AirNet Technology Inc. Announces Unaudited Financial Results for the First Half of 2023

Dec 26, 2023
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BEIJING, Dec. 26, 2023 (GLOBE NEWSWIRE) -- AirNet Technology Inc., formerly known as AirMedia Group Inc. (“AirNet” or the “Company”) (Nasdaq: ANTE), today announced its unaudited financial results for the first half of 2023.

AIRNET TECHNOLOGY INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(In U.S. dollars in thousands, except share and per share data)
    As of December 31,   As of June 30,  
    2022   2023  
        (Unaudited)  
Assets              
Current assets:              
Cash and cash equivalents   $ 2,700   $ 132  
Accounts receivable, net     1,421     552  
Other current assets, net     65,072     28,527  
Amount due from related parties     601     199  
Total current assets     69,794     29,410  
Property and equipment, net     10,885     10,447  
Long-term investments, net     34,083     30,654  
Long-term deposits, net     371     62  
Operating lease right-of-use assets     16     8  
TOTAL ASSETS     115,149     70,581  
Liabilities              
Current liabilities:              
Short-term loan     12,822     9,912  
Accounts payable     15,774     16,451  
Accrued expenses and other current liabilities     11,277     11,041  
Deferred revenue     7,745     7,366  
Amount due to related parties     1,174     1,207  
Income tax payable     1,865     1,232  
Operating lease liability, current     10     12  
Consideration received from buyer     29,000     27,580  
Payable of earnout commitment     22,120     21,037  
Total current liabilities     101,787     95,838  
Non-current liabilities:              
Operating lease liability, non-current     9     -  
Total liabilities     101,796     95,838  



AIRNET TECHNOLOGY INC. 
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS - CONTINUED
(In U.S. dollars in thousands, except share and per share data)
    As of December 31,   As of June 30,  
    2022    2023  
        (Unaudited)  
Equity              
               
Ordinary shares ($0.04 par value; 22,500,000 shares authorized; 8,948,505 and 4,525,643 shares issued as of December 31, 2022 and June 30, 2023; 8,923,687 and 4,499,654 shares outstanding as of December 31, 2022 and June 30, 2023)     359       181  
Additional paid-in capital     332,746       298,685  
Treasury stock (245,818 shares as of December 31, 2022 and June 30, 2023)     (1,148 )     (1,148 )
Accumulated deficit     (318,239 )     (322,164 )
Accumulated other comprehensive income     32,044       31,368  
Total AirNet Technology Inc.'s shareholders' equity     45,762       6,922  
Non-controlling interests     (32,409 )     (32,179 )
Total equity (deficits)     13,353       (25,257 ) 
               
TOTAL LIABILITIES AND DEFICITS   $ 115,149     $ 70,581  



AIRNET TECHNOLOGY INC. 
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In U.S. dollars in thousands, except share and per share data)
    Six months ended June 30,  
    2022     2023  
    (Unaudited)     (Unaudited)  
               
Revenues   $ 2,541     $ 581  
Business tax and surcharges     (53 )     (43 )
Net revenues     2,488       538  
Cost of revenues     (2,358 )      (1,394 ) 
Gross profit (loss)     130       (856 ) 
                 
Operating expenses:                
Selling and marketing     (748 )      (359 ) 
General and administrative     (3,435 )     (1,712 )
Research and development     (18 )      (16 ) 
Total operating expenses     (4,201 )      (2,087 ) 
Loss from operations     (4,071 )     (2,943 )
Interest expense, net     (448 )     (330 )
Loss from long-term investments     (1,275 )     (618 )
Other income, net     4,798       199  
Loss from operations before income taxes     (996 )     (3,692 )
Income tax expenses     (12 )     (1 )
Net loss     (1,008 )     (3,693 )
Less: Net income from operations attributable to non-controlling interests     756       232  
Net loss from operations attributable to AirNet Technology Inc.'s shareholders   $ (1,764 )   $ (3,925 )
                 
Net loss attributable to AirNet Technology Inc.’s shareholders per ordinary share                
- Basic and diluted   $ (0.27 )   $ (1.10 )
                 
Net loss attributable to AirNet Technology Inc.’s shareholders per ADS                
- Basic and diluted   $ (0.27 )   $ (1.10 )
                 
Weighted average ordinary shares used in calculating net loss per ordinary share                
- Basic and diluted     6,612,793       3,575,714  
                 
Weighted average ADS used in calculating net loss per ADS                
- Basic and diluted     6,612,793       3,575,714  
                 

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Going concern

The Group has a history of operating losses and negative operating cash flows and has negative working capital of $66,428 as of June 30, 2023. These conditions raise substantial doubt about the Group’s ability to continue as a going concern.

The Group plans to strengthen the air travel media network business to drive its revenues and bring in cash to keep operation. In addition, the Group tried to reach an agreement to transfer its 33% equity investment in Unicom AirNet (Beijing) Network Co., Ltd to an investor for cash to keep liquidity. However, there is no assurance that the measures above can be achieved as planned. As a result, management prepared the consolidated financial statements assuming the Group will continue as a going concern. The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.

Forward-Looking Statements

This announcement contains forward-looking statements within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “is expected to,” “anticipates,” “aim,” “future,” “intends,” “plans,” “believes,” “are likely to,” “estimates,” “may,” “should” and similar expressions. The Company may also make written or oral forward-looking statements in its reports filed with, or furnished to, the U.S. Securities and Exchange Commission, in its annual reports to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Forward-looking statements are based upon management’s current expectations and current market and operating conditions, and involve inherent risks and uncertainties, all of which are difficult to predict and many of which are beyond the Company’s control, which may cause its actual results, performance or achievements to differ materially from those in the forward-looking statements. Further information is included in the Company’s filings with the U.S. Securities and Exchange Commission. All information provided in this announcement is as of the date of this announcement, and the Company does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under law.

Company Contact

Linda Wang
Investor Relations
AirNet Technology Inc.
Tel: +86-10-8460-8678
Email: ir@ihangmei.com 


AirNet Technology Inc.