Ionix Technology, Inc. Announces Second Quarter 2020 Financial Results
LAS VEGAS, NV, Feb. 14, 2020 (GLOBE NEWSWIRE) -- Ionix Technology, Inc. (OTCQB: IINX), ("Ionix Technology", "IINX" or "the Company"
, a business aggregator in photoelectric display and smart energy fields, announced its financial results for the three months ended December 31, 2019.
Second Quarter 2020 Financial Highlights:
The total revenues increased by $4,955,221 or 208% from the three months ended December 31, 2018 to the three months ended December 31, 2019.
Gross profit increased by 242% from the three months ended December 31, 2018 to the three months ended December 31, 2019.
During the three months ended December 31, 2019 and 2018, net income was $135,658 and $6,854, respectively.
“The financial results of the past four quarters fully demonstrated the benefits from our acquisition of Fangguan Electronics completed on December 27, 2018,” said Mr. Cheng Li, Chairman and CEO of Ionix Technology. “The solid operation results showed our successful integration after the acquisition. Also, our continuous investment in innovation helps Ionix Technology stay competitive in the photoelectric display industry.”
Mr. Li continued, “Currently, the epidemic of pneumonia caused by novel coronavirus is severe in China. With close attention continuously paid to the development of the Epidemic, we will diligently resume the operations and make proper arrangements for subsequent issues.”
Revenue
During the three months ended December 31, 2019 and 2018, total revenues were $7,332,968 and $2,377,747, respectively. The total revenues increased by $4,955,221 or 208% from the three months ended December 31, 2018 to the three months ended December 31, 2019.
Among the significant increase of $4,955,221 in total revenues for the three months ended December 31, 2019 compared to 2018, an increase of $5,770,431 can be directly attributed to the acquisition of Fangguan Electronics on December 27, 2018. The acquisition expanded operations in the fields of LCM in the PRC and significantly increased the volume of goods (LCD etc.) being sold.
The increase in total revenues due to acquisition of Fangguan Electronics was partially offset by the decreases of $815,210 related to the existing business (excluding Fangguan Electronics) for the three months ended December 31, 2019 compared to 2018. After Fangguan Electronics was acquired, all business of Fangguan Photoelectric was replaced by Fangguan Electronics, which caused total revenues to decrease by $1,041,165 for the three months ended December 31, 2019. In addition, the decreases were also the result of a decline in sales of portable power banks (the ever-primary produce of the Company before the acquisition) of $182,103 for the three months ended December 31, 2019, which is expected to be offset by increases in average sales prices as the Company increased emphasis on higher margin goods for these existing business (excluding Fangguan Electronics).
Cost of Revenue
During the three months ended December 31, 2019 and 2018, the total cost of revenues was $6,270,572 and $2,066,912, respectively. The total cost of revenues increased by $4,203,660 or 203% from the three months ended December 31, 2018 to the three months ended December 31, 2019.
Among the significant increase of $4,203,660 in total cost of revenues for the three months ended December 31, 2019 compared to 2018, an increase of $4,884,146 can be directly attributed to the acquisition of Fangguan Electronics on December 27, 2018.
The increase in total cost of revenues due to the acquisition of Fangguan Electronics was partially offset by the decreases of $680,485 related to the existing business (excluding Fangguan Electronics) for the three months ended December 31, 2019 compared to 2018. After Fangguan Electronics was acquired, all business of Fangguan Photoelectric was replaced by Fangguan Electronics, which caused total cost of revenues to decrease by $898,536 for the three months ended December 31, 2019. In addition, the decreases were also the result of a decline in cost of revenues of portable power banks (the ever-primary produce of the Company before the acquisition) of $64,934 for the three months ended December 31, 2019, which was in consistent with the decrease in sales of portable power banks.
Gross Profit
During the three months ended December 31, 2019 and 2018, the gross profit was $1,062,396 and $310,835, respectively. The gross profit increased by 242% from the three months ended December 31, 2018 to the three months ended December 31, 2019. Gross profit margin maintained at 14% during the three months ended December 31, 2019 as compared to 13% for the three months ended December 31, 2018.
The difference in gross profit margin can be attributed to the fact that the LCM manufactured and sold by Fangguan Electronics (which became a variable interest entity of the Company on December 27, 2018) holds a relatively higher gross profit margin than that of the existing business (excluding Fangguan Electronics) before the acquisition.
Selling, General and Administrative Expenses
During the three months ended December 31, 2019 and 2018, selling, general and administrative expenses were $497,197 and $232,179, respectively.
The difference can be attributed to the depreciation and amortization expenses, payroll expenses, professional fees and other expenses incurred during the three months ended December 31, 2019 after Fangguan Electronics became a variable interest entity of the Company on December 27, 2018.
Research and Development Expenses
During the three months ended December 31, 2019 and 2018, research and development expenses were $284,028 and $0, respectively. All research and development expenses were incurred by Fangguan Electronics (a variable interest entity of the Company since December 27, 2018).
Net Income
During the three months ended December 31, 2019 and 2018, net income was $135,658 and $6,854, respectively.
The difference can be attributed to increase in gross profits netting off by the increase of expenses during the three months ended December 31, 2019.
Cash and Financial Position
As of December 31, 2019, the Company had cash and cash equivalents of $ 1,577,702, compared to $ 509,615 as of June 30, 2019.
The Company had a working capital of $ 1,869,711 as of December 31, 2019 compared to working capital of $717,977 as of June 30, 2019.
During the six months ended December 31, 2019, net cash provided by operating activities was $588,568 compared to net cash used in operating activities of $208,621 for the six months ended December 31, 2018. The change was mainly due to the increase of $662,927 in the net income, an increase of $492,727 resulting from adjustments to net income for non-cash items, offsetting by the increase of $358,465 in cash outflow from changes in operating assets and liabilities during the six months ended December 31, 2019 compared to the same period of 2018.
During the six months ended December 31, 2019, net cash used in investing activities was $190,675 compared to net cash provided by investing activities of $685,428 for the six months ended December 31, 2018. Cash used in the acquisition of the equipment increased by $188,512 from 2018 to 2019 due to acquisition of Fangguan Electronics. In addition, the Company also received cash of $687,591 in December 2018 for acquisition of Fangguan Electronics.
During the six months ended December 31, 2019, the Company was provided by $683,561 in cash by financing activities, which was primarily due to the proceeds received from issuance of convertible notes. During the six months ended December 31, 2018, the Company received $240,456 in cash for financing activities, which was primarily attributable to the proceeds from the related party loans offsetting by the decrease in notes receivable inflows.
About Ionix Technology, Inc.
Ionix Technology, Inc. is a holding company that is principally engaged in the photoelectric display and smart energy industries. The company has five operating subsidiaries: Changchun Fangguan Electronics Technology Co., Ltd, a company which has been focusing on R&D, manufacturing and marketing LCM and LCD. Changchun Fangguan Photoelectric Display Technology Co., Ltd, a company which specializes in developing, designing, and selling TN and STN LCD, STN, CSTN, and TFT LCD modules as well as other related products; Shenzhen Baileqi Electronic Technology Co., Ltd, a company which specializes in LCD slicing, filling, researching and designing, and selling of LCD Modules (LCM) and PCBs; Lisite Science Technology (Shenzhen) Co., Ltd., a company engaged in the marketing and selling of intelligent electronic devices; and Dalian Shizhe New Energy Technology Co., Ltd., a company engaged in the new energy support service, and operating the photovoltaic power generation, electric vehicles and charging piles with corresponding operation and maintenance and three dimensional parking. Currently, IINX has embarked on the layout of industrialization and marketization of front end materials and back end modules of liquid crystal displays and applications of flexible folding display technology by taking Fangguan Electronics as production bases, to seize the market share of OLED high technology.
To learn more, please visit our website: www.theiinx.com
Safe Harbor Statement
This news release contains "forward-looking statements" as that term is defined in the United States Securities Act of 1933, as amended and the Securities Exchange Act of 1934, as amended. Statements in this press release that are not purely historical are forward-looking statements, including beliefs, plans, expectations or intentions regarding the future, and results of new business opportunities. Actual results could differ from those projected in any forward-looking statements due to numerous factors, such as the inherent uncertainties associated with new business opportunities and development stage companies. Ionix Technology assumes no obligation to update the forward-looking statements. Although Ionix Technology believes that any beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance that they will prove to be accurate. Investors should refer to the risk factors disclosure outlined in Ionix Technology's annual report on Form 10-K for the most recent fiscal year, quarterly reports on Form 10-Q and other periodic reports filed from time-to-time with the U.S. Securities and Exchange Commission.
IR Contact:
Dragon Gate Investment Partners LLC
Tel: +1(646)-801-2803
Email: iinx@dgipl.com
IONIX TECHNOLOGY, INC.
CONSOLIDATED BALANCE SHEETS
(Unaudited)
December 31, 2019 June 30, 2019
ASSETS
Current Assets:
Cash and cash equivalents $ 1,577,702 $ 509,615
Notes receivable 23,546 120,182
Accounts receivable - non-related parties 5,180,639 3,639,030
- related parties 346,495 340,026
Inventory 3,009,183 3,379,146
Advances to suppliers - non-related parties 90,728 129,423
- related parties 146,157 269,498
Prepaid expenses and other current assets 424,010 269,495
Total Current Assets 10,798,460 8,656,415
Property, plant and equipment, net 7,207,067 7,508,637
Right-of-use assets – operating leases 22,676 -
Intangible assets, net 1,460,062 1,496,399
Deferred tax assets 24,901 54,361
Total Assets $ 19,513,166 $ 17,715,812
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities:
Short-term bank loan $ 2,580,201 $ 2,618,296
Accounts payable 3,416,761 2,732,327
Advance from customers 104,435 114,158
Convertible notes payable, net of debt discount and loan cost 184,165 -
Derivative liability 346,274 -
Due to related parties 2,086,788 2,105,338
Operating lease liabilities – current portion 3,254 -
Accrued expenses and other current liabilities 206,871 368,319
Total Current Liabilities 8,928,749 7,938,438
Operating lease liabilities 16,556 -
Total Liabilities 8,945,305 7,938,438
COMMITMENT AND CONTINGENCIES
Stockholders’ Equity:
Preferred stock, $.0001 par value, 5,000,000 shares authorized,
5,000,000 shares issued and outstanding 500 500
Common stock, $.0001 par value, 195,000,000 shares authorized,
114,003,000 shares issued and outstanding 11,400 11,400
Additional paid in capital 8,934,122 8,829,487
Retained earnings 1,386,800 539,866
Accumulated other comprehensive loss (206,922 ) (45,840 )
Total Stockholders' Equity attributable to the Company 10,125,900 9,335,413
Noncontrolling interest 441,961 441,961
Total Stockholders’ Equity 10,567,861 9,777,374
Total Liabilities and Stockholders’ Equity $ 19,513,166 $ 17,715,812
IONIX TECHNOLOGY, INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(Unaudited)
For the Three Months Ended
December 31,
2019 2018
Revenues $ 7,332,968 $ 2,377,747
Cost of Revenues 6,270,572 2,066,912
Gross profit 1,062,396 310,835
Operating expenses
Selling, general and administrative expense 497,197 232,179
Research and development expense 284,028 -
Total operating expenses 781,225 232,179
Income from operations 281,171 78,656
Other income (expense):
Interest expense, net of interest income (200,370 ) -
Subsidy income 7,231 -
Change in fair value of derivative liability 115,563 -
Total other expense (77,576 ) -
Income before income tax provision 203,595 78,656
Income tax provision 67,937 71,802
Net income 135,658 6,854
Other comprehensive income (loss)
Foreign currency translation adjustment 255,703 (20,039 )
Comprehensive income (loss) $ 391,361 $ (13,185 )
Earnings Per Share - Basic and Diluted $ 0.00 $ 0.00
Weighted average number of common shares outstanding - Basic and Diluted 114,003,000 99,655,174
IONIX TECHNOLOGY, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
For the Six Months Ended
December 31,
2019 2018
CASH FLOWS FROM OPERATING ACTIVITIES
Net income $ 846,934 $ 184,007
Adjustments required to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization 399,080 -
Deferred taxes 28,879 (14,884 )
Change in fair value of derivative liability (131,452 ) -
Non-cash interest 181,336 -
Changes in operating assets and liabilities:
Accounts receivable - non-related parties (1,606,240 ) 144,264
Accounts receivable - related parties (11,500 ) (45,987 )
Inventory 323,148 (294,434 )
Advances to suppliers - non-related parties 37,082 355
Advances to suppliers - related parties 120,295 201,357
Prepaid expenses and other current assets (161,718 ) 3,925
Accounts payable - non-related parties 729,495 (257,973 )
Accounts payable - related parties - (138,955 )
Advance from customers (8,120 ) (17,820 )
Accrued expenses and other current liabilities (158,651 ) 27,524
Net cash provided by (used in) operating activities 588,568 (208,621 )
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisition of property, plant and equipment (190,675 ) (2,163 )
Cash received from acquisition - 687,591
Net cash provided by (used in) investing activities (190,675 ) 685,428
CASH FLOWS FROM FINANCING ACTIVITIES
Notes receivable 95,582 (29,518 )
Proceeds from issuance of convertible notes payable 585,190 -
Proceeds from loans from related parties 2,789 269,974
Net cash provided by financing activities 683,561 240,456
Effect of exchange rate changes on cash (13,367 ) (3,851 )
Net increase in cash and cash equivalents 1,068,087 713,412
Cash and cash equivalents, beginning of period 509,615 111,462
Cash and cash equivalents, end of period $ 1,577,702 $ 824,874
Supplemental disclosure of cash flow information
Cash paid for income tax $ 102,167 $ 141,749
Cash paid for interests $ 68,967 $ -
Non-cash investing and financing activities
Issuance of 15,000,000 shares of common stock in exchange for 95.14%
ownership rights of a variable interest entity $ - $ 8,651,896
LAS VEGAS, NV, Feb. 14, 2020 (GLOBE NEWSWIRE) -- Ionix Technology, Inc. (OTCQB: IINX), ("Ionix Technology", "IINX" or "the Company"
, a business aggregator in photoelectric display and smart energy fields, announced its financial results for the three months ended December 31, 2019. Second Quarter 2020 Financial Highlights:
The total revenues increased by $4,955,221 or 208% from the three months ended December 31, 2018 to the three months ended December 31, 2019.
Gross profit increased by 242% from the three months ended December 31, 2018 to the three months ended December 31, 2019.
During the three months ended December 31, 2019 and 2018, net income was $135,658 and $6,854, respectively.
“The financial results of the past four quarters fully demonstrated the benefits from our acquisition of Fangguan Electronics completed on December 27, 2018,” said Mr. Cheng Li, Chairman and CEO of Ionix Technology. “The solid operation results showed our successful integration after the acquisition. Also, our continuous investment in innovation helps Ionix Technology stay competitive in the photoelectric display industry.”
Mr. Li continued, “Currently, the epidemic of pneumonia caused by novel coronavirus is severe in China. With close attention continuously paid to the development of the Epidemic, we will diligently resume the operations and make proper arrangements for subsequent issues.”
Revenue
During the three months ended December 31, 2019 and 2018, total revenues were $7,332,968 and $2,377,747, respectively. The total revenues increased by $4,955,221 or 208% from the three months ended December 31, 2018 to the three months ended December 31, 2019.
Among the significant increase of $4,955,221 in total revenues for the three months ended December 31, 2019 compared to 2018, an increase of $5,770,431 can be directly attributed to the acquisition of Fangguan Electronics on December 27, 2018. The acquisition expanded operations in the fields of LCM in the PRC and significantly increased the volume of goods (LCD etc.) being sold.
The increase in total revenues due to acquisition of Fangguan Electronics was partially offset by the decreases of $815,210 related to the existing business (excluding Fangguan Electronics) for the three months ended December 31, 2019 compared to 2018. After Fangguan Electronics was acquired, all business of Fangguan Photoelectric was replaced by Fangguan Electronics, which caused total revenues to decrease by $1,041,165 for the three months ended December 31, 2019. In addition, the decreases were also the result of a decline in sales of portable power banks (the ever-primary produce of the Company before the acquisition) of $182,103 for the three months ended December 31, 2019, which is expected to be offset by increases in average sales prices as the Company increased emphasis on higher margin goods for these existing business (excluding Fangguan Electronics).
Cost of Revenue
During the three months ended December 31, 2019 and 2018, the total cost of revenues was $6,270,572 and $2,066,912, respectively. The total cost of revenues increased by $4,203,660 or 203% from the three months ended December 31, 2018 to the three months ended December 31, 2019.
Among the significant increase of $4,203,660 in total cost of revenues for the three months ended December 31, 2019 compared to 2018, an increase of $4,884,146 can be directly attributed to the acquisition of Fangguan Electronics on December 27, 2018.
The increase in total cost of revenues due to the acquisition of Fangguan Electronics was partially offset by the decreases of $680,485 related to the existing business (excluding Fangguan Electronics) for the three months ended December 31, 2019 compared to 2018. After Fangguan Electronics was acquired, all business of Fangguan Photoelectric was replaced by Fangguan Electronics, which caused total cost of revenues to decrease by $898,536 for the three months ended December 31, 2019. In addition, the decreases were also the result of a decline in cost of revenues of portable power banks (the ever-primary produce of the Company before the acquisition) of $64,934 for the three months ended December 31, 2019, which was in consistent with the decrease in sales of portable power banks.
Gross Profit
During the three months ended December 31, 2019 and 2018, the gross profit was $1,062,396 and $310,835, respectively. The gross profit increased by 242% from the three months ended December 31, 2018 to the three months ended December 31, 2019. Gross profit margin maintained at 14% during the three months ended December 31, 2019 as compared to 13% for the three months ended December 31, 2018.
The difference in gross profit margin can be attributed to the fact that the LCM manufactured and sold by Fangguan Electronics (which became a variable interest entity of the Company on December 27, 2018) holds a relatively higher gross profit margin than that of the existing business (excluding Fangguan Electronics) before the acquisition.
Selling, General and Administrative Expenses
During the three months ended December 31, 2019 and 2018, selling, general and administrative expenses were $497,197 and $232,179, respectively.
The difference can be attributed to the depreciation and amortization expenses, payroll expenses, professional fees and other expenses incurred during the three months ended December 31, 2019 after Fangguan Electronics became a variable interest entity of the Company on December 27, 2018.
Research and Development Expenses
During the three months ended December 31, 2019 and 2018, research and development expenses were $284,028 and $0, respectively. All research and development expenses were incurred by Fangguan Electronics (a variable interest entity of the Company since December 27, 2018).
Net Income
During the three months ended December 31, 2019 and 2018, net income was $135,658 and $6,854, respectively.
The difference can be attributed to increase in gross profits netting off by the increase of expenses during the three months ended December 31, 2019.
Cash and Financial Position
As of December 31, 2019, the Company had cash and cash equivalents of $ 1,577,702, compared to $ 509,615 as of June 30, 2019.
The Company had a working capital of $ 1,869,711 as of December 31, 2019 compared to working capital of $717,977 as of June 30, 2019.
During the six months ended December 31, 2019, net cash provided by operating activities was $588,568 compared to net cash used in operating activities of $208,621 for the six months ended December 31, 2018. The change was mainly due to the increase of $662,927 in the net income, an increase of $492,727 resulting from adjustments to net income for non-cash items, offsetting by the increase of $358,465 in cash outflow from changes in operating assets and liabilities during the six months ended December 31, 2019 compared to the same period of 2018.
During the six months ended December 31, 2019, net cash used in investing activities was $190,675 compared to net cash provided by investing activities of $685,428 for the six months ended December 31, 2018. Cash used in the acquisition of the equipment increased by $188,512 from 2018 to 2019 due to acquisition of Fangguan Electronics. In addition, the Company also received cash of $687,591 in December 2018 for acquisition of Fangguan Electronics.
During the six months ended December 31, 2019, the Company was provided by $683,561 in cash by financing activities, which was primarily due to the proceeds received from issuance of convertible notes. During the six months ended December 31, 2018, the Company received $240,456 in cash for financing activities, which was primarily attributable to the proceeds from the related party loans offsetting by the decrease in notes receivable inflows.
About Ionix Technology, Inc.
Ionix Technology, Inc. is a holding company that is principally engaged in the photoelectric display and smart energy industries. The company has five operating subsidiaries: Changchun Fangguan Electronics Technology Co., Ltd, a company which has been focusing on R&D, manufacturing and marketing LCM and LCD. Changchun Fangguan Photoelectric Display Technology Co., Ltd, a company which specializes in developing, designing, and selling TN and STN LCD, STN, CSTN, and TFT LCD modules as well as other related products; Shenzhen Baileqi Electronic Technology Co., Ltd, a company which specializes in LCD slicing, filling, researching and designing, and selling of LCD Modules (LCM) and PCBs; Lisite Science Technology (Shenzhen) Co., Ltd., a company engaged in the marketing and selling of intelligent electronic devices; and Dalian Shizhe New Energy Technology Co., Ltd., a company engaged in the new energy support service, and operating the photovoltaic power generation, electric vehicles and charging piles with corresponding operation and maintenance and three dimensional parking. Currently, IINX has embarked on the layout of industrialization and marketization of front end materials and back end modules of liquid crystal displays and applications of flexible folding display technology by taking Fangguan Electronics as production bases, to seize the market share of OLED high technology.
To learn more, please visit our website: www.theiinx.com
Safe Harbor Statement
This news release contains "forward-looking statements" as that term is defined in the United States Securities Act of 1933, as amended and the Securities Exchange Act of 1934, as amended. Statements in this press release that are not purely historical are forward-looking statements, including beliefs, plans, expectations or intentions regarding the future, and results of new business opportunities. Actual results could differ from those projected in any forward-looking statements due to numerous factors, such as the inherent uncertainties associated with new business opportunities and development stage companies. Ionix Technology assumes no obligation to update the forward-looking statements. Although Ionix Technology believes that any beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance that they will prove to be accurate. Investors should refer to the risk factors disclosure outlined in Ionix Technology's annual report on Form 10-K for the most recent fiscal year, quarterly reports on Form 10-Q and other periodic reports filed from time-to-time with the U.S. Securities and Exchange Commission.
IR Contact:
Dragon Gate Investment Partners LLC
Tel: +1(646)-801-2803
Email: iinx@dgipl.com
IONIX TECHNOLOGY, INC.
CONSOLIDATED BALANCE SHEETS
(Unaudited)
December 31, 2019 June 30, 2019
ASSETS
Current Assets:
Cash and cash equivalents $ 1,577,702 $ 509,615
Notes receivable 23,546 120,182
Accounts receivable - non-related parties 5,180,639 3,639,030
- related parties 346,495 340,026
Inventory 3,009,183 3,379,146
Advances to suppliers - non-related parties 90,728 129,423
- related parties 146,157 269,498
Prepaid expenses and other current assets 424,010 269,495
Total Current Assets 10,798,460 8,656,415
Property, plant and equipment, net 7,207,067 7,508,637
Right-of-use assets – operating leases 22,676 -
Intangible assets, net 1,460,062 1,496,399
Deferred tax assets 24,901 54,361
Total Assets $ 19,513,166 $ 17,715,812
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities:
Short-term bank loan $ 2,580,201 $ 2,618,296
Accounts payable 3,416,761 2,732,327
Advance from customers 104,435 114,158
Convertible notes payable, net of debt discount and loan cost 184,165 -
Derivative liability 346,274 -
Due to related parties 2,086,788 2,105,338
Operating lease liabilities – current portion 3,254 -
Accrued expenses and other current liabilities 206,871 368,319
Total Current Liabilities 8,928,749 7,938,438
Operating lease liabilities 16,556 -
Total Liabilities 8,945,305 7,938,438
COMMITMENT AND CONTINGENCIES
Stockholders’ Equity:
Preferred stock, $.0001 par value, 5,000,000 shares authorized,
5,000,000 shares issued and outstanding 500 500
Common stock, $.0001 par value, 195,000,000 shares authorized,
114,003,000 shares issued and outstanding 11,400 11,400
Additional paid in capital 8,934,122 8,829,487
Retained earnings 1,386,800 539,866
Accumulated other comprehensive loss (206,922 ) (45,840 )
Total Stockholders' Equity attributable to the Company 10,125,900 9,335,413
Noncontrolling interest 441,961 441,961
Total Stockholders’ Equity 10,567,861 9,777,374
Total Liabilities and Stockholders’ Equity $ 19,513,166 $ 17,715,812
IONIX TECHNOLOGY, INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(Unaudited)
For the Three Months Ended
December 31,
2019 2018
Revenues $ 7,332,968 $ 2,377,747
Cost of Revenues 6,270,572 2,066,912
Gross profit 1,062,396 310,835
Operating expenses
Selling, general and administrative expense 497,197 232,179
Research and development expense 284,028 -
Total operating expenses 781,225 232,179
Income from operations 281,171 78,656
Other income (expense):
Interest expense, net of interest income (200,370 ) -
Subsidy income 7,231 -
Change in fair value of derivative liability 115,563 -
Total other expense (77,576 ) -
Income before income tax provision 203,595 78,656
Income tax provision 67,937 71,802
Net income 135,658 6,854
Other comprehensive income (loss)
Foreign currency translation adjustment 255,703 (20,039 )
Comprehensive income (loss) $ 391,361 $ (13,185 )
Earnings Per Share - Basic and Diluted $ 0.00 $ 0.00
Weighted average number of common shares outstanding - Basic and Diluted 114,003,000 99,655,174
IONIX TECHNOLOGY, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
For the Six Months Ended
December 31,
2019 2018
CASH FLOWS FROM OPERATING ACTIVITIES
Net income $ 846,934 $ 184,007
Adjustments required to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization 399,080 -
Deferred taxes 28,879 (14,884 )
Change in fair value of derivative liability (131,452 ) -
Non-cash interest 181,336 -
Changes in operating assets and liabilities:
Accounts receivable - non-related parties (1,606,240 ) 144,264
Accounts receivable - related parties (11,500 ) (45,987 )
Inventory 323,148 (294,434 )
Advances to suppliers - non-related parties 37,082 355
Advances to suppliers - related parties 120,295 201,357
Prepaid expenses and other current assets (161,718 ) 3,925
Accounts payable - non-related parties 729,495 (257,973 )
Accounts payable - related parties - (138,955 )
Advance from customers (8,120 ) (17,820 )
Accrued expenses and other current liabilities (158,651 ) 27,524
Net cash provided by (used in) operating activities 588,568 (208,621 )
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisition of property, plant and equipment (190,675 ) (2,163 )
Cash received from acquisition - 687,591
Net cash provided by (used in) investing activities (190,675 ) 685,428
CASH FLOWS FROM FINANCING ACTIVITIES
Notes receivable 95,582 (29,518 )
Proceeds from issuance of convertible notes payable 585,190 -
Proceeds from loans from related parties 2,789 269,974
Net cash provided by financing activities 683,561 240,456
Effect of exchange rate changes on cash (13,367 ) (3,851 )
Net increase in cash and cash equivalents 1,068,087 713,412
Cash and cash equivalents, beginning of period 509,615 111,462
Cash and cash equivalents, end of period $ 1,577,702 $ 824,874
Supplemental disclosure of cash flow information
Cash paid for income tax $ 102,167 $ 141,749
Cash paid for interests $ 68,967 $ -
Non-cash investing and financing activities
Issuance of 15,000,000 shares of common stock in exchange for 95.14%
ownership rights of a variable interest entity $ - $ 8,651,896
