REVENUE ANALYSIS AND SEGMENT INFORMATION | 15. REVENUE ANALYSIS AND SEGMENT INFORMATION The Company follows ASC 280, Segment Reporting, which requires companies to disclose segment data based on how management makes decision about allocating resources to each segment and evaluating their performances. The Company has three reporting segments. The Company’s chief operating decision maker has been identified as the Chief Executive Officer, who reviews consolidated results when making decisions about allocating resources and assessing performance of the Company. The Company considers itself to be operating within one reportable segment. The Company’s revenue and net income are substantially derived from Commodity trading. Disaggregated information of revenues by business lines are as follows: FY 2023 FY 2022 FY 2021 Amount Percentage Amount Percentage Amount Percentage Commodity trading 68,409 74.1 % 255,586 98.3 % 275,204 94.6 % Cryptocurrency mining 18,898 20.4 % 329 0.1 % 15,427 5.3 % Other 5,109 5.5 % 4,113 1.6 % 159 0.1 % Total 92,416 100.0 % 260,026 100.0 % 290,790 100.0 % The Company’s operations are all based in the PRC, hence, management do not prepare disaggregated information of revenues by geographic locations. Segment Reporting SOS Ltd. (“SOS”) refers to the ultimate parent or the registrant, a Cayman Islands exempt company. China SOS Ltd (“China SOS”) is a Hong Kong corporation. WFOE refers to Qingdao SOS Investment Management Co., Ltd. (“WFOE”), a PRC corporation. VIE refers to Qingdao SOS Industrial Holding Co., Ltd. (“VIE”), a PRC corporation. Subsidiaries outside China include Yong Bao Two Ltd. (“YBT,” a British Virgin Islands company), FWD Ltd. (“FWD,” British Virgin Islands company), SOS Information Technology New York Inc.(“SOSNY,” a New York corporation), FD LLC (“FD,” a Nevada corporation), Future Technology Global Ltd. (“FTHK,” a Hong Kong corporation), Canada XX Exchange Ltd.(“CXXE,” a Canada corporation) and US XX Exchange Ltd. (“USXXE,” a Colorado corporation). Subsidiaries inside China refers to the VIE’s subsidiaries, including SOS Information Technology Co.,Ltd (“SOSIT”), Inner Mongolia SOS Insurance Agency Co., Ltd (“IMSOS”); and directly owned subsidiaries including SOS International Trading Co., Ltd (“SOSINT”), Qingdao SOS Investment LLP (“SOSIL”), Qingdao SOS Digital Technologies Ltd. (“SOSDT”), Common Prosperity Technology Co., Ltd. (“SOSCP”), SOS Ronghe Digital Technology Co., Ltd. (“SOSRD”), Weigou International Trading Co., Ltd (“SOSWI”), Shuyun International Trading Co., Ltd (“SOSSI”), SOS Auto Service Co., Ltd. (“SOSAS”), and Chexiaoer Technology Co., Ltd (“SOSCX”). For the Years Ended December 31, 2023 2022 2021 Reportable segment revenues $ 92,416 $ 260,026 $ 290,790 Revenue, net – Commodity trading 68,456 255,575 268,489 Revenue, net – Others 24,592 5,971 23,018 Eliminations (632 ) (1,520 ) (717 ) Cost of revenues (78,234 ) (270,597 ) (277,879 ) Cost of revenues-Commodity trading (68,983 ) (250,301 ) (264,764 ) Cost of revenues-Others (9,883 ) (20,296 ) (13,114 ) Eliminations 632 - (1 ) Reconciling Items Selling, general and administrative (7,081 ) (189,521 ) (19,064 ) Depreciation and amortization (4,975 ) (7,960 ) (4,007 ) Impairment of intangible assets (970 ) (8,425 ) (925 ) Interest income - 424 - Other expense (978 ) (15,131 ) (9,358 ) Current income tax expense (631 ) (536 ) (3 ) Net loss (6,421 ) (230,212 ) (52,425 ) Note Revenue - net, others refers to revenue generated from cryptocurrency mining and other revenue The following financial information has been prepared to illustrate the consolidated financial position as at December 31, 2022 and 2023 and cash flows and profit or loss and other comprehensive income for the years ended December 31, 2022 and 2023 for (i) SOS Ltd; (ii) China SOS Ltd.; (iii)WFOE; (iv) VIE; (v) Subsidiaries outside China (vi)Subsidiaries inside China. The financial information of SOS Ltd. has been extracted from: SOS Ltd’s audited consolidated statements of financial position as of December 31, 2022 and 2023, and the related consolidated statements of profit or loss and other comprehensive income and cash flows for the years ended December 31, 2021, 2022 and 2023 and the related notes, included elsewhere in this annual report. Condensed consolidated Statements of comprehensive of loss (US$ thousands, except share data and per share data, or otherwise noted) 31-Dec-23 Subsidiaries Subsidiaries SOS Ltd. China SOS Inter- Subsidiaries Subsidiaries SOS Ltd China SOS WFOE VIE Outside Inside Adjustment(a) Ltd WFOE VIE company China China SOS Ltd. US$ US$ US$ US$ US$ US$ US$ US$ US$ US$ US$ US$ US$ US$ REVENUES -net - - - - 21,895 71,153 - - - - (632 ) - - 92,416 COST OF REVENUES - - - 7,225 71,641 - - - - (632 ) - - 78,234 GROSS PROFIT - - - - 14,670 (488 ) - - - - - - - 14,182 OPERATING EXPENSES: General and administrative 4,047 (1,151 ) 68 - 7,457 637 - - - - - - - 11,058 Share-based compensation 7,264 - - - - - - - - - - - 7,264 Selling expense - - - - - 672 - - - - - - - 672 Profit (Loss) on evaluation Total operating expenses 11,311 (1,151 ) 68 - 7,457 1,309 - - - - - - - 18,994 INCOME FROM OPERATIONS OTHER INCOME(EXPENSE): - 67 1 - 205 (1,251 ) - - - - - - - (978 ) Loss on acquisition Other income(expense), net - 67 1 - 205 (1,251 ) - - - - - - - (978 ) Total other (expenses) income, net - 67 1 - 205 (1,251 ) - - - - - - - (978 ) Income from investments INCOME(LOSS) BEFORE INCOME TAXES (11,311 ) 1,218 (67 ) - 7,418 (3,048 ) - - - - - - - (5,790 ) INCOME TAXES 631 631 NET INCOME(LOSS) - CONTINUING OPERATION (11,311 ) 1,218 (67 ) - 7,418 (3,679 ) - - - - - - - (6,421 ) Non-controlling interest - - - - 2,777 (7 ) - - - - - - - 2,770 DISCONTINUED OPERATIONS: Gain from discontinued operations - - - - - - - - - - - - - - Income from disposal of discontinued operations GAIN FROM DISCONTINUED OPERATIONS - - - - - - - - - - - - - - Equity earnings in subs outside China (11,311 ) 1,218 (67 ) - 10,195 - - - - - - - - 35 Equity earnings in subs and VIES inside China - - - - - (3,686 ) - - - - - - - (3,686 ) NET PROFIT(LOSS) (11,311 ) 1,218 (67 ) - 10,195 (3,686 ) - - - - - - - (3,651 ) OTHER COMPREHENSIVE INCOME(LOSS) - - - - - - - - - - - - - - Foreign currency translation adjustment - net of tax - - - - - - - - - - - - - - COMPREHENSIVE INCOME(LOSS) - - - - - - - - - - - - - - 31-Dec-22 SOS Ltd China WFOE VIE Subsidiaries Subsidiaries SOS Ltd. Adjustment(a) China (a) WFOE VIE Adjustment Inter- Subsidiaries Subsidiaries Conso SOS Ltd. US$ US$ US$ US$ US$ US$ US$ US$ US$ US$ US$ US$ US$ US$ US$ REVENUES -net - 212 - - 424 260,911 - - - - (1,521 ) - - 260,026 260,026 COST OF REVENUES - 3,273 - - 14,311 253,013 - - - - - - - 270,597 270,597 GROSS PROFIT - (3,061 ) - - (13,887 ) 7,898 - - - - (1,521 ) - - (10,571 ) (10,571 ) OPERATING EXPENSES: General and administrative 12,623 95,343 (59 ) 64,190 10,128 - - - - (1,521 ) - - 180,704 180,704 Share-based compensation 14,714 - - - - - - - - - - - - 14,714 14,714 Selling expense - - - - - 8,556 - - - - - - - 8,556 8,556 Profit (Loss) on evaluation Total operating expenses 27,337 95,343 (59 ) - 64,190 18,684 - - - - (1,521 ) - - 203,974 203,974 INCOME FROM OPERATIONS OTHER INCOME(EXPENSE): 53 (16,111 ) (59 ) (1,630 ) 2,192 - - - - - - - (15,555 ) (15,555 ) Loss on acquisition Other income(expense),net 53 (16,111 ) (59 ) - (1,630 ) 2,192 - - - - - - - (15,555 ) (15,555 ) Interest expense - - - - 424 - - - - - - - - 424 (424 ) Total other (expenses) income, net - - - - - - - - - - - - - (15,131 ) (15,131 ) Income from investments INCOME(LOSS) BEFORE INCOME TAXES (27,284 ) (114,515 ) - - (79,283 ) (8,594 ) - - - - - - - (229,676 ) (229,676 ) INCOME TAXES - - - - - 536 - - - - - - - 536 536 NET INCOME(LOSS) - CONTINUING OPERATION (27,284 ) (114,515 ) - - (79,283 ) (9,130 ) - - - - - - - (230,212 ) (230,212 ) Non-controlling interest - - - - 1,040 (14 ) - - - - - - - 1,026 1,026 DISCONTINUED OPERATIONS: Gain from discontinued operations 17,000 - - - - (16,189 ) - - - - - - - 811 (261 ) Income from disposal of discontinued operations - - - - - (1,072 ) - - - - - - - (1,072 ) - GAIN FROM DISCONTINUED OPERATIONS - - - - - - - - - - - - - (261 ) (261 ) Equity earnings in subs outside China (10,284 ) (114,515 ) - - (78,243 ) - - - - - - - - - ( 203,043 ) Equity earnings in subs and VIES inside China - - - - - (26,405 ) - - - - - - - - (26,405 ) NET PROFIT(LOSS) (10,284 ) (114,515 ) - - (78,243 ) (26,405 ) - - - - - - - (229,447 ) (229,447 ) OTHER COMPREHENSIVE INCOME(LOSS) - - - - - - - - - - - - - - - Foreign currency translation adjustment - net of tax - - - - - - - - - - - - - - - COMPREHENSIVE INCOME(LOSS) - - - - - - - - - - - - - - - 31-Dec-21 SOS Ltd China WFOE VIE Subsidiaries Subsidiaries SOS Ltd. Adjustment(a) China WFOE Adjustment VIE Adjustment Inter- Subsidiaries Subsidiaries SOS Ltd US$ US$ US$ US$ US$ US$ US$ US$ US$ US$ US$ US$ US$ US$ REVENUES -net - 15,315 - - 718 275,475 - - - - - (718 ) - 290,790 COST OF REVENUES - 2,327 - - 3,728 271,824 - - - - - - 277,879 GROSS PROFIT - 12,988 - - (3,010 ) 3,651 - - - - - (718 ) - 12,911 OPERATING EXPENSES: General and administrative 15,713 10,340 12 - 7,574 877 (12,033 ) - - - - (718 ) - 21,765 Share-based compensation 33,537 - - - - - - - - - - - - 33,537 Selling expense - - - (3 ) - 676 - - - - - - - 673 Total operating expenses 49,250 10,340 12 (3 ) 7,574 1,553 (12,033 ) - - - - (718 ) - 55,975 INCOME FROM OPERATIONS (49,250 ) 2,648 (12 ) 3 (10,584 ) 2,098 12,033 - - - - - - (43,064 ) OTHER INCOME(EXPENSE): Other income (expense),net (5,000 ) - - - - (4,358 ) - - - - - - - (9,358 ) Total other (expenses) income, net (5,000 ) - - - - (4,358 ) - - - - - - - (9,358 ) INCOME (LOSS) BEFORE INCOME TAXES (54,250 ) 2,648 (12 ) 3 (10,584 ) (2,260 ) 12,033 - - - - - - (52,422 ) INCOME TAXES - - - - (3 ) - ) - - - - - - - (3 ) GAIN/(LOSS) FROM DISCONTINUED OPERATIONS - - - - - 3,374 - - - - - - - 3,374 Non-controlling interest - - - - - (200 ) - - - - - - - (200 ) NET PROFIT(LOSS) (54,250 ) 2,648 (12 ) 3 (10,587 ) 914 12,033 - - - - - - (49,251 ) Notes (a) SOS Ltd. Completed a couple rounds of F3 financing. This entry is to offset legal fee against gross proceeds from registered direct offering. (b) This represents an elimination entry to set off inter-company sales from China SOS to FD LLC, which is a service cost to FD LLC. 31-Dec-23 China Subsidiaries Subsidiaries SOS Ltd. China SOS SOS Ltd. SOS WOFE VIE Outside Inside Adjustment Adjustment Adjustment Adjustment Adjustment Adjustment Ltd. WOFE VIE Consolidated US$ US$ US$ US$ US$ US$ US$ US$ US$ US$ US$ US$ US$ US$ US$ US$ ASSETS Current assets: Cash and cash equivalents 19,447 156,811 859 - 54,990 47,070 - - - - - - - - - 279,177 Investment securities - - - - - 307 - - - - - - - - - 307 Accounts receivable, net - - - - 231 578 - - - - - - - - - 809 Other receivables - net 7,203 490 - - 2,270 217,042 - - - - - - (147,035 ) - - 79,970 Amount due from related parties - 900 - - 8,100 30,582 - - - - - - - - - 39,582 Inter-company receivable 128,413 22,213 286,198 - (146,707 ) (325,302 ) 35,185 - - - - - - - - - Inventory - - - - - 32,875 - - - - - - - - - 32,875 Intangible assets - 6,289 - - 15,107 - - - - - - - - - - 21,396 Tax recoverable 16 - - - 1 1,262 - - - - - - - - - 1,279 Total current assets 155,079 186,703 287,057 - (66,008 ) 4,414 35,185 - - - - - (147,035 ) - - 455,395 Non-current assets: Operating lease, right-of-use assets - - - - 377 - - - - - - - - - - 377 Property equipment and software, net - 3,425 - - 24,557 66 - - - - - - - - - 28,048 Goodwill - - - - - 72 - - - - - - - - - 72 Long-term investments - Investment in WFOE - 314,335 (314,335 ) - - - - - - - - - - - - - Investment in China SOS - (64,794 ) - - 64,794 - - - - - - - - - - - Total non-current assets - 252,966 -314,335 - 89,728 138 - - - - - - - - - 28,497 Total assets 155,079 439,669 (27,278 ) - 23,720 4,552 35,185 - - - - - (147,035 ) - - 483,892 LIABILITIES AND EQUITY Current liabilities: Liabilities: Accounts payable - 11,359 - - 24,327 1,054 - - - - - - - - - 36,740 Amount due to related parties 1,015 - - - 19 607 - - - - - - - - - 1,641 Operating lease liability-current - - - - 377 - - - - - - - - - - 377 Advance from customers - - - - - 15,192 - - - - - - - - - 15,192 Tax payable - - - - 2 75 - - - - - - - - - 77 Other payables 241 153,976 - - 7,161 90 - - - - - - (153,976 ) - - 7,492 Total current liabilities 1,256 165,335 - - 31,886 17,018 - - - - - - (153,976 ) - - 61,519 Total non-current liability - - - - - - - - - - - - - - Total liabilities 1,256 165,335 - - 31,886 17,018 - - - - - (153,976 ) - - 61,519 Non-controlling interest - - - - (3,619 ) 5 - - - - - - - - - (3,614 ) Shareholder’s equity Paid up capital 54,301 387,283 - - 70,951 (511,886 ) 16 - - - - - - - - 665 Additional paid-in capital 177,227 - - - - 513,953 39,165 - - - - - - - - 730,345 Statutory Reserve - - - - - 161 - - - - - - - - - 161 Retained earnings (77,705 ) (112,949 ) - - (75,498 ) (10,520 ) - - - - - - - - - (276,672 ) Accumulated other comprehensive income (loss) - - (27,278 ) - - (4,179 ) (3,996 ) - - - - - 6,941 - - (28,512 ) Total Shareholders’ equity 153,823 274,334 (27,278 ) - (4,547 ) (12,471 ) 35,185 - - - - - 6,941 - - 425,987 Total Liabilities and shareholders’ equity 155,079 439,669 -27,278 - 23,720 4,552 35,185 - - - - - -147,035 - - 483,892 31-Dec-22 Inter- Subsidiaries Subsidiaries SOS Ltd. China WOFE VIE Subsidiaries Subsidiaries SOS Ltd. Adjustment(a) China WOFE VIE Adjustment company Outside Inside SOS Ltd. US$ US$ US$ US$ US$ US$ US$ US$ US$ US$ US$ US$ US$ ASSETS Current assets: Cash and cash equivalents 7,193 154,568 883 - 41,049 55,799 - - - - - - - 259,492 Accounts receivable, net - - - - 16 2,416 - - - - - - - 2,432 Other receivables - net (4,741 ) - 11 - (2,100 ) 49,054 - - - - (902 ) - - 55,004 Amount due from related parties 17,000 900 - - 8,100 43,038 - - - - - - - 69,038 Inter-company receivable 151,010 24,989 294,670 - (135,864 ) (334,805 ) - - - - - - - - Inventory - - - - - 46,273 - - - - - - - 46,273 Tax recoverable 16 - - (7 ) 2,534 - - - - - - - 2,543 Intangible assets - 6,289 - - 117 - - - - - - - - 6,406 Total current assets 179,960 186,746 295,564 - (84,489 ) (135,691 ) - - - - (902 ) - - 441,188 Non-current assets: Operating lease, right-of-use assets - - - - 921 - - - - - - - - 921 Property equipment and software, net - 4,462 - - 7,999 92 - - - - - - - 12,553 Goodwill 72 72 Long-term investments (19 ) - - - - 19 - - - - - - - - Investment in subsidiaries outside China - - - - - - - - - - - - - - Investment in WFOE (314,335 ) 314,335 - - - - - - - - - - - - Investment in China SOS (64,794 ) - - - 64,794 - - - - - - - - - Total non-current assets (379,076 ) 318,797 - - 73,714 111 - - - - - - - 13,546 Total assets (199,116 ) 505,543 295,564 - (10,775 ) (135,580 ) - - - - (902 ) - - 454,734 LIABILITIES AND EQUITY Current liabilities: Liabilities: Accounts payable - 11,359 - - 406 1,069 - - - - - - - 12,834 Amount due to related parties 622 -- 1 - 19 1 - - - - - - - 643 Operating lease liability-current - - - - 544 - - - - - - - - 544 Advance from customers - - - - - 20,385 - - - - - - - 20,385 Payroll payable - - - - - 2 - - - - - - - 2 Tax payable - - - - 2 92 - - - - - - - 94 Other payables 241 153,976 - - 6,693 (148,929 ) - - - - (902 ) - - 11,079 Total current liabilities 863 165,335 1 - 7,664 (127,380 ) - - - - (902 ) - - 45,581 Operating lease liability-noncurrent - - - - 377 - - - - - - - - 377 Total non-current liability - - - - 377 - - - - - - - - 377 Total liabilities 863 165,335 1 - 8,041 (127,380 ) - - - - (902 ) - - 45,958 Non-controlling interest - - - - (841 ) 15 - - - - - -- (826 ) Shareholders’ equity Paid up capital (818,741 ) 452,078 295,491 70,950 596 - - - - - - - 374 Additional paid-in capital 191,536 - - - - 7 - - - - 513,945 - 705,488 Statutory Reserve 513,945 - - - - 59 - - - - (513,945 ) 59 Retained earnings (60,680 ) (111,870 ) 73 - (88,925 ) (11,518 ) - - - - - - - (272,920 ) Accumulated other comprehensive income (loss) (26,039 ) - (1 ) - - 2,641 - - - - - - - (23,399 ) Total Shareholders’ equity (199,979 ) 340,208 295,563 - (17,975 ) (8,215 ) - - - - - - - 409,602 Total Liabilities and shareholders’ equity (199,116 ) 505,543 295,564 - (10,775 ) (135,580 ) - - - - (902 ) - - 454,734 31-Dec-21 China Subsidiaries Subsidiaries SOS Ltd. Inter- Subsidiaries SOS Ltd. SOS SOS WOFE VIE Outside Inside Adjustment Adjustment Adjustment Adjustment Adjustment Adjustment company Inside China Consolidated US$ US$ US$ US$ US$ US$ US$ US$ US$ US$ US$ US$ US$ US$ US$ ASSETS Current assets: Cash and cash equivalents 12,301 160,091 4,164 2 101,210 49,358 - - - - - - - - 327,126 Accounts receivable, net - - - - - 19,843 - - - - - - - - 19,843 Other receivables - net 67,962 16,902 - - 345 477 - - - - - - (79,391 ) - 6,295 Amount due from related parties - 900 - - 1,000 30,406 - - - - - - - - 32,306 Inter-company receivable 19,791 (153,855 ) 311,415 (2 ) (19,791 ) (196,737 ) - 39,179 3,578 - - - - (3,578 ) - Inventory - - - - - 60,587 - - - - - - - - 60,587 Intangible assets 14,502 14,502 Advance payments 6,400 97,115 - - 300 55,653 - - - - - - - - 159,468 Tax recoverable - - - - - 6,099 - - - - - - - - 6,099 Assets related to discontinued operation - - - - - 37,281 - - - - - - - - 37,281 Total current assets 120,956 121,153 315,579 - 83,064 62,967 0 39,179 3,578 - - - (79,391 ) (3,578 ) 663,507 Non-current assets: Property equipment and - 9,844 - - 16,373 - - - - - - - - - 26,217 Goodwill - - - - - 72 - - - - - - - - 72 Investment in subsidiaries outside 374,463 - - - - - (374,463 ) - - - - - - Investment in WFOE - 310,205 - - - - (310,205 ) - - - - - - - Investment in China SOS - - - - 64,794 - - - - - (64,794 ) - - - Assets related to discontinued operation - - - - - 5,504 - - - - - - - 5,504 Total non-current assets 374,463 320,049 - - 81,167 5,576 (310,205 ) (374,463 ) - - (64,794 ) - - 31,793 Total assets 495,419 441,202 315,579 - 164,231 68,543 (310,205 ) (335,284 ) 3,578 0 - (64,794 ) (79,391 ) (3,578 ) 695,300 LIABILITIES AND EQUITY Current liabilities: Liabilities: Accounts payable - 11,376 - - - - - - - - - - - - 11,376 Amount due to related parties 15 - 2 - 18 - - - - - - - - - 35 Advance from customers - - - - - 19,309 - - - - - - - - 19,309 Payroll payable - - - - 1 - - - - - - - - 1 Other payables 5,141 (24,896 ) 47 - 5,093 23,464 - - (3,528 ) - - - 5,321 Liabilities related to discontinued operation - - - - - 103,771 - - - - (79,391 ) - 23,771 Total current liabilities 5,156 (13,520 ) 49 - 5,112 145,935 - - (3,528 ) - (79,391 ) - 59,813 Liabilities related to discontinued operation - - - - - 1,918 - - - - - - - - 1,918 Total non-current liability - - - - - 1,918 - - - - - - - - 1,918 Total liabilities 5,156 (13,520 ) 49 - 5,112 147,853 - - (3,528 ) - - (79,391 ) - 61,731 Shareholders ’ equity - - Paid up capital 427,236 452,076 315,546 - 98,760 (94,351 ) (310,205 ) (374,448 ) 7,106 (453,082 ) (64,794 ) (3,578 ) 266 Additional paid-in capital 119,147 - - - - 10 - 39,164 - - 514,065 - - - 672,386 Retained earnings (56,120 ) 2,646 (16 ) - 60,359 14,831 - - - - (65,113 ) - - - (43,413 ) Accumulated other comprehensive - - - - - - - - - - 4,130 - - - 4,130 Non-controlling interest - - - - - 200 - - - - - - - - 200 Total Shareholders’ equity 490,263 454,722 315,531 - 159,119 (79,310 ) (310,205 ) (335,284 ) 7,106 0 - (64,794 ) - (3,578 ) 633,569 Total Liabilities and shareholders’ 495,419 441,202 315,579 - 164,231 68,543 (310,205 ) (335,284 ) 3,578 0 - (64,794 ) (79,391 ) (3,578 ) 695,300 Notes (a) SOS placed private equity from a number of investors, SOSINT received it on behalf of SOS. This entry represents that SOS is to pick it up by increasing paid-up & additional paid-up capital by going through inter-company account; (b) This entry is to eliminate China SOS’s investment in WFOE against WFOE’s paid-up capital, additional paid-up capital and retained earning if any; (c) This entry is to eliminate SOS’s investment in China SOS against China SOS’s paid-up capital, additional paid-up capital and retained earning if any; (d) China SOS received financing net of issuance expenses on behalf of SOS. This entry is to increase SOS’s paid-up capital & additional paid-up capital by going through inter-company account to offset other receivables and other payable; (e) This entry is to re-classify paid-up capital to additional capital by Register of members reconciliation table and re-classify between retained earnings and additional paid-up capital; (f) This entry is to eliminate SOSNY’s investment in China SOS against China SOS’s paid-up capital, additional paid-up capital and retained earning if any; (g) This entry represents an inter-company elimination entry between SOS and SOSNY. 31-Dec-23 SOS Ltd. China WFOE VIE Subsidiaries Outside China Subsidiaries inside Consolidation Consolidation SOS Ltd. US$ US$ US$ US$ US$ US$ US$ US$ US$ CASH FLOWS FROM OPERATING ACTIVITIES Net (loss) (11,311 ) 1,218 (67 ) - 10,195 (3,686 ) - (3,651 ) Net (loss) from discontinued operation - - - - - - - - - Net loss from continuing operation (11,311 ) 1,218 (67 ) - 10,195 (3,686 ) - - (3,651 ) Adjustments to reconcile net income net cash used in operating activities: Depreciation of property, plant and equipment - - - - - 4,975 - - 4,975 Depreciation of ROU - - - - 800 - - - 800 Accretion of finance leases - - - - 32 - - - 32 Share-based compensation 7,264 - - - - - - - 7,264 Allowance for doubtful accounts - accounts receivable - - - - - 451 - - 451 Allowance for doubtful accounts - other receivable 180 - - - 6 42 - - 228 Impairment of cryptocurrencies - - - - 970 - - - 970 Impairment of Mining Equipment - - - - 4,455 - - - 4,455 Inventory impairment - - - - - 194 - - 194 Inventory - - - - (231 ) 13,435 - - 13,204 Changes in operating assets and liabilities Accounts receivable - - - - - 1,172 - - 1,172 Investment securities - - - - - (307 ) - - (307 ) Other receivables (9,042 ) (242,263 ) - - (159,763 ) (206,265 ) 592,139 - (25,194 ) Inter-company account (128,413 ) (22,213 ) (286,198 ) - 144,755 292,069 - - - Amount due from related parties 17,000 - - - - 12,456 - - 29,456 Intangible assets - - - - (15,960 ) - - - (15,960 ) Accrued liabilities - - - (5,193 ) - - (5,193 ) Tax payables - - - 1,247 - - 1,247 Accounts payable - - - - (79 ) (15 ) - - (94 ) Other payables - - - - 1,674 149,019 (155,488 ) - (4,795 ) Amount due to related parties 393 - (1 ) - - 606 - - 998 Lease liability - - - - (544 ) - - - (544 ) Net Cash used in Operating Activities - Continuing Operations (123,929 ) (263,258 ) (286,266 ) - (13,690 ) 260,200 436,651 - 9,708 Net Cash generated from Operating Activities - Discontinued Operations - - - - - 54 - - 54 CASH FLOWS FROM INVESTING ACTIVITIES: - - Purchase of property, equipment and equipment - - - - - - - - Investment in equity - - - - - - - Proceed from disposals of discontinued operations - - - - - - - Net cash (used in) generated from investing activities - - - - - - - - - CASH FLOWS FROM FINANCING ACTIVITIES Proceed from share issuance, net of issuance costs 17,884 - - - - - - - 17,884 Proceed from private equity placement, net of issuance costs - - - - - - - - Repayment of principle portion of lease liabilities - - - - (288 ) - - (288 ) Proceeds from disposal of subsidiaries - - - - - - - - Net cash generated from (used in) financing activities 17,884 - - - (288 ) - - 0 17,596 - EFFECT OF EXCHANGE RATES ON CASH - - - - - (7,619 ) - (7,619 ) Net increase/(decrease), effect of exchange rate changes on cash and cash equivalent (106,045 ) (263,258 ) (286,266 ) - (13,978 ) 252,581 436,651 - 19,685 CASH AND CASH EQUIVALENTTS, beginning of year 7,193 154,568 883 - 41,049 55,799 - 259,492 CASH AND CASH EQUIVALENTTS, end of year 19,447 156,811 859 0 54,990 47,070 - - 279,177 31-Dec-22 SOS Ltd. China WFOE VIE Subsidiaries Subsidiaries Consolidation Consolidation SOS Ltd. US$ US$ US$ US$ US$ US$ US$ US$ US$ CASH FLOWS FROM OPERATING ACTIVITIES Net (loss) (10,284 ) (114,515 ) - - (78,243 ) (26,405 ) - - (229,447 ) Net (loss) from discontinued operation - - - - - (261 ) - - (261 ) Net loss from continuing operation (10,284 ) (114,515 ) - (78,243 ) (26,144 ) - - (229,186 ) Adjustments to reconcile net income net cash used in operating activities: - Depreciation of property, plant and equipment - 3,143 - - 4,783 34 - - 7,960 Depreciation of ROU - - - - 693 - - - 693 Accretion of finance leases - - - - 75 - - - 75 Share-based compensation 14,714 - - - - - - - 14,714 Allowance for doubtful accounts - accounts receivable - - - - - (500 ) - - (500 ) Allowance for doubtful accounts - other receivable 9,422 92,817 - - 12,402 56,201 - - 170,842 Impairment of cryptocurrencies - 8,425 - - - - - - 8,425 Impairment of Mining Equipment - 7,686 - - 14,562 2,795 - - 25,043 Inventory impairment - - - - - 16,786 - - 16,786 Loss on acquisition - - - - - - - - - Income from disposal of discontinued operations - - - - - - - - - Inventory - - - (16 ) (5,251 ) - (5,267 ) Changes in operating assets and liabilities - - - - - - - - - Accounts receivable - - - - - 17,911 - - 17,911 Other receivables 81,100 (39,738 ) - - (90,554 ) (10,891 ) - - (60,083 ) Inter-company account (114,793 ) (22,757 ) (294,669 ) 132,373 299,846 - - - Amount due from related parties (20,830 ) (113,769 ) 212,863 (2 ) (47,708 ) (79,347 ) (4,941 ) - (53,732 ) Intangible assets - (212 ) - - (117 ) - - - (329 ) Accrued liabilities - - - - - 1,076 - - 1,076 Tax payables - - - - - 3,650 - - 3,650 Accounts payable - - - - 407 1,051 - - 1,458 Other payables 100 178,855 78,525 1,600 (253,320 ) - - 5,760 Amount due to related parties - - - - - 607 - - 607 Contract liabilities - - - - - - - - - Lease liability - - - - 921 - - - 921 Net Cash used in Operating Activities - Continuing Operations (40,571 ) (65 ) (3,281 ) (2 ) (48,822 ) 24,504 (4,941 ) - (73,176 ) Net Cash generated from Operating Activities - Discontinued Operations - - - - - 261 - - 261 CASH FLOWS FROM INVESTING ACTIVITIES: Purchase of property, equipment and equipment - (5,458 ) - - (10,572 ) - - - (16,030 ) Investment in equity - Proceed from disposals of discontinued operations - - - - - - - - - Net cash (used in) generated from investing activities - (5,458 ) - - (10,572 ) - - - (16,030 ) CASH FLOWS FROM FINANCING ACTIVITIES Proceed from share issuance, net of issuance costs 18,463 - - - - - - - 18,463 Repayment of principle portion of lease liabilities - - - - (768 ) - - - (768 ) Proceeds from disposal of subsidiaries 17,000 - - - - - - - 17,000 Net cash generated from (used in) financing activities 35,463 - - - (768 ) - - - 34,695 - EFFECT OF EXCHANGE RATES ON CASH - - - - - (24,283 ) - - (24,283 ) Net increase/(decrease), effect of exchange rate changes on cash and cash equivalent (5,108 ) (5,523 ) (3,281 ) (2 ) (60,162 ) 482 (4,941 ) - (78,533 ) CASH AND CASH EQUIVALENTTS, beginning of year 12,301 160,091 4,164 2 101,210 60,259 - - 338,025 CASH AND CASH EQUIVALENTTS, end of year 7,193 154,568 883 - 41,048 60,742 - - 264,434 31-Dec-21 SOS Ltd. China WFOE VIE Subsidiaries Subsidiaries Consolidation Consolidation SOS Ltd. US$ US$ US$ US$ US$ US$ US$ US$ US$ CASH FLOWS FROM OPERATING ACTIVITIES Net (loss) (54,250 ) 2,648 (12 ) 3 (10,584 ) 911 - 12,033 (49,251 ) Net income from discontinued operation - - - - - 3,374 - - 3,374 Net (loss)/income from continuing operation (54,250 ) 2,648 (12 ) 3 (10,584 ) (2,463 ) - 12,033 (52,625 ) Adjustments to reconcile net income net cash used in operating activities: - Depreciation of property, plant and equipment - - - - - 4,007 - - 4,007 Depreciation of ROU - - - - - 843 - - 843 Share-based compensation 33,537 - - - - - - - 33,537 Accretion of finance leases - - - - - 152 - - 152 Allowance for doubtful accounts - accounts receivable - - - - - 963 - - 963 Allowance for doubtful accounts - other receivable - - - - - 269 - - 269 Impairment of cryptocurrencies - - - - 925 - - - 925 Accounts receivable - - - - - (19,843 ) - - (19,843 ) Other receivables (9,522 ) (99,516 ) - - (595 ) (52,300 ) - - (161,933 ) Inter-company account (99,132 ) 128,855 (311,415 ) - 84,650 197,042 - - - Amount due from related parties (900 ) (2 ) 1,000 (32,404 ) (32,306 ) Intangible assets - (14,502 ) - - - - - - (14,502 ) Accrued liabilities - - - - 3 19,306 - - 19,309 Inventory - - - - - (60,587 ) - - (60,587 ) Tax payables - - - - - (6,099 ) - - (6,099 ) Accounts payable - 11,359 - - - 17 - - 11,376 Other payables 5,141 121 47 - - 12 - - 5,321 Amount due to related parties 15 - - - 9 2 - - 26 Net cash (used in) generated from operating activities (124,211 ) 28,065 (311,382 ) 3 75,408 48,917 - 12,033 (271,167 ) Net cash (used in) in generating from discontinued operating activities: - - - - - 52,604 - - 52,604 CASH FLOWS FROM INVESTING ACTIVITIES: Purchase of property, equipment and equipment - (11,358 ) - - (16,922 ) (4,754 ) - - (33,034 ) Investment in equity (374,463 ) (310,205 ) - - (64,794 ) (657 ) 750,119 - - Net cash (used in) generated from investing activities (374,463 ) (321,563 ) - - (81,716 ) (5,411 ) 750,119 - (33,034 ) CASH FLOWS FROM FINANCING ACTIVITIES Repayment of principle portion of lease liabilities - - - - - (1,764 ) - - (1,764 ) Proceed from share issuance, net of issuance costs 510,271 452,076 315,547 - 110,523 (40,426 ) (750,119 ) (12,033 ) 585,839 Proceed from private equity placement, net of issuance costs - - - - - - - - - Net cash generated from (used in) financing activities 510,271 452,076 315,547 - 110,523 (42,190 ) (750,119 ) (12,033 ) 584,075 - EFFECT OF EXCHANGE RATES ON CASH - - (1 ) - (98 ) 1,924 - - 1,825 Net increase, effect of exchange rate changes on cash and cash equivalent 11,597 158,578 4,164 3 104,117 55,844 - - 334,303 CASH AND CASH EQUIVALENTTS, beginning of year 1 - - - - 3,721 - - 3,722 CASH AND CASH EQUIVALENTTS, end of year 11,598 158,578 4,164 3 104,117 59,565 - - 338,025 Notes (a) This entry is to eliminate investment against equity accounts; (b) This entry is to offset legal expenses against gross proceeds from direct public offerings. |