0001410578-24-000749 | 10-Q | XBRL Viewer | Cheetah NET Supply Chain Service INC

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Disaggregation of revenue (Details) - USD ($)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Disaggregation of revenue
Total revenue	$ 1,507,785	$ 10,214,442
U.S. domestic market
Disaggregation of revenue
Total revenue	49,479	1,658,235
Overseas market
Disaggregation of revenue
Total revenue	1,485,306	8,556,207
Parallel-Import Vehicles
Disaggregation of revenue
Total revenue	1,430,951	10,214,442
Parallel-Import Vehicles \| U.S. domestic market
Disaggregation of revenue
Total revenue		1,658,235
Parallel-Import Vehicles \| Overseas market
Disaggregation of revenue
Total revenue	1,430,951	$ 8,556,207
Logistics and Warehousing
Disaggregation of revenue
Total revenue	76,834
Logistics and Warehousing \| U.S. domestic market
Disaggregation of revenue
Total revenue	49,479
Logistics and Warehousing \| Overseas market
Disaggregation of revenue
Total revenue	$ 27,355

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References + Details

- Definition

Amount, excluding tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value added and excise.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 924
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SAB Topic 11.L)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479941/924-10-S99-1

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 5
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-5

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 30
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-30

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 42
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-42

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 22
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-22

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-32

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 40
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-40

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 22
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-22

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-32

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 41
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-41

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 4
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-4

+ Details

PREMIUM FINANCE (Details) - USD ($)	3 Months Ended
PREMIUM FINANCE (Details) - USD ($)	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023	Jul. 31, 2023
PREMIUM FINANCE
Loans payable from premium finance	$ 74,908		$ 148,621
Interest expenses	7,552	$ 7,945
Loans payable from premium finance
PREMIUM FINANCE
Amount borrowed				$ 221,139
Interest rate percentage				7.75%
Loans payable from premium finance	74,908		$ 148,621
Interest expenses	$ 996	$ 0

ACQUISITION (Tables)

3 Months Ended

Mar. 31, 2024

ACQUISITION

Schedule of final valuation of assets acquired and liabilities assumed


Acquired assets acquired and (liabilities) assumed:
Cash	$	79,883
Accounts Receivable		47,354
Other Current Assets		42,685
Right-of-use Lease Asset		645,625
Fixed Assets		60,795
Developed Technology		120,000
Customer Relationships		360,000
Trade Names		36,000
Goodwill		437,382
Other Noncurrent Assets		27,000
Accounts Payable		(34,686)
Accrued Expenses Payable		(20,933)
Operating Lease Liability, Current		(94,548)
Operating Lease Liability, Long Term		(506,557)
Total Purchase Consideration	$	1,200,000

LETTER OF CREDIT FINANCING ("LC FINANCING") (Details)	3 Months Ended		12 Months Ended
LETTER OF CREDIT FINANCING ("LC FINANCING") (Details)	Mar. 31, 2024 USD ($) agreement	Mar. 31, 2023 USD ($) agreement	Dec. 31, 2023 USD ($) agreement	Dec. 31, 2023 USD ($) company
LETTER OF CREDIT FINANCING ("LC FINANCING")
Outstanding balance	$ 0		$ 1,004,565	$ 1,004,565
Interest expenses	7,552	$ 7,945
Book value of accounts receivable	4,899,545
Pledged as collateral \| LETTER OF CREDIT FINANCING
LETTER OF CREDIT FINANCING ("LC FINANCING")
Book value of accounts receivable	$ 0		$ 1,084,775	$ 1,084,775
LETTER OF CREDIT FINANCING
LETTER OF CREDIT FINANCING ("LC FINANCING")
Number of third-party lending companies	3	3	2	2
Interest expenses	$ 23,123	$ 330,424
LETTER OF CREDIT FINANCING \| Minimum
LETTER OF CREDIT FINANCING ("LC FINANCING")
Interest rate percentage	18.00%	18.00%

PROPERTY, NET (Tables)

3 Months Ended

Mar. 31, 2024

PROPERTY, NET

Schedule of property


	Estimated Useful Life
	in Years	March 31, 2024		December 31, 2023
Leasehold improvements	3-6	$	60,795		—
Total property			60,795		—
Less accumulated depreciation			(2,171)		—
Property, net		$	58,624	$	—

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

3 Months Ended

Mar. 31, 2024

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of presentation

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with the accounting principles generally accepted in the U.S. (“U.S. GAAP”) for interim financial information and pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (the “SEC”). Accordingly, the unaudited condensed consolidated financial statements do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. These statements should be read in conjunction with the Company’s audited consolidated financial statements and noted thereto for the year ended December 31, 2023, included in the Company’s annual report on Form 10-K (File No. 001-41761), filed with the SEC on March 18, 2024 (the “Annual Report”). In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary to make the unaudited condensed consolidated financial statements not misleading have been included. Operating results for the interim period ended March 31, 2024 are not necessarily indicative of the results that may be expected for the year ending December 31, 2024. The

accompanying unaudited condensed consolidated financial statements include the financial statements of the Company and its wholly owned subsidiaries. All inter-company balances and transactions are eliminated upon consolidation.

Uses of estimates

In preparing the unaudited condensed consolidated financial statements in conformity with U.S. GAAP, management makes estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the unaudited condensed consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. These estimates are based on information as of the date of the unaudited condensed consolidated financial statements. Significant estimates required to be made by management include, but are not limited to, the valuation of accounts receivables, the valuation of inventory, the revenue recognition, and the realization of deferred tax assets. Actual results could differ from those estimates.

Cash

Cash includes deposits held by banks that can be added or withdrawn without limitation.

Accounts receivable

Accounts receivable represent the amounts that the Company has an unconditional right to consideration, which are stated at the original amount less an allowance for doubtful accounts. The Company reviews the accounts receivable on a periodic basis and makes general and specific allowances when there is doubt as to the collectability of individual balances. The Company usually determines the adequacy of reserves for doubtful accounts based on individual account analysis and historical collection trends. The Company establishes a provision for doubtful receivables when there is objective evidence that the Company may not be able to collect amounts due. The allowance is based on management’s best estimates of specific losses on individual exposures, as well as a provision on historical trends of collections. The provision is recorded against accounts receivable balances, with a corresponding charge recorded in the unaudited condensed consolidated statements of operations. Delinquent account balances are written off against the allowance for doubtful accounts after management has determined that the likelihood of collection is remote. In circumstances in which the Company receives payments for accounts receivable that have previously been written off, the Company reverses the allowance and bad debt expenses. As of March 31, 2024 and December 31, 2023, there was no allowance for doubtful accounts recorded as the Company considers all of the outstanding accounts receivable fully collectible.

Loans receivable

The Company’s loans receivable are recognized at the point of loan disbursement, initially measured at fair value, primarily reflecting the disbursed amount and associated transaction costs. Both secured and unsecured lending are encompassed in these receivables, with terms including varying interest rates and maturity dates. Subsequently, these receivables are measured at amortized cost using the effective interest method, which ensures the accurate recognition of interest income over the loan period. The interest rates for these loans may be subject to change based on the terms of loan agreements. Periodic reviews of the loan portfolio are conducted to assess for impairment, utilizing the expected credit loss model. This approach considers historical credit loss experience, current conditions, and reasonable forecasts in estimating potential credit losses. As of the end of the reporting periods, no impairment allowance was recorded for these loans receivable.

Inventory

Inventory consists of new vehicles held for sale and are stated at the lower of cost or net realizable value using the specific identification method. The value of inventory mainly includes the cost of auto vehicles purchased from U.S. automobile dealers, non-refundable sales tax, and dealership service fees. The Company reviews its inventory periodically if any reserves are necessary for potential shrinkage. The Company recorded no inventory reserve as of March 31, 2024 and December 31, 2023.

Property

Depreciation on property, plant, and equipment is recognized on a straight-line basis, based on the respective estimated useful life of the assets.

Fair value of financial instruments

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A three-level fair value hierarchy prioritizes the inputs used to measure fair value. The hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows:

●	Level 1 — inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.

●

Level 2 — inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, quoted market prices for identical or similar assets in markets that are not active, inputs other than quoted prices that are observable and inputs derived from or corroborated by observable market data.

●	Level 3 — inputs to the valuation methodology are unobservable.

Unless otherwise disclosed, the fair value of the Company’s financial instruments, including cash, accounts receivable, loans receivable, loans payable, deferred revenue, and other payables and other current liabilities, approximated the fair value of the respective assets and liabilities as of March 31, 2024 and December 31, 2023 based upon the short-term nature of the assets and liabilities.

The Company believes that the carrying amount of long-term loans approximated fair value as of March 31, 2024 and December 31, 2023 based on the terms of the borrowings and current market rates as the rates of the borrowings are reflective of the current market rates.

Leases

The Company follows Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) No. 842, Leases (“Topic 842”). The Company leases office space, which is classified as operating leases in accordance with Topic 842. Under Topic 842, lessees are required to recognize the following for all leases (with the exception of short-term leases, usually with an initial term of 12 months or less) on the commencement date: (i) lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis; and (ii) right-of-use (“ROU”) asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term.

At the commencement date, the Company recognizes the lease liability at the present value of the lease payments not yet paid, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Company’s incremental borrowing rate for the same term as the underlying lease. The ROU asset is recognized initially at cost, which primarily comprises the initial amount of the lease liability, plus any initial direct costs incurred, consisting mainly of brokerage commissions, less any lease incentives received. All ROU assets are reviewed for impairment annually. There was no impairment for ROU lease assets as of March 31, 2024 and December 31, 2023.

Goodwill and Intangible Assets

The Company records goodwill as the excess of the consideration transferred over the fair value of net assets acquired in business combinations. Goodwill is tested for impairment at the reporting unit level, which is an operating segment, or one level below. The Company has one reporting unit. The Company measures goodwill impairment, if any, as the amount by which the carrying amount of the reporting unit exceeds its fair value, not to exceed the carrying amount of goodwill.

The review of goodwill impairment consists of either using a qualitative approach to determine whether it is more likely than not that the fair value of the assets is less than their respective carrying values or a one-step quantitative impairment test. In performing the qualitative assessment, the Company considers many factors in evaluating whether the carrying value of goodwill may not be recoverable, including declines in the Company’s stock price and market capitalization of the Company and macroeconomic conditions. If, based on the results of the qualitative assessment, it is concluded that it is not more likely than not that the fair value of a reporting unit exceeds its carrying value, additional quantitative impairment testing is performed. The quantitative test requires that the carrying value of each reporting unit be compared with its estimated fair value. If the carrying value of a reporting unit is greater than its fair value, a goodwill impairment charge will be recorded for the difference (up to the carrying value of goodwill). The Company uses the income approach and/or a market-based approach to determine the reporting units’ fair values, which are based on discounted cash

flows. The determination of discounted cash flows of the reporting units and assets and liabilities within the reporting units requires significant estimates and assumptions. Due to the inherent uncertainty involved in making these estimates, actual results could differ from those estimates.

The Company’s intangible assets consist of developed technology, customer relationships, and trade name, which are amortized on a straight-line basis or over their respective useful life using patterns that reflect the economic benefits of the assets are expected to be realized. The Company reviews its intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable.

Impairment of Long-lived assets

The Company reviews long-lived assets to be held-and-used for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. If an impairment indicator is present, the Company evaluates recoverability by comparing the carrying amount of the asset group to the sum of the undiscounted expected future cash flows over the remaining useful life of a long-lived asset group. If the assets are impaired, an impairment loss is measured as the amount by which the carrying amount of the asset group exceeds the fair value of the asset. The Company estimates fair value using the expected future cash flows discounted at a rate consistent with the risks associated with the recovery of the asset.

Revenue recognition

ASC 606 establishes principles for reporting information about the nature, amount, timing, and uncertainty of revenue and cash flows arising from the entity’s contracts to provide goods or services to customers. The core principle requires an entity to recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration that it expects to be entitled to receive in exchange for those goods or services recognized as performance obligations are satisfied. ASC 606 requires the use of a new five-step model to recognize revenue from customer contracts. The five-step model requires that the Company (i) identify the contract with the customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, including variable consideration to the extent that it is probable that a significant future reversal will not occur, (iv) allocate the transaction price to the respective performance obligations in the contract, and (v) recognize revenue when (or as) the Company satisfies the performance obligation. The application of the five-step model to the revenue streams compared to the prior guidance did not result in significant changes in the way the Company records its revenue. Under the new guidance, revenue is recognized when a customer obtains control of promised goods or services and is recognized in an amount that reflects the consideration which the entity expects to receive in exchange for those goods or services. In addition, the new guidance requires disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers.

The Company operates in two business segments: parallel-import vehicle dealership and logistics and warehousing services. Revenue from the parallel-import vehicle dealership business is generated from the sales of parallel-import vehicles to both domestic and overseas parallel-import car dealers. It purchases automobiles from the U.S. market through its large team of professional purchasing agents, and mainly resells them to parallel-import car dealers in the U.S. and the PRC. In accordance with ASC 606, the Company recognizes revenue at the point in time when the performance obligation has been satisfied and control of the vehicles has been transferred to the dealers. For sales to U.S. domestic parallel-import car dealers, revenue is recognized when a vehicle is delivered, and its title has been transferred to the dealers. For overseas sales, the Company sells vehicles under Cost and Freight (“CFR”) shipping point terms, and revenue is recognized when a vehicle is loaded on a cargo ship and its title has been transferred to the dealers. The Company accounts for the revenue generated from sales of vehicles on a gross basis as the Company is acting as a principal in these transactions, is subject to inventory risk, has latitude in establishing prices, and is responsible for fulfilling the promise to provide customers the specified goods, which the Company has control of the goods and has the ability to direct the use of goods to obtain substantially all the benefits. All of the Company’s contracts have one single performance obligation as the promise is to transfer the individual vehicle to parallel-import vehicle dealers, and there is no separately identifiable other promise in the contracts. The Company’s vehicles are sold with no right of return and the Company does not provide other credits or sales incentives to parallel-import car dealers. Historically, no customer returns have occurred. Therefore, the Company did not provide any sales return allowances for the three months ended March 31, 2024 and 2023.

In the logistics and warehousing services segment, revenue from freight forwarding services, both export and import, is recognized when the services are provided, based on the relative transit time. The Company’s role as the principal in these services involves managing the entire shipping process from origin to destination, allowing revenue recognition on a gross basis throughout the transit period. For warehousing services, revenue is primarily derived from storage fees, which are recognized based on the actual number of

days the goods are stored in the warehouse while awaiting further transportation. Across all operations, the Company maintains a principal position, controlling the goods and services, bearing inventory and pricing risks, and fulfilling performance obligations directly. Each contract is typically structured with a single performance obligation without allowances for returns or sales incentives, ensuring straightforward revenue recognition with no provisions for sales return allowances based on historical experiences of no returns.

Contract balances and remaining performance obligations

The Company did not have any contract assets or liabilities as of March 31, 2024 and December 31, 2023.

Disaggregation of Revenue

The Company disaggregates its revenue by type and geographic areas, as the Company believes it best depicts how the nature, amount, timing, and uncertainty of the revenue and cash flows are affected by economic factors. The Company’s disaggregation of revenue for the three months ended March 31, 2024 and 2023 were as follows:


	Three Months Ended
	March 31,
	2024		2023
	(Unaudited)		(Unaudited)
Revenue from Parallel-Import Vehicles
U.S. domestic market	$	—	$	1,658,235
Overseas market		1,430,951		8,556,207
Revenue from Logistics and Warehousing
U.S. domestic market		49,479		—
Overseas market		27,355		—
Total revenue	$	1,507,785	$	10,214,442

Geographic information

The summary of the Company’s total revenue by geographic area for the three months ended March 31, 2024 and 2023 was as follows:


	Three Months Ended
	March 31,
	2024		2023
	(Unaudited)		(Unaudited)
U.S. domestic market	$	49,479	$	1,658,235
Overseas market		1,485,306		8,556,207
Total revenue	$	1,507,785	$	10,214,442

Cost of revenues

Parallel-import Vehicle Segment

Cost of parallel import vehicle revenue mainly includes the cost of vehicles purchased from U.S. automobile dealers, non-refundable sales tax, dealership service fees, and other expenses. It also includes fulfillment expenses, which consist primarily of (i) vehicle warehousing and towing fees, (ii) vehicle insurance expenses, (iii) commissions paid to purchasing agents incurred in vehicle pick-up and the vehicle title transfer process, (iv) broker consulting fees incurred to acquire new vehicles, and (v) purchase department labor costs.

Logistics and Warehousing Segment

Cost of logistics and warehousing service revenue mainly includes the cost of freight and fulfillment expenses.

Income taxes

The Company accounts for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, the Company determines deferred tax assets and liabilities on the basis of differences between the financial statement and tax bases of assets and liabilities by using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized as income in the period that includes the enactment date.

The Company recognizes deferred tax assets to the extent that it believes that these assets are more likely than not to be realized. In making such a determination, the Company considers all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and results of recent operations. The Company has not assessed a valuation allowance as it determines it is more likely than not that all deferred tax assets will be realized before expiration.

The Company records uncertain tax positions in accordance with ASC 740, Income Taxes, on the basis of a two-step process in which (1) the Company determines whether it is more likely than not that the tax positions will be sustained on the basis of the technical merits of the position and (2) for those tax positions that meet the more-likely-than-not recognition threshold, the Company recognizes the largest amount of tax benefit that is more than 50 percent likely to be realized upon ultimate settlement with the related tax authority. The Company records interest and penalties related to an uncertain tax position, is and when required, as part of income tax expenses in the unaudited condensed consolidated statements of operations. The Company does not believe that there were any uncertain tax positions as of March 31, 2024 and December 31, 2023.

The Company and its U.S. operating subsidiaries are subject to the U.S. tax laws. The Company elected to file income taxes as a corporation instead of an LLC for the tax years ended December 31, 2020 through December 31, 2021. As of March 31, 2024, the Company’s consolidated income tax returns for the tax years ended December 31, 2020 through December 31, 2023 remained open for statutory examination by U.S. tax authorities.

Earnings (Loss) per share

The Company computes earnings (loss) per share (“EPS”) in accordance with ASC 260, “Earnings per Share” (“ASC 260”). ASC 260 requires companies with complex capital structures to present basic and diluted EPS. Basic EPS is measured as net income divided by the weighted average common shares outstanding for the period. Diluted EPS presents the dilutive effect on a per share basis of potential common shares (e.g., convertible securities, options, and warrants) as if they had been converted at the beginning of the periods presented, or issuance date, if later. Potential common shares that have an anti-dilutive effect (i.e., those that increase income per share or decrease loss per share) are excluded from the calculation of diluted EPS. For the three months ended March 31, 2024 and 2023, there were no dilutive shares outstanding.

Related parties and transactions

The Company identifies related parties, and accounts for and discloses related party transactions in accordance with ASC 850, “Related Party Disclosures” and other relevant ASC standards.

Parties, which can be a corporation or individual, are considered related if the Company has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operational decisions. Corporations are also considered to be related if they are subject to common control or common significant influence.

Transactions between related parties commonly occurring in the normal course of business are considered to be related party transactions. Transactions between related parties are also considered to be related party transactions even though they may not be given accounting recognition.

Shipping and handling costs

Shipping and handling costs, which are associated with shipping and delivery of vehicles to automobile dealers, are expensed as incurred and are included in selling expenses in the unaudited condensed consolidated statements of operations. Total shipping and handling expenses were $20,610 and $213,460 for the three months ended March 31, 2024 and 2023, respectively.

Segment reporting

The Company uses the management approach in determining reportable operating segments. The management approach considers the internal reporting used by the Company’s chief operating decision maker for making operating decisions about the allocation of resources of the segment and the assessment of its performance in determining the Company’s reportable operating segments. Management has determined that the Company has two operating segments—the parallel-import vehicle segment and the logistics and warehousing segment.

ACCOUNTS RECEIVABLE - Components (Details)	3 Months Ended		12 Months Ended
ACCOUNTS RECEIVABLE - Components (Details)	Mar. 31, 2024 USD ($) agreement	Mar. 31, 2023 agreement	Dec. 31, 2023 USD ($) agreement	Dec. 31, 2023 USD ($) company
ACCOUNTS RECEIVABLE
Accounts receivable	$ 4,899,545
Less: allowance for doubtful accounts	0		$ 0	$ 0
Total accounts receivable	4,935,009		6,494,695	6,494,695
Third party \| Over 150 days
ACCOUNTS RECEIVABLE
Accounts receivable	3,200,000		$ 4,100,000	$ 4,100,000
Overdue balance collected	$ 1,800,000
Letters of credit
ACCOUNTS RECEIVABLE
Number of third-party lending companies	3	3	2	2
Pledged as collateral \| Letters of credit
ACCOUNTS RECEIVABLE
Accounts receivable	$ 0		$ 1,084,775	$ 1,084,775

ACCOUNTS RECEIVABLE

3 Months Ended

Mar. 31, 2024

ACCOUNTS RECEIVABLE

ACCOUNTS RECEIVABLE

NOTE 3 — ACCOUNTS RECEIVABLE

Accounts receivable consisted of the following:


	March 31,		December 31,
	2024		2023
Accounts receivable
Parallel-import Vehicles	$	4,899,545	$	6,494,695
Logistics and Warehousing		35,464		—
Less: allowance for doubtful accounts		—		—
Total accounts receivable	$	4,935,009	$	6,494,695

The Company’s accounts receivable primarily include balances generated from (i) selling parallel-import vehicles to both domestic and overseas parallel-import car dealers and (ii) providing logistics and warehousing services to both domestic and overseas customers, which have not been collected as of the balance sheet dates.

Parallel-import Vehicle Segment

The Company identified four accounts with deferred payments overdue for over 150 days, totaling approximately $3.2 million of the $4.1 million total deferred payment balances as of March 31, 2024, which were backed by third-party guarantees. During the first quarter of 2024, the Company successfully collected approximately $1.8 million of the December 31, 2023, overdue balance. After a thorough assessment, these accounts were classified as fully collectible despite the delay. As of March 31, 2024, the following table summarizes the Company’s accounts receivable aging:


	March 31,
	2024
Accounts receivable aging:
Less than 150 days	$	813,799
151-180 days		459,598
181-210 days		600,311
Over 210 days		3,025,837
Less: allowance for doubtful accounts		—
Total accounts receivable	$	4,899,545

The accounts receivable transactions in connection with letters of credit with book value of $1,084,775 were pledged as collateral to guarantee the Company’s borrowings from two third-party lending companies as of December 31, 2023 (see Note 9). There were none pledged as collateral as of March 31, 2024.

Logistics and Warehousing Segment

All accounts receivable were aged 90 days or less.

INCOME TAXES - Reconciliations of Statutory Income Tax Rate (Details)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
INCOME TAXES
Federal statutory tax rate	21.00%	21.00%
State statutory tax rate	0.00%	10.70%
Non-deductible expenses	8.10%	0.00%
Deferred True-up	0.00%	(3.20%)
Effective tax rate	29.10%	28.50%

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

3 Months Ended

Mar. 31, 2024

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Summary of the company's total revenue by geographic area


	Three Months Ended
	March 31,
	2024		2023
	(Unaudited)		(Unaudited)
U.S. domestic market	$	49,479	$	1,658,235
Overseas market		1,485,306		8,556,207
Total revenue	$	1,507,785	$	10,214,442

Schedule of disaggregation of revenue


	Three Months Ended
	March 31,
	2024		2023
	(Unaudited)		(Unaudited)
Revenue from Parallel-Import Vehicles
U.S. domestic market	$	—	$	1,658,235
Overseas market		1,430,951		8,556,207
Revenue from Logistics and Warehousing
U.S. domestic market		49,479		—
Overseas market		27,355		—
Total revenue	$	1,507,785	$	10,214,442

ACQUISITION - Final valuation of assets acquired and liabilities assumed (Details) - USD ($)	Mar. 31, 2024	Jan. 24, 2024
Acquired assets acquired and (liabilities) assumed:
Goodwill	$ 447,984
Edward Transit Express Group Inc.
Acquired assets acquired and (liabilities) assumed:
Cash		$ 79,883
Accounts Receivable		47,354
Other Current Assets		42,685
Right-of-use Lease Asset		645,625
Fixed Assets		60,795
Goodwill		437,382
Other Noncurrent Assets		27,000
Accounts Payable		(34,686)
Accrued Expenses Payable		(20,933)
Operating Lease Liability, Current		(94,548)
Operating Lease Liability, Long Term		(506,557)
Total Purchase Consideration		1,200,000
Edward Transit Express Group Inc. \| Developed Technology
Acquired assets acquired and (liabilities) assumed:
Finite lived intangible assets		120,000
Edward Transit Express Group Inc. \| Customer Relationships
Acquired assets acquired and (liabilities) assumed:
Finite lived intangible assets		360,000
Edward Transit Express Group Inc. \| Trade Names
Acquired assets acquired and (liabilities) assumed:
Finite lived intangible assets		$ 36,000

ACQUISITION (Details) - USD ($) $ in Millions	Jan. 24, 2024	Feb. 02, 2024
Class A common stock
ACQUISITION
Fair value of stock consideration		$ 9.0
Edward Transit Express Group Inc.
ACQUISITION
Percentage of agreed ownership interest to acquire	100.00%
Cash consideration	$ 1.5
Purchase price	0.3
Edward Transit Express Group Inc. \| Class A common stock
ACQUISITION
Common stock	1.2
Fair value of stock consideration	$ 9.0
Shares issued	1,272,329

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References + Details

INCOME TAXES - Additional Information (Details) - USD ($)	12 Months Ended
	Dec. 31, 2022	Mar. 31, 2024	Dec. 31, 2023
INCOME TAXES
Net operating loss carry-forwards		$ 291,272	$ 47,905
Operating Loss Carryforwards		1,008,541
State operating loss carryforwards		1,138,074
Maximum income tax threshold amount	$ 27,000,000
Domestic
INCOME TAXES
Net operating loss carry-forwards		$ 819,468	$ 47,905

STOCKHOLDERS' EQUITY - Fair Value of Warrants (Details) - USD ($)		3 Months Ended
	Mar. 27, 2024	Mar. 31, 2024	Mar. 04, 2024	Feb. 02, 2024
STOCKHOLDERS' EQUITY
Termination of equity-classified warrant		$ 78,125
Class A common stock
STOCKHOLDERS' EQUITY
Fair value of stock consideration				$ 9,000,000
August 2023 - underwriter warrants
STOCKHOLDERS' EQUITY
Exercise Price		$ 5.00
Total Common Shares Issuable		62,500
March 2024 - Terminated warrants \| Maxim Group LLC
STOCKHOLDERS' EQUITY
Number of outstanding warrants or rights terminated			62,500
Termination of equity-classified warrant	$ 78,125

LEASES

3 Months Ended

Mar. 31, 2024

LEASES

LEASES

NOTE 7 — LEASES

The Company leases office spaces from various third parties under non-cancelable operating leases, with terms ranging from 12 to 55 months. The Company considers the renewal or termination options that are reasonably certain to be exercised in the determination of the lease term and initial measurement of ROU assets and lease liabilities. Lease expenses are recognized on a straight-line basis over the lease term. Leases with an initial term of 12 months or less are not recorded on the balance sheet.

The Company determines whether a contract is or contains a lease at the inception of the contract and whether that lease meets the classification criteria of a finance or operating lease. When available, the Company uses the rate implicit in the lease to discount lease payments to present value; however, most of the Company’s leases do not provide a readily determinable implicit rate. Therefore, the Company discounts lease payments based on an estimate of its incremental borrowing rate.

The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants.

On April 28, 2023, the Company entered a First Amendment to Lease Agreement (the “Amended Lease”) with one of its landlords, which amended a previous lease agreement between the two parties, whereby the Company leases office space from the landlord with an initial lease term from December 1, 2020 to December 31, 2023. Pursuant to the Amended Lease, the initial lease term was extended for a period commencing January 1, 2024 and expiring February 28, 2027, unless sooner terminated as provided in the Amended Lease. The Company was also granted the option to extend the lease term for another three years starting from March 1, 2027 and ending February 28, 2030.

The Company’s subsidiary, Edward, entered into a Second Amendment to Lease Agreement with its landlord on May 22, 2023, which amended a previous lease agreement and the first amendment between the parties, whereby Edward leases a warehouse from the landlord with an initial lease term from June 1, 2013 to July 31, 2018. The lease term was extended to July 31, 2023 by the first amendment. The second amendment further extended the lease to August 31, 2028. The table below presents the operating lease related assets and liabilities recorded on the balance sheets.


	March 31, 2024		December 31, 2023
Right-of-use assets	$	797,888	$	190,823

Operating lease liabilities – current	$	148,916	$	39,703
Operating lease liabilities – non-current		634,538		151,121
Total operating lease liabilities	$	783,454	$	190,824

The weighted average remaining lease terms and discount rates for all operating leases were as follows as of March 31, 2024 and December 31, 2023:


	March 31, 2024		December 31, 2023
Remaining lease term and discount rate:
Weighted average remaining lease term (years)	4.08		3.17
Weighted average discount rate *	14.5	%	17.8	%

*The Company used weighted average incremental borrowing rate of 14.5% per annum for its lease contracts based on the Company’s current borrowings from various financial institutions.

During the three months ended March 31, 2024 and 2023, the Company incurred total operating lease expenses of $86,205 and $55,605, respectively.

As of March 31, 2024, future maturities of lease liabilities are as follows:


Fiscal Years	Amount
2024 (excluding the three months ended March 31, 2024)	$	183,952
2025		253,349
2026		262,664
2027		199,776
Thereafter		126,976
Total lease payments		1,026,717
Less: imputed interest		(243,263)
Present value of lease liabilities	$	783,454

INVENTORIES (Details) - USD ($)	Mar. 31, 2024	Dec. 31, 2023
INVENTORIES
Inventory reserve	$ 0	$ 0

LONG-TERM BORROWINGS - Thread Capital (Details) - Thread Capital - USD ($)	Dec. 01, 2022	Nov. 30, 2022	May 18, 2021	May 15, 2020
LONG-TERM BORROWINGS
Face amount of borrowings			$ 171,300	$ 50,000
Fixed interest rate	5.50%	0.25%		5.50%
Monthly installment payment	$ 2,721
Maximum
LONG-TERM BORROWINGS
Face amount of borrowings			$ 221,300

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

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+ Details

RELATED PARTY TRANSACTIONS (Details) - USD ($)	3 Months Ended
RELATED PARTY TRANSACTIONS (Details) - USD ($)	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
RELATED PARTY TRANSACTIONS
Repayment made to a related party	$ 13,423
Due to a related party			$ 13,423
Related party \| Mr. Huan Liu
RELATED PARTY TRANSACTIONS
Repayment made to a related party	13,423	$ 0
Due to a related party	$ 0

LONG-TERM BORROWINGS - Interest expense (Details) - USD ($)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
LONG-TERM BORROWINGS
Interest expenses	$ 7,552	$ 7,945

PROPERTY, NET (Details)	Mar. 31, 2024 USD ($)
PROPERTY, NET
Total property	$ 60,795
Less accumulated depreciation	(2,171)
Property, net	58,624
Leasehold improvements
PROPERTY, NET
Total property	$ 60,795
Leasehold improvements \| Minimum
PROPERTY, NET
Estimated useful life (in years)	3 years
Leasehold improvements \| Maximum
PROPERTY, NET
Estimated useful life (in years)	6 years

LONG-TERM BORROWINGS (Tables)

3 Months Ended

Mar. 31, 2024

LONG-TERM BORROWINGS

Summary of long-term borrowings


	March 31,		December 31,
	2024		2023
Small Business Administration⁽¹⁾	$	476,516	$	479,124
Thread Capital Inc.⁽²⁾		193,028		198,488
Total long-term borrowings	$	669,544	$	677,612

Current portion of long-term borrowings	$	33,301	$	32,887

Non-current portion of long-term borrowings	$	636,243	$	644,725

(1)

On May 24, 2020, the Company entered into a loan agreement with the U.S. Small Business Administration (the “SBA”), an agency of the U.S. Government, to borrow $150,000 for 30 years, with a maturity date of May 23, 2050. Under the terms of the SBA loan, the loan proceeds are used as working capital to alleviate economic injury caused by the COVID-19 pandemic. The loan bears a fixed interest rate of 3.75% per annum. Beginning 12 months from the date of this loan agreement, the Company is required to make a monthly installment payment of $731 within the term of loan, with the last installment to be paid in May 2050.

On March 16, 2022, the Company entered into an amended agreement with SBA to borrow an additional $350,000 for 30 years as working capital to alleviate economic injury caused by the COVID-19 pandemic. In the aggregate, the Company’s borrowings amounted to $500,000 with a maturity date of May 23, 2050. The amended loan bears a fixed interest rate of 3.75% per annum. Beginning from March 2022, 24 months from the date of the original loan agreement, the Company is required to make a new monthly installment payment of $2,485 within the remaining term of loan, with the last installment to be paid in May 2050.

(2)

On May 15, 2020, the Company entered into a loan agreement with Thread Capital Inc. (“Thread Capital”) to borrow $50,000 as working capital with a maturity date of November 1, 2024. The loan bore a fixed interest rate of 5.50% per annum. This loan agreement was subsequently terminated on May 17, 2021, and the Company entered into a new loan agreement with Thread Capital to borrow an additional $171,300 as working capital. In the aggregate, the Company’s borrowings from Thread Capital amounted to $221,300 with a maturity date of May 1, 2031. The interest was charged at a fixed annual interest rate of 0.25% between June 1, 2021 and November 30, 2022. Beginning from December 1, 2022, the loan bears a fixed annual interest rate of 5.5%, and the Company is required to make a monthly installment payment of $2,721 within the remaining term of loan, with the last installment to be paid in May 2031.

SBA

LONG-TERM BORROWINGS

Summary of future maturities of the loan

The future maturities of the loan from SBA as of March 31, 2024 were as follows:


Fiscal Years	Future repayment
2024 (excluding the three months ended March 31, 2024)	$	7,984
2025		11,024
2026		11,474
2027		11,942
2028		12,429
Thereafter		421,663
Total	$	476,516

Thread Capital

LONG-TERM BORROWINGS

Summary of future maturities of the loan

The future maturities of the loan from Thread Capital as of March 31, 2024 were as follows:


Fiscal Years	Future repayment
2024 (excluding the three months ended March 31, 2024)	$	16,835
2025		23,553
2026		24,881
2027		26,285
2028		27,768
Thereafter		73,706
Total	$	193,028

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

+ Details

- Definition

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

+ References

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+ Details

ACQUISITION

3 Months Ended

Mar. 31, 2024

ACQUISITION

ACQUISITION

NOTE 8 — ACQUISITION

On January 24, 2024, Cheetah Net entered into a Stock Purchase Agreement to acquire 100% of Edward. The transaction closed on February 2, 2024. The gross purchase price was $1.5 million. Consideration transferred consisted of $0.3 million of cash and the issuance of 1,272,329 shares of Cheetah Net’s Class A common stock with a fair value of $1.2 million. In accordance with ASC 805, Business Combinations (“ASC 805”), it was determined that the fair value of the stock consideration was $9 million at the time of the transaction, reflecting a comprehensive evaluation of the stock’s market conditions and liquidity impacted by lock-up period restrictions.

The purchase price was on a preliminary basis as of February 2, 2024. Assets acquired and liabilities assumed were recorded at estimated fair values based on management’s estimates, available information, and supportable assumptions that management considered reasonable. Certain estimated values for the acquisition, including goodwill and deferred taxes, are not yet finalized, and the preliminary purchase price allocations are subject to change as the Company completes its analysis. The final valuation of assets acquired and liabilities assumed may be different from the estimated values shown below.


Acquired assets acquired and (liabilities) assumed:
Cash	$	79,883
Accounts Receivable		47,354
Other Current Assets		42,685
Right-of-use Lease Asset		645,625
Fixed Assets		60,795
Developed Technology		120,000
Customer Relationships		360,000
Trade Names		36,000
Goodwill		437,382
Other Noncurrent Assets		27,000
Accounts Payable		(34,686)
Accrued Expenses Payable		(20,933)
Operating Lease Liability, Current		(94,548)
Operating Lease Liability, Long Term		(506,557)
Total Purchase Consideration	$	1,200,000

The fair value of the accounts receivable, other assets, and liabilities assumed approximates their gross contractual amounts. The fair value of the fixed assets approximates its net carrying value as of the acquisition date. The fair values of intangible assets, including developed technology, customer relationships, and trade names were determined using assumptions that are representative of those a market participant would use in estimating fair value.

UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Cash flows from operating activities:
Net Loss	$ (608,930)	$ (107,933)
Adjustments to reconcile net income to net cash provided by operating activities:
Amortization of operating lease right-of-use assets	38,560	46,865
Depreciation	2,171
Amortization of Intangible Assets	8,714
Deferred tax provision	(247,343)	(56,409)
Changes in operating assets and liabilities:
Accounts receivable	1,607,041	4,321,099
Inventory	1,314,973	(1,676,792)
Other receivables	(488,560)	(161,901)
Prepaid expenses and other current assets	(34,362)	213,661
Deferred revenue		1,554,030
Other payables and other current liabilities	111,928	23,456
Operating lease liabilities	(8,475)	(49,365)
Net cash provided by operating activities	1,695,717	4,106,711
Cash flows from investing activities:
Acquisition of business, net of cash acquired	(220,117)
Loans made to third parties	172,500
Net cash used in investing activities	(47,617)
Cash flows from financing activities:
Cash paid for warrant termination	(78,125)
Proceeds from issuance of common stock under private placement transaction		700,000
Repayments of inventory financing		(3,229,800)
Proceeds from letter of credit financing	25,971	6,491,954
Repayments of letter of credit financing	(1,030,536)	(8,016,326)
Repayments of loans from dealers finance		(41,747)
Repayments of premium finance	(73,713)
Repayments of long-term borrowings	(8,068)	(8,503)
Repayments made to a related party	(13,423)
Net cash used in financing activities	(1,177,894)	(4,104,422)
Net increase in cash	470,206	2,289
Cash, beginning of period	432,998	58,381
Cash, end of period	903,204	60,670
Supplemental cash flow information
Cash paid for interest	7,552	$ 130,136
Noncash Financing and investing activities:
Fair value of common stock issued for acquisition	$ 900,000

LONG-TERM BORROWINGS - Future maturities of the loan from Thread Capital (Details) - USD ($)	Mar. 31, 2024	Dec. 31, 2023
Future maturities of the loan
Total	$ 669,544	$ 677,612
Thread Capital
Future maturities of the loan
2024 (excluding the three months ended March 31, 2024)	16,835
2025	23,553
2026	24,881
2027	26,285
2028	27,768
Thereafter	73,706
Total	$ 193,028	$ 198,488

- Definition

Amount, after deduction of unamortized premium (discount) and debt issuance cost, of long-term debt. Excludes lease obligation.

+ References + Details

LETTER OF CREDIT FINANCING ("LC FINANCING")

3 Months Ended

Mar. 31, 2024

LETTER OF CREDIT FINANCING ("LC FINANCING")

LETTER OF CREDIT FINANCING ("LC FINANCING")

NOTE 9 — LETTER OF CREDIT FINANCING (“LC FINANCING”)

The Company entered into a series of loan agreements with three third-party companies for working capital funding purposes during the three months ended March 31, 2024 and 2023. Pursuant to the agreements, loans payable from LC financing were collateralized by letters of credit from overseas sales of parallel-import vehicles. Interest expense is calculated based on the actual number of days the loan was outstanding and payable upon settlement, and the Company is charged an interest rate of 18.0% per annum.

The LC financing amounted to $1,004,565 as of December 31, 2023. There was no balance as of March 31, 2024. The interest expense for LC financing was $23,123 and $330,424 for the three months ended March 31, 2024 and 2023, respectively. The accounts receivable transactions in connection with letters of credit having book values of $1,084,775 were pledged as collateral to guarantee the Company’s borrowings from these two third-party lending companies as of December 31, 2023. There were none pledged as collateral as of March 31, 2024. (see Note 3).

INCOME TAXES - Components of Deferred Tax Assets (Details) - USD ($)	Mar. 31, 2024	Dec. 31, 2023
Deferred tax assets:
Net operating loss carry-forwards	$ 291,272	$ 47,905
Others	(6,626)
Total deferred tax assets	$ 284,646	$ 47,905

STOCKHOLDERS' EQUITY (Tables)

3 Months Ended

Mar. 31, 2024

STOCKHOLDERS' EQUITY

Schedule of fair value of the warrants


					Total Common
					Shares Issuable as of
			Exercise		March 31,
Title of Warrant	Date Issued	Expiry Date	Price		2024
Equity-classified warrants

August 2023 – underwriter warrants	8/3/2023	07/31/2026	$	5.00	62,500

INVENTORIES

3 Months Ended

Mar. 31, 2024

INVENTORIES

INVENTORIES

NOTE 4 — INVENTORIES

Inventories consist of new vehicles and are stated at the lower of cost or net realizable value using the specific identification method. No inventory reserve was recorded as of March 31, 2024 and December 31, 2023.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Revenue recognition - Geographic information (Details) - USD ($)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Geographic information
Total Revenues	$ 1,507,785	$ 10,214,442
U.S. domestic market
Geographic information
Total Revenues	49,479	1,658,235
Overseas market
Geographic information
Total Revenues	$ 1,485,306	$ 8,556,207

- Definition

+ References

+ Details

LEASES - Operating lease related assets and liabilities recorded on the balance sheets (Details) - USD ($)	3 Months Ended
	Mar. 31, 2024	Dec. 31, 2023
LEASES
Lessee, Operating Lease, Existence of Option to Extend [true false]	true
Extension term of the operating lease	3 years
Right-of-use assets	$ 797,888	$ 190,823
Operating lease liabilities - current	148,916	39,703
Operating lease liabilities - non-current	634,538	151,121
Total operating lease liabilities	$ 783,454	$ 190,824
Minimum
LEASES
Term of the operating lease	12 months
Maximum
LEASES
Term of the operating lease	55 months

ORGANIZATION AND BUSINESS DESCRIPTION (Tables)

3 Months Ended

Mar. 31, 2024

ORGANIZATION AND BUSINESS DESCRIPTION

Schedule of details of the subsidiaries of the company

Details of the subsidiaries of the Company as of March 31, 2024 are set out below:


Name of Entity	Date of Incorporation	State of Incorporation	% of Ownership	Principal Activities
Cheetah Net	August 9, 2016	North Carolina	Parent, 100%	Parallel-import vehicle dealership business
Subsidiaries of the parent:
Allen-Boy	August 31, 2016	Delaware	100%	Parallel-import vehicle dealership business

Fairview	December 5, 2018	North Carolina	100%	Parallel-import vehicle dealership business

Pacific	January 17, 2019	New York	100%	Parallel-import vehicle dealership business

Limousine	February 10, 2021	South Carolina	100%	Parallel-import vehicle dealership business

Entour	April 8, 2021	New York	100%	Parallel-import vehicle dealership business

Logistics	October 12, 2022	New York	100%	Parallel-import vehicle dealership business

Edward	July 14, 2010	California	100%	Logistics and warehousing business

STOCKHOLDERS' EQUITY

3 Months Ended

Mar. 31, 2024

STOCKHOLDERS' EQUITY

STOCKHOLDERS' EQUITY

NOTE 16 — STOCKHOLDERS’ EQUITY

Common Stock

Cheetah Net was established under the laws of the State of North Carolina on August 9, 2016. Under the Company’s amended and restated articles of incorporation on July 11, 2022, the total authorized number of shares of common stock is 100,000,000 with par value of $0.0001, which consists of 91,750,000 shares of Class A common stock and 8,250,000 shares of Class B common stock. Holders of Class A common stock and Class B common stock have the same rights except for voting and conversion rights. In respect of matters requiring the votes of stockholders, each share of Class A common stock is entitled to one vote, and each share of Class B common stock is entitled to 15 votes. Class B common stock is convertible into Class A common stock at any time after issuance at the option of the holder on a one-to-one basis. Class A common stock is not convertible into shares of any other class. The numbers of authorized and outstanding common stock were retroactively applied as if the transaction occurred at the beginning of the period presented.

On June 27, 2022, the Company entered into a subscription agreement with a group of investors (the “Investors”) whereby the Company agreed to sell, and the Investors agreed to purchase, up to 1,666,000 shares of Class A common stock at a purchase price of $1.80 per share. These Investors are unrelated parties to the Company. The gross proceeds were approximately $3.0 million, before deducting offering expenses of approximately $0.3 million. The net proceeds were approximately $2.7 million, of which approximately $1.2 million was received in 2022 and $1.2 million in 2023, for a total receipt of approximately $2.4 million. After negotiations between Rapid Proceed Limited (“Rapid”), one of the Investors, and the Company regarding the fund’s release terms, an agreement was reached on November 2, 2023, stipulating that the outstanding $0.6 million would be paid by Rapid within six months following the Company’s initial public offering (“IPO”). On March 13, 2024, considering the impact of market volatility and the long-term benefits of continued cooperation, Rapid requested and the Company agreed to extend the payment due date of the outstanding $0.6 million to September 30, 2024.

On August 3, 2023, the Company closed its IPO of 1,250,000 shares of Class A common stock at a public offering price of $4.00 per share, for aggregate gross proceeds of $5.0 million before deducting underwriting discounts and other offering expenses, including the issuance to the underwriter of warrants to purchase 62,500 shares of common stock (the “Warrants”), with an exercise price of $5.00 per share. The Company’s Class A common stock began trading on the Nasdaq Capital Market under the ticker symbol “CTNT” on August 1, 2023.

On January 24, 2024, the Company entered into a stock purchase agreement with Edward and Juguang Zhang, Edward’s sole stockholder (the “Seller”). Pursuant to the Agreement, the Company agreed to acquire 100% of the shares in Edward from the Seller (the “Acquisition”). On February 2, 2024, the Company closed the Acquisition for a total purchase price that included a cash payment of $300,000 and the issuance of 1,272,329 shares of the Company’s unregistered Class A common stock, initially valued at $1,200,000. Subsequent valuation determined the fair value of these shares to be $9 million. Please see Note 8 for further details. As of March 31, 2024, there were 10,938,329 shares of Class A common stock issued and outstanding.

As of March 31, 2024, there were 10,938,329 shares of Class A common stock and 8,250,000 shares of Class B common stock issued and outstanding.

Warrants

The Company accounts for stock warrants as either equity instruments or derivative liabilities depending on the specific terms of the warrant agreement. The Warrants are equity-classified as a result of being indexed to the Company’s Class A common stock and meeting certain equity classification criteria, and the instruments will not be remeasured in subsequent periods as long as the instruments continue to meet these accounting criteria. The fair value of the Warrants was recorded to additional paid-in capital within stockholders’ equity.


					Total Common
					Shares Issuable as of
			Exercise		March 31,
Title of Warrant	Date Issued	Expiry Date	Price		2024
Equity-classified warrants

August 2023 – underwriter warrants	8/3/2023	07/31/2026	$	5.00	62,500

Termination of Warrants

On March 4, 2024, the Company and Maxim Group LLC signed an agreement to terminate 62,500 outstanding warrants that had previously been granted to Maxim Group LLC. On March 27, 2024, the Company completed the payment of termination fees totaling $78,125, which was recorded as an offset to additional paid in capital within stockholders’ equity.

- Definition

The entire disclosure for equity.

+ References

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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 11: http://www.xbrl.org/2003/role/disclosureRef
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Reference 12: http://www.xbrl.org/2003/role/disclosureRef
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Reference 13: http://www.xbrl.org/2003/role/disclosureRef
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Reference 14: http://www.xbrl.org/2003/role/disclosureRef
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Reference 15: http://www.xbrl.org/2003/role/disclosureRef
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Reference 17: http://www.xbrl.org/2003/role/disclosureRef
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Reference 18: http://www.xbrl.org/2003/role/disclosureRef
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Reference 19: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

INCOME TAXES (Tables)

3 Months Ended

Mar. 31, 2024

INCOME TAXES

Schedule of components of income tax provision


	Three Months Ended
	March 31,
	2024		2023
Current:
Federal	$	(128)	$	11,917
State		5,156		1,504
Total current income tax provision		5,028		13,421
Deferred:
Federal		(166,147)		(34,168)
State		(84,595)		(22,241)
Total deferred income tax expenses		(250,742)		(56,409)
Total income tax benefit	$	(245,714)	$	(42,988)

Schedule of reconciliations of statutory income tax rate to effective income tax rate


	For the Three Months Ended
	March 31,
	2024			2023
Federal statutory tax rate	$	21.0	%	$	21.0	%
State statutory tax rate		(0.0)	%		10.7	%
Non-deductible expenses		8.1	%		0.0	%
Deferred true-up		0.0	%		(3.2)	%
Effective tax rate	$	29.1	%	$	28.5	%

Schedule of components of deferred tax assets


	March 31,		December 31,
	2024		2023

Deferred tax assets:
Net operating loss carry forwards		291,272		47,905
Others		(6,626)		—
Total deferred tax assets		284,646		47,905

PROPERTY, NET

3 Months Ended

Mar. 31, 2024

PROPERTY, NET

PROPERTY, NET

NOTE 6- PROPERTY, NET

Property consisted of the following:


	Estimated Useful Life
	in Years	March 31, 2024		December 31, 2023
Leasehold improvements	3-6	$	60,795		—
Total property			60,795		—
Less accumulated depreciation			(2,171)		—
Property, net		$	58,624	$	—

OTHER RECEIVABLES (Details) - USD ($)	Mar. 31, 2024	Dec. 31, 2023
Subtotal	$ 942,165	$ 410,920
Total Other Receivables	942,165	410,920
Third party
Others	672,984
Receivables collected	672,984
Parallel-import Vehicle
Vehicle Deposit	116,300	162,159
Rent Deposit	22,095	22,095
Sales Tax Refundable	82,928	217,892
Interest Receivable	22,333	5,423
Others	673,424	3,351
Receivables collected	673,424	$ 3,351
Logistics and Warehousing
Custom Duties Receivable	9,419
Others	15,666
Receivables collected	$ 15,666

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Total Revenues	$ 1,507,785	$ 10,214,442
COST OF REVENUES
Cost of vehicles	1,314,973	8,504,503
Fulfillment expenses	125,261	566,882
Ocean freight service cost	42,500
Total cost of revenues	1,482,734	9,071,385
GROSS PROFIT	25,051	1,143,057
OPERATING EXPENSES
Selling expenses	78,840	277,783
General and administrative expenses	767,642	581,070
Total operating expenses	846,482	858,853
INCOME (LOSS) FROM OPERATIONS	(821,431)	284,204
OTHER INCOME (EXPENSE)
Interest expenses, net	(62,765)	(437,059)
Other income, net	29,552	1,934
Total other expense, net	(33,213)	(435,125)
LOSS BEFORE PROVISION FOR INCOME TAXES	(854,644)	(150,921)
Income tax benefit	(245,714)	(42,988)
NET LOSS	$ (608,930)	$ (107,933)
Loss per share - basic (in dollars per share)	$ (0.03)	$ (0.01)
Loss per share - diluted (in dollars per share)	$ (0.03)	$ (0.01)
Weighted average shares - basic (in shares)	18,740,917	16,666,000
Weighted average shares - diluted (in shares)	18,740,917	16,666,000
Parallel-import Vehicle
Total Revenues	$ 1,430,951	$ 10,214,442
Logistics and Warehousing
Total Revenues	$ 76,834

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	Mar. 31, 2024
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

INCOME TAXES - Components of Income Tax Provision (Details) - USD ($)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Current:
Federal	$ (128)	$ 11,917
State	5,156	1,504
Total current income tax provision	5,028	13,421
Deferred:
Federal	(166,147)	(34,168)
State	(84,595)	(22,241)
Total deferred income tax provision	(250,742)	(56,409)
Total income tax provision	$ (245,714)	$ (42,988)

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References + Details

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

3 Months Ended

Mar. 31, 2024

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of presentation

Uses of estimates

Cash

Cash includes deposits held by banks that can be added or withdrawn without limitation.

Depreciation on property, plant, and equipment is recognized on a straight-line basis, based on the respective estimated useful life of the assets.

Fair value of financial instruments

●	Level 1 — inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.

●

●	Level 3 — inputs to the valuation methodology are unobservable.

Leases

Goodwill and Intangible Assets

Impairment of Long-lived assets

Revenue recognition

Contract balances and remaining performance obligations

The Company did not have any contract assets or liabilities as of March 31, 2024 and December 31, 2023.

Disaggregation of Revenue


	Three Months Ended
	March 31,
	2024		2023
	(Unaudited)		(Unaudited)
Revenue from Parallel-Import Vehicles
U.S. domestic market	$	—	$	1,658,235
Overseas market		1,430,951		8,556,207
Revenue from Logistics and Warehousing
U.S. domestic market		49,479		—
Overseas market		27,355		—
Total revenue	$	1,507,785	$	10,214,442

Geographic information

The summary of the Company’s total revenue by geographic area for the three months ended March 31, 2024 and 2023 was as follows:


	Three Months Ended
	March 31,
	2024		2023
	(Unaudited)		(Unaudited)
U.S. domestic market	$	49,479	$	1,658,235
Overseas market		1,485,306		8,556,207
Total revenue	$	1,507,785	$	10,214,442

Cost of revenues

Parallel-import Vehicle Segment

Logistics and Warehousing Segment

Cost of logistics and warehousing service revenue mainly includes the cost of freight and fulfillment expenses.

Income taxes

Earnings (Loss) per share

Related parties and transactions

The Company identifies related parties, and accounts for and discloses related party transactions in accordance with ASC 850, “Related Party Disclosures” and other relevant ASC standards.

Shipping and handling costs

Segment reporting

CONCENTRATIONS

3 Months Ended

Mar. 31, 2024

CONCENTRATIONS

CONCENTRATIONS

NOTE 15 — CONCENTRATIONS

Political and economic risk

The operations of the Company are in the U.S. and the Company’s primary market is in the PRC. Accordingly, the Company’s business, financial condition, and results of operations may be influenced by political, economic, and legal environments in the U.S. and the PRC, as well as by the general state of the U.S. and the PRC economy. The Company’s results may be adversely affected by changes in the political, regulatory, and social conditions in the U.S. and the PRC. Although the Company has not experienced losses from these situations and believes that it is in compliance with existing laws and regulations, including its organization and structure disclosed in Note 1, such experience may not be indicative of future results.

Credit risk

As of March 31, 2024 and December 31, 2023, $903,204 and $432,998, respectively, of the Company’s cash was on deposit at financial institutions in the U.S., which are insured by the Federal Deposit Insurance Corporation subject to certain limitations. The Company has not experienced any losses in such accounts.

Accounts receivable are typically unsecured and derived from revenue earned from parallel-import car dealers, thereby exposing the Company to credit risk. This risk is mitigated by the Company’s assessment of its parallel-import car dealers’ creditworthiness and its ongoing monitoring of outstanding balances.

Concentrations

The Company’s major customers are parallel-import automobile dealers. For the three months ended March 31, 2024, one parallel-import car dealer accounted for 100% of the Company’s revenue from parallel-import vehicles. For the three months ended March 31, 2023, three parallel-import car dealers accounted for 100% (55.2%, 28.6%, and 16.2%, respectively) of the Company’s total revenue.

As of March 31, 2024, three parallel-import car dealers in our parallel-import vehicle segment accounted for 97.4% (54.5%, 27.3%, and 15.6%, respectively) of the accounts receivable balance.

As of December 31, 2023, three parallel-import car dealers accounted for approximately 98.0% (58.1%, 28.2%, and 11.7%, respectively) of the accounts receivable balance.

During the three months ended March 31, 2024, the Company did not purchase any vehicles. During the three months ended March 31, 2023, one U.S.-based automobile dealership accounted for approximately 10.2% of the Company’s total purchases.

ACCOUNTS RECEIVABLE - Aging (Details) - USD ($)	Mar. 31, 2024	Dec. 31, 2023
ACCOUNTS RECEIVABLE
Accounts receivable	$ 4,899,545
Less: allowance for doubtful accounts	0	$ 0
Total accounts receivable	4,935,009	6,494,695
Parallel-import Vehicle
ACCOUNTS RECEIVABLE
Accounts receivable	4,899,545	$ 6,494,695
Logistics and Warehousing
ACCOUNTS RECEIVABLE
Accounts receivable	35,464
Less than 150 days
ACCOUNTS RECEIVABLE
Accounts receivable	813,799
151-180 days
ACCOUNTS RECEIVABLE
Accounts receivable	459,598
181-210 days
ACCOUNTS RECEIVABLE
Accounts receivable	600,311
Over 210 days
ACCOUNTS RECEIVABLE
Accounts receivable	$ 3,025,837

ORGANIZATION AND BUSINESS DESCRIPTION - Subsidiaries of the company (Details)	Mar. 31, 2024
Cheetah Net
ORGANIZATION AND BUSINESS DESCRIPTION
% of Ownership	100.00%
Allen-Boy
ORGANIZATION AND BUSINESS DESCRIPTION
% of Ownership	100.00%
Fairview
ORGANIZATION AND BUSINESS DESCRIPTION
% of Ownership	100.00%
Pacific
ORGANIZATION AND BUSINESS DESCRIPTION
% of Ownership	100.00%
Limousine
ORGANIZATION AND BUSINESS DESCRIPTION
% of Ownership	100.00%
Entour
ORGANIZATION AND BUSINESS DESCRIPTION
% of Ownership	100.00%
Logistics
ORGANIZATION AND BUSINESS DESCRIPTION
% of Ownership	100.00%
Edward
ORGANIZATION AND BUSINESS DESCRIPTION
% of Ownership	100.00%

OTHER RECEIVABLES

3 Months Ended

Mar. 31, 2024

OTHER RECEIVABLES

OTHER RECEIVABLES

NOTE 5 — OTHER RECEIVABLES

Other receivables consisted of the following:


	March 31, 2024		December 31, 2023
	(Unaudited)
Parallel-import Vehicles:
Vehicle Deposit⁽¹⁾	$	116,300	$	162,159
Rent Deposit		22,095		22,095
Sales Tax Refundable⁽²⁾		82,928		217,892
Interest Receivable		22,333		5,423
Others⁽³⁾		673,424		3,351
Logistics and Warehousing
Custom Duties Receivable ⁽⁴⁾		9,419		—
Others		15,666		—
Subtotal		942,165		410,920
Less: Allowance for doubtful accounts		—		—
Total Other Receivables	$	942,165	$	410,920

(1)	Vehicle deposits represent security deposits paid to U.S. automobile dealers to reserve vehicles.

(2)	Sales tax refundable represents vehicle sales tax exempted in some states and to be refunded by the tax authorities.

(3)	Includes $672,984 in accounts receivable collected through a third party on behalf of the Company.

(4)	Custom Duties receivable represent fees paid to U.S. customs on behalf of customers.

LEASES (Tables)

3 Months Ended

Mar. 31, 2024

LEASES

Schedule of operating lease related assets and liabilities recorded on the balance sheets and weighted average remaining lease terms and discount rates for all operating leases


	March 31, 2024		December 31, 2023
Right-of-use assets	$	797,888	$	190,823

Operating lease liabilities – current	$	148,916	$	39,703
Operating lease liabilities – non-current		634,538		151,121
Total operating lease liabilities	$	783,454	$	190,824


	March 31, 2024		December 31, 2023
Remaining lease term and discount rate:
Weighted average remaining lease term (years)	4.08		3.17
Weighted average discount rate *	14.5	%	17.8	%

*The Company used weighted average incremental borrowing rate of 14.5% per annum for its lease contracts based on the Company’s current borrowings from various financial institutions.

Schedule by years, of maturities of lease liabilities


Fiscal Years	Amount
2024 (excluding the three months ended March 31, 2024)	$	183,952
2025		253,349
2026		262,664
2027		199,776
Thereafter		126,976
Total lease payments		1,026,717
Less: imputed interest		(243,263)
Present value of lease liabilities	$	783,454

RELATED PARTY TRANSACTIONS

3 Months Ended

Mar. 31, 2024

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS

NOTE 13 — RELATED PARTY TRANSACTIONS

a. Nature of relationship with a related party


Name		Relationship with Our Company
Mr. Huan Liu		Chief Executive Officer (“CEO”) and Chairman of the Board of Directors

b. Due to a related party

Amount due to a related party represents amounts due to the Company’s CEO and Chairman of the Board of Directors, Mr. Huan Liu, for funds borrowed for working capital purposes during the Company’s normal course of business. These payables are unsecured, non-interest bearing, and due on demand.

During the three months ended March 31, 2024 and 2023, the Company did not engage in any borrowing activities with Mr. Huan Liu. The Company made repayments to Mr. Huan Liu in the amounts of $13,423 during the three months ended March 31, 2024. No payments were made to Mr. Huan Liu during the three months ended March 31, 2023. There was no balance due to Mr. Huan Liu as of March 31, 2024.

- Definition

The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480990/946-20-50-2

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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-URI https://asc.fasb.org//1943274/2147480990/946-20-50-6

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 850
-Name Accounting Standards Codification
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-URI https://asc.fasb.org//850/tableOfContent

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
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Reference 13: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)	Mar. 31, 2024	Dec. 31, 2023
CURRENT ASSETS:
Cash	$ 903,204	$ 432,998
Accounts receivable	4,935,009	6,494,695
Loans receivable	500,000	672,500
Inventory	200,296	1,515,270
Other receivables	942,165	410,920
Prepaid expenses and other current assets	355,517	294,154
TOTAL CURRENT ASSETS	7,836,191	9,820,537
OTHER NONCURRENT ASSETS:
Property, net	58,624
Operating lease right-of-use assets	797,888	190,823
Deferred tax assets	284,646	47,905
Intangibles, net	507,286
Goodwill	447,984
TOTAL ASSETS	9,932,619	10,059,265
CURRENT LIABILITIES:
Accounts payable	54,131	40,430
Current portion of long-term debt	33,301	32,887
Loans payable from letter of credit financing	0	1,004,565
Loans payable from line of credit	688,711	688,711
Loans payable from premium finance	74,908	148,621
Due to a related party		13,423
Operating lease liabilities, current	148,916	39,703
Accrued liabilities and other current liabilities	544,298	390,451
TOTAL CURRENT LIABILITIES	1,544,265	2,358,791
NONCURRENT LIABILITIES:
Long-term debt, net of current portion	636,243	644,725
Operating lease liabilities, net of current portion	634,538	151,121
TOTAL LIABILITIES	2,815,046	3,154,637
COMMITMENTS AND CONTINGENCIES (Note 17)
STOCKHOLDERS' EQUITY
Additional paid-in capital	7,816,343	6,994,595
Subscription receivable	(600,000)	(600,000)
Retained earnings (Accumulated deficit)	(100,689)	508,241
TOTAL STOCKHOLDERS' EQUITY	7,117,573	6,904,628
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	9,932,619	10,059,265
Class A common stock
STOCKHOLDERS' EQUITY
Common stock	1,094	967
Class B common stock
STOCKHOLDERS' EQUITY
Common stock	$ 825	$ 825

INCOME TAXES

3 Months Ended

Mar. 31, 2024

INCOME TAXES

INCOME TAXES

NOTE 14 — INCOME TAXES

The Company and its operating subsidiaries in the United States are subject to the tax law of the United States. The Company elected to file income taxes as a corporation instead of an LLC for the tax years ended December 31, 2020 through December 31, 2023.

(i)

The components of the income tax provision were as follows:


	Three Months Ended
	March 31,
	2024		2023
Current:
Federal	$	(128)	$	11,917
State		5,156		1,504
Total current income tax provision		5,028		13,421
Deferred:
Federal		(166,147)		(34,168)
State		(84,595)		(22,241)
Total deferred income tax expenses		(250,742)		(56,409)
Total income tax benefit	$	(245,714)	$	(42,988)

(ii)

Reconciliations of the statutory income tax rate to the effective income tax rate were as follows:


	For the Three Months Ended
	March 31,
	2024			2023
Federal statutory tax rate	$	21.0	%	$	21.0	%
State statutory tax rate		(0.0)	%		10.7	%
Non-deductible expenses		8.1	%		0.0	%
Deferred true-up		0.0	%		(3.2)	%
Effective tax rate	$	29.1	%	$	28.5	%

(iii)

Deferred tax assets were composed of the following:


	March 31,		December 31,
	2024		2023

Deferred tax assets:
Net operating loss carry forwards		291,272		47,905
Others		(6,626)		—
Total deferred tax assets		284,646		47,905

As of December 31, 2023, the Company had a cumulative U.S. federal net operating loss (“NOL”) of $47,905, which may reduce future federal taxable income. During the three months ended March 31, 2024, the Company’s operations accumulated a NOL of $819,468, resulting in a cumulative U.S. federal NOL of $1,008,541, as of March 31, 2024, which is carried forward indefinitely. As of March 31, 2024, the Company also had a cumulative State NOL of $1,138,074, which may reduce future State taxable income, and the State NOL balance as of March 31, 2024 will expire beginning in 2041.

The Company was not previously subject to the interest expenses limitation under §163(j) of the U.S. Internal Revenue Code, due to the small business exemption. Its average annual gross receipts for the three tax years preceding 2022 do not exceed the relevant threshold amount ($27 million for 2022). The Company will no longer meet the small business exception in 2024, but it meets one of the other exceptions to the §163(j) limitation, “floor plan financing indebtedness” (indebtedness used to finance the acquisition of motor vehicles held for sale or lease or secured by such inventory) and will therefore continue to be exempt from the §163(j) interest expenses limitation in 2024.

The Company periodically evaluates the likelihood of the realization of deferred tax assets and reduces the carrying amount of the deferred tax assets by a valuation allowance to the extent it believes a portion will not be realized. Management considers new evidence, both positive and negative, that could affect the Company’s future realization of deferred tax assets including its recent cumulative earnings experience, expectation of future income, the carry forward periods available for tax reporting purposes and other relevant factors. The Company believes that it is more likely than not that its deferred tax assets will be realized before expiration.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480990/946-20-50-13

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
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-Publisher FASB
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+ Details

COMMITMENTS AND CONTINGENCIES (Details) - USD ($)					1 Months Ended
COMMITMENTS AND CONTINGENCIES (Details) - USD ($)	Mar. 15, 2024	Dec. 26, 2023	Oct. 02, 2023	Feb. 08, 2023	Feb. 28, 2023
COMMITMENTS AND CONTINGENCIES
Damages sought value				$ 86,355
Initial payment and final payment	$ 27,500	$ 27,500
Accrued a payable total			$ 55,000
Mercedes Benz GLS 450
COMMITMENTS AND CONTINGENCIES
Funded purchase amount					$ 102,593.50

UNAUDITED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT) - USD ($)	Common Stock Class A common stock	Common Stock Class B common stock	Additional paid-in capital	Subscription Receivable	Retained Earnings (Accumulated Deficit)	Class A common stock	Class B common stock	Total
Beginning balance at Dec. 31, 2022	$ 842	$ 825	$ 3,269,317	$ (1,800,000)	$ 374,371			$ 1,845,355
Beginning balance (in shares) at Dec. 31, 2022	8,416,000	8,250,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock Issuance				700,000				700,000
Net loss for the period					(107,933)			(107,933)
Ending balance at Mar. 31, 2023	$ 842	$ 825	3,269,317	(1,100,000)	266,438			2,437,422
Ending balance (in shares) at Mar. 31, 2023	8,416,000	8,250,000
Beginning balance at Dec. 31, 2023	$ 967	$ 825	6,994,595	(600,000)	508,241			$ 6,904,628
Beginning balance (in shares) at Dec. 31, 2023	9,666,000	8,250,000				9,666,000	8,250,000	17,916,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Termination of equity-classified warrant			(78,125)					$ (78,125)
Issuance of common stock for acquisition	$ 127		899,873					900,000
Issuance of common stock for acquisition (in shares)	1,272,329
Net loss for the period					(608,930)			(608,930)
Ending balance at Mar. 31, 2024	$ 1,094	$ 825	$ 7,816,343	$ (600,000)	$ (100,689)			$ 7,117,573
Ending balance (in shares) at Mar. 31, 2024	10,938,329	8,250,000				10,938,329	8,250,000	19,188,329

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
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-Section S99
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+ Details

Document and Entity Information - shares	3 Months Ended
Document and Entity Information - shares	Mar. 31, 2024	May 10, 2024
Document and Entity Information
Document Type	10-Q
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Mar. 31, 2024
Entity File Number	001-41761
Entity Registrant Name	Cheetah Net Supply Chain Service Inc.
Entity Incorporation, State or Country Code	NC
Entity Tax Identification Number	81-3509120
Entity Address, Address Line One	6201 Fairview Road, Suite 225
Entity Address, City or Town	Charlotte
Entity Address State Or Province	NC
Entity Address, Postal Zip Code	28210
City Area Code	704
Local Phone Number	826-7280
Title of 12(b) Security	Class A common stock, par value $0.0001 per share
Trading Symbol	CTNT
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		10,938,329
Entity Central Index Key	0001951667
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q1
Amendment Flag	false

LONG-TERM BORROWINGS - Future maturities of the loan from SBA (Details) - USD ($)	Mar. 31, 2024	Dec. 31, 2023
Future maturities of the loan
Total	$ 669,544	$ 677,612
SBA
Future maturities of the loan
2024 (excluding the three months ended March 31, 2024)	7,984
2025	11,024
2026	11,474
2027	11,942
2028	12,429
Thereafter	421,663
Total	$ 476,516	$ 479,124

- Definition

Amount, after deduction of unamortized premium (discount) and debt issuance cost, of long-term debt. Excludes lease obligation.

+ References + Details

LEASES - Maturities of lease liabilities (Details) - USD ($)	Mar. 31, 2024	Dec. 31, 2023
LEASES
2024 (excluding the three months ended March 31, 2024)	$ 183,952
2025	253,349
2026	262,664
2027	199,776
Thereafter	126,976
Total lease payments	1,026,717
Less: imputed interest	(243,263)
Present value of lease liabilities	$ 783,454	$ 190,824

OTHER RECEIVABLES (Tables)

3 Months Ended

Mar. 31, 2024

OTHER RECEIVABLES

Schedule of components of other receivables


	March 31, 2024		December 31, 2023
	(Unaudited)
Parallel-import Vehicles:
Vehicle Deposit⁽¹⁾	$	116,300	$	162,159
Rent Deposit		22,095		22,095
Sales Tax Refundable⁽²⁾		82,928		217,892
Interest Receivable		22,333		5,423
Others⁽³⁾		673,424		3,351
Logistics and Warehousing
Custom Duties Receivable ⁽⁴⁾		9,419		—
Others		15,666		—
Subtotal		942,165		410,920
Less: Allowance for doubtful accounts		—		—
Total Other Receivables	$	942,165	$	410,920

(1)	Vehicle deposits represent security deposits paid to U.S. automobile dealers to reserve vehicles.

(2)	Sales tax refundable represents vehicle sales tax exempted in some states and to be refunded by the tax authorities.

(3)	Includes $672,984 in accounts receivable collected through a third party on behalf of the Company.

(4)	Custom Duties receivable represent fees paid to U.S. customs on behalf of customers.

REVOLVING LINE OF CREDIT (Details)		3 Months Ended
REVOLVING LINE OF CREDIT (Details)	Oct. 05, 2022 USD ($) agreement	Mar. 31, 2024 USD ($)	Mar. 31, 2023 USD ($)	Dec. 31, 2023 USD ($)
REVOLVING LINE OF CREDIT
Revolving line of credit balance		$ 688,711		$ 688,711
Interest expenses		7,552	$ 7,945
Revolving Line of Credit Agreements
REVOLVING LINE OF CREDIT
Number of third-party companies \| agreement	2
Maximum borrowing capacity	$ 15,000,000.0
Term of borrowings	12 months
Fixed interest rate	1.50%
Interest expenses		$ 31,336	$ 0
Revolving Line of Credit Agreement, one
REVOLVING LINE OF CREDIT
Number of agreements \| agreement	2
Maximum borrowing capacity	$ 10,000,000.0
Revolving Line of Credit Agreement, two
REVOLVING LINE OF CREDIT
Number of third-party companies \| agreement	2
Maximum borrowing capacity	$ 5,000,000.0

LEASES - Weighted average remaining lease term and discount rate (Details) - USD ($)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Remaining lease term and discount rate:
Weighted average remaining lease term (years)	4 years 29 days		3 years 2 months 1 day
Weighted average discount rate	14.50%		17.80%
Weighted average incremental borrowing rate per annum	14.50%
Total operating lease expenses	$ 86,205	$ 55,605

LONG-TERM BORROWINGS

3 Months Ended

Mar. 31, 2024

LONG-TERM BORROWINGS

LONG-TERM BORROWINGS

NOTE 12 — LONG-TERM BORROWINGS

Long-term borrowings consisted of the following:


	March 31,		December 31,
	2024		2023
Small Business Administration⁽¹⁾	$	476,516	$	479,124
Thread Capital Inc.⁽²⁾		193,028		198,488
Total long-term borrowings	$	669,544	$	677,612

Current portion of long-term borrowings	$	33,301	$	32,887

Non-current portion of long-term borrowings	$	636,243	$	644,725

(1)

The future maturities of the loan from SBA as of March 31, 2024 were as follows:


Fiscal Years	Future repayment
2024 (excluding the three months ended March 31, 2024)	$	7,984
2025		11,024
2026		11,474
2027		11,942
2028		12,429
Thereafter		421,663
Total	$	476,516

(2)

The future maturities of the loan from Thread Capital as of March 31, 2024 were as follows:


Fiscal Years	Future repayment
2024 (excluding the three months ended March 31, 2024)	$	16,835
2025		23,553
2026		24,881
2027		26,285
2028		27,768
Thereafter		73,706
Total	$	193,028

For the above-mentioned long-term borrowings, the Company recorded interest expenses of $7,552 and $7,945 for the three months ended March 31, 2024 and 2023, respectively.

COMMITMENTS AND CONTINGENCIES

3 Months Ended

Mar. 31, 2024

COMMITMENTS AND CONTINGENCIES.

COMMITMENTS AND CONTINGENCIES

NOTE 17 — COMMITMENTS AND CONTINGENCIES

On February 8, 2023, ISY1 LLC (the “Plaintiff”) commenced a lawsuit against the Company in the Superior Court of New Jersey. The Plaintiff alleged that the Company offered to pay the Plaintiff to arrange for the transport of certain automobiles for the benefit of the Company, the Plaintiff accepted the Company’s offer and rendered its services by contracting with and paying third parties who transported these automobiles. However, after the Plaintiff submitted the invoices, the Company refused to make the payment on the grounds that the Plaintiff’s services had not met the Company’s expectations. Therefore, the Plaintiff is seeking $86,355 in monetary damages, reimbursement for all costs and attorney fees, and any other relief the Court may deem just and proper. On October 2, 2023, the Company entered into a settlement agreement with the Plaintiff, pursuant to which the Company committed to a total payment of $55,000. An initial payment of $27,500 was made on December 26, 2023, followed by the final payment of $27,500 on March 15, 2024.

On February 23, 2023, the Company filed a complaint in the Supreme Court of the State of New York County against Stefanie A. Rehfeld (the “Defendant”), alleging breach of contract as the Defendant had misappropriated an automobile belonging to the assets of the Company. Pursuant to an independent contractor agreement dated June 30, 2022 between the Company and the Defendant, the Company hired the Defendant to locate and acquire certain new model luxury vehicles. The Company was obligated to fully fund the purchase of each vehicle, and the Defendant was required to locate and acquire the vehicle and turn over title and possession to the Company in exchange for a commission fee. In February 2023, after the Company fully funded the purchase of a 2023 Mercedes Benz GLS 450 (the “Mercedes”) for a total amount of $102,593.50, the Defendant obtained the possession of the Mercedes from a Mercedes Benz dealership and signed a bill of sale with the Company, whereby she agreed to sell, transfer, and convey the title of the Mercedes to the Company. However, the Defendant drove the Mercedes away and failed to transfer the title of the Mercedes to the Company as scheduled. Therefore, the Company is seeking to require the Defendant to transfer title and deliver possession of the Mercedes to the Company and recover the costs incurred in retrieving the car, or alternatively, the monetary damages resulting from the Defendant’s misappropriation of the Mercedes, including the court costs and attorneys’ fees and expenses reasonably incurred. On April 25, 2023, the Supreme Court of the State of New York County granted the Company’s motion for summary judgment on its second and fourth causes of action, ruling in favor of the Company. Subsequently, an inquest will be conducted to determine the precise amount owed to the Company. Based on the outcome of the current motion and the Company’s overall assessment of the case, the Company believes it will be successful in this litigation. As of the date of this quarterly report, the Mercedes has been found by the police and returned to the Company.

RELATED PARTY TRANSACTIONS (Tables)

3 Months Ended

Mar. 31, 2024

RELATED PARTY TRANSACTIONS

Schedule of related party transaction


Name		Relationship with Our Company
Mr. Huan Liu		Chief Executive Officer (“CEO”) and Chairman of the Board of Directors

LONG-TERM BORROWINGS - Tabular (Details) - USD ($)	Mar. 31, 2024	Dec. 31, 2023
LONG-TERM BORROWINGS
Total	$ 669,544	$ 677,612
Current portion of long-term debt	33,301	32,887
Long-term debt, net of current portion	636,243	644,725
SBA
LONG-TERM BORROWINGS
Total	476,516	479,124
Thread Capital
LONG-TERM BORROWINGS
Total	$ 193,028	$ 198,488

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

+ Details

- Definition

Amount, after deduction of unamortized premium (discount) and debt issuance cost, of long-term debt. Excludes lease obligation.

+ References + Details

ACCOUNTS RECEIVABLE (Tables)

3 Months Ended

Mar. 31, 2024

ACCOUNTS RECEIVABLE

Schedule of components of accounts receivable


	March 31,		December 31,
	2024		2023
Accounts receivable
Parallel-import Vehicles	$	4,899,545	$	6,494,695
Logistics and Warehousing		35,464		—
Less: allowance for doubtful accounts		—		—
Total accounts receivable	$	4,935,009	$	6,494,695

Schedule of accounts receivable aging


	March 31,
	2024
Accounts receivable aging:
Less than 150 days	$	813,799
151-180 days		459,598
181-210 days		600,311
Over 210 days		3,025,837
Less: allowance for doubtful accounts		—
Total accounts receivable	$	4,899,545

LONG-TERM BORROWINGS - SBA (Details) - SBA - USD ($)	Mar. 16, 2022	May 24, 2020
LONG-TERM BORROWINGS
Face amount of borrowings	$ 350,000	$ 150,000
Term of borrowings	30 years	30 years
Fixed interest rate	3.75%	3.75%
Term from date of the original loan agreement, the Company is required to make a new monthly installment payment		12 months
Monthly installment payment	$ 2,485	$ 731
Maximum
LONG-TERM BORROWINGS
Face amount of borrowings	$ 500,000

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

+ Details

STOCKHOLDERS' EQUITY (Details) - USD ($)						3 Months Ended	12 Months Ended
STOCKHOLDERS' EQUITY (Details) - USD ($)	Feb. 02, 2024	Jan. 24, 2024	Aug. 03, 2023	Jul. 11, 2022	Jun. 27, 2022	Mar. 31, 2024	Dec. 31, 2023	Dec. 31, 2022	Mar. 14, 2024
STOCKHOLDERS' EQUITY
Common stock authorized				100,000,000		100,000,000	100,000,000
Common stock par value				$ 0.0001		$ 0.0001	$ 0.0001
Common stock, shares issued						19,188,329	17,916,000
Common stock shares outstanding						19,188,329	17,916,000
Stock Issued During Period, Value, Acquisitions						$ 900,000
Edward Transit Express Group Inc.
STOCKHOLDERS' EQUITY
Business Acquisition, Percentage of Voting Interests Acquired		100.00%
Purchase price		$ 300,000
Juguang Zhang \| Edward Transit Express Group Inc.
STOCKHOLDERS' EQUITY
Business Acquisition, Percentage of Voting Interests Acquired		100.00%
Purchase price	$ 300,000
Number of shares issued on acquisition	1,272,329
Investor
STOCKHOLDERS' EQUITY
Shares issued during period shares other					1,666,000
Purchase price					$ 1.80
Gross proceeds from issuance of common stock					$ 3,000,000.0
Offering expenses					300,000
Net proceeds from issuance of common stock					2,700,000		$ 1,200,000	$ 1,200,000
Total proceeds from issuance of common stock					$ 2,400,000
Period for outstanding amount to be paid following the Company's IPO					6 months
Rapid
STOCKHOLDERS' EQUITY
Outstanding amount to be paid					$ 600,000				$ 600,000
Class A common stock
STOCKHOLDERS' EQUITY
Common stock authorized				91,750,000		91,750,000	91,750,000
Common stock par value						$ 0.0001	$ 0.0001
Common stock, shares issued						10,938,329	9,666,000
Common stock shares outstanding						10,938,329	9,666,000
Voting rights				one
Class A common stock \| Juguang Zhang \| Edward Transit Express Group Inc.
STOCKHOLDERS' EQUITY
Stock Issued During Period, Value, Acquisitions	$ 1,200,000
Class A common stock \| IPO
STOCKHOLDERS' EQUITY
Shares issued during period shares			1,250,000
Share price			$ 4.00
Aggregate gross proceeds from public offering			$ 5,000,000.0
Warrants to purchase shares of common stock			62,500
Exercise price of warrants			$ 5.00
Class A common stock \| Investor
STOCKHOLDERS' EQUITY
Common stock, shares issued						10,938,329
Common stock shares outstanding						10,938,329
Class B common stock
STOCKHOLDERS' EQUITY
Common stock authorized				8,250,000		8,250,000	8,250,000
Common stock par value						$ 0.0001	$ 0.0001
Common stock, shares issued						8,250,000	8,250,000
Common stock shares outstanding						8,250,000	8,250,000
Voting rights				15

CONCENTRATIONS (Details) - USD ($)	3 Months Ended		12 Months Ended
CONCENTRATIONS (Details) - USD ($)	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
CONCENTRATIONS
Cash deposits on financial institutions	$ 903,204		$ 432,998
Customer concentration risk
CONCENTRATIONS
Cash deposits on financial institutions	$ 903,204		$ 432,998
Customer \| Revenue \| Customer concentration risk
CONCENTRATIONS
Concentration risk, percentage	100.00%	100.00%
Customer \| Revenue \| Supplier concentration risk
CONCENTRATIONS
Concentration risk, percentage		10.20%
Customer \| Accounts receivable \| Customer concentration risk
CONCENTRATIONS
Concentration risk, percentage	97.40%		98.00%
Customer One \| Revenue \| Customer concentration risk
CONCENTRATIONS
Concentration risk, percentage		55.20%
Customer One \| Accounts receivable \| Customer concentration risk
CONCENTRATIONS
Concentration risk, percentage	54.50%		58.10%
Customer Two \| Revenue \| Customer concentration risk
CONCENTRATIONS
Concentration risk, percentage		28.60%
Customer Two \| Accounts receivable \| Customer concentration risk
CONCENTRATIONS
Concentration risk, percentage	27.30%		28.20%
Customer Three \| Revenue \| Customer concentration risk
CONCENTRATIONS
Concentration risk, percentage		16.20%
Customer Three \| Accounts receivable \| Customer concentration risk
CONCENTRATIONS
Concentration risk, percentage	15.60%		11.70%

PREMIUM FINANCE

3 Months Ended

Mar. 31, 2024

PREMIUM FINANCE

PREMIUM FINANCE

NOTE 11 — PREMIUM FINANCE

On July 31, 2023, the Company entered into a Premium Finance Agreement (the “Premium Finance Agreement”) with National Partners PFco, LLC. Pursuant to the Premium Finance Agreement, the Company borrowed $221,139 for the purchase of its directors and officers insurance, at an annual interest rate of 7.75%.

The premium finance amounted to $74,908 and $148,621 as of March 31, 2024 and December 31, 2023, respectively. Interest expense incurred related to the Premium Finance Agreement was $996 for the three months ended March 31, 2024. No interest expense was incurred related to the Premium Finance Agreement during the three months ended March 31, 2023.

ORGANIZATION AND BUSINESS DESCRIPTION (Details)								3 Months Ended
ORGANIZATION AND BUSINESS DESCRIPTION (Details)	Jan. 24, 2024 USD ($)	Oct. 19, 2022 USD ($)	Apr. 09, 2021 USD ($)	Feb. 19, 2021 USD ($)	Feb. 15, 2019 USD ($)	Jan. 01, 2019 USD ($)	Jan. 01, 2017 USD ($)	Mar. 31, 2024 segment	Feb. 10, 2021 shares	Jan. 17, 2019 shares	Aug. 31, 2016 shares
ORGANIZATION AND BUSINESS DESCRIPTION
Number of operating segments \| segment								2
Cheetah Net
ORGANIZATION AND BUSINESS DESCRIPTION
% of Ownership								100.00%
Allen-Boy
ORGANIZATION AND BUSINESS DESCRIPTION
Total consideration							$ 100
Fairview
ORGANIZATION AND BUSINESS DESCRIPTION
Total consideration						$ 100
Pacific
ORGANIZATION AND BUSINESS DESCRIPTION
Total consideration					$ 100
Pacific \| Class A common stock
ORGANIZATION AND BUSINESS DESCRIPTION
Number of shares beneficially owned in the company \| shares										1,200,000
Limousine
ORGANIZATION AND BUSINESS DESCRIPTION
Total consideration				$ 100
Limousine \| Class A common stock
ORGANIZATION AND BUSINESS DESCRIPTION
Number of shares beneficially owned in the company \| shares									1,200,000
Entour
ORGANIZATION AND BUSINESS DESCRIPTION
Total consideration			$ 100
Logistics
ORGANIZATION AND BUSINESS DESCRIPTION
Total consideration		$ 100
Edward
ORGANIZATION AND BUSINESS DESCRIPTION
Total consideration	$ 1,500,000
Yingchang Yuan \| Class A common stock
ORGANIZATION AND BUSINESS DESCRIPTION
Number of shares beneficially owned in the company \| shares											1,200,000

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Mar. 31, 2024	Dec. 31, 2023	Jul. 11, 2022
Common stock, par value per share	$ 0.0001	$ 0.0001	$ 0.0001
Common stock, shares authorized	100,000,000	100,000,000	100,000,000
Common stock, shares issued	19,188,329	17,916,000
Common stock, shares outstanding	19,188,329	17,916,000
Class A common stock
Common stock, par value per share	$ 0.0001	$ 0.0001
Common stock, shares authorized	91,750,000	91,750,000	91,750,000
Common stock, shares issued	10,938,329	9,666,000
Common stock, shares outstanding	10,938,329	9,666,000
Class B common stock
Common stock, par value per share	$ 0.0001	$ 0.0001
Common stock, shares authorized	8,250,000	8,250,000	8,250,000
Common stock, shares issued	8,250,000	8,250,000
Common stock, shares outstanding	8,250,000	8,250,000

ORGANIZATION AND BUSINESS DESCRIPTION

3 Months Ended

Mar. 31, 2024

ORGANIZATION AND BUSINESS DESCRIPTION

ORGANIZATION AND BUSINESS DESCRIPTION

NOTE 1 — ORGANIZATION AND BUSINESS DESCRIPTION

Cheetah Net Supply Chain Service Inc. (“Cheetah Net” or the “Company”), formerly known as Yuan Qiu Business Group LLC, was established under the laws of the State of North Carolina on August 9, 2016 as a limited liability company (“LLC”). On March 1, 2022, the Company filed articles of incorporation including articles of conversion with the Secretary of State of the State of North Carolina to convert from an LLC to a corporation, and changed its name to Cheetah Net Supply Chain Service Inc. The Company holds 100% of the equity interests in the following entities:

●

(i) Allen-Boy International LLC (“Allen-Boy”), an LLC organized on August 31, 2016 under the laws of the State of Delaware, which was acquired by Cheetah Net from Yingchang Yuan, the previous owner of Allen-Boy who beneficially owns 1,200,000 shares of Class A common stock of Cheetah Net, for a total consideration of $100 on January 1, 2017. Allen-Boy did not have any business activities until acquired by Cheetah Net;

●

(ii) Canaan International LLC (“Fairview”), an LLC organized on December 5, 2018 under the laws of the State of North Carolina, known as Fairview International Business Group, LLC before changing its name by filing articles of amendment on July 21, 2020, which was acquired by Cheetah Net from Yiming Wang, the previous owner of Fairview, for a total consideration of $100 on January 1, 2019. Fairview did not have any business activities until acquired by Cheetah Net;

●

(iii) Pacific Consulting LLC (“Pacific”), an LLC organized on January 17, 2019 under the laws of the State of New York, which was acquired by Cheetah Net from Yingchang Yuan, the previous owner of Pacific who beneficially owns 1,200,000 shares of Class A common stock of Cheetah Net, for a total consideration of $100 on February 15, 2019. Pacific did not have any business activities until acquired by Cheetah Net;

●

(iv) Canaan Limousine LLC (“Limousine”), an LLC organized on February 10, 2021 under the laws of the State of South Carolina, which was acquired by Cheetah Net from Yingchang Yuan, the previous owner of Limousine who beneficially owns 1,200,000 shares of Class A common stock of Cheetah Net, for a total consideration of $100 on February 19, 2021. Limousine did not have any business activities until acquired by Cheetah Net;

●

(v) Entour Solutions LLC (“Entour”), an LLC organized on April 8, 2021 under the laws of the State of New York, which was acquired by Cheetah Net from Daihan Ding, the previous owner of Entour, for a total consideration of $100 on April 9, 2021. Entour did not have any business activities until acquired by Cheetah Net;

●

(vi) Cheetah Net Logistics LLC (“Logistics”), an LLC organized on October 12, 2022 under the laws of the State of New York, whose previous sole member and owner, Hanzhang Li, the previous owner of Logistics, and a current employee of Cheetah Net, for a total consideration of $100, assigned all his membership interests in Logistics to Cheetah Net on October 19, 2022; and

●

(vii) Edward Transit Express Group Inc. (“Edward”), a corporation incorporated on July 14, 2010 under the laws of the State of California, whose previous sole shareholder and owner, Juguang Zhang, transferred all his right, title, and interest in and to all of the issued and outstanding shares of Edward to Cheetah Net for a total consideration of $1,500,000 in cash and Cheetah Net’s Class A common stock through a stock purchase agreement dated January 24, 2024, as amended. Currently, Edward is engaged in ocean and air transportation services.

The Company and its wholly owned subsidiaries are engaged in two sectors: the parallel-import vehicle dealership business and comprehensive logistics and warehousing business.

The parallel-import vehicle

In the People’s Republic of China (the “PRC”), parallel-import vehicles refer to vehicles purchased by dealers directly from overseas markets and imported for sale through channels other than brand manufacturers’ official distribution systems. The Company purchases automobiles from the U.S. market through its large team of professional purchasing agents and resells the automobiles to parallel-import vehicle dealers in the U.S. and the PRC.

Logistics and Warehousing

The Company’s subsidiary, Edward, operates as a licensed Non-Vessel Operating Common Carrier. It manages freight forwarding, including shipment consolidation and carrier selection, aimed at optimizing shipping operations. Edward also provides warehousing services encompassing fulfillment, storage, and inventory management, crucial for supporting both the Company’s operations and its clients’ logistics needs.

Details of the subsidiaries of the Company as of March 31, 2024 are set out below:


Name of Entity	Date of Incorporation	State of Incorporation	% of Ownership	Principal Activities
Cheetah Net	August 9, 2016	North Carolina	Parent, 100%	Parallel-import vehicle dealership business
Subsidiaries of the parent:
Allen-Boy	August 31, 2016	Delaware	100%	Parallel-import vehicle dealership business

Fairview	December 5, 2018	North Carolina	100%	Parallel-import vehicle dealership business

Pacific	January 17, 2019	New York	100%	Parallel-import vehicle dealership business

Limousine	February 10, 2021	South Carolina	100%	Parallel-import vehicle dealership business

Entour	April 8, 2021	New York	100%	Parallel-import vehicle dealership business

Logistics	October 12, 2022	New York	100%	Parallel-import vehicle dealership business

Edward	July 14, 2010	California	100%	Logistics and warehousing business

REVOLVING LINE OF CREDIT

3 Months Ended

Mar. 31, 2024

REVOLVING LINE OF CREDIT

REVOLVING LINE OF CREDIT

NOTE 10 — REVOLVING LINE OF CREDIT

On October 5, 2022, the Company entered into two Revolving Line of Credit Agreements (the “Revolving Line of Credit Agreements”) with two third-party companies that have been providing financial support to the Company since 2021. Pursuant to the Revolving Line of Credit Agreements, the Company can borrow under revolving lines of credit of up to $10.0 million and $5.0 million, respectively, from these two third-party companies with a total of $15.0 million for a period of 12 months at a fixed interest rate of 1.5% per month. On December 12, 2022, the Company amended the Revolving Line of Credit Agreements to extend the maturity date to April 2024. The Company has not entered into any new agreements to modify the terms or extend the duration of these facilities.

During the three months ended March 31, 2024 and 2023, the Company did not borrow or repay any amounts under the revolving lines of credit. As of March 31, 2024 and December 31, 2023, the revolving line of credit balance was $688,711. Interest expense incurred under the revolving lines of credit was $31,336 and nil for the three months ended March 31, 2024 and 2023, respectively.

Pay vs Performance Disclosure - USD ($)	3 Months Ended
Pay vs Performance Disclosure - USD ($)	Mar. 31, 2024	Mar. 31, 2023
Pay vs Performance Disclosure
Net Income (Loss)	$ (608,930)	$ (107,933)

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

+ Details

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details)	3 Months Ended		12 Months Ended
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details)	Mar. 31, 2024 USD ($) segment shares	Mar. 31, 2023 USD ($) shares	Dec. 31, 2023 USD ($)
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Accounts receivable, allowance for doubtful accounts	$ 0		$ 0
Impairment allowance	0
Inventory reserve	0		0
Impairment for ROU lease assets	$ 0		$ 0
Number of dilutive shares \| shares	0	0
Total shipping and handling expenses	$ 20,610	$ 213,460
Number of operating segments \| segment	2