WeTrade Group(WETG)

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WeTrade Group(WETG) - 2025 Q3 - Quarterly Report
2025-10-08 17:38
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: September 30, 2025 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____________ to ____________ NEXT TECHNOLOGY HOLDING INC. (Exact name of small business issuer as specified in its charter) (State or other jurisdiction of incorporati ...
WeTrade Group(WETG) - 2025 Q2 - Quarterly Results
2025-08-11 13:30
[Executive Summary](index=1&type=section&id=Executive%20Summary) Next Technology Holding Inc. achieved strong H1 2025 growth, driven by significant fair value gains from digital assets and strategic Bitcoin acquisitions [H1 2025 Performance Overview](index=1&type=section&id=H1%202025%20Performance%20Overview) Next Technology Holding Inc. announced strong financial results for H1 2025, driven by its diversified AI-enabled software development and strategic Bitcoin acquisition strategies. The CEO highlighted significant value creation from Bitcoin holdings due to favorable market conditions and disciplined accumulation - Next Technology Holding Inc. (NXTT) reported strong H1 2025 financial results, attributing success to its diversified business model encompassing **AI-enabled software development** and **strategic Bitcoin acquisition**[1](index=1&type=chunk)[3](index=3&type=chunk) - CEO Weihong Liu emphasized significant value creation for shareholders from Bitcoin holdings, driven by favorable market conditions and a disciplined accumulation strategy[3](index=3&type=chunk) [H1 2025 Financial Highlights](index=1&type=section&id=H1%202025%20Financial%20Highlights) The first half of 2025 saw significant financial growth, primarily driven by fair value gains from digital assets. Net income surged by 2,373% to $312.0 million, and other income increased by 2,437% to $395.7 million, largely due to Bitcoin's price appreciation. The combined balance of cash and digital assets also grew substantially | Metric | H1 2025 (US$ million) | H1 2024 (US$ million) | Change (%) | Primary Driver | | :----- | :------------ | :------------ | :--------- | :------------- | | Net Income | 312.0 | 12.6 | 2,373% | Fair value gain from digital assets | | Other Income | 395.7 | 15.6 | 2,437% | $449.0 million gain from Bitcoin price increase | | Cash & Digital Assets (as of June 30, 2025) | 632.7 | 79.0 (Dec 31, 2024) | 701% | | [H1 2025 Operational Highlights](index=1&type=section&id=H1%202025%20Operational%20Highlights) Operationally, NXTT significantly increased its Bitcoin holdings in H1 2025, acquiring 5,000 Bitcoin through a combination of common stock issuance, warrants, and cash. This accumulation, coupled with a 15.3% surge in Bitcoin's price, contributed to substantial value creation | Metric | As of June 30, 2025 | As of Dec 31, 2024 | Change | | :----- | :------------------ | :----------------- | :----- | | Total Bitcoin Holdings | 5,833 Bitcoin | 833 Bitcoin | +5,000 Bitcoin | - Company acquired **5,000 Bitcoin** in exchange for **135,171,078 shares** of common stock, warrants to purchase **294,117,647 shares**, and **$12,125,500** in cash[6](index=6&type=chunk) - Bitcoin's price surged **15.3%** in the first six months of 2025[6](index=6&type=chunk) [Company Overview and Strategy](index=2&type=section&id=Company%20Overview%20and%20Strategy) The company employs an 'AI plus digital assets' dual-engine strategy, offering AI-enabled software services and strategically holding Bitcoin for long-term value [About Next Technology Holding Inc.](index=2&type=section&id=About%20Next%20Technology%20Holding%20Inc.) Next Technology Holding Inc. is a Wyoming-incorporated technology company operating on a 'AI plus digital assets' dual-engine strategy. It provides AI-enabled SaaS software development services globally and strategically acquires and holds Bitcoin, viewing it as a long-term appreciating asset and inflation hedge - Next Technology Holding Inc. (NXTT) is a technology company founded on a **'AI plus digital assets' dual-engine strategy**[10](index=10&type=chunk) - The company delivers AI-enabled SaaS software design, development, and implementation services to industrial clients, primarily in the Asia-Pacific region[10](index=10&type=chunk) - NXTT believes Bitcoin's finite supply positions it for **long-term appreciation** and as a potential **hedge against inflation** with increasing global adoption[10](index=10&type=chunk) [Half Year 2025 Financial Review](index=2&type=section&id=Half%20year%202025%20Financial%20Review) H1 2025 financial review shows a slight increase in operating expenses, a dramatic surge in other income from digital asset gains, and a significant rise in net income [Operating Expenses Analysis](index=2&type=section&id=Operating%20Expenses) General and administrative expenses for the six months ended June 30, 2025, increased slightly to $705,820 from $675,144 in the comparable 2024 period, primarily due to higher litigation-related legal fees | Expense Category | H1 2025 (US$) | H1 2024 (US$) | Change (US$) | Primary Driver | | :--------------- | :------------ | :------------ | :----- | :------------- | | General and administrative expense | 705,820 | 675,144 | +30,676 | Higher litigation-related legal fees | [Other Income Analysis](index=2&type=section&id=Other%20income) Other income for H1 2025 dramatically increased to $395,661,456 from $15,595,778 in H1 2024, predominantly driven by fair value gains from digital assets | Metric | H1 2025 (US$) | H1 2024 (US$) | Change (US$) | Primary Driver | | :----- | :------------ | :------------ | :----- | :------------- | | Other Income | 395,661,456 | 15,595,778 | +380,065,678 | Fair value gain from digital assets | [Net Income Analysis](index=2&type=section&id=Net%20Income) Net income for the six months ended June 30, 2025, significantly rose to $312,014,952 compared to $12,619,286 in the prior year, primarily attributable to the substantial fair value gains from digital assets | Metric | H1 2025 (US$) | H1 2024 (US$) | Change (US$) | Primary Driver | | :----- | :------------ | :------------ | :----- | :------------- | | Net Income | 312,014,952 | 12,619,286 | +299,395,666 | Fair value gain from digital assets | [Condensed Consolidated Financial Statements](index=3&type=section&id=Condensed%20Consolidated%20Financial%20Statements) Condensed consolidated financial statements for H1 2025 show substantial increases in net income and total assets, primarily from digital asset fair value gains [Statements of Operations and Comprehensive Income (Loss)](index=3&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS%20AND%20COMPREHENSIVE%20INCOME(LOSS)) The condensed consolidated statements of operations show a significant increase in net income for both the three and six months ended June 30, 2025, primarily due to a substantial rise in other income, largely from digital asset fair value gains, despite an increase in general and administrative expenses | Metric | 3 Months Ended June 30, 2025 (US$) | 3 Months Ended June 30, 2024 (US$) | 6 Months Ended June 30, 2025 (US$) | 6 Months Ended June 30, 2024 (US$) | | :---------------------------------- | :--------------------------------- | :--------------------------------- | :--------------------------------- | :--------------------------------- | | General and administrative expense | (255,962) | (344,999) | (705,820) | (675,144) | | Other income (loss) | 150,350,300 | (8,423,621) | 395,661,456 | 15,595,778 | | Income (loss) before income taxes | 150,094,338 | (8,768,620) | 394,955,636 | 14,920,634 | | Income tax (expenses) benefits | (31,519,811) | 1,841,411 | (82,940,684) | (2,301,348) | | Net income (loss) from continuing operation | 118,574,527 | (6,927,209) | 312,014,952 | 12,619,286 | | Net comprehensive income (loss) per share, basic and diluted (from continuing operation) | 0.27 | (0.99) | 1.16 | 2.74 | | Weighted-average shares outstanding, basic and diluted | 436,265,135 | 6,976,410 | 267,870,110 | 4,609,505 | [Balance Sheets](index=4&type=section&id=CONDENSED%20CONSOLIDATED%20BALANCE%20SHEETS) As of June 30, 2025, the balance sheet shows a substantial increase in total assets, primarily driven by a significant rise in digital assets. Total liabilities also increased, mainly due to deferred tax liabilities, while stockholders' equity saw a considerable boost from common stock and retained earnings | Asset/Liability/Equity | As of June 30, 2025 (US$) | As of Dec 31, 2024 (US$) | Change (US$) | | :--------------------- | :------------------------- | :------------------------- | :----- | | Cash and cash equivalents | 668,387 | 668,387 | 0 | | Digital assets | 632,067,553 | 78,322,430 | +553,745,123 | | Total current assets | 633,275,940 | 92,916,317 | +540,359,623 | | Total assets | 633,275,940 | 92,916,317 | +540,359,623 | | Total current liabilities | 2,499,572 | 3,053,752 | -554,180 | | Deferred tax liabilities | 91,175,187 | 8,234,503 | +82,940,684 | | Total liabilities | 93,674,759 | 11,288,255 | +82,386,504 | | Common stock | 217,676,957 | 71,718,790 | +145,958,167 | | Retained earnings | 321,924,224 | 9,909,272 | +312,014,952 | | Total Stockholders' Equity | 539,601,181 | 81,628,062 | +457,973,119 | | Total Liabilities and Stockholders' Equity | 633,275,940 | 92,916,317 | +540,359,623 | [Additional Information](index=2&type=section&id=Additional%20Information) This section outlines forward-looking statements, detailing key risks and uncertainties, and provides contact information for investor and general inquiries [Forward-Looking Statements](index=2&type=section&id=Forward-Looking%20Statements) This section contains standard forward-looking statements, highlighting inherent risks and uncertainties that could cause actual results to differ materially. Key risk factors include fluctuations in Bitcoin market price, accounting treatment changes, regulatory shifts, liquidity issues, security breaches, and general economic conditions - Forward-looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from projections[11](index=11&type=chunk) - Factors contributing to differences include fluctuations in **Bitcoin market price**, changes in accounting treatment for Bitcoin holdings, regulatory changes, liquidity in Bitcoin markets, security breaches, and general economic conditions[11](index=11&type=chunk) [Investor and General Inquiries](index=2&type=section&id=Investor%20and%20General%20Inquiries) Provides contact details for investor inquiries and general inquiries - For investor inquiries, contact **ir@nxtttech.com**[12](index=12&type=chunk) - For general inquiries, contact **contact@nxtttech.com**[12](index=12&type=chunk)
WeTrade Group(WETG) - 2025 Q2 - Quarterly Report
2025-08-08 10:15
[Cautionary Note Regarding Forward-Looking Statements](index=3&type=section&id=Cautionary%20Note%20Regarding%20Forward-Looking%20Statements) This section provides a standard disclosure regarding forward-looking statements, warning of inherent risks and uncertainties that could cause actual results to differ from projections [Forward-Looking Statements Disclosure](index=3&type=section&id=Forward-Looking%20Statements%20Disclosure) This section provides a standard disclosure regarding forward-looking statements, warning of inherent risks and uncertainties that could cause actual results to differ from projections - Forward-looking statements are identified by specific terms such as 'may,' 'will,' 'expect,' and 'anticipate'[8](index=8&type=chunk) - Actual results may differ materially from forward-looking statements due to known and unknown risks and uncertainties[8](index=8&type=chunk)[9](index=9&type=chunk) - The company does not undertake to update forward-looking statements unless legally required[10](index=10&type=chunk) [PART I – Financial Information](index=4&type=section&id=PART%20I%20%E2%80%93%20Financial%20Information) This part presents the company's unaudited condensed consolidated financial statements and related disclosures [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements, including balance sheets, income statements, equity changes, and cash flows, with detailed notes [Unaudited Condensed Consolidated Balance Sheets](index=4&type=section&id=Unaudited%20Condensed%20Consolidated%20Balance%20Sheets) This section presents the company's unaudited condensed consolidated balance sheets as of June 30, 2025, and December 31, 2024 | ASSETS | Amount ($) | | :--- | :--- | | **Current assets:** | | | Cash and cash equivalents | $668,387 | | Digital assets | $632,067,553 | | Accounts receivable, net | $540,000 | | Prepayments | $- | | **Total current assets** | **$633,275,940** | | **Total assets** | **$633,275,940** | | **LIABILITIES AND STOCKHOLDERS' EQUITY** | | | **Current liabilities:** | | | Accounts payable | $- | | Amount due to related parties | $278,666 | | Income tax payable | $130,415 | | Other payable | $2,090,491 | | **Total current liabilities** | **$2,499,572** | | **Non-current liabilities:** | | | Deferred tax liabilities | $91,175,187 | | **Total non-current liabilities** | **$91,175,187** | | **Total liabilities** | **$93,674,759** | | **Stockholders' Equity:** | | | Common stock | $217,676,957 | | Retained earnings | $321,924,224 | | **Total Stockholders' Equity** | **$539,601,181** | | **Total Liabilities and Stockholders' Equity** | **$633,275,940** | Key Balance Sheet Changes (June 30, 2025 vs. December 31, 2024) | Item | June 30, 2025 ($) | December 31, 2024 ($) | Change ($) | | :--- | :--- | :--- | :--- | | Digital assets | $632,067,553 | $78,322,430 | +$553,745,123 | | Total assets | $633,275,940 | $92,916,317 | +$540,359,623 | | Total liabilities | $93,674,759 | $11,288,255 | +$82,386,504 | | Total Stockholders' Equity | $539,601,181 | $81,628,062 | +$457,973,119 | [Unaudited Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)](index=5&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Income%20(Loss)) This section presents the unaudited condensed consolidated statements of operations and comprehensive income (loss) for the periods ended June 30, 2025 and 2024 Consolidated Statements of Operations and Comprehensive Income (Loss) | Item | Three Months Ended June 30, 2025 ($) | Three Months Ended June 30, 2024 (Restated) ($) | Six Months Ended June 30, 2025 ($) | Six Months Ended June 30, 2024 (Restated) ($) | | :--- | :--- | :--- | :--- | :--- | | Revenue | $— | $— | $— | $— | | Gross Profit | $— | $— | $— | $— | | Operating expenses | $(255,962) | $(344,999) | $(705,820) | $(675,144) | | Other income (loss) | $150,350,300 | $(8,423,621) | $395,661,456 | $15,595,778 | | Income (loss) before income taxes | $150,094,338 | $(8,768,620) | $394,955,636 | $14,920,634 | | Income tax (expenses) benefits | $(31,519,811) | $1,841,411 | $(82,940,684) | $(2,301,348) | | Net income (loss) from continuing operation | $118,574,527 | $(6,927,209) | $312,014,952 | $12,619,286 | | Net comprehensive income (loss) per share, basic and diluted from continuing operation | $0.27 | $(0.99) | $1.16 | $2.74 | | Weighted-average shares outstanding, basic and diluted | 436,265,135 | 6,976,410 | 267,870,110 | 4,609,505 | - The company reported **no service revenue** for the three and six months ended June 30, 2025 and 2024[16](index=16&type=chunk) - Net income from continuing operations significantly increased to **$312,014,952** for the six months ended June 30, 2025, primarily driven by other income[16](index=16&type=chunk) [Unaudited Condensed Consolidated Statement of Changes in Stockholders' Equity](index=6&type=section&id=Unaudited%20Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Stockholders'%20Equity) This section presents the unaudited condensed consolidated statement of changes in stockholders' equity for the six months ended June 30, 2025 Changes in Stockholders' Equity (Six Months Ended June 30, 2025) | Item | Shares | Common Stock Amount ($) | Additional Paid in Capital ($) | Retained Earnings ($) | Total Shareholder Equity ($) | | :--- | :--- | :--- | :--- | :--- | :--- | | Balance as of December 31, 2024 | 6,976,410 | $— | $71,718,790 | $9,909,272 | $81,628,062 | | Stock issued during the period | 429,288,725 | $— | $145,958,167 | $— | $145,958,167 | | Net income for the period | — | $— | $— | $312,014,952 | $312,014,952 | | Balance as of June 30, 2025 | 436,265,135 | $— | $217,676,957 | $321,924,224 | $539,601,181 | - Total outstanding common shares increased significantly from **6,976,410** as of December 31, 2024, to **436,265,135** as of June 30, 2025, primarily due to stock issuances[22](index=22&type=chunk) [Unaudited Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This section presents the unaudited condensed consolidated statements of cash flows for the six months ended June 30, 2025 and 2024 Consolidated Statements of Cash Flows (Six Months Ended June 30) | Item | 2025 ($) | 2024 (Restated) ($) | | :--- | :--- | :--- | | Net income from continuing operation | $312,014,952 | $12,619,286 | | Fair value gain on digital asset | $(395,661,456) | $(15,595,778) | | Deferred tax expenses | $82,940,684 | $2,301,348 | | Net cash flows provided by operating activities | $— | $— | | Net cash flows provided by investing activities | $— | $— | | Net cash flows provided by financing activities | $— | $— | | Cash and Cash Equivalents, End of Year | $668,387 | $668,387 | | Issuance of common stock to acquire digital assets (Non-cash) | $145,958,167 | $— | - The company reported **no net cash flows** from operating, investing, or financing activities for the six months ended June 30, 2025 and 2024[26](index=26&type=chunk) - A significant non-cash financing activity involved the issuance of **$145,958,167** in common stock to acquire digital assets in the first half of 2025[26](index=26&type=chunk) [Notes to Unaudited Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Unaudited%20Consolidated%20Financial%20Statements) This section provides detailed notes explaining the company's business, accounting policies, and specific financial line items [NOTE 1 – NATURE OF BUSINESS](index=8&type=section&id=NOTE%201%20%E2%80%93%20NATURE%20OF%20BUSINESS) This note describes the company's dual corporate strategies: AI-enabled software development services and Bitcoin acquisition and holding - Next Technology Holding Inc. pursues two corporate strategies: AI-enabled software development services and acquiring and holding Bitcoin[28](index=28&type=chunk) - The company views its Bitcoin holdings as held for trading, aiming to accumulate when prices are low and sell when high, and may use Bitcoin for various corporate purposes[31](index=31&type=chunk)[32](index=32&type=chunk) Bitcoin Holdings Roll-Forward (June 30, 2025) | Item | Digital asset original cost basis ($) | Fair value change in digital asset ($) | Digital asset fair value ($) | Number of Bitcoin held | | :--- | :--- | :--- | :--- | :--- | | Balance on December 31, 2024 | $24,990,000 | $53,332,430 | $78,322,430 | 833 | | Digital asset purchase | $158,083,667 | $- | $158,083,667 | 5,000 | | Fair value gain on digital asset | $- | $395,661,456 | $395,661,456 | - | | Balance on June 30, 2025 | $183,073,667 | $448,993,886 | $632,067,553 | 5,833 | [NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES](index=9&type=section&id=NOTE%202%20%E2%80%93%20SUMMARY%20OF%20SIGNIFICANT%20ACCOUNTING%20POLICIES) This note outlines the significant accounting policies used in preparing the financial statements, including consolidation and digital asset valuation - Financial statements are prepared in accordance with U.S. GAAP, consolidating the company and its subsidiaries with inter-company transactions eliminated[34](index=34&type=chunk)[37](index=37&type=chunk) - Digital assets are classified as **Level 1** in the fair value hierarchy, valued using unadjusted quoted prices in active markets[40](index=40&type=chunk)[41](index=41&type=chunk) - The company early adopted ASU 2023-08 in fiscal year 2024, measuring digital assets at fair value with unrealized gains and losses recognized as 'other income'[46](index=46&type=chunk)[47](index=47&type=chunk) [NOTE 3 – CASH AND CASH EQUIVALENTS](index=14&type=section&id=NOTE%203%20%E2%80%93%20CASH%20AND%20CASH%20EQUIVALENTS) This note details the company's cash and cash equivalents, primarily held in Hong Kong bank accounts Cash and Cash Equivalents | Item | June 30, 2025 ($) | December 31, 2024 ($) | | :--- | :--- | :--- | | Bank Deposits- Outside USA | $668,387 | $668,387 | - All company cash is held in Hong Kong bank accounts and is **not protected** by FDIC insurance or the Hong Kong Deposit Protection Scheme[45](index=45&type=chunk) [NOTE 4 – DIGITAL ASSETS](index=15&type=section&id=NOTE%204%20%E2%80%93%20DIGITAL%20ASSETS) This note provides details on the company's digital asset holdings, including purchases and fair value gains Digital Assets Holdings | Item | June 30, 2025 ($) | December 31, 2024 ($) | | :--- | :--- | :--- | | Opening balance | $78,322,430 | $35,137,576 | | Purchase of BTC | $158,083,667 | $- | | Fair value gain on digital assets | $395,661,456 | $43,184,854 | | Ending balance | $632,067,553 | $78,322,430 | - In March 2025, the company acquired **5,000 BTC** for **$158,083,667**, paid through the issuance of common shares and warrants[72](index=72&type=chunk)[81](index=81&type=chunk)[83](index=83&type=chunk) - The company recognized a fair value gain of **$395,661,456** on digital assets for the six months ended June 30, 2025, recorded under 'Other Income'[72](index=72&type=chunk) [NOTE 5 – PREPAYMENTS](index=17&type=section&id=NOTE%205%20%E2%80%93%20PREPAYMENTS) This note details the company's prepayments, specifically for digital asset acquisitions Prepayments | Item | June 30, 2025 ($) | December 31, 2024 ($) | | :--- | :--- | :--- | | Prepayment for digital assets | $- | $12,125,500 | - The **$12.1 million** prepayment for digital assets as of December 31, 2024, was applied towards the **5,000 BTC** acquisition by June 30, 2025[77](index=77&type=chunk)[84](index=84&type=chunk) [NOTE 6 – ACCOUNTS RECEIVABLE, NET](index=17&type=section&id=NOTE%206%20%E2%80%93%20ACCOUNTS%20RECEIVABLE%2C%20NET) This note provides information on the company's accounts receivable, net of any allowance for credit loss Accounts Receivable, Net | Item | June 30, 2025 ($) | December 31, 2024 ($) | | :--- | :--- | :--- | | Accounts Receivable | $540,000 | $1,800,000 | | Less: Allowance for credit loss | $- | $- | | Accounts Receivable, net | $540,000 | $1,800,000 | - Accounts receivable decreased from **$1,800,000** as of December 31, 2024, to **$540,000** as of June 30, 2025, with no allowance for credit loss[85](index=85&type=chunk) [NOTE 7 – INVESTMENT](index=17&type=section&id=NOTE%207%20%E2%80%93%20INVESTMENT) This note details the company's investment in an associate company, which has been fully impaired Investment in Associate Company | Item | June 30, 2025 ($) | December 31, 2024 ($) | | :--- | :--- | :--- | | Investment in an associate company | $13,396,000 | $13,396,000 | | Impairment of the investment | $(13,396,000) | $(13,396,000) | | Net Investment | $- | $- | - The company acquired a **20% stake** in an associate company in April 2024 for **$13,396,000**, which has been fully impaired[86](index=86&type=chunk)[87](index=87&type=chunk) [NOTE 8 – AMOUNT DUE TO RELATED PARTIES](index=18&type=section&id=NOTE%208%20%E2%80%93%20AMOUNT%20DUE%20TO%20RELATED%20PARTIES) This note outlines amounts due to related parties, specifically director fees payable Amount Due to Related Parties | Item | June 30, 2025 ($) | December 31, 2024 ($) | | :--- | :--- | :--- | | Director fee payable | $278,666 | $972,000 | - Director fee payable decreased from **$972,000** as of December 31, 2024, to **$278,666** as of June 30, 2025, with no interest or fixed repayment terms[88](index=88&type=chunk)[89](index=89&type=chunk) [NOTE 9 – OTHER PAYABLES](index=18&type=section&id=NOTE%209%20%E2%80%93%20OTHER%20PAYABLES) This note details the company's other payables, including professional fees, operating expenses, and short-term loans Other Payables | Item | June 30, 2025 ($) | December 31, 2024 ($) | | :--- | :--- | :--- | | Professional fees and operating expenses | $389,879 | $460,985 | | Short term loans | $1,700,612 | $760,352 | | Total | $2,090,491 | $1,221,337 | - Total other payables increased from **$1,221,337** as of December 31, 2024, to **$2,090,491** as of June 30, 2025, primarily due to increased short-term loans[90](index=90&type=chunk) [NOTE 10 – SHAREHOLDERS' EQUITY](index=18&type=section&id=NOTE%2010%20%E2%80%93%20SHAREHOLDERS'%20EQUITY) This note provides information on changes in the company's shareholders' equity, including common stock issuances Common Stock Outstanding | Date | Shares Issued and Outstanding | | :--- | :--- | | June 30, 2025 | 436,265,135 | | December 31, 2024 | 6,976,410 | - In March 2025, **135,171,078 shares** and warrants for **294,117,647 shares** were issued for **5,000 Bitcoin** acquisition, increasing total outstanding shares to **436,265,135**[103](index=103&type=chunk) - In April 2024, **$1,974,140** of outstanding liabilities were converted into **411,280 shares** of common stock[102](index=102&type=chunk) [NOTE 11 – REVENUE](index=19&type=section&id=NOTE%2011%20%E2%80%93%20REVENUE) This note describes the company's revenue sources and reports no revenue from SAAS business for the periods presented - The company's primary revenue is derived from providing **AI-enabled software development services**[104](index=104&type=chunk) - **No revenue** was generated from SAAS business for the three and six months ended June 30, 2025 and 2024[105](index=105&type=chunk) [NOTE 12 – INCOME TAXES](index=19&type=section&id=NOTE%2012%20%E2%80%93%20INCOME%20TAXES) This note outlines the applicable income tax rates and the components of income tax expense or benefit Income Tax Rates and Components | Item | US Statutory Income Tax Rate (%) | Hong Kong Profits Tax Rate (%) | BVI Subsidiary Income Tax Rate (%) | | :--- | :--- | :--- | :--- | | Rate | 21.0% | 16.5% | Nil | Income Tax Expense (Benefit) | Item | Three Months Ended June 30, 2025 ($) | Three Months Ended June 30, 2024 ($) | Six Months Ended June 30, 2025 ($) | Six Months Ended June 30, 2024 ($) | | :--- | :--- | :--- | :--- | :--- | | Current income tax expense | $- | $- | $- | $- | | Deferred income tax expense (benefit) | $31,519,811 | $(1,841,411) | $82,940,684 | $2,301,348 | | Total | $31,519,811 | $(1,841,411) | $82,940,684 | $2,301,348 | [NOTE 13- SEGMENT INFORMATION](index=20&type=section&id=NOTE%2013-%20SEGMENT%20INFORMATION) This note clarifies that the company operates as a single reportable segment, with Net Income as the primary performance measure - The company operates as a **single reportable segment**, with the CEO serving as the Chief Operating Decision Maker (CODM)[109](index=109&type=chunk) - **Net Income** is the primary measure of segment performance used by the CODM to monitor results and allocate resources[110](index=110&type=chunk) [NOTE 14 – BASIC AND DILUTED NET INCOME PER SHARE](index=22&type=section&id=NOTE%2014%20%E2%80%93%20BASIC%20AND%20DILUTED%20NET%20INCOME%20PER%20SHARE) This note presents the basic and diluted net income per share calculations for the periods presented Basic and Diluted Net Income Per Share | Item | Three Months Ended June 30, 2025 ($) | Three Months Ended June 30, 2024 ($) | Six Months Ended June 30, 2025 ($) | Six Months Ended June 30, 2024 ($) | | :--- | :--- | :--- | :--- | :--- | | Net income (loss) | $118,574,527 | $(6,927,209) | $312,014,952 | $12,619,286 | | Weighted-average common shares outstanding | 436,265,135 | 6,976,410 | 267,870,110 | 4,609,505 | | Earnings (loss) per share, basic and diluted | $0.27 | $(0.99) | $1.16 | $2.74 | - There were **no potentially dilutive shares** as of June 30, 2025, and December 31, 2024[114](index=114&type=chunk) [NOTE 15 – COMMITMENTS AND CONTINGENCIES](index=22&type=section&id=NOTE%2015%20%E2%80%93%20COMMITMENTS%20AND%20CONTINGENCIES) This note states that the company had no significant capital commitments, guarantees, or contingencies - The company had **no significant capital or other commitments, guarantees, or contingencies** as of June 30, 2025, and December 31, 2024[115](index=115&type=chunk) [NOTE 16 – SUBSEQUENT EVENTS](index=22&type=section&id=NOTE%2016%20%E2%80%93%20SUBSEQUENT%20EVENTS) This note discloses subsequent events, including the filing of a Form S-8 for an equity incentive plan - On July 3, 2025, the company filed a Form S-8 to register **80 million common stocks** under the 2025 Equity Incentive Plan, with **20 million shares** already granted[116](index=116&type=chunk) [NOTE 17 – DISCONTINUED OPERATIONS](index=22&type=section&id=NOTE%2017%20%E2%80%93%20DISCONTINUED%20OPERATIONS) This note describes the termination of the company's PRC operations and the dissolution of its subsidiary - The company's board approved the termination of all PRC operations on June 21, 2024, leading to the dissolution of its subsidiary in July 2024[118](index=118&type=chunk) - Net income from discontinued operations was **nil** for the three and six months ended June 30, 2024[118](index=118&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=23&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on financial performance, reiterating its dual strategy of AI software development and Bitcoin acquisition, highlighting increased net income from digital asset gains - The company's business strategy involves providing **AI-enabled software development services** and acquiring and holding Bitcoin, viewing Bitcoin holdings as held for trading[121](index=121&type=chunk)[122](index=122&type=chunk)[123](index=123&type=chunk)[124](index=124&type=chunk) Results of Operations (Six Months Ended June 30) | Item | 2025 ($) | 2024 ($) | | :--- | :--- | :--- | | Revenue | $— | $— | | Other income | $395,661,456 | $15,595,778 | | General and administrative expenses | $(705,820) | $(675,144) | | Net income | $312,014,952 | $12,619,286 | - Net income for the six months ended June 30, 2025, was **$312,014,952**, a substantial increase from **$12,619,286** in 2024, primarily due to fair value gains from digital assets[131](index=131&type=chunk)[132](index=132&type=chunk) - General and administrative expenses increased to **$705,820** for the six months ended June 30, 2025, mainly due to higher litigation-related legal fees[130](index=130&type=chunk) - As of June 30, 2025, cash on hand was **$668,387**, with no change during the period, and operating cash flow was **nil** for both periods[133](index=133&type=chunk)[134](index=134&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=26&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) As a 'smaller reporting company,' the registrant is exempt from providing quantitative and qualitative disclosures about market risk - The company is a **'smaller reporting company'** and is not required to provide quantitative and qualitative disclosures about market risk[139](index=139&type=chunk) [Item 4. Controls and Procedures](index=26&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and internal control over financial reporting were ineffective as of June 30, 2025, due to material weaknesses including limited resources and lack of segregation of duties, with remediation planned - Disclosure controls and procedures were **not effective** as of June 30, 2025, due to limited internal resources and lack of multiple levels of transaction review[142](index=142&type=chunk) - Material weaknesses include lack of outside directors, management domination, ineffective internal audit, lack of segregation of duties, and insufficient review of accounting data[142](index=142&type=chunk)[143](index=143&type=chunk) - Management believes the financial statements and other information presented are **materially correct** despite identified weaknesses[142](index=142&type=chunk) - The company plans to remediate significant deficiencies and implement segregation of duties with proper funding[144](index=144&type=chunk) - There were **no material changes** in internal control over financial reporting during the most recently completed fiscal quarter[146](index=146&type=chunk) [PART II – Other Information](index=27&type=section&id=PART%20II%20%E2%80%93%20Other%20Information) This part provides disclosures on legal proceedings, risk factors, equity sales, defaults, mine safety, and other relevant information [Item 1. Legal Proceedings](index=27&type=section&id=Item%201.%20Legal%20Proceedings) This section details ongoing legal disputes involving unauthorized individuals attempting to assert control, including a preliminary injunction, dismissed lawsuit, and pending new legal actions - Since mid-September 2023, Mr. Zheng Dai, Mr. Pijun Liu, and affiliates have falsely claimed to represent the company, leading to legal disputes[148](index=148&type=chunk) - On January 5, 2024, the Chancery Court issued a preliminary injunction restraining Mr. Zheng Dai and affiliates from acting on behalf of the company or changing board composition[151](index=151&type=chunk)[152](index=152&type=chunk)[154](index=154&type=chunk) - The Chancery Court dismissed the plaintiffs' case on April 8, 2024, but new lawsuits for corporate records inspection and alleged loan repayments remain pending[153](index=153&type=chunk)[155](index=155&type=chunk)[157](index=157&type=chunk)[160](index=160&type=chunk) - On April 9, 2025, the WY District Court denied a motion for preliminary injunction to enjoin future share issuances by the company[159](index=159&type=chunk) [Item 1A. Risk Factors](index=28&type=section&id=Item%201A.%20Risk%20Factors) As a 'smaller reporting company,' the registrant is exempt from providing disclosures about risk factors - The company is a **'smaller reporting company'** and is not required to provide risk factor disclosures[161](index=161&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=28&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no unregistered sales of equity securities or use of proceeds for the period - **No unregistered sales** of equity securities or use of proceeds were reported[162](index=162&type=chunk) [Item 3. Defaults Upon Senior Securities](index=28&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reported that no senior securities were issued and outstanding during the six months ended June 30, 2025 - **No senior securities** were issued and outstanding during the six months ended June 30, 2025[163](index=163&type=chunk) [Item 4. Mine Safety Disclosures](index=28&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company's operations - Mine Safety Disclosures are **not applicable** to the company[164](index=164&type=chunk) [Item 5. Other information](index=28&type=section&id=Item%205.%20Other%20information) The company reported no other information to disclose under this item - **No other information** was reported under this item[165](index=165&type=chunk) [Item 6. Exhibits](index=28&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including officer certifications and XBRL formatted financial statements - Exhibits include certifications of the Principal Executive Officer (31.1) and Principal Financial Officer (31.2), and XBRL formatted financial statements (101, 104)[165](index=165&type=chunk) [Signatures](index=29&type=section&id=Signatures) This section contains the required signatures of the company's authorized officers, certifying the submission of the quarterly report [Report Signatures](index=29&type=section&id=Report%20Signatures) This section contains the required signatures of the company's authorized officers, certifying the submission of the quarterly report - The report was signed on **August 8, 2025**, by Wei Hong Liu, Chief Executive Officer, and Eve Chan, Chief Financial Officer[168](index=168&type=chunk)
WeTrade Marks 10th Anniversary with Global Campaign Upgrades and Rewards
GlobeNewswire News Room· 2025-08-01 10:15
Core Insights - WeTrade is celebrating its 10th anniversary with a global branding campaign, domain name upgrade, expanded trading tools, and a significant client reward program [1][2][4] Company Overview - Founded in 2015, WeTrade has evolved into a globally recognized trading platform, serving a rapidly growing client base across various regions [2][9] - The company emphasizes performance, visibility, and appreciation in its operations [2] Branding Campaign - The anniversary campaign included lighting up iconic skylines such as Nasdaq Tower in New York, Leicester Square in London, and Victoria Harbour in Hong Kong, showcasing the brand on major LED billboards [3] - This initiative reinforces WeTrade's position as a trusted international broker and highlights its increasing influence in the financial industry [3] Client Reward Program - The "10 Years In Trust We Trade" campaign runs from August 1 to August 31, 2025, offering $100,000 in rewards [4] - New clients can earn $2 cashback per standard lot traded, with total giveaways up to $100,000, while existing clients can earn 2 Reward Points per lot, up to 100,000 points [4] - Clients trading 25 standard lots during the campaign can redeem a limited-edition Gold Note and have a chance to win up to 3,000 Reward Points on the Anniversary Lucky Wheel [5] Major Brand Updates - WeTrade has upgraded its official website from wetradebroker.com to wetrade.com, reflecting a more streamlined global identity [6] - The platform now offers MetaTrader 5 (MT5) across mobile and desktop, enhancing trading execution, market data access, charting options, and multi-asset trading flexibility [6] Commitment to Growth - WeTrade's growth is characterized by a commitment to trust, client-first innovation, and strong partnerships, earning multiple regulatory licenses and industry recognition [7] - The company aims to provide a better trading experience, as stated by its CEO, George Miltiadou [8]
WeTrade Earns Australian Financial Licence from ASIC
GlobeNewswire News Room· 2025-07-09 03:16
Core Insights - WeTrade Group has secured a significant milestone by obtaining a licence from ASIC for its Australian entity, WeTrade Capital (Australia) Pty Ltd, which is crucial for its growth in the Asia-Pacific region [1][2][4] Regulatory Impact - The ASIC licence allows WeTrade to provide regulated financial services in Australia, enhancing its reputation as a trusted multi-asset broker and ensuring compliance with strict Australian financial laws [2][5][6] - This regulatory approval is expected to increase client trust and accountability, as it assures traders of the company's adherence to high standards of compliance and integrity [5][6] Strategic Expansion - The new authorisation expands WeTrade's international regulatory footprint, positioning the company to explore new opportunities in Australia and surrounding markets [7] - The focus remains on building a safer, more transparent, and rewarding trading experience for clients globally, reinforcing the company's commitment to operating under respected regulatory bodies [7] Company Overview - WeTrade, founded in 2015, is a globally recognized financial broker offering innovative online trading services across a diverse range of CFD instruments [8][9] - The company is known for strong client protection, ultra-low spreads, and award-winning loyalty programs, aiming to make trading both successful and rewarding [9]
WeTrade Group(WETG) - 2025 Q1 - Quarterly Report
2025-05-09 14:59
Financial Performance - Net income from continuing operations for the three months ended March 31, 2025, was $193,440,425, a substantial increase from $19,546,495 in the same period of 2024, reflecting a growth of about 887%[17] - Other income for the three months ended March 31, 2025, was $245,311,156, significantly up from $24,019,399 in 2024, primarily due to gains from digital assets[125] - For the three months ended March 31, 2025, the Company reported a net income of $193,440,425, compared to a net loss of $19,546,495 for the same period in 2024[126] Asset Growth - Total assets increased significantly to $483,825,640 as of March 31, 2025, compared to $92,916,317 as of December 31, 2024, representing a growth of approximately 420%[15] - The total stockholders' equity rose to $421,026,654 as of March 31, 2025, up from $81,628,062 as of December 31, 2024, marking an increase of around 416%[15] - The Company’s digital assets holdings increased from $78,322,430 on December 31, 2024, to $481,717,253 on March 31, 2025, reflecting a significant fair value gain of $245,311,156 for the three months ended March 31, 2025[71] Bitcoin Holdings and Strategy - The company held 5,833 bitcoins as of March 31, 2025, with a total fair value of $481,717,253, compared to 833 bitcoins valued at $78,322,430 as of December 31, 2024, reflecting a significant increase in both quantity and value[15][32] - The company plans to continue its strategy of acquiring bitcoin with liquid assets exceeding working capital requirements, indicating a focus on long-term asset appreciation[27][30] - The company aims to generate cash for treasury management through periodic sales of bitcoin, highlighting a strategy for liquidity management[31] Shareholder Information - The weighted-average shares outstanding increased to 97,604,030 for the three months ended March 31, 2025, compared to 2,625,130 in the prior year, indicating a substantial increase in share issuance[17] - The Company has unlimited authorized shares of $0.00 par value common stock, with 436,265,135 shares issued and outstanding as of March 31, 2025[61] - The Company executed a 1-for-185 reverse stock split, reducing outstanding shares from 195,057,503 to 1,054,530 shares[96] Expenses and Financial Management - Operating expenses for the three months ended March 31, 2025, were $449,858, compared to $330,145 in the same period of 2024, representing an increase of approximately 36%[17] - General and administrative expenses increased to $449,858 for the three months ended March 31, 2025, from $330,145 in 2024, mainly due to higher litigation-related legal fees[124] - The company has not generated any revenue from its SAAS business for the three months ended March 31, 2025, and 2024[103] Tax and Compliance - The Company is subject to a U.S. Federal tax rate of 21% and has a subsidiary in Hong Kong subject to a 16.5% profits tax[104] - The company has adopted ASU 2023-09 for improved income tax disclosures, effective for fiscal years beginning after December 15, 2024[69] Legal Matters - A derivative lawsuit was filed against the company by purported shareholders seeking control, which was dismissed without prejudice on October 18, 2023[143] - The Chancery Court granted a temporary restraining order on November 7, 2023, restraining unauthorized individuals from claiming to act on behalf of the company[145] - A new lawsuit was initiated against the company in the WY District Court seeking inspection of certain corporate records[147] Internal Controls and Governance - As of March 31, 2025, the company concluded that its disclosure controls and procedures were not effective due to limited internal resources and lack of transaction review[136] - Management identified material weaknesses in internal audit functions and lack of segregation of duties within accounting functions[137] - The company plans to implement procedures to assure that the initiation of transactions, custody of assets, and recording of transactions will be performed by separate individuals[138]
WeTrade Announces Launch of Two Hundred Thousand Dollar Trading Blitz Race 2025 – Live Competition Starting 1 May
GlobeNewswire News Room· 2025-05-01 07:22
Core Points - WeTrade has launched the Trading Blitz Race 2025, a live trading competition with a total prize pool of $200,000 [1][3] - The competition runs from May 1 to July 31, 2025, with the grand champion receiving $100,000 and weekly prizes of $2,000 for highest weekly profit and largest trading volume [3][4] - A new feature this year is free real-time copy trading, allowing non-participating traders to follow the top 20 traders' strategies without fees [4][7] Company Overview - WeTrade is a globally recognized financial broker founded in 2015, known for its innovative online trading services and commitment to excellence [9] - The company offers ultra-low spreads, flexible leverage options, and strong capital security, earning awards such as Most Trusted Broker and Best Loyalty Program Broker [9] - WeTrade plans to expand its competition series and educational initiatives to empower more traders in global markets [8]
WeTrade Group(WETG) - 2024 Q4 - Annual Report
2025-03-27 18:58
Bitcoin Holdings and Strategy - As of December 31, 2024, the Company has accumulated Bitcoin holdings valued at $78,322,430, with a fair value gain of $53,332,430 since the original cost basis of $24,990,000[20]. - The Company purchased Bitcoin worth $24,990,000 during the year, resulting in a total of 833 Bitcoin held[20]. - The fair value of the Company's Bitcoin holdings increased by $10,147,576 from December 31, 2022, to December 31, 2023[20]. - The Company plans to continue its strategy of acquiring Bitcoin using liquid assets exceeding working capital requirements and may engage in capital raising transactions to fund additional purchases[17]. - The Company views its Bitcoin holdings as trading assets and has not set a specific target for the amount of Bitcoin to hold, indicating a flexible approach based on market conditions[18]. - The Company may periodically sell Bitcoin for corporate purposes, including treasury management and tax benefit strategies[19]. - The company holds substantially all of its Bitcoin in custody accounts at institutional-grade custodians, with a strategy to acquire Bitcoin using liquid assets exceeding working capital requirements[60]. - The company entered into an Amended BTC Trading Contract to purchase up to 5,167 BTC at US$30,000 per BTC over a 12-month period, indicating a strategic move to expand its digital asset holdings[197]. Regulatory Environment - The regulatory environment in Hong Kong currently does not impose significant restrictions on the Company's operations, but future changes in PRC laws could impact its business[21]. - 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 pose risks[31]. - The evolving regulatory landscape for digital assets may affect the Company's operations, as different jurisdictions have varying approaches to the legality and regulation of Bitcoin and other digital assets[35]. - The company's business operations are not currently impacted by the cryptocurrency restrictions imposed by the Chinese government[42]. - The People's Bank of China has issued multiple notices emphasizing that Bitcoin is a virtual commodity and prohibiting financial institutions from providing Bitcoin-related services[43][44]. - The most recent regulatory measure from the People's Bank of China bans overseas cryptocurrency exchanges from providing services to residents in mainland China[45]. - The U.S. federal government is actively considering regulatory measures for digital assets, including the potential creation of a U.S. CBDC[49]. - The European Union's Markets in Crypto Assets Regulation became effective in June 2023, with various requirements phasing into effect through 2024[50]. - The SEC has filed complaints against major cryptocurrency exchanges, alleging violations related to the operation of unregistered securities exchanges[50]. - Binance Holdings Ltd. agreed to pay $4.3 billion in penalties to resolve a multi-year investigation by U.S. regulatory agencies[50]. - The SEC is evaluating the definition of "exchange" to encompass trading systems for digital asset securities, which could significantly impact digital asset trading venues[49]. - The U.S. Treasury Department's Office of Foreign Assets Control has updated advisories regarding the use of virtual currencies and has engaged in enforcement actions against digital asset exchanges[41]. - Future changes in business strategies could expose the company to evolving PRC Crypto Restrictions, potentially impacting operations[48]. Financial Performance - For the fiscal year ended December 31, 2024, total revenue was $1.80 million, a decrease of 28% from $2.50 million in 2023[173]. - Gross profit for 2024 was $1.07 million, down from $1.43 million in 2023, reflecting a decline in service revenue[172]. - General and administrative expenses decreased significantly to $1.09 million in 2024 from $2.67 million in 2023, a reduction of approximately 59%[175]. - Other income surged to $43.19 million in 2024, compared to $4.39 million in 2023, primarily due to Bitcoin value appreciation[177]. - The company reported a net income from continuing operations of $21.54 million for 2024, a substantial increase from $3.02 million in 2023[172]. - An impairment of long-term investment of $13.40 million was recognized in 2024 following the acquisition of 20% of an associate company[176]. - Total assets as of December 31, 2024, amounted to US$92.92 million, up from US$48.93 million in 2023, with digital assets increasing from US$35.14 million to US$78.32 million[182][183]. - The company reported total liabilities of US$11.29 million in 2024, compared to US$4.22 million in 2023, with deferred tax liabilities of US$8.24 million[182][183]. - Cash and cash equivalents remained stable at US$668,387 for both 2024 and 2023, despite fluctuations in cash flows from operating activities[184]. - The company had net cash flows used in continued operating activities of US$0 in 2024, a recovery from US$12.70 million in 2023[184][186]. - Cash flows used in continued investing activities were nil in 2024, contrasting with US$37.12 million in 2023, primarily due to significant Bitcoin acquisitions[188]. - The total stockholders' equity increased to US$81.63 million in 2024 from US$44.71 million in 2023, reflecting strong financial growth[182][183]. Corporate Governance and Legal Matters - The Company remains under the control of its current board of directors, consisting of Lichen Dong (Chairman), Tian Yang, Mahesh Thapaliya, and Jianbo Sun[82]. - On April 8, 2024, the Chancery Court dismissed the plaintiffs' case with prejudice, allowing the Company to reserve its right to seek fees[82]. - The Company faced a new lawsuit on September 6, 2024, in the Wyoming State District Court, seeking inspection of certain corporate records[83]. - The Company opposed a motion for preliminary injunction filed on December 9, 2024, asserting it was without merit[84]. - The Company moved to dismiss a case in the NY Court on September 9, 2024, citing unauthorized guarantees as null and void[85]. - The company has not declared or paid any dividends to shareholders as of the date of the annual report, and there are no current cash management policies in place[53]. - The company has not made any distributions of dividends or assets among the holding company or subsidiaries as of the date of the annual report[53]. - The company is subject to the Holding Foreign Company Accountable Act, which could lead to delisting if its auditor cannot be inspected for two consecutive years[51]. - A temporary restraining order was granted on November 7, 2023, to prevent unauthorized individuals from claiming to act on behalf of the company[133]. - A derivative lawsuit was filed on September 28, 2023, but was dismissed without prejudice on October 18, 2023[131]. Employee and Operational Matters - The company currently has 6 full-time employees across various functions, including 2 in technology and 2 in the financial department[73]. - The company has not formed any employee union or association and maintains a good working relationship with its employees[74]. - The company has complied with local regulations regarding social security and employee insurance[113]. - The company has established procedures for managing cybersecurity risks, including regular risk assessments and employee training[125]. - The company has not identified any significant cybersecurity risks that could materially affect its business strategy or financial condition[127]. - Inflation has not materially affected the company's business or operational results[190]. - No changes in internal control over financial reporting that materially affected the company during the most recently completed fiscal quarter[209]. Taxation - The Enterprise Income Tax rate for resident enterprises is set at 25%[104]. - The VAT rate for taxpayers selling goods is 17%, with specific rates for other services[106]. - The applicable VAT rate for the company is currently 6%, and the income tax rate is 25%[107]. - The company is eligible for receiving tax refunds according to certain favorable government policies starting from 2021[107]. - The Hong Kong profits tax is imposed at rates of 8.25% on assessable profits up to HKD 2,000,000 and 16.5% on profits over HKD 2,000,000[120]. - 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 a typical transaction[121]. Management Experience - Weihong Liu, the CEO, has over 10 years of experience in investment and research in crypto assets and blockchain technology[214]. - Nan Ding, the COO, has over 24 years of operational management experience in cross-border investment and international trade[215].
WeTrade Group(WETG) - 2024 Q3 - Quarterly Report
2024-11-15 18:39
Financial Performance - Net profit from continuing operations for the nine months ended September 30, 2024, was $1,372,076, a recovery from a loss of $13,412,061 in the same period last year[13]. - Earnings per share from continuing operations improved to $0.20, compared to a loss of $9.47 in the previous year[13]. - The company reported a gross profit of $1,229,136 for the nine months ended September 30, 2024, compared to a gross profit of $1,500,000 in the previous year[13]. - The company recognized other income of $2,303,789, contrasting with a significant loss of $14,406,397 in the previous year[13]. - Net profit for the nine months ended September 30, 2024, was $13,991,362, compared to a net loss of $13,714,836 for the same period in 2023[3]. - For the three months ended September 30, 2024, the company reported a net profit of $1,372,076 compared to a net loss of $(13,412,061) for the same period in 2023[56]. - The net loss for the three-month period ended September 30, 2024 was $1,372,076, compared to a net loss of $13,412,061 in 2023, with the improvement attributed to the absence of bad debt provisions[116]. Assets and Liabilities - Total assets increased to $79,433,755 as of December 31, 2023, up from $48,931,463[9]. - Digital assets rose significantly to $53,037,144, compared to $35,137,576 previously[9]. - Current liabilities decreased to $2,691,503 from $4,223,087, indicating improved financial health[9]. - Total stockholders' equity increased to $74,076,174, up from $44,708,376[9]. - The number of common shares outstanding increased to 6,976,410 from 2,625,130[9]. - Retained earnings improved to $2,357,384 from an accumulated deficit of $11,640,274[9]. - Cash and cash equivalents at the end of the period were $668,387, compared to $1,416,324 at the end of the same period in 2023[3]. - As of September 30, 2024, accounts receivable were $0, down from $1,000,000 as of December 31, 2023[70]. - The amount due to shareholders was $300,055, representing advances and professional expenses paid on behalf of shareholders[84]. - The Company had account payables of $800,000 as of December 31, 2023, related to software services fees[85]. - Other payables as of September 30, 2024, included unpaid professional fees totaling $1,082,500[86]. Digital Assets and Bitcoin Strategy - The fair value gain from digital assets for the nine months ended September 30, 2024, was $17,899,568, while the gain for the same period in 2023 was $3,059,342[3]. - The company held approximately 833 bitcoins as of September 30, 2024, with a carrying value of approximately $53,037,144, up from $35,137,576 at the end of 2023[33]. - The fair value change of digital assets during the period resulted in a total gain of $17,899,568, reflecting the company's strategy to hold bitcoin as a long-term investment[26]. - The company has not set a specific target for the amount of bitcoin it seeks to hold, indicating a flexible acquisition strategy based on market conditions[24]. - The company expects to continue providing AI-enabled software development services while pursuing its bitcoin acquisition strategy[21]. - The company entered into an Amended BTC Trading Contract allowing the purchase of up to 5,167 BTC at a price of $30,000 per BTC over a 12-month period[61]. - The Company decided to halt the 1,000 BTC Purchase and renegotiate terms to acquire 5,167 BTC, the maximum allowed under the BTC Contract[78]. - The Company purchased 833 BTC and made a prepayment of approximately $12,125,500, representing 40% of the total purchase price for an additional 1,000 BTC[76]. - The aggregate price for the 5,000 BTC Purchase was agreed to be paid through the issuance of 40,000,000 shares valued at $3.75 per share and warrants for 80,000,000 shares at an exercise price of $2.6 per share[77]. - The Company has not made any advance payment or exercised its option to purchase any BTC under the BTC Option Contract[146]. - The Company does not intend to exercise its option to purchase any BTC under the BTC Option Contract[146]. Revenue and Expenses - Total revenue for the nine-month period ended September 30, 2024 was $nil, a decrease from $1,500,000 in the same period of 2023, primarily due to a decline in AI SAAS revenue[108]. - General and administrative expenses increased to $1,242,128 for the nine-month period ended September 30, 2024, compared to $537,576 in 2023, mainly due to higher BTC consulting and legal fees[108]. - Other income for the nine-month period was $17,899,568, significantly higher than the prior period's provision for bad debts of $11,347,054[109]. - For the three-month period ended September 30, 2024, total revenue was $nil, down from $1,500,000 in 2023, attributed to a decrease in AI SAAS system revenue[114]. - General and administrative expenses for the three-month period increased to $566,983 from $234,800 in 2023, reflecting higher consulting and legal fees[114]. - Other income for the three-month period was $2,303,789, primarily due to losses from digital assets, while prior period expenses included a fair value loss of $3.05 million and bad debt provisions[115]. Shareholder Information - The issuance of shares related to the Amended BTC Contract will dilute existing stockholders' ownership to approximately 4.91% after the issuance of 135,171,078 shares[66]. - The Company issued 3,940,000 shares for $13,396,000 to acquire 20% of an associate company in April 2024[80]. - The Company has obtained requisite stockholder approval for the Amended 5,000 BTC Transaction on September 24, 2024[69]. Financial Reporting - The financial statements from the quarterly report on Form 10-Q for the fiscal quarter ended September 30, 2024, include the Balance Sheet, Statement of Income, Statement of Cash Flows, and Notes to the Financial Statements[149].
WeTrade Group(WETG) - 2024 Q2 - Quarterly Report
2024-08-21 19:21
Financial Performance - The company reported a net loss from continuing operations of $6,916,679 for the three months ended June 30, 2024, compared to a loss of $166,294 for the same period in 2023[14]. - As of June 30, 2024, the company reported a net profit of $12,629,816, a significant improvement compared to a net loss of $302,775 for the same period in 2023[21]. - Basic and diluted net profit per share was $3.52 for the period ended June 30, 2024, compared to a loss of $0.29 in the same period of 2023[51]. Assets and Liabilities - Total current assets increased to $64,657,906 as of June 30, 2024, compared to $49,064,580 at the end of 2023, representing a growth of approximately 32%[9]. - Total liabilities remained stable at $5,934,111 as of June 30, 2024, compared to $4,350,496 at the end of 2023, indicating a slight increase in financial obligations[9]. - Stockholders' equity rose to $72,119,795 as of June 30, 2024, up from $44,714,084 at the end of 2023, reflecting an increase of approximately 61%[9]. - The company held cash in bank amounting to $668,387 as of June 30, 2024[57]. - Accounts receivables stood at $1,130,665 as of June 30, 2024, slightly down from $1,133,117 at the end of 2023[62]. Digital Assets - The company anticipates continued growth in digital assets, which amounted to $50,733,354 as of June 30, 2024, up from $35,137,576[9]. - The company's digital assets had a carrying value of approximately $50,733,354 as of June 30, 2024, up from $35,137,576 at December 31, 2023[34]. - The gain on digital assets during the period was $15,595,778, compared to a gain of $10,147,576 for the previous year[34]. - Digital assets holdings increased to $50,733,354 as of June 30, 2024, up from $35,137,576 at the end of 2023, with a gain of $15,595,778 recognized in the first half of 2024[60]. - The company held approximately 833.19 bitcoins as of June 30, 2024, consistent with the previous reporting period[34]. Shareholder Information - The company issued 4,351,280 common shares during the period, increasing total shares outstanding to 6,976,410[16]. - The weighted-average common shares outstanding increased to 3,590,757 for the period ended June 30, 2024, up from 1,054,530 in the prior year[51]. - The amount due to shareholders was $607,197 as of June 30, 2024, reflecting advances and professional expenses paid on behalf of shareholders[67]. - The company has issued a total of 6,976,410 shares with no par value as of June 30, 2024, following various share issuances and a reverse stock split[76]. Operational Insights - The company experienced a significant other income of $15,595,778 for the six months ended June 30, 2024, compared to a loss of $8,423,620 in the previous period[14]. - The company reported net cash flows used in operating activities of $(529) for the six months ended June 30, 2024, compared to $(648,252) for the same period in 2023[21]. - Future strategies include exploring new manufacturing partnerships and expanding market presence, although specific numerical targets were not disclosed[4]. - The company provides AI-enabled software development services, focusing on various SaaS solutions for businesses[24]. - The company plans to continue its strategy of acquiring bitcoin with liquid assets exceeding working capital requirements[25]. - The company has not set a specific target for the amount of bitcoin it seeks to hold, indicating a flexible approach based on market conditions[25]. Regulatory and Market Context - The RMB to USD exchange rate was 7.22 as of June 30, 2024, compared to 7.09 as of December 31, 2023[38]. - The company is subject to U.S. Federal tax laws and has not recognized an income tax benefit for its operating losses in the United States due to the expectation of not commencing active operations there[77]. - The company is classified as a "smaller reporting company" under Regulation S-K, thus not required to disclose certain market risk information[96].