As of September 30, 2024, NETWORK CN INC. reported total assets of $478.0 million, a significant decrease from $835.4 million as of December 31, 2023. Current assets also fell sharply to $35.4 million from $186.1 million in the previous fiscal period. Total liabilities increased to $8.6 million from $7.9 million, resulting in a stockholders’ deficit of $(8.1) million, compared to $(7.1) million at the end of 2023.
For the third quarter of 2024, the company generated revenues of $80.8 million, a substantial increase from $35.1 million in Q3 2023. This growth is attributed to the commencement of operations in Beijing in January 2024. For the nine months ended September 30, 2024, revenues reached $504.4 million, up from $377.1 million in the same period last year. Gross profit for Q3 2024 was $13.3 million, a recovery from a gross loss of $0.1 million in Q3 2023, while gross profit for the nine-month period improved slightly to $14.3 million from $13.9 million.
Operating expenses for Q3 2024 were $201.3 million, down from $288.9 million in Q3 2023, reflecting a 45.1% reduction in general and administrative expenses due to lower salary and office costs. The net loss for Q3 2024 was $263.1 million, an improvement from a net loss of $367.8 million in Q3 2023. For the nine-month period, the net loss decreased to $861.9 million from $1.6 million in the prior year.
The company’s cash position at the end of September 2024 was $3.5 million, down from $5.3 million at the end of 2023. Net cash used in operating activities for the nine months was $(78.8) million, a reduction from $(171.9) million in the same period last year. The company reported net cash provided by financing activities of $57.6 million, down from $141.9 million in the prior year.
Strategically, NETWORK CN INC. has been restructuring its operations, including the termination of commercial agreements with Beijing Huizhong Bona Media Advertising Co., Ltd and Xingpin Shanghai Advertising Limited in May 2023. The company has also established new subsidiaries in Chengdu and Tianjin, which began operations in January 2023. Additionally, a new core retail channel, the "Community Channel," was launched in August 2022 to expand its advertising reach.
The company is exploring new media projects to enhance financial performance and has entered into a Cooperation Agreement with Jingcai Jia (Beijing) Technology Co., Ltd to improve brand visibility and market reach. This agreement includes acquiring a 19.9% stake in Jingcai Jia in exchange for common stock, expected to contribute positively to future growth.
About NETWORK CN INC
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