Second Quarter Revenue Increased 75% YoY
and 54% Sequentially to $3.4
Million
New Distribution Agreements for Complementary
Products and Product Launches Enhance Portfolio
ONTARIO,
Calif., Aug. 16, 2024 /PRNewswire/ -- Nature's
Miracle Holding Inc. (NASDAQ: NMHI) ("Nature's Miracle" or the
"Company"), a leader in vertical farming technology and
infrastructure, today reported its financial and operational update
for the second quarter ended June 30,
2024.
Second Quarter 2024 and Subsequent Business Updates
- Revenue of $3.4 million, a 75%
increase from the same period in 2023, and a 54% increase compared
to the first quarter of 2024.
- Gross margin improved 800 basis points to 13.3% from the same
period in 2023.
- Launched and completed first shipment of Efinity brand
Smart Dehumidifier product.
- Developed a strong pipeline of grow light orders within the
energy rebate market with total grow light purchase orders of
$5 million in July.
Management Commentary
James Li, Chairman and Chief
Executive Officer of Nature's Miracle, commented, "During the first
full quarter as a public company, Nature's Miracle recognized
significant revenue growth, strong new order trends for our
existing products and diversification of our portfolio with the
launch of new products and new distribution partners. In the second
quarter, we achieved revenue growth of 75% from the prior year
period, which was driven by strong demand from the energy rebate
market for LED grow light products and increases in our marketing
team and efforts. Our 800-basis point expansion of gross margin was
the result of higher margins realized through the Company's Efinity
brand products, favorable pricing trends from Asian manufacturers and incentive costs to the Company for operating
in the energy rebate market. Taken together, we are rapidly growing
our footprint across the North American market with our vertically
integrated approach of products and solutions for the CEA
market."
"We are pleased with our progress through the first half of
2024, and at this early stage of development as a public company.
Our strategic focus is on continuing to build a foundation of
existing, new and licensed products as catalysts for revenue growth
in the second half of 2024 and beyond. The record purchase orders
received in July are an indication that Nature's Miracle is well
positioned in the market and with our effective sales and marketing
channels, we will seek to further capitalize on this momentum. A
defining component of our sales and marketing efforts focuses on
reinforcing our distinct position as a fully integrated provider of
comprehensive vertical farms,"
concluded Mr. Li.
Second Quarter 2024 Financial Summary
For the second quarter of 2024, revenue totaled $3.4 million, increasing 75% from $1.9 million in the prior year period. The
increase was primarily attributable to an increase in demand of our
Efinity LED light products from the energy rebate market and the
increases in our sales force as catalyst for this growth.
Gross profit for the second quarter of 2024 totaled $0.5 million or 13.3% of revenue, as compared to
$0.1 million or 5.2% of revenue in
the prior year period. The increase in gross profit as a percentage
of revenue was primarily attributable to the higher margin component of
our Efinity brand products and the finance structure of the energy rebate
market.
Selling, general and administrative expenses increased to
$1.5 million compared to $0.5 million in the prior year period. The
increase was primarily due to public company costs, higher spend on
staffing related, legal, accounting and other professional fees as
well as stock compensation charges.
Net loss for the second quarter of 2024 totaled $1.8 million, or $(0.07) per share, and net loss of $0.4 million, or $(0.02) per share in the prior year period.
Cash and cash equivalents totaled $30,532 at June 30,
2024, compared to $221,760 at
December 31, 2023. Subsequent to
quarter end, on July 29, 2024, the
company closed a public offering for aggregate gross proceeds of
$1.2 million.
About Nature's Miracle Holding Inc.
Nature's Miracle (NASDAQ: NMHI) is a growing agriculture
technology company providing equipment and services to growers in
the Controlled Environment Agriculture ("CEA") industry which also
includes vertical farming in North
America. Nature's Miracle offers hardware to design, build
and operate various indoor growing settings including greenhouse
and indoor-growing spaces. Nature's Miracle, through its two
wholly-owned subsidiaries Visiontech Group, Inc. and Hydroman,
Inc., provides grow lights as well as other hydroponic products to
hundreds of indoor growers in North
America. For more information visit
www.Nature-Miracle.com.
Forward-Looking Statements
The information in this press release includes "forward-looking
statements" within the meaning of the Private Securities Litigation
Reform Act of 1995. Forward-looking statements include, but are not
limited to, statements regarding expectations, hopes, beliefs,
intentions or strategies regarding the future. In addition, any
statements that refer to projections, forecasts or other
characterizations of future events or circumstances, including any
underlying assumptions, are forward-looking statements. The words
"anticipate," "believe," "contemplate," "continue," "could,"
"estimate," "expect," "forecast," "intends," "may," "will,"
"might," "plan," "possible," "potential," "predict," "project,"
"should," "would" and similar expressions may identify
forward-looking statements, but the absence of these words does not
mean that a statement is not forward-looking. Forward-looking
statements in this press release may include, for example: the
intended use of proceeds from the offering; successful launch and
implementation of Nature's Miracle's joint projects with
manufacturers and other supply chain participants of steel, rubber
and other materials; changes in Nature's Miracle's strategy, future
operations, financial position, estimated revenues and losses,
projected costs, prospects and plans; Nature's Miracle's ability to
develop and launch new products and services; Nature's Miracle's
ability to successfully and efficiently integrate future expansion
plans and opportunities; Nature's Miracle's ability to grow its
business in a cost-effective manner; Nature's Miracle's product
development timeline and estimated research and development costs;
the implementation, market acceptance and success of Nature's
Miracle's business model; developments and projections relating to
Nature's Miracle's competitors and industry; and Nature's Miracle's
approach and goals with respect to technology. These
forward-looking statements are based on information available as of
the date of this press release, and current expectations, forecasts
and assumptions, and involve a number of judgments, risks and
uncertainties. Accordingly, forward-looking statements should not
be relied upon as representing views as of any subsequent date, and
no obligation is undertaken to update forward-looking statements to
reflect events or circumstances after the date they were made,
whether as a result of new information, future events or otherwise,
except as may be required under applicable securities laws. As a
result of a number of known and unknown risks and uncertainties,
actual results or performance may be materially different from
those expressed or implied by these forward-looking statements.
Some factors that could cause actual results to differ include: the
ability to maintain the listing of the Company's shares on Nasdaq;
changes in applicable laws or regulations; the effects of the
coronavirus (COVID-19) and any future outbreaks on Nature's
Miracle's business; the ability to implement business plans,
forecasts, and other expectations, and identify and realize
additional opportunities; the risk of downturns and the possibility
of rapid change in the highly competitive industry in which
Nature's Miracle's operates; the risk that Nature's Miracle's and
its current and future collaborators are unable to successfully
develop and commercialize Nature's Miracle's products or services,
or experience significant delays in doing so; the risk that the
Company may never achieve or sustain profitability; the risk that
the Company will need to raise additional capital to execute its
business plan, which may not be available on acceptable terms or at
all; the risk that the Company experiences difficulties in managing
its growth and expanding operations; the risk that third-party
suppliers and manufacturers are not able to fully and timely meet
their obligations; the risk that Nature's Miracle's is unable to
secure or protect its intellectual property; the possibility that
Nature's Miracle's may be adversely affected by other economic,
business, and/or competitive factors; and other risks and
uncertainties described in Nature's Miracle's filings from time to
time with the SEC.
Contacts
George
Yutuc
Chief Financial Officer
George.Yutuc@nature-miracle.com
MZ North America
Shannon Devine / Rory Rumore
Main: 203-741-8811
NMHI@mzgroup.us
|
NATURE'S MIRACLE
HOLDING INC., SUBSIDIARIES AND VIE
|
|
UNAUDITED CONDENSED
CONSOLIDATED STATEMENT OF OPERATIONS
|
|
|
|
|
|
For the Three Months
Ended
|
|
For the Three Months
Ended
|
For the Six Months
Ended
|
For the Six Months
Ended
|
|
|
|
|
June 30,
|
|
June 30,
|
June 30,
|
June 30,
|
|
|
|
|
2024
|
|
2023
|
2024
|
2023
|
|
|
|
|
(Unaudited)
|
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
|
REVENUE
|
|
|
$
|
3,404,967
|
|
$
|
1,943,528
|
$
|
5,609,687
|
$
|
4,910,200
|
|
COST OF
REVENUE
|
|
|
2,952,747
|
|
|
1,843,257
|
|
4,845,150
|
|
4,512,669
|
|
GROSS PROFIT
|
|
|
452,220
|
|
|
100,271
|
|
764,537
|
|
397,531
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
EXPENSES:
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative
|
|
|
1,540,983
|
|
|
458,037
|
|
2,684,120
|
|
1,015,046
|
|
Stock compensation
expenses
|
|
|
195,908
|
|
|
-
|
|
367,805
|
|
-
|
|
|
Total operating
expenses
|
|
|
1,736,891
|
|
|
458,037
|
|
3,051,925
|
|
1,015,046
|
|
LOSS FROM
OPERATIONS
|
|
|
(1,284,671)
|
|
|
(357,766)
|
|
(2,287,388)
|
|
(617,515)
|
|
OTHER
EXPENSES
|
|
|
|
|
|
|
|
|
|
|
|
Interest (expense)
income, net
|
|
|
(486,586)
|
|
|
38,890
|
|
(788,975)
|
|
(360,020)
|
|
Non cash finance
expense
|
|
|
-
|
|
|
-
|
|
(1,000,000)
|
|
-
|
|
Loss on loan
extinguishment
|
|
|
-
|
|
|
(233,450)
|
|
-
|
|
(233,450)
|
|
Other
expenses
|
|
|
3,738
|
|
|
6,716
|
|
3,738
|
|
6,346
|
|
|
Total other expense,
net
|
|
|
(482,848)
|
|
|
(187,844)
|
|
(1,785,237)
|
|
(587,124)
|
|
LOSS BEFORE INCOME
TAXES
|
|
|
(1,767,519)
|
|
|
(545,610)
|
|
(4,072,625)
|
|
(1,204,639)
|
|
PROVISION FOR (BENEFIT
OF) INCOME TAXES
|
|
|
800
|
|
|
(139,040)
|
|
2,500
|
|
(230,690)
|
|
NET LOSS
|
|
$
|
(1,768,319)
|
|
$
|
(406,570)
|
$
|
(4,075,125)
|
$
|
(973,949)
|
|
OTHER COMPREHENSIVE
LOSS
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustment
|
|
|
(83)
|
|
|
(65)
|
|
(33)
|
|
791
|
|
COMPREHENSIVE
LOSS
|
|
$
|
(1,768,402)
|
|
$
|
(406,635)
|
$
|
(4,075,158)
|
$
|
(973,158)
|
|
WEIGHTED AVERAGE NUMBER
OF COMMON STOCK*
|
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
|
|
26,458,515
|
|
|
22,272,478
|
|
24,793,466
|
|
22,272,478
|
|
LOSS PER
SHARE
|
|
|
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
|
$
|
(0.07)
|
|
$
|
(0.02)
|
$
|
(0.16)
|
$
|
(0.04)
|
|
UNAUDITED CONDENSED
BALANCE SHEET
|
|
|
|
|
|
|
As of June
30,
|
|
As of Dec
31,
|
|
|
|
|
|
2024
|
|
2023
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
CURRENT
ASSETS
|
|
|
|
|
|
|
|
Cash and cash
equivalent
|
|
$
|
30,532
|
|
$
|
221,760
|
|
Accounts receivable,
net
|
|
|
2,053,678
|
|
|
1,236,248
|
|
Accounts receivable -
related parties, net
|
|
|
717,835
|
|
|
305,669
|
|
Inventories,
net
|
|
|
4,169,333
|
|
|
5,046,084
|
|
Prepayments and other
current assets
|
|
|
347,465
|
|
|
139,734
|
|
Loans receivable -
related parties
|
|
|
-
|
|
|
460,000
|
|
|
Total Current
Assets
|
|
|
7,318,843
|
|
|
7,409,495
|
|
|
|
|
|
|
|
|
|
|
|
NON-CURRENT
ASSETS
|
|
|
|
|
|
|
|
Security
deposit
|
|
|
27,633
|
|
|
47,633
|
|
Right-of-use assets,
net
|
|
|
578,179
|
|
|
503,089
|
|
Cost method
investment
|
|
|
1,000,000
|
|
|
1,000,000
|
|
Property and equipment,
net
|
|
|
4,326,552
|
|
|
4,406,272
|
|
Deferred offering
costs
|
|
|
-
|
|
|
833,932
|
|
|
|
Total Assets
|
|
$
|
13,251,207
|
|
$
|
14,200,421
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT
LIABILITIES
|
|
|
|
|
|
|
|
Short-term
loans
|
|
$
|
2,928,183
|
|
$
|
509,443
|
|
Short-term loans -
related parties
|
|
|
908,255
|
|
|
783,255
|
|
Current portion of
long-term debts
|
|
|
284,493
|
|
|
268,805
|
|
Accounts
payable
|
|
|
8,875,916
|
|
|
8,034,044
|
|
Accounts payable -
related parties
|
|
|
2,713,074
|
|
|
2,758,074
|
|
Other payables and
accrued liabilities
|
|
|
3,385,079
|
|
|
1,351,951
|
|
Other payables -
related parties
|
|
|
292,157
|
|
|
257,954
|
|
Operating lease
liabilities - current
|
|
|
460,311
|
|
|
359,459
|
|
Tax accrual
|
|
|
452,725
|
|
|
340,628
|
|
Deferred income -
Contract liabilities
|
|
|
64,069
|
|
|
118,909
|
|
|
Total Current
Liabilities
|
|
|
20,364,262
|
|
|
14,782,522
|
|
NON-CURRENT
LIABILITIES
|
|
|
|
|
|
|
|
Long-term debts, net of
current portion
|
|
|
5,833,562
|
|
|
5,979,939
|
|
Operating lease
liabilities, net of current portion
|
|
|
184,147
|
|
|
157,897
|
|
|
Total Non-Current
Liabilities
|
|
|
6,017,709
|
|
|
6,137,836
|
|
|
|
Total
Liabilities
|
|
|
26,381,971
|
|
|
20,920,358
|
|
|
|
|
|
|
|
|
|
|
|
COMMITMENTS AND
CONTINGENCIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SHAREHOLDERS'
DEFICIT
|
|
|
|
|
|
|
|
Preferred Stock
($0.0001 par value, 1,000,000 shares authorized, none issued
and
|
|
|
|
|
|
outstanding at June 30,
2024 and December 31, 2023, respectively)
|
|
-
|
|
|
-
|
|
Common Stock ($0.0001
par value,100,000,000 shares authorized, 26,456,764 and
22,272,478
|
|
|
|
|
|
shares issued and
outstanding at June 30, 2024 and December 31, 2023,
respectively)*
|
2,645
|
|
|
2,227
|
|
Additional paid-in
capital
|
|
|
1,894,563
|
|
|
1,526,773
|
|
Accumulated
deficit
|
|
|
(15,026,864)
|
|
|
(8,247,862)
|
|
Accumulated other
comprehensive loss
|
|
|
(1,108)
|
|
|
(1,075)
|
|
|
Total Stockholders'
Deficit
|
|
|
(13,130,764)
|
|
|
(6,719,937)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Liabilities and
Stockholders' Deficit
|
|
$
|
13,251,207
|
|
$
|
14,200,421
|
|
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
|
|
|
|
|
For the Six Months
Ended
|
|
For the Six Months
Ended
|
|
|
|
|
|
June 30,
|
|
June 30,
|
|
|
|
|
|
2024
|
|
2023
|
|
|
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
CASH FLOWS FROM
OPERATING ACTIVITIES:
|
|
|
|
|
|
|
Net loss
|
$
|
(4,075,125)
|
|
$
|
(973,949)
|
|
Adjustments to
reconcile net income to net cash used in
|
|
|
|
|
|
|
|
operating
activities:
|
|
|
|
|
|
|
|
|
Depreciation
expense
|
|
79,720
|
|
|
83,388
|
|
|
|
Allowance for credit
losses
|
|
24,391
|
|
|
789
|
|
|
|
Amortization of
operating right-of-use asset
|
|
155,295
|
|
|
204,732
|
|
|
|
Amortization of debt
issuance cost
|
|
-
|
|
|
73,782
|
|
|
|
Deferred taxes
benefits
|
|
-
|
|
|
(242,908)
|
|
|
|
Loss on loan
extinguishment
|
|
-
|
|
|
233,450
|
|
|
|
Loss on early
termination of right-of-use asset
|
|
-
|
|
|
33,423
|
|
|
|
Stock compensation
expenses
|
|
367,805
|
|
|
-
|
|
|
|
Non cash finance
expense
|
|
1,000,000
|
|
|
-
|
|
|
Change in operating
assets and liabilities:
|
|
|
|
|
|
|
|
|
Accounts
receivable
|
|
(1,253,986)
|
|
|
(105,364)
|
|
|
|
Inventories
|
|
876,751
|
|
|
2,242,101
|
|
|
|
Prepayments and other
current assets
|
|
(207,731)
|
|
|
89,676
|
|
|
|
Security
deposit
|
|
20,000
|
|
|
49,960
|
|
|
|
Accounts
payable
|
|
796,876
|
|
|
(1,775,240)
|
|
|
|
Other payables and
accrued liabilities
|
|
485,314
|
|
|
(68,251)
|
|
|
|
Accrued interest
payable - related parties
|
|
34,203
|
|
|
26,033
|
|
|
|
Operating lease
liabilities
|
|
(103,284)
|
|
|
(260,484)
|
|
|
|
Tax accrual
|
|
112,097
|
|
|
12,597
|
|
|
|
Deferred income -
Contract liabilities
|
|
(54,841)
|
|
|
(121,006)
|
|
|
|
|
Net cash used in
operating activities
|
|
(1,742,515)
|
|
|
(497,271)
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES:
|
|
|
|
|
|
|
Proceeds from the
reverse recapitalization
|
|
1,120,177
|
|
|
-
|
|
Payments of transaction
costs incurred by Lakeshore
|
|
(1,044,980)
|
|
|
-
|
|
Repayments of
promissory note – related party of Lakeshore
|
|
(75,000)
|
|
|
-
|
|
Loan to related
parties
|
|
-
|
|
|
(150,000)
|
|
Loan to
Lakeshore
|
|
(40,000)
|
|
|
-
|
|
Loan repayment from
third parties
|
|
-
|
|
|
132,913
|
|
|
|
|
Net cash used in
investing activities
|
|
(39,803)
|
|
|
(17,087)
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES:
|
|
|
|
|
|
|
Payments of deferred
offering costs
|
|
(266,925)
|
|
|
(533,929)
|
|
Long-term loan
borrowing
|
|
-
|
|
|
3,338,546
|
|
Repayments on long-term
loan
|
|
(130,689)
|
|
|
(54,999)
|
|
Short-term loan
borrowing from third parties
|
|
2,487,500
|
|
|
4,812
|
|
Repayments on
short-term loan from third parties
|
|
(498,760)
|
|
|
(1,763,814)
|
|
Short-term loan
borrowing from related parties
|
|
-
|
|
|
773,255
|
|
Repayments on
short-term loan from related parties
|
|
-
|
|
|
(700,000)
|
|
Borrowings from other
payables - related parties
|
|
-
|
|
|
1,000
|
|
|
|
|
Net cash provided by
financing activities
|
|
1,591,126
|
|
|
1,064,871
|
|
EFFECT OF FOREIGN
EXCHANGE ON CASH
|
|
(36)
|
|
|
792
|
|
CHANGES IN
CASH
|
|
(191,228)
|
|
|
551,305
|
|
CASH AND CASH
EQUIVALENT, beginning of period
|
|
221,760
|
|
|
810,371
|
|
CASH AND CASH
EQUIVALENT, end of period
|
$
|
30,532
|
|
$
|
1,361,676
|
View original
content:https://www.prnewswire.com/news-releases/natures-miracle-reports-second-quarter-2024-financial-update-302223708.html
SOURCE Nature's Miracle Holding Inc.