$FVTI

Fortune Valley Treasures, Inc.

CIK:0001626745|SEC Filings

Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Income Statement [Abstract]
Net revenues (including $5,907 and $42,848 from related parties for the three months ended June 30, 2024 and 2023, respectively; $9,751 and $69,598 from related parties for the six months ended June 30, 2024 and 2023, respectively)	$ 247,061	$ 1,272,597	$ 514,883	$ 2,907,886
Cost of revenues (including $79,439 and $133,114 from related parties for the three months ended June 30, 2024 and 2023, respectively; $167,351 and $362,096 from related parties for the six months ended June 30, 2024 and 2023, respectively)	202,785	652,798	415,674	1,330,165
Gross profit	44,276	619,799	99,209	1,577,721
Operating expenses:
Selling and distribution expenses	12,198	13,016	24,795	26,258
General and administrative expenses	804,228	1,027,572	1,839,505	1,978,967
Operating loss	(772,150)	(420,789)	(1,765,091)	(427,504)
Other income (expense):
Other income	2,213	6,436	5,207	8,210
Interest income	3	16	33	47
Interest expense	(7,699)	(8,964)	(18,543)	(18,256)
Other expense, net	(5,483)	(2,512)	(13,303)	(9,999)
Loss before income tax	(777,633)	(423,301)	(1,778,394)	(437,503)
Income tax expense	90	21,528	409	96,502
Net loss	(777,723)	(444,829)	(1,778,803)	(534,005)
Less: Net loss attributable to noncontrolling interests	(48,247)	(58,004)	(49,796)	(58,361)
Net loss attributable to Fortune Valley Treasures, Inc.	(729,476)	(386,825)	(1,729,007)	(475,644)
Other comprehensive loss:
Foreign currency translation loss	(26,707)	(422,433)	(96,038)	(376,961)
Total comprehensive loss	(804,430)	(867,262)	(1,874,841)	(910,966)
Less: comprehensive loss attributable to noncontrolling interests	(50,828)	(99,383)	(52,484)	(99,558)
Comprehensive loss attributable to Fortune Valley Treasures, Inc.	$ (753,602)	$ (767,879)	$ (1,822,357)	$ (811,408)
Loss per share
Basic loss per share of common stock	$ (0.05)	$ (0.02)	$ (0.11)	$ (0.03)
Diluted loss per share of common stock	$ (0.05)	$ (0.02)	$ (0.11)	$ (0.03)
Basic weighted average shares outstanding	15,655,038	15,655,038	15,655,038	15,655,038
Diluted weighted average shares outstanding	15,655,038	15,655,038	15,655,038	15,655,038

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Cash flows from operating activities
Net loss	$ (1,778,803)	$ (534,005)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization expense	116,406	124,680
Non-cash lease expense	78,396	91,369
Allowance for credit losses	1,119,983	960,144
Loss on disposal of intangible asset		1,855
Changes in operating assets and liabilities
Accounts receivable, net	(222,303)	(896,403)
Inventories	(2,745)	68,723
Prepayments and other current assets, net	151,351	232
Deposits paid, net	1	(12,080)
Accounts payable	(52,590)	32,763
Due to related parties	280,612	111,324
Customer advances	6,016	(17,538)
Accrued liabilities	142,612	74,167
Income tax payable	(1,431)	(17,871)
Operating lease obligations	(112,310)	(73,176)
Net cash used in operating activities	(274,805)	(85,816)
Cash flows from investing activities
Acquisition of property and equipment		(4,786)
Acquisition of intangible asset		(702)
Net cash used in investing activities		(5,488)
Cash flows from financing activities
Borrowings from and repayments to revolving credit lines, net		7,224
Borrowings from bank loans	74,927	113,418
Repayments of bank loans	(109,896)	(58,299)
Borrowings from and repayments to third party, net	34,839	(19,541)
Net cash (used in) provided by financing activities	(130)	42,802
Effect of exchange rate changes on cash and cash equivalents	(5,910)	(41,233)
Net changes in cash and cash equivalents	(280,845)	(89,735)
Cash and cash equivalents–beginning of the period	288,255	165,685
Cash and cash equivalents–end of the period	7,410	75,950
Supplementary cash flow information:
Interest paid	18,543	18,378
Income taxes paid	2,495	152,140
Non-cash investing and financing activities
Operating lease right-of-use assets obtained in exchange for operating lease obligations	67,520	39,797
Liabilities assumed in connection with purchase of property and equipment		$ 28,234

Condensed Consolidated Balance Sheets - USD ($)	Jun. 30, 2024	Dec. 31, 2023
Current assets
Cash and cash equivalents	$ 7,410	$ 288,255
Accounts receivable, net (including $33,043 and $61,113 from related parties as of June 30, 2024 and December 31, 2023, respectively)	2,155,612	3,118,892
Inventories	34,546	32,587
Prepayments and other current assets, net (including $806,932 and $941,978 to related parties as of June 30, 2024 and December 31, 2023, respectively)	1,454,869	1,643,455
Total current assets	3,652,437	5,083,189
Non-current assets
Deposits paid, net (including $523,886 and $536,450 to related parties as of June 30, 2024 and December 31, 2023, respectively)	603,970	618,456
Property and equipment, net	65,544	83,706
Intangible assets, net	46,364	151,639
Total Assets	4,595,437	6,249,169
Current liabilities
Accounts payable (including $187,954 and $162,310 to related parties as of June 30, 2024 and December 31, 2023, respectively)	518,058	583,887
Accrued liabilities	756,864	627,457
Bank and other borrowings - current	420,636	458,023
Income tax payable		1,453
Customer advances	1,338,274	1,364,260
Total current liabilities	4,153,090	3,851,925
Non-current liabilities
Bank and other borrowings	218,028	212,042
Total Liabilities	4,479,440	4,258,331
Stockholders’ Equity
Common stock, 150,000,000 shares authorized, 15,655,038 shares issued and outstanding as of June 30, 2024 and December 31, 2023	15,655	15,655
Additional paid-in capital	11,061,233	11,061,233
Accumulated deficit and statutory reserves	(10,280,026)	(8,551,019)
Accumulated other comprehensive loss	(499,540)	(406,190)
Total Fortune Valley Treasures, Inc. stockholders’ equity	297,322	2,119,679
Noncontrolling interests	(181,325)	(128,841)
Total Stockholders’ Equity	115,997	1,990,838
Total Liabilities and Stockholders’ Equity	4,595,437	6,249,169
Nonrelated Party [Member]
Non-current assets
Operating lease right-of-use assets	171,989	248,626
Current liabilities
Operating lease obligations current	90,801	119,633
Non-current liabilities
Operating lease obligations non-current	76,899	153,487
Related Party [Member]
Non-current assets
Operating lease right-of-use assets	55,133	63,553
Current liabilities
Operating lease obligations current	12,730	16,986
Due to related parties	1,015,727	680,226
Non-current liabilities
Operating lease obligations non-current	$ 31,423	$ 40,877