Jade Art Group Inc. (OTCBB: JADA) (“Jade Art" or the "Company"), a seller and distributor of raw jade in China, announced today its financial results for the third quarter and nine months ended September 30, 2010.
2010 Third Quarter Financial Highlights
- Revenue was $2.3 million in the third quarter, down from $10.7 million of revenue recorded in the third quarter of 2009.
- Gross profit was $1.4 million, compared to $9.2 million in the third quarter of 2009.
- Net income in the third quarter of 2010 was $235,576, a decrease of 96% compared to net income of $6.3 million in the third quarter of 2009.
Third Quarter 2010 Financial Results
Jade Art Group's third quarter 2010 revenue was $2.3 million, representing a 78% decrease from the $10.7 million of revenue recorded in the comparable period in 2009. This decrease in revenue resulted from a reduced level of orders received from the Company’s major customers.Gross profit for the third quarter was $1.4 million compared to $9.2 million for the same period last year, a direct result of the decrease in revenue. Selling, general, and administrative expenses for the third quarter of 2010 were $130,832 as compared to $531,484 for the same period in 2009 due to a reduction in promotional costs. Bad debt expense for the third quarter was $767,691. This bad debt expense results from delayed payments from our five major customers. As a result of these delayed payments, the Company has suspended shipments of raw jade to two of our customers. The Company will continue to monitor this situation and periodically reevaluate the adequacy of the bad debt reserve. As a result, net income was $235,576 for the third quarter of 2010 as compared to $6.3 million of the third quarter of 2009. Basic and diluted earnings per share in the third quarter of 2010 were $0.00 as compared to $0.08 per basic and diluted share in the third quarter of 2009.