SOS Limited Reports 2024 Financial Results

SOS Limited Reports 92.6% Surge in Commodity Trading Revenue Amid Strategic Pivot Cryptocurrency Mining Revenue Halves as SOS Focuses on Facility Upgrades and Commodity Expansion , /PRNewswire/ -- SOS Limited ("SOS" or the "Company") (NYSE: SOS) today reported its full year financial results for the twelve-months ended December 31, 2024 and that it has filed with annual report on Form 20-F for the year ended December 31, 2024 (the "Form 20-F") with the U.S. Securities and Exchange Commission (the "SEC"). In compliance with the New York Stock Exchange rules, the Form 20-F is available on the Company's website at http://www.sosyun.com/. In addition, all shareholders of the Company may request, free of charge, a hard copy of the Company's complete audited financial statements filed with the SEC. To request a hard copy of the Company's audited financial statements, or for any other inquiry in respect of this press release, please contact the Investor Relations Department of the Company, whose contact information is as follows: [email protected] Results of operations Revenue The following table presents our revenues by revenue source and by proportion for the periods indicated (in thousands, except percentages): FY 2024 FY 2023 Amount Percentage Amount Percentage Commodity trading 214,340 92.6 % 68,409 74 % Cryptocurrency Mining 9,258 4 % 18,898 20.4 % Hosting service 6,506 2.8 % 2,365 2.6 % Other 1,320 0.6 % 2,744 3 % Total 231,424 100 % 92,416 100 % The company reported a significant year-over-year increase in commodity trading revenue, which soared to $214.3 million FY 2024, accounting for 92.6% of total revenue—up from 74.0% in FY 2023. This growth was fueled by robust domestic demand and the expansion of the company's product portfolio to include rubber and coal. Conversely, cryptocurrency mining revenue declined to $9.3 million from $18.9 million in FY 2023. The dip was attributed to the temporary shutdown of the Texas mining facility for upgrades during the first half of 2024. Revenue from other segments, primarily the legacy auto insurance business, continued to taper, reflecting $1.4 million decrease from $2.7 million in FY 2023 to $1.3 million in FY2024 —as the company progresses toward its full disposal, initiated in 2022. As of December 31, 2024, SOS has focused on four product lines and services, including commodity trading, cryptocurrency mining, hosting service and others, constitute 92.6%, 4.0%, 2.8% and 0.6% of the total revenues, respectively. As of December 31, 2024, the Company holds 736.75 units of BTC, reflecting an increase of 61.10 units compared to the previous year. During the first half of 2024, the Company temporarily suspended operations to upgrade its facilities, resuming full production in July 2024. Additionally, the Company's ETH holdings remain unchanged from the prior year at 2,924.79 units, with no additions made during the year. The Company bought and sold commodity products such as sesame, sulfur, rubber, mung bean, asphalt and circuit modular units. The company recognizes revenue when the product has been delivered, title to the good and risk associated with it has been transferred to the customers. Revenue generated from commodity trading amounts to $21.4 million during the fiscal year of 2024 representing 92.6% of the total sales. Costs of revenue Revenue costs increased from $78.2 million in 2023 to $224.4 million in 2024, increase of $146.2 million. It includes the cost of goods sold for commodity trading, maintenance expenses and power supply, salaries and benefits for on-site staffs, software amortization and hardware depreciation for cryptocurrency mining rigs. Operating expenses The following table presents our operating expense by source and proportion for the periods indicated (in thousands, except percentages): FY 2024 FY 2023 Selling expenses 2,774 10 % 672 4 % General and administrative 18,136 63 % 11,058 58 % Share-based compensation 7,735 27 % 7,264 38 % 28,645 18,994 Operating expenses increased from $18.99 million in 2024 to $28.6 million in 2024, representing a 50.6 % year-on-year increase of $9.6 million. Selling expenses Selling expenses were $2.8 million for 2024, compared to $0.7 million for 2023. The year-on-year increase for 2024 was $2.1 million, representing a year-on-year sincrease of 300%. The increase mainly consisted of a $1.4 million increase in transportation expenses for coal. General and administrative expenses In 2024, G&A expenses for the year-on-year basis increased by $7.1 million, reflecting an overall of 64% increase.mainly attributable to the increase in depreciation of the Company's mining rigs of $5.9 million. < Share-based compensation expenses Share-based compensation expenses increased from $7.3 million in 2023 to $7.7 million in 2024, representing an increase of $0.4 million mainly attributable to issuance of 52,000,000 common shares, which is a part of salaries for employee and management personnel. GAAP Operating Loss and EPS The Company had operating loss of $21.6 million for the year of 2024, compared to an operating loss of $4.8 million for the year of 2023. GAAP EPS Basic (Diluted EPS is the same as EPS Basic) was $(0.0299) per share for the period ended December 31, 2024, as compared to $(0.0269) per share for the period ended December 31, 2023. Income Tax The company incurred $0.2 million in corporate income tax mainly from mainland Chinese business of commodity trading segments for the current period compared to $0.6 million last year. Balance Sheet and Cash Flow Our principal sources of liquidity are cash and cash equivalents and cash flows generated from our operations. As of December 31, 2024, we had cash and cash equivalents of approximately $239.5 million, compared to $279.2 million for the period ended December 31, 2023. The net decrease in cash flow was mainly due to decrease in operating cash inflow generated from decrease in gross margin of commodity trading revenue. The Company believes that its cash resources are adequate to fund its current operations and short-term growth initiatives, current liquidity and capital resources are sufficient to meet anticipated working capital needs (net cash used in operating activities), commitments, capital expenditures and for at least the next twelve months. The Company may, however, require additional cash resources due to changes in business conditions and other future developments, or changes in general economic conditions. Year ended Year ended December 31, December 31, 2024 2023 CASH FLOWS FROM OPERATING ACTIVITIES: Net loss $ (13,605) $ (3,651) Net loss from continuing operation (13,606) (3,651) Net loss from discontinued operation 1 - Adjustments for: Depreciation of property, plant and equipment 10,904 4,975 Depreciation of right-of-use asset 377 800 Share-based compensation 7,735 7,264 Accretion of finance leases 6 32 Allowance for expected credit losses - accounts receivable 196 451 Allowance for expected credit losses - other receivables (1,044) 228 Impairment of intangible assets 781 970 Impairment of mining equipment - 4,455 Inventory impairment 2,571 194 Adjustments, total 21,526 19,369 Changes in operating assets and liabilities: Accounts receivable (2,017) 1,172 Investment securities - (307) Other receivables (69,267) (25,194) Amount due from related parties 29,745 29,456 Inventories (5,283) 13,204 Intangible assets (9,258) (15,960) Accrued liabilities 6,306 (5,193) Tax (recoverable)/payable (452) 1,247 Accounts payable (24,229) (94) Other payables 4,352 (4,795) Amount due to related parties (999) 998 Lease liabilities (377) (544) Net cash generated from/(used in) operating activities from continuing operations (63,559) 9,708 Net cash generating from discontinued operating activities 1 - Net cash generated from/(used in) operating activities (63,558) 9,708 CASH FLOWS FROM INVESTING ACTIVITIES: Purchases of property, plant and equipment - - Net cash used in investing activities from continuing operations - - Net cash used in investing activities from discontinued operation - Net cash used in investing activities - CASH FLOWS FROM FINANCING ACTIVITIES: Repayment of principle portion of lease liabilities (288) (288) Proceed from share issuance, net of issuance costs 24,838 17,884 Proceeds from disposal of subsidiaries - Net cash generated from financing activities 24,550 17,596 EFFECT OF EXCHANGE RATES ON CASH (2,685) (7,619) NET CHANGES IN CASH AND CASH EQUIVALENTS (41,693) 19,685 CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR 279,177 259,492 CASH AND CASH EQUIVALENTS, END OF YEAR $ 237,484 $ 279,177 Net Cash Provided by/(Used in) Operating Activities The Years Ended December 31, 2024 and 2023 Net cash generated from operating activities was $9.7 million for the year ended December 31, 2023, which decreased to $63.6 million which is used in 2024. The decrease was primarily due to the following major changes in our working capital and non-cash items: A cash outflow of $69.3 million from changes in other receivables for the year ended December 31, 2024, compared with a cash outflow of $25.2 million for the previous year. A cash outflow of $2 million in accounts receivable for the year ended December 31, 2024, compared with a cash inflow of $1.2 million for the previous year. Cash Flow Used For Investment Activities The net cash used in investing activities was nil for the year ended December 31, 2024 and 2023. Financing Activities The net cash generated from financing activities was $24.6 million for the year ended December 31, 2024, an increase of $10.0 million compared to the same period of 2023. During the year ended December 31, 2024, the Company received aggregate net proceeds of $24.9 million from registered direct offerings in 2023 compared to $17.9 million in the same period of 2023. We have financed our operations primarily through cash flows from operations, working capital from our shareholders, and equity financing through public and private offerings of our securities. We plan to support our future operations primarily from cash generated from our operations and equity financing. About SOS Limited SOS is currently engaged in commodity trading and cryptocurrency mining and hosting business. Our commodity trading services are primarily delivered through our subsidiaries in China, while our cryptocurrency mining and hosting operations are managed by our subsidiaries in the U.S. . For more information, please visit: http://www.sosyun.com/. Forward-Looking Statements Certain statements in this press release may constitute "forward-looking statements" within the meaning of the federal securities laws, including, but not limited to, our expectations for future financial performance, business strategies or expectations for our business. These statements constitute projections, forecasts and forward-looking statements, and are not guarantees of performance. SOS cautions that forward-looking statements are subject to numerous assumptions, risks and uncertainties, which change over time. Words such as "may," "can," "should," "will," "estimate," "plan," "project," "forecast," "intend," "expect," "anticipate," "believe," "seek," "target," "look" or similar expressions may identify forward-looking statements. These forward-looking statements are based on information available as of the date of this press release and our management's current expectations, forecasts and assumptions, and involve a number of judgments, risks and uncertainties that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements. These risks and uncertainties include, but not are limited to, the risk factors described by SOS in its filings with the Securities and Exchange Commission ("SEC"). Accordingly, forward-looking statements should not be relied upon as representing our views as of any subsequent date, and you should not place undue reliance on these forward-looking statements in deciding whether to invest in our securities. We do not undertake any obligation to update forward-looking statements to reflect events or circumstances after the date they were made, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws. SOURCE SOS Limited WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM? 440k+ Newsrooms & Influencers 9k+ Digital Media Outlets 270k+ Journalists Opted In

SOS Limited Reports 2024 Financial Results

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