Wetouch Technology Inc. Files Q1 2024 10-Q
Ticker: WETH · Form: 10-Q · Filed: Jun 14, 2024 · CIK: 1826660
Sentiment: neutral
Topics: 10-Q, quarterly-report, company-filing
TL;DR
**Wetouch Tech Q1 2024 10-Q filed. Financials & ops update.**
AI Summary
Wetouch Technology Inc. filed its 10-Q for the quarterly period ended March 31, 2024. The company, incorporated in Nevada with principal executive offices in Meishan, Sichuan, China, is involved in the computer peripheral equipment sector. The filing details its financial performance and operational status for the specified quarter.
Why It Matters
This filing provides investors with an update on Wetouch Technology Inc.'s financial health and operational performance for the first quarter of 2024, crucial for investment decisions.
Risk Assessment
Risk Level: medium — The company operates in the competitive computer peripheral equipment sector and its financial details are crucial for assessing its stability and growth prospects.
Key Players & Entities
- Wetouch Technology Inc. (company) — Registrant
- March 31, 2024 (date) — Quarterly period end date
- 001-41957 (other) — Commission file number
- Nevada (other) — State of incorporation
- 20-4080330 (other) — I.R.S. Employer Identification No.
- Meishan, Sichuan, China (location) — Address of principal executive offices
FAQ
What is the primary business of Wetouch Technology Inc.?
Wetouch Technology Inc. is involved in the COMPUTER PERIPHERAL EQUIPMENT, NEC sector, as indicated by its Standard Industrial Classification code [3577].
When is the quarterly period this 10-Q report covers?
This 10-Q report covers the quarterly period ended March 31, 2024.
What is Wetouch Technology Inc.'s state of incorporation?
Wetouch Technology Inc. is incorporated in Nevada.
What is the commission file number for Wetouch Technology Inc.?
The commission file number for Wetouch Technology Inc. is 001-41957.
Where are Wetouch Technology Inc.'s principal executive offices located?
Wetouch Technology Inc.'s principal executive offices are located at No. 29, Third Main Avenue, Shigao Town, Renshou County, Meishan, Sichuan, China, 620500.
Filing Stats: 4,399 words · 18 min read · ~15 pages · Grade level 16.3 · Accepted 2024-06-14 17:15:46
Key Financial Figures
- $0.001 — ange on which registered Common Stock, $0.001 par value per share WETH Nasdaq Stock M
Filing Documents
- ea0206514-10q_wetouch.htm (10-Q) — 707KB
- ea020651401ex31-1_wetouch.htm (EX-31.1) — 10KB
- ea020651401ex31-2_wetouch.htm (EX-31.2) — 10KB
- ea020651401ex32-1_wetouch.htm (EX-32.1) — 5KB
- ea020651401ex32-2_wetouch.htm (EX-32.2) — 5KB
- image_001.jpg (GRAPHIC) — 46KB
- 0001213900-24-052988.txt ( ) — 5082KB
- weth-20240331.xsd (EX-101.SCH) — 55KB
- weth-20240331_cal.xml (EX-101.CAL) — 36KB
- weth-20240331_def.xml (EX-101.DEF) — 249KB
- weth-20240331_lab.xml (EX-101.LAB) — 442KB
- weth-20240331_pre.xml (EX-101.PRE) — 241KB
- ea0206514-10q_wetouch_htm.xml (XML) — 458KB
Financial Statements
Financial Statements 1 Condensed Consolidated Balance Sheets as of March 31, 2024 and December 31, 2023 (Unaudited) F-1 Condensed Consolidated Statements of Income and Comprehensive Loss for the Three Months Ended March 31 2024 and 2023 (Unaudited) F-2 Condensed Consolidated Statements of Changes in Stockholders' Equity for the Three Months Ended March 31, 2024 and 2023 (Unaudited) F-3 Condensed Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2024 and 2023 (Unaudited) F-4 Notes to Condensed Consolidated Financial Statements F-5 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 2 Item 3.
Quantitative and Qualitative Disclosures About Market Risk
Quantitative and Qualitative Disclosures About Market Risk 7 Item 4.
Controls and Procedures
Controls and Procedures 7 PART II OTHER INFORMATION 9 Item 1.
Legal Proceedings
Legal Proceedings 9 Item 1A.
Risk Factors
Risk Factors 9 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 11 Item 3. Defaults Upon Senior Securities 11 Item 4. Mine Safety Disclosures 11 Item 5. Other Information 11 Item 6. Exhibits 12
Signatures
Signatures 13 i CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS This Quarterly Report on Form 10-Q (the "Quarterly Report") contains "forward-looking statements" within the meaning of Section 27A of the Securities Act, Section 21E of the Exchange Act, and the Private Securities Litigation Reform Act of 1995. Forward-looking "anticipate," "intend," "plan," "believe," "estimate," "predict," "potential," "might," "could," "would," "should" or other words indicating future results, though not all forward-looking statements necessarily contain these identifying words. All without limitation, statements about our future business operations and results, our strategy and competition. These statements represent our current expectations or beliefs concerning various future events and involve numerous risks and uncertainties that could cause actual results to differ materially from expectations, including, but not limited to: Our reliance on our top customers is significant. Failure to attract new customers or retain existing ones cost-effectively could materially and adversely impact our business, financial condition, and results of operations. We hold a substantial amount of accounts receivable, which may become uncollectible. Dismissing BF Borgers may cause significant expenses or delays in financings or SEC filings, affecting our stock price and market access. You are unlikely to collect judgments or exercise remedies against BF Borgers for their work as our auditor. We face fines and penalties from the Chinese government for not completing required filings. Our capacity to uphold the quality and safety standards of our products. Our ability to compete effectively within the touchscreen display industry. Without substantial additional financi
Financial Statements
Item 1. Financial Statements WETOUCH TECHNOLOGY INC. AND ITS SUBSIDIARIES INDEX TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS Condensed Consolidated Balance Sheets at March 31, 2024 and December 31, 2023 (Unaudited) F-1 Condensed Consolidated (Unaudited) F-2 Condensed Consolidated (Unaudited) F-3 Condensed Consolidated F-4 Notes to Condensed Consolidated Financial Statements F-5 - F-21 1 WETOUCH TECHNOLOGY INC. AND ITS SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) March 31, 2024 December 31, 2023 ASSETS CURRENT ASSETS Cash $ 94,796,450 $ 98,040,554 Accounts receivable 10,937,840 7,455,252 Inventories 184,743 222,102 Prepaid expenses and other current assets 4,116,860 1,063,627 TOTAL CURRENT ASSETS 110,035,893 106,781,535 Long term prepaid expenses 357,390 - Property, plant and equipment, net 12,753,915 12,859,863 TOTAL ASSETS $ 123,147,198 $ 119,641,398 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES Accounts payable $ 566,171 $ 640,795 Loan from a third party 385,694 469,591 Income tax payable 658,931 - Accrued expenses and other current liabilities 626,611 3,992,905 Convertible promissory notes payable - 1,239,126 TOTAL CURRENT LIABILITIES 2,237,407 6,342,417 Common stock purchase warrants liability 370,550 378,371 TOTAL LIABILITIES $ 2,607,957 $ 6,720,788 COMMITMENTS AND CONTINGENCIES (Note 12) STOCKHOLDERS' EQUITY Common stock, $ 0.001 par value, 15,000,000 shares authorized, 11,931,534 and 9,732,948 issued and outstanding as of March 31, 2024 and December 31, 2023, respectively* $ 11,932 $ 9,733 Additional paid in capital* 52,501,680 43,514,125 St