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Section 1: 8-K (CURRENT REPORT)

 

 

United States

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

 

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported): May 15, 2019

 

Sino-Global Shipping America, Ltd.

(Exact name of Registrant as specified in charter)

 

Virginia   001- 34024   11-3588546
(State or other jurisdiction
of Incorporation)
  (Commission File No.)   (IRS Employer
Identification No.)


1044 Northern Boulevard, Suite 305

Roslyn, New York 11576-1514

(Address of principal executive offices) (Zip Code)

 

Registrant's telephone number, including area code: (718) 888-1814

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

Written communications pursuant to Rule 425 under the Securities Act (17CFR230.425)

 

Soliciting material pursuant to Rule14a-12 under the Exchange Act (17CFR240.14a-12)

 

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17CFR240.14d-2(b))

 

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17CFR240.13e-4(c))

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

 

Emerging growth company ☐

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class   Trading Symbol(s)   Name of each exchange on which registered
Common Stock   SINO   NASDAQ

 

 

 

 

 

 

Item 2.02. Results of Operations and Financial Condition.

 

On May 15, 2019, Sino-Global Shipping America, Ltd. (the “Company”) issued a press release announcing certain financial results for the quarter ended March 31, 2019. A copy of the press release is attached hereto as Exhibit 99.1.

 

The information provided in this Current Report on Form 8-K, including under this Item 2.02 and Exhibit 99.1, shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liability of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such a filing.

 

Item 9.01. Financial Statements and Exhibits.

 

(d) Exhibits.

 

Exhibit No.   Description
99.1   Press release of Sino-Global Shipping America, Ltd.

 

1

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

  Sino-Global Shipping America, Ltd.
     
Date: May 15, 2019 By: /s/ Lei Cao
  Name: Lei Cao
  Title: Chief Executive Officer

 

 

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(Back To Top)

Section 2: EX-99.1 (PRESS RELEASE OF SINO-GLOBAL SHIPPING AMERICA, LTD.)

Exhibit 99.1

  

 

 

Sino-Global Announces Fiscal 2019 Third Quarter Financial Results Highlighted by a 337.9% Increase to $22.8 Million in Total Revenues

 

Roslyn, New York, May 15, 2019 – Sino-Global Shipping America, Ltd. (NASDAQ: SINO) (“Sino-Global”, the “Company”, “our”, “we” or “us”), a logistics integrated solutions provider engaged in non-asset based global shipping, freight logistics, and inland transportation management and related services, today announced its financial and operating results for the third quarter and nine months ended March 31, 2019.

 

The Company has also provided an update on its quarterly report on Form 10-Q filed with the U.S. Securities and Exchange Commission the same day. Management encourages investors to review this filing for more details of the Company’s financial results for the period.

 

Fiscal Year 2019 Third Quarter Financial Review

 

Total revenues increased by 337.9% to approximately $22.8 million for the three month period ended March 31, 2019, compared to approximately $5.2 million in the three month period ended March 31, 2018. The increase was mainly due to continuing efforts to diversify its business, resulting in the rise in revenues generated from its freight logistics services segment. Freight logistics services consist primarily of cargo forwarding, brokerage and other freight services in China.

 

The Company’s gross profit for the three month period ended March 31, 2019 was approximately $1.7 million, compared to approximately $1.8 million for the same period in the prior year. Gross margin during the period was approximately 7.5% compared to approximately 34.5% for the same period last year.

 

Sino-Global’s selling, general and administrative expenses (SG&A expenses) were approximately $2.8 million for the three month period ended March 31, 2019, compared to approximately $1.2 million in the same period of the prior year. As a percentage of revenue, SG&A expenses decreased to approximately 12.2% from approximately 23.7% in the prior year period, largely due to greater efficiency on higher revenues.

 

The Company’s provision for doubtful accounts was $1,583,965 for the three months ended March 31, 2019, compared with a provision for doubtful accounts of $570,712 for the same period in 2018. The increase was due to slower collections from customers with significant increased credit sales. As the Company continues its business relationship with several large customers, it continues to monitor the collection closely with respect to trade accounts receivable.

 

For the three months ended March 31, 2019, the Company reported a net loss attributable to the Company of approximately $1.4 million, or $(0.09) per diluted share based on weighted average diluted shares outstanding of 15,295,703, compared to a net income attributable to the Company of approximately $0.1 million, or $0.01 per diluted share based on weighted average diluted shares outstanding of 10,870,221, for the same period in the prior year.

 

The following tables present summary information by segments for the three months ended March 31, 2019 and 2018:

 

   For the Three Months Ended March 31, 2019 
   Shipping
Agency
Services
   Inland
Transportation
Management
Services
   Freight
Logistics
Services
   Container
Trucking
Services
   Total 
Revenues                    
- Related party  $-   $36,380   $-   $-   $36,380 
- Third parties  $956,583   $93,407   $21,599,675   $87,094   $22,736,759 
Total revenues  $956,583   $129,787   $21,599,675   $87,094   $22,773,139 
Cost of revenues  $862,970   $48,750   $20,098,417   $65,058   $21,075,195 
Gross profit  $93,613   $81,037   $1,501,258   $22,036   $1,697,944 
Depreciation and amortization  $-   $39,109   $476   $4,448   $44,033 
Total capital expenditures  $-   $-   $125,806   $8,317   $134,123 
Gross margin%   9.8%   62.4%   7.0%   25.3%   7.5%

 

 

 

 

   For the Three Months Ended March 31, 2018 
   Shipping
Agency
Services
   Inland
Transportation
Management
Services
   Freight
Logistics
Services
   Container
Trucking
Services
   Total 
Revenues                    
- Related party  $-   $501,000   $-   $-   $501,000 
- Third parties  $-   $934,872   $3,577,293   $187,005   $4,699,170 
Total revenues  $-   $1,435,872   $3,577,293   $187,005   $5,200,170 
Cost of revenues  $-   $91,276   $3,195,492   $118,667   $3,405,435 
Gross profit  $-   $1,344,596   $381,801   $68,338   $1,794,735 
Depreciation and amortization  $-   $26,268   $475   $4,917   $31,660 
Total capital expenditures  $-   $-   $-   $10,929   $10,929 
Gross margin%   -    93.6%   10.7%   36.5%   34.5%

   

Balance Sheet Information

 

As of March 31, 2019, the Company had approximately $3.5 million in cash, working capital of approximately $11.3 million and stockholders’ equity of approximately $22.3 million.

 

The Company had no long-term debt as of March 31, 2019.

 

About Sino-Global Shipping America, Ltd.

 

Founded in the United States in 2001, Sino-Global Shipping America, Ltd. is a company engaged originally in shipping, chartering, logistics and related business services. Headquartered in New York, Sino-Global has offices in mainland China, Australia, Canada and Hong Kong. The Company’s current service offerings consist of shipping agency, inland transportation management, freight logistics and container trucking services. Additional information about Sino-Global can be found on the Company’s corporate website at www.sino-global.com. The Company routinely posts important information on its website.

 

Forward Looking Statements

 

No statement made in this press release should be interpreted as an offer to sell or a solicitation of an offer to purchase any security. Such an offer can only be made in accordance with the Securities Act of 1933, as amended, and applicable state securities laws. Any statements contained in this release that relate to future plans, events or performance are forward-looking statements that involve risks and uncertainties as identified in Sino-Global’s filings with the U.S. Securities and Exchange Commission. Actual results, events or performance may differ materially. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. Sino-Global undertakes no obligation to publicly release the results of any revisions to these forward-looking statements that may be made to reflect the events or circumstances after the date hereof or to reflect the occurrence of unanticipated events unless required by applicable law or regulations.

 

Contact Information

 

The Equity Group Inc.

Adam Prior

Senior Vice-President

(212)-836-9606 / [email protected]

  

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SINO-GLOBAL SHIPPING AMERICA, LTD. AND AFFILIATES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

(UNAUDITED)

 

   For the Three Months Ended   For the Nine Months Ended 
   March 31,   March 31, 
   2019   2018   2019   2018 
                 
Net revenues - third parties  $22,736,759   $4,699,170   $39,354,579   $14,179,256 
Net revenues - related party   36,380    501,000    433,380    1,621,406 
Total revenues   22,773,139    5,200,170    39,787,959    15,800,662 
Cost of revenues   (21,075,195)   (3,405,435)   (34,715,624)   (10,447,231)
Gross profit   1,697,944    1,794,735    5,072,335    5,353,431 
                     
Selling expenses   (140,601)   (35,363)   (507,199)   (393,090)
General and administrative expenses   (2,637,868)   (1,196,806)   (6,314,447)   (3,444,095)
Stock-based compensation   (148,708)   (280,708)   (2,013,292)   (623,790)
Total operating expenses   (2,927,177)   (1,512,877)   (8,834,938)   (4,460,975)
                     
Operating income (loss)   (1,229,233)   281,858    (3,762,603)   892,456 
                     
Financial income, net   2,499    170,134    3,993    392,729 
                     
Net income (loss) before provision for income taxes   (1,226,734)   451,992    (3,758,610)   1,285,185 
                     
Income tax benefit (expense)   (248,820)   (216,095)   (427,333)   58,597 
                     
Net income (loss)   (1,475,554)   235,897    (4,185,943)   1,343,782 
                     
Net income (loss) attributable to non-controlling interest   (86,764)   150,943    (6,419)   343,936 
                     
Net income (loss) attributable to Sino-Global Shipping America, Ltd.  $(1,388,790)  $84,954   $(4,179,524)  $999,846 
                     
Comprehensive income (loss)                    
Net income (loss)  $(1,475,554)  $235,897   $(4,185,943)  $1,343,782 
Other comprehensive income (loss) - foreign currency   262,467    164,446    (306,457)   309,763 
Comprehensive income (loss)   (1,213,087)   400,343    (4,492,400)   1,653,545 
Less: Comprehensive income (loss) attributable to non-controlling interest   (96,210)   30,785    37,445    92,150 
Comprehensive income (loss)  attributable to Sino-Global Shipping America Ltd.  $(1,116,877)  $369,558   $(4,529,845)  $1,561,395 
                     
Earnings (loss) per share                    
Basic  $(0.09)  $0.01   $(0.30)  $0.10 
Diluted  $(0.09)  $0.01   $(0.30)  $0.10 
                     
Weighted average number of common shares used in computation                    
Basic   15,245,703    10,835,535    14,045,018    10,433,272 
Diluted   15,245,703    10,870,221    14,045,018    10,479,555 

  

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SINO-GLOBAL SHIPPING AMERICA, LTD. AND AFFILIATES

CONDENSED CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

 

   March 31,   June 30, 
   2019   2018 
         
Assets        
Current assets          
Cash  $3,523,907   $7,098,259 
Note receivable   745,001    - 
Accounts receivable, less allowance for doubtful accounts of $4,710,897 and $1,682,228 as of March 31, 2019 and June 30, 2018, respectively   14,067,687    8,428,853 
Other receivables, less allowance for doubtful accounts of $145,198 and $145,176 as of March 31, 2019 and June 30, 2018, respectively   79,481    69,239 
Advances to suppliers-third parties   1,145,620    704,878 
Advances to suppliers-related party   -    3,414,619 
Prepaid expense and other current assets   103,172    588,439 
Due from related party, net   885,456    2,087,994 
Total Current Assets   20,550,324    22,392,281 
           
Property and equipment, net   1,032,695    956,429 
Intangible assets, net   105,556    153,056 
Prepaid expenses   1,114,542    1,878,258 
Other long-term assets - deposits   3,123,268    143,303 
Deferred tax assets, net   847,668    634,500 
Total Assets  $26,774,053   $26,157,827 
           
Liabilities and Equity          
           
Current Liabilities          
Advances from customers  $69,369   $415,385 
Accounts payable   4,688,560    3,225,661 
Taxes payable   3,611,161    2,700,619 
Accrued expenses and other current liabilities   848,797    280,888 
Total current liabilities   9,217,887    6,622,553 
           
Total liabilities   9,217,887    6,622,553 
           
Commitments and Contingencies          
           
Equity          
Preferred stock, 2,000,000 shares authorized, no par value, none issued   -    - 
Common stock, 50,000,000 shares authorized, no par value; 15,471,200 and 13,271,032 shares issued as of March 31, 2019 and June 30, 2018, respectively; 15,295,703 and 13,095,535 outstanding as of March 31, 2019 and June 30, 2018, respectively   25,855,330    23,717,330 
Additional paid-in capital   2,130,865    1,755,573 
Treasury stock, at cost, 175,497 shares  as of  March 31, 2019 and June 30, 2018   (417,538)   (417,538)
Accumulated deficit   (4,614,380)   (434,856)
Accumulated other comprehensive loss   (622,728)   (272,407)
Total Sino-Global Shipping America Ltd. Stockholders’ Equity   22,331,549    24,348,102 
           
Non-controlling Interest   (4,775,383)   (4,812,828)
           
Total Equity   17,556,166    19,535,274 
           
Total Liabilities and Equity  $26,774,053   $26,157,827 

  

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SINO-GLOBAL SHIPPING AMERICA, LTD. AND AFFILIATES

 CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

 (UNAUDITED) 

 

   Preferred Stock   Common Stock   Additional
paid-in
   Treasury Stock   Accumulated
income
   Accumulated other
comprehensive
   Noncontrolling     
   Shares   Amount   Shares   Amount   capital   Shares   Amount   (deficit)   income (loss)   interest   Total 
BALANCE, June 30, 2017   -   $-    10,281,032   $20,535,379   $688,934    (175,497)  $(417,538)  $(893,907)  $(414,564)  $(4,768,779)  $14,729,525 
Stock-based compensation to management   -    -    -    -    9,665    -    -    -    -    -    9,665 
Amortization of shares issued to consultants   -    -    -    -    52,709    -    -    -    -    -    52,709 
Foreign currency translation   -    -    -    -    -    -    -    -    106,419    (59,653)   46,766 
 Net income   -    -    -    -    -    -    -    617,189    -    100,400    717,589 
BALANCE, September 30, 2017   -    -    10,281,032   $20,535,379    751,308    (175,497)   (417,538)  $(276,718)  $(308,145)   (4,728,032)   15,556,254 
Amortization of shares issued to consultants   -    -    -    -    280,708    -    -    -    -    -    280,708 
Foreign currency translation   -    -    -    -    -    -    -    -    173,508    142,422    315,930 
Net income (loss)   -    -    -    -    -    -    -    297,703    -    (153,733)   143,970 
BALANCE, December 31, 2017   -    -    10,281,032   $20,535,379    1,032,016    (175,497)   (417,538)  $20,985   $(134,637)   (4,739,343)   16,296,862 
Stock based compensation to employee   -    -    130,000    364,000    (364,000)   -    -    -    -    -    - 
Stock based compensation to consultants   -    -    200,000    548,000    (548,000)   -    -    -    -    -    - 
Issuance of common stock to private investor   -    -    2,000,000    1,510,951    1,074,140    -    -    -    -    -    2,585,091 
Amortization of shares to management and employees   -    -    -    -    182,000    -    -    -    -    -    182,000 
Amortization of shares issued to consultants   -    -    -    -    98,708    -    -    -    -    -    98,708 
Foreign currency translation   -    -    -    -    -    -    -    -    288,412    (341,346)   (52,934)
Net income   -    -    -    -    -    -    -    84,954    -    372,130    457,084 
BALANCE, March 31, 2018   -   $-    12,611,032   $22,958,330   $1,474,864    (175,497)  $(417,538)  $105,939   $153,775   $(4,708,559)  $19,566,811 

  

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SINO-GLOBAL SHIPPING AMERICA, LTD. AND AFFILIATES

 CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

 (UNAUDITED) 

 (CONTINUED)

 

                   Additional               Accumulated other         
   Preferred Stock   Common Stock   paid-in   Treasury Stock   Accumulated   comprehensive   Noncontrolling     
   Shares   Amount   Shares   Amount   capital   Shares   Amount   deficit   income (loss)   interest   Total 
BALANCE, June 30, 2018   -   $-    13,271,032   $23,717,330   $1,755,573    (175,497)  $(417,538)  $(434,856)  $(272,407)  $(4,812,828)  $19,535,274 
Stock based compensation to employee   -    -    430,000    473,000    -    -    -    -    -    -    473,000 
Stock based compensation to consultants   -    -    50,000    63,500    -    -    -    -    -    -    63,500 
Amortization of shares to management and employees   -    -    -    -    91,000    -    -    -    -    -    91,000 
Amortization of shares issued to consultants   -    -    -    -    189,708    -    -    -    -    -    189,708 
Foreign currency translation   -    -    -    -    -    -    -    -    (539,656)   77,494    (462,162)
Net income (loss)   -    -    -    -    -    -    -    (1,316,762)   -    29,231    (1,287,531)
BALANCE, September 30, 2018   -    -    13,751,032    24,253,830    2,036,281    (175,497)   (417,538)   (1,751,618)   (812,063)   (4,706,103)   18,602,789 
Stock based compensation to employee   -    -    1,150,000    909,500    -    -    -    -    -    -    909,500 
 Stock based compensation to consultants   -    -    100,000    128,500    (43,333)   -    -    -    -    -    85,167 
Issuance of common stock to private investor   -    -    420,168    500,000    -    -    -    -    -    -    500,000 
Amortization of shares issued to consultants   -    -    -    -    52,709    -    -    -    -    -    52,709 
Foreign currency translation   -    -    -    -    -    -    -    -    (82,578)   (24,184)   (106,762)
 Net income (loss)   -    -    -    -    -    -    -    (1,473,972)   -    51,114    (1,422,858)
BALANCE, December 31, 2018   -    -    15,421,200    25,791,830    2,045,657    (175,497)   (417,538)   (3,225,590)   (894,641)   (4,679,173)   18,620,545 
Stock based compensation to consultants   -    -    50,000    63,500    32,500    -    -    -    -    -    96,000 
Amortization of shares issued to consultants   -    -    -    -    52,708    -    -    -    -    -    52,708 
 Foreign currency translation   -    -    -    -    -    -    -    -    271,913    (9,446)   262,467 
 Net loss   -    -    -    -    -    -    -    (1,388,790)   -    (86,764)   (1,475,554)
BALANCE, March 31, 2019   -   $-    15,471,200   $25,855,330   $2,130,865    (175,497)  $(417,538)  $(4,614,380)  $(622,728)  $(4,775,383)  $17,556,166 

  

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SINO-GLOBAL SHIPPING AMERICA, LTD. AND AFFILIATES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

 (UNAUDITED)

   For the Nine Months Ended 
   March 31, 
   2019   2018 
         
Operating Activities        
Net income (loss)  $(4,185,943)  $1,343,782 
Adjustments to reconcile net income (loss) to net cash used in operating activities:          
Stock-based compensation   2,013,292    623,790 
Depreciation and amortization   95,313    63,402 
Provision for doubtful accounts   2,871,752    1,408,143 
Deferred tax benefit   (208,047)   (920,700)
Changes in assets and liabilities          
Notes receivable   (732,826)   - 
Accounts receivable   (8,341,650)   (3,246,911)
Other receivables   36,014    (80,145)
Advances to suppliers-third parties   (410,886)   50,465 
Advances to suppliers-related party   3,312,375    - 
Prepaid expenses and other current assets   821,662    (84,147)
Other long-term assets - deposits   (2,502,946)   - 
Due from related parties   1,552,918    (784,363)
Advances from customers   (353,696)   (23,218)
Accounts payable   1,336,453    243,380 
Taxes payable   837,641    798,012 
Due to related parties   -    (206,323)
Accrued expenses and other current liabilities   535,921    889 
Net cash used in operating activities   (3,322,653)   (813,944)
           
Investing Activities          
Acquisition of property and equipment   (143,480)   (379,917)
Acquisition of intangible assets   -    (190,000)
Prepayment for intangible assets   -    (437,357)
Net cash used in investing activities   (143,480)   (1,007,274)
           
Financing Activities          
Proceeds from issuance of common stock   500,000    2,585,091 
Net cash provided financing activities   500,000    2,585,091 
           
Effect of exchange rate fluctuations on cash   (608,219)   52,327 
           
Net increase (decrease) in cash   (3,574,352)   816,200 
           
Cash at beginning of period   7,098,259    8,733,742 
           
Cash at end of period  $3,523,907   $9,549,942 
           
Supplemental information          
Income taxes paid  $144,018   $60,162 

 

 

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