Cheetah Net (CTNT) Registration Filing summary

Company overview and business model

• Provides logistics and warehousing services, initially focused on parallel-import luxury vehicles from the U.S. to the PRC, now expanding to non-vehicle trade and logistics between the U.S. and PRC.

• Shifted focus from vehicle sales to logistics and warehousing due to declining PRC demand for imported luxury vehicles and increased competition from domestic EVs.

• Acquired Edward Transit Express Group Inc. in February 2024 to expand logistics and warehousing capabilities.

• Corporate structure includes several U.S.-based subsidiaries and recent office relocation plans from North Carolina to California.

Financial performance and metrics

• Revenue declined from $55.2M in 2022 to $38.3M in 2023, a 30.5% decrease; net income dropped from $0.8M in 2022 to $0.1M in 2023.

• First half of 2024 saw only 14 vehicles sold (down 92% YoY), $1.8M in revenue, and a net loss of $1.2M.

• Recent offerings in May and July 2024 raised gross proceeds of $8.2M and $1.5M, respectively.

• As of June 30, 2024, working capital was $12.4M and cash was $6.3M.

Use of proceeds and capital allocation

• Net proceeds from securities sales will be used as indicated in future prospectus supplements; management has broad discretion over allocation.