WUXI, China, May 15, 2018 /PRNewswire/ -- Sharing Economy
International Inc. ("SEII" or "the Company") (SEII), a clean
technology and sharing economy company that designs, manufactures
and distributes of proprietary high and low temperature dyeing and
finishing machinery to the textile industry, and is engaged in the
development of sharing economy platforms and rental related
businesses, today announced its financial results for quarter
ended March 31, 2018.
"During the first quarter of 2018, our legacy dyeing and
finishing business continued to face difficult economic conditions.
Among other factors, the persistent lack of credit availability for
textile manufacturers in China put
pressure on our customers, resulting in declining revenues and
negative margins. Although we recorded our loss, our working
capital position improved, and we generated positive cash flow from
operations during the quarter as we move forward in our efforts to
position SEII for success in new markets with strong growth
potential," said Mr. Jianhua Wu,
Chairman and CEO of SEII. "We continue to build momentum in our
sharing economy businesses, closing two important acquisitions
during the quarter: AnyWorkspace and 3D Discovery. More
importantly, we recently entered into a licensing agreement with
ECrent Capital Holdings Limited to commercialize the ECrent online
platform in multiple countries across Asia, which we believe will be truly
transformational for our business."
Mr. Parkson Yip, Vice President
of SEII, commented, "We are gearing up for a major push for our
sharing economy businesses in the months ahead. The launch of
BuddiGo, our sharing platform that allows users to outsource daily
chores and mundane tasks to 'buddies' who can spare idle time to
run errands, we will begin in the second quarter of 2018 with an
initial focus on food delivery services in Hong Kong and quickly expand to include
grocery shopping and same-day inner-city parcel delivery in
Hong Kong and other Asian markets.
AnyWorkspace, our flexible workspace offering, currently has over
900 workspace listings in Hong
Kong and major cities in Singapore, Indonesia, Thailand and South Korea. In the coming
months, we will expand the platform to new geographic regions and
focus on driving user growth through aggressive marketing and
strategic partnership programs.
"Our 3D Discovery business unit continues to develop a
user-friendly application which will allow users to create 3D
virtual tours with a smartphone camera. We believe our 3D
virtual tour will be an affordable and accessible solution that
will allow us to quickly expand our reach and generate valuable big
data from real estate markets following its launch in Hong Kong, Australia and Indonesia in the third quarter of 2018. Our EC
Advertising unit has begun developing opportunities for each of
these three platforms to attract advertisers and we anticipate
traffic will reach the point where we can generate advertising
revenue later this year. Finally, we remain steadfast in our
belief that a true peer-to-peer sharing economy based on rentals
will take significant market share in both the business and
consumer markets over the next few years and believe our new
licensing agreement with ECrent puts us in a strong position to
capitalize on that dynamic. We look forward to
commercializing the ECrent platform in key markets in Asia in the months ahead," Mr. Yip
concluded.
First Quarter 2018 Results
Revenue for the first quarter of 2018 decreased by 44.9% to
$2.6 million, compared to
$4.7 million in the first quarter of
2017. The Company's dyeing and finishing business generated
substantially all revenue in the first quarter of 2018 since the
forged rolled rings and related products and petroleum and chemical
equipment businesses were discontinued in 2016 and the new sharing
economy businesses are still in an early stage. Revenues from
the dyeing and finishing business declined due to an anticipated
slowdown in shipments of low-emission airflow dyeing machines as
many companies in the dyeing industry had already upgraded to new
models and did not require additional equipment, and orders for new
low-emission airflow dyeing machines slowed down in 2018 and 2017
as potential customers did not have the financial resources or
credit to purchase equipment. In addition, apparel factories
and other factories have been shut down throughout the last year by
China's environmental bureau,
which has been cutting electricity and gas supply to determine
compliance with China's
environmental laws, which contributed to the decline in revenues.
Revenues from the sharing economy businesses were $31,000 in the first quarter of 2018. Compared to
$0 in the first quarter of 2017.
Gross loss for the first quarter of 2018 was $359,000, compared to gross profit of
$586,000 for the same period in 2017.
Gross margin was negative 14.0% during the first quarter of
2018 compared to 12.6% for the same period in 2017. The gross
margin for the first quarter of 2018 was impacted by the reduced
scale of operations resulting from lower revenues, which is
reflected in the allocation of fixed costs, mainly consisting of
depreciation, to cost of revenues, and an increase in labor and raw
material costs.
Operating expenses increased to $4.4
million, compared to $0.7
million in the first quarter of 2017. The increase was
due to higher professional fees in the form of stock-based
compensation related to implementing a new business plan with the
objective of improving long-term growth, an increase in bad debt
expense, and higher salaries, travel and entertainment expenses to
support new business opportunities.
Loss from continuing operations was $4.9
million, or $(1.60) per basic
and diluted share, compared to loss from continuing operations of
$146,000, or $(0.10) per basic and diluted share in the first
quarter of 2017.
Gain from discontinued operations (Refer to "Discontinued
Operations" discussion below) was $17,000, or $0.00
per basic and diluted share. This compares to a gain from
discontinued operations of $0 or
$(0.00) in the first quarter of
2017.
Net loss attributable to common shareholders for the first
quarter of 2018 was $4.8 million, or
$(1.60) per basic and diluted share,
compared to net loss of $146,000, or
$(0.10) per basic and diluted share,
in the first quarter of 2017.
Basic and diluted earnings per share were based on 2,992,879 and
1,415,441 weighted average shares outstanding, respectively, for
the quarters ended March 31, 2018 and
2017. The increase in weighted average shares was due to
shares issued as stock-based compensation, common stock issued for
acquisitions, conversion of a convertible note and the sale of
common shares during the quarter. All share and per share
information has been adjusted to reflect a 1-for-4 reverse stock
split effective March 20, 2017.
Financial
Condition
As of March 31, 2018, SEII held
cash and cash equivalents of $2.0
million compared to $1.0
million at December 31,
2017. Accounts receivable were $6.4
million compared to $9.1
million at December 31, 2017.
Inventories were $5.2 million
compared to $4.6 million at
December 31, 2017. The Company
had $2.3 million in short-term bank
loans payable at March 31, 2018, down
slightly from $2.5 million at
December 31, 2017. Working capital
was $18.2 million at March 31, 2018, compared to $13.5 million at December
31, 2017. Stockholders' equity was $67.7 million at March
31, 2018.
In the first quarter of 2018, the Company generated $0.5 million in cash flow from operations. The
Company used $52,000 in cash flow
from investing activities, primarily due to cash used for the
purchase of property and equipment in Wuxi, China. The Company generated $0.5 million in cash flow from financing
activities, primarily due to proceeds of $0.3 million from the sale of common stock,
advances from a related party of $0.4
million and a decrease in restricted cash, which were
partially offset by a reduction in bank acceptance notes
payable.
Discontinued Operations
On December 30, 2016, the Company
sold and transferred 100% of the stock of Wuxi Fulland Wind Energy
Equipment Co., Ltd. ("Fulland Wind") to an unrelated party and
discontinued the Company's forged rolled rings and related
components business. Additionally, the Company's management decided
to discontinue its petroleum and chemical equipment segment due to
significant declines in revenues and the loss of its major
customer. As such, the assets and liabilities of these two segments
have been classified on the consolidated balance sheet as assets
and liabilities of discontinued operations as of March 31, 2018 and December 31, 2017 and the operating results have
been classified as discontinued operations in the consolidated
statements of operations for all years presented.
Recent Events
In May 2018, the Company's
wholly-owned subsidiary, Sharing Economy Investment Limited
("Sharing Economy"), entered into a license agreement with ECrent
Capital Holdings Limited ("ECrent"). Pursuant to the agreement,
ECrent shall grant Sharing Economy an exclusive license to utilize
certain software and trademarks in order to develop, launch,
operate, commercialize, and maintain an online website platform in
Taiwan, Thailand, India, Indonesia, Singapore, Malaysia, Philippines, Vietnam, Cambodia, Japan, and Korea until December 31, 2019. In consideration for the
license, the Company shall grant ECrent 530,000 shares of common
stock on the closing date of the Agreement, whereas ECrent
guarantees that the business will generate revenue of $15.0 million and gross profit of $2.9 million from the closing date of the
agreement until December 31,
2019.
In May 2018, the Company closed a
private placement of securities with an investor pursuant to which
the investor purchased a convertible promissory note in the
original principal amount of $0.9
million, convertible into shares of common stock of the
Company upon the terms and subject to the limitations and
conditions set forth in the note, and a two-year warrant to
purchase shares of 134,328 shares of the Company's common stock at
an exercise price of $7.18 per share.
In connection with the note, the Company paid an original
issue discount of $150,000 and
issuance costs of $15,000. The note
bears interest at 10% per annum, is unsecured, and has a term of
fifteen months. The Company intends to use to proceeds to fund the
working capital requirements of its sharing economy businesses as
it prepares to launch several new services in the second quarter of
2018.
About Sharing Economy International Inc.
Sharing Economy International Inc., through its affiliated
companies, designs, manufactures and distributes a line of
proprietary high and low temperature dyeing and finishing machinery
to the textile industry. The Company's latest business initiatives
are focused on targeting the technology and global sharing economy
markets, by developing online platforms and rental business
partnerships that will drive the global development of sharing
through economical rental business models. Moreover, the Company
will actively pursue blockchain technology in its existing and
to-be-acquired business, enabling the general public to realize the
beauty of resource sharing. For more information
visit www.seii.com
Safe Harbor Statement
This release contains certain "forward-looking statements"
relating to the business of the Company and its subsidiary and
affiliated companies and certain potential transactions that they
may enter into. These forward looking statements are often
identified by the use of forward looking terminology such as
"believes," "expects" or similar expressions. Such forward looking
statements involve known and unknown risks and uncertainties that
may cause actual results to be materially different from those
described herein as anticipated, believed, estimated or expected.
The Company's actual results could differ materially from those
anticipated in these forward-looking statements as a result of a
variety of factors, including those discussed in the Company's
periodic reports that are filed with the Securities and Exchange
Commission and available on its website, including factors
described in "Risk Factors" and "Management's Discussion and
Analysis of Financial Condition and Results of Operations" in our
Form 10-Q for the quarter ended March 31,
2018 and Form 10-K for the year ended December 31,
2017. All forward-looking statements attributable to the
Company or to persons acting on its behalf are expressly qualified
in their entirety by these factors other than as required under the
securities laws. The Company does not assume a duty to update these
forward-looking statements.
SHARING ECONOMY
INTERNATIONAL INC. AND SUBSIDIARIES
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
|
|
|
|
|
|
|
|
|
March 31,
|
|
|
December 31,
|
|
|
|
2018
|
|
|
2017
|
|
|
|
(Unaudited)
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT
ASSETS:
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
1,982,661
|
|
|
$
|
1,019,437
|
|
Restricted cash
|
|
|
123,466
|
|
|
|
272,991
|
|
Notes receivable
|
|
|
749,976
|
|
|
|
461,292
|
|
Accounts receivable, net of allowance for doubtful
accounts
|
|
|
6,407,157
|
|
|
|
9,092,709
|
|
Inventories, net of reserve for obsolete inventories
|
|
|
5,204,268
|
|
|
|
4,553,559
|
|
Advances to suppliers
|
|
|
1,910,808
|
|
|
|
2,023,779
|
|
Receivable from sale of subsidiary
|
|
|
3,053,727
|
|
|
|
2,950,442
|
|
Prepaid
expenses and other
|
|
|
7,529,365
|
|
|
|
2,144,624
|
|
Assets
of discontinued operations
|
|
|
298,027
|
|
|
|
407,510
|
|
|
|
|
|
|
|
|
|
|
Total
current assets
|
|
|
27,259,455
|
|
|
|
22,926,343
|
|
|
|
|
|
|
|
|
|
|
OTHER
ASSETS:
|
|
|
|
|
|
|
|
|
Equity
method investment
|
|
|
9,297,562
|
|
|
|
9,053,859
|
|
Property and equipment, net
|
|
|
33,341,343
|
|
|
|
33,181,119
|
|
Intangible assets, net
|
|
|
6,833,455
|
|
|
|
5,394,296
|
|
|
|
|
|
|
|
|
|
|
Total
other assets
|
|
|
49,472,360
|
|
|
|
47,629,274
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
$
|
76,731,815
|
|
|
$
|
70,555,617
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT
LIABILITIES:
|
|
|
|
|
|
|
|
|
Short-term bank loans
|
|
$
|
2,147,151
|
|
|
$
|
2,074,529
|
|
Bank
acceptance notes payable
|
|
|
119,286
|
|
|
|
422,589
|
|
Convertible note payable
|
|
|
-
|
|
|
|
670,000
|
|
Accounts payable
|
|
|
2,251,582
|
|
|
|
2,798,590
|
|
Accrued
expenses
|
|
|
168,766
|
|
|
|
165,749
|
|
Advances from customers
|
|
|
3,321,444
|
|
|
|
2,454,375
|
|
Due to
related party
|
|
|
715,367
|
|
|
|
347,589
|
|
Income
taxes payable
|
|
|
65,705
|
|
|
|
63,483
|
|
Liabilities of discontinued operations
|
|
|
265,333
|
|
|
|
389,633
|
|
|
|
|
|
|
|
|
|
|
Total
current liabilities
|
|
|
9,054,634
|
|
|
|
9,386,537
|
|
|
|
|
|
|
|
|
|
|
Total
liabilities
|
|
|
9,054,634
|
|
|
|
9,386,537
|
|
|
|
|
|
|
|
|
|
|
Commitments and
contingencies (see Note 15)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
STOCKHOLDERS'
EQUITY:
|
|
|
|
|
|
|
|
|
Preferred stock ($0.001 par value; 10,000,000 shares authorized; No
shares issued
and outstanding at
March 31, 2018 and December 31, 2017)
|
|
|
-
|
|
|
|
-
|
|
Common stock ($0.001 par value; 12,500,000 shares authorized;
4,445,709 and
2,527,720 shares
issued and outstanding at March 31, 2018 and December 31,
2017,
respectively)
|
|
|
4,446
|
|
|
|
2,528
|
|
Additional paid-in capital
|
|
|
49,160,622
|
|
|
|
40,241,172
|
|
Retained earnings
|
|
|
8,844,315
|
|
|
|
13,624,729
|
|
Statutory reserve
|
|
|
2,352,592
|
|
|
|
2,352,592
|
|
Accumulated other comprehensive income - foreign currency
translation adjustment
|
|
|
6,973,464
|
|
|
|
4,923,829
|
|
Total
Sharing Economy International Inc. stockholder's equity
|
|
|
67,335,439
|
|
|
|
61,144,850
|
|
|
|
|
|
|
|
|
|
|
Non-controlling
interest
|
|
|
341,742
|
|
|
|
24,230
|
|
|
|
|
|
|
|
|
|
|
Total
stockholders' equity
|
|
|
67,677,181
|
|
|
|
61,169,080
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and stockholders' equity
|
|
$
|
76,731,815
|
|
|
$
|
70,555,617
|
|
SHARING ECONOMY
INTERNATIONAL INC. AND SUBSIDIARIES
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE
LOSS
(Unaudited)
|
|
|
|
|
|
|
|
For the Three Months
Ended
|
|
|
|
March 31,
|
|
|
|
2018
|
|
|
2017
|
|
|
|
|
|
|
|
|
REVENUES
|
|
$
|
2,568,527
|
|
|
$
|
4,657,454
|
|
|
|
|
|
|
|
|
|
|
COST OF
REVENUES
|
|
|
2,927,892
|
|
|
|
4,071,600
|
|
|
|
|
|
|
|
|
|
|
GROSS (LOSS)
PROFIT
|
|
|
(359,365)
|
|
|
|
585,854
|
|
|
|
|
|
|
|
|
|
|
OPERATING
EXPENSES:
|
|
|
|
|
|
|
|
|
Depreciation
|
|
|
243,003
|
|
|
|
268,365
|
|
Selling,
general and administrative
|
|
|
2,746,984
|
|
|
|
307,659
|
|
Research
and development
|
|
|
113,447
|
|
|
|
106,077
|
|
Bad debt
expense
|
|
|
1,318,204
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
Total operating expenses
|
|
|
4,421,638
|
|
|
|
682,101
|
|
|
|
|
|
|
|
|
|
|
LOSS FROM
OPERATIONS
|
|
|
(4,781,003)
|
|
|
|
(96,247)
|
|
|
|
|
|
|
|
|
|
|
OTHER INCOME
(EXPENSE):
|
|
|
|
|
|
|
|
|
Interest
income
|
|
|
1,461
|
|
|
|
1,878
|
|
Interest
expense
|
|
|
(30,452)
|
|
|
|
(39,690)
|
|
Loss on
equity method investment
|
|
|
(72,412)
|
|
|
|
(18,355)
|
|
Foreign
currency transaction gain (loss)
|
|
|
(1,155)
|
|
|
|
-
|
|
Other
income
|
|
|
-
|
|
|
|
16,992
|
|
|
|
|
|
|
|
|
|
|
Total other expense, net
|
|
|
(102,558)
|
|
|
|
(39,175)
|
|
|
|
|
|
|
|
|
|
|
LOSS FROM CONTINUING
OPERATIONS BEFORE PROVISION FOR INCOME
TAXES
|
|
|
(4,883,561)
|
|
|
|
(135,422)
|
|
|
|
|
|
|
|
|
|
|
PROVISIONS FOR INCOME
TAXES:
|
|
|
|
|
|
|
|
|
Current
|
|
|
-
|
|
|
|
(11,062)
|
|
Deferred
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
Total Income taxes provision
|
|
|
-
|
|
|
|
(11,062)
|
|
|
|
|
|
|
|
|
|
|
LOSS FROM CONTINUING
OPERATIONS
|
|
|
(4,883,561)
|
|
|
|
(146,484)
|
|
|
|
|
|
|
|
|
|
|
DISCONTINUTED
OPERATIONS:
|
|
|
|
|
|
|
|
|
Gain
from discontinued operations, net of income taxes
|
|
|
16,899
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
GAIN FROM
DISCONTINUED OPERATIONS, NET OF INCOME TAXES
|
|
|
16,899
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
NET LOSS
|
|
|
(4,866,662)
|
|
|
|
(146,484)
|
|
|
|
|
|
|
|
|
|
|
NET LOSS ATTRIBUTABLE
TO NON-CONTROLLING INTEREST
|
|
|
(86,248)
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
NET LOSS ATTRIBUTABLE
TO COMMON STOCKHOLDERS
|
|
$
|
(4,780,414)
|
|
|
$
|
(146,484)
|
|
|
|
|
|
|
|
|
|
|
COMPREHENSIVE (LOSS)
GAIN:
|
|
|
|
|
|
|
|
|
Net
loss
|
|
$
|
(4,866,662)
|
|
|
$
|
(146,484)
|
|
Unrealized foreign currency translation gain
|
|
|
2,049,635
|
|
|
|
496,124
|
|
|
|
|
|
|
|
|
|
|
Comprehensive (loss) gain
|
|
$
|
(2,817,027)
|
|
|
$
|
349,640
|
|
|
|
|
|
|
|
|
|
|
Net loss
attributable to non-controlling interest
|
|
$
|
(86,248)
|
|
|
$
|
-
|
|
Unrealized foreign currency translation gain (loss) from
non-controlling interest
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
Comprehensive (loss) gain attributable to common
stockholders
|
|
$
|
(2,730,779)
|
|
|
$
|
349,640
|
|
|
|
|
|
|
|
|
|
|
NET LOSS PER COMMON
SHARE:
|
|
|
|
|
|
|
|
|
Continuing operations - basic and diluted
|
|
$
|
(1.60)
|
|
|
$
|
(0.10)
|
|
Discontinued operations - basic and diluted
|
|
|
0.00
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
Net loss
per common share - basic and diluted
|
|
$
|
(1.60)
|
|
|
$
|
(0.10)
|
|
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE
COMMON SHARES OUTSTANDING:
|
|
|
|
|
|
|
|
|
Basic
and diluted
|
|
|
2,992,879
|
|
|
|
1,415,441
|
|
SHARING ECONOMY
INTERNATIONAL INC. AND SUBSIDIARIES
CONSOLIDATED
STATEMENTS OF CASH FLOWS
(Unaudited)
|
|
|
|
|
|
For the Three Months
Ended
|
|
|
|
March 31,
|
|
|
|
2018
|
|
|
2017
|
|
CASH FLOWS FROM
OPERATING ACTIVITIES:
|
|
|
|
|
|
|
Net loss
|
|
$
|
(4,866,662)
|
|
|
$
|
(146,484)
|
|
Adjustments to reconcile net
loss from operations to net cash provided by operating
activities:
|
|
|
|
|
|
|
|
|
Depreciation
|
|
|
1,051,740
|
|
|
|
968,190
|
|
Amortization of intangible assets
|
|
|
98,482
|
|
|
|
79,531
|
|
Bad debt
allowance
|
|
|
1,318,204
|
|
|
|
-
|
|
Bad debt
recovery - discontinued operations
|
|
|
(16,899)
|
|
|
|
-
|
|
Loss on
equity method investment
|
|
|
72,412
|
|
|
|
18,355
|
|
Stock-based professional fees
|
|
|
1,643,047
|
|
|
|
9,074
|
|
Changes
in operating assets and liabilities:
|
|
|
|
|
|
|
|
|
Notes
receivable
|
|
|
(269,450)
|
|
|
|
52,267
|
|
Accounts
receivable
|
|
|
1,671,900
|
|
|
|
(1,370,349)
|
|
Inventories
|
|
|
(485,743)
|
|
|
|
(382,965)
|
|
Prepaid
and other current assets
|
|
|
(130)
|
|
|
|
(7,374)
|
|
Advances
to suppliers
|
|
|
181,736
|
|
|
|
(378,300)
|
|
Assets of
discontinued operations
|
|
|
139,247
|
|
|
|
(31,792)
|
|
Accounts
payable
|
|
|
(634,599)
|
|
|
|
1,583,204
|
|
Accrued
expenses
|
|
|
(3,047)
|
|
|
|
(95,971)
|
|
VAT and
service taxes payable
|
|
|
-
|
|
|
|
(20,865)
|
|
Income
taxes payable
|
|
|
-
|
|
|
|
(1,746)
|
|
Advances
from customers
|
|
|
772,306
|
|
|
|
1,076,712
|
|
Liabilities of
discontinued operations
|
|
|
(136,379)
|
|
|
|
(13,106)
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by
operating activities
|
|
|
536,165
|
|
|
|
1,338,381
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES:
|
|
|
|
|
|
|
|
|
Proceed received from acquisition
|
|
|
2,341
|
|
|
|
-
|
|
Purchase of property and equipment
|
|
|
(54,835)
|
|
|
|
(1,444)
|
|
|
|
|
|
|
|
|
|
|
Net cash used in
investing activities
|
|
|
(52,494)
|
|
|
|
(1,444)
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES:
|
|
|
|
|
|
|
|
|
Proceeds from bank loans
|
|
|
707,614
|
|
|
|
-
|
|
Repayments of bank loans
|
|
|
(707,614)
|
|
|
|
-
|
|
(Increase) decrease in restricted cash
|
|
|
157,248
|
|
|
|
(87,112)
|
|
Increase (decrease) in bank acceptance notes payable
|
|
|
(314,495)
|
|
|
|
87,112
|
|
Advance from related party
|
|
|
367,778
|
|
|
|
-
|
|
Proceeds from sale of common stock, net
|
|
|
256,410
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by
financing activities
|
|
|
466,941
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange
rate changes on cash and cash equivalents
|
|
|
12,612
|
|
|
|
10,257
|
|
|
|
|
|
|
|
|
|
|
Net increase in cash
and cash equivalents
|
|
|
963,224
|
|
|
|
1,347,194
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents - beginning of period
|
|
|
1,019,437
|
|
|
|
1,481,498
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents - end of period
|
|
$
|
1,982,661
|
|
|
$
|
2,828,692
|
|
|
|
|
|
|
|
|
|
|
SUPPLEMENTAL
DISCLOSURE OF CASH FLOW INFORMATION:
|
|
|
|
|
|
|
|
|
Cash paid in continuing operations for:
|
|
|
|
|
|
|
|
|
Interest
|
|
$
|
30,452
|
|
|
$
|
39,690
|
|
Income
taxes
|
|
$
|
-
|
|
|
$
|
12,808
|
|
|
|
|
|
|
|
|
|
|
Cash paid in discontinued operations for:
|
|
|
|
|
|
|
|
|
Interest
|
|
$
|
-
|
|
|
$
|
-
|
|
Income
taxes
|
|
$
|
-
|
|
|
$
|
-
|
|
|
|
|
|
|
|
|
|
|
NON-CASH INVESTING
AND FINANCING ACTIVITIES:
|
|
|
|
|
|
|
|
|
Stock issued for future services to consultants
|
|
$
|
6,228,976
|
|
|
$
|
-
|
|
Stock issued for future services to employees and
directors
|
|
$
|
819,212
|
|
|
|
|
|
Stock issued for repayment of convertible note
|
|
$
|
670,335
|
|
|
$
|
-
|
|
Stock issued for acquisition of subsidiaries
|
|
$
|
976,984
|
|
|
|
-
|
|
Increase in prepaid expenses and other from sale of
equipment
|
|
$
|
-
|
|
|
$
|
1,306,677
|
|
View original
content:http://www.prnewswire.com/news-releases/sharing-economy-international-reports-first-quarter-2018-results-300648298.html
SOURCE Sharing Economy International, Inc.