Sharing Economy International : Quarterly Report for Quarter Ending June 30, 2025 (Form 10-Q)
SEII
Published on 05/08/2026 at 06:06 am EDT
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Overview
Effective January 1, 2023, the Company approved and completed the internal corporate restructuring actions to streamline, right-size and optimize specific organizational structure by disposing of several subsidiaries.
Critical Accounting Policies and Estimates
Our discussion and analysis of our financial condition and results of operations are based upon our consolidated financial statements, which have been prepared in accordance with GAAP. The preparation of these consolidated financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities.
We base our estimates on historical experience and on various other assumptions that we believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Any future changes to these estimates and assumptions could cause a material change to our reported amounts of revenues, expenses, assets and liabilities. Actual results may differ from these estimates under different assumptions or conditions. We believe the following critical accounting policies affect our more significant judgments and estimates used in the preparation of the consolidated financial statements.
Currency Exchange Rates
Our functional currency is the U.S. dollar, and the functional currency of our operating subsidiaries is Hong Kong Dollar.
Our financial statements are expressed in U.S. dollars, which is the functional currency of our parent company. The functional currency of our operating subsidiaries and affiliates is the Hong Kong dollar. To the extent we hold assets denominated in U.S. dollars, any appreciation of the HKD against the U.S. dollar could result in a charge in our statement of operations and a reduction in the value of our U.S. dollar denominated assets. On the other hand, a decline in the value of HKD against the U.S. dollar could reduce the U.S. dollar equivalent amounts of our financial results.
Recent Accounting Pronouncements
In March 2023, the FASB issued ASU No. 2023-01, Leases (Topic 842): Common Control Arrangements ("ASU 2023-01") that is intended to improve the guidance for applying Topic 842 to arrangements between entities under common control. This ASU requires all entities (that is, including public companies) to amortize leasehold improvements associated with common control leases over the useful life to the common control group. The standard will be effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. Early adoption is permitted for both interim and annual financial statements that have not yet been made available for issuance. If an entity adopts the amendments in an interim period, it must adopt them as of the beginning of the fiscal year that includes that interim period. The Company has adopted this pronouncement and had no material impact on its condensed and consolidated financial statements.
In March 2024, the FASB issued ASU No. 2024-02, Codification Improvements-Amendments to Remove References to the Concepts Statements ("ASU 2024-02"). The amendments in this Update affect a variety of Topics in the Codification. The amendments apply to all reporting entities within the scope of the affected accounting guidance. This update contains amendments to the Codification that remove references to various Concepts Statements. In most instances, the references are extraneous and not required to understand or apply the guidance. In other instances, the references were used in prior statements to provide guidance in certain topical areas. ASU 2024-02 is effective for public business entities for fiscal years beginning after December 15, 2024. For all other entities, the amendments are effective for fiscal years beginning after December 15, 2025. Early adoption is permitted for both interim and annual financial statements that have not yet been issued or made available for issuance. The Company is currently evaluating the potential impact of the adoption of ASU 2024-02 on its condensed and consolidated financial statements.
In November 2024, the FASB issued ASU No. 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40), Disaggregation of Income Statement Expenses. This ASU includes new disclosure requirements about specific expense categories, including but not limited to, purchases of inventory, employee compensation, depreciation, amortization, and selling expenses that are included in certain expense captions presented on the face of the income statement. The ASU is effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027. Early adoption is permitted and the ASU can be applied on a prospective or retrospective basis. The Company expects this ASU to only impact the disclosures with no impacts to the results of operations, cash flows, and financial condition.
The Company has reviewed all recently issued, but not yet effective, accounting pronouncements and does not believe the future adoption of any such pronouncements may be expected to cause a material impact on its financial condition or the results of its operations.
RESULTS OF OPERATIONS
Three months ended June 30, 2025 and 2024
The following table sets forth the results of our operations for the three months ended June 30, 2025 and 2024:
Revenues.
No revenues were generated from our sharing economy business for the three months ended June 30, 2025 and 2024, respectively.
Cost of revenues.
No direct costs were incurred during the three months ended June 30, 2025 and 2024, respectively.
Gross profit and gross margin.
No gross profit and gross margin were resulted during the three months ended June 30, 2025 and 2024, as no income generated and direct costs incurred.
Operating expenses.
For the three months ended June 30, 2025, operating expenses were $4,968, as compared to $6,038 for the three months ended June 30, 2024, a decrease of $1,070 or 17.72%, due to decrease in selling, general and administrative expense.
Loss from operations.
As a result of the factors described above, for the three months ended June 30, 2025, loss from operations was $4,968 as compared to $6,038 for the three months ended June 30, 2024.
Total other incomes (expenses), net.
Other incomes (expenses) include interest income, interest expense and foreign currency transaction gain (loss), net. For the three months ended June 30, 2025, total other incomes (expenses), net, was $5 as compared to total other expenses, net of $6,145 for the three months ended June 30, 2024, a decrease of $6,140, was primarily decrease in foreign exchange loss during the three months ended June 30, 2025.
Income tax provision.
No income tax expense was recorded for the three months ended June 30, 2025 and 2024, respectively.
Net loss.
As a result of the foregoing, our net loss was $4,973 or $0.00 per share (basic and diluted), for the three months ended June 30, 2025 as compared with net loss of $12,183, or $0.00 in the three months ended June 30, 2024.
Six months ended June 30, 2025 and 2024
The following table sets forth the results of our operations for the six months ended June 30, 2025 and 2024:
Revenues.
No revenues were generated from our sharing economy business for the six months ended June 30, 2025 and 2024.
Cost of revenues.
No direct costs were incurred during the six months ended June 30, 2025 and 2024.
Gross profit and gross margin.
No gross profit and gross margin were resulted during the six months ended June 30, 2025 and 2024, as no income generated and direct costs incurred.
Operating expenses.
For the six months ended June 30, 2025, operating expenses were $10,192, as compared to $54,109 for the six months ended June 30, 2024, a decrease of $43,917, or 81.16%, due to the decrease in selling, general and administrative expenses.
Loss from operations.
As a result of the factors described above, for the six months ended June 30, 2025, loss from operations was $10,192 as compared to $54,109 for the six months ended June 30, 2024.
Total other incomes (expenses), net.
Other incomes (expenses) include interest income, interest expense and foreign exchange gain (loss), net. For the six months ended June 30, 2025, total other expenses, net, were $5 as compared to other expenses, net, of $158 for the six months ended June 30, 2024, a decrease of $153. The decrease in other expenses, net, was primarily related to the foreign currency transaction in the six months ended June 30, 2025.
Income tax provision.
No income tax expense was recorded for the six months ended June 30, 2025 and 2024, respectively.
Net income (loss).
As a result of the foregoing, our net loss was $10,197, or $0.00 per share (basic and diluted), for the six months ended June 30, 2025 as compared with net loss of $54,267, or $(0.00) for the six months ended June 30, 2024.
Liquidity and Capital Resources
Liquidity is the ability of the Company to generate funds to support its current and future operations, satisfy its obligations and otherwise operate on an ongoing basis. As of June 30, 2025 and December 31, 2024, we had cash and cash equivalents of approximately $1,873 and $1,554, respectively.
The following table sets forth a summary of changes in our working capital from December 31, 2024 to June 30, 2025:
During June 30, 2025, our working capital has no significant changes, as compared to December 31, 2024.
Cash Flows
The following table sets forth a summary of our cash flows for the periods as indicated:
Cash Flow in Operating Activities
Net cash flow used in operating activities was $10,197 for the six months ended June 30, 2025, which consisted of net loss of $10,197.
Net cash flow used in operating activities was $54,267 for the six months ended June 30, 2024, which consisted of net loss of $54,267.
Cash Flow in Investing Activities
There were no investing activities for the six months ended June 30, 2025 and 2024.
Cash Flow in Financing Activities
Net cash flow provided by financing activities was $18,899 for the six months ended June 30, 2025, which consisted of $18,899 fund advances from related party.
Net cash flow provided by financing activities was $44,852 for the six months ended June 30, 2024, which consisted of $44,852 fund advances from related party.
We have historically funded our capital expenditures through cash flow provided by operations and bank loans. We intend to fund the cost by obtaining financing mainly from local banking institutions with which we have done business in the past. We believe that the relationships with local banks are in good standing and we have not encountered difficulties in obtaining needed borrowings from local banks.
Off-balance Sheet Arrangements
We have not entered into any other financial guarantees or other commitments to guarantee the payment obligations of any third parties. We have not entered into any derivative contracts that are indexed to our shares and classified as shareholder's equity or that are not reflected in our consolidated financial statements. Furthermore, we do not have any retained or contingent interest in assets transferred to an unconsolidated entity that serves as credit, liquidity or market risk support to such entity. We do not have any variable interest in any unconsolidated entity that provides financing, liquidity, market risk or credit support to us or engages in leasing, hedging or research and development services with us.
Inflation
The effect of inflation on our revenue and operating results was not significant.
Disclaimer
Sharing Economy International Inc. published this content on May 08, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 08, 2026 at 10:05 UTC.