Financial Performance - Net profit for the three months ended March 31, 2024, was $23,883,878, a significant increase from a net loss of $212,194 for the same period in 2023[11] - The company reported a profit per share of $9.10 for the three months ended March 31, 2024, compared to a loss per share of $0.08 for the same period in 2023[11] - The company recognized a gain of $24.2 million on digital assets for the three months ended March 31, 2024, compared to a gain of $10.2 million for the same period in 2023[53] - The company reported a net profit of $23,883,878 for the period ended March 31, 2024, compared to a net loss of $212,194 for the same period in 2023, primarily due to a gain from digital assets of $24,214,021[84] Asset Growth - Total current assets increased to $73,345,474 as of March 31, 2024, compared to $49,133,905 as of December 31, 2023, representing a 49.2% growth[9] - Digital assets held increased to $59,420,922 as of March 31, 2024, up from $35,206,901 as of December 31, 2023, reflecting a 68.8% increase[9] - Total stockholders' equity rose to $68,809,595 as of March 31, 2024, compared to $44,925,822 as of December 31, 2023, marking a 53.2% increase[12] Operating Expenses - Operating expenses for the three months ended March 31, 2024, were $330,143, up from $212,194 in the same period of 2023, indicating a 55.7% increase[11] - General and administrative expenses increased to $330,143 for the three months ended March 31, 2024, up from $212,194 in the prior year, mainly due to higher BTC consulting fees[85] Bitcoin Acquisition Strategy - The company continues to pursue a strategy of acquiring and holding bitcoin, with a total of 833 bitcoins held as of March 31, 2024[20] - The company’s bitcoin acquisition strategy involves using liquid assets exceeding working capital requirements to acquire bitcoin, with no specific target for the amount to hold[80] - As of March 31, 2024, the company held approximately 833.19 bitcoins with a carrying value of approximately $59.4 million, up from $35.2 million as of December 31, 2023[27] - The company has a prepayment of approximately $12,125,500 for the 40% prepayment of 1000 BTC, expected to be delivered by May 2024 at a lock-up price of $30,000 per BTC[55] Cash and Cash Equivalents - Cash and cash equivalents remained stable at $668,388 as of March 31, 2024, unchanged from the previous period[14] - The company held cash in bank amounting to $668,388 as of March 31, 2024, unchanged from December 31, 2023[52] - The company had cash on hand of $668,388 as of March 31, 2024, with cash flow used in operating activities of $40,530, a decrease from $212,194 in the prior period[86] Internal Controls and Governance - As of March 31, 2024, the company's management concluded that its disclosure controls and procedures were not effective due to limited internal resources and lack of multiple levels of transaction review[94] - Material weaknesses identified include lack of an audit committee and insufficient oversight from outside directors, leading to ineffective internal controls[94] - The company identified material weaknesses related to internal audit functions and lack of segregation of duties within accounting functions[95] - The company plans to remediate significant deficiencies in internal controls with proper funding and will continue to monitor the effectiveness of these steps[96] - There were no changes in internal control over financial reporting that materially affected the company's controls during the most recently completed fiscal quarter[98] Shareholder Matters - The company entered into a share purchase agreement on March 1, 2024, to acquire 2,000 ordinary shares of Future Dao Group Holding Limited for an aggregate purchase price of $13,396,000, to be paid by issuing 3,940,000 shares of common stock[73] - As of March 31, 2024, the total issued and outstanding common stock increased to 2,625,130 shares following the issuance of 1,570,600 shares in September 2023[69] - The total issued and outstanding shares of the company's common stock decreased from 195,057,503 to 1,054,364 shares following a 1 for 185 reverse stock split approved on June 9, 2023[105][106] - As of March 31, 2024, the company's common stock issued increased to 2,625,130 shares, with a total amount of $12,616,454 for 1,570,600 shares issued in September 2023[107] Legal Matters - A derivative lawsuit was filed against the company by purported shareholders seeking control, which was dismissed without prejudice on October 18, 2023[99] - A preliminary injunction was issued on January 5, 2024, restraining unauthorized individuals from claiming control or acting on behalf of the company[103] Revenue Generation - The company did not generate any revenue from its SaaS business during the period ended March 31, 2024[52] - The company applies ASC 606 for revenue recognition, which includes a five-step model for recognizing revenue as performance obligations are satisfied[25] Currency Exchange - The RMB to USD exchange rate was 7.22 as of March 31, 2024, compared to 7.09 as of December 31, 2023[30]

Bitcoin Holdings and Strategy - As of December 31, 2023, the Company holds 833 bitcoins with a market value of $35,206,901, reflecting a digital asset gain of $10,216,901 since the previous year[13]. - The Company has invested $24,990,000 in bitcoin acquisitions, indicating a strategy focused on long-term holdings and potential appreciation due to limited supply[13]. - The Company may periodically sell bitcoin for corporate purposes, including treasury management and tax benefits[12]. - The Company has not set a specific target for the amount of bitcoin to hold, opting to monitor market conditions for future acquisitions[11]. - The Company’s strategy includes engaging in capital raising transactions to fund bitcoin purchases, subject to market conditions[10]. - The Company aims to leverage its bitcoin holdings to create income streams and generate funds[12]. - The bitcoin acquisition strategy involves using liquid assets exceeding working capital requirements and may include issuing debt or equity securities to purchase additional bitcoin[51]. - The total number of bitcoin that can be generated is limited to 21 million, with the current mining reward at 6.25 bitcoin per block, expected to halve to 3.125 bitcoin in April 2024[53]. - The Bitcoin network operates on a mining process that validates transactions approximately every 10 minutes, requiring significant computational power[52]. Regulatory Environment - Regulatory developments in Hong Kong and potential changes in PRC laws may impact the Company's operations and ability to raise capital[14][25]. - The Company is not currently required to obtain regulatory approvals from PRC authorities for its operations in Hong Kong[25]. - The Company acknowledges risks associated with potential future regulatory actions by the PRC government that could affect its holding company structure and operations[26]. - The company is subject to evolving regulations regarding digital assets, which may impact its operations and market participation[30]. - The Holding Foreign Company Accountable Act may lead to delisting if the company's auditor cannot be inspected for two consecutive years, affecting trading on U.S. exchanges[39]. - The company is subject to PRC regulations regarding overseas listings, requiring filings with the CSRC for domestic enterprises planning to list abroad[76]. Business Operations and Services - The Company plans to continue providing AI-enabled software development services, targeting various business sectors including industrial[9]. - The company provides AI-enabled software development services, focusing on developing various SaaS solutions for businesses across the USA, Hong Kong, China, and Singapore[48]. - The analytics market is highly competitive, with the company's success dependent on software quality, service reliability, and the ability to incorporate advanced technologies[49]. - The company operates primarily in Hong Kong, facing legal and operational risks due to political and economic influences from China, which could significantly impact its business and stock value[27]. - The SEC has increased scrutiny on companies with significant China-based operations, potentially affecting the company's filings and investor relations[28]. Financial and Tax Compliance - Current PRC regulations allow the company's subsidiaries to pay dividends only from accumulated profits, which may restrict cash flow to the holding company[47]. - The company does not anticipate declaring or paying any dividends in the foreseeable future, focusing instead on retaining funds for business operations and expansion[44]. - The VAT rate applicable to the company is currently 6%, with an enterprise income tax rate of 25%[98]. - The Arrangement between the PRC and Hong Kong allows for a reduced withholding tax rate of 5% on dividends for qualifying Hong Kong resident enterprises[96]. - Trading gains from the sale of shares in Hong Kong are subject to profits tax rates of 8.25% on assessable profits up to HKD 2,000,000 and 16.5% on profits over that threshold[112]. - Hong Kong stamp duty is charged at an ad valorem rate of 0.1% on the higher of the consideration or market value of shares, totaling 0.2% for typical transactions[113]. Compliance and Legal Matters - The company maintains compliance with the Cyber Security Law of the PRC, ensuring the security of personal data and network operations[84]. - A derivative lawsuit was filed against the company on September 28, 2023, seeking control, but was dismissed without prejudice on October 18, 2023[69]. - The Foreign Investment Law of the PRC, effective from January 1, 2020, ensures equal treatment for foreign-funded enterprises in terms of policies and participation in standard-setting[86]. - Under the PRC Company Law, foreign-invested enterprises must obtain approval from MOFCOM before establishment and operation[90]. - Wholly foreign-owned enterprises can only distribute dividends from accumulated after-tax profits, with a mandatory allocation of 10% to a statutory reserve fund[93]. - Employers in the PRC are required to provide social insurance covering basic pension, medical, unemployment, maternity, and occupational injury insurance[104]. - Companies must comply with regulations regarding housing provident fund contributions, with penalties for late or insufficient payments ranging from RMB10,000 to RMB50,000[107]. - The Foreign Investment Law includes provisions for the protection of intellectual property rights and trade secrets[86]. - The registration of foreign investment enterprises must be completed with the foreign exchange bureau to facilitate account opening and fund remittance[92]. - The Company is in compliance with PRC's social insurance and housing fund regulations[108]. - The Company has applied and received a business registration certificate in Hong Kong, complying with local regulations[110]. - The Company is in compliance with Hong Kong taxation regulations[114]. - The Company is classified as a "smaller reporting company" and is not required to provide certain market risk disclosures[168].

Financial Performance - As of September 30, 2023, the company reported total revenue of $2,238,029, a decrease of 75.7% compared to $9,197,681 for the same period in 2022[96]. - The net loss for the nine-month period ended September 30, 2023, was $9,455,304, compared to a net income of $8,538,873 for the same period in 2022, indicating a significant shift in financial performance[99]. - The gross profit for the nine-month period ended September 30, 2023, was $838,334, down from $1,526,845 in the same period of 2022[94]. - The company reported a gross loss of $396,965 from discontinued operations for the nine months ended September 30, 2023[68]. Expenses and Impairments - The company incurred impairment losses on digital assets amounting to $2,591,490 for the nine-month period ended September 30, 2023[94]. - General and administrative expenses increased to $15,128,916 for the nine months ended September 30, 2023, up from $10,419,873 in the prior year, primarily due to higher system development costs[99]. Discontinued Operations - The total assets related to discontinued operations increased to $12,105,747 as of September 30, 2023, compared to $1,475,491 as of December 31, 2022[69]. Share Issuance - The company issued 1,570,600 shares in September 2023, raising a total of $12,616,454, bringing the total issued shares to 2,625,130[79]. Tax and Strategy - The company has not recognized an income tax benefit for its operating losses in the United States, as it does not expect to commence active operations there[80]. - The company plans to continue its strategy of acquiring bitcoin with liquid assets exceeding working capital requirements, viewing bitcoin as a long-term holding[89].

Financial Performance - Total service revenue for the three months ended June 30, 2023 was $0, compared to $1,451,459 for the same period in 2022, representing a decrease of 100%[10] - Gross loss for the three months ended June 30, 2023 was $(94,582), compared to a gross profit of $1,355,510 for the same period in 2022[10] - Operating expenses for the three months ended June 30, 2023 were $822,220, down from $1,827,438 in the same period of 2022, a reduction of approximately 55%[10] - Net income from continuing operations for the three months ended June 30, 2023 was $26,079, compared to a net loss of $(452,139) for the same period in 2022[10] - Total comprehensive loss for the three months ended June 30, 2023 was $(637,193), compared to a loss of $(1,365,792) for the same period in 2022[10] - The net loss for the six-month period ended June 30, 2023, was $926,518, compared to a net income of $274,871 for the same period in 2022[110] - Total revenue for the six-month period ended June 30, 2023, was $603,343, a decrease of approximately 83.2% from $3,590,411 in the same period of 2022[111] Assets and Equity - Total assets decreased from $46,229,241 to $42,421,096, a decline of approximately 8.7%[9] - Total stockholders' equity decreased from $41,719,510 to $38,879,565, a decline of approximately 6.7%[11] - Cash on hand amounted to $20,004,914 with accounts receivable reported as nil as of June 30, 2023[45] - Cash and cash equivalents as of June 30, 2023, totaled $20,004,914, slightly down from $20,025,480 as of December 31, 2022[69] - Property and equipment, net, decreased to $739,028 as of June 30, 2023, from $921,952 as of December 31, 2022[73] - Loan receivables increased significantly to $7,220,242 as of June 30, 2023, compared to $1,614,841 as of December 31, 2022[80] Cash Flow - The company reported net cash flows provided by operating activities of $5,239,579 for the six months ended June 30, 2023, compared to $5,344,055 for the same period in 2022[17] - Cash flow provided by operating activities for the six-month period ended June 30, 2023, was $5,239,579, a slight decrease from $5,344,055 in the prior period[123] - The company incurred cash used in investing activities of $5,605,401 for the six-month period ended June 30, 2023, primarily due to a loan to a third party[123] YCloud System and Market Strategy - The YCloud system targets a potential market of 330 million individual micro-business owners by the end of 2023[20] - The company has established trial operations in Hong Kong and aims to utilize the YCloud system for global strategic cooperation with various social media platforms[20] - YCloud serves multiple industries, including tourism, hospitality, and retail, enhancing supply chain systems and marketing relationship management[21] - The company has developed new technology to meet the evolving demands of micro-business owners, particularly in response to shifts caused by the COVID-19 pandemic[26] - The company derives revenue from system service fees charged for transactions conducted through its YCloud system, receiving 2%-3.5% of the total Gross Merchandise Volume generated on the platform[67] Internal Controls and Compliance - The company conducted an evaluation of its internal control over financial reporting as of June 30, 2023, and concluded that it did not maintain effective internal control due to material weaknesses identified[132] - Management identified material weaknesses related to internal audit functions and a lack of segregation of duties within accounting functions[133] - Management plans to implement procedures to address the significant deficiencies identified in internal controls with proper funding[134] - The company believes that its financial statements and other information presented are materially correct despite the identified weaknesses[132] - There were no changes in internal control over financial reporting during the most recently completed fiscal quarter that materially affected the controls[136] Stock and Share Information - The total issued and outstanding shares of the company's common stock decreased from 195,057,503 to 1,054,364 shares following a 1 for 185 reverse stock split approved on June 9, 2023[141] - The reverse stock split aims to help the company regain compliance with Nasdaq's minimum bid price requirement of $1.00 per share[142] - The weighted-average shares outstanding for the three months ended June 30, 2023 were 149,770,976, down from 155,826,842 in the same period of 2022[10] - The weighted-average common shares outstanding decreased from 231,052,498 in June 30, 2022 to 172,526,771 in June 30, 2023[61] Other Financial Metrics - The company experienced a foreign currency translation adjustment loss of $(663,272) for the three months ended June 30, 2023[11] - The company has no impairment expenses for property and equipment recorded during the six months ended June 30, 2023[44] - The company applies ASC 606 for revenue recognition, requiring judgment in identifying contracts and performance obligations[35] - The functional currency of the company is USD, while its subsidiaries operate in RMB[38] - The exchange rate for RMB to USD was 7.25 as of June 30, 2023, compared to 6.90 as of December 31, 2022[39] - General and administrative expenses for the six-month period ended June 30, 2023, were $1,501,985, a decrease from $2,619,894 in the same period of 2022[114]

Financial Performance - Total service revenue for the three months ended March 31, 2023, was $614,369, a decrease of 71.2% compared to $2,138,952 for the same period in 2022[12]. - Gross loss for the three months ended March 31, 2023, was $(296,137), compared to a gross profit of $1,466,314 for the same period in 2022[12]. - Net loss from continuing operations for the three months ended March 31, 2023, was $(984,842), compared to a net income of $592,316 for the same period in 2022[12]. - Comprehensive loss for the three months ended March 31, 2023, was $(2,198,826), compared to $(709,237) for the same period in 2022[12]. - As of March 31, 2023, the company reported a net loss of $2,225,147 compared to a net loss of $743,827 for the same period in 2022, indicating a significant increase in losses[56]. - Total revenue for the three-month period ended March 31, 2023, was $614,369, a decrease from $2,138,952 in the same period of 2022, primarily due to a decline in Gross Merchandise Volume (GMV)[104]. - The net loss for the period ended March 31, 2023, was $984,842, compared to a net income of $592,316 for the same period in 2022, reflecting a significant increase in losses due to the business plan adjustments[107]. Assets and Equity - Total assets increased from $43,200,496 as of December 31, 2022, to $46,229,241 as of March 31, 2023, representing a growth of 6.9%[9]. - Total stockholders' equity decreased from $41,719,510 as of December 31, 2022, to $39,516,758 as of March 31, 2023, a decline of 5.3%[11]. - As of March 31, 2023, total shareholder equity was $39,516,758, down from $41,719,510 as of December 31, 2022, reflecting a net loss of $958,520 for the period[6]. - Cash and cash equivalents decreased slightly from $20,025,480 as of December 31, 2022, to $20,125,507 as of March 31, 2023[13]. - Cash on hand as of March 31, 2023, was $20,125,507, showing a slight increase from $20,025,480 at the end of 2022[66]. Operating Expenses - Operating expenses for the three months ended March 31, 2023, were $690,793, down from $792,456 for the same period in 2022, a reduction of 12.8%[12]. - General and administrative expenses decreased to $690,793 for the three months ended March 31, 2023, from $792,456 in the same period of 2022, mainly due to reduced advertising costs[106]. Discontinued Operations - Loss from discontinued operations for the three months ended March 31, 2023, was $(1,240,305), compared to $(1,336,143) for the same period in 2022[12]. - The company reported a net loss from discontinued operations of $1,244,231, which included a net loss of $26,322 for the period[6]. - The company incurred a loss from discontinued operations of $1,240,305 for the period ended March 31, 2023, compared to a loss of $1,336,142 for the same period in 2022[80]. Market and Business Strategy - The YCloud system targets a potential market of 330 million individual micro-business owners by the end of 2023[19]. - YCloud serves various industries, including tourism, hospitality, and retail, and has established trial operations in Hong Kong[19]. - The company aims to provide technical services and solutions through its YCloud platform, which includes big data analytics and AI technology[17]. - YCloud offers multiple integrated payment methods, enhancing transaction capabilities for micro-businesses[21]. - The company aims to shift its SAAS, blockchain, and WT Pay services from the PRC to overseas markets in 2023[104]. Shareholder Information - The weighted average number of shares outstanding for basic and diluted earnings per share was 195,057,503 for the three months ended March 31, 2023[12]. - The weighted-average common shares outstanding decreased to 195,057,503 from 305,451,498 year-over-year, reflecting a reduction in share count[56]. - A reverse stock split of 1 for 185 was approved, reducing total issued shares from 195,057,503 to 1,054,364 to comply with Nasdaq listing requirements[96][97]. - The company executed a 1 for 185 Reverse Stock Split, reducing the total issued and outstanding shares from 195,057,503 to 1,054,364 shares[120]. - The Reverse Stock Split aims to help the company regain compliance with Nasdaq's Minimum Bid Requirement of $1.00 per share[121]. - No fractional shares will be issued; any resulting fractional shares will be rounded up to the nearest whole share[121]. Compliance and Accounting - The consolidated financial statements are prepared in accordance with GAAP, ensuring compliance with U.S. accounting standards[28]. - The company has not reported any gains or losses from foreign currency transactions from inception to March 31, 2023[36]. - The company has not recognized an income tax benefit for its operating losses in the U.S. and Singapore, as it does not expect to commence active operations in these regions[92][93]. Other Financial Metrics - Total GMV for the period was $18,606,599, down from $74,561,767 in the previous year, indicating a decline in transaction volume[64]. - The company's intangible assets, net, amounted to $21,525 as of March 31, 2023, down from $22,959 at the end of 2022, reflecting amortization of software development costs[67]. - Amortization expense for intangible assets for the three months ended March 31, 2023, was $1,434[67]. - The average exchange rate for RMB to USD was 6.84 for the period ended March 31, 2023, compared to 6.75 for the year ended December 31, 2022[37]. - The company has not recorded any impairment expenses for property, plant, and equipment during the three months ended March 31, 2023[41]. - As of March 31, 2023, the company's net property and equipment was $842,622, a decrease from $921,952 as of December 31, 2022, reflecting a depreciation expense of $79,330 for the period[69][70]. - The total accounts receivable as of March 31, 2023, was $6,748,798, slightly up from $6,723,661 as of December 31, 2022, with all service fee receivables fully settled from five main customers[72]. - The company reported prepayments totaling $13,137,035 as of March 31, 2023, primarily related to software development fees, including a significant $10 million prepayment for the WT Pay system development expected to be completed by September 2023[73]. - Loan receivables decreased to $978,133 as of March 31, 2023, down from $1,614,841 as of December 31, 2022, with no accrued interest due to a waiver for the borrower[76]. - Tax payables amounted to $86,838, a decrease from $130,717 as of December 31, 2022, reflecting a corporate income tax rate ranging from 9% to 25%[78]. - Other payables totaled $1,708,748 as of March 31, 2023, down from $2,325,188 as of December 31, 2022, primarily due to a decrease in Y-Cloud system upgrade payables[79]. - The company reported accumulated depreciation of $128,454 for property and equipment as of March 31, 2023, compared to $49,124 as of December 31, 2022[69]. - The company's amortized expenses, net, were $780,326 as of March 31, 2023, down from $828,983 as of December 31, 2022, with accumulated depreciation increasing from $166,792 to $215,449[71]. - The director fee payable increased to $812,000 as of March 31, 2023, from $770,000 as of December 31, 2022, reflecting accrued fees from the appointment date[78]. - The company completed a public offering of 10,000,000 shares at $4.00 per share, raising gross proceeds of $40,000,000 and net proceeds of $37,057,176 after costs[90]. - Cash flow used in operating activities for the period ended March 31, 2023, was $552,687, a decrease of approximately $8.1 million compared to cash flow provided by operating activities in the prior period[109].

Market Potential and Growth - The potential market for individual micro-business owners is estimated to reach 330 million users by 2023[12]. - The number of micro-businesses in China increased from 60 million in 2019 to 260 million in 2022, with an estimated rise to 330 million in 2023[45]. - The transaction size of the micro-business market in China is expected to reach approximately 13 trillion yuan in 2023, up from 328.77 billion yuan in 2016[47]. - The market for micro-businesses is becoming increasingly competitive, with over 4.5 million mini programs and more than 8,000 third-party service providers as of November 2019[47]. YCloud System and Services - As of December 31, 2022, the company has developed a micro-business cloud intelligence system called "YCloud" to provide technical and auto-billing management services[10]. - The YCloud system has expanded its application to various industries, including tourism, hospitality, livestreaming, medical beauty, and traditional retail[13]. - YCloud derives revenue from service fees of 2%-3.5% of the total Gross Merchandise Volume (GMV) generated on the platform[59]. - YCloud's technology includes AI fission for user behavior analysis, enabling tailored recommendations across multiple platforms[53]. - YCloud provides multiple payment methods, including Alipay and WeChat, facilitating transactions for micro-business owners[64]. - The YCloud system integrates supply, sales, finance, and service, providing a complete supply chain system for micro-business owners[54]. - The total order amount on the YCloud system is directly entered into the platform for fund collection, enhancing operational efficiency for micro-business owners[49]. - YCloud system offers multiple integrated payment methods, allowing micro-business owners to reduce labor costs and error rates, significantly improving data analysis[49]. Corporate Strategy and Operations - The company serves corporate users in multiple industries, including notable clients such as Yuetao Group and Coke GO[12]. - The company is focused on providing technical solutions via its social e-commerce platform and chatGPT technical services[10]. - The company aims to expand into new industries, including beauty and tourism, with potential cooperation opportunities involving 30 million tour guides and 2 million hotels[68]. - The company has established trial operations in Hong Kong and aims to utilize the YCloud system for global strategic cooperation with social media platforms[12]. - The company intends to retain all available funds for business operation and expansion, with no anticipated dividends in the foreseeable future[41]. - Seasonal fluctuations in revenue are expected, with increases during holiday seasons due to higher spending in the micro-business industry[81]. - The company has formed strategic partnerships to enhance customer experiences and expand its user base[69]. Regulatory and Compliance Issues - The company is subject to regulatory risks due to potential changes in the economic, political, and legal environment in Hong Kong and mainland China[23]. - The company has a commitment to data security and compliance with PRC laws, including the PRC Data Security Law and the Personal Information Protection Law[25][27]. - The U.S. SEC has implemented rules under the Holding Foreign Company Accountable Act, which could lead to the delisting of foreign companies if their auditors cannot be inspected for two consecutive years[38]. - The PCAOB has secured complete access to inspect and investigate registered public accounting firms in mainland China and Hong Kong, which is crucial for compliance with U.S. regulations[38]. - The company is not currently required to obtain regulatory approvals from PRC authorities for its operations in Hong Kong, but future changes in regulations could impact its business[33]. - The CSRC's Trial Administrative Measures for Overseas Securities Offering and Listing became effective on March 31, 2023, requiring domestic enterprises to file with the CSRC before overseas offerings[84]. - Existing issuers listed overseas before March 31, 2023, are not required to complete immediate filing procedures but must file for subsequent offerings[85]. - The revised Provisions on Strengthening Confidentiality and Archives Administration also took effect on March 31, 2023, expanding to cover indirect overseas offerings[86]. - The M&A Rules require overseas companies controlled by PRC entities to obtain MOFCOM approval for acquisitions of PRC domestic companies[87]. - The Foreign Investment Law, effective January 1, 2020, establishes a pre-establishment national treatment and negative list for foreign investment[93]. - The PRC Company Law governs the establishment and operation of corporate entities, including foreign-invested enterprises[94]. Financial and Taxation Matters - The company is eligible for tax refunds under certain favorable government policies starting from 2021[111]. - A 10% withholding tax applies to dividends declared to non-PRC resident investors, which can be reduced to 5% under specific conditions for Hong Kong resident enterprises[112][113]. - The company has not commenced the application process for a Hong Kong tax resident certificate, which may affect its ability to enjoy the reduced withholding tax rate[114]. - The current VAT rate applicable to the company is 6%, while the income tax rate remains at 25%[111]. - The company and its offshore subsidiary are likely to be treated as a non-resident enterprise for PRC tax purposes, with a standard enterprise income tax rate of 25% applicable to resident enterprises[109]. - Wholly foreign-owned enterprises in China may only pay dividends from accumulated after-tax profits, with a mandatory allocation of 10% to statutory reserves[105]. - Trading gains from the sale of shares in Hong Kong are subject to profits tax rates of 8.25% on assessable profits up to HKD 2,000,000 and 16.5% on profits exceeding that amount[121]. - The Hong Kong stamp duty is currently charged at an ad valorem rate of 0.1% on the higher of the consideration or market value of shares, totaling 0.2% for typical transactions[122]. - The company is in compliance with the regulations regarding Hong Kong taxation[123]. Research and Development - In fiscal year 2021, the company spent approximately RMB 8,807,995 (approximately $1,367,701) on research and development, with R&D personnel accounting for 61% of total employees[74]. Intellectual Property - The company holds 7 registered trademarks and 5 copyrights in China, ensuring legal protection for its intellectual property[97][99]. Employee Welfare and Compliance - The company is in compliance with PRC's social insurance and housing fund regulations, ensuring employee welfare schemes are in place[119]. - The company has received a business registration certificate in Hong Kong and is in compliance with local business registration regulations[119].

Financial Performance - Total service revenue for the nine months ended September 30, 2022, was $9.20 million, a decrease of 18.4% compared to $11.26 million for the same period in 2021 [16]. - Net loss for the nine months ended September 30, 2022, was $8.54 million, compared to a net income of $3.90 million for the same period in 2021 [18]. - The company reported a gross loss of $1.44 million for the three months ended September 30, 2022, compared to a gross profit of $2.49 million for the same period in 2021 [16]. - Earnings per share for the three months ended September 30, 2022, was $(0.05), compared to $0.01 for the same period in 2021 [16]. - For the nine months ended September 30, 2022, the company reported a net loss of $8,538,874 compared to a profit of $3,904,385 for the same period in 2021 [77]. - The company reported a net loss of $8,538,874 for the nine-month period ended September 30, 2022, compared to a net income of $3,904,385 in 2021, reflecting an increase in net loss of approximately $12.4 million [131]. - The company incurred a net loss of $8,657,092 for the three-month period ended September 30, 2022, compared to a net income of $1,410,271 in 2021, reflecting an increase in net loss of approximately $10.1 million [137]. Assets and Liabilities - Total assets increased to $46.09 million as of September 30, 2022, up from $19.47 million at December 31, 2021, representing a 136% increase [14]. - Total liabilities decreased to $4.04 million as of September 30, 2022, from $4.94 million at December 31, 2021, a reduction of 18.1% [14]. - Cash and cash equivalents increased to $20.26 million at the end of September 2022, compared to $1.40 million at the end of September 2021, marking a significant increase of 1,353% [19]. - As of September 30, 2022, accounts receivable from non-related customers amounted to $4,473,310, a decrease of 20.4% from $5,627,463 as of December 31, 2021 [93]. - Tax payable as of September 30, 2022, was $178,855, a significant decrease of 74.9% from $711,841 as of December 31, 2021 [110]. Revenue and Expenses - Operating expenses for the nine months ended September 30, 2022, were $10.42 million, up from $4.70 million in the same period of 2021, reflecting a 121% increase [16]. - General and administrative expenses surged to $10,419,873 in 2022 from $4,695,727 in 2021, an increase of approximately 121.5%, mainly due to costs associated with the Nasdaq up-listing [129]. - The company generated revenues of $8,508,642 from four third-party customers and $689,039 from related party Changtongfu for the nine months ended September 30, 2022 [84]. - Total revenue for the nine-month period ended September 30, 2022, was $9,197,681, a decrease of 18.4% from $11,262,491 in 2021, primarily due to a decline in Gross Merchandise Volume (GMV) caused by COVID-19 lockdowns in major cities in China [127]. Cash Flow - Cash used in operating activities increased to $18,447,262 for the nine-month period ended September 30, 2022, compared to $2,451,061 in the prior period, an increase of approximately $16.0 million [139]. - Cash provided by financing activities was $39,050,371 for the nine-month period ended September 30, 2022, compared to cash used of $357,770 in the prior period, mainly due to share issuance [142]. - Cash on hand as of September 30, 2022, was $20,261,881, a significant increase from $1,395,025 in the prior period, primarily due to the issuance of 10,000,000 shares on NASDAQ with net proceeds of $37,057,176 [138]. Market and Growth Opportunities - The YCloud system aims to serve a potential market of 330 million individual micro-business owners by 2023, indicating significant growth opportunities in the micro-business sector [31]. - The company has entered into service agreements with three new customers in Q3 2022, expanding its market reach in the media and tourism industries [33][34][35]. - The company utilizes big data analytics and AI technology to enhance its service offerings, which is expected to drive future growth in various industries including tourism and retail [32][38]. - The company has established trial operations in Hong Kong, indicating its intention to expand its geographical footprint beyond mainland China [31]. - The company plans to utilize the YCloud system to establish global strategic cooperation with various social media platforms [122]. System Development and Technology - The YCloud system integrates multiple payment methods, allowing micro-business owners to reduce labor costs and error rates, thereby improving data analysis capabilities [37]. - The YCloud system is designed to provide tailored recommendations based on user behavior, enhancing customer engagement and satisfaction [40]. - The company expects to complete the YCloud system upgrade and data storage improvement, with a prepayment of approximately $2.6 million, by 2023 [95]. - The company recorded related party transactions totaling $1,344,544 for system and software service fees for the nine months ended September 30, 2022, compared to $485,190 in the same period of 2021 [105].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended: June 30, 2022 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____________ to _____________ WETRADE GROUP INC (Exact name of small business issuer as specified in its charter) Wyoming (State or other jurisdiction of incorporation or o ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended: March 31, 2022 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____________ to _____________ WETRADE GROUP INC (Exact name of small business issuer as specified in its charter) Wyoming (State or other jurisdiction of incorporation or ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended: December 31, 2021 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____________ to _____________ WETRADE GROUP INC (Exact name of registrant as specified in its charter) Wyoming (State or other jurisdiction of incorporation or organization) (I ...