10-Q: Jingbo Technology Reports Increased Revenue but Net Loss Widens in Q3 2025

Jingbo Technology, Inc. reports an increase in revenue for the three and nine months ended November 30, 2024, but also a widening net loss due to various factors including the loss on disposal of subsidiaries.

Summary

• Jingbo Technology, Inc. reported its financial results for the third quarter of fiscal year 2025, ending November 30, 2024.
• The company's net revenues increased to $784,206 for the quarter, compared to $305,559 in the same period of the previous year.
• For the nine months ended November 30, 2024, revenue increased to $1,488,982 from $1,110,231 in the prior year.
• However, the company experienced a gross loss of $57,233 for the quarter, compared to a gross loss of $243,890 in the same quarter of the previous year.
• The net loss for the three months ended November 30, 2024, was $726,432, while the net loss for the nine months ended November 30, 2024, was $6,203,946.
• This compares to a net loss of $1,352,372 for the three months ended November 30, 2023, and $4,649,913 for the nine months ended November 30, 2023.
• The company's financial statements have been prepared assuming that it will continue as a going concern, but there is substantial doubt about its ability to do so.
• As of November 30, 2024, the company had a total deficit of $21,904,107 and net cash used in operating activities of $1,207,051.
• The company's continuation as a going concern is dependent on long-term loans and obtaining additional financing.

Sentiment

Score: 4

Explanation: The document presents a mixed picture. While revenue increased, the net loss widened and there are concerns about the company's ability to continue as a going concern. The sentiment is therefore slightly negative.

Positives

• Revenue increased for both the three and nine months ended November 30, 2024, indicating growth in the company's operations.
• The gross loss decreased for the three months ended November 30, 2024, compared to the same period in the previous year.
• Selling and marketing expenses decreased for the three months ended November 30, 2024, compared to the same period in the previous year.
• General and administrative expenses decreased for the three months ended November 30, 2024, compared to the same period in the previous year.

Negatives

• The company experienced a net loss for both the three and nine months ended November 30, 2024.
• The company's auditors have raised substantial doubt about its ability to continue as a going concern.
• The company has a significant working capital deficit.
• The company is dependent on related party loans to finance its operations.
• The company's disclosure controls and procedures were not effective as of the end of the period covered by the report.

Risks

• The company's ability to continue as a going concern is uncertain.
• The company is subject to economic and political risks associated with operating in the PRC.
• The company is subject to interest rate risk when long term loans become due and require refinancing.
• The company's operations are subject to special considerations and significant risks not typically associated with companies in North America and Western Europe.
• The company's results may be adversely affected by changes in the political and social conditions in the PRC, and by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion, remittances abroad, and rates and methods of taxation, among other things.

Future Outlook

The company's future performance is dependent on long term loans related to Shaoxing Keqiao Zhuyi Technology Co. and the director (Guowei Zhang) to meet obligations as they become due and to obtain additional equity or alternative financing required to fund operations until sufficient sources of recurring revenues can be generated.

Industry Context

The company operates in the smart parking industry, which is growing due to increasing urbanization and the need for efficient parking solutions. The company faces competition from other players in the industry, but it is focused on providing innovative solutions and expanding its market share.

Comparison to Industry Standards

• It is difficult to provide a detailed comparison to industry standards without specific information on comparable companies and projects.
• However, the smart parking industry is generally characterized by high growth potential, driven by increasing urbanization and the need for efficient parking solutions.
• Key players in the industry include companies like ParkMobile, Passport, and INRIX.
• These companies offer a range of services, including mobile parking payments, parking management software, and data analytics.
• Jingbo Technology's financial performance should be assessed in the context of these industry trends and the performance of its competitors.

Related Party Transactions

• The Company had the following balances due to and due from related parties: At November 30, 2024 and February 29, 2024, the Company owned funds from the following related parties: Schedule of Related Party Transactions February 29, Received Exchange Rate November 30, 2024 Provided Repayment Translation 2024 Intellegence Triumph Holdings Limited $5,000 $ 5,000 Virtue Victory Holdings Limited 5,200 5,200 Strength Union Holdings Limited 5,800 5,800 Hongwei Li 94,173 2,086 (96,004) 108 363 Total amounts due from related parties $110,173 $2,086 (96,004) 108 16,363 At November 30, 2024 and February 29, 2024, the Company owed funds to the following related parties: February 29, Exchange Rate November 30, 2024 Borrowed Repaid Translation 2024 Guowei Zhang $1,629,089 $379,600 (2,965) 2,005,724 Xiujuan Chen 347,333 718,577 (7,397) 1,058,513 Chuchu Zhang 27,787 (171) 27,616 Shaoxing Keqiao Zhuyi Technology Co., Ltd 21,955,735 (263,927) (133,278) 21,558,530 Total amounts due to related parties $23,959,944 $1,098,177 (263,927) (143,811) 24,650,383 Advances from Guowei Zhang were unsecured, non-interest bearing and due on demand.

Stakeholder Impact

• Shareholders face increased risk due to the company's financial difficulties and going concern uncertainty.
• Employees may be affected by potential cost-cutting measures or restructuring.
• Customers may be impacted by the company's ability to provide services and support.
• Suppliers and creditors face increased risk of non-payment.
• The company's financial difficulties could negatively impact the local economy and community.

Next Steps

• The company needs to secure long-term loans and/or additional financing to continue its operations.
• The company needs to improve its internal controls over financial reporting.
• The company needs to address the concerns raised by its auditors about its ability to continue as a going concern.

Key Dates