Based on the provided financial report articles, the title of the article is: "Form 10-Q for Linkhome Holdings Inc. for the quarterly period ended September 30, 2024

Overview

Linkhome Holdings Inc. (“Linkhome,” “Linkhome Holdings,” the “Company,” or “We”) is a holding company incorporated in Nevada in 2023. The company conducts its operations through its subsidiary, Linkhome Realty Group, a California-based real estate company. Linkhome Realty focuses on comprehensive real estate activities, including real estate agency services, property management, home renovation, and a Cash Offer program that allows buyers to make all-cash offers on properties.

Key Factors that Affect Our Results of Operations

• Market Conditions: Fluctuations in the real estate market, including changes in supply and demand, interest rates, economic conditions, and regulatory policies.
• Technology Integration: The ability to effectively integrate AI and other innovative technologies into operations.
• Client Preferences and Demands: Continuously assessing client feedback, market research, and industry trends.
• Competition: The highly competitive real estate industry requires differentiation through comprehensive services, innovative solutions, and exceptional customer service.
• Economic Factors: Macroeconomic conditions, such as GDP growth, employment rates, and inflation, that influence the real estate market.
• Operational Efficiency: Optimizing processes, investing in staff training, and leveraging technology to enhance productivity.

Related Party Transactions

The company has engaged in various related party transactions, including:

• Property purchases and sales through the Cash Offer program with Haiyan Ma, Zhen Qin, and Na Li.
• Real estate agency services provided to Haiyan Ma, Zhen Qin, and Na Li.
• Home renovation services provided to Na Li.
• Commission payouts to Zhen Qin for real estate transactions conducted on behalf of the company.

Financial Performance

Net Revenues

The company derives its net revenues from two main sources:

1. Revenue from property purchases and sales through the Cash Offer program.
2. Real estate service revenue, including real estate agency commissions, property management, home renovation, and mortgage referral fees.

Comparison of the Three Months Ended September 30, 2024 and 2023:

• Revenue from property purchases and sales through Cash Offer increased from $0 to $1,670,000, accounting for 81.15% of net revenues.
• Real estate service revenue increased by 278.62% from $102,461 to $387,935, driven by higher real estate agency commissions and home renovation service revenue.

Comparison of the Nine Months Ended September 30, 2024 and 2023:

• Revenue from property purchases and sales through Cash Offer increased from $0 to $4,610,544, accounting for 85.04% of net revenues.
• Real estate service revenue increased by 436.82% from $151,118 to $811,240, driven by higher real estate agency commissions and home renovation service revenue.

Cost of Revenues

The company’s cost of revenues consists primarily of costs related to property purchases through the Cash Offer program and costs associated with real estate services, including commission payouts and renovation expenses.

Comparison of the Three Months Ended September 30, 2024 and 2023:

• Cost of property purchases and sales through Cash Offer increased from $0 to $1,425,829.
• Cost of real estate services increased by 339.58% from $29,000 to $127,478, driven by higher renovation costs.

Comparison of the Nine Months Ended September 30, 2024 and 2023:

• Cost of property purchases and sales through Cash Offer increased from $0 to $4,310,711.
• Cost of real estate services increased by 263.65% from $61,400 to $223,279, driven by higher renovation costs, partially offset by lower commission payouts to the CEO.

Gross Profit and Gross Margin

The company’s gross profit increased significantly, from $73,461 to $504,628 in the three-month period and from $89,718 to $887,794 in the nine-month period. However, the blended gross margin decreased from 71.70% to 24.52% in the three-month period and from 59.37% to 16.37% in the nine-month period, primarily due to the lower margins associated with the Cash Offer program.

Operating Expenses

Selling expenses and general and administrative expenses increased significantly, driven by higher marketing and advertising costs, legal and accounting expenses related to the IPO preparation, and increased payroll and overhead costs associated with business expansion.

Net Income

Net income increased from $52,796 to $284,109 in the three-month period and from $64,839 to $375,289 in the nine-month period, primarily due to the significant increase in net revenues.

Liquidity and Capital Resources

As of September 30, 2024, the company had $718,138 in cash and cash equivalents, with a current ratio of 3.32:1. The company plans to use part of the proceeds from the upcoming IPO to support its business expansion, including the development of its AI-driven real estate platform and increasing its own real estate investment. The company believes its current cash and cash flows from operations will be sufficient to meet its working capital needs for the next 12 months, but may seek additional financing if needed.

Outlook

Linkhome Holdings is focused on becoming the premier AI-driven real estate technology company, utilizing artificial intelligence to transform the real estate industry and make property transactions more user-friendly, transparent, and efficient. The company’s expansion plans, including the development of its AI platform and increasing its own real estate investment, are expected to drive future growth and profitability. However, the company faces challenges from macroeconomic factors, such as rising interest rates and inflation, which could impact the real estate market and consumer behavior.