Cheetah Net Supply Chain Service Inc. (CTNT) - 10-K Summary
Business Context and Reporting Period
Reporting Period: Fiscal year ended December 31, 2025.
Business Transformation: The Company has completed a strategic pivot from parallel-import vehicle sales to logistics and warehousing services. On March 3, 2025, the Board formally discontinued the vehicle business, which had seen a 95.7% revenue decline in 2024. The Company now operates as a single segment focused on freight forwarding, cargo storage, and labor services via subsidiaries Edward Transit Express Group Inc. (acquired Feb 2024) and TW & EW Services Inc. (acquired Dec 2024).
Corporate Actions: The Company reincorporated from North Carolina to Delaware in February 2026. A 1-for-16 reverse stock split was effectuated in October 2024. In February 2026, the Company closed a private placement raising approximately $40.14 million.
Key Financial Metrics (Year Ended Dec 31, 2025)
| Metric | 2025 | 2024 |
|---|---|---|
| Revenue (Continuing Ops) | $1,288,536 | $455,805 |
| Gross Profit | $166,775 | $178,512 |
| Net Loss (Continuing Ops) | $(3,649,703) | $(3,232,194) |
| Net Loss (Total) | $(3,649,703) | $(5,188,852) |
| Cash & Equivalents | $233,217 | $1,650,962 |
| Working Capital | $7.7 million | $10.2 million |
| Loan Receivables | $7.4 million | $6.1 million |
Note: 2024 Total Net Loss includes a $(1.96) million loss from discontinued operations (vehicle sales). 2025 discontinued operations were zero.
Material Changes vs. Prior Period
- Revenue Growth: Continuing operations revenue increased 182.7% to $1.29 million, driven by the full-year contribution of TWEW (labor services) and partial-year Edward (freight forwarding). However, revenue from Edward decreased 32.2% due to trade war impacts.
- Impairment Charges: The Company recorded $731,307 in impairment losses in 2025 (none in 2024) related to goodwill and intangible assets from the Edward acquisition, reflecting revised cash flow projections.
- Discontinued Operations: The parallel-import vehicle business, which generated $1.6 million in revenue in 2024, was fully exited. A $1.6 million credit loss was recorded in 2024 for uncollectible receivables from this segment.
- Interest Income: Interest income surged 188.4% to $924,224, primarily from short-term loans made to third parties using proceeds from 2024 capital raises.
Guidance, Outlook, and Risks
Outlook: Management expects to fund operations for the next 12 months via operating cash flow and the recent $40.14 million capital infusion. The Company is focused on scaling logistics services between the U.S. and PRC.
Key Risks:
- Geopolitical/Tariffs: Operations are heavily dependent on U.S.-PRC trade relations. Escalating tariffs or trade restrictions could materially reduce demand.
- Customer Concentration: The logistics business relies on a limited customer base. In 2024, two customers accounted for 100% of vehicle revenue; concentration risks persist in the new logistics segment.
- Internal Controls: Management identified material weaknesses in internal controls over financial reporting as of Dec 31, 2025, citing inadequate segregation of duties in newly acquired entities and lack of formal policies.
- Liquidity: While working capital is positive, the Company has historically relied on financing activities. Cash on hand is low ($0.23M), though significant loan receivables ($7.4M) are expected to mature.
Investor Verification Checklist
- Loan Receivable Collectability: Verify the status of the $7.4 million in loans to third parties (Hongkong Sanyou Petroleum and Asia Finance Investment), which constitute a major portion of current assets.
- Impairment Methodology: Review the assumptions used in the DCF model that led to the $731k impairment of Edward's goodwill and intangibles.
- Internal Control Remediation: Assess the progress of remediation plans for the identified material weaknesses in internal controls.
- Trade Policy Impact: Monitor the impact of U.S.-China tariff policies on the volume of freight and labor services provided.
- Capital Raise Utilization: Track the deployment of the $40.14 million raised in February 2026 to ensure it supports the stated logistics expansion strategy.