Core Insights - Global Mofy AI Limited plays a significant role in delivering visual effects for the fantasy-action series Guardians of the Dafeng, showcasing its expertise in virtual content production and 3D digital asset development [1][2][3] Group 1: Company Achievements - The visual effects created by Global Mofy for Guardians of the Dafeng include epic battle sequences and intricate magical effects, elevating the series to cinematic standards and captivating global audiences [2][3] - The series has received widespread acclaim for its high-quality visual effects, highlighting the capabilities of Global Mofy's team in creative design and technology [3][4] - Guardians of the Dafeng is currently being translated into 13 languages, indicating the company's ability to execute sophisticated, high-profile projects and expand into new markets [4] Group 2: Technology and Innovation - Global Mofy utilizes generative AI technology and a high-precision 3D digital assets bank to deliver high-caliber projects that meet the demands of top-tier productions [2][3] - The company’s proprietary "Mofy Lab" technology platform enables the creation of high-definition virtual versions of various physical world objects, applicable in movies, TV series, AR/VR, animation, advertising, and gaming [5] Group 3: Market Performance - Guardians of the Dafeng has achieved significant popularity across various platforms, including surpassing a 30,000 in-platform popularity index on Tencent Video and becoming the highest-rated Chinese-language drama in North America with a score of 9.5 out of 10 [7]

Core Viewpoint - Global Mofy AI Limited reported exceptional financial performance for the fiscal year ended September 30, 2024, with significant year-over-year growth in revenue, gross profit, and net income, driven by the demand for high-quality digital assets and AI-driven solutions in various industries [2][3][4]. Financial Performance - Total revenue reached $41.4 million, marking a 53.8% increase from $26.9 million in the previous fiscal year [6][8]. - Gross profit increased by 43.2% to $20.8 million, with a gross margin of 50.3% [7][8]. - Net income for the fiscal year was $12.1 million, representing an 89% increase from $6.6 million in fiscal year 2023, resulting in a net margin of 29.4% [8][9]. Asset Growth - Total assets as of September 30, 2024, reached $59.2 million, a substantial increase of 118.3% compared to $27.1 million as of September 30, 2023 [5][6]. Research and Development - R&D expenses totaled $7.5 million, reflecting a 109.8% increase from $3.6 million in fiscal year 2023, focusing on expanding the 3D digital asset library and advancing generative AI solutions [10]. Strategic Developments - The 3D digital asset library expanded to over 100,000 assets by the end of fiscal year 2024, supporting applications in film, television, advertising, online gaming, and digital tourism [11]. - The company announced the development of the Gausspeed platform for film production, enhancing collaboration and production efficiency [12]. - Global Mofy established GMM DISCOVERY LLC in North America to strengthen its presence in the AI-driven content market [13]. - A $69 million investment fund was launched to foster growth in the AI and digital economy sectors [14]. - The Century Mofy Vocational Education Institute was set up to address the demand for skilled talent in AI and digital content creation [15]. Membership and Recognition - Global Mofy was awarded membership in the Industrial Brand Promotion Organization by the Ministry of Industry and Information Technology (MIIT), highlighting its leadership in generative AI technology [18].

Corporate Structure and Subsidiaries - Global Mofy Cayman is a holding company incorporated on September 29, 2021, with no significant assets or operations, conducting business in China through Global Mofy China and its subsidiaries[60] - Global Mofy HK, incorporated on October 21, 2021, is a wholly-owned subsidiary of Global Mofy Cayman and acts as a holding company with no active business[61] - Global Mofy Zhejiang WFOE, incorporated on April 3, 2023, is a wholly-owned subsidiary of Global Mofy HK and engages in technology development, technical services, and software development[62] - Global Mofy China, incorporated on November 22, 2017, is an operating subsidiary engaged in technology development, technical services, design, advertisement production, and film screening[63] - Kuyu Intelligent, incorporated on September 3, 2024, is a wholly-owned subsidiary of Global Mofy Zhejiang WFOE and currently not engaging in any active business[64] - Kashi Mofy, incorporated on July 31, 2019, is a wholly-owned subsidiary of Global Mofy China and is one of the operating subsidiaries[65] - Xi'an Mofy, incorporated on June 8, 2018, is a majority-owned subsidiary of Global Mofy China and currently not engaging in any active business[66] - Global Mofy California, incorporated on December 14, 2023, is a wholly-owned subsidiary of Global Mofy China and currently not engaging in any active business[67] - The VIE structure was dissolved on July 8, 2022, making Global Mofy China a wholly-owned subsidiary of Global Mofy WFOE[44] - Global Mofy China dissolved its VIE structure in June 2022 due to changes in business scope and regulatory concerns, transitioning to a direct parent-subsidiary structure[70] - Global Mofy's corporate structure includes subsidiaries such as Global Mofy HK Limited, Global Mofy Zhejiang WFOE, and Xi'an Mofy, with varying ownership percentages and business activities[225][226][228] - Global Mofy China's corporate structure includes 12 subsidiaries, with key entities like Global Mofy HK Limited and GMM Discovery LLC incorporated in Hong Kong SAR and Delaware respectively[116] Financial Performance and Risks - Revenue for the year ended September 30, 2024 was $41.36 million, with 51% from virtual technology services and 49% from digital assets development and others[142] - Revenue from digital assets development and others grew from $4.02 million in 2022 to $20.5 million in 2024, representing 49% of total revenue[156] - One customer accounted for 13% of total revenue in 2024, while two customers accounted for 20% and 17% of total revenue in 2022[159] - The company expanded into digital asset development in 2021 and entered the metaverse industry, with revenue from this business line reaching $20.5 million in 2024[156] - The company has a history of net losses and negative cash flows from operating activities, which may continue in the future[157] - The company faces risks related to the metaverse and digital entertainment industry, including market conditions, customer preferences, and potential regulations[169] - The company may face challenges in maintaining and growing its digital asset base and operating margins[163] - The company's business is subject to risks from natural disasters, political crises, and public health crises, such as the COVID-19 pandemic[148] - The company may face difficulties in complying with Section 404 of the Sarbanes-Oxley Act, which could lead to material misstatements in financial statements[172] - The COVID-19 outbreak has severely impacted global economies, leading to reduced tourist arrivals, business exchanges, and economic slowdowns, with global financial markets experiencing high volatility[173] - The company's Class A Ordinary Shares have declined significantly, risking delisting from Nasdaq, which could discourage U.S. broker-dealers from trading the shares due to penny stock rules[175][176] - The company's dual-class share structure concentrates voting control with the CEO and Chairman of the Board and their affiliates[174] - The company remains an "emerging growth company" until it exceeds $1.235 billion in annual gross revenues, becomes a "large accelerated filer," or issues more than $1.0 billion in nonconvertible debt[184] - The company's future success depends on the market acceptance and widespread adoption of the metaverse, with potential risks from PRC government regulations against the industry[199] - The company is exposed to risks from epidemics and infectious diseases, such as COVID-19, which could materially and adversely affect its business[205] - The company's Class A Ordinary Shares are subject to high volatility, which could result in substantial losses for investors and affect the company's ability to retain key employees[177][181] - The company may face challenges in raising additional capital due to unpredictable capital markets, which could limit its ability to fund operations and respond to competitive pressures[203] - The company has identified material weaknesses in its internal control over financial reporting, which could result in inaccuracies in financial statements and hinder fraud prevention[204] - The company does not expect to pay cash dividends to shareholders in the foreseeable future[215] Regulatory and Compliance - PRC regulations permit the payment of dividends only out of accumulated profits, as determined in accordance with Chinese accounting standards and regulations[50] - Global Mofy acquired domestic operating entities using a "two-step slow-walk" method, avoiding Ministry of Commerce approval, but risks remain if the method is deemed invalid retroactively[69] - PRC subsidiaries are required to set aside 10% of net income after taxes as statutory surplus reserves until reserves reach 50% of registered capital[85] - No dividends, distributions, or transfers have been made between Global Mofy Cayman and its subsidiaries as of the report date[86] - PRC subsidiaries can transfer funds internally under the Provisions on Private Lending Cases, but no cash has been transferred to the holding company or US investors[74] - Global Mofy's auditor, YCM CPA INC., is based in the US and subject to PCAOB inspections, ensuring compliance with US regulatory standards[88] - PRC subsidiaries have obtained all necessary business licenses and permissions required for operations in China[89] - The Holding Foreign Companies Accountable Act (HFCAA) could impact Global Mofy if future regulatory changes impose stricter criteria on non-US auditors[78] - The company's operations in China are subject to foreign exchange regulations, including the need for approval or registration for capital account transactions such as direct investments and repatriation of profits[94] - In 2012, SAFE simplified foreign exchange procedures, allowing foreign-invested enterprises to open multiple capital accounts and remit profits without prior approval[95] - Circular 19 and Circular 16 allow foreign-invested enterprises to use foreign exchange funds for current and capital account expenditures within their business scope, with certain restrictions[96] - PRC residents or entities must register with qualified banks for foreign exchange matters related to offshore investment and financing through special purpose vehicles (SPVs)[97] - Failure to comply with foreign exchange registration requirements may result in restrictions on dividend payments and capital inflows, as well as penalties[99] - FIEs in China can only distribute dividends from retained earnings and must set aside at least 10% of after-tax profits as statutory reserve funds until reaching 50% of registered capital[100] - The company's operations are in compliance with PRC labor laws, including the requirement to execute written employment contracts and contribute to social insurance and housing provident funds[111] - Employers failing to pay social insurance on time may face fines of 0.05% of unpaid amounts per day, escalating to 1-3 times the unpaid sum if not rectified within the prescribed time limit[112] - The company's subsidiaries and operations are structured in compliance with PRC regulations, including those governing foreign-invested enterprises[110][114] - The company is subject to cybersecurity review requirements if it controls more than one million users' personal information and seeks to list in a foreign country[144] - The company's compliance with U.S. securities regulations, including the Sarbanes-Oxley Act and the Exchange Act, will increase legal, accounting, and financial compliance costs, particularly after it is no longer an "emerging growth company"[220] - The company's corporate governance is governed by Cayman Islands law, which may provide less protection for shareholders compared to U.S. statutes or judicial precedents[223] Intellectual Property and Technology - Global Mofy China holds 5 registered trademarks, 1 registered domain name, and 45 registered copyrights, while Xi'an Mofy and Zhejiang Mofy hold 5 and 9 copyrights respectively[120] - The company plans to register its 3D digital assets using part of the IPO proceeds, as these assets are currently protected under PRC copyright laws but not formally registered[121] - Global Mofy China has registered 14 copyrighted works, including "Wu Gen Zhi Guo" and "Barlow Rabbit," with completion dates ranging from 2018 to 2021[126] - The company has developed 13 software systems, including the Global Mofy Maya Assets Batch Importing Plug-in System and the Global Mofy AI Visual Effect Platform, all registered under copyright[128] - The company's intellectual property strategy relies on trademarks, patents, know-how, and confidentiality agreements with employees, customers, and suppliers to maintain technological advantages[119] - Global Mofy China does not rely on third-party intellectual property rights for its business operations, emphasizing self-developed assets and technologies[120] - Global Mofy's digital asset bank contains over 100,000 high-precision 3D digital assets with 4K (4096*2160) resolution[135] - The company operates in two main business lines: virtual technology services and digital asset development, with plans to cease the digital marketing line[135] - Global Mofy's proprietary "Mofy Lab" platform utilizes 3D rebuilt technology and AI interactive technology to create high-definition virtual content[140] - The company has developed the Gausspeed platform, leveraging NVIDIA Omniverse and RTX GPUs for generative AI solutions[135] - Virtual technology service contracts are primarily fixed-price, milestone-based, covering visual effect design, content development, and production[137] - Digital assets are licensed for use in applications such as movies, TV series, AR/VR, animation, advertising, and gaming[138] - The company plans to expand its digital asset bank and develop more products to serve the growing digital content market[139] - Global Mofy has registered multiple software systems, including Virtual Asset Identification and Analysis Software (V1.0) and Virtual Asset Conversion Software (V1.0)[129] - The company has developed real-time rendering efficiency enhancement software (V1.0) and automated image perspective correction tools (V1.0)[131] - Global Mofy owns the domain name globalmofy.cn, registered under Global Mofy (Beijing) Technology Co., Limited[132] - Global Mofy China's registered trademarks include "Mo Fei Shi Xiao," "Mo Fei Ying Ye," and "GAUSSPEED Gao Si Guang Nian," with application dates ranging from 2021 to 2024[123] Financial Reporting and Accounting - The company prepares its consolidated financial statements as of and for the year ended September 30, 2021, in accordance with International Financial Reporting Standards (IFRS) and International Accounting Standards (IAS) as issued by the International Accounting Standards Board (IASB) and adopted by the European Union[216] - The company may take advantage of the extended transition period for adopting new or revised accounting standards under the JOBS Act if it converts to U.S. GAAP while still an "emerging growth company"[216] - The company is exempt from including an attestation report on internal control over financial reporting issued by its independent registered public accounting firm while it remains an "emerging growth company"[217] - The company is not subject to U.S. proxy rules and its officers, directors, and principal shareholders are exempt from Section 16 reporting and "short-swing" profit recovery provisions under the Exchange Act[218] - The company issued a total of 827,589 ordinary shares upon the exercise of new warrants through Alternative Cashless Exercise on July 5 and July 10, 2024, resulting in the retirement of all new warrants[234] - The company established a VIE structure through agreements with Global Mofy China and its shareholders, consolidating Global Mofy China and its subsidiaries in its financial statements under U.S. GAAP[229] - The company may be classified as a passive foreign investment company (PFIC), which could result in adverse U.S. federal income tax consequences for U.S. investors holding its Class A Ordinary Shares or warrants[221][222] Real Estate and Assets - Global Mofy China's office in Beijing covers an area of 1,962.14 square meters, leased for three years starting September 18, 2023, with a monthly rent of RMB 266,360 (approximately US$36,675)[118]

Core Viewpoint - Global Mofy AI Limited has regained compliance with Nasdaq's minimum bid price requirement, allowing it to continue its listing on the Nasdaq Capital Market [1][2]. Group 1: Compliance with Nasdaq Requirements - The company was notified on September 25, 2024, that it was not in compliance with the minimum bid price requirement due to its Class A ordinary shares failing to maintain a minimum bid price of $1.00 for 30 consecutive business days [2]. - To regain compliance, the company needed to maintain a minimum closing bid price of $1.00 or more for at least 10 consecutive trading days, which it successfully achieved from November 26, 2024, to December 10, 2024 [2]. - Nasdaq has confirmed that the compliance issue is now resolved and the matter is closed [2]. Group 2: Company Overview - Global Mofy AI Limited is a generative AI-driven technology solutions provider focused on virtual content production and the development of 3D digital assets for the digital content industry [3]. - The company utilizes its proprietary "Mofy Lab" technology platform, which integrates interactive 3D and AI technology to create high-definition virtual representations of various physical objects [3]. - Global Mofy Metaverse is recognized as one of the leading digital asset banks in China, boasting over 100,000 high-precision 3D digital assets applicable in movies, TV series, AR/VR, animation, advertising, and gaming [3].

Core Viewpoint - Global Mofy AI Limited successfully closed a private placement financing, raising approximately $2.5 million to enhance its generative AI capabilities and expand its digital asset offerings in the virtual content industry [1][2][3]. Group 1: Financing Details - The Company issued 5,000,000 Class A ordinary shares and 10,000,000 warrants, each warrant allowing the purchase of one Class A Ordinary Share at an exercise price of $3.00 [1]. - The gross proceeds from the Offering were approximately $2.5 million, which will be used for the development of the generative AI platform, research and development, administrative operations, talent acquisition, and working capital needs [2]. Group 2: Company Strategy and Vision - The CEO of Global Mofy expressed excitement about the financing round, emphasizing its importance in leading the generative AI transformation in the digital content sector [3]. - The funding will enable the Company to strengthen its AI capabilities, expand its 3D digital asset offerings, and explore new applications for AI in the virtual content industry [3]. Group 3: Company Overview - Global Mofy AI Limited is a generative AI-driven technology solutions provider focused on virtual content production and the development of digital assets for the digital content industry [5]. - The Company utilizes its proprietary "Mofy Lab" technology platform to create high-definition 3D digital assets applicable in various fields such as movies, TV series, AR/VR, animation, advertising, and gaming [5]. - Global Mofy Metaverse is recognized as one of the leading digital asset banks in China, housing over 100,000 high-precision 3D digital assets [5].

Company Overview - Global Mofy Metaverse Limited (NASDAQ: GMM) is a generative AI-driven technology solutions provider specializing in virtual content production and the development of 3D digital assets for the digital content industry [1][5] - The company utilizes its proprietary "Mofy Lab" technology platform, which integrates interactive 3D and AI technologies to create high-definition virtual versions of physical world objects, including characters, objects, and scenes [5] - Global Mofy Metaverse is one of the leading digital asset banks in China, with a library of over 100,000 high-precision 3D digital assets [5] Industry Insights - Generative AI and simulation technologies are described as the cornerstone of a new industrial revolution, with transformative potential across industries, particularly in digital content creation [2] - NVIDIA's advancements in Universal Scene Description (OpenUSD) and the introduction of NVIDIA NIM™ microservices are enhancing generative AI capabilities across various industries [3] - The integration of generative AI with standardized creation processes, such as those facilitated by NVIDIA Omniverse, enables the development of scalable and interoperable high-fidelity digital assets, videos, and immersive scenes [3] Company Developments - Global Mofy's CEO, Haogang Yang, participated in SIGGRAPH 2024, engaging with industry leaders and exploring the latest advancements in generative AI and computer graphics [1][2] - The company's Gausspeed platform, developed in alignment with NVIDIA's Omniverse systems and OpenUSD standard, integrates advanced generative AI capabilities with standardized creation processes for videos and 3D digital assets [3] - Gausspeed received significant interest and positive feedback from industry partners at SIGGRAPH 2024, reinforcing the company's commitment to innovation in digital content creation [4] Strategic Focus - Global Mofy is committed to pioneering innovation in digital content creation and integrating the latest generative AI technologies into its Gausspeed platform [4] - The company aims to leverage the knowledge and connections gained from SIGGRAPH 2024 to drive innovation efforts, achieve growth, and deliver exceptional value to shareholders [4]

Core Insights - Global Mofy Metaverse (NASDAQ:GMM) stock is experiencing significant gains following the announcement of a collaboration with Heartdub, a provider of physical simulation technology [1] - The partnership aims to leverage Nvidia's Omniverse Cloud API and RTX GPU technologies to launch Gausspeed, an AI platform for creatives, particularly in the film industry [1][2] - GMM stock has surged by 51.8% as of Tuesday morning, with trading volume exceeding 50 million shares, a substantial increase from its average of approximately 423,000 shares [3] Company Developments - The collaboration with Heartdub is expected to provide Global Mofy Metaverse with a competitive advantage by combining resources and technologies to transform filmmaking [2] - The launch of Gausspeed is positioned as a significant innovation in the creative sector, particularly for early scene creation in film [1][2] Market Reaction - The announcement has led to heavy trading activity in GMM stock, indicating strong investor interest and confidence in the company's future prospects [3] - The stock's price increase reflects positive market sentiment towards the strategic partnership and its potential impact on the company's growth [3]

Company Overview - Global Mofy Metaverse Limited (NASDAQ: GMM) is a technology solutions provider specializing in virtual content production and digital asset development for the digital entertainment industry [1][4] - The company utilizes its proprietary "Mofy Lab" technology platform, which integrates interactive 3D and AI technologies, to create high-definition virtual versions of physical world objects, including characters, objects, and scenes [4] - Global Mofy Metaverse is one of China's leading digital asset banks, with a library of over 30,000 high-precision 3D digital assets [4] Recent Development - The company has signed a new agreement to provide virtual technology services to one of China's leading content creators, leveraging its Mofy Lab platform for virtual scene construction in an upcoming television program [1] - Mofy Lab's AI-driven asset labeling and sorting system enables faster digital asset deployment, reducing time-to-market and development costs while maintaining superior quality [2] Strategic Positioning - The company aims to solidify its position as a premier digital asset developer, owner, and licensor by creating tools and digital components essential for AI, virtual, and Metaverse-focused applications [3] - Global Mofy Metaverse is focused on empowering creators to bring imaginative concepts to virtual life, positioning itself at the forefront of digital content creation [3] Industry Applications - The digital assets developed by the company are applicable across various industries, including movies, TV series, AR/VR, animation, advertising, and gaming [4]

BEIJING, April 02, 2024 (GLOBE NEWSWIRE) -- Global Mofy Metaverse Limited (the "Company" or "Global Mofy Metaverse") (NASDAQ:GMM), a technology solutions provider engaged in virtual content production and the development of digital assets for use in the broader digital entertainment industry, was featured at China's 2024 Fashion Week held in Beijing. In a keynote speech, Tiansheng Liu, Global Mofy's East China Headquarters Chief Operating Officer highlighted how the Company is facilitating its clients' expl ...

Company Overview - Global Mofy Metaverse Limited (NASDAQ: GMM) is a technology solutions provider specializing in virtual content production and digital asset development for the digital entertainment industry [1][5] - The company utilizes its proprietary "Mofy Lab" technology platform, which integrates interactive 3D and AI technologies to create high-definition virtual versions of physical world objects, including characters, objects, and scenes [5] - Global Mofy Metaverse operates one of the leading digital asset banks in China, consisting of over 30,000 high-precision 3D digital assets [5] New Subsidiary: Gauss AI - Global Mofy Metaverse has established a new subsidiary, Gauss AI, focusing on the monetization of AI-generated content (AIGC), AI-generated 3D digital assets, and synthetic video content creation [1] - Gauss AI will specialize in providing advanced AI solutions to customers, aiming to enhance efficiency, intelligence, and innovation in content creation while reducing costs [3] - The subsidiary plans to invest in product and technology roadmaps, leveraging existing and new opportunities in the digital entertainment industry, which is being transformed by the global adoption of AI [3] Industry and Technology Insights - Synthetic video technology involves the use of AI and computer graphics to produce realistic videos, visual effects, animations, and game development, enhancing efficiency and quality through machine learning algorithms [2] - This technology is widely applied in industries such as entertainment, virtual production, video editing, and advertising, and is increasingly used for creating advertisements, product promotions, and brand campaigns [2] - The digital entertainment industry is undergoing rapid changes due to the proliferation of smart devices, which require compelling content for entertainment, education, sales, and information [4] Strategic Vision and Competitive Positioning - The company aims to leverage its expertise in digital content creation and licensing to help customers adapt to the new competitive reality, benefiting from lower costs and greater efficiencies in content creation, deployment, and management [4] - Global Mofy Metaverse believes it is well-positioned competitively due to its leading digital asset bank in China, strong customer base, and a track record of technology innovation, offering a one-stop, lower-cost solution for high-quality virtual content creation [4] Contact Information - For more information, Global Mofy Metaverse can be contacted through its Investor Relations Department or Global IR Partners [8]