Company: ILAG
Filing Date: 2025-04-28
Form Type: 20-F
Source: 0001641172-25-006445
Chunk: 106

Company: Intelligent Living Application Group Inc.
Filing Date: 2025-04-28
Form: 20-F
Item: Item 3
Chunk 106
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                     120,653      (81.7  
  Loss from operations                                                                                      (3,893,748                (2,265,144                  (1,628,604       71.9  
  Total other income, net                                                                                      448,467                   609,241                    (160,774      (26.4  
  Loss before provision for income taxes                                                                    (3,445,281                (1,655,903                  (1,789,378      108.1  
  Provision for income taxes                                                                                   (56,237                         —                     (56,237          —  
  Net loss                                                                         $                        (3,501,518      $         (1,655,903      $           (1,845,615      111.5  
  Loss per share - basic and diluted                                               $                             (0.19      $              (0.11      $                (0.08       72.7  

Revenues

Our revenues from sales of door locksets decreased
by $5,714,745, or 47.0% for 2023 to $6,443,357 from $12,158,102 for 2022. The
decrease was mainly due to decrease in units sold in 2023. Our total number of products sold was approximately 1.3 million units (including
approximately 0.1 million units of spare parts) for 2023 comparing to 2.4 million units (including approximately
0.2 million units of spare parts) for 2022.

Cost of Goods Sold

Cost of goods sold was $5,464,591 for 2023
compared to $9,961,988 for 2022. Cost of goods sold was 84.8% and 81.9% of revenues for the years ended December
31, 2023 and 2022, respectively. The increase in cost of goods sold as a percentage of revenue was mainly caused by the addition of
new machinery along with revamped production procedures, increase of labor and decrease of sales due to weak demand in our major
market.

Cost of goods sold includes the cost of raw materials
(mainly copper, stainless steel, iron and zinc alloy), direct labor (including wages and social security contributions), manufacturing
overhead (such as packing materials, direct rental expense and utilities) and taxes. As a small business with limited resources, we currently
lack the ability to hedge our raw materials position and