Taoping Reports First Half 2022 Financial Results
Taoping Inc. (NASDAQ: TAOP) reported a 64% revenue increase to $10.5 million for the first half of fiscal 2022, compared to $6.4 million in the same period last year. Gross profit rose 73% to $3.7 million, with gross margin improving by 180 basis points to 35.1%. Net loss was reduced by 86% to $2.0 million ($0.13 per share), reflecting operational efficiencies. The company anticipates positive momentum in its digital advertising and cryptocurrency mining sectors as they leverage their cloud ecosystem.
- 64% revenue growth to $10.5 million for the first six months of fiscal year 2022.
- 73% increase in gross profit to $3.7 million.
- 180 basis point improvement in gross margin to 35.1%.
- 86% reduction in net loss to $2.0 million.
- None.
-
64% Increase in Revenue - 180 Basis Point Improvement in Gross Margin
86% Improvement in Net Loss
HONG KONG, Sept. 7, 2022 /PRNewswire/ -- Taoping Inc. (NASDAQ: TAOP, the "Company" or "TAOP") today reported financial results for the first six months of its fiscal year ending December 31, 2022.
Mr. Lin Jianghuai, Chairman and CEO of Taoping, said: "In a challenging market we achieved
Mr. Lin continued: "We are optimistic as we enter the second half of 2022, with a further expansion planned for our core business as we leverage the scalable platform we have built. We also remain excited about the truly global long-term opportunities in cryptocurrency mining. This was a meaningful growth driver for us in the first six months of 2022 despite the broader market volatility. Longer term we expect to see a further mainstream adoption of cryptocurrency, which will serve as a catalyst for our growth. We remain focused on accelerating our profitable revenue growth, while at the same time driving an increase in shareholder value more inline the Company's impressive results, strong fundamentals and compelling business prospects."
Financial Results for the First Six Months of Fiscal Year 2022
Revenue increased
For the six months ended June 30, 2022, no single customer accounted for greater than
Gross profit increased
Administrative expenses declined
The Company reduced its net loss by
Excluding share-based compensation expenses and loss from equity method investment of Taoping New Media Co., Ltd. ("TNM"), a company acquired on June 9, 2021, adjusted net loss was
About Taoping Inc.
Taoping Inc. (NASDAQ: TAOP) is a blockchain technology and smart cloud services provider. The Company is dedicated to the research and application of blockchain technology and digital assets, and continues to improve computing power and create value for the encrypted digital currency industry. Relying on its self-developed smart cloud platform, TAOP also provides solutions and cloud services to industries such as smart community, new media and artificial intelligence. To learn more, please visit www.taop.com.
Safe Harbor Statement
This press release contains "forward-looking statements" that involve substantial risks and uncertainties. All statements other than statements of historical facts contained in this press release, including statements regarding our future results of operations and financial position, strategy and plans, and our expectations for future operations, are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. We have attempted to identify forward-looking statements by terminology including "anticipates," "believes," "can," "continue," "could," "estimates," "expects," "intends," "may," "plans," "potential," "predicts," "should," or "will" or the negative of these terms or other comparable terminology. Our actual results may differ materially or perhaps significantly from those discussed herein, or implied by, these forward-looking statements. There are a significant number of factors that could cause actual results to differ materially from statements made in this press release, including: our potential inability to achieve or sustain profitability or reasonably predict our future results due to our limited operating history of providing blockchain technology and smart cloud services, the effects of the global Covid-19 pandemic, the emergence of additional competing technologies, changes in domestic and foreign laws, regulations and taxes, uncertainties related to China's legal system and economic, political and social events in China, the volatility of the securities markets; and other risks including, but not limited to, those that we discussed or referred to in the Company's disclosure documents filed with the U.S. Securities and Exchange Commission (the "SEC") available on the SEC's website at www.sec.gov, including the Company's most recent Annual Report on Form 20-F as well as in our other reports filed or furnished from time to time with the SEC. The forward-looking statements included in this press release are made as of the date of this press release and TAOP undertakes no obligation to publicly update or revise any forward-looking statements, other than as required by applicable law.
About Non-GAAP Financial Measures
To supplement the Company's financial results presented in accordance with U.S. GAAP, the Company uses non-GAAP financial measures, which are adjusted from results based on U.S. GAAP to exclude share-based compensation expenses and loss from equity method investment of TNM, a company acquired on June 9, 2021. Reconciliations of non-GAAP financial measures to U.S. GAAP financial measures are set forth in table at the end of this release, which provide more details on the non-GAAP financial measures.
Non-GAAP financial information is provided as additional information to help investors compare business trends among different reporting periods on a consistent basis and to enhance investors' overall understanding of the historical and current financial performance of the Company's continuing operations and prospects for the future. Non-GAAP financial information should not be considered a substitute for or superior to U.S. GAAP results. In addition, calculations of this non-GAAP financial information may be different from calculations used by other companies, and therefore comparability may be limited.
TAOPING INC. | ||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||
FOR THE SIX MONTHS ENDED JUNE 30, 2022 AND 2021 | ||||||||
Six Months Ended | ||||||||
June 30, 2022 | June 30, 2021 | |||||||
(Unaudited) | (Unaudited) | |||||||
Revenue – Products | $ | 2,882,990 | $ | 3,039,511 | ||||
Revenue – Software | 1,785,891 | 1,621,534 | ||||||
Revenue – Advertising | 1,197,140 | 576,310 | ||||||
Revenue – Cryptocurrency mining | 3,235,134 | 814,772 | ||||||
Revenue – Other | 1,435,501 | 373,450 | ||||||
TOTAL REVENUE | 10,536,656 | 6,425,577 | ||||||
Cost – Products | 2,724,655 | 2,696,207 | ||||||
Cost – Software | 828,310 | 237,986 | ||||||
Cost – Advertising | 676,382 | 683,835 | ||||||
Cost – Cryptocurrency mining | 2,121,501 | 661,753 | ||||||
Cost – Other | 486,047 | 7,555 | ||||||
TOTAL COST | 6,836,895 | 4,287,336 | ||||||
GROSS PROFIT | 3,699,761 | 2,138,241 | ||||||
Administrative expenses | 4,838,472 | 13,606,688 | ||||||
Research and development expenses | 2,050,609 | 2,260,274 | ||||||
Selling expenses | 343,211 | 193,484 | ||||||
LOSS FROM OPERATIONS | (3,532,531) | (13,922,205) | ||||||
Subsidy income | 89,596 | 136,393 | ||||||
(Loss) from equity method investment | (307,403) | (578,619) | ||||||
Other income (loss), net | 2,041,658 | 378,831 | ||||||
Interest expense and debt discounts, net of interest income | (287,592) | (478,439) | ||||||
Loss before income taxes | (1,996,272) | (14,464,039) | ||||||
Income tax (expense) benefit | (4,283) | (871) | ||||||
NET LOSS | (2,000,555) | (14,464,910) | ||||||
Less: Net loss attributable to the non- controlling interest | - | 366,570 | ||||||
NET LOSS ATTRIBUTABLE TO THE COMPANY | $ | (2,000,555) | $ | (14,098,340) | ||||
Loss per share - Basic and Diluted* | ||||||||
Basic | $ | (0.13) | $ | (1.34) | ||||
Diluted | $ | (0.13) | $ | (1.34) | ||||
NET LOSS PER SHARE ATTRIBUTABLE TO THE COMPANY* | ||||||||
Basic | $ | (0.13) | $ | (1.31) | ||||
Diluted | $ | (0.13) | $ | (1.31) | ||||
Net loss | $ | (2,000,555) | $ | (14,464,910) | ||||
Other comprehensive loss: | ||||||||
Foreign currency translation gain (loss) | (1,767,671) | 44,523 | ||||||
Comprehensive loss | (3,768,226) | (14,420,387) | ||||||
Comprehensive loss attributable to the non- controlling interest | - | 385,520 | ||||||
Comprehensive loss attributable to the Company | $ | (3,768,226) | $ | (14,034,867) | ||||
TAOPING INC. | ||||||||
CONSOLIDATED BALANCE SHEETS | ||||||||
JUNE 30, 2022 AND DECEMBER 31, 2021 | ||||||||
June 30, 2022 | December 31, 2021 | |||||||
(Unaudited) | ||||||||
ASSETS | ||||||||
CURRENT ASSETS | ||||||||
Cash and cash equivalents | $ | 753,717 | $ | 4,531,266 | ||||
Accounts receivable, net | 7,887,069 | 6,758,162 | ||||||
Accounts receivable-related parties, net | 959,275 | 351,472 | ||||||
Advances to suppliers | 3,444,286 | 6,541,323 | ||||||
Prepaid expenses | - | 296,494 | ||||||
Inventories, net | 1,746,323 | 542,384 | ||||||
Cryptocurrencies, net | 268,983 | 829,165 | ||||||
Other current assets | 1,778,511 | 1,218,148 | ||||||
TOTAL CURRENT ASSETS | 16,838,164 | 21,068,414 | ||||||
Property, plant and equipment, net | 18,488,573 | 21,562,084 | ||||||
Right-of-use assets | 807,354 | 896,505 | ||||||
Long-term investments | 374,959 | 679,807 | ||||||
Goodwill | 179,795 | - | ||||||
Other assets, non-current | 2,798,887 | 2,948,681 | ||||||
TOTAL ASSETS | $ | 39,487,732 | $ | 47,155,491 | ||||
LIABILITIES AND EQUITY | ||||||||
CURRENT LIABILITIES | ||||||||
Short-term bank loans | $ | 7,262,180 | $ | 7,792,125 | ||||
Accounts payable | 4,788,316 | 9,872,924 | ||||||
Advances from customers | 734,131 | 458,158 | ||||||
Advances from customers-related parties | 646,559 | 121,059 | ||||||
Amounts due to related parties | 2,985,480 | 3,145,260 | ||||||
Accrued payroll and benefits | 199,562 | 252,827 | ||||||
Other payables and accrued expenses | 4,794,842 | 4,893,499 | ||||||
Other taxes payable | - | 379,925 | ||||||
Lease liability-current | 439,976 | 427,372 | ||||||
Other current liability | 276,460 | - | ||||||
TOTAL CURRENT LIABILITIES | 22,127,506 | 27,343,149 | ||||||
Lease liability | 438,985 | 561,843 | ||||||
TOTAL LIABILITIES | 22,566,491 | 27,904,992 | ||||||
EQUITY | ||||||||
Ordinary shares, 2022 and 2021: par | 161,396,304 | 161,098,010 | ||||||
Additional paid-in capital | 22,447,083 | 22,447,083 | ||||||
Reserve | 14,044,269 | 14,044,269 | ||||||
Accumulated deficit | (204,137,958) | (202,137,403) | ||||||
Accumulated other comprehensive income | 23,171,543 | 23,800,299 | ||||||
Total equity (deficit) of the Company | 16,921,241 | 19,252,258 | ||||||
Non-controlling interest | - | (1,759) | ||||||
Total Equity | 16,921,241 | 19,250,499 | ||||||
TOTAL LIABILITIES AND EQUITY | $ | 39,487,732 | $ | 47,155,491 | ||||
TAOPING INC. | ||||||||
Reconciliation of Non-GAAP Adjusted Net (Loss) Attributable to the Company and EPS | ||||||||
Six Months Ended | ||||||||
June 30, 2022 | June 30, 2021 | |||||||
Net (loss) attributable to the Company | $ | (2,000,555) | $ | (14,098,340) | ||||
Share-based compensation for consulting services | 14,500 | 2,142,892 | ||||||
Share-based compensation to employees | - | 2,950,070 | ||||||
Loss from equity method investment | 307,403 | 578,620 | ||||||
Adjusted net (loss) attributable to the Company | $ | (1,678,652) | $ | (8,426,758) | ||||
Weighted average number of shares outstanding | ||||||||
Basic | 15,320,468 | 10,761,008 | ||||||
Diluted | 15,320,468 | 10,761,008 | ||||||
(Loss) per share | ||||||||
Basic | $ | (0.13) | $ | (1.31) | ||||
Diluted | $ | (0.13) | $ | (1.31) | ||||
Adjusted (loss) per share | ||||||||
Basic | $ | (0.11) | $ | (0.78) | ||||
Diluted | $ | (0.11) | $ | (0.78) | ||||
View original content:https://www.prnewswire.com/news-releases/taoping-reports-first-half-2022-financial-results-301618685.html
SOURCE Taoping Inc.
FAQ
What were Taoping Inc.'s revenue results for the first half of fiscal year 2022?
How much did Taoping Inc. reduce its net loss in 2022?
What is the gross margin improvement reported by Taoping Inc.?
What factors contributed to Taoping's revenue growth?
What are the future expectations for Taoping Inc. in cryptocurrency?
