IT Tech Packaging Files Q2 2024 10-Q

TL;DR

IT Tech Packaging (formerly Orient Paper) filed its 10-Q for Q2 2024. Based in China.

AI Summary

IT Tech Packaging, Inc. filed its quarterly report on Form 10-Q for the period ended June 30, 2024. The company, formerly known as Orient Paper Inc., is incorporated in Nevada and operates in the converted paper and paperboard products sector. Its principal executive offices are located in Baoding City, Hebei Province, China.

Why It Matters

This filing provides investors with an update on the financial performance and operational status of IT Tech Packaging, Inc. during the second quarter of 2024.

Risk Assessment

Risk Level: low — This is a standard quarterly filing with no immediate red flags or significant new disclosures.

Key Players & Entities

• IT TECH PACKAGING, INC. (company) — Registrant
• Orient Paper Inc. (company) — Former company name
• June 30, 2024 (date) — Quarterly period end date
• 20240812 (date) — Filing date
• 001-34577 (other) — SEC file number

FAQ

Key Financial Figures

• $0.001 — ich registered Common Stock, par value $0.001 ITP NYSE American Indicate by check m
• $0 — he registrant's common stock, par value $0.001, outstanding. TABLE OF CONTENTS

Filing Documents

• ea0210873-10q_ittech.htm (10-Q) — 1001KB
• ea021087301ex31-1_ittech.htm (EX-31.1) — 10KB
• ea021087301ex31-2_ittech.htm (EX-31.2) — 10KB
• ea021087301ex32-1_ittech.htm (EX-32.1) — 5KB
• ea021087301ex32-2_ittech.htm (EX-32.2) — 4KB
• image_001.jpg (GRAPHIC) — 47KB
• image_002.jpg (GRAPHIC) — 50KB
• image_003.jpg (GRAPHIC) — 46KB
• image_004.jpg (GRAPHIC) — 44KB
• image_005.jpg (GRAPHIC) — 51KB
• image_006.jpg (GRAPHIC) — 48KB
• 0001213900-24-067681.txt ( ) — 7792KB
• itp-20240630.xsd (EX-101.SCH) — 85KB
• itp-20240630_cal.xml (EX-101.CAL) — 68KB
• itp-20240630_def.xml (EX-101.DEF) — 336KB
• itp-20240630_lab.xml (EX-101.LAB) — 628KB
• itp-20240630_pre.xml (EX-101.PRE) — 337KB
• ea0210873-10q_ittech_htm.xml (XML) — 916KB

- FINANCIAL INFORMATION

Part I. - FINANCIAL INFORMATION 1 Item 1.

Financial Statements

Financial Statements 1 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 29 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 48 Item 4.

Controls and Procedures

Controls and Procedures 48

- OTHER INFORMATION

Part II. - OTHER INFORMATION 49 Item 1.

Legal Proceedings

Legal Proceedings 49 Item 1A.

Risk Factors

Risk Factors 49 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 49 Item 3. Defaults Upon Senior Securities 49 Item 4. Mine Safety Disclosures 49 Item 5. Other Information 50 Item 6. Exhibits 50

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements IT TECH PACKAGING, INC. CONDENSED CONSOLIDATED BALANCE SHEETS AS OF JUNE 30, 2024 AND DECEMBER 31, 2023 (unaudited) June 30, December 31, 2024 2023 ASSETS Current Assets Cash and bank balances $ 5,144,414 $ 3,918,938 Restricted cash 899,508 472,983 Accounts receivable (net of allowance for doubtful accounts of $ 61,000 and $ 11,745 as of June 30, 2024 and December 31, 2023, respectively) 2,638,219 575,526 Inventories 5,282,420 3,555,235 Prepayments and other current assets 18,246,164 18,981,290 Due from related parties 1,219,553 853,929 Total current assets 33,430,278 28,357,901 Operating lease right-of-use assets, net 476,771 528,648 Property, plant, and equipment, net 155,624,752 163,974,022 Value-added tax recoverable 1,830,425 1,883,078 Deferred tax asset non-current - - Total Assets $ 191,362,226 $ 194,743,649 LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities Short-term bank loans $ 841,893 $ 423,567 Current portion of long-term loans 6,817,927 6,874,497 Lease liability 103,568 100,484 Accounts payable - 4,991 Advance from customers 73,386 136,167 Notes payable 429,451 - Due to related parties 731,486 728,869 Accrued payroll and employee benefits 369,565 237,842 Other payables and accrued liabilities 13,135,687 12,912,517 Income taxes payable 415,635 - Total current liabilities 22,918,598 21,418,934 Long-term loans 4,490,094 4,503,932 Lease liability - non-current 498,718 483,866 Derivative liability 5 54 Total liabilities (including amounts of the consolidated VIE without recourse to the Company of $ 21,006,676 and $ 20,084,995 as of June 30, 2024 and December 31, 2023, respectively) 27,907,415 26,406,786 Commitments and Contingencies Stockholders' Equity Common stock, 50,000,000 shares authorized, $ 0.001 par value per share, 10,065,920 shares issued and outstanding as of June 30, 2024 and Dec

financial statements

financial statements. 1 IT TECH PACKAGING, INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2024 AND 2023 (Unaudited) Three Months Ended Six Months Ended June 30, June 30, 2024 2023 2024 2023 Revenues $ 26,249,788 $ 30,019,914 $ 33,113,629 $ 49,810,791 Cost of sales ( 22,984,488 ) ( 28,840,056 ) ( 29,449,216 ) ( 48,907,932 ) Gross Profit 3,265,300 1,179,858 3,664,413 902,859 Selling, general and administrative expenses ( 2,717,548 ) ( 1,323,405 ) ( 6,618,331 ) ( 3,818,767 ) Loss on impairment of assets - ( 375,136 ) - ( 375,136 ) Income (Loss) from Operations 547,752 ( 518,683 ) ( 2,953,918 ) ( 3,291,044 ) Other Income (Expense): Interest income 2,807 53,637 4,990 189,905 Interest expense ( 211,551 ) ( 270,681 ) ( 421,841 ) ( 519,850 ) Gain (Loss) on derivative liability 15 ( 166,506 ) 49 ( 14,409 ) Income (Loss) before Income Taxes 339,023 ( 902,233 ) ( 3,370,720 ) ( 3,635,398 ) Provision for Income Taxes ( 416,770 ) ( 351,260 ) ( 453,563 ) ( 351,260 ) Net Loss ( 77,747 ) ( 1,253,493 ) ( 3,824,283 ) ( 3,986,658 ) Other Comprehensive Loss Foreign currency translation adjustment ( 756,150 ) ( 9,063,695 ) ( 1,057,769 ) ( 6,560,939 ) Total Comprehensive Loss $ ( 833,897 ) $ ( 10,317,188 ) $ ( 4,882,052 ) $ ( 10,547,597 ) Losses Per Share: Basic and Diluted Losses per Share $ ( 0.008 ) $ ( 0.12 ) $ ( 0.38 ) $ ( 0.40 ) Outstanding – Basic and Diluted 10,065,920 10,065,920 10,065,920 10,065,920 See accompanying notes to condensed consolidated financial statements. 2 IT TECH PACKAGING, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE SIX MONTHS ENDED JUNE 30, 2024 AND 2023 (Unaudited) Six Months Ended June 30, 2024 2023 Cash Flows from Operating Activities: Net income $ ( 3,824,283 ) $ ( 3,986,658 ) Adjustments to reconcile net income to net cash pro

financial statements

financial statements. 3 IT TECH PACKAGING, INC. CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY FOR THE SIX MONTHS ENDED JUNE 30, 2024 AND 2023 (Unaudited) Accumulated Additional Statutory Other Common Stock Paid-in Earnings Comprehensive Retained Shares Amount Capital Reserve Income (loss) Earnings Total Balance at December 31, 2022 10,065,920 $ 10,066 $ 89,172,771 $ 6,080,574 $ ( 7,514,540 ) $ 93,575,021 $ 181,323,892 Foreign currency translation adjustment ( 6,560,939 ) ( 6,560,939 ) Net loss ( 3,986,658 ) ( 3,986,658 ) Balance at June 30, 2023 10,065,920 $ 10,066 $ 89,172,771 $ 6,080,574 $ ( 14,075,479 ) $ 89,588,363 $ 170,776,295 Balance at December 31, 2023 10,065,920 $ 10,066 $ 89,172,771 $ 6,080,574 $ ( 10,555,534 ) $ 83,628,986 $ 168,336,863 Foreign currency translation adjustment ( 1,057,769 ) ( 1,057,769 ) Net loss ( 3,824,283 ) ( 3,824,283 ) Balance at June 30, 2024 10,065,920 $ 10,066 $ 89,172,771 $ 6,080,574 $ ( 11,613,303 ) $ 79,804,703 $ 163,454,811 See accompanying notes to condensed consolidated

financial statements

financial statements. 4 IT TECH PACKAGING, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (1) Organization and Business Background IT Tech Packaging, Inc. (the "Company") was incorporated in the State of Nevada on December 9, 2005, under the name "Carlateral, Inc." Through the steps described immediately below, we became the holding company for Hebei Baoding Dongfang Paper Milling Company Limited ("Dongfang Paper"), a producer and distributor of paper products in China, on October 29, 2007. Effective on August 1, 2018, we changed our corporate name to IT Tech Packaging, Inc.. The name change was effected through a parent/subsidiary short-form merger of IT Tech Packaging, Inc., our wholly-owned Nevada subsidiary formed solely for the purpose of the name change, with and into us. We were the surviving entity. In connection with the name change, our common stock began being traded under a new NYSE symbol, "ITP," and a new CUSIP number, 46527C100, at such time. On June 9, 2022, the Board of Directors of the Company approved a reverse stock split of the Company's issued and outstanding shares of common stock, par value $ 0.001 per share (the "Common Stock"), at a ratio of 1-for-10 (the "Reverse Stock Split"). The Reverse Stock Split become effective on July 7, 2022 (the "Effective Date"), and the shares began trading on the split-adjusted basis on the NYSE American under the Company's existing trading symbol "ITP" at market open on July 8, 2022. The new CUSIP number following the Reverse Stock Split is 46527C 209. All references made to share or per share amounts in the accompanying consolidated financial statements and applicable disclosures have been retroactively adjusted to reflect the effects of the Reverse Stock Split. On October 29, 2007, pursuant to an agreement and plan of merger (the "Merger Agreement"), the Company acquired DongfangZhiye Holding Limited ("Dongfang Holding"), a corporation formed on November 13, 2006 under th

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