Nisun International Reports Financial Results for Fiscal Year 2023: Nisun Achieves 65% Revenue Growth and Ends the Year with $29.0 Cash Per Share

NISUN INTERNATIONAL ENTERPRISE DEVELOPMENT GROUP CO., LTD AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS

(EXPRESSED IN US DOLLARS)

December 31,
2023

December 31,
2022

ASSETS

CURRENT ASSETS:

Cash and cash equivalents

$

114,454,844

$

63,901,329

Restricted cash

197,096

3,417,244

Short-term investments

12,788,629

11,700,400

Accounts receivable, net

21,120,795

18,931,346

Advance to suppliers, net

38,602,304

46,968,549

Receivables from supply chain solutions

59,167,029

43,475,981

Inventories

30,953,583

31,609,877

Prepaid expenses and other current assets

16,018,778

10,890,083

TOTAL CURRENT ASSETS

293,303,058

230,894,809

NON-CURRENT ASSETS:

Property and equipment, net

881,276

719,574

Intangible assets, net

882,828

1,795,234

Right-of-use assets, net

2,384,590

3,349,432

Equity investments

368,528

373,292

Investment in limited partnership

–

14,913,539

Goodwill

17,659,983

23,814,005

Deferred tax assets, net

418,571

310,577

Long term investment

–

7,249,319

TOTAL NON-CURRENT ASSETS

22,595,776

52,524,972

TOTAL ASSETS

$

315,898,834

$

283,419,781

LIABILITIES

CURRENT LIABILITIES:

Accounts payable

$

45,463,753

$

40,925,155

Short-term bank loans

1,971,859

434,959

Accrued expenses and other current liabilities

7,245,358

6,090,582

Operating lease liabilities – current

861,087

1,008,766

Payables to supply chain solutions

12,947,708

9,122,978

Advances from customers

38,153,915

21,827,387

Taxes payable

4,145,920

2,748,474

Loan from related party

–

8,028,965

Liabilities of financial guarantee

22,335

–

Due to related parties – current

274,652

282,724

TOTAL CURRENT LIABILITIES

111,086,587

90,469,990

Operating lease liabilities – non-current

1,643,076

2,425,597

Deferred tax liabilities

114,650

727,326

TOTAL NON-CURRENT LIABILITIES

1,757,726

3,152,923

TOTAL LIABILITIES

112,844,313

93,622,913

SHAREHOLDERS’ EQUITY*:

Class A common stock, $0.01 par value, 30,000,000 and 30,000,000 shares

   authorized, 4,017,596 and 4,006,263 shares issued, and 3,952,198 and 3,944,075

   shares outstanding as of December 31, 2023 and 2022, respectively

40,176

40,063

Class B common stock, $0.01 par value, 1,000,000 shares authorized, no shares

   issued and outstanding as of December 31, 2023 and 2022

–

–

Treasury shares

(261,592)

(355,844)

Additional paid-in capital

130,535,082

130,503,387

Retained earnings

68,395,637

53,214,304

Statutory reserves

11,564,250

9,167,845

Accumulated other comprehensive loss

(11,474,682)

(6,937,950)

COMMON SHAREHOLDERS’ EQUITY

198,798,871

185,631,805

Non-controlling interests

4,255,650

4,165,063

TOTAL SHAREHOLDERS’ EQUITY

203,054,521

189,796,868

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY

$

315,898,834

$

283,419,781

* The financial statements give retroactive effect to the May 18, 2023 one-for-ten reverse share split.

NISUN INTERNATIONAL ENTERPRISE DEVELOPMENT GROUP CO., LTD AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

(EXPRESSED IN US DOLLARS)

For the Year Ended December 31,

2023

2022

2021

   REVENUES:

   Revenue generated from services:

      Small and Medium Enterprise financing solutions

$

101,823,899

$

87,269,959

$

87,133,963

      Supply Chain financing solutions

6,153,645

3,542,592

4,930,289

      Other financing solutions

–

–

3,222

Total revenue generated from services

107,977,544

90,812,551

92,067,474

      Revenue generated from sales:

Supply chain trading business

278,693,355

143,361,714

68,132,237

                Total revenues

386,670,899

234,174,265

160,199,711

   COST OF REVENUE:

      Cost of revenue – services

(68,154,833)

(55,472,076)

(37,989,001)

      Cost of revenue – sales

(278,002,800)

(140,880,063)

(67,628,806)

      Business and sales related taxes

(527,336)

(772,830)

(533,760)

   GROSS PROFIT

39,985,930

37,049,296

54,048,144

   OPERATING EXPENSES:

      Selling expenses

(1,525,692)

(1,977,617)

(2,323,403)

      General and administrative expenses

(10,859,011)

(10,511,542)

(11,641,567)

      Research and development expenses

(1,093,457)

(1,563,718)

(1,599,728)

      Bad debt expense

(2,215,016)

(4,509,634)

(294,536)

      Goodwill Impairment Loss

(5,488,816)

(777,329)

–

Total operating expenses

(21,181,992)

(19,339,840)

(15,859,234)

   INCOME FROM OPERATIONS

18,803,938

17,709,456

38,188,910

   OTHER INCOME :

      Interest and investment income

2,557,588

2,790,768

2,122,903

      Other income , net

2,159,301

2,021,688

464,210

Total other income, net

4,716,889

4,812,456

2,587,113

INCOME BEFORE PROVISION FOR INCOME TAXES

23,520,827

22,521,912

40,776,023

PROVISION FOR INCOME TAXES

(5,817,147)

(4,741,854)

(10,269,501)

NET INCOME

17,703,680

17,780,058

30,506,522

Net income attributable to non-controlling interests

(125,942)

(159,246)

(126,161)

NET INCOME – Nisun International’s shareholders

$

17,577,738

$

17,620,812

$

30,380,361

OTHER COMPREHENSIVE INCOME (LOSS)

      Foreign currency translation (loss) income

(4,536,797)

(12,576,380)

2,039,011

COMPREHENSIVE INCOME

13,040,941

5,044,432

32,419,372

Comprehensive loss attributable to non-controlling interests

65

6,231

2,051

COMPREHENSIVE INCOME

$

13,041,006

$

5,050,663

$

32,421,423

BASIC AND DILUTED EARNINGS PER COMMON SHARE:

NET EARNINGS PER COMMON SHARE

$

4.46

$

4.42

$

14.13

Weighted average number of shares outstanding-basic and diluted*

3,943,793

3,986,359

2,150,683

* The financial statements give retroactive effect to the May 18, 2023 one-for-ten reverse share split.

NISUN INTERNATIONAL ENTERPRISE DEVELOPMENT GROUP CO., LTD AND SUBSIDIARIES

CONDENSED STATEMENTS OF CASH FLOWS

FOR THE YEARS ENDED DECEMBER 31, 2023, 2022 and 2021

(EXPRESSED IN US DOLLARS)

2023

2022

2021

   CASH FLOWS FROM OPERATING ACTIVITIES:

Net income

$

17,703,680

$

17,780,058

$

30,506,522

      Adjustments to reconcile net income to net cash provided by (used

           in) operating activities:

Depreciation and amortization

2,238,222

2,113,732

2,180,038

Stock-based compensation

–

125,630

498,825

Shares issued for compensation

31,808

185,000

71,175

Bad debt expense

2,215,016

4,509,634

294,536

Impairment of goodwill

5,488,816

777,329

–

Loss on disposition of property and equipment

–

1,385

190,301

Income from investments

(365,359)

(541,578)

(808,464)

Deferred tax (benefit) expense

(710,672)

271,907

275,749

Changes in operating assets and liabilities:

                Accounts receivable

(3,086,600)

(2,075,274)

(13,294,924)

                Advance to suppliers, net

7,282,068

(39,859,386)

(9,213,279)

                Prepaid expenses and other current assets

(5,511,142)

(4,734,501)

(3,464,939)

                Receivables from supply chain solutions

(18,651,357)

11,372,841

(48,202,128)

                Inventories

(246,818)

(25,530,993)

(3,931,400)

                Accounts payable

5,722,300

7,693,011

33,620,611

                Advance from customers

16,986,750

19,085,377

3,375,769

                Taxes payable

1,478,316

(5,574,048)

5,575,502

                Other payables

3,232,387

–

2,576,570

                Payable to supply chain solutions

4,096,141

(15,198,883)

25,608,622

                Operating lease liabilities

(834,381)

(855,242)

(952,495)

                Accrued expenses and other current liabilities

(1,569,395)

1,501,078

(1,049,489)

NET CASH (USED IN) PROVIDED BY OPERATING

   ACTIVITIES

35,499,780

(28,952,923)

23,857,102

CASH FLOWS FROM INVESTING ACTIVITIES:

      Acquisition of property and equipment

(503,957)

(652,585)

(186,705)

      Purchase of intangible assets

(44,029)

(74,710)

(18,281)

      Cash (paid) received in connection with Nami acquisition

–

–

(7,007,905)

      Cash paid in connection with acquisition, net of cash received

–

(530,322)

–

      Cash received on disposal of discontinued operations

–

–

14,950,730

      Proceeds from sale of short-term investments

103,458,984

78,595,280

4,894,270

      Proceeds from sale of Long-term investment

7,061,233

–

–

      Proceeds from investment in debt securities

14,366,013

–

–

      Purchase of short-term investments

(104,365,028)

(51,567,746)

(39,526,099)

      Purchase of Long-term investments

–

(7,430,511)

–

      Collection of loans to third parties

–

–

1,643,203

      Proceeds from disposal of subsidiary

71,514

–

–

      Loans to third parties

(229,161)

(501,905)

–

NET CASH PROVIDED BY (USED IN) INVESTING

   ACTIVITIES

19,815,569

17,837,501

(25,250,787)

CASH FLOWS FROM FINANCING ACTIVITIES:

      Proceeds from short-term bank loans

1,553,471

445,831

784,609

      Proceeds from issuance of common shares and pre-funded warrants

–

–

70,794,465

      Proceeds from third-party loans

1,977,145

36,770,626

–

      Repayment of short-term bank loans

(29,961)

(1,239,983)

–

      Repayment of third-party loans

(2,277,954)

(41,491,973)

–

      Repayment to related parties

–

(10,097)

(1,803,374)

      Repayment of loan from related parties

(8,028,965)

(2,500,000)

–

      Purchase of treasury shares

94,252

(355,844)

–

      Capital contribution from non-controlling interest

(35,290)

37,116

751,841

NET CASH (USED IN) PROVIDED BY FINANCING

   ACTIVITIES

(6,747,302)

(8,344,324)

70,527,541

EFFECT OF EXCHANGE RATE CHANGE ON CASH AND

   CASH EQUIVALENTS

(1,234,680)

(4,848,722)

294,928

NET (DECREASE) INCREASE IN CASH AND CASH

   EQUIVALENTS

47,333,367

(24,308,468)

69,428,784

CASH AND CASH EQUIVALENTS AND RESTRICTED CASH

   FROM CONTINUING OPERATIONS-BEGINNING

67,318,573

91,627,041

22,198,257

CASH AND CASH EQUIVALENTS AND RESTRICTED CASH

   FROM CONTINUING OPERATIONS-ENDING

$

114,651,940

$

67,318,573

$

91,627,041

SUPPLEMENTAL CASH FLOW DISCLOSURES:

      Cash paid for income taxes

$

4,530,963

$

10,385,495

$

5,546,082

      Cash paid for interest

$

29,961

$

496,932

$

370,356

SUPPLEMENTAL DISCLOSURE OF NON-CASH ACTIVITIES:

      Repayment payable for business disposition

279,037

–

–

      Receivable from disposal of subsidiary

$

–

$

289,973

$

–

         Lease liabilities arising from obtaining right-of-use
         assets

295,220

4,070,163

–

      Issuance of shares for share-based compensation

$

–

$

–

$

71,175

CASH AND CASH EQUIVALENTS FROM CONTINUING

   OPERATIONS ARE COMPRISED OF THE FOLLOWING:

Cash and cash equivalents

$

114,454,844

$

63,901,329

$

91,447,620

Restricted cash

197,096

3,417,244

179,421

Total cash, cash equivalents and restricted cash

$

114,651,940

$

67,318,573

$

91,627,041