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DTSS' AI-Powered Technology Serves as a Unifying Core Innovation for its
5G Multimodal Digital Platform and Acoustic High-Tech Segment
BEIJING, May 15, 2025 /PRNewswire/ -- Datasea Inc. (NASDAQ: DTSS) ("Datasea" or the "Company"), a Nevada-based technology company specializing in 5G+AI multimodal digital solutions and acoustic high-tech innovations, today announced its financial results for the third fiscal quarter ended March 31, 2025. The Company reported revenue of $10.4 million, up 653.6% compared to $1.38 million for the same period of fiscal 2024. For the first nine months of the year, the Company reported revenue of $51.9 million, up 164.8% compared to revenue of $19.6 million for the same period of fiscal year 2024.
Ms. Zhixin Liu, CEO of Datasea, commented, "We are pleased to have delivered robust year-over-year revenue growth. The period's revenue was driven by the continued strong performance and market expansion of the Company's 5G+AI multimodal digital segment in China, supported by its growing adoption across a spectrum of industries resulting in long-term customer contracts. In addition, the Company's acoustic high-tech products gained traction through strategic retail placement and new product innovation. The strength of our 5G+AI multimodal data platform and the market adoption of our acoustic products reinforce our vision of redefining digital and physical experiences through innovation."
Financial Highlights
Business Segment Highlights - 5G+AI Multimodal Digital Segment
Datasea continues to be a leader in China's 5G+AI digital service sector. Notable developments during the third quarter include:
Business Segment Highlights - Acoustic High-Tech Segment
Datasea's "Acoustic + AI" product ecosystem continued to gain momentum in the third quarter:
Business Outlook
Datasea reaffirms its full fiscal year 2025 revenue guidance of approximately $90 million, representing a 275% increase over fiscal year 2024. This growth is expected to be fueled by existing 5G+AI multimodal digital communications long-term contracts and a revenue ramp attributable to the extensive placement of its acoustic high-tech products.
The Company also intends to drive profitability by continuing to scale its high-margin acoustic high-tech products and offering technical services through the Company's core AI platform. It also plans to accelerate international market entry of the acoustic high-tech segment into international market and expand its acoustic high-tech business through strategic partnerships and mergers & acquisitions.
About Datasea Inc.
Datasea Inc. ("Datasea") is a leading provider of products, services, and solutions for enterprise and retail customers in two innovative industries, acoustic high tech and 5G+AI multimodal digitalization. The Company's advanced R&D technology serves as the core infrastructure and backbone for its products. Its 5G multimodal digital segment operates on a cloud platform based on AI. Datasea leverages cutting-edge technologies, precision manufacturing, and ultrasonic, infrasound and directional sound technology in its acoustics business to combat viruses and prevent human infections, and it is also developing applications in medical ultrasonic cosmetology. In July 2023, Datasea established a wholly-owned subsidiary, Datasea Acoustics LLC, in Delaware, in a strategic move to enter the U.S. markets and to mark its global expansion plan. For additional information, please visit www.dataseainc.com.
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934 and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will", "expects", "anticipates", "future", "intends", "plans", "believes", "estimates", "target", "going forward", "outlook," "objective" and similar terms. Such statements are based upon management's current expectations and current market and operating conditions, and relate to events that involve known or unknown risks, uncertainties and other factors, all of which are difficult to predict and which are beyond Datasea's control, which may cause Datasea's actual results, performance or achievements (including the RMB/USD value of its anticipated benefit to Datasea as described herein) to differ materially and in an adverse manner from anticipated results contained or implied in the forward-looking statements. Further information regarding these and other risks, uncertainties or factors is included in Datasea's filings with the SEC, which are available at www.sec.gov. Datasea does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under law.
Investor and Media Contact:
Datasea Investor Relations
Email: [email protected]
[email protected]
DATASEA INC. | ||||||||
CONSOLIDATED BALANCE SHEETS | ||||||||
MARCH 31, | JUNE 30, | |||||||
(UNAUDITED) | ||||||||
ASSETS | ||||||||
CURRENT ASSETS | ||||||||
Cash | $ | 866,737 | $ | 181,262 | ||||
Accounts receivable | 49,066 | 718,546 | ||||||
Inventory, net | 316,135 | 153,583 | ||||||
Value-added tax prepayment | 143,300 | 107,545 | ||||||
Prepaid expenses and other current assets | 614,558 | 1,486,956 | ||||||
Total current assets | 1,989,796 | 2,647,892 | ||||||
NONCURRENT ASSETS | ||||||||
Property and equipment, net | 36,620 | 48,466 | ||||||
Intangible assets, net | 3,805,383 | 546,001 | ||||||
Right-of-use assets, net | 322,574 | 49,345 | ||||||
Total noncurrent assets | 4,164,577 | 643,812 | ||||||
TOTAL ASSETS | $ | 6,154,373 | $ | 3,291,704 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
CURRENT LIABILITIES | ||||||||
Accounts payable | $ | 392,559 | $ | 1,075,641 | ||||
Unearned revenue | 140,213 | 49,239 | ||||||
Accrued expenses and other payables | 476,644 | 596,714 | ||||||
Due to related parties | 25,264 | 654,560 | ||||||
Operating lease liabilities | 139,895 | 53,530 | ||||||
Bank loan payable | 1,957,315 | 1,170,298 | ||||||
Total current liabilities | 3,131,890 | 3,599,982 | ||||||
NONCURRENT LIABILITIES | ||||||||
Operating lease liabilities | 189,989 | - | ||||||
Total noncurrent liabilities | 189,989 | - | ||||||
TOTAL LIABILITIES | 3,321,879 | 3,599,982 | ||||||
COMMITMENTS AND CONTINGENCIES | ||||||||
STOCKHOLDERS' EQUITY (DEFICIT) | ||||||||
Common stock, $0.001 par value, 25,000,000 shares authorized, | 7,651 | 3,589 | ||||||
Additional paid-in capital | 47,018,873 | 38,957,780 | ||||||
Accumulated comprehensive income | 137,323 | 242,208 | ||||||
Accumulated deficit | (44,321,587) | (39,440,322) | ||||||
TOTAL COMPANY STOCKHOLDERS' EQUITY (DEFICIT) | 2,842,260 | (236,745) | ||||||
Noncontrolling interest | (9,766) | (71,533) | ||||||
TOTAL STOCKHOLDERS' EQUITY (DEFICIT) | 2,832,494 | (308,278) | ||||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 6,154,373 | $ | 3,291,704 | ||||
The accompanying notes are an integral part of these consolidated financial statements. | ||||||||
DATASEA INC. | ||||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS | ||||||||||||||||
(UNAUDITED) | ||||||||||||||||
THREE MONTHS | NINE MONTHS | |||||||||||||||
2025 | 2024 | 2025 | 2024 | |||||||||||||
Revenues | $ | 10,353,977 | $ | 1,383,001 | $ | 51,891,475 | $ | 19,612,213 | ||||||||
Cost of revenues | 10,056,187 | 1,373,130 | 50,979,252 | 19,425,372 | ||||||||||||
Gross profit | 297,790 | 9,871 | 912,223 | 186,841 | ||||||||||||
Operating expenses | ||||||||||||||||
Selling | 185,354 | 970,443 | 1,589,072 | 2,204,834 | ||||||||||||
General and administrative | 1,534,383 | 3,075,941 | 3,836,519 | 4,392,457 | ||||||||||||
Research and development | 347,532 | 71,178 | 525,013 | 343,553 | ||||||||||||
Total operating expenses | 2,067,269 | 4,117,562 | 5,950,604 | 6,940,844 | ||||||||||||
Loss from operations | (1,769,479) | (4,107,691) | (5,038,381) | (6,754,003) | ||||||||||||
Non-operating income (expenses) | ||||||||||||||||
Other income (expenses), net | (13,629) | (34,351) | 151,958 | (88,402) | ||||||||||||
Interest income | 16 | 217 | 4,946 | 1,946 | ||||||||||||
Total non-operating income (expenses), net | (13,613) | (34,134) | 156,904 | (86,456) | ||||||||||||
Loss before income tax | (1,783,092) | (4,141,825) | (4,881,477) | (6,840,459) | ||||||||||||
Income tax | - | - | - | - | ||||||||||||
Loss before noncontrolling interest from | (1,783,092) | (4,141,825) | (4,881,477) | (6,840,459) | ||||||||||||
Income before noncontrolling interest from | - | - | - | 833,546 | ||||||||||||
Less: loss attributable to noncontrolling interest | (94) | (105) | (212) | (10,098) | ||||||||||||
Less: loss attributable to noncontrolling interest | - | - | - | - | ||||||||||||
Net loss attribute to noncontrolling interest | (94) | (105) | (212) | (10,098) | ||||||||||||
Net loss to the Company from continuing | (1,782,998) | (4,141,720) | (4,881,265) | (6,830,361) | ||||||||||||
Net income to the Company from discontinued | - | - | - | 833,546 | ||||||||||||
Net loss to the Company | (1,782,998) | (4,141,720) | (4,881,265) | (5,996,815) | ||||||||||||
Other comprehensive item | ||||||||||||||||
Foreign currency translation gain (loss) | 3,021 | (15,969) | (104,885) | (142,584) | ||||||||||||
Foreign currency translation gain (loss) | (14) | (42) | 60,588 | 66 | ||||||||||||
Comprehensive loss attributable to the Company | $ | (1,779,977) | $ | (4,157,689) | $ | (4,986,150) | $ | (6,139,399) | ||||||||
Comprehensive income (loss) attributable to | $ | (108) | $ | (147) | $ | 60,376 | $ | (10,032) | ||||||||
Basic and diluted net loss per share | $ | (0.24) | $ | (1.55) | $ | (0.79) | $ | (2.49) | ||||||||
Weighted average shares used for computing | 7,432,997 | 2,666,438 | 6,217,993 | 2,413,014 | ||||||||||||
* retroactively reflect 1-for-15 reverse stock split effective on January 19, 2024 | ||||||||||||||||
The accompanying notes are an integral part of these consolidated financial statements. | ||||||||||||||||
DATASEA INC. | ||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
(UNAUDITED) | ||||||||
NINE MONTHS | ||||||||
2025 | 2024 | |||||||
Cash flows from operating activities: | ||||||||
Loss including noncontrolling interest | $ | (4,881,477) | $ | (6,006,913) | ||||
Adjustments to reconcile loss including noncontrolling interest to net cash | ||||||||
Gain on disposal of subsidiary | - | (833,546) | ||||||
Bad debt reversal | (6,994) | - | ||||||
Depreciation and amortization | 774,710 | 412,333 | ||||||
Loss on disposal of fixed assets | 4,503 | 589 | ||||||
Operating lease expense | 102,252 | 137,703 | ||||||
Loan forgiveness by shareholder | 21,261 | - | ||||||
Stock compensation expense | 1,663,812 | 2,849,572 | ||||||
Changes in assets and liabilities: | ||||||||
Accounts receivable | 667,009 | (16,190) | ||||||
Inventory | (164,310) | 61,298 | ||||||
Value-added tax prepayment | (36,673) | (42,318) | ||||||
Prepaid expenses and other current assets | 872,229 | (1,575,526) | ||||||
Accounts payable | (679,818) | (210,979) | ||||||
Unearned revenue | 91,695 | (467,475) | ||||||
Accrued expenses and other payables | (114,569) | (129,164) | ||||||
Payment on operating lease liabilities | (99,086) | (133,736) | ||||||
Net cash used in operating activities | (1,785,456) | (5,954,352) | ||||||
Cash flows from investing activities: | ||||||||
Acquisition of property and equipment | (7,243) | (3,692) | ||||||
Acquisition of intangible assets | (4,036,533) | (105,184) | ||||||
Cash disposed due to disposal of subsidiary | - | (35) | ||||||
Net cash used in investing activities | (4,043,776) | (108,911) | ||||||
Cash flows from financing activities: | ||||||||
Proceeds from (repayment to) related parties | (184,283) | 417,174 | ||||||
Proceeds from loan payables | 839,229 | - | ||||||
Repayment of loan payables | (40,629) | (2,269,329) | ||||||
Net proceeds from issuance of common stock | 5,939,133 | 8,061,286 | ||||||
Net cash provided by financing activities | 6,553,450 | 6,209,131 | ||||||
Effect of exchange rate changes on cash | (38,743) | (113,067) | ||||||
Net increase in cash | 685,475 | 32,801 | ||||||
Cash, beginning of period | 181,262 | 19,728 | ||||||
Cash, end of period | $ | 866,737 | $ | 52,529 | ||||
Supplemental disclosures of cash flow information: | ||||||||
Cash paid for interest | $ | 26,173 | $ | 15,019 | ||||
Cash paid for income tax | $ | - | $ | - | ||||
Supplemental disclosures of non-cash financing activities: | ||||||||
Right-of-use assets obtained in exchange for operating lease liabilities | $ | 356,566 | $ | 125,138 | ||||
Transfer of debt owing to the Company's' CEO to Mr. Wanli Kuai | $ | - | $ | 729,338 | ||||
Shares issued for paying officers' accrued salary and bonus | $ | 194,062 | $ | 359,598 | ||||
Loan forgiveness by shareholder | $ | 440,947 | $ | - | ||||
The accompanying notes are an integral part of these consolidated financial statements. | ||||||||
IMPORTANT NOTICE TO USERS
The information provided is a summary only, please refer to the Form 10-Q for the full text of this notice. All information is unaudited unless otherwise noted or accompanied by an audit opinion and is subject to the more comprehensive information contained in our SEC reports and filings. We do not endorse third-party information All information speaks as of the last fiscal quarter or year for which we have filed a Form 10-K or 10-Q, or for historical information the date or period expressly indicated in or with such information. We undertake no duty to update the information. Forward-looking statements are subject to risks and uncertainties described in our Forms 10-Q and 10-K.
SOURCE Datasea Inc.
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