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Blue Hat Interactive Entertainment Technology (NASDAQ: BHAT) Subsidiary Golden Alpha Strategy Ltd Secures Class A License for Precious Metals and Gem Trading
GlobeNewswire News Room· 2024-06-05 12:30
Company Overview - Blue Hat Interactive Entertainment Technology (BHAT) is a NASDAQ-listed company that has expanded its business scope from communication services, IDC business, and AR interactive entertainment games to include bulk trading of gems and precious metals [3] - The company aims to become a leading intelligent commodity trader worldwide by leveraging its technological accumulation and unique patented technology [3] Regulatory and Business Development - BHAT's wholly-owned Hong Kong subsidiary, Golden Alpha Strategy Ltd, has been granted Dealers in Precious Metals and Stones Category A Registration by Hong Kong Customs and Excise Department [1] - This registration is part of a regulatory system implemented by the Hong Kong government on April 1, 2023, to combat money laundering and terrorist financing activities [1] - The company is committed to conducting and facilitating commodity trading of precious metals and stones under legal and compliant conditions in Hong Kong and internationally [1] Strategic Initiatives and Future Plans - BHAT plans to actively expand its business in precious metals, aiming to bring more returns to investors [2] - The company will collaborate with Macau Rongxin Precious Metals Company to advance an innovative intelligent gold supply chain and recycling system [2] - BHAT emphasizes innovation and aims to leverage artificial intelligence technology to facilitate commodity trading, particularly in the precious metals sector [2] Leadership and Vision - Mr Chen Xiaodong, CEO of BHAT, highlighted the significance of the international license as a crucial step in the company's business transformation and international development [2] - The company is dedicated to conducting international business while fully complying with local and international laws [2]
To Build an Intelligent Gold Trading Platform
Newsfilter· 2024-05-29 12:30
BEIJING, China, May 29, 2024 (GLOBE NEWSWIRE) -- Blue Hat Interactive Entertainment Technology ("Blue Hat" or the "Company") (NASDAQ:BHAT), a company expanding its business to commodity trading, aiming to become a leading intelligent commodity trader worldwide today announced that its CEO has accepted an exclusive interview from China Finance Net. As technology continues to advance especially in artificial intelligence, and globalization deepens, the financial sector is undergoing significant changes. New p ...
To Build an Intelligent Gold Trading Platform
globenewswire.com· 2024-05-29 12:30
BEIJING, China, May 29, 2024 (GLOBE NEWSWIRE) -- Blue Hat Interactive Entertainment Technology (“Blue Hat” or the “Company”) (NASDAQ: BHAT), a company expanding its business to commodity trading, aiming to become a leading intelligent commodity trader worldwide today announced that its CEO has accepted an exclusive interview from China Finance Net. As technology continues to advance especially in artificial intelligence, and globalization deepens, the financial sector is undergoing significant changes. New ...
Blue Hat Interactive Entertainment Technologies Announces Plan to Acquire GTC Multi Trading DMCC
Newsfilter· 2024-05-22 12:30
Core Insights - Blue Hat Interactive Entertainment Technology has entered into a Letter of Intent to acquire 60% of GTC Multi Trading DMCC, a financial technology company based in the UAE, marking a significant milestone in the global fintech sector, particularly in AI-assisted trading of precious metals and financial derivatives [1][2] Company Overview - Blue Hat was previously focused on communication services and AR interactive entertainment but is now expanding into commodity trading, aiming to become a leading intelligent commodity trader globally [3] Strategic Shift - The acquisition signifies a pivotal shift in Blue Hat's strategy towards the fintech sector, integrating AI technology with financial services, and is seen as the first phase of collaboration following a framework cooperation agreement with GTC Group LLC [2] Partnership Outlook - The partnership is expected to leverage AI technology for breakthroughs in financial transactions, customer service, and product innovation, fostering growth potential within the fintech industry [2]
Blue Hat Interactive Entertainment Technologies Announces Plan to Acquire GTC Multi Trading DMCC
globenewswire.com· 2024-05-22 12:30
Core Insights - Blue Hat Interactive Entertainment Technology has entered into a Letter of Intent to acquire 60% of GTC Multi Trading DMCC, a financial technology company in the UAE, marking a significant milestone in the global fintech sector, particularly in AI-assisted trading of precious metals and financial derivatives [1][2] Group 1: Company Strategy and Vision - The acquisition signifies a pivotal shift in Blue Hat's strategy towards the fintech sector and aims to integrate AI technology innovation with financial services [2] - The partnership with GTCM is expected to empower Blue Hat to leverage AI technology for breakthroughs in financial transactions, customer service, and product innovation [2] Group 2: Business Background - Blue Hat was previously focused on communication services and AR interactive entertainment but is now expanding into commodity trading, aiming to become a leading intelligent commodity trader globally [3]
Blue Hat Announces Financial Results for the Fiscal Year 2023, of which the Revenue Increased by 33 Times
Newsfilter· 2024-04-30 21:05
XIAMEN, China, April 30, 2024 (GLOBE NEWSWIRE) -- Blue Hat Interactive Entertainment Technology ("Blue Hat" or the "Company") (NASDAQ:BHAT), primarily a company of commodity trading in China, today announced its audited financial results for the fiscal year ended December 31, 2023 ("Fiscal Year 2023"), reflecting a remarkable surge in the revenue. Fiscal Year 2023 Financial Highlights Blue Hat achieved a revenue of $73.68 million in 2023, increasing 33 times than the previous year. This extraordinary achiev ...
Blue Hat(BHAT) - 2023 Q4 - Annual Report
2024-04-30 20:06
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 20-F (Mark One) ☐ REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR 12(g) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 OR TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 OR SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 ...
Blue Hat Interactive Entertainment Technology Announces Corporate Refocus into AI Financial Services
Prnewswire· 2024-03-19 09:14
HONG KONG, March 19, 2024 /PRNewswire/ -- Blue Hat Interactive Entertainment Technology Ltd. (NASDAQ: BHAT) announced its shift into AI financial services. Dr. Deanna Liu, Executive Director of Golden Strategy Ltd, a wholly-owned subsidiary of BHAT, stated that this strategy is a proactive response to the growth in Artificial Intelligence technology and the evolving market dynamics. BHAT's strategic shift is not merely a pursuit of new technology but is based on an understanding of the trends in AI technolo ...
Blue Hat joins forces with GTC, a $10 billion brokerage firm
Prnewswire· 2024-03-11 09:25
DUBAI, UAE, March 11, 2024 /PRNewswire/ -- Blue Hat Interactive Entertainment Technology Ltd. (NASDAQ: BHAT) and GTC Group LLC-FZ, a leading Dubai-based financial derivatives trading services company, have officially signed a strategic partnership agreement. It marks a strong alliance between the two parties in the field of financial technology. According to the agreement, BHAT will formally enter the field of financial services such as commodities, foreign exchange, stocks, indices, etc., while GTC GROUP ...
Blue Hat(BHAT) - 2022 Q4 - Annual Report
2023-05-08 12:31
PART I [ITEM 3. KEY INFORMATION](index=6&type=section&id=ITEM%203.%20KEY%20INFORMATION) This section presents selected financial data for the fiscal years 2020, 2021, and 2022, showing a significant decline in revenue and a shift from net income to substantial net losses, alongside a comprehensive list of risk factors. Selected Consolidated Financial Data (2020-2022) | Financial Metric | 2022 | 2021 | 2020 | | :--- | :--- | :--- | :--- | | **Revenues** | $7,376,009 | $15,155,074 | $24,599,923 | | **Gross Profit** | $3,998,349 | $6,482,924 | $13,420,020 | | **Income (Loss) from Operations** | ($7,999,806) | ($60,957,583) | $10,204,409 | | **Net Income (Loss)** | ($9,405,082) | ($60,054,620) | $8,281,017 | | **Basic EPS from cont. operation ($)** | (1.23) | (11.60) | 2.09 | Selected Consolidated Cash Flow Data (2020-2022) | Cash Flow Metric | 2022 | 2021 | 2020 | | :--- | :--- | :--- | :--- | | **Net cash (used in)/from operating activities** | ($1,598,493) | ($22,284,750) | $5,052,415 | | **Net cash used in investing activities** | $6,336 | ($4,498,355) | ($10,761,890) | | **Net cash generated from financing activities** | $2,530,674 | $7,574,848 | $2,493,110 | | **Cash and cash equivalents at end of period** | $76,535 | $135,562 | $15,752,704 | - The company identifies **significant business risks**, including its limited operating history, high market competition, dependence on its distribution network, and business seasonality[13](index=13&type=chunk) - A key structural risk is the company's dependence on **Contractual Arrangements** with its **Variable Interest Entities (VIEs)**, Blue Hat Fujian and Fujian Roar Game, to conduct business in China, which may not be as effective as direct ownership and is subject to scrutiny by PRC authorities[13](index=13&type=chunk)[15](index=15&type=chunk)[28](index=28&type=chunk) - The company faces **substantial risks related to operating in China**, including changes in economic, political, and legal systems, **greater oversight by the Cyberspace Administration of China (CAC)** over data security, and **potential delisting** from U.S. exchanges under the Holding Foreign Companies Accountable Act (HFCAA) if the PCAOB cannot inspect its auditor[15](index=15&type=chunk)[51](index=51&type=chunk)[76](index=76&type=chunk) - The company has identified **three material weaknesses** in its internal control over financial reporting as of December 31, 2022: (i) **insufficient personnel with U.S. GAAP knowledge**, (ii) **ineffective oversight by governance**, and (iii) **inadequate design of internal controls** over financial statement preparation[86](index=86&type=chunk)[295](index=295&type=chunk) [ITEM 4. INFORMATION ON THE COMPANY](index=34&type=section&id=ITEM%204.%20INFORMATION%20ON%20THE%20COMPANY) This section details the company's history, corporate structure, and business operations, including its focus on AR interactive entertainment, recent expansion into IDC and commodity trading, and the extensive PRC legal and regulatory framework governing its activities. - The company operates its core business in China through **two Variable Interest Entities (VIEs)**, Fujian Blue Hat Interactive Entertainment Technology Ltd. and Fujian Roar Game Technology Co., Ltd., which are controlled via a series of **contractual arrangements** rather than direct ownership due to PRC restrictions on foreign investment[101](index=101&type=chunk)[105](index=105&type=chunk) - The company's primary business is the production, development, and operation of **augmented reality (AR) interactive entertainment**, including games, toys, and educational materials, with recent expansion into the **Internet Data Center (IDC) business** and **commodity trading**[111](index=111&type=chunk)[123](index=123&type=chunk) - As of April 27, 2023, the company's intellectual property portfolio included **224 authorized patents**, **14 PCT international patent applications**, **794 artistic copyrights**, **94 registered trademarks**, and **134 software copyrights**[111](index=111&type=chunk)[127](index=127&type=chunk) - The company's corporate structure is a **multi-layered holding structure**: Blue Hat Interactive Entertainment Technology (Cayman Islands) owns Blue Hat BVI, which owns Blue Hat HK, which in turn owns the WFOE (Xiamen Duwei Consulting), and the **WFOE controls the VIEs** (Fujian Blue Hat and Fujian Roar Game) through contractual arrangements[100](index=100&type=chunk)[101](index=101&type=chunk)[175](index=175&type=chunk) [ITEM 5. OPERATING AND FINANCIAL REVIEW AND PROSPECTS](index=56&type=section&id=ITEM%205.%20OPERATING%20AND%20FINANCIAL%20REVIEW%20AND%20PROSPECTS) This section provides management's discussion and analysis of the company's financial performance, highlighting a 51.3% decrease in revenue in FY2022, a shift to significant net losses, and details on liquidity, capital resources, and contractual obligations. Revenue Breakdown by Category (FY2022 vs. FY2021) | Revenue Category | FY 2022 | FY 2021 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Interactive toys - animation series | $9,061 | $657,619 | ($648,558) | (98.62)% | | Interactive toys - game series | $155,559 | $8,723,480 | ($8,567,921) | (98.22)% | | Mobile games | $5,181,410 | $4,165,456 | $1,015,954 | 24.39% | | Information service | $884,329 | $1,608,519 | ($724,190) | (45.02)% | | Commodity Trading | $1,145,650 | $0 | $1,145,650 | N/A | | **Total revenues** | **$7,376,009** | **$15,155,074** | **($7,779,065)** | **(51.33)%** | - **Total revenues decreased by 51.33%** in FY2022, mainly due to the **significant negative impact of COVID-19** on the interactive toy business, which saw a **combined revenue drop of over $9.2 million**, while a **new commodity trading business** was introduced in Q4 2022, generating **$1.15 million in revenue**[184](index=184&type=chunk)[194](index=194&type=chunk)[197](index=197&type=chunk) - **Operating expenses decreased significantly to $12.00 million** in FY2022 from $67.44 million in FY2021, primarily due to a **$25.66 million decrease in G&A expenses**, an **$8.71 million decrease in R&D expenses**, and a **reduction in impairment loss from $18.44 million to $33,397**[201](index=201&type=chunk) - The company's **liquidity is under pressure**, with a **working capital of $4.12 million** and **cash equivalents of only $76,535** as of December 31, 2022, having generated a **net loss of $9.41 million** in FY2022[213](index=213&type=chunk) Contractual Obligations as of December 31, 2022 | Contractual Obligations | Total | Less than 1 year | 1-3 years | 3-5 years | More than 5 years | | :--- | :--- | :--- | :--- | :--- | :--- | | Loan obligations | $1,261,944 | $1,261,944 | $0 | $0 | $0 | | Operating lease obligations | $42,302 | $11,261 | $31,041 | $0 | $0 | | Convertible notes payable | $1,393,499 | $0 | $1,393,499 | $0 | $0 | | Long-term loans - related party | $914,771 | $0 | $0 | $914,771 | $0 | | **Total** | **$3,777,459** | **$1,438,148** | **$1,424,540** | **$914,771** | **$0** | [ITEM 6. DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES](index=69&type=section&id=ITEM%206.%20DIRECTORS%2C%20SENIOR%20MANAGEMENT%20AND%20EMPLOYEES) This section provides information on the company's leadership and workforce, including director and executive officer compensation, board structure, and significant share ownership by management and principal shareholders. - As of December 31, 2022, the company had **27 full-time employees**, **all located in China**[241](index=241&type=chunk) Director and Executive Officer Compensation (FY2022) | Name | Position | Total Compensation (Cash) | | :--- | :--- | :--- | | Xiaodong Chen | CEO and Director | $98,738 | | Caifan He | CFO and Director | $69,635 | | Qinyi Fu | Independent Director | $10,000 | | Jun Ouyang | Independent Director | $10,000 | | Huibin Shen | Independent Director | $10,000 | | Can Su | Independent Director | $10,000 | - The company's officers, directors, and principal shareholders collectively control a **significant portion of the company**, with CEO Xiaodong Chen beneficially owning **13.23% of outstanding shares** and all directors and executive officers as a group owning **14.25%** as of December 31, 2022[85](index=85&type=chunk)[245](index=245&type=chunk) [ITEM 7. MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS](index=75&type=section&id=ITEM%207.%20MAJOR%20SHAREHOLDERS%20AND%20RELATED%20PARTY%20TRANSACTIONS) This section details transactions with related parties, primarily focusing on loans from the CEO, Xiaodong Chen, to the company and his role as a guarantor for certain company loans. - As of December 31, 2022, the company had an **outstanding loan payable to its CEO, Xiaodong Chen, amounting to $935,878**, with the loans being **unsecured, interest-free**, and **$914,771 due on January 31, 2026**[246](index=246&type=chunk) [ITEM 8. FINANCIAL INFORMATION](index=76&type=section&id=ITEM%208.%20FINANCIAL%20INFORMATION) This section confirms the inclusion of audited consolidated financial statements in Item 18, states the absence of material legal proceedings, and clarifies the company's dividend policy. - The company has **never declared or paid a dividend** and intends to retain all future earnings to fund business development and expansion[250](index=250&type=chunk) - The company is **not currently a party to any legal proceedings** that would have a material adverse effect on its business or financial position[249](index=249&type=chunk) [ITEM 10. ADDITIONAL INFORMATION](index=77&type=section&id=ITEM%2010.%20ADDITIONAL%20INFORMATION) This section provides details on the company's share capital, memorandum and articles of association, and material tax considerations, including its status as a Cayman Islands exempted company and its expected non-PFIC classification. - The company is an **exempted company incorporated in the Cayman Islands**, and its **corporate affairs are governed by Cayman Islands law**, which provides **different shareholder rights** compared to U.S. jurisdictions[252](index=252&type=chunk)[264](index=264&type=chunk) - Based on current and expected income and assets, the company **does not presently expect to be classified as a Passive Foreign Investment Company (PFIC)** for U.S. federal income tax purposes for the current taxable year or the foreseeable future[97](index=97&type=chunk)[272](index=272&type=chunk) [ITEM 11. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK](index=86&type=section&id=ITEM%2011.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) The company is exposed to several market risks, including interest rate, credit, liquidity, and significant foreign exchange risk due to its RMB-denominated operations and U.S. dollar reporting currency. - The company faces **significant foreign exchange risk** as **almost all of its consolidated revenues, costs, and assets are denominated in RMB**, while its **reporting currency is the U.S. dollar**, meaning **fluctuations in the RMB/USD exchange rate can affect its reported financial results**[288](index=288&type=chunk) PART II [ITEM 15. CONTROLS AND PROCEDURES](index=87&type=section&id=ITEM%2015.%20CONTROLS%20AND%20PROCEDURES) This section addresses the company's internal controls, concluding that disclosure controls and procedures were not effective as of December 31, 2022, due to identified material weaknesses, which the company is actively remediating. - Management concluded that the company's **disclosure controls and procedures were not effective** as of December 31, 2022, due to identified **material weaknesses**[293](index=293&type=chunk) - **Three material weaknesses** in internal control over financial reporting were identified as of December 31, 2022: 1. **Insufficient personnel with U.S. GAAP accounting knowledge** 2. **Ineffective oversight of financial reporting and internal control by governance** 3. **Inadequate design of internal control over the preparation of financial statements**[295](index=295&type=chunk) [Corporate Governance and Accountant Services](index=90&type=section&id=ITEM%2016.%20%5BRESERVED%5D) This section covers various governance topics, including the identification of the audit committee financial expert, adoption of a Code of Business Conduct and Ethics, disclosure of principal accountant fees, and adherence to home country corporate governance practices. Principal Accountant Fees (Audit Alliance LLP) | Fee Category | FY 2022 | FY 2021 | | :--- | :--- | :--- | | Audit fees | $160,000 | $160,000 | | Audit-related fees | $0 | $0 | | Tax fees | $0 | $0 | | All Other Fees | $0 | $0 | | **Total** | **$160,000** | **$160,000** | - The company **follows its home country (Cayman Islands) practice in lieu of Nasdaq rules** regarding **annual shareholder meetings** and certain shareholder approval requirements for securities issuances, which may afford **less protection to shareholders**[303](index=303&type=chunk)[304](index=304&type=chunk) PART III [FINANCIAL STATEMENTS](index=92&type=section&id=ITEM%2018.%20FINANCIAL%20STATEMENTS) This section contains the company's audited consolidated financial statements for fiscal years 2020-2022, prepared under U.S. GAAP, including the independent auditor's report with a "Going Concern Uncertainty" paragraph due to recurring losses and negative operating cash flow. - The **independent auditor's report includes a 'Going Concern Uncertainty' paragraph** due to the company suffering **recurring losses from operations (approx. $9.41 million in 2022)** and **negative operating cash flow (approx. $1.60 million in 2022)**, which **raise substantial doubt about its ability to continue as a going concern**[317](index=317&type=chunk) Consolidated Balance Sheet Summary | Metric | Dec 31, 2022 | Dec 31, 2021 | | :--- | :--- | :--- | | **Total Current Assets** | $21,532,070 | $21,704,144 | | **Total Assets** | $34,276,858 | $36,511,577 | | **Total Current Liabilities** | $17,408,208 | $18,281,724 | | **Total Liabilities** | $19,747,519 | $18,861,371 | | **Total Equity** | $14,529,339 | $17,650,206 | - As of December 31, 2022, the company had **significant accounts receivable of $13.5 million (net)** and **other receivables of $4.7 million (net)**[320](index=320&type=chunk) - For the year ended December 31, 2022, **two customers accounted for 30.1% and 16.98% of the Company's total revenues**, indicating **significant customer concentration risk**[437](index=437&type=chunk)