Nature's Miracle Holding Inc. Announces Third Quarter 2024 Financial Results
Rhea-AI Summary
Nature's Miracle Holding (NASDAQ: NMHI) reported Q3 2024 financial results with revenue growth of 13.5% to $3.1 million compared to Q3 2023. The company saw gross profit increase to $228,113 with margin expansion to 7.5%. However, net loss widened to $2.8 million from $0.4 million year-over-year. Notable developments include a $2.1 million debt reduction, receipt of a record $2.4 million LED grow lights order, and a $5.1 million sales agreement with What Rebates. The company also completed two public offerings raising $1.2 million in July and $3 million in November, while announcing expansion into EV-powered mobile vertical farms.
Positive
- Revenue increased 13.5% YoY to $3.1 million
- Gross margin expanded by 160 basis points to 7.5%
- Secured record $2.4 million purchase order for LED grow lights
- Obtained $5.1 million sales order agreement for grow light products
- Completed $2.1 million debt reduction improving shareholder equity
Negative
- Net loss increased significantly to $2.8 million from $0.4 million YoY
- Operating expenses increased substantially to $2.2 million from $0.6 million YoY
- Adjusted EBITDA loss widened to $1.1 million from $0.2 million YoY
News Market Reaction – NMHI
In the trading session that priced this news, NMHI declined 12.77%, reflecting a significant negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
AI-generated analysis. How Rhea-AI works. Not financial advice.
~ Revenue Growth of
Third Quarter 2024 Financial and Business Updates
- Revenue for the third quarter of 2024 increased
13.5% to$3.1 million $2.7 million - Gross profit of
$228,113 $158,768 - Gross margin expanded by 160 basis points to
7.5% from5.9% in the third quarter of 2023. - Net loss of
$2.8 million $0.4 million - Adjusted EBITDA for the third quarter of 2024 was a loss of
$1.1 million $0.2 million - Completed
$2.1 million - Delivered first shipment of Efinity brand dehumidifier product to Fiacre Inc., a major indoor grower in the
San Francisco Bay Area . - Received record
$2.4 million - Entered a sales order agreement with What Rebates for
$5.1 million U.S. energy rebate market that will contribute to 2024 full year revenue. - Closed an underwritten public offering for gross proceeds of
$1.2 million
Management Commentary
James Li, Chairman and CEO of Nature's Miracle, commented, "We are encouraged with third quarter's double digit revenue growth while making significant operational progress in the third quarter and thus far in the fourth quarter to accelerate our growth objectives. As previously announced, on November 12th, we closed a
Subsequent Operational Updates
- Launched a wholly owned subsidiary, NM Rebate Inc., to facilitate the Company's energy rebate financing segment.
- Announced an agreement with Robostreet Inc. to order a total of 150 LS450 electric trucks from to convert into mobile vertical farms targeting the
Los Angeles market. - Announced Hydroman, Inc., its
100% owned subsidiary, will become Hydroman Electric Corporation to launch its electric-powered mobile vertical farms throughoutthe United States andSouth America . - Received aggregate gross proceeds of approximately
$3 million
Third Quarter 2024 Financial Summary
For the third quarter of 2024, revenue totaled
Cost of revenue totaled
Gross profit totaled
Operating expenses in the third quarter of 2024 were
Net loss in the third quarter of 2024 was
About Nature's Miracle Holding Inc.
Nature's Miracle (www.Nature-Miracle.com) is a growing agriculture technology company providing equipment and services to growers in the Controlled Environment Agriculture ("CEA") industry which also includes vertical farming in
Forward-Looking Statements
The information in this press release includes "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, but are not limited to, statements regarding expectations, hopes, beliefs, intentions or strategies regarding the future. In addition, any statements that refer to projections, forecasts or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. The words "anticipate," "believe," "contemplate," "continue," "could," "estimate," "expect," "forecast," "intends," "may," "will," "might," "plan," "possible," "potential," "predict," "project," "should," "would" and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements in this press release may include, for example: the intended use of proceeds from the offering; successful launch and implementation of NMHI's joint projects with manufacturers and other supply chain participants of steel, rubber and other materials; changes in NMHI's strategy, future operations, financial position, estimated revenues and losses, projected costs, prospects and plans; NMHI's ability to develop and launch new products and services; NMHI's ability to successfully and efficiently integrate future expansion plans and opportunities; NMHI's ability to grow its business in a cost-effective manner; NMHI's product development timeline and estimated research and development costs; the implementation, market acceptance and success of NMHI's business model; developments and projections relating to NMHI's competitors and industry; and NMHI's approach and goals with respect to technology. These forward-looking statements are based on information available as of the date of this press release, and current expectations, forecasts and assumptions, and involve a number of judgments, risks and uncertainties. Accordingly, forward-looking statements should not be relied upon as representing views as of any subsequent date, and no obligation is undertaken 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. As a result of a number of known and unknown risks and uncertainties, actual results or performance may be materially different from those expressed or implied by these forward-looking statements. Some factors that could cause actual results to differ include: the ability to maintain the listing of the Company's shares on Nasdaq; changes in applicable laws or regulations; the effects of the COVID-19 pandemic on NMHI's business; the ability to implement business plans, forecasts, and other expectations, and identify and realize additional opportunities; the risk of downturns and the possibility of rapid change in the highly competitive industry in which NMHI operates; the risk that NMHI and its current and future collaborators are unable to successfully develop and commercialize NMHI's products or services, or experience significant delays in doing so; the risk that the Company may never achieve or sustain profitability; the risk that the Company will need to raise additional capital to execute its business plan, which may not be available on acceptable terms or at all; the risk that the Company experiences difficulties in managing its growth and expanding operations; the risk that third-party suppliers and manufacturers are not able to fully and timely meet their obligations; the risk that NMHI is unable to secure or protect its intellectual property; the possibility that NMHI may be adversely affected by other economic, business, and/or competitive factors; and other risks and uncertainties described in NMHI's filings from time to time with the Securities and Exchange Commission.
Contacts
George Yutuc
Chief Financial Officer
George.Yutuc@nature-miracle.com
MZ North America
Shannon Devine / Rory Rumore
Main: 203-741-8811
NMHI@mzgroup.us
NATURE'S MIRACLE HOLDING INC., SUBSIDIARIES AND VIE | ||||||||||
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEET | ||||||||||
As of | As of | |||||||||
2024 | 2023 | |||||||||
(Unaudited) | ||||||||||
ASSETS | ||||||||||
CURRENT ASSETS | ||||||||||
Cash and cash equivalent | $ | 40,114 | $ | 221,760 | ||||||
Accounts receivable, net | 2,376,603 | 1,236,248 | ||||||||
Accounts receivable - related parties, net | 1,850,601 | 305,669 | ||||||||
Inventories, net | 3,333,539 | 5,046,084 | ||||||||
Prepayments and other current assets | 393,439 | 139,734 | ||||||||
Loans receivable - related parties | - | 460,000 | ||||||||
Total Current Assets | 7,994,296 | 7,409,495 | ||||||||
NON-CURRENT ASSETS | ||||||||||
Security deposit | 27,633 | 47,633 | ||||||||
Right-of-use assets, net | 582,890 | 503,089 | ||||||||
Cost method investment | 1,000,000 | 1,000,000 | ||||||||
Property and equipment, net | 4,286,692 | 4,406,272 | ||||||||
Deferred offering costs | - | 833,932 | ||||||||
Total Assets | $ | 13,891,511 | $ | 14,200,421 | ||||||
LIABILITIES AND STOCKHOLDERS' DEFICIT | ||||||||||
CURRENT LIABILITIES | ||||||||||
Short-term loans | $ | 2,856,673 | $ | 509,443 | ||||||
Short-term loans - related parties | 858,255 | 783,255 | ||||||||
Current portion of long-term debts | 293,541 | 268,805 | ||||||||
Convertible notes | 681,410 | - | ||||||||
Accounts payable | 9,356,293 | 8,034,044 | ||||||||
Accounts payable - related parties | 572,500 | 2,758,074 | ||||||||
Other payables and accrued liabilities | 3,469,680 | 1,351,951 | ||||||||
Other payables - related parties | 348,658 | 257,954 | ||||||||
Operating lease liabilities - current | 451,417 | 359,459 | ||||||||
Tax accrual | 469,419 | 340,628 | ||||||||
Deferred income - Contract liabilities | 376,562 | 118,909 | ||||||||
Total Current Liabilities | 19,734,408 | 14,782,522 | ||||||||
NON-CURRENT LIABILITIES | ||||||||||
Long-term debts, net of current portion | 5,757,460 | 5,979,939 | ||||||||
Operating lease liabilities, net of current portion | 235,040 | 157,897 | ||||||||
Total Non-Current Liabilities | 5,992,500 | 6,137,836 | ||||||||
Total Liabilities | 25,726,908 | 20,920,358 | ||||||||
COMMITMENTS AND CONTINGENCIES | ||||||||||
SHAREHOLDERS' DEFICIT | ||||||||||
Preferred Stock ( | - | - | ||||||||
Common Stock ( | 3,163 | 2,227 | ||||||||
Additional paid-in capital | 5,939,783 | 1,526,773 | ||||||||
Accumulated deficit | (17,777,200) | (8,247,862) | ||||||||
Accumulated other comprehensive loss | (1,143) | (1,075) | ||||||||
Total Stockholders' Deficit | (11,835,397) | (6,719,937) | ||||||||
Total Liabilities and Stockholders' Deficit | $ | 13,891,511 | $ | 14,200,421 | ||||||
*Giving retroactive effect to reverse recapitalization effected on March 11, 2024 | ||||||||||
NATURE'S MIRACLE HOLDING INC., SUBSIDIARIES AND VIE | ||||||||||||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS | ||||||||||||||||||
For the | For the | For the | For the | |||||||||||||||
September 30, | September 30, | September 30, | September 30, | |||||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||||||
(Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |||||||||||||||
REVENUE (including related party revenue of | $ | 3,052,727 | $ | 2,690,690 | $ | 8,662,414 | $ | 7,600,890 | ||||||||||
COST OF REVENUE | 2,824,614 | 2,531,922 | 7,669,764 | 7,044,591 | ||||||||||||||
GROSS PROFIT | 228,113 | 158,768 | 992,650 | 556,299 | ||||||||||||||
OPERATING EXPENSES: | ||||||||||||||||||
Selling, general and administrative | 1,375,475 | 579,827 | 4,059,595 | 1,594,873 | ||||||||||||||
Stock compensation expenses | 848,075 | - | 1,215,880 | - | ||||||||||||||
Total operating expenses | 2,223,550 | 579,827 | 5,275,475 | 1,594,873 | ||||||||||||||
LOSS FROM OPERATIONS | (1,995,437) | (421,059) | (4,282,825) | (1,038,574) | ||||||||||||||
OTHER INCOME (EXPENSE) | ||||||||||||||||||
Interest expense, net | (738,468) | (133,047) | (1,527,443) | (493,067) | ||||||||||||||
Non cash finance expense | - | - | (1,000,000) | - | ||||||||||||||
Loss on loan extinguishment | (15,131) | - | (15,131) | (233,450) | ||||||||||||||
Other (expense) income | (1,300) | (5,023) | 2,438 | 1,323 | ||||||||||||||
Total other expense, net | (754,899) | (138,070) | (2,540,136) | (725,194) | ||||||||||||||
LOSS BEFORE INCOME TAXES | (2,750,336) | (559,129) | (6,822,961) | (1,763,768) | ||||||||||||||
PROVISION FOR (BENEFIT OF) INCOME TAXES | - | (155,163) | 2,500 | (385,853) | ||||||||||||||
NET LOSS | $ | (2,750,336) | $ | (403,966) | $ | (6,825,461) | $ | (1,377,915) | ||||||||||
OTHER COMPREHENSIVE LOSS | ||||||||||||||||||
Foreign currency translation adjustment | (35) | 85 | (68) | 876 | ||||||||||||||
COMPREHENSIVE LOSS | $ | (2,750,371) | $ | (403,881) | $ | (6,825,529) | $ | (1,377,039) | ||||||||||
WEIGHTED AVERAGE NUMBER OF COMMON STOCK* | ||||||||||||||||||
Basic and diluted | 30,241,099 | 22,272,478 | 26,622,599 | 22,272,478 | ||||||||||||||
LOSS PER SHARE | ||||||||||||||||||
Basic and diluted | $ | (0.09) | $ | (0.02) | $ | (0.26) | $ | (0.06) | ||||||||||
*Giving retroactive effect to reverse recapitalization effected on March 11, 2024 | ||||||||||||||||||
Reconciliation of GAAP to Non-GAAP Financial Measures | |||
Reconciliation of Adjusted EBITDA | |||
For the Three | For the Three | ||
Net Loss | $ (2,750,371) | $ (403,881) | |
Add Back: Depreciation | 39,860 | 41,694 | |
Stock Compensation | 848,075 | - | |
Interest Expense | 738,468 | 133,047 | |
EBITDA plus non-cash Stock Compensation | $ (1,123,968) | $ (229,140) | |
View original content:https://www.prnewswire.com/news-releases/natures-miracle-holding-inc-announces-third-quarter-2024-financial-results-302306406.html
SOURCE Nature's Miracle Holding Inc.