0001213900-26-025031
SEC filingSingularity Future Technology Ltd. reported a net loss of $10.16 million for the six months ended December 31, 2025, a significant increase from a net loss of $1.34 million in the prior year period. This deterioration was primarily driven by an $8.85 million class action settlement expense recorded in the current period. Revenue for the six months declined to $0.46 million from $0.98 million in the prior year, while gross loss was $0.01 million compared to a gross loss of $0.26 million. The company's cash and restricted cash decreased by $4.57 million to $13.08 million, primarily due to cash used in operating activities of $9.88 million, partially offset by $5.20 million in net cash provided by financing activities. The balance sheet shows total assets of $21.62 million and total liabilities of $18.02 million as of December 31, 2025, with shareholders' equity of $3.60 million.
Singularity Future Technology Ltd. reported significantly worse financial results for the six months ended December 31, 2025 compared to the same period in 2024. The company recorded a net loss of $10.16 million, a substantial increase from the $1.34 million net loss in the prior year period. This deterioration was primarily attributable to an $8.85 million class action settlement expense recorded in the current period. Revenue declined by 53% to $0.46 million from $0.98 million in the prior year. The company reported a gross loss of $0.01 million, an improvement from the $0.26 million gross loss in the prior year period. Operating loss was $1.17 million compared to $1.71 million in the prior year, excluding the class action settlement impact.
The company generates all its revenue from freight logistics services, with 100% of revenue derived from operations in the PRC. Revenue for the three months ended December 31, 2025 was $0.15 million, a 69% decrease from $0.47 million in the same quarter of the prior year. For the six-month period, revenue declined to $0.46 million from $0.98 million. The company's freight logistics services include shipping and other logistical support to steel companies through its subsidiary Trans Pacific Shipping Limited. The significant revenue decline reflects reduced business activity in the current period.
The company reported a gross loss margin of 2.4% for the six months ended December 31, 2025, calculated on gross loss of $0.01 million on revenue of $0.46 million. This represents an improvement from the 26.8% gross loss margin in the prior year period. Operating expenses excluding the class action settlement were $1.15 million, a decrease from $1.45 million in the prior year. Selling expenses decreased to $0.10 million from $0.13 million, while general and administrative expenses decreased to $1.06 million from $1.32 million. The class action settlement expense of $8.85 million was the primary driver of the significantly increased net loss.
Net cash used in operating activities was $9.88 million for the six months ended December 31, 2025, compared to net cash provided by operating activities of $0.40 million in the prior year. The company generated $0.11 million from investing activities and $5.20 million from financing activities. Cash and restricted cash decreased by $4.57 million to $13.08 million as of December 31, 2025. The balance sheet shows total assets of $21.62 million, including $10.99 million in cash and $2.10 million in restricted cash. Total liabilities were $18.02 million, including $17.56 million in current liabilities. Shareholders' equity was $3.60 million, with accumulated deficits of $104.74 million.
The company faces significant challenges including ongoing class action litigation and judgment debt obligations. The class action settlement requires cash payment of $3.00 million and issuance of 6,500,000 common shares valued at $5.85 million, subject to court approval. The company has wired $2.00 million to an escrow account as part of the settlement payment. Management intends to use proceeds from recent share issuances for working capital and general corporate purposes. The company continues to focus on its freight logistics services business while managing legal contingencies and maintaining adequate liquidity. No specific financial guidance was provided in the filing.