EX-99.1 2 ea129109ex99-1_soslimited.htm UNAUDITED INTERIM CONSOLIDATED FINANCIAL STATEMENTS AS OF JUNE 30, 2020 AND FOR THE SIX MONTHS ENDED JUNE 30, 2020 AND 2019

Exhibit 99.1

 

SOS LIMITED 

UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE OF LOSS

(US$ thousands, except share data and per share data, or otherwise noted)

 

   Six months ended 
   June 30, 2019   June 30, 2020 
   US$   US$ 
Revenue   74    9,917 
Business taxes and surcharges   -    (8)
Net revenue   74    9,909 
Operating costs   (19)   (9,830)
Gross profit   55    79 
Operating expenses          
Selling expense   -    - 
G&A expense   (259)   (2,670)
Finance expense   -    - 
Total operating expenses   (259)   (2,670)
Operating (profit)loss   (204)   (2,591)
Non-operating income   -    48 
Loss on acquisition   -    (5,679)
Total other expenses   -    (5,631)
Total loss before tax   (204)   (8,222)
Income tax expense   -    (1)
Net loss from continuing operation   (204)   (8,223)
Net loss from discontinued operation   -    (545)
Net loss   (204)   (8,768)
Preferred dividends   -    - 
Net loss attributable to ordinary shareholders   (204)   (8,768)
Foreign currency translation adjustment-net of tax   -    7 
Comprehensive of loss   (204)   (8,761)

  

 

 

 

SOS LIMITED

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEET

(US$ thousands, except share data and per share data, or otherwise noted)

 

   Six months ended 
   December 31, 2019   June 30, 2020 
Assets        
Cash and cash equivalents   41    610 
Receivables   3,223    1,288 
Prepayment and other assets   2,501    16,829 
Total current assets   5,765    18,727 
Property equipment and software-net   169    331 
Assets of discontinued group   -    53,654 
Total assets   5,934    72,713 
           
Liabilities and Shareholder's Equity          
Liabilities:          
Accrued liabilities   3,216    13,813 
Tax payable   (1)   (15)
Other payables   2,683    6,764 
Total current liabilities   5,898    20,561 
Liabilities of discontinued group   -    50,217 
Total liabilities   5,898    70,778 
Paid up capital   -    14 
Additional paid-in capital   -    10,647 
Retained earnings   (36)   35 
Current year net profit/(loss)   71    (8,768)
Other comprehensive income   -    7 
Total Shareholders' Equity   36    1,935 
Total Liabilities and Shareholders’ Equity   5,934    72,713 

  

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SOS LIMITED

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CASH FLOW

(US$ thousands, except share data and per share data, or otherwise noted)

 

   Six months ended 
   June 30, 2019   June 30, 2020 
Cash flows from operating activities:        
Net (loss)   (204)   (8,768)
Adjustments:          
Depreciation and amortization   -    3 
Share-based compensation   -    737 
Loss on acquisition   -    5,679 
Receivables, prepayments and other assets   (3,379)   (12,393)
Accrued liabilities   3,570    14,678 
Tax payable   4    (15)
Net cash used in operating activities from discontinued operation   -    545 
Net cash used in operating activities   (10)   466 
Cash flows from investing activities:          
Purchase of property, equipment and software   (4)   (202)
Investment in equity   -    (591)
Net cash used in investing activities   (4)   (794)
Cash flows from financing activities:   -    - 
Proceeds from private equity placement   -    898 
Net cash provided by financing activities   -    898 
Net increase/(decrease), effect of exchange rate changes on cash and cash equivalent   (14)   570 
Cash and cash equivalent at beginning of the period   27    41 
Cash and cash equivalent at end of the period   13    610 

  

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SOS LIMITED

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

 

1. Reverse Acquisitions of China Rapid Finance by SOS Limited

 

On May 18, 2020, the Company completed the acquisition with Yong Bao Two Ltd. (“YBT”), the parent company of SOS Information Technology Co., Ltd. (“SOS”). Following the completion of the acquisition, the operations of the Company were primarily comprised of the operations of SOS.

  

The acquisition was accounted for as asset acquisitions. The purchase price for China Rapid Finance (“CRF”) was $9.7 million.  The transaction price of CRF includes 100% of all outstanding stock valued at net $9.7 million.  The stock exchange equaled the 72,636,230 shares of CRF outstanding prior to the issuance of additional shares in the acquisition, at the market price of $0.133 per share. The total purchase price has been allocated based on an estimate of the fair value of CRF’s assets acquired and liabilities assumed with the remainder recorded as an expense.

 

On May 18, 2020, the fair value of the following assets and liabilities were acquired resulting in the total loss of approximately $5.7 million:

 

Dollars in thousands    
Total Purchase Price   9,660 
Net Assets (Liabilities) Acquired:     
Assets     
Cash and cash equivalents   13,664 
Restricted cash   26,524 
Accounts receivable   7,462 
Inventories   8 
Prepaid expenses and other current assets   110 
Non-current assets   2,969 
Other assets   2,682 
Total Assets   53,419 
Liabilities     
Warrant derivative liability   - 
Accounts payable & accrued liabilities   (49,437)
Total Liabilities   (49,437)
Net Assets (Liabilities) Acquired   3,982 
Loss on Acquisitions   5,678 

 

2. Non-GAAP adjustments and Non-GAAP results

 

 

   Sixed months ended 
   30-Jun-19   30-Jun-20 
   US$'000'   US$'000' 
Non-GAAP adjusted loss before income tax expenses   (204)   (1,263)

 

 

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