NF Energy Saving Corp

CIK:0001213660|SEC Filings

Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Income Statement [Abstract]
REVENUES	$ 2,523,193	$ 4,932,479	$ 11,278,496	$ 10,476,224
COST OF REVENUES	2,408,038	4,229,316	6,589,020	8,928,138
GROSS PROFIT	115,155	703,163	4,689,476	1,548,086
OPERATING EXPENSES:
Sales and marketing	171,763	310,475	664,076	952,102
General and administrative	3,093,088	2,805,211	5,220,553	7,924,995
Total operating expenses	3,264,851	3,115,686	5,884,629	8,877,097
INCOME (LOSS) FROM OPERATIONS	(3,149,696)	(2,412,523)	(1,195,153)	(7,329,011)
OTHER INCOME (EXPENSE)
Interest income	53	263	379	616
Interest expense	(35,877)	(35,038)	(105,407)	(131,756)
Exchange gain (loss)	(1,338)	7,427	(3,622)	991
Amortization of convertible notes		(771,124)		(2,313,372)
Gain on disposition of former subsidiaries	107,101		304,840
Non-operating income (expense)	(54,315)	101,498	(147,618)	(2,511,520)
Other income		8,886		75,606
Total other income (expense), net	15,624	(688,088)	48,572	(4,879,435)
INCOME (LOSS) BEFORE INCOME TAXES	(3,134,072)	(3,100,611)	(1,146,581)	(12,208,446)
PROVISION FOR INCOME TAXES		(949)		6,202
NET INCOME (LOSS) FROM CONTINUING OPERATIONS	(3,134,072)	(3,099,662)	(1,146,581)	(12,214,648)
DISCONTINUED OPERATIONS
Loss from discontinued operations-held for sale	(116,718)	(758,465)	(259,820)	(957,203)
Loss from discontinued operations		(26,928)
NET INCOME (LOSS)	(3,250,790)	(3,885,055)	(1,406,401)	(13,171,851)
Less: net loss attributable to noncontrolling interest	(121,545)	(1,450)	(120,830)	(3,948)
NET INCOME (LOSS) ATTRIBUTABLE TO BIMI INTERNATIONAL MEDICIAL INC.	(3,129,245)	(3,883,605)	(1,285,571)	(13,167,903)
OTHER COMPREHENSIVE (LOSS)
Foreign currency translation adjustment	(630,330)	(399,821)	(1,156,789)	(1,367,407)
TOTAL COMPREHENSIVE INCOME (LOSS)	(3,881,120)	(4,284,876)	(2,563,190)	(14,539,258)
Less: comprehensive income (loss) attributable to noncontrolling interest	190,783	(487,621)	(1,317,844)	(1,022,664)
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO BIMI INTERNATIONAL MEDICIAL INC.	$ (4,071,903)	$ (3,797,255)	$ (1,245,346)	$ (13,516,594)
WEIGHTED AVERAGE NUMBER OF COMMON SHARES
Basic (in Shares)	6,429,980	36,395,729	4,967,278	24,037,736
INCOME (LOSS) PER SHARE
Continuing operations-Basic (in Dollars per share)	$ (0.49)	$ (0.09)	$ (0.23)	$ (0.51)
Discontinued operations-Basic (in Dollars per share)	(0.02)	(0.02)	(0.05)	(0.04)
Basic (in Dollars per share)	$ (0.51)	$ (0.11)	$ (0.28)	$ (0.55)

Consolidated Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (1,406,401)	$ (13,171,851)
Net loss from discontinued operations	(259,820)	(957,203)
Net loss from continuing operations	(1,146,581)	(12,214,648)
Adjustments to reconcile net loss to cash used in operating activities:
Depreciation and amortization	111,252	86,111
Allowance for doubtful accounts	2,394,843
Stock compensation		2,339,963
Amortization of discount of convertible promissory notes		2,313,372
Gain on disposition of former subsidiaries	304,840
Change in operating assets and liabilities
Accounts receivable	(3,302,521)	414,102
Advances to suppliers	1,937,809	5,417,687
Prepayments and other receivables	248,743	145,802
Inventories	567,451	1,287,095
Operating lease-right of use assets	34,659	305,999
Accounts payable, trade	(347,127)	(3,042,294)
Advances from customers	(161,372)	(375,390)
Operating lease liabilities	65,988	(286,203)
Taxes payable	(39,416)	(232,187)
Other payables and accrued liabilities	89,882	(1,695,774)
Net cash provided by (used in) operating activities from continuing operations	758,450	(5,536,365)
Net cash provided by (used in) operating activities from discontinued operations	5,283	(1,054,953)
Net cash provided by (used in) operating activities	763,733	(6,591,318)
CASH FLOWS FROM INVESTING ACTIVITIES:
Payment for the acquisition of Phenix Bio Inc.		(180,000)
Purchase of properties and intangible assets	(603,892)
Net cash used in investing activities from continuing operations	(603,892)	(180,000)
Net cash used in investing activities	(603,892)	(180,000)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net proceeds from issuance of convertible promissory note to related party		5,000,000
Net proceeds from stock purchase	1,600,000
Issuance of Common Stock	1,600
Proceeds from short-term loan	318,097	112,679
Proceeds from long-term loan	29,844
Repayment of long-term loans	(290,412)	(366,315)
Amount repaid to related parties	(2,463,210)	(254,768)
Net cash (used in) provided by financing activities from continuing operations	(804,081)	4,491,596
Net cash used in financing activities from discontinued operations		(333,686)
Net cash (used in) provided by financing activities	(804,081)	4,157,910
EFFECT OF EXCHANGE RATE ON CASH	(698,265)	(995,684)
NET DECREASE IN CASH AND CASH EQUIVALENTS	(1,342,505)	(3,609,092)
CASH AND CASH EQUIVALENTS, beginning of period	2,336,636	4,609,431
CASH AND CASH EQUIVALENTS, end of period	994,131	1,000,339
SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid for income tax		217,837
Cash paid for interest expense, net of capitalized interest	64,861	87,425
NON-CASH TRANSACTIONS OF INVESTING AND FINANCING ACTIVITIES
Issuance of Common Stock upon conversion of convertible notes		15,531
Issuance of Common Stock as a result of the application of the “Floor Amount Issuance” with respect to the conversion of convertible promissory note	1,308
Lease liabilities arising from acquisition of right-of-use assets	$ 39,875	$ 44,826

Condensed Consolidated Balance Sheets (Unaudited) - USD ($)

Sep. 30, 2023

Dec. 31, 2022

CURRENT ASSETS

Cash and cash equivalents

$ 994,131

$ 2,336,636

Accounts receivable, net

4,115,964

3,208,286

Advances to suppliers

8,737,956

6,589,759

Amount due from related parties

6,964

Inventories, net

7,086,791

7,654,242

Prepayments and other receivables

1,278,336

1,527,079

^[1]

Current assets from discontinued operations-held for sale

2,147,050

2,099,673

Total current assets

24,367,192

23,415,675

NON-CURRENT ASSETS

Deferred tax assets

184,433

190,132

Property, plant and equipment, net

1,671,628

1,703,420

Intangible assets-net

468,163

16,183

Operating lease-right of use assets

2,907,606

2,942,265

Goodwill

2,065,666

Non-current assets from discontinued operations-held for sale

3,376,261

3,761,149

Total non-current assets

10,673,757

10,678,815

^[1]

TOTAL ASSETS

35,040,949

34,094,490

^[1]

CURRENT LIABILITIES

Short-term loans

1,136,522

818,425

Long-term loans due within one year

135,809

105,965

Convertible promissory notes, net

1,108,785

Accounts payable, trade

10,438,404

10,785,531

Advances from customers

761,759

923,131

Taxes payable

26,800

71,915

Other payables and accrued liabilities

3,265,456

3,175,574

Lease liabilities

^[2]

726,309

532,630

Current liabilities from discontinued operations-held for sale

3,143,243

3,239,950

Total current liabilities

20,158,497

23,742,347

^[1]

NON-CURRENT LIABILITIES

Lease liabilities

^[2]

2,447,060

2,574,751

Long-term loans

24,374

314,786

Non-current liabilities from discontinued operations-held for sale

2,269,672

2,245,373

Total non-current liabilities

4,741,106

5,134,910

TOTAL LIABILITIES

24,899,603

28,877,257

^[1]

STOCKHOLDERS’ EQUITY

Common Stock, $0.001 par value; 200,000,000 shares authorized; 6,673,006 and 3,764,780 shares issued and outstanding as of September 30, 2023, and December 31, 2022, respectively

^[3]

6,673

3,765

Additional paid-in capital

78,997,594

71,899,271

Statutory reserves

2,263,857

Accumulated deficit

(71,429,357)

(70,143,785)

Accumulated other comprehensive income (loss)

(1,132,206)

24,583

Total BIMI International Medical Inc.’s equity

8,706,561

4,047,691

NON-CONTROLLING INTERESTS

1,434,785

1,169,542

Total stockholders’ equity

10,141,346

5,217,233

Total liabilities and stockholders’ equity

35,040,949

34,094,490

^[1]

Related Party

CURRENT LIABILITIES

Amount due to related parties

$ 524,195

$ 2,980,441

^[1]

[1]	In our financial statements for the year ended December 31, 2022, we incorrectly accounted for the acquisition of Phenix Bio Inc. On July 5, 2022, we entered into a stock purchase agreement, which was subsequently amended, pursuant to which we agreed to acquire Phenix and paid a deposit of $180,000 on July 7, 2022. The closing did not occur until March 15, 2023. As of December 31, 2022, the accounting for the Phenix acquisition was incorrectly recorded as follows: (1) a long-term equity investment as a debit entry, (2) cash as a credit, and (3) other payables as a credit entry. Since the Phenix acquisition had not taken place as of December 31, 2022, it should not have been recorded as a long-term equity investment. As such, we reversed the long-term equity investment account and other payables account and recorded the deposit as a prepayment.
[2]	The Company’s operating leases include the leases of operating companies only and do not include discontinued operations-held for sale.
[3]	On February 2, 2022, we effected a reverse stock split of Common Stock at a ratio of 1-to-5 and on December 9, 2022, we effected a reverse stock split of Common Stock at a ratio of 1-to-10 (collectively, the “Reverse Splits”).