BIMI Medical(BIMI) - 2023 Q2 - Quarterly Report

Financial Performance - Revenues for the three months ended June 30, 2023, were $5,557,666, representing an increase of 96.7$2,829,034 for the same period in 2022[10]. - Gross profit for the six months ended June 30, 2023, was $4,574,321, compared to$844,923 for the same period in 2022, indicating a significant improvement[10]. - The company reported a net income of $1,054,125 for the three months ended June 30, 2023, compared to a net loss of$6,544,900 for the same period in 2022[10]. - Net income for the second quarter of 2023 was $1,844,389, a significant improvement compared to a net loss of$(9,286,796) in the same period of 2022[20]. - The company reported cash flows from operating activities of $2,247,448 for the second quarter of 2023, compared to cash used in operating activities of$(3,689,637) in the same quarter of 2022[20]. - The company reported a comprehensive income attributable to BIMI of $869,047 for the three months ended June 30, 2023, compared to a loss of$6,453,753 for the same period in 2022[10]. Operating Expenses and Equity - Operating expenses decreased to $1,584,636 for the three months ended June 30, 2023, from$3,239,365 in the same period of 2022, reflecting a reduction of approximately 51.0%[10]. - The total stockholders' equity increased to $12,512,496 as of June 30, 2023, compared to$5,217,233 as of December 31, 2022[7]. - The accumulated deficit decreased to $(68,298,681) as of June 30, 2023, from$(70,143,785) as of December 31, 2022[7]. Foreign Currency and Adjustments - The company experienced a foreign currency translation adjustment loss of $753,453 for the three months ended June 30, 2023[10]. - The foreign currency translation adjustment for the second quarter of 2023 was$227,068, compared to $(112,519) in the previous quarter[16]. Healthcare Operations and Strategic Focus - The company has been actively expanding its healthcare operations, including the acquisition of multiple hospitals in China[29]. - The company plans to continue its focus on the healthcare sector following its strategic shift from the energy saving industry[23]. - The company established new subsidiaries to enhance its participation in local healthcare projects, including Boyi (Liaoning) Technology Co., Ltd[26]. Acquisitions and Disposals - The Company entered into a stock purchase agreement to acquire Phenix Bio Inc. for a total consideration of$1,800,000, with $180,000 paid in cash and up to 5,270,000 shares of Common Stock contingent on performance[32]. - The Company has committed to a plan to dispose of several hospitals, which qualifies as held for sale operations under ASC 205-20[65]. - The Company sold its 100$1,931,744, down from $2,336,636 at the beginning of the period[20]. - As of June 30, 2023, total assets held for sale amounted to$5,572,481, a decrease from $5,860,822 as of December 31, 2022, representing a decline of approximately 4.9$3,133,747, a decrease from $3,239,950 as of December 31, 2022, representing a reduction of about 3.3$6,380,387, an increase from $3,208,286 as of December 31, 2022, representing a 99.5$7,182,524 as of June 30, 2023, from $7,654,242 as of December 31, 2022, indicating a decline of 6.2$5.4 million related to goodwill from acquisitions in 2022[62]. - The company recognized an impairment of goodwill during the year, resulting in a remaining goodwill of $2,065,666 as of June 30, 2023, unchanged from the previous period[184]. - The company reported impairments for goodwill of Nil as of June 30, 2023, compared to$5,385,811 as of December 31, 2022[82]. Debt and Financing - The company issued convertible notes with a face amount of up to $6,550,000 at an original issue discount of 19.85$22,579,000 for the period from July 1, 2023, to June 30, 2025[190]. - The company issued 5,000,000 additional shares of Common Stock to Mr. Oudom if Phenix generates a net profit of at least $2,500,000 in 2023[157].