TDH Holdings, Inc. Reports Full Year 2021 Audited Financial Results

Rhea-AI Summary

TDH Holdings (NASDAQ: PETZ) reported its financial results for the full year ending December 31, 2021, revealing a revenue increase of 33.94% to $1.09 million from $0.82 million in 2020. However, pet food sales plummeted 40.5% to $0.49 million, primarily due to COVID-19 impacts. The company's operating loss grew to $4.61 million, up 121.11% from 2020. Net loss attributable to shareholders surged to $6.12 million or $0.10 per share, compared to a $0.87 million loss in 2020. The acquisition of restaurant businesses contributed $0.61 million to revenue but did not offset declines in the pet food segment.

Positive

• Revenue increased by 33.94% to $1.09 million in 2021.
• Acquired restaurant business contributed an additional $0.61 million in revenue.

Negative

• Pet food sales declined by 40.5% to $0.49 million.
• Operating loss increased to $4.61 million, a 121.11% rise from 2020.
• Net loss attributable to common stockholders increased to $6.12 million.

QINGDAO, China, April 29, 2022 /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, 2021.

Full Year 2021 Financial Highlights:

		For the Twelve Months Ended December 31,
($ millions, except per share data)		2021		2020		% Change
Revenues		$1.09		$0.82		33.94%
Gross loss		($0.02)		($0.04)		50.82%
Gross loss margin		-1.88%		-5.13%		3.19 pp*
Loss from operations		($4.61)		($1.93)		121.11%
Operating loss margin		-422.58%		-236.25%		-153.76 pp*
Net loss attributable to common stockholders		($6.12)		($0.87)		-498.21%
Loss per share - basic and diluted		($0.10)		($0.02)		-150.00%
* pp: percentage points

• Revenues increased by 33.94% from $0.82 million in fiscal year 2020 to $1.09 million in fiscal year 2021, our sales of pet food decreased from approximately $0.82 million in fiscal year 2020 to approximately $0.49 million in fiscal year 2021, or by approximately 40.5%, which was offset by an increase in revenue from our newly acquired restaurant business in Kansas by approximately $0.61 million. The decrease of pet food revenue in 2021 was mainly due to: (1) the continuous development of COVID-19, we had to close a factory and stop production for a period of time again in 2021, which caused the delay of orders and some customers canceled their orders, decreasing our pet food sales revenue and sales volume; (2) the cost of raw materials required for pet food production has risen to a certain extent due to the COVID-19 pandemic and general inflation, which led to our reduced production and sales of pet food products during 2021; and (3) we declined taking orders that were historically unprofitable. As a result, our pet food sales volume significantly decreased in 2021 as compared to 2020. On the other side, on October 31, 2021, we acquired a 51% equity interests of Far Ling's Inc. and 100% equity interests of Bo Ling's Chinese Restaurant, Inc. This resulted in an increase of $0.6 million in revenue from our restaurant business operations segment.
• Gross loss was $0.02 million in fiscal year 2021 as compared to gross loss of $0.04 million in fiscal year 2020. The decrease in gross loss was a result of declining to take historically unprofitable orders, and new profits generated from our restaurant business operations segment.
• Operating loss was $4.61 million in fiscal year 2021 as compared to an operating loss of $1.93 million in fiscal year 2020. The continuous deficit from operations was mainly due to the fact that our pet food sales revenue continued to decrease, while we continued to incur fixed overhead costs and high operating expenses during fiscal year 2021.
• Net loss attributable to common stockholders was $6.12 million, or a loss per share of $0.10, for the fiscal year 2021 as compared to net loss of $0.87 million, or a loss per share of $0.02, for fiscal year 2020.

Full Year 2021 Financial Results

Revenues

The Company's revenue sources include pet food sales and restaurant business operations.  Pet food sales mainly include sales for pet chews, dried pet snacks and wet canned pet foods in overseas markets, domestic markets and by e-commerce. We started to generate revenue from restaurant business operations in the last quarter of fiscal year 2021. Total revenues increased by 33.94% from $0.82 million in fiscal year 2020 to $1.09 million in fiscal year 2021, our sales of pet food have decreased from approximately $0.82 million in fiscal year 2020 to $0.49 million in fiscal year 2021, or by approximately 40.5%, offset by an increase in revenue from our newly acquired restaurant business by approximately $0.61 million. The decrease of pet food revenue in fiscal year 2021 was mainly due to: (1) the continuous development of COVID-19, as we had to close a factory and stop production again for a period of time in 2021, which caused the delay of orders and some customers canceled their orders, decreasing our pet food sales revenue and sales volume; (2) the cost of raw materials required for pet food production has risen to a certain extent due to the COVID-19 pandemic and general inflation, which led to our reduced production and sales of pet food products during fiscal year 2021; and (3) we declined taking orders that were historically unprofitable.  As a result, our pet food sales volume significantly decreased in 2021 as compared to 2020. On the other side, on October 31, 2021, we acquired 51% equity interests of Far Ling's Inc. and 100% equity interests of Bo Ling's Chinese Restaurant, Inc., located in Kansas. This resulted in an increase of $0.6 million in food service revenue from our restaurant business operations segment.

		For the Twelve Months Ended December 31,
		2021					2020							Y/Y Change
		Revenues ($'000)		% of Total			Revenues ($'000)		% of Total				Amount ($'000)				%
Overseas	$	135		12.35%		$	226		27.77%		$		(91)			-40.41%
Domestic		319		29.22%			575		70.52%				(256)			-44.50%
E-commerce		35		3.17%			17		2.05%				18			107.03%
Restaurant  revenue		606		55.54%			-		-				606			100.00%
less: sales tax and additional surcharge		(3)		-0.29%			(3)		-0.34%				-			11.90%
Total	$	1,092		100.0%		$	815		100.0%		$		277			-33.94%

 

Overseas sales decreased by $0.09 million, or 40.41%, to $0.14 million for the fiscal year 2021 from $0.23 million for fiscal year 2020. Domestic sales decreased by $0.25 million, or 44.50%, to $0.32 million for the fiscal year 2021 from $0.57 million for fiscal year 2020. The decrease of pet food revenue in fiscal year 2021 was mainly due to (1) the continuous development of COVID-19, as we had to close a factory and stop production again for a period of time in 2021, which caused the delay of orders and some customers canceled their orders, decreasing our pet food sales revenue and sales volume; (2) the cost of raw materials required for pet food production has risen to a certain extent due to the COVID-19 pandemic and general inflation, which led to our reduced production and sales of pet food products during 2021; and (3) we declined taking orders that were historically unprofitable. Sales from the e-commerce channel increased by $0.01 million, or 107.03%, to $0.03 million for the year of 2021 from $0.02 million for 2020, due to the increased promotion of our products through e-commerce channels. In addition, on October 31, 2021, we acquired 51% equity interests of Far Ling's Inc. and 100% equity interests of Bo Ling's Chinese Restaurant, Inc. This resulted in an increase of $0.61 million in restaurant business operations revenue.

	For the Twelve Months Ended December 31,
		2021					2020					Y/Y Change
		Revenues ($'000)		% of Total			Revenues ($'000)		% of Total			Amount ($'000)		%
Pet chews	$	46		4.22%		$	59		7.25%		$	(13)			-21.97%
Dried pet snacks		293		26.86%			318		38.94%			(24)			-7.58%
Wet canned pet food		11		0.99%			84		10.32%			(73)			-87.21%
Dental health snacks		6		0.56%			20		2.44%			(14)			-69.23%
Baked pet biscuits		-		-			3		0.38%			(3)			-100.00%
Restaurant revenue		606		55.54%			-		-			606			100.00%
Others		132		12.11%			334		41.01%			(202)			-60.46%
Less: sales tax and additional surcharge		(3)		-0.29%			(3)		-0.34%			-			11.90%
Total	$	1,092		100.00%		$	815		100.00%		$	(277)			33.94%

 

Sales of pet chews decreased by $0.01 million, or 21.97%, to $0.05 million for fiscal year 2021 from $0.06 million for fiscal year 2020. Sales of dried pet snacks decreased by $0.03 million, or 7.58%, to $0.29 million for fiscal year 2021 from $0.32 million for fiscal year 2020. Sales of wet canned pet food decreased by $0.07 million, or 87.21%, to $0.01 million for fiscal year 2021 from $0.08 million for fiscal year 2020. Sales of dental health snacks decreased by $0.01 million, or 69.23%, to $0.01 million for fiscal year 2021 from $0.02 million for fiscal year 2020. The decrease of pet food revenue in fiscal year 2021 was mainly due to:

(1) the continuous development of COVID-19, we had to close a factory and stop production again for a period of time in 2021, which caused the delay of orders and some customers canceled their orders, decreasing our pet food sales revenue and sales volume; (2) the cost of raw materials required for pet food production has risen to a certain extent due to the COVID-19 pandemic and general inflation, which led to our reduced production and sales of pet food products during 2021; and (3) we declined taking orders that were historically unprofitable. Sales from the e-commerce channel increased by $0.01 million, or 107.03%, to $0.03 million for the fiscal year of 2021 from $0.02 million for fiscal year 2020, due to the increased promotion of our products through e-commerce channels.  In addition, on October 31, 2021, we acquired 51% equity interests of Far Ling's Inc. and 100% equity interests of Bo Ling's Chinese Restaurant, Inc. This resulted in an increase of $0.61 million in restaurant business operations revenue.

Cost of revenues

Cost of revenues of our pet food business consists primarily of direct raw materials, direct payroll of workshop staff, utility and supply costs consumed in the manufacturing process, manufacturing labor, depreciation expense and overhead expenses necessary to manufacture finished goods as well as distribution costs such as inbound freight charges. Cost of revenues of our restaurant business consist primarily of food and packaging costs, payroll and employee benefit costs, store lease and occupancy costs and depreciation and amortization costs. Cost of revenues increased by $0.25 million, or 29.80%, to $1.11 million for fiscal year 2021 from $0.86 million for fiscal year 2020. The increase in our costs was in line with the increased revenue in fiscal year 2021.

Gross loss and gross loss margin

Gross loss was $0.02 million for fiscal year 2021, compared to gross loss of $0.04 million for fiscal year 2020. Gross loss margin was 1.88% for fiscal year 2021, compared to gross loss margin of 5.13% for fiscal year 2020.

Operating expense

Operating expense consists of selling expenses and general and administrative expenses.

Selling expenses consist primarily of advertising, salaries and shipping and handling costs incurred during the selling activities. Advertising and transportation expenses are charged to expenses as incurred. Selling expenses decreased by $0.08 million, or 35.64%, to $0.08 million for fiscal year 2021 from $0.12 million for fiscal year 2020.

General and administrative expenses increased by $2.18 million, or 123.36%, to $3.94 million for fiscal year 2021 from $1.77 million for fiscal year 2020. The main reason for the increase was due to the company's payment of certain legal costs, an increase in consulting service fees and increased depreciation and amortization expenses related to our restaurant business segment.

In connection with our acquisition of restaurant business, we recognized a goodwill of $355,570 as of the acquisition date. However, due to our significant net loss in fiscal year 2021, goodwill of $355,570 has been fully impaired for the year ended December 31, 2021.

Impairment of long-lived assets other than goodwill charge was $0.22 million in fiscal year 2021, as compared to $0 in fiscal year 2020.

As a result, total operating expenses increased by $2.71 million, or 143.80%, to $4.59 million for fiscal year 2021 from $1.88 million for fiscal year 2020. As a percentage of total revenues, total operating expenses was 420.69% for the fiscal year 2021, compared to 231.11% for fiscal year 2020.

Operating loss and operating loss margin

Loss from operations was $4.61 million for fiscal year 2021, compared to operating loss of $1.93 million for fiscal year 2020. The continuous loss from operations was mainly due to increased operating expenses in fiscal year 2021.

Net loss and loss per share

Net loss was $6.72 million for fiscal year 2021, compared to net loss of $0.87 million for fiscal year 2020. Net loss attributable to common stockholders was $6.12 million, or loss per share of $0.10, for the fiscal year 2021. This is compared to net loss attributable to common stockholders of $0.87 million, or loss per share of $0.02 for fiscal year 2020.

Financial Conditions

As of December 31, 2021, the Company had cash, cash equivalents and restricted cash of $19.51 million, compared to $6.75 million as of December 31, 2020. Accounts receivable and inventories were $0.04 million and $0.05 million, respectively, as of December 31, 2021, compared to $0.17 million and $0.25 million, respectively, as of December 31, 2020. As of December 31, 2021, we had working capital of approximately $11.42 million, as compared to working capital deficit of $8.55 million as of December 31, 2020.

Net cash used in operating activities was $3.45 million for the fiscal year 2021, compared to $2.63 million for fiscal year 2020. Net cash used in investing activities was $1.64 million for fiscal year 2021, compared to $3.35 million net cash provided by investing activities in fiscal year 2020. Net cash provided by financing activities was $18.10 million for the fiscal year 2021, compared to $0.59 million net cash used in financing activities in fiscal year 2020.

Going Concern

As reflected in our consolidated financial statements, for the year ended December 31, 2021, we have incurred a net loss of approximately $6.12 million and our cash used in operating activities amounted to approximately $3.45 million. Our business operations may be further affected by the ongoing COVID-19 pandemic. Although we received approximately $20.2 million net proceeds from issuance of common shares and warrants to certain investors during fiscal year 2021, there can be no assurances that future revenue or capital infusion will be sufficient to enable us to develop our business to a level where it will be profitable or to generate positive cash flows. These factors raise substantial doubt about the Company's ability to continue as a going concern for the next twelve months from the date that our consolidated financial statements are issued.

As of December 31, 2021, we had cash and cash equivalents and restricted cash of approximately $19.51 million. We also had short-term investments of approximately $4.43 million, which are highly liquid and can be converted into cash and used in our operations if needed. We also had approximately an aggregate of $5.99 million of loans (including approximately $5.44 million short-term loans and approximately $0.55 million short-term loans from related parties). For legal proceedings since December 31, 2019 regarding our delayed repayment of certain bank loans upon maturity, in March and April 2020, we received court rulings requiring us to make an aggregate RMB 54.54 million (approximately $8.35 million) of payments to the financial institutions. On March 13, 2021, the land and factory buildings on the land owned by our subsidiary, were auctioned by the court for $5,098,461 (RMB 33.14 million), among which, $3,192,827 (RMB 21.14 million) has been used to repay loan principal and accrued interest to a financial institution based on the court order. The repayment has been completed as of the date of this press release.  On March 16, 2022, the People's Court of Huangdao District, Qingdao City, Shandong Province made a civil ruling and announced the acceptance of creditors' application of bankruptcy liquidation of our subsidiary, Qingdao Tiandihui Foodstuffs Co., Ltd., and it entered into bankruptcy proceedings. Accordingly, these legal claims relating to the bank loans are now subject to the bankruptcy proceedings.

Based on our current financial conditions, our cash balance and revenues generated from our business operations may not be currently sufficient and cannot be projected to cover our future operating expenses and meet our obligations as they become due for the next twelve months after the date that our financial statements are issued.

We face substantial challenges in our effort to resume normal business activities. Our future growth will place a significant strain on our sales and marketing capacities, administrative and operating infrastructure, manufacturing facilities and other resources. To effectively manage additional challenges brought on by COVID-19, we need 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, resolve the substantial litigation and judgements to which we are subject and raise substantial capital. There may be particular complexities, regulatory or otherwise, associated with our expansion into new markets, and our strategies may not succeed beyond our current markets. If we are unable to effectively address these challenges, our ability to execute acquisitions as a component of our long-term strategy will be impaired, which could have an adverse effect on our growth or our ability to function as a going concern. We also need to expand our customer base, refine our operational, financial and management controls and reporting systems and procedures. If we fail to efficiently manage this expansion of our business, our costs and expenses may increase more than anticipated and we may not successfully attract a sufficient number of customers in a cost-effective manner, respond to competitive challenges, or otherwise execute our business plans. In addition, we may, as part of carrying out our growth strategies, adopt new initiatives to implement new pricing models and strategies. We cannot assure you that these initiatives may achieve the anticipated results.

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. The Company also started the restaurant business operation since late 2021. More information about the Company can be found at www.tiandihui.com.

Forward-Looking Statements

This press release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements that are other than statements of historical facts. When the Company uses words such as "may," "will," "intend," "should," "believe," "expect," "anticipate," "project," "estimate" or similar expressions that do not relate solely to historical matters, it is making forward-looking statements. Specifically, the Company's statements regarding, among others: its growth and business outlook; its ability to execute on its business plan, secure necessary capital to sustain and maintain its operation; its ability to resume its operations at the previous level; its ability to successfully resolve various legal proceedings and judgments in which it is involved or have been obtained against it; its ability to expand its market and customer base; its ability to refine its operational, financial and management controls and reporting systems and procedures, are forward-looking statements. These statements are subject to uncertainties and risks including, but not limited to, the following:  the Company's goals and strategies; the ability to identify, execute and integrate strategic or acquisition opportunities, the Company's future business development; product and service demand and acceptance; changes in technology; economic conditions; the growth of the petfood industry in China and internationally; reputation and brand; the impact of competition and pricing; government regulations; fluctuations in general economic and business conditions in China and internationally and assumptions underlying or related to any of the foregoing and other risks contained in reports filed by the Company with the Securities and Exchange Commission.  For these reasons, among others, investors are cautioned not to place undue reliance upon any forward-looking statements in this press release. Additional factors are discussed in the Company's filings with the U.S. Securities and Exchange Commission, which are available for review at www.sec.gov. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof.

 

 

TDH HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
	December 31,			December 31,
	2021			2020
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	18,027,322		$	6,566,549
Restricted cash		1,483,653			182,515
Short-term investments		4,428,446			3,138,578
Accounts receivable, net		39,512			168,499
Advances to suppliers, net		10,986			41,088
Inventories, net		51,423			247,245
Prepayments and other current assets, net		1,205,695			172,481
Total current assets		25,247,037			10,516,955
NON-CURRENT ASSETS
Property, plant and equipment, net		1,543,430			6,636,995
Land use rights, net		653,125			1,009,005
Operating lease right-of-use assets		4,604,365			19,103
Operating lease right-of-use assets - related parties		-			270,852
Total non-current assets		6,800,920			7,935,955
Total assets	$	32,047,957		$	18,452,910
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
CURRENT LIABILITIES:
Accounts payable	$	3,065,387		$	3,209,763
Accounts payable - related parties		127,688			124,715
Advances from customers		109,959			90,834
Bank overdrafts		79,851			78,320
Short-term loans		5,440,350			8,391,323
Short-term loans - related parties		555,096			985,883
Taxes payable		82,614			60,729
Due to related parties		307,509			42,021
Operating lease liabilities, current		268,403			9,913
Operating lease liabilities - related parties, current		-			195,231
Other current liabilities		3,793,140			5,882,164
Total current liabilities		13,829,998			19,070,896
NON-CURRENT LIABILITIES:
Deferred tax liabilities		1,132			-
Operating lease liabilities - related party, non-current		4,846,760			274,794
Total liabilities		18,677,890			19,345,690
STOCKHOLDERS' EQUITY (DEFICIT):
Common stock ($0.001 par value; 200,000,000 shares authorized; 104,373,621 and 45,849,995 shares issued and outstanding at December 31, 2021 and 2020, respectively)		104,374			45,850
Additional paid-in capital		42,151,658			21,963,570
Statutory reserves		160,014			160,014
Accumulated deficit		-28,969,627			-22,849,319
Accumulated other comprehensive loss		-460,702			-212,895
Total TDH Holdings, Inc. stockholders' equity (deficit)		12,985,717			-892,780
Non-controlling interest		384,350			-
Total stockholders' equity (deficit)		13,370,067			892,780
Total liabilities and stockholders' equity (deficit)	$	32,047,957		$	18,452,910

 

 

TDH HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
	For The Years Ended December 31,
	2021			2020			2019
Net revenue	$	1,091,889		$	815,225		$	12,455,414
Net revenue - related parties		-			-			192,841
Total revenue		1,091,889			815,225			12,648,255
Cost of revenue		1,112,463			857,060			13,992,499
Cost of revenue - related parties		-			-			178,636
Total cost of revenue		1,112,463			857,060			14,171,135
Gross loss		-20,574			-41,835			-1,522,880
Operating expenses:
Selling expense		75,944			117,993			920,237
General and administrative expense		3,944,709			1,766,109			3,702,035
Impairment of long-lived assets other than goodwill		217,257			-			813,344
Impairment of goodwill		355,570			-			-
Total operating expenses		4,593,480			1,884,102			5,435,616
Loss from operations		-4,614,054			-1,925,937			-6,958,496
Interest expense		-957,548			-1,180,489			-1,378,755
Government subsidies		-			8,651			129,255
Other income		215,858			137,163			1,189
Other expense		-1,636,080			-35,197			-290,655
Investment income, net		275,866			2,120,241			-
Loss from equity method investment		-			-			-127,965
Total other income (expenses)		-2,101,904			1,050,369			-1,666,931
Loss before income tax benefit		-6,715,958			-875,568			-8,625,427
Income tax benefit		-			-900			-
Net loss		-6,715,958			-874,668			-8,625,427
Less: Net loss attributable to non-controlling interest		-595,650			-			-8
Net loss attributable to TDH Holdings, Inc.	$	-6,120,308		$	-874,668		$	-8,625,419
Comprehensive loss
Net loss	$	-6,120,308		$	-874,668		$	-8,625,427
Other comprehensive loss
Foreign currency translation adjustment		-247,807			-355,411			-100,954
Total comprehensive loss		-6,368,115			-1,230,079			-8,726,381
Less: Comprehensive loss attributable to noncontrolling interest		-			-			-8
Comprehensive loss attributable to TDH Holdings, Inc.	$	-6,368,115		$	-1,230,079		$	-8,726,373
Loss per common share attributable to TDH Holdings, Inc.
Basic	$	-0.10		$	-0.02		$	-0.41
Diluted	$	-0.10		$	-0.02		$	-0.41
Weighted average common shares outstanding
Basic		59,185,891			45,849,995			21,022,598
Diluted		59,185,891			45,849,995			21,022,598

 

 

TDH HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
	For The Years Ended December 31,
	2021			2020			2019
Cash flows from operating activities
Net loss	$	-6,120,308		$	-874,668		$	-8,625,427
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization expense		408,740			391,351			571,528
Fair value change of short-term investments		-495,265			-2,120,241			-
Loss from equity method investment		0			-			127,965
Loss on disposal of subsidiaries		0			-			5,018
Impairment of goodwill		355,570			-			-
Impairment of long-lived assets other than goodwill		217,257			-			813,344
Inventory write-down		191,026			42,241			518,119
Allowance for credit losses		2,168			74,190			659,569
Deferred income taxes		0			-1,106			-3,861
Loss (gain) on disposal of property, plant and equipment		955,428			-16,870			308,003
Amortization of operating lease right-of-use assets		280,610			-			-
Non-cash lease expense		-4,595,020			33,944			89,176
Gain on forgiveness of short-term loan	$	0		$	-6,265		$	-
Changes in operating assets and liabilities:		0
Accounts receivable, net		128,987			-112,177			329,042
Accounts receivable - related parties, net		0			-			306,301
Inventories, net		4,796			201,730			2,009,862
Operating lease liabilities		4,830,456			-9,382			-
Operating lease liabilities – related parties		-195,231			16,262			16,404
Due from related parties, net		0			-			-2,206
Due to related parties		393,176			-			14,387
Advances to suppliers, net		30,102			-12,179			36,322
Prepayments and other current assets, net		1,006,351			-29,363			516,018
Accounts payable		-144,376			-416,506			-2,775,356
Accounts payable - related parties		123,184			-			-6,703
Interest payable		0			1,065,277			260,417
Interest payable - related parties		0			43,835			-
Notes payable		0			-			-1,046,257
Taxes payable		21,855			-			13,797
Advances from customers		0			-31,366			-42,923
Advances from customer - related party		19,125			-			-
Deferred income tax liability		1,132			-			-
Other current liabilities		861,109			-866,962			280,843
Net cash used in operating activities	$	-3,445,819		$	-2,628,255		$	-5,626,618
Cash flows from investing activities
Payments to acquire property, plant and equipment		-			-47,086			-121,560
Proceeds from disposal of property, plant and equipment		-			-			233,747
Disposal of subsidiaries		-			-			83
Repayments from related parties		-			-			1,282
Cash obtained from business acquisition		171,827			-			-
Payment for business acquisition		-1,020,000			-			-
Purchase of short-term investments		-4,372,809			-38,743,908			-
Proceeds from sale of short-term investments		3,578,206			42,146,183			-
Net cash (used in) provided by investing activities		-1,642,776			3,355,189			113,552
Cash flows from financing activities
Proceeds from issuance of common shares		20,222,188			-			6,760,000
Purchase of noncontrolling interest		-100			(100			-
Repayments to related parties		-			-			-1,000
Proceeds from bank overdrafts		-			-			78,162
Proceeds from short-term loans		-			107,829			1,046,275
Repayments of short-term loans		-1,692,988			-746,437			-2,073,177
Proceeds from short-term loans - related parties		-			49,350			4,791,403
Repayments of short-term loans - related parties		-430,787			-			-1,080,947
Net cash provided by (used in) financing activities	$	18,098,313		$	-589,358		$	9,520,716
Effect of exchange rate changes on cash, cash equivalents and restricted cash		-247,807			106,910			-203,577
Net change in cash, cash equivalents and restricted cash		12,761,911			244,486			3,804,073
Cash, cash equivalents and restricted cash, beginning of the year		6,749,064			6,504,578			2,700,505
Cash, cash equivalents and restricted cash, end of the year	$	19,510,975		$	6,749,064		$	6,504,578
Supplemental cash flow information
Interest paid	$	-		$	38,362		$	1,118,338
Income taxes paid	$	-		$	146		$	-
Non-cash investing and financing activities
Accrued interest added to short-term loan – related party	$	-		$	-		$	126,697
Liabilities assumed in connection with purchase of property, plant and equipment	$	-		$	14,592		$	51,196
Notes payable reclassified to short-term loans	$	-		$	908,850		$	479,724
Receivables from related parties settled with payables to related parties	$	-		$	-		$	28,694
Receivables from common stock subscription settled with loan payables to a related party	$	-		$	-		$	4,240,000
Short-term loans settled by transferring an equity investment to the creditor	$	-		$	70,708		$	-
Cashless exercise of warrants	$	24,424		$	-		$	-
Right of use assets obtained in exchange for operating lease obligations	$	5,158,944		$	-		$	-
Reconciliation of cash, cash equivalents, and restricted cash to the consolidated balance sheets
Cash and cash equivalents	$	18,027,322		$	6,566,549		$	5,114,175
Restricted cash	$	1,483,653		$	182,515		$	1,390,403
Total cash, cash equivalents, and restricted cash	$	19,510,975		$	6,749,064		$	6,504,578

 

 

TDH HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT)
	Number of Shares		Common Shares		Additional Paid-in Capital		Stock Subscription Receivable		Statutory Reserves		Retained Earnings (Deficit)		Accumulated Other Comprehensive Income (Loss)		Noncontrolling Interest		Total Stockholders' Equity (Deficit)
Balance, December 31, 2017	9,423,750	$	9,424	$	9,947,084	$	-100,000	$	160,014	$	869,993	$	308,286	$	-	$	11,194,801
Net loss											-14,219,225				-40		-14,219,265
Issuance of common shares for business acquisition	1,092,912		1,093		1,051,927												1,053,020
Collection of stock subscription receivable							100,000										100,000
Liabilities assumed in connection with acquisition of a subsidiary
Statutory Reserve
Foreign currency translation adjustment													-64,816		-307		-65,123
Balance, December 31, 2018	10,516,662	$	10,517	$	10,999,011	$	-	$	160,014	$	-13,349,232	$	243,470	$	-347	$	-1,936,567
Net Loss											-8,625,419				-8		-8,625,427
Issuance of common stock	35,333,333		35,333		10,964,667												11,000,000
Disposal of noncontrolling interest															347		347
Foreign currency translation adjustment													-100,954				-100,954
Balance, December 31, 2019	45,849,995	$	45,850	$	21,963,678	$	-	$	160,014	$	-21,974,651	$	142,516	$	-8	$	337,399
Net Loss											-874,668						-874,668
Foreign currency translation adjustment													-355,411				-355,411
Purchase of noncontrolling interest					-108										8		-100
Balance, December 31, 2020	45,849,995	$	45,850	$	21,963,570	$	-	$	160,014	$	-22,849,319	$	-212,895	$	-	$	-892,780
Net Loss											-6,120,308				-595,650		-6,715,958
Issuance of common stock	34,100,000		34,100		20,188,088												20,222,188
Warrants exercised for cashless	24,423,626		24,424		-												24,424
Foreign currency translation adjustment													-247,807				-247,807
Acquisition of restaurant business															980,000		980,000
Balance, December 31, 2021	104,373,621	$	104,374	$	42,151,658	$	-	$	160,014	$	-28,969,627	$	-460,702	$	384,350	$	13,370,067

 

 

View original content:https://www.prnewswire.com/news-releases/tdh-holdings-inc-reports-full-year-2021-audited-financial-results-301536587.html

SOURCE TDH Holdings, Inc.

FAQ

What were TDH Holdings' revenues for 2021?

TDH Holdings reported revenues of $1.09 million for the fiscal year 2021.

How did the pet food sales of TDH Holdings perform in 2021?

Pet food sales decreased by 40.5% to $0.49 million in 2021.

What is the net loss reported by TDH Holdings for 2021?

The net loss attributable to common stockholders was $6.12 million for the year 2021.

How much did TDH Holdings' operating loss increase in 2021?

Operating loss increased by 121.11%, reaching $4.61 million in 2021.

What impact did COVID-19 have on TDH Holdings' business in 2021?

COVID-19 led to factory closures and reduced production, significantly affecting pet food sales.