Core Insights - Oriental Culture (OCG) experienced a 4.73% increase in stock price, reaching $2.88 per share, with a total market capitalization of $59.71 million as of August 23 [1] - The company's total revenue for the year ending December 31, 2024, is projected to be $622.7 thousand, reflecting a year-over-year decrease of 60.59% [1] - The net profit attributable to shareholders is forecasted to be -$2.4335 million, showing a year-over-year increase of 32.37% [1] Company Overview - Oriental Culture Holdings Limited provides e-commerce services for collectibles and artworks, catering to collectors, artists, art dealers, and owners [1] - The company operates a trading platform for various collectibles and artworks, offering transaction convenience for individual and institutional clients [1] - It also provides integrated marketing, warehousing, and technical maintenance services for Chinese clients, and is developing NFTs related to culture and art, along with a metaverse project [1]

Core Insights - Oriental Culture (OCG) experienced a stock price increase of 4.46%, reaching $4.22 per share with a total market capitalization of $87.4972 million as of August 14 [1] - For the fiscal year ending December 31, 2024, Oriental Culture reported total revenue of $622.7 thousand, a year-over-year decrease of 60.59%, while the net profit attributable to shareholders was -$2.4335 million, reflecting a year-over-year increase of 32.37% [1] Company Overview - Oriental Culture Holdings Limited operates an e-commerce platform for online collectibles and artworks, catering to collectors, artists, art dealers, and owners by providing a marketplace for art investment [1] - The company offers trading convenience for various collectibles and artworks through its online platform, serving both individual and institutional clients, and provides integrated marketing, warehousing, and technical maintenance services for Chinese customers [1] - Oriental Culture is developing NFTs related to culture and art collections, as well as a metaverse project [1]

Core Viewpoint - Oriental Culture (OCG) experienced a stock price increase of 2.28%, reaching $4.5 per share, with a total market capitalization of $93.30 million as of August 9 [1] Financial Performance - As of December 31, 2024, Oriental Culture reported total revenue of $622.7 thousand, a year-over-year decrease of 60.59% [1] - The company recorded a net profit attributable to shareholders of -$2.43 million, which represents a year-over-year increase of 32.37% [1] Company Overview - Oriental Culture Holdings Limited is engaged in providing e-commerce services for collectibles and artworks, facilitating a trading market for collectors, artists, dealers, and owners [1] - The company operates through its subsidiary in Hong Kong, offering various trading conveniences for individual and institutional clients on its online platform [1] - It provides integrated marketing, warehousing, and technical maintenance services for Chinese clients, both online and offline [1] - The company is developing NFTs related to culture and art collections, as well as a metaverse project [1]

Group 1 - The stock price of Oriental Culture (OCG) increased by 7.54% on August 7, reaching $4.646 per share, with a total market capitalization of $96.32 million [1] - As of December 31, 2024, Oriental Culture reported total revenue of $622.7 thousand, a year-on-year decrease of 60.59%, and a net profit attributable to the parent company of -$2.4335 million, an increase of 32.37% year-on-year [1] - Oriental Culture Holdings Limited provides e-commerce services for collectibles and artworks, facilitating transactions for collectors, artists, dealers, and owners through its online platform [1] Group 2 - The company operates through its subsidiary in Hong Kong, offering various trading conveniences for individual and institutional clients, along with integrated marketing, warehousing, and technical maintenance services for Chinese customers [1] - Oriental Culture is developing NFTs related to cultural and art collections, as well as a metaverse project [1]

Group 1 - The stock price of Oriental Culture (OCG) increased by 3.24% on July 31, reaching $5.1 per share, with a total market capitalization of $10.6 million [1] - As of December 31, 2024, Oriental Culture reported total revenue of $622.7 thousand, a year-on-year decrease of 60.59%, and a net profit attributable to shareholders of -$2.4335 million, an increase of 32.37% year-on-year [1] - Oriental Culture Holdings Limited provides e-commerce services for online collectibles and artworks, facilitating transactions for collectors, artists, dealers, and owners through its platform [1] Group 2 - The company operates through its subsidiary in Hong Kong, offering various collectibles, artworks, and certain goods for both individual and institutional clients [1] - Oriental Culture is developing NFTs related to cultural and art collections, as well as a metaverse project [1]

Group 1 - The stock of Oriental Culture (OCG) opened up by 5.85% on July 31, reaching $5.229 per share, with a total market capitalization of $108 million [1] - As of December 31, 2024, Oriental Culture reported total revenue of $622,700, a year-on-year decrease of 60.59%, and a net profit attributable to the parent company of -$2.4335 million, an increase of 32.37% year-on-year [1] - Oriental Culture Holdings Limited provides e-commerce services for online collectibles and artworks, facilitating transactions for collectors, artists, dealers, and owners through its platform [1] Group 2 - The company operates through its subsidiary in Hong Kong, offering various collectibles, artworks, and certain goods for both individual and institutional clients [1] - Oriental Culture is developing NFTs related to cultural and art collections, as well as a metaverse project [1]

PART I [Key Information](index=6&type=section&id=Item%203.%20Key%20Information) This section outlines the company's VIE structure in China, detailing legal and operational risks, regulatory impacts, and selected financial data [Selected Condensed Consolidated Financial Schedule](index=10&type=section&id=Selected%20Condensed%20Consolidated%20Financial%20Schedule) Condensed consolidated financial data for the holding company, subsidiaries, WFOE, and VIE for FY2024 are presented Condensed Consolidated Financial Highlights for FY 2024 | Financial Metric | Holding Company | HK Subsidiaries | WFOE (PRC) | VIE (PRC) | Consolidated Total | | :--- | :--- | :--- | :--- | :--- | :--- | | **Total Assets** | $60,778,716 | $1,010,267 | $40,384,424 | $39,958,127 | $53,035,666 | | **Total Liabilities** | $10,869,404 | $2,202,299 | $1,570,397 | $2,125,559 | $3,126,354 | | **Total Shareholders' Equity** | $49,909,312 | $(1,192,032) | $38,814,027 | $37,832,568 | $49,909,312 | | **Operating Revenues** | $0 | $0 | $0 | $622,690 | $622,690 | | **Net (Loss) Income** | $(2,433,536) | $763,029 | $(610,708) | $(623,395) | $(2,433,536) | Condensed Consolidated Cash Flow for FY 2024 | Cash Flow Activity | Holding Company | HK Subsidiaries | WFOE (PRC) | VIE (PRC) | Consolidated Total | | :--- | :--- | :--- | :--- | :--- | :--- | | **Operating Activities** | $(1,761,029) | $(25,502) | $(3,451,046) | $1,231,202 | $(4,006,375) | | **Investing Activities** | $(5,756,000) | $0 | $3,294,358 | $(52,363) | $(11,556,351) | | **Financing Activities** | $6,998,517 | $0 | $0 | $0 | $6,998,517 | [Risk Factors](index=14&type=section&id=3.D.%20Risk%20Factors) Significant business, structural, and regulatory risks include VIE challenges, frozen bank accounts, and uncertain PRC laws - A major operational risk stems from the freezing of certain bank accounts of the VIE's subsidiaries by the Nan County Public Safety Bureau in China, materially impacting business operations, customer confidence, and financial results, with approximately **$17.3 million** in cash and short-term investments remaining frozen as of December 31, 2024[60](index=60&type=chunk)[64](index=64&type=chunk)[65](index=65&type=chunk) - The company's reliance on a VIE structure is a significant risk, as non-compliance with PRC foreign investment regulations could lead to severe penalties, including relinquishing interests in China operations and rendering securities worthless[53](index=53&type=chunk)[111](index=111&type=chunk)[126](index=126&type=chunk) - The rapidly changing and uncertain interpretation of Chinese laws, particularly regarding overseas listings (New Overseas Listing Rules), cybersecurity, and data transfers, poses a material risk to the company's ability to operate, raise capital, and remain listed on a U.S. exchange[26](index=26&type=chunk)[131](index=131&type=chunk)[132](index=132&type=chunk) - The company's ordinary shares may be thinly traded, leading to low liquidity and price volatility, and its status as a foreign private issuer offers potentially less protection to investors due to exemptions from certain SEC reporting and corporate governance requirements[208](index=208&type=chunk)[222](index=222&type=chunk)[224](index=224&type=chunk) - The company is a Cayman Islands holding company, not a Chinese operating company, conducting business in China through contractual arrangements with a Variable Interest Entity (VIE), a structure with unique risks not fully tested in Chinese courts[25](index=25&type=chunk) - Recent PRC regulations, including the New Overseas Listing Rules effective March 31, 2023, require filings with the CSRC for overseas offerings, which the company believes are subject to post-offering filing rather than prior approval[26](index=26&type=chunk)[132](index=132&type=chunk) - The company's auditor, Wei, Wei & Co., LLP, is a U.S.-based firm subject to PCAOB inspection, therefore the Holding Foreign Companies Accountable Act (HFCA Act) does not currently affect the company[28](index=28&type=chunk)[151](index=151&type=chunk) - As of the report date, no dividends or distributions have been made between the holding company, its subsidiaries, and the consolidated VIEs, or to investors, with the company intending to retain future earnings for business expansion[34](index=34&type=chunk)[35](index=35&type=chunk) [Information On The Company](index=50&type=section&id=Item%204.%20Information%20On%20The%20Company) This section details the company's history, e-commerce business model for collectibles, and its corporate structure, including the VIE arrangement [History and Development of the Company](index=50&type=section&id=A.%20History%20and%20Development%20of%20the%20Company) Key milestones include the 2020 IPO, a 2023 reverse stock split for Nasdaq compliance, and a 2024 private placement and subsidiary sale - The company completed its IPO on December 1, 2020, raising net proceeds of approximately **$17.3 million**[243](index=243&type=chunk) - In October 2023, the company executed a 1-for-5 reverse stock split (Share Consolidation) to regain compliance with Nasdaq's minimum bid price requirement[245](index=245&type=chunk) - On May 31, 2024, the company entered into a Securities Purchase Agreement for a private placement to sell **14,000,000** ordinary shares at **$0.50** per share, for aggregate proceeds of **$7.0 million**, along with warrants to purchase an additional **14,000,000** shares[246](index=246&type=chunk) - The company sold its subsidiary HKDAEx to an unrelated party for **$1** in December 2024, after HKDAEx ceased operations on June 30, 2024[240](index=240&type=chunk) [Business Overview](index=53&type=section&id=B.%20Business%20Overview) Operates an online e-commerce platform for collectibles, offering trading and support services in a competitive and complex regulatory environment - The company's primary business is facilitating the e-commerce trading of collectibles and artwork on its online platform, owned by its Hong Kong subsidiary[253](index=253&type=chunk) - Services provided to customers include account opening, investor education, real-time market information, customer support, and warehousing[256](index=256&type=chunk)[258](index=258&type=chunk) - The art e-commerce market is highly competitive, with over **10** active platforms operating in China as of December 31, 2024[296](index=296&type=chunk) - The company's operations are subject to extensive regulations in both the PRC and Hong Kong, including PRC rules on trading platforms (Decision No.38, Opinion No.37) and Hong Kong's Personal Data (Privacy) Ordinance (PDPO)[159](index=159&type=chunk)[363](index=363&type=chunk) [Organizational Structure](index=74&type=section&id=C.%20Organizational%20structure) The company uses a VIE structure, with its WFOE controlling the PRC VIE via contractual agreements to consolidate financial results - The company uses a VIE structure because it expects its PRC entity, Jiangsu Yanggu, may engage in business activities (like marketing surveys) that are on the PRC's 'Negative List' for foreign investment[380](index=380&type=chunk)[710](index=710&type=chunk) - The VIE agreements grant the WFOE the right to receive **100%** of the VIE's net income as service fees and obligate it to absorb **100%** of the VIE's losses[382](index=382&type=chunk)[711](index=711&type=chunk) - The VIE's shareholders have pledged all their equity to the WFOE and granted the WFOE an exclusive option to purchase their equity at the lowest price permitted by PRC law[383](index=383&type=chunk)[385](index=385&type=chunk)[713](index=713&type=chunk)[714](index=714&type=chunk) [Operating and Financial Review and Prospects](index=77&type=section&id=Item%205.%20Operating%20And%20Financial%20Review%20And%20Prospects) Fiscal year 2024 saw a **60.6% revenue decline** and a **$2.4 million net loss**, primarily due to an investigation and frozen accounts, though liquidity is supported by a **$7.0 million private placement** [Operating Results](index=77&type=section&id=A.%20Operating%20Results) Operating revenues declined **60.6%** to **$0.6 million** in 2024 due to an investigation and frozen accounts, but net loss narrowed to **$2.4 million** from reduced expenses - The investigation and charges against former major shareholders, along with the freezing of VIE subsidiary bank accounts, have materially and negatively impacted business operations and revenue[396](index=396&type=chunk)[400](index=400&type=chunk)[402](index=402&type=chunk) Key Operational Metrics (2022-2024) | Metric | 2024 | 2023 | 2022 | | :--- | :--- | :--- | :--- | | **Active Traders** | ~19,000 | ~35,000 | ~142,000 | | **Number of Transactions** | ~7 million | ~19 million | ~96 million | | **Transaction Value** | ~$0.1 billion | ~$0.5 billion | ~$8.6 billion | Comparison of Operations for Years Ended Dec 31 | Metric | 2024 | 2023 | Change (%) | | :--- | :--- | :--- | :--- | | **Total Operating Revenues** | $622,690 | $1,580,058 | (60.6)% | | **Gross Profit** | $440,509 | $1,174,430 | (62.5)% | | **Operating Expenses** | $(3,637,707) | $(5,509,838) | (34.0)% | | **Net Loss** | $(2,433,536) | $(3,598,480) | (32.4)% | | **Basic & Diluted EPS** | $(0.18) | $(0.84) | (78.2)% | [Liquidity and Capital Resources](index=87&type=section&id=B.%20Liquidity%20and%20Capital%20Resources) The company held **$39.6 million** in cash and investments (including **$17.3 million** restricted) as of December 2024, with a **$7.0 million** private placement supporting liquidity despite negative operating cash flow - The company secured **$7.0 million** in a private placement on May 31, 2024, selling **14,000,000** ordinary shares at **$0.50** per share[453](index=453&type=chunk) Summary of Cash Flows (Years Ended Dec 31) | Cash Flow Activity | 2024 | 2023 | 2022 | | :--- | :--- | :--- | :--- | | **Net Cash from Operating Activities** | $(4,006,375) | $3,624,590 | $(1,211,385) | | **Net Cash from Investing Activities** | $(11,556,351) | $(511,248) | $608,471 | | **Net Cash from Financing Activities** | $6,998,517 | $600,000 | $1,000,000 | - As of December 31, 2024, the company held approximately **$32.6 million** in cash and cash equivalents, though PRC regulations restrict the ability of PRC subsidiaries to transfer funds out of China[455](index=455&type=chunk)[456](index=456&type=chunk) [Directors, Senior Management and Employees](index=92&type=section&id=Item%206.%20Directors,%20Senior%20Management%20and%20Employees) This section details the company's 7-member board, executive compensation, equity plan, and a decrease in full-time employees to **33** in 2024 - The board of directors consists of **7** members, with Kit Ming (Michael) Lo serving as Chairman and Yi Shao as CEO[485](index=485&type=chunk) - For the fiscal year ended December 31, 2024, the company paid approximately **$194,744** in cash to its executive officers and **$127,097** to its non-executive directors[499](index=499&type=chunk) - The company has a 2021 Omnibus Equity Plan authorizing up to **800,000** shares, with **300,000** shares granted in February 2024 and an additional **500,000** shares granted to officers and employees in April 2025[508](index=508&type=chunk)[509](index=509&type=chunk) - The total number of full-time employees decreased from **52** as of December 31, 2023, to **33** as of December 31, 2024[529](index=529&type=chunk) [Major Shareholders and Related Party Transactions](index=101&type=section&id=Item%207.%20Major%20Shareholders%20and%20Related%20Party%20Transactions) This section outlines major shareholders and details related-party transactions, primarily with entities affiliated with Mr. Huajun Gao and Mr. Aimin Kong - The company's primary related party transactions involve its VIE arrangements and other operational agreements with entities controlled by or affiliated with shareholders Mr. Huajun Gao and Mr. Aimin Kong, such as Nanjing Culture and Kashi Jinwang[541](index=541&type=chunk)[545](index=545&type=chunk)[547](index=547&type=chunk) Related Party Transactions Summary (FY 2024 vs FY 2023) | Transaction Type | 2024 | 2023 | | :--- | :--- | :--- | | **Net Revenues - Related Parties** | $54,633 | $144,609 | | **Cost of Revenues - Related Party** | $21,075 | $64,051 | | **General & Admin Expenses - Related Parties** | $104,391 | $234,289 | [Financial Information](index=103&type=section&id=Item%208.%20Financial%20Information) The company's consolidated financial statements are included, with no material legal proceedings or plans for near-term dividend payments - The company is not currently involved in any material legal or administrative proceedings[551](index=551&type=chunk) - The company has no plan to declare or pay dividends in the near future and intends to retain earnings for business operations and expansion[552](index=552&type=chunk) [Additional Information](index=104&type=section&id=Item%2010.%20Additional%20Information) Details the company's Cayman Islands corporate governance, share capital, shareholder rights, and material tax consequences for investors across various jurisdictions - The company is a Cayman Islands exempted company, and its corporate affairs are governed by its memorandum and articles of association and the Companies Act of the Cayman Islands[562](index=562&type=chunk) - As of May 9, 2025, the authorized share capital is **$50,000** divided into **180,000,000** ordinary shares (**$0.00025** par value) and **100,000,000** preferred shares (**$0.00005** par value), with **20,733,927** ordinary shares outstanding and no preferred shares issued[563](index=563&type=chunk) - The company does not believe it was a Passive Foreign Investment Company (PFIC) for the taxable year ended December 31, 2024, but notes that PFIC status is a factual determination made annually and depends on the composition of its assets and income[229](index=229&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=114&type=section&id=Item%2011.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) The company faces liquidity, inflation, interest rate, and significant foreign currency risks, particularly due to RMB-denominated operations without hedging - The company's primary market risks are liquidity, inflation, interest rate, and foreign currency translation risk[635](index=635&type=chunk)[636](index=636&type=chunk)[637](index=637&type=chunk)[638](index=638&type=chunk) - Foreign currency risk is significant as operating transactions are mainly in RMB, which is not freely convertible, and the company does not currently use hedging instruments to manage this risk[638](index=638&type=chunk) PART II [Material Modifications to the Rights of Security Holders and Use of Proceeds](index=116&type=section&id=Item%2014.%20MATERIAL%20MODIFICATIONS%20TO%20THE%20RIGHTS%20OF%20SECURITY%20HOLDERS%20AND%20USE%20OF%20PROCEEDS) This section details the use of approximately **$4.4 million** from the **$17.3 million** IPO proceeds for IT upgrades, with no material change in intended use - The company's IPO in December 2020 raised net proceeds of approximately **$17.3 million**[645](index=645&type=chunk) - From the IPO date to December 31, 2024, approximately **$4.4 million** of the proceeds were used for upgrading IT infrastructure, software, and platform systems[646](index=646&type=chunk) [Controls and Procedures](index=116&type=section&id=Item%2015.%20CONTROLS%20AND%20PROCEDURES) Management concluded disclosure controls were ineffective as of December 31, 2024, due to a material weakness in accounting personnel expertise, with remediation plans underway - Management concluded that as of December 31, 2024, the company's disclosure controls and procedures and its internal control over financial reporting were not effective[647](index=647&type=chunk)[648](index=648&type=chunk) - A material weakness was identified related to the lack of in-house accounting personnel with appropriate knowledge of U.S. GAAP and SEC reporting requirements[651](index=651&type=chunk) - Remediation plans include using experienced external accountants, recruiting more qualified financial personnel, and implementing regular U.S. GAAP and SEC training[652](index=652&type=chunk) [Corporate Governance and Other Matters](index=118&type=section&id=Item%2016.%20Corporate%20Governance%20and%20Other%20Matters) This section covers corporate governance, including the audit committee financial expert, code of ethics, accountant fees, foreign private issuer status, and cybersecurity risk management - The board has determined that Mr. Nelson Wong is an audit committee financial expert[657](index=657&type=chunk) Principal Accountant Fees (Wei Wei & Co., LLP) | Fee Type | 2024 | 2023 | | :--- | :--- | :--- | | **Audit Fees** | $230,000 | $250,000 | | **Total Fees** | $230,000 | $250,000 | - As a foreign private issuer, the company follows its home country (Cayman Islands) practices in lieu of certain Nasdaq corporate governance rules, such as those related to shareholder approval for certain securities issuances[666](index=666&type=chunk) - The company has established a cybersecurity management policy and process, with oversight responsibility resting with the Board of Directors, and no material cybersecurity incidents have affected the company to date[670](index=670&type=chunk) PART III [Financial Statements](index=120&type=section&id=Item%2018.%20FINANCIAL%20STATEMENTS) This section presents the company's audited consolidated financial statements for 2022-2024, prepared under U.S. GAAP, with an unqualified auditor's opinion Consolidated Balance Sheet Highlights (As of Dec 31) | Metric | 2024 | 2023 | | :--- | :--- | :--- | | **Cash and cash equivalents** | $17,068,272 | $17,684,018 | | **Restricted cash and equivalents** | $6,475,274 | $14,740,676 | | **Total Assets** | $53,035,666 | $48,630,835 | | **Total Liabilities** | $3,126,354 | $3,081,186 | | **Total Shareholders' Equity** | $49,909,312 | $45,549,649 | Consolidated Statement of Operations Highlights (Years Ended Dec 31) | Metric | 2024 | 2023 | 2022 | | :--- | :--- | :--- | :--- | | **Total Operating Revenues** | $622,690 | $1,580,058 | $17,813,139 | | **Gross Profit** | $440,509 | $1,174,430 | $16,816,680 | | **(Loss) Income from Operations** | $(3,197,198) | $(4,335,408) | $2,589,351 | | **Net (Loss) Income** | $(2,433,536) | $(3,598,480) | $3,235,686 | - The notes to the financial statements detail the company's VIE structure, confirming that Jiangsu Yanggu and its subsidiaries are consolidated as VIEs because the WFOE has effective control and absorbs all risks and rewards[804](index=804&type=chunk) - A significant contingency relates to the frozen bank accounts of the VIE's subsidiaries, totaling approximately **$14.7 million** as of December 31, 2024, which had not been released as of the report date despite related charges against former shareholders being withdrawn in May 2025[874](index=874&type=chunk)[877](index=877&type=chunk)[879](index=879&type=chunk)

Core Viewpoint - Outcrop Silver & Gold Corporation has announced an increase in its public offering of units to raise up to $6,500,000 due to strong investor demand [1] Group 1: Offering Details - The offering price is set at $0.22 per unit, with each unit consisting of one common share and one-half of a common share purchase warrant [2] - Each warrant allows the holder to purchase one common share at an exercise price of $0.30 for a period of 24 months following the closing of the offering [2] - The company has granted the agent an over-allotment option to increase the offering size by up to approximately 15% of the total number of units issued [3] Group 2: Use of Proceeds - The net proceeds from the offering will be allocated for exploration and development of the Santa Ana Project, working capital, and general corporate purposes [4] Group 3: Closing and Regulatory Approvals - The closing of the offering is expected around March 26, 2025, subject to necessary regulatory approvals, including from the TSX Venture Exchange [5] Group 4: Company Overview - Outcrop Silver is focused on advancing its flagship Santa Ana high-grade silver project in Colombia, leveraging a seasoned team with extensive regional experience [8] - The company is committed to responsible mining practices and community engagement, aiming for sustainable development [9] - Outcrop Silver aims to transform the Santa Ana project into a significant silver producer, positively impacting the local economy [10]

Core Viewpoint - Outcrop Silver & Gold Corporation has announced a public offering of units to raise up to $5,000,000 at a price of $0.22 per unit, with participation from notable investor Eric Sprott [1][2]. Offering Details - The offering consists of units, each comprising one common share and one-half of a common share purchase warrant, with the warrant allowing the purchase of one common share at an exercise price of $0.30 for 24 months [2]. - The Agent has an option to increase the offering size by up to 15% to cover over-allotments and for market stabilization purposes [3]. - The net proceeds from the offering will be allocated for exploration and development of the Santa Ana Project, working capital, and general corporate purposes [4]. Timeline and Regulatory Approvals - The closing of the offering is expected around March 26, 2025, subject to necessary regulatory approvals, including from the TSX Venture Exchange [5]. - A prospectus supplement will be filed in connection with the offering, providing detailed information about the company and the offering [6]. Company Overview - Outcrop Silver is focused on advancing its flagship Santa Ana high-grade silver project in Colombia, with a commitment to responsible mining practices and community engagement [8][10]. - The company aims to transform the Santa Ana project into a significant silver producer, contributing positively to the local economy [10].

Financial Performance - Total revenues for the six months ended June 30, 2024, were approximately $0.4 million, a decrease of 45.7% from approximately $0.8 million for the same period in 2023 [2][11] - Gross profit decreased by 51.6% to approximately $0.3 million, with a gross margin of 65.8% compared to 76.0% in the prior year [2][27] - The company reported a loss from operations of approximately $2.1 million, contrasting with an income from operations of approximately $2.4 million for the same period in 2023 [2][15] - Net loss was approximately $1.9 million, a slight improvement from a net loss of approximately $2.1 million in the previous year [2][31] - Basic and diluted loss per share was $0.28, down from $0.50 in the same period last year, representing a 45.3% decrease [2][32] Revenue Breakdown - Listing service fees increased by approximately 86.9% to $101,934, driven by an increase in listing values from $2.4 million to $15.8 million [17][19] - Transaction fee revenue decreased by 55.0% to approximately $224,049, attributed to a drop in total transaction value from approximately $300 million to $86.8 million [21][22] - Marketing service fees fell by 61.1% to approximately $65,763 due to decreased demand for marketing services [24][25] - Other revenues decreased by 28.8% to approximately $55,511, primarily due to reduced consulting and training services [25] Operational Changes - The trading platform operated by HKDAEx merged with the main online platform for collectibles and artwork to enhance resource integration and customer service [3] - The trading platform of HKDAEx ceased operations as of June 30, 2024 [3] Investigation Impact - The investigation into Nanjing Jinwang has materially impacted business operations, causing difficulties for customers in withdrawing security deposits [9][11] - As of June 30, 2024, approximately $17.3 million in cash and short-term investments were frozen due to the investigation [8][12] - The company is actively communicating with authorities to unfreeze bank accounts and restore customer confidence [10][12] Liquidity and Capital Resources - As of June 30, 2024, the company had approximately $18.8 million in cash, with working capital of approximately $23.7 million, excluding frozen funds [12][14] - The company believes it has sufficient funds to meet working capital requirements and debt obligations over the next 12 months [14]