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GD Culture Group(GDC) - 2024 Q3 - Quarterly Report
GDCGD Culture Group(GDC)2024-11-14 21:30

Financial Performance - The company's total revenues for the three months ended September 30, 2024, were nil,indicatingnorevenuegenerationduringthisperiod[209].−ThelossfromoperationsforthethreemonthsendedSeptember30,2024,wasnil, indicating no revenue generation during this period[209]. - The loss from operations for the three months ended September 30, 2024, was 1,093,476, a reduction of 31.5% from the loss of 1,596,340intheprioryear[209].−ThenetlossforthethreemonthsendedSeptember30,2024,was1,596,340 in the prior year[209]. - The net loss for the three months ended September 30, 2024, was 3,839,333, which represents an increase of 8.7% compared to the net loss of 3,530,760forthesameperiodin2023[209].−Thecompany′snetlossforthethreemonthsendedSeptember30,2024,wasapproximately3,530,760 for the same period in 2023[209]. - The company's net loss for the three months ended September 30, 2024, was approximately 3.8 million, an increase of 8.7% from approximately 3.5millionforthesameperiodin2023[213].−LossfromcontinuingoperationsfortheninemonthsendedSeptember30,2024,wasapproximately3.5 million for the same period in 2023[213]. - Loss from continuing operations for the nine months ended September 30, 2024, was approximately 11.6 million, an increase of 635.8% from approximately 1.6millionforthesameperiodin2023[219].−NetlossfortheninemonthsendedSeptember30,2024,wasapproximately1.6 million for the same period in 2023[219]. - Net loss for the nine months ended September 30, 2024, was approximately 11.5 million, compared to approximately 3.7millionforthesameperiodin2023[240].OperatingExpenses−Totaloperatingexpensesdecreasedby31.53.7 million for the same period in 2023[240]. Operating Expenses - Total operating expenses decreased by 31.5% to 1,093,476 for the three months ended September 30, 2024, compared to 1,596,340forthesameperiodin2023[209].−OperatingexpensesforthethreemonthsendedSeptember30,2024,increasedtoapproximately1,596,340 for the same period in 2023[209]. - Operating expenses for the three months ended September 30, 2024, increased to approximately 7.4 million, a rise of 295.3% from approximately 1.9millionforthesameperiodin2023[214].−Sellingandmarketingexpensessurgedtoapproximately1.9 million for the same period in 2023[214]. - Selling and marketing expenses surged to approximately 2.9 million for the three months ended September 30, 2024, compared to approximately nilforthesameperiodin2023[210].−Generalandadministrativeexpensesrosebyapproximatelynil for the same period in 2023[210]. - General and administrative expenses rose by approximately 2.5 million, from approximately 1.6millionforthethreemonthsendedSeptember30,2023,toapproximately1.6 million for the three months ended September 30, 2023, to approximately 4.3 million for the same period in 2024, marking an increase of 132.1%[214]. - Research and development expenses increased to approximately 0.7millionfortheninemonthsendedSeptember30,2024,comparedtoapproximately0.7 million for the nine months ended September 30, 2024, compared to approximately nil for the same period in 2023[217]. Impairment and Other Losses - The company reported a significant other-than-temporary impairment loss of 2,756,986forthethreemonthsendedSeptember30,2024[209].−Thecompanyrecognizedimpairmentlossesof2,756,986 for the three months ended September 30, 2024[209]. - The company recognized impairment losses of 2.8 million for the nine months ended September 30, 2024, related to software copyrights[227]. - The total other income (expenses) for the three months ended September 30, 2024, was approximately (4.2)million,adecreaseof2964.7(4.2) million, a decrease of 2964.7% from 147,018 for the same period in 2023[214]. - Other income decreased by approximately 4.4millionduringtheninemonthsendedSeptember30,2024,comparedto4.4 million during the nine months ended September 30, 2024, compared to 147,018 for the same period in 2023[218]. Cash Flow and Financing - Net cash used in operating activities for the nine months ended September 30, 2024, was approximately 5.3million,adecreasefrom5.3 million, a decrease from 6.5 million for the same period in 2023[240]. - Net cash used in investing activities was approximately 0.7millionfortheninemonthsendedSeptember30,2024,downfromapproximately0.7 million for the nine months ended September 30, 2024, down from approximately 5.0 million in 2023[241]. - Net cash provided by financing activities was approximately 0.8millionfortheninemonthsendedSeptember30,2024,adecreaseofapproximately0.8 million for the nine months ended September 30, 2024, a decrease of approximately 11.9 million from 12.7millionin2023[242].−TheCompanyreceivedatotalof12.7 million in 2023[242]. - The Company received a total of 309,500 in loans from the CEO for working capital purposes, with loans due between September 2025 and October 2025[235]. - The Company plans to raise additional debt or equity capital to fund future operations, with no assurance of obtaining sufficient funds[236]. Strategic Initiatives - The company aims to generate revenue from service revenue and advertising from digital human creation, product sales from social live streaming e-commerce, and virtual paid gifts from live streaming interactive gaming[197]. - The company is focusing on expanding its market presence through social media and enhancing its digital human technology applications in various sectors[207]. - The company has invested in Shanghai Xianzhui, increasing its equity interest to 73.33% as of September 30, 2024[200]. - The company entered into a software purchase agreement for $1,248,000, to be paid with 1,560,000 shares of common stock, to enhance its AI business[205]. Risk Factors - The Company assesses that current working capital, along with the CEO's financial support, will be sufficient to meet obligations for the next 12 months[236]. - The Company is exposed to inflation risk, which could impair operating results if raw material and overhead costs increase significantly[250]. - The Company has implemented cost-cutting measures to reduce operating expenditures and loss[236]. - The company received a notice from Nasdaq regarding non-compliance with the minimum bid price requirement, but later regained compliance[203][204].