Cheetah Net pursues growth through acquisition amid going concern warning

Cheetah Net Supply Chain Service (NASDAQ:CTNT) reported a sharp decline in its core logistics revenue for the first quarter of 2026, as the company issued a "going concern" warning and pivoted toward a major international acquisition to stabilize its long-term outlook.

Cheetah Net reported first-quarter revenue of $92,700 for its logistics and warehousing business, an 80.7% drop from the $479,799 recorded in the same period last year.

The company cited volatility in global trade and shifting customer demand for the steep decline.

Despite the revenue contraction, Cheetah Net managed to narrow its operating loss to $764,319, aided by a 23% reduction in general and administrative expenses as part of an ongoing cost-restructuring effort.

The quarter was defined by a critical assessment of the company’s liquidity.

Management flagged "substantial doubt" regarding its ability to continue as a going concern, noting a $2.5 million operating cash outflow during the first three months of the year.

To address these pressures, the company has leaned heavily on capital markets, completing a private placement in the first quarter followed by a $100 million at-the-market (ATM) equity program in April.

As of March 31, the company held $0.7 million in cash and $4.4 million in loans receivable.

Central to this repositioning is the acquisition of Super International Trading Limited, a Hong Kong-based company specializing in large-scale industrial equipment.

Cheetah Net signed a definitive agreement in April to acquire the firm for approximately $4.98 million in cash.

The deal, targeted for closure in late May, includes a post-closing performance guarantee requiring the subsidiary to generate at least $10 million in annual revenue over the next three years.

The news follows a 1-for-200 reverse stock split completed in late April, a move intended to bring the company’s share price back into compliance with Nasdaq’s minimum bid price requirements.