TOKYO, Dec. 22,
2023 /PRNewswire/ -- Yoshitsu Co., Ltd ("Yoshitsu" or
the "Company") (Nasdaq: TKLF), a retailer and wholesaler of
Japanese beauty and health products, sundry products, luxury
products, electronic products, as well as other products in
Hong Kong, mainland China, Japan,
North America, and the
United Kingdom, today announced
its unaudited financial results for the first six months of fiscal
year 2024 ended September 30,
2023.
Mr. Mei Kanayama, Principal
Executive Officer of Yoshitsu, commented, "We believe it has been a
dynamic first half of fiscal year 2024, marked by a significant
growth in revenue from physical stores and our strategic focuses on
the asset-light business model and franchise expansion in
Japan. Our revenue from
directly-operated physical stores increased by 99.0% during the
first half of fiscal year 2024, compared to the same period in
2023, which we believe reflects the success of our new luxury
product lines and our expansion in key markets, like Japan and Hong
Kong, and underscores our commitment to enhancing our
physical store presence and adapting to market demands. Looking
forward, we are optimistic about our asset-light business model and
franchise expansion in Japan. We
believe this strategy not only streamlines our operational
efficiency but also aligns with our vision to build a strong brand
presence and optimize revenue streams. As we continue to expand our
business globally, we are expecting this model to bring innovative
products to the market more rapidly, respond effectively to
customer needs, and improve our overall profitability. Our
commitment to our shareholders remains steadfast as we look to the
future with optimism and a clear strategy aiming for sustained
growth and value creation."
Mr. Youichiro Haga, Principal Accounting and Financial Officer
of Yoshitsu, remarked, "The financial results for the first six
months of fiscal year 2024 present a diverse set of financial
outcomes for Yoshitsu. We expect the adoption of the asset-light
business model to enhance our market agility, foster stronger
customer relationship, and elevate our customers' shopping
experiences. We are focused on continuing to strengthen our
financial foundation and drive sustainable growth in the coming
periods. We are committed to consistently evaluating and refining
our financial strategies to align with our long-term goals and
market dynamics, and to ensuring that Yoshitsu remains resilient
and poised for continued success."
First Six Months of Fiscal Year 2024 Financial
Highlights
- Revenue was $74.2 million for the
six months ended September 30, 2023,
compared to $77.6 million for the
same period of last year.
- Gross profit was $9.5 million for
the six months ended September 30,
2023, compared to $14.6
million for the same period of last year.
- Net income was $2.0 million for
the six months ended September 30,
2023, increased by 496.6% from $0.3
million for the same period of last year.
- Basic and diluted earnings per share was $0.05 for the six months ended September 30, 2023, compared to $0.01 for the same period of last year.
First Six Months of Fiscal Year 2024 Financial
Results
Revenue
Total revenue was $74.2 million
for the six months ended September 30,
2023, decreased by 4.4% from $77.6
million for the same period of last year.
|
|
For the Six Months
Ended September 30,
|
|
|
|
2023
|
|
|
2022
|
|
($
millions)
|
|
Revenue
|
|
|
Cost of
Revenue
|
|
|
Gross
Margin
|
|
|
Revenue
|
|
|
Cost of
Revenue
|
|
|
Gross
Margin
|
|
Directly-operated
physical stores
|
|
|
11.6
|
|
|
|
9.9
|
|
|
|
14.6
|
%
|
|
|
5.8
|
|
|
|
4.7
|
|
|
|
20.2
|
%
|
Online stores and
services
|
|
|
6.0
|
|
|
|
4.9
|
|
|
|
17.9
|
%
|
|
|
16.3
|
|
|
|
13.0
|
|
|
|
20.5
|
%
|
Franchise stores and
wholesale customers
|
|
|
56.5
|
|
|
|
49.9
|
|
|
|
11.8
|
%
|
|
|
55.5
|
|
|
|
45.4
|
|
|
|
18.1
|
%
|
Total
|
|
|
74.2
|
|
|
|
64.7
|
|
|
|
12.8
|
%
|
|
|
77.6
|
|
|
|
63.1
|
|
|
|
18.8
|
%
|
Revenue from directly-operated physical stores increased by
99.0%, to $11.6 million for the six
months ended September 30, 2023, from
$5.8 million for the six months ended
September 30, 2022. The increase was
mainly driven by the introduction of luxury products in
directly-operated physical stores in Japan during the six months ended September 30, 2023. The increase in
directly-operated physical stores sales was also due to revenue
contributed from the Company's newly-opened physical stores in
Hong Kong.
Revenue from online stores and services decreased by 63.2%, to
$6.0 million for the six months ended
September 30, 2023, from $16.3 million for the six months ended
September 30, 2022. The decrease was
mainly due to a shift in the Company's business strategy since
August 2022. Instead of operating the
online stores by itself, the Company entrusted the entire
operations of all its online stores in China to third-party companies to minimize the
operating risk. After the change, these third-party companies
purchased products from the Company like other wholesale customers,
and hence this portion of revenue was recorded under franchise
stores and wholesale customers. The decrease was partially offset
by increased revenue generated by the Company's online stores in
Japan and revenue from advertising
services through key opinion leaders.
Revenue from franchise stores and wholesale customers increased
by 1.9%, to $56.5 million for the six
months ended September 30, 2023, from
$55.5 million for the six months
ended September 30, 2022. During the
six months ended September 30, 2023,
the Company started to offer luxury products and electronic
products, which led to an increase in revenue from franchise stores
and wholesale customers due to their higher unit selling price. The
increase was also due to increased revenue previously recognized
under physical stores and online stores as mentioned above.
However, the increase was partially offset by the temporary
suspension of sale to certain customers. In order to mitigate the
increased credit risk due to slow collection of the Company's
overdue account receivable, the Company suspended its sales to
certain customers during the period from May to June 2023. Sales to these customers have only
gradually resumed since July 2023
after they accelerated their payments of the overdue accounts
receivable to the Company.
Cost of Revenue
Cost of revenue increased by 2.6%, to $64.7 million for the six months ended
September 30, 2023, from $63.1
million for the six months ended September 30,
2022.
Gross Profit and Gross Margin
Gross profit decreased by 35.1%, to $9.5
million for the six months ended September 30, 2023, from $14.6 million for the same period of last
year.
Gross margin decreased by 6 percentage points, to 12.8% for the
six months ended September 30, 2023,
from 18.8% for the same period of last year.
Operating Expenses
Operating expenses decreased by 32.5%, to $9.1 million for the six months ended
September 30, 2023, from $13.5 million for the same period of last year.
The decrease in operating expenses was primarily attributable to a
decrease in shipping expenses, promotion and advertising expenses,
transaction commission paid to third-party e-commerce marketplace
operators, payroll, employee benefit expenses, and bonus expenses
and allowance for credit losses. The decrease was partially offset
by an increase in consulting and professional service fees.
Interest Expenses, net
Interest expenses, net included interest expenses calculated at
interest rate per loan agreements and loan service costs, which
were directly incremental to the loan agreements and amortized over
the loan periods. Interest expenses, net decreased by 27.4%, to
$1.0 million for the six months ended
September 30, 2023, from $1.4 million for the same period of last year.
The decrease mainly consisted of a decrease in interest expenses at
interest rate by $0.4 million, which
was mainly because the weighted average interest rate decreased to
0.98% for the six months ended September 30,
2023, from 1.83% for the same period of last year. The
decrease was partially offset by the slight increase in amortized
loan service costs in relation to the Company's syndicated loans by
$63,497.
Other Income (Expenses), net
The Company's other income (expenses), net primarily includes
tax refund, disposal gain or loss from property and equipment,
government subsidies, and other immaterial income and expense
items. Other income, net increased by 159.0%, to $66,947 for the six months ended September 30, 2023, from net other expenses of
$113,409 for the same period of last
year. The increase was mainly due to the decreased loss from
disposal of property and equipment, which was partially offset by
decreased government subsidies received during the six months ended
September 30, 2023 as compared to the
same period of last year.
Gain from Foreign Currency Exchange
Gain from foreign currency exchange was $2.4 million for the six months ended
September 30, 2023, as compared to a
gain from foreign currency exchange of $1.0
million for the same period of last year. The gain from
foreign currency exchange was mainly due to the significant
fluctuations of foreign exchange rate on the Company's accounts
receivable denominated in foreign currencies, such as U.S. dollars
and Chinese Yuan, during the six months ended September 30, 2023. The increase was also due to
the increased gain from foreign currency exchange by the Company's
Hong Kong subsidiaries, which was
mainly due to the significant fluctuations of foreign exchange rate
on its payables denominated in Japanese Yen during the six months
ended September 30, 2023.
Provision (Benefit) for Income Taxes
Benefit for income taxes was $0.4
million for the six months ended September 30, 2023, as compared to provision for
income taxes of $0.2 million for the
same period of last year. The Company's benefit for income taxes
increased by 268.1%. The increase in benefit for income taxes was
mainly due to the increased deferred income tax benefit, which was
partially offset by the increased current income tax expenses
resulting from the increased taxable income for the six months
ended September 30, 2023.
Net Income
Net income increased by 496.6%, to $2.0
million for the six months ended September 30, 2023, from $0.3 million for the same period of last
year.
Basic and Diluted Earnings per Share
Basic and diluted earnings per share was $0.05 for the six months ended September 30, 2023, compared to $0.01 for the same period of last year.
Financial Condition
As of September 30, 2023, the
Company had cash of $2.8 million,
compared to $1.8 million as of
March 31, 2023. As of September 30, 2023, the Company also had
approximately $74.2 million of
account receivable balance due from third parties. Approximately
38.05% of the September 30, 2023
balance has been subsequently collected, and the majority of the
remaining balance is expected to be collected by March 31, 2024. The collection of such
receivables made cash available for use in the Company's operations
as working capital, if necessary.
Net cash provided by operating activities was $3.7 million for the six months ended
September 30, 2023, mainly derived
from net income of $2.0 million for
the period, and net changes in the Company's operating assets and
liabilities, which mainly due to the decrease in accounts
receivable due from third parties of $6.4
million as a result of the Company's great effort in
collection of overdue accounts receivable and the decrease in
compensation receivable for consumption tax of $6.1 million as the Company received payments
from the debtors according to the collection plan. Net cash used in
operating activities was $21.9
million for the six months ended September 30, 2022, mainly derived from net
income of $0.3 million for the
period, and net changes in the Company's operating assets and
liabilities, which mainly included an increase in accounts
receivable from third parties of $21.8
million, which was due to the delayed shipments and longer
payment processing procedures as affected by the COVID-19
pandemic.
Net cash provided by investing activities was $0.4 million for the six months ended
September 30, 2023, mainly due to
repayments from related parties of $0.4
million and proceeds from disposal of equity method
investment of $0.3 million, partially
offset by the purchases of property and equipment in the aggregate
amount of $0.2 million and disposal
of a subsidiary of $0.2 million. Net
cash provided by investing activities was $0.1 million for the six months ended
September 30, 2022, mainly due to
repayments from related parties of $0.1
million.
Net cash used in financing activities was $1.1 million for the six months ended
September 30, 2023, which primarily
consisted of repayments of long-term borrowings of $0.6 million, payments made to related parties of
$0.2 million, and repayments of
obligations under finance leases of $0.3
million. Net cash provided by financing activities was
$16.4 million for the six months
ended September 30, 2022, which
primarily consisted of proceeds from short-term borrowings of
$74.8 million and proceeds from
long-term borrowings of $2.2 million,
partially offset by repayments of short-term borrowings of
$56.1 million, repayments of
long-term borrowings of $1.5 million,
and cash consideration paid for business combination under common
control of $2.8 million.
Conference Call Information
The Company will host an earnings conference call at 8:30
am U.S. Eastern Time (10:30 pm
Japan Standard Time) on December 22, 2023. Dial-in details for
the conference call are as follows:
Date:
|
December 22,
2023
|
Time:
|
8:30 am U.S. Eastern
Time
|
International:
|
1-412-902-4272
|
United States Toll
Free:
|
1-888-346-8982
|
Japan Toll
Free:
|
0066-33-812830
|
Conference
ID
|
Yoshitsu Co.,
Ltd
|
Please dial in at least 15 minutes before the commencement of
the call to ensure timely participation.
For those unable to participate, an audio replay of the
conference call will be available from approximately one hour after
the end of the live call until December 29,
2023. The dial-in for the replay is +1-877-344-7529 within
the United States or
+1-412-317-0088 internationally. The replay access code is No.
1325694.
A live and archived webcast of the conference call will also be
available at the Company's investor relations website at
https://www.ystbek.co.jp/irlibrary/.
About Yoshitsu Co., Ltd
Headquartered in Tokyo, Japan,
Yoshitsu Co., Ltd is a retailer and wholesaler of Japanese beauty
and health products, sundry products, luxury products, electronic
products, as well as other products in Hong Kong, mainland China, Japan,
North America, and the
United Kingdom. The Company offers
various beauty products (including cosmetics, skincare, fragrance,
and body care products), health products (including
over-the-counter drugs, nutritional supplements, and medical
supplies and devices), sundry products (including home goods),
luxury products (including branded watches, perfume, handbags,
clothes, and jewelry), electronic products (including entertainment
gaming products), and other products (including food and alcoholic
beverages). The Company currently sells its products through
directly-operated physical stores, through online stores, and to
franchise stores and wholesale customers. For more information,
please visit the Company's website at
https://www.ystbek.co.jp/irlibrary/.
Forward-Looking Statements
Certain statements in this press release are forward-looking
statements, within the meaning of Section 21E of the Securities
Exchange Act of 1934, as amended, and as defined in the U.S.
Private Securities Litigation Reform Act of 1995. These
forward-looking statements involve known and unknown risks and
uncertainties and are based on current expectations and projections
about future events and financial trends that the Company believes
may affect its financial condition, results of operations, business
strategy, and financial needs. Investors can identify these
forward-looking statements by words or phrases such as "may,"
"will," "expect," "anticipate," "aim," "estimate," "intend,"
"plan," "believe," "potential," "continue," "is/are likely to," or
other similar expressions. The Company undertakes no obligation to
update forward-looking statements to reflect subsequent occurring
events or circumstances, or changes in its expectations, except as
may be required by law. In addition, there is uncertainty about the
further spread of the COVID-19 virus or the occurrence of another
wave of cases and the impact it may have on the Company's
operations, the demand for the Company's products, global supply
chains, and economic activity in general. Although the Company
believes that the expectations expressed in these forward-looking
statements are reasonable, it cannot assure you that such
expectations will turn out to be correct, and the Company cautions
investors that actual results may differ materially from the
anticipated results and encourages investors to review other
factors that may affect its future results in the Company's
registration statement and in its other filings with the U.S.
Securities and Exchange Commission.
For more information, please contact:
Yoshitsu Co., Ltd
Investor Relations Department
Email: ir@ystbek.co.jp
Ascent Investor Relations LLC
Tina Xiao
President
Phone: +1-646-932-7242
Email: investors@ascent-ir.com
YOSHITSU CO.,
LTD
|
|
UNAUDITED CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
|
|
|
|
September 30,
|
|
|
March
31,
|
|
|
|
2023
|
|
|
2023
|
|
ASSETS
|
|
|
|
|
|
|
CURRENT
ASSETS:
|
|
|
|
|
|
|
Cash
|
|
$
|
2,790,801
|
|
|
$
|
1,766,441
|
|
Accounts receivable,
net
|
|
|
74,181,423
|
|
|
|
89,447,155
|
|
Accounts receivable -
related parties
|
|
|
44
|
|
|
|
327,807
|
|
Merchandise
inventories, net
|
|
|
14,828,587
|
|
|
|
7,187,800
|
|
Due from related
parties
|
|
|
9,035
|
|
|
|
444,567
|
|
Compensation receivable
for consumption tax, current
|
|
|
9,229,456
|
|
|
|
3,912,719
|
|
Prepaid expenses and
other current assets, net
|
|
|
3,453,592
|
|
|
|
3,542,864
|
|
TOTAL CURRENT
ASSETS
|
|
|
104,492,938
|
|
|
|
106,629,353
|
|
|
|
|
|
|
|
|
|
|
Property and equipment,
net
|
|
|
11,284,906
|
|
|
|
12,938,598
|
|
Operating lease
right-of-use assets
|
|
|
3,113,422
|
|
|
|
2,709,954
|
|
Long-term
investment
|
|
|
-
|
|
|
|
169,148
|
|
Compensation receivable
for consumption tax, non-current, net
|
|
|
6,106,954
|
|
|
|
19,230,370
|
|
Long-term prepaid
expenses and other non-current assets, net
|
|
|
4,128,092
|
|
|
|
4,997,857
|
|
TOTAL ASSETS
|
|
$
|
129,126,312
|
|
|
$
|
146,675,280
|
|
|
|
|
|
|
|
|
|
|
CURRENT
LIABILITIES:
|
|
|
|
|
|
|
|
|
Short-term
borrowings
|
|
$
|
54,539,800
|
|
|
$
|
60,636,412
|
|
Current portion of
long-term borrowings
|
|
|
3,618,832
|
|
|
|
2,783,445
|
|
Accounts
payable
|
|
|
13,344,531
|
|
|
|
12,719,160
|
|
Accounts payable -
related parties
|
|
|
67,848
|
|
|
|
-
|
|
Due to related
parties
|
|
|
108,064
|
|
|
|
297,559
|
|
Deferred
revenue
|
|
|
85,989
|
|
|
|
146,024
|
|
Taxes
payable
|
|
|
12,283,353
|
|
|
|
18,219,803
|
|
Operating lease
liabilities, current
|
|
|
1,348,045
|
|
|
|
1,323,900
|
|
Finance lease
liabilities, current
|
|
|
231,406
|
|
|
|
369,786
|
|
Representative's
warrants liability
|
|
|
20,222
|
|
|
|
24,663
|
|
Other payables and
other current liabilities
|
|
|
1,284,569
|
|
|
|
1,520,756
|
|
TOTAL CURRENT
LIABILITIES
|
|
|
86,932,659
|
|
|
|
98,041,508
|
|
|
|
|
|
|
|
|
|
|
Operating lease
liabilities, non-current
|
|
|
1,833,622
|
|
|
|
1,416,508
|
|
Finance lease
liabilities, non-current
|
|
|
340,899
|
|
|
|
622,922
|
|
Long-term
borrowings
|
|
|
7,315,955
|
|
|
|
10,326,399
|
|
Other non-current
liabilities
|
|
|
2,152,875
|
|
|
|
2,535,123
|
|
Deferred tax
liabilities, net
|
|
|
2,583,854
|
|
|
|
4,451,077
|
|
TOTAL
LIABILITIES
|
|
$
|
101,159,864
|
|
|
$
|
117,393,537
|
|
|
|
|
|
|
|
|
|
|
COMMITMENTS AND
CONTINGENCIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SHAREHOLDERS'
EQUITY
|
|
|
|
|
|
|
|
|
Ordinary shares,
100,000,000 shares authorized; 36,250,054 shares and
36,250,054 shares issued and outstanding as of September 30, 2023
and March 31,
2023, respectively
|
|
|
14,694,327
|
|
|
|
14,694,327
|
|
Capital
reserve
|
|
|
9,078,915
|
|
|
|
9,078,915
|
|
Retained
earnings
|
|
|
15,532,199
|
|
|
|
13,577,844
|
|
Accumulated other
comprehensive loss
|
|
|
(11,338,993)
|
|
|
|
(8,069,343)
|
|
TOTAL SHAREHOLDERS'
EQUITY
|
|
|
27,966,448
|
|
|
|
29,281,743
|
|
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES
AND SHAREHOLDERS' EQUITY
|
|
$
|
129,126,312
|
|
|
$
|
146,675,280
|
|
YOSHITSU CO.,
LTD
|
|
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF
OPERATIONS AND COMPREHENSIVE LOSS
|
|
|
|
|
|
For the Six
Months
Ended
September 30,
|
|
|
|
2023
|
|
|
2022
|
|
REVENUE
|
|
|
|
|
|
|
Revenue - third
parties
|
|
$
|
74,049,115
|
|
|
$
|
77,607,361
|
|
Revenue - related
parties
|
|
|
115,034
|
|
|
|
8,188
|
|
Total
revenue
|
|
|
74,164,149
|
|
|
|
77,615,549
|
|
|
|
|
|
|
|
|
|
|
COSTS AND OPERATING
EXPENSES
|
|
|
|
|
|
|
|
|
Merchandise
costs
|
|
|
64,706,599
|
|
|
|
63,052,437
|
|
Selling, general and
administrative expenses
|
|
|
9,124,805
|
|
|
|
13,518,943
|
|
Total operating
expenses
|
|
|
73,831,404
|
|
|
|
76,571,380
|
|
|
|
|
|
|
|
|
|
|
INCOME FROM
OPERATIONS
|
|
|
332,745
|
|
|
|
1,044,169
|
|
|
|
|
|
|
|
|
|
|
OTHER INCOME
(EXPENSES)
|
|
|
|
|
|
|
|
|
Interest expenses,
net
|
|
|
(995,997)
|
|
|
|
(1,372,444)
|
|
Additional and
delinquent tax due to consumption tax correction
|
|
|
(644,780)
|
|
|
|
-
|
|
Gain from disposal of
equity method investment
|
|
|
195,391
|
|
|
|
-
|
|
Gain from disposal of a
subsidiary
|
|
|
341,755
|
|
|
|
-
|
|
Other income
(expenses), net
|
|
|
66,947
|
|
|
|
(113,409)
|
|
Gain from foreign
currency exchange
|
|
|
2,371,226
|
|
|
|
981,017
|
|
Change in fair value of
representative's warrants liability
|
|
|
1,833
|
|
|
|
89,049
|
|
Loss from equity method
investment
|
|
|
(71,200)
|
|
|
|
(88,737)
|
|
Total other income
(expenses), net
|
|
|
1,265,175
|
|
|
|
(504,524)
|
|
|
|
|
|
|
|
|
|
|
INCOME BEFORE INCOME
TAX PROVISION
|
|
|
1,597,920
|
|
|
|
539,645
|
|
|
|
|
|
|
|
|
|
|
PROVISION (BENEFIT)
FOR INCOME TAXES
|
|
|
(356,435)
|
|
|
|
212,052
|
|
|
|
|
|
|
|
|
|
|
NET
INCOME
|
|
|
1,954,355
|
|
|
|
327,593
|
|
|
|
|
|
|
|
|
|
|
OTHER COMPREHENSIVE
LOSS
|
|
|
|
|
|
|
|
|
Foreign currency
translation loss
|
|
|
(3,269,650)
|
|
|
|
(7,374,799)
|
|
|
|
|
|
|
|
|
|
|
TOTAL COMPREHENSIVE
LOSS
|
|
$
|
(1,315,295)
|
|
|
$
|
(7,047,206)
|
|
|
|
|
|
|
|
|
|
|
Earnings per
ordinary share - basic and diluted
|
|
$
|
0.05
|
|
|
$
|
0.01
|
|
Weighted average
shares - basic and diluted
|
|
|
36,250,054
|
|
|
|
36,250,054
|
|
YOSHITSU CO.,
LTD
|
|
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS'
EQUITY
|
|
FOR THE SIX MONTHS
ENDED SEPTEMBER 30, 2023 AND 2022
|
|
|
|
|
|
Ordinary
Shares
|
|
|
Capital
|
|
|
Retained
|
|
|
Accumulated
Other
Comprehensive
|
|
|
Total
Shareholders'
|
|
|
|
Shares
|
|
|
Amount
|
|
|
Reserve
|
|
|
Earnings
|
|
|
Income
(Loss)
|
|
|
Equity
|
|
Balance, March
31,
2022
|
|
|
36,250,054
|
|
|
$
|
14,694,327
|
|
|
|
11,921,065
|
|
|
|
21,465,317
|
|
|
$
|
(3,628,669)
|
|
|
|
44,452,040
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Business
combinations
under common control
|
|
|
-
|
|
|
|
-
|
|
|
|
(2,842,173)
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(2,842,173)
|
|
Net income for the
period
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
327,593
|
|
|
|
-
|
|
|
|
327,593
|
|
Foreign currency
translation loss
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(7,374,799)
|
|
|
|
(7,374,799)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, September
30,
2022
|
|
|
36,250,054
|
|
|
$
|
14,694,327
|
|
|
$
|
9,078,892
|
|
|
$
|
21,792,910
|
|
|
$
|
(11,003,468)
|
|
|
$
|
34,562,661
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, March
31,
2023
|
|
|
36,250,054
|
|
|
$
|
14,694,327
|
|
|
$
|
9,078,915
|
|
|
$
|
13,577,844
|
|
|
$
|
(8,069,343)
|
|
|
$
|
29,281,743
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income for the
period
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
1,954,355
|
|
|
|
-
|
|
|
|
1,954,355
|
|
Foreign currency
translation loss
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(3,269,650)
|
|
|
|
(3,269,650)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, September
30,
2023
|
|
|
36,250,054
|
|
|
$
|
14,694,327
|
|
|
$
|
9,078,915
|
|
|
$
|
15,532,199
|
|
|
$
|
(11,338,993)
|
|
|
$
|
27,966,448
|
|
YOSHITSU CO.,
LTD
|
|
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
|
|
|
|
For the Six Months
Ended
September 30,
|
|
|
|
2023
|
|
|
2022
|
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
Net
Income
|
|
$
|
1,954,355
|
|
|
$
|
327,593
|
|
Adjustments to
reconcile net income to net cash provided by (used in)
operating
activities:
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
526,994
|
|
|
|
514,000
|
|
Loss from disposal of
property and equipment
|
|
|
13,704
|
|
|
|
304,133
|
|
Loss (gain) from
unrealized foreign currency translation
|
|
|
139,012
|
|
|
|
(175,351)
|
|
Allowance for (net
recovery of) credit losses
|
|
|
(148,556)
|
|
|
|
87,250
|
|
Reversal of merchandise
inventories written down
|
|
|
(10,713)
|
|
|
|
-
|
|
Amortization of
operating lease right-of-use assets
|
|
|
876,122
|
|
|
|
1,086,370
|
|
Deferred tax
benefit
|
|
|
(1,460,623)
|
|
|
|
(29,689)
|
|
Change in fair value of
representative's warrants liability
|
|
|
(1,833)
|
|
|
|
(89,049)
|
|
Investment loss from
equity method investment
|
|
|
71,200
|
|
|
|
88,737
|
|
Gain from disposal of
equity method investment
|
|
|
(195,391)
|
|
|
|
-
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
|
|
Accounts
receivable
|
|
|
6,372,895
|
|
|
|
(21,785,420)
|
|
Accounts receivable -
related parties
|
|
|
309,809
|
|
|
|
-
|
|
Merchandise
inventories
|
|
|
(8,645,561)
|
|
|
|
4,774,980
|
|
Compensation receivable
for consumption tax
|
|
|
6,116,206
|
|
|
|
-
|
|
Prepaid expenses and
other current assets
|
|
|
(2,342,968)
|
|
|
|
(4,009,679)
|
|
Long-term prepaid
expenses and other non-current assets
|
|
|
2,767,762
|
|
|
|
1,681,064
|
|
Accounts
payable
|
|
|
2,128,474
|
|
|
|
(1,509,149)
|
|
Accounts payable -
related parties
|
|
|
67,840
|
|
|
|
(211,615)
|
|
Deferred
revenue
|
|
|
68,324
|
|
|
|
84,979
|
|
Taxes
payable
|
|
|
(4,136,000)
|
|
|
|
(106,681)
|
|
Other payables and
other current liabilities
|
|
|
103,774
|
|
|
|
(1,894,627)
|
|
Operating lease
liabilities
|
|
|
(838,782)
|
|
|
|
(1,102,199)
|
|
Other non-current
liabilities
|
|
|
(38,735)
|
|
|
|
26,812
|
|
Net cash provided by
(used in) operating activities
|
|
|
3,697,309
|
|
|
|
(21,937,541)
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
|
Purchase of property
and equipment
|
|
|
(197,825)
|
|
|
|
(45,472)
|
|
Proceeds from disposal
of property and equipment
|
|
|
710
|
|
|
|
2,992
|
|
Proceeds from disposal
of equity method investment
|
|
|
283,800
|
|
|
|
-
|
|
Proceeds from disposal
of a subsidiary
|
|
|
35,475
|
|
|
|
-
|
|
Disposal of a
subsidiary, net of cash
|
|
|
(176,133)
|
|
|
|
-
|
|
Collection of amount
due from related parties
|
|
|
410,181
|
|
|
|
145,017
|
|
Net cash provided by
investing activities
|
|
|
356,208
|
|
|
|
102,537
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
|
Cash consideration paid
for business combination under common control
|
|
|
-
|
|
|
|
(2,840,957)
|
|
Proceeds from
short-term borrowings
|
|
|
-
|
|
|
|
74,800,000
|
|
Repayments of
short-term borrowings
|
|
|
-
|
|
|
|
(56,100,000)
|
|
Proceeds from long-term
borrowings
|
|
|
-
|
|
|
|
2,190,669
|
|
Repayments of long-term
borrowings
|
|
|
(608,947)
|
|
|
|
(1,450,671)
|
|
Payments made to
related parties
|
|
|
(166,252)
|
|
|
|
(48,632)
|
|
Repayment of
obligations under finance leases
|
|
|
(297,843)
|
|
|
|
(200,104)
|
|
Net cash provided by
(used in) financing activities
|
|
|
(1,073,042)
|
|
|
|
16,350,305
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange
rate fluctuation on cash
|
|
|
(1,956,115)
|
|
|
|
(3,618,859)
|
|
|
|
|
|
|
|
|
|
|
Net increase
(decrease) in cash
|
|
|
1,024,360
|
|
|
|
(9,103,558)
|
|
Cash at beginning of
period
|
|
|
1,766,441
|
|
|
|
18,256,220
|
|
Cash at end of
period
|
|
$
|
2,790,801
|
|
|
$
|
9,152,662
|
|
|
|
|
|
|
|
|
|
|
Supplemental cash
flow information
|
|
|
|
|
|
|
|
|
Cash paid for income
taxes
|
|
$
|
592,194
|
|
|
$
|
334,323
|
|
Cash paid for
interest
|
|
$
|
341,583
|
|
|
$
|
644,244
|
|
|
|
|
|
|
|
|
|
|
Supplemental
non-cash operating activities
|
|
|
|
|
|
|
|
|
Purchase of property
and equipment financed under finance leases
|
|
$
|
-
|
|
|
$
|
30,892
|
|
Right-of-use assets
obtained in exchange for operating lease liabilities
|
|
$
|
1,512,843
|
|
|
$
|
464,940
|
|
View original
content:https://www.prnewswire.com/news-releases/yoshitsu-co-ltd-reports-first-six-months-of-fiscal-year-2024-financial-results-302021710.html
SOURCE Yoshitsu Co., Ltd