Cheetah Net's Q3 Loss Narrows Amid Revenue Surge, Cash Drains

Ticker: CTNT · Form: 10-Q · Filed: Nov 7, 2025 · CIK: 1951667

Sentiment: bearish

Topics: Logistics, Supply Chain, Net Loss, Cash Flow, Impairment, Discontinued Operations, Small Cap

Related Tickers: CTNT

TL;DR

CTNT's revenue is up, but they're bleeding cash and taking big impairment hits, making this a risky bet on a turnaround.

AI Summary

Cheetah Net Supply Chain Service Inc. (CTNT) reported a net loss of $2,581,087 for the nine months ended September 30, 2025, a decrease from the $3,037,102 net loss in the prior year period. Revenue significantly increased to $1,195,860 for the nine months ended September 30, 2025, up from $231,605 in the same period of 2024, representing a 416% increase. Gross profit also rose to $135,334 from $112,168. However, operating expenses surged to $3,441,110 from $2,997,116, primarily due to a $731,307 impairment loss on goodwill and intangible assets in 2025. The company discontinued its parallel-import vehicle dealership business in March 2025, which previously contributed significantly to revenue but faced severe declines, with sales dropping 95.7% from $38.3 million in 2023 to $1.6 million in 2024. Cash and cash equivalents plummeted from $1,650,962 at December 31, 2024, to $153,692 at September 30, 2025, largely due to $3,445,150 in loans made to third parties. Total assets decreased from $15,379,454 to $12,796,302 over the same period.

Why It Matters

For investors, CTNT's significant revenue growth in continuing operations is a positive signal, but the substantial cash burn and impairment losses raise red flags about asset quality and liquidity. The strategic pivot away from the declining parallel-import vehicle business, which saw a 95.7% revenue drop in 2024, is crucial for the company's long-term viability, but the success of its new logistics and warehousing focus (Edward Transit Express Group Inc. and TW & EW Services Inc.) is yet to be fully proven. Employees in the discontinued vehicle segment have likely been impacted, while those in the logistics sector may see increased stability. Customers of the logistics services could benefit from strengthened offerings. Competitively, CTNT is attempting to carve out a niche in a highly competitive logistics market, moving away from a segment plagued by macroeconomic headwinds and shifting consumer preferences.

Risk Assessment

Risk Level: high — The company's cash and cash equivalents decreased by 90.7% from $1,650,962 at December 31, 2024, to $153,692 at September 30, 2025, indicating severe liquidity issues. A significant impairment loss of $731,307 on goodwill and intangible assets was recorded for the nine months ended September 30, 2025, suggesting a reevaluation of asset values and potential overpayment in past acquisitions. Furthermore, the company made $3,445,150 in loans to third parties, which significantly contributed to the cash drain.

Analyst Insight

Investors should exercise extreme caution and thoroughly scrutinize the company's cash flow statement, particularly the substantial loans made to third parties. Await further clarity on the profitability and cash generation of the new logistics and warehousing segments before considering any investment, as current liquidity is a major concern.

Financial Highlights

debt To Equity
0.26
revenue
$1,195,860
operating Margin
N/A
total Assets
$12,796,302
total Debt
$2,657,001
net Income
-$2,581,087
eps
N/A
gross Margin
11.3%
cash Position
$153,692
revenue Growth
+416%

Revenue Breakdown

SegmentRevenueGrowth
Overall$1,195,860+416%
Parallel-import vehicle dealership$1,600,000 (2024)-95.7%

Key Numbers

Key Players & Entities

FAQ

What were Cheetah Net Supply Chain Service Inc.'s revenues for the nine months ended September 30, 2025?

Cheetah Net Supply Chain Service Inc.'s revenues for the nine months ended September 30, 2025, were $1,195,860, a significant increase from $231,605 in the same period of 2024.

What was the net loss for CTNT for the nine months ended September 30, 2025?

The net loss for CTNT for the nine months ended September 30, 2025, was $2,581,087, which is an improvement compared to the $3,037,102 net loss reported for the same period in 2024.

Why did Cheetah Net Supply Chain Service Inc. discontinue its parallel-import vehicle business?

Cheetah Net Supply Chain Service Inc. discontinued its parallel-import vehicle business due to a 95.7% drop in revenue from $38.3 million in 2023 to $1.6 million in 2024, caused by the COVID-19 pandemic, declining customer demand, price competition, and a shift to domestic EVs.

How much cash and cash equivalents did CTNT have as of September 30, 2025?

As of September 30, 2025, CTNT had $153,692 in cash and cash equivalents, a substantial decrease from $1,650,962 at December 31, 2024.

What was the impact of impairment losses on CTNT's financial results?

CTNT recorded an impairment loss expense of $731,307 on goodwill and intangible assets for the nine months ended September 30, 2025, contributing to the overall operating expenses.

What new businesses has Cheetah Net Supply Chain Service Inc. acquired?

Cheetah Net Supply Chain Service Inc. acquired Edward Transit Express Group Inc. in January 2024 for logistics and warehousing, and TW & EW Services Inc. in December 2024 for logistics and labor services, to strengthen its position in the logistics sector.

What is the current number of outstanding Class A common stock shares for CTNT?

As of November 6, 2025, there were 2,727,712 shares of Class A common stock outstanding for CTNT.

How did loans to third parties affect CTNT's cash flow?

Loans made to third parties amounted to $3,445,150 for the nine months ended September 30, 2025, significantly contributing to the net cash used in investing activities and the overall decrease in cash.

What was the total stockholders' equity for Cheetah Net Supply Chain Service Inc. as of September 30, 2025?

The total stockholders' equity for Cheetah Net Supply Chain Service Inc. as of September 30, 2025, was $10,139,301, down from $12,617,672 at December 31, 2024.

What is the primary business focus of Cheetah Net Supply Chain Service Inc. after discontinuing vehicle sales?

After discontinuing its parallel-import vehicle sales, Cheetah Net Supply Chain Service Inc.'s primary business focus is on logistics and warehousing services, as evidenced by its acquisitions of Edward Transit Express Group Inc. and TW & EW Services Inc.

Risk Factors

Industry Context

Cheetah Net operates in the supply chain and logistics sector, which is highly competitive and sensitive to economic fluctuations. The industry is characterized by increasing demand for efficiency, technological integration, and sustainability. Companies face pressure to optimize networks, manage inventory effectively, and adapt to evolving e-commerce trends. Recent disruptions have highlighted the importance of resilient and agile supply chains.

Regulatory Implications

Companies in the supply chain sector are subject to various regulations concerning transportation, trade, environmental standards, and data privacy. Changes in trade policies, tariffs, or international agreements can significantly impact logistics costs and operations. Compliance with evolving environmental regulations and labor laws is also crucial for maintaining operational integrity and avoiding penalties.

What Investors Should Do

  1. Monitor cash burn rate and loan repayment schedules.
  2. Analyze the strategy behind the revenue growth and future sustainability.
  3. Assess the impact of impairment losses on future valuations.
  4. Evaluate the company's path to profitability.

Key Dates

Glossary

Impairment loss on goodwill and intangible assets
A charge taken when the carrying value of goodwill or intangible assets on the balance sheet is deemed to be higher than their recoverable amount, indicating a permanent reduction in value. (A significant expense ($731,307) impacting the current period's net loss, suggesting a re-evaluation of asset values.)
Accumulated deficit
The cumulative net losses of a company since its inception that have not been offset by net income. (Indicates the company has historically operated at a loss, with the deficit increasing to $7,261,698 as of September 30, 2025.)
Loan receivable
An asset representing money lent by the company to a third party that is expected to be repaid. (A substantial asset ($8,303,111 as of Sep 30, 2025) and a primary driver of cash outflow through lending activities.)
Discontinued operations
Assets and liabilities related to a business segment that the company has decided to sell or dispose of, reported separately on the financial statements. (The parallel-import vehicle dealership was a discontinued operation, with its assets and liabilities removed from the current period's ongoing operations.)

Year-Over-Year Comparison

Compared to the prior year period, Cheetah Net Supply Chain Service Inc. has seen a dramatic increase in revenue, up 416% to $1,195,860 for the nine months ended September 30, 2025. However, this top-line growth has not translated into profitability, with the net loss widening slightly to $2,581,087. Operating expenses have surged, notably due to a significant impairment loss of $731,307 on goodwill and intangibles. The company's cash position has deteriorated severely, falling by 90.7% to $153,692, largely attributed to substantial loans made to third parties. Total assets and stockholders' equity have also declined, reflecting the ongoing financial challenges.

Filing Stats: 4,527 words · 18 min read · ~15 pages · Grade level 15.6 · Accepted 2025-11-07 16:09:43

Key Financial Figures

Filing Documents

Financial Statements

Financial Statements 2 Condensed Consolidated Balance Sheets as of September 30, 2025 (Unaudited) and December 31, 2024 2 Condensed Consolidated Statements of Operations for the Three and Nine Months Ended September 30, 2025 and 2024 (Unaudited) 3 Condensed Consolidated Statements of Changes in Stockholders' Equity for the Three and Nine Months Ended September 30, 2025 and 2024 (Unaudited) 4 Condensed Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2025 and 2024 (Unaudited) 5 Notes to Unaudited Condensed Consolidated Financial Statements 6 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 34 Item 3

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 46 Item 4

Controls and Procedures

Controls and Procedures 46 Part II Other Information 47 Item 1

Legal Proceedings

Legal Proceedings 47 Item 1A

Risk Factors

Risk Factors 47 Item 2 Unregistered Sales of Equity Securities and Use of Proceeds 47 Item 3 Defaults Upon Senior Securities 47 Item 4 Mine Safety Disclosures 47 Item 5 Other Information 47 Item 6 Exhibits 48

Signatures

Signatures 49 i Table of Contents CHEETAH NET SUPPLY CHAIN SERVICE INC.

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements CHEETAH NET SUPPLY CHAIN SERVICE INC. UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS September 30, December 31, 2025 2024 (Unaudited) ASSETS CURRENT ASSETS: Cash and cash equivalents $ 153,692 $ 1,650,962 Accounts receivable, net 11,700 47,976 Loan receivable 8,303,111 6,088,295 Other receivables 977,607 370,696 Prepaid expenses and other current assets 289,187 338,642 Current assets of discontinued operations — 2,540,501 TOTAL CURRENT ASSETS 9,735,297 11,037,072 NON-CURRENT ASSETS: Property, plant, and equipment, net 368,749 398,395 Operating lease right-of-use assets 1,400,311 1,836,521 Intangibles, net 816,083 1,063,072 Goodwill 475,862 1,044,394 TOTAL NON-CURRENT ASSETS 3,061,005 4,342,382 TOTAL ASSETS $ 12,796,302 $ 15,379,454 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES: Accounts payable $ 1,669 $ 18,992 Current portion of long-term debt 35,902 34,577 Loan payable from premium finance 131,083 120,461 Tax payable 5,200 — Operating lease liabilities, current 640,688 438,351 Accrued liabilities and other current liabilities 481,981 217,980 Current liabilities of discontinued operations — 52,900 TOTAL CURRENT LIABILITIES 1,296,523 883,261 NON-CURRENT LIABILITIES: Long-term debt, net of current portion 581,836 610,020 Operating lease liabilities, net of current portion 778,642 1,268,501 TOTAL NON-CURRENT LIABILITIES 1,360,478 1,878,521 TOTAL LIABILITIES $ 2,657,001 $ 2,761,782 COMMITMENTS AND CONTINGENCIES — — STOCKHOLDERS' EQUITY Common stock, $ 0.0001 par value, 1,000,000,000 shares authorized; 3,274,587 and 3,218,886 shares issued and outstanding as of September 30, 2025, and December 31, 2024, respectively, including: Class A common stock, $ 0.0001 par value - 891,750,000 shares authorized; 2,727,712 and 2,672,011 shares issued and outstanding as of

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