Zhongchao 6K Report of Foreign Private Issuer | ZCMD 22 Dec 23

Exhibit 99.1

ZHONGCHAO INC.

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

As of June 30, 2023 and December 31, 2022

(Expressed in U.S. dollar, except for the number of shares and per share data)

	June 30, 2023			December 31, 2022

ASSETS
Current Assets
Cash and cash equivalents	$	11,286,821		$	11,520,453
Short-term investments		936,098			518,416
Accounts receivable, net		3,364,768			6,772,988
Inventories		513,457			189,106
Prepayments		1,127,732			1,027,989
Prepayments – related parties		1,048			115,989
Loans receivable		275,813			1,840,000
Due from affiliates		-			226,179
Other current assets		1,048,364			493,040
Total Current Assets		18,554,101			22,704,160

Investment in equity method investees		1,121,783			1,179,300
Investment in an equity security		84,606			84,606
Goodwill		5,485,862			5,767,504
Property and equipment, net		2,390,737			3,890,947
Deposit and prepayment for properties		11,722			239,481
Prepayments for lease of land		279,591			304,787
Intangible assets, net		711,487			912,054
Right of use assets		1,373,612			1,666,777
Deferred tax assets		512,622			1,864,729
Total Assets	$	30,526,123		$	38,614,345

LIABILITIES AND EQUITY
Current Liabilities
Accounts payable	$	6,475		$	140,834
Advances from customers		384,981			395,263
Income tax payable		130,514			2,292,765
Operating lease liabilities, current portion		386,133			480,633
Accrued expenses and other liabilities		832,839			855,540
Total Current Liabilities		1,740,942			4,165,035

Operating lease liabilities, noncurrent portion		1,056,764			1,221,845
Deferred tax liabilities		556,044			208,200
Total Liabilities		3,353,750			5,595,080

Commitments and Contingencies

Equity
Class A Ordinary Share (par value $0.0001 per share, 450,000,000 shares authorized; 20,531,423 and 20,531,423 shares issued and outstanding at June 30, 2023 and December 31, 2022, respectively)		2,054			2,054
Class B Ordinary Share (par value $0.0001 per share, 50,000,000 shares authorized; 5,497,715 and 5,497,715 shares issued and outstanding at June 30, 2023 and December 31, 2022, respectively)		550			550
Additional paid-in capital		25,060,797			24,998,388
Statutory reserve		1,315,017			1,315,017
(Accumulated deficits) Retained earnings		(597,553	)		4,124,037
Accumulated other comprehensive loss		(1,492,919	)		(511,824	)
Total Zhongchao Inc. Shareholders’ Equity		24,287,946			29,928,222

Non-controlling interests		2,884,427			3,091,043
Total Equity		27,172,373			33,019,265

Total Liabilities and Equity	$	30,526,123		$	38,614,345

ZHONGCHAO INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

For the Six Months Ended June 30, 2023 and 2022

(Expressed in U.S. dollar, except for the number of shares and per share data)

	For the Six Months Ended June 30,
	2023			2022
Revenues:
Services	$	4,856,333		$	7,295,439
Products		5,519,837			-
Total revenues		10,376,170			7,295,439
Cost of revenues:
Services		(2,710,770	)		(2,236,718	)
Products		(3,342,061	)		-
Total cost of revenues		(6,052,831	)		(2,236,718	)
Gross Profit		4,323,339			5,058,721

Operating Expenses
Selling and marketing expenses		(3,945,328	)		(1,316,733	)
General and administrative expenses		(4,639,182	)		(3,046,045	)
Research and development expenses		(298,987	)		(153,290	)
Impairment of property and equipment		(1,464,413	)		-
Total Operating Expenses		(10,347,910	)		(4,516,068	)

(Loss) Income from Operations		(6,024,571	)		542,653

Interest income, net		57,430			82,913
Other income (expenses), net		784,979			(247,327	)
(Loss) Income Before Income Taxes		(5,182,162	)		378,239

Income tax benefits (expenses)		402,304			(284,695	)

Net (Loss) Income		(4,779,858	)		93,544
Less: net loss attributable to noncontrolling interests		58,268			-

Net (Loss) Income Attributable to Zhongchao Inc.’s shareholders		(4,721,590	)		93,544

Other Comprehensive Loss
Foreign currency translation adjustment		(1,129,443	)		(1,328,591	)
Comprehensive Loss		(5,909,301	)		(1,235,047	)
Less: comprehensive loss attributable to noncontrolling interests		206,616			-

Net Loss Attributable to Zhongchao Inc.’s shareholders	$	(5,702,685	)	$	(1,235,047	)
			��
Weighted average number of ordinary share outstanding
Basic and Diluted		26,029,138			25,976,000

(Loss) Earnings per share
Basic and Diluted	$	(0.18	)	$	0.00

ZHONGCHAO INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

(Expressed in U.S. dollar, except for the number of shares)

For the Six Months Ended June 30, 2023

													(Accumulated			Accumulated other
	Ordinary share								Additional				Deficit)			comprehensive			Non-
	Class A				Class B				paid-in		Statutory		Retained			(loss)			controlling			Total
	Shares		Amount		Shares		Amount		capital		Reserve		earning			income			interest			equity
Balance as of December 31, 2022		20,531,423	$	2,054		5,497,715	$	550	$	24,998,388	$	1,315,017	$	4,124,037		$	(511,824	)	$	3,091,043		$	33,019,265
Share-based compensation expenses		-		-		-		-		62,409		-		-			-			-			62,409
Net loss		-		-		-		-		-		-		(4,721,590	)		-			(58,268	)		(4,779,858	)
Foreign currency translation adjustments		-		-		-		-		-		-		-			(981,095	)		(148,348	)		(1,129,443	)
Balance as of June 30, 2023		20,531,423	$	2,054		5,497,715	$	550	$	25,060,797	$	1,315,017	$	(597,553	)	$	(1,492,919	)	$	2,884,427		$	27,172,373

For the Six Months Ended June 30, 2022

	Ordinary share								Additional						Accumulated other
	Class A				Class B				paid-in		Statutory		Retained		comprehensive			Total
	Shares		Amount		Shares		Amount		capital		Reserve		earning		Income (loss)			equity
Balance as of December 31, 2021		19,435,423	$	1,946		5,497,715	$	550	$	22,986,975	$	1,199,054	$	7,180,891	$	1,197,006		$	32,566,422
Ordinary shares issued in a shelf offering		1,060,000		106		-		-		1,850,368		-		-		-			1,850,474
Share-based compensation expenses		-		-		-		-		85,703		-		-		-			85,703
Net income		-		-		-		-		-		-		93,544		-			93,544
Foreign currency translation adjustments		-		-		-		-		-		-		-		(1,328,591	)		(1,328,591	)
Balance as of June 30, 2022		20,513,423	$	2,052		5,497,715	$	550	$	24,923,046	$	1,199,054	$	7,274,435	$	(131,585	)	$	33,267,552

ZHONGCHAO INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

For the Six Months Ended June 30, 2023 and 2022

(Expressed in U.S. dollar, except for the number of shares)

	For the Six Months Ended June 30,
	2023			2022
Cash Flows from Operating Activities:
Net (loss) income	$	(4,779,858	)	$	93,544
Adjustments to reconcile net (loss) income to net cash used in operating activities:
Depreciation and amortization expenses		276,391			128,356
Writing off accounts receivable		1,286,280			-
Reversal of provision of doubtful accounts		(72,605	)		-
Loss from disposal of property and equipment		1,466,469			-
Amortization of right of use assets		259,883			183,132
Recognition of share-based compensation expenses		62,409			85,703
Deferred tax expenses (benefits)		(378,162	)		(29,296	)
Equity investment loss		(74	)		61,774
Changes in fair value of short-term investments		(592,141	)		234,652
Changes in operating assets and liabilities:
Accounts receivable		2,007,725			(942,164	)
Prepayments		(151,410	)		(813,023	)
Prepayments – related party		114,372			-
Inventories		(349,138	)		-
Other current assets		(613,086	)		79,119
Accounts payable		(133,425	)		(13,515	)
Advances from customers		9,440			20,991
Income tax payable		(78,043	)		235,956
Accrued expenses and other liabilities		35,179			(30,266	)
Lease liabilities		(222,909	)		(91,584	)
Net Cash Used in Operating Activities		(1,853,153	)		(796,621	)

Cash Flows from Investing Activities:
Purchases of property and equipment		(12,269	)		(25,291	)
Purchases of intangible assets		-			(15,434	)
Prepayments for a long-term investment		-			(617,370	)
Loans to third parties		(288,671	)		(971,712	)
Repayment of loans from third parties		1,840,000			1,165,041
Due from affiliates		225,163			(2,233,335	)
Investments in short-term investments		(522,920	)		(996,638	)
Proceeds from redemption of short-term investments		697,379			533,747
Net Cash Provided by (Used in) Investing Activities		1,938,682			(3,160,992	)

Cash Flows from Financing Activities:
Proceeds from issuance of ordinary shares in connection with a shelf offering		-			1,850,474
Net Cash Provided by Financing Activities		-			1,850,474

Effect of exchange rate changes on cash and cash equivalents		(319,161	)		(326,486	)

Net decrease in cash and cash equivalents		(233,632	)		(2,433,625	)
Cash and cash equivalents at beginning of period		11,520,453			13,914,982
Cash and cash equivalents at end of period	$	11,286,821		$	11,481,357

Supplemental Cash Flow Information
Cash paid for income tax	$	78,043		$	78,034

Noncash investing activities
Right of use assets obtained in exchange for operating lease obligations	$	16,436		$	1,771,361
Addition of property and equipment from deposit and prepayment for properties	$	238,406		$	-
Net off deferred tax assets with income tax payable	$	2,067,833		$	-

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Zhongchao (ZCMD) 6-KReport of Foreign Private Issuer