ZW Information Motion Applied Sciences Inc.

BEIJING, April 17, 2023 (GLOBE NEWSWIRE) — ZW Information Motion Applied sciences Inc. (Nasdaq: CNET) (the “Firm”), an built-in internet advertising, precision advertising and marketing, information analytics and different value-added providers supplier serving enterprise shoppers, as we speak introduced its audited monetary outcomes for the yr ended December 31, 2022.

Full 12 months 2022 Monetary Outcomes

Revenues

For the Complete yr of 2022, revenues decreased by $21.09 million, or 44.6%, to $26.24 million from $47.33 million for the final yr. The lower in revenues was primarily attributable to the lower in our most important stream providers revenues from our distribution of the appropriate to make use of search engine marketing providers enterprise phase, because of the repeated regional COVID-19 rebound instances in lots of provinces in China all year long, which affected enterprise of most of our small medium enterprises (“SMEs”) shoppers.

Value of revenues

Complete value of revenues decreased by $20.80 million, or 44.0%, to $26.43 million for the complete yr of 2022 from $47.23 million for the final yr. The lower in value of revenues was main attributable to the lower in prices related to distribution of the appropriate to make use of search engine marketing service we bought from key engines like google, which was in step with the lower within the associated revenues.

Gross revenue (loss) and gross revenue (loss) margin

Gross loss was $0.19 million for the complete yr of 2022, in comparison with a gross revenue of $0.10 million for the final yr. General gross loss margin price was 0.7% for the complete yr of 2022, in comparison with a gross revenue margin of 0.2% for the final yr.

Working bills

Gross sales and advertising and marketing bills was $0.27 million for the complete yr of 2022, in comparison with $0.73 million for the final yr. The lower in gross sales and advertising and marketing bills was primarily attributable to the lower in model constructing and promotion bills of $0.51 million, which was partially offset by the rise generally departmental bills of $0.05 million.

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Common and administrative bills decreased by $4.33 million, or 34.3%, to $8.30 million for the complete yr of 2022 from $12.63 million for the final yr. The lower generally and administrative bills was primarily attributable to the lower in share-based compensation bills of $6.84 million, which was partially offset by the rise in allowance for uncertain accounts of $2.39 million and common departmental bills of $0.12 million.

Analysis and improvement bills decreased by $0.10 million, or 29.8%, to $0.23 million for the complete yr of 2022 from $0.33 million for the final yr. The lower in analysis and improvement bills was primarily attributable to a discount in headcount within the analysis and improvement division.

Working loss

Loss from operations was $11.12 million for the complete yr of 2022, in comparison with $13.59 million for the final yr. Working loss margin was 42.4% for the complete yr of 2022, in comparison with 28.7% for the final yr.

Different earnings, web

Complete different earnings was $1.33 million for the complete yr of 2022, in comparison with $11.08 million for the final yr. The lower was primarily attributable to the lower in achieve from change in honest worth of warrant liabilities.

Web loss attributable to CNET and loss per share

Web loss attributable to CNET was $9.79 million, or loss per share of $1.37**, for the complete yr of 2022. This was in comparison with $2.75 million, or loss per share of $0.42**, for the final yr.

Monetary Situation

As of December 31, 2022, the Firm had money and money equivalents of $4.39 million, in comparison with $7.17 million as of December 31, 2021. Accounts receivable, web was $1.75 million as of December 31, 2022, in comparison with $3.44 million as of December 31, 2021. Working capital was $6.61 million as of December 31, 2022, in comparison with $11.10 million as of December 31, 2021.

Web money utilized in working actions was $3.19 million for the complete yr of 2022, in comparison with $8.84 million for the final yr. Web money supplied by investing actions was $0.55 million for the complete yr of 2022, in comparison with web money utilized in investing actions of $5.47 million for the final yr.

Current Developments

Reverse Inventory Break up

We filed a Certificates of Modification to our Articles of Incorporation with the Secretary of State of the State of Nevada to impact a one-for-five (1-for-5) reverse inventory break up of our Frequent Inventory pursuant to Nevada Revised Statutes (“NRS”) Part 78.209 (the “Reverse Inventory Break up”), which turned efficient on January 18, 2023. Consequently, the variety of shares of our approved Frequent Inventory was decreased from 100,000,000 shares to twenty,000,000 shares and the issued and excellent variety of shares of the Frequent Inventory was correspondingly decreased. The Reverse Inventory Break up has no impact on the par worth of our Frequent Inventory or approved shares of most well-liked inventory. When the Reverse Inventory Break up turned efficient, every 5 shares of issued and excellent Frequent Inventory have been mechanically transformed into one newly issued and excellent share of Frequent Inventory. No fractional shares have been issued in reference to the Reverse Inventory Break up. Any fractional shares of Frequent Inventory that will have in any other case resulted from the Reverse Inventory Break up have been rounded as much as the closest full share. No money or different consideration was paid in reference to any fractional shares that will in any other case have resulted from the Reverse Inventory Break up.

On February 17, 2022, we obtained a discover (the “Discover”) from Nasdaq indicating that our Frequent Inventory did not adjust to the $1.00 minimal bid worth required for continued itemizing on The Nasdaq Capital Market underneath Nasdaq Itemizing Rule 5550(a)(2) based mostly upon the closing bid worth of the Frequent Inventory for the 30 consecutive enterprise days previous to the date of the Discover. To regain compliance, the minimal bid worth of the Frequent Inventory should meet or exceed $1.00 per share for a minimal ten consecutive enterprise days at any level previous to August 12, 2022. On August 17, 2022, we obtained one other discover from Nasdaq indicating that, whereas we had not regained compliance with the minimal bid worth requirement, Nasdaq had decided that we have been eligible for an extra 180-day interval, or till February 13, 2023 to regain compliance.

As described above, we filed the Certificates of Modification to our Articles of Incorporation with the Secretary of State of the State of Nevada to impact the Reverse Inventory Break up, which turned efficient on January 18, 2023. On February 3, 2023, we obtained a letter from the Nasdaq notifying us that Nasdaq had decided that for 10 consecutive enterprise days, from January 20, 2023 to February 2, 2023, the closing bid worth of our Frequent Inventory had been at $1.00 per share or higher. Accordingly, we regained compliance with the Itemizing Rule and this matter was closed.

About ZW Information Motion Applied sciences Inc.

Established in 2003 and headquartered in Beijing, China, ZW Information Motion Applied sciences Inc. (the “Firm”) gives internet advertising, precision advertising and marketing, information analytics and different value-added providers for enterprise shoppers. Leveraging its absolutely built-in providers platform, proprietary database, and cutting-edge algorithms, the Firm delivers personalized, result-driven enterprise options for small and medium-sized enterprise shoppers in China. The Firm additionally develops blockchain enabled net/cellular purposes and software program options for shoppers. Extra details about the Firm could be discovered at: http://www.zdat.com/.

Secure Harbor Assertion

This launch accommodates sure “forward-looking statements” referring to the enterprise of ZW Information Motion Applied sciences Inc., which could be recognized by means of forward-looking terminology akin to “believes,” “expects,” “anticipates,” “estimates” or comparable expressions. Such forward-looking statements contain recognized and unknown dangers and uncertainties, together with enterprise uncertainties referring to authorities regulation of our business, market demand, reliance on key personnel, future capital necessities, competitors generally and different elements which will trigger precise outcomes to be materially completely different from these described herein as anticipated, believed, estimated or anticipated. Sure of those dangers and uncertainties are or shall be described in higher element in our filings with the Securities and Change Fee. These forward-looking statements are based mostly on ZW Information Motion Applied sciences Inc.’s present expectations and beliefs regarding future developments and their potential results on the Firm. There could be no assurance that future developments affecting ZW Information Motion Applied sciences Inc. shall be these anticipated by ZW Information Motion Applied sciences Inc. These forward-looking statements contain various dangers, uncertainties (a few of that are past the management of the Firm) or different assumptions which will trigger precise outcomes or efficiency to be materially completely different from these expressed or implied by such forward-looking statements. ZW Information Motion Applied sciences Inc. undertakes no obligation to publicly replace or revise any forward-looking statements, whether or not because of new data, future occasions or in any other case, besides as could also be required underneath relevant securities legal guidelines.

For extra data, please contact:

Sherry Zheng        
Weitian Group LLC
E mail: [email protected]
Telephone: +1 718-213-7386

ZW DATA ACTION TECHNOLOGIES INC.
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ZW DATA ACTION TECHNOLOGIES INC.
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