931			-175,493
Loss before income tax benefit		-875,568			-8,625,427			-14,219,265
Income tax benefit		-900			-			-
Net loss		-874,668			-8,625,427			-14,219,265
Less: Net loss attributable to noncontrolling interest		-			-8			-40
Net loss attributable to TDH Holdings, Inc.	$	-874,668		$	-8,625,419		$	-14,219,225
Comprehensive loss
Net loss	$	-874,668		$	-8,625,427		$	-14,219,265
Other comprehensive loss
Foreign currency translation adjustment		-355,411			-100,954			-65,123
Total comprehensive loss	$	-1,230,079		$	-8,726,381		$	-14,284,388
Less: Comprehensive loss attributable to noncontrolling interest		-			-8			-347
Comprehensive loss attributable to TDH Holdings, Inc.	$	-1,230,079		$	-8,726,373		$	-14,284,041
Loss per common share attributable to TDH Holdings, Inc.
Basic	$	-0.02		$	-0.41		$	-1.49
Diluted	$	-0.02		$	-0.41		$	-1.49
Weighted average common shares outstanding
Basic		45,849,995			21,022,598			9,558,493
Diluted		45,849,995			21,022,598			9,558,493

 

TDH HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
	For The Years Ended December 31,
	2020			2019			2018
Cash flows from operating activities
Net loss	$	-874,668		$	-8,625,427		$	-14,219,265
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization expense		391,351			571,528			395,355
Fair value change of short-term investments		-2,120,241			-			-
Loss from equity method investment		-			127,965			17,524
Loss on disposal of subsidiaries		-			5,018			-
Impairment of goodwill		-			-			1,599,591
Impairment of long-lived assets other than goodwill		-			813,344			-
Inventory write-down		42,241			518,119			1,668,508
Allowance for credit losses		74,190			659,569			-
Deferred income taxes		-1,106			-3,861			-591
Loss (gain) on disposal of property, plant and equipment		-16,870			308,003			-
Non-cash lease expense		33,944			89,176			-
Gain on forgiveness of short-term loan	$	-6,265		$	-		$	-
Changes in operating assets and liabilities:
Accounts receivable, net		-112,177			329,042			1,302,573
Accounts receivable - related parties, net		-			306,301			-778,516
Inventories, net		201,730			2,009,862			4,203,927
Operating lease liabilities		-9,382			-			-
Operating lease liabilities – related parties		16,262			16,404			-
Due from related parties, net		-			-2,206			-
Due to related parties		-			14,387			18,142
Advances to suppliers, net		-12,179			36,322			569,723
Prepayments and other current assets, net		-29,363			516,018			-291,336
Accounts payable		-416,506			-2,775,356			1,870,157
Accounts payable - related parties		-			-6,703			19,848
Interest payable		1,065,277			260,417			119,712
Interest payable - related parties		43,835			-			-
Notes payable		-			-1,046,257			1,204,910
Taxes payable		-			13,797			32,733
Advances from customers		-31,366			-42,923			-60,254
Advances from customer - related party		-			-			-7,397
Other current liabilities		-866,962			280,843			160,914
Net cash used in operating activities	$	-2,628,255		$	-5,626,618		$	-2,173,742
Cash flows from investing activities
Payments to acquire property, plant and equipment		-47,086			-121,560			-5,627,422
Proceeds from disposal of property, plant and equipment		-			233,747			-
Payments to acquire land use rights		-			-			-854,221
Acquisition of businesses, net of cash acquired		-			-			19,888
Disposal of subsidiaries		-			83			-
Loans to related parties		-			-			-132,147
Repayments from related parties		-			1,282			235,049
Payments for long-term investments		-			-			-235,605
Purchase of short-term investments		-38,743,908			-			-
Proceeds from sale of short-term investments		42,146,183			-			-
Net cash provided by (used in) investing activities	$	3,355,189		$	113,552		$	-6,594,458
Cash flows from financing activities
Proceeds from issuance of common shares		-			6,760,000			-
Purchase of noncontrolling interest		-100			-			-
Collection of stock subscription receivable		-			-			100,000
Proceeds from related parties		-			-			5,306
Repayments to related parties		-			-1,000			-385,420
Proceeds from bank overdrafts		-			78,162			-
Proceeds from short-term loans		107,829			1,046,275			8,400,090
Repayments of short-term loans		-746,437			-2,073,177			-1,508,056
Proceeds from short-term loans - related parties		49,350			4,791,403			1,176,690
Repayments of short-term loans - related parties		-			-1,080,947			-60,490
Net cash provided by (used in) financing activities	$	-589,358		$	9,520,716		$	7,728,120
Effect of exchange rate changes on cash, cash equivalents and restricted cash		106,910			-203,577			96,808
Net change in cash, cash equivalents and restricted cash		244,486			3,804,073			-943,272
Cash, cash equivalents and restricted cash, beginning of the year		6,504,578			2,700,505			3,643,777
Cash, cash equivalents and restricted cash, end of the year	$	6,749,064		$	6,504,578		$	2,700,505
Supplemental cash flow information
Interest paid	$	38,362		$	1,118,338		$	113,389
Income taxes paid	$	146		$	-		$	-
Non-cash investing and financial activities
Accrued interest added to short-term loan – related party	$	-		$	126,697		$	-
Operating expenses paid by related parties	$	-		$	-		$	157,094
Liabilities assumed in connection with purchase of property, plant and equipment	$	14,592		$	51,196		$	38,636
Notes payable reclassified to short-term loans	$	908,850		$	479,724		$	-
Receivables from related parties settled with payables to related parties	$	-		$	28,694		$	114,707
Receivables from common stock subscription settled with loan payables to a related party	$	-		$	4,240,000		$	-
Shares issuance in connection with acquisition of subsidiaries	$	-		$	-		$	1,053,020
Short-term loans settled by transferring an equity investment to the creditor	$	70,708		$	-		$	-
Reconciliation of cash, cash equivalents, and restricted cash to the consolidated balance sheets
Cash and cash equivalents	$	6,566,549		$	5,114,175		$	893,020
Restricted cash	$	182,515		$	1,390,403		$	1,807,485
Total cash, cash equivalents, and restricted cash	$	6,749,064		$	6,504,578		$	2,700,505

 

View original content:http://www.prnewswire.com/news-releases/dh-holdings-inc-reports-full-year-2020-audited-financial-results-301277140.html

SOURCE TDH Holdings, Inc.

FAQ

What were the financial results for TDH Holdings (PETZ) for 2020?

TDH Holdings reported revenues of $0.82 million in 2020, a significant decline of 93.55% from $12.65 million in 2019.

How did TDH Holdings' net loss change in 2020?

The net loss for TDH Holdings decreased to $0.87 million in 2020 compared to a net loss of $8.63 million in 2019.

What factors contributed to the revenue decline for PETZ in 2020?

Key factors included uncompetitive sales prices, operational suspensions, and disruptions caused by the COVID-19 pandemic.

What impact did COVID-19 have on TDH Holdings' operations?

COVID-19 significantly disrupted TDH Holdings' supply chain and sales activities, leading to a substantial decrease in orders and revenue.

What is the outlook for TDH Holdings (PETZ) following their 2020 financial results?

The company aims to improve profitability and generate cash flow, while exploring additional financing and strategic opportunities.