Universe Pharmaceuticals INC Reports Financial Results for The First Six Months of Fiscal Year 2024

Core Viewpoint - Universe Pharmaceuticals INC reported a significant decline in revenue and increased net loss for the first six months of fiscal year 2024, primarily due to decreased customer demand amid a global economic slowdown. The company is adapting its business strategy by developing online sales channels to drive future growth [2][3][4]. Financial Performance - Total revenues decreased by 30.2% to $12.9 million for the six months ended March 31, 2024, down from$18.5 million in the same period of 2023 [3][5]. - Loss from operations was $1.7 million for the six months ended March 31, 2024, compared to an income from operations of$0.1 million for the same period in 2023 [3][4]. - Net loss increased to $13.1 million for the six months ended March 31, 2024, from a net loss of$0.7 million in the prior year [3][17]. - Loss per share was $3.59 for the six months ended March 31, 2024, compared to a loss per share of$0.20 for the same period in 2023 [3][17]. Revenue Breakdown - Sales of traditional Chinese medicine derivatives (TCMD) products decreased by 26.7% to $6.87 million, with a sales volume decline of 23.4$6.01 million, with a sales volume decrease of 29.9% [8][9]. Cost and Profitability - Cost of revenues decreased by 22.9% to $9.52 million, attributed to lower sales volume, despite a 10.8$2.76 million to $3.37 million, with a gross margin decline to 26.2$4.05 million, primarily due to higher advertising costs [11]. - General and administrative expenses decreased by 29.8% to $0.97 million, mainly due to reduced bad debt expenses [12]. - Research and development expenses plummeted by 96.2$86,503, reflecting the completion of prior development activities [13]. Other Income and Losses - Total other expenses netted $10.70 million for the six months ended March 31, 2024, compared to total other income of$0.11 million in the previous year [14][15]. - The company recorded a realized loss on short-term investments of $3.09 million, contrasting with a gain of$0.17 million in the prior year [14]. Cash Flow and Balance Sheet - Net cash used in operating activities was $2.43 million for the six months ended March 31, 2024, compared to cash provided of$4.80 million in the same period of 2023 [19]. - As of March 31, 2024, the company had cash of $8.86 million, an increase from$5.29 million as of September 30, 2023 [18][19]. Subsequent Events - On July 15, 2024, the company closed a public offering of 20 million ordinary shares, raising $25 million before expenses [20].