MMTEC(MTC) - 2024 Q4 - Annual Report

Revenue and Profitability - Total net revenues for the year ended December 31, 2024, were $1,868,333, a significant increase from$869,935 in 2023, primarily driven by placement agent services revenue of $1,860,000[243]. - Gross profit for the year ended December 31, 2024, was$1,525,250, representing a gross margin of 81.6%, compared to a gross profit of $696,987 and a gross margin of 80.1$800,000 in 2023, reflecting a shift in business focus[243]. Expenses and Losses - Selling and marketing expenses decreased by $185,343 or 20.6$715,976 for the year ended December 31, 2024, compared to $901,319 in 2023[249]. - Payroll and related benefits totaled$2,082,886 for the year ended December 31, 2024, a decrease of $429,895 or 17.1$2,512,781 in 2023[251]. - Professional fees for the year ended December 31, 2024, were $705,199, a decrease of$326,075 or 31.6% from $1,031,274 in 2023, primarily due to reduced audit and legal fees[253]. - For the year ended December 31, 2024, the loss from operations was$3,060,432, a decrease of $1,779,905, or 36.8$4,840,337 in 2023[255]. - The net loss from continuing operations for the year ended December 31, 2024, was $91,168,280, an increase of$83,319,900, or 1,061.6% compared to $7,848,380 in 2023[260]. - Other expenses, net, totaled$88,083,323 for the year ended December 31, 2024, a significant increase of $85,075,280 compared to$3,008,043 in 2023[257]. - The company reported a comprehensive loss of $91,098,670 for the year ended December 31, 2024, compared to a comprehensive income of$45,372,059 in 2023[266]. Assets and Liabilities - As of December 31, 2024, total current assets were $3,020,546, a slight decrease of$2,991, or 0.1%, from $3,023,537 in 2023[274]. - Total current liabilities increased by$1,870,344, or 34.3%, to $7,320,692 as of December 31, 2024, from$5,450,348 in 2023[274]. - The working capital deficiency increased by $1,873,335 to$4,300,146 as of December 31, 2024, from $2,426,811 in 2023, representing a 77.2$2,870,000 as of December 31, 2024, compared to $1,760,000 in 2023[269]. Cash Flow and Financing Activities - Net cash provided by operating activities for the year ended December 31, 2024 was$722,853, a significant recovery from net cash used of $5,151,508 in 2023 and$5,590,567 in 2022[277][279]. - The company reported a net cash flow from investing activities of $629,540 for 2024, compared to net cash used of$86,538,549 in 2023 and $3,544,105 in 2022[280]. - Financing activities resulted in a net cash outflow of$241,750 in 2024, contrasting with inflows of $89,666,750 in 2023 and$1,750,140 in 2022[281]. - The company experienced a net increase in cash and cash equivalents of $1,109,455 in 2024, following a decrease of$2,050,411 in 2023 and $7,380,743 in 2022[277]. - The company made payments for purchases of property and equipment of approximately$5,000 in 2024, compared to $1,000 in 2023 and$4,000 in 2022[280]. Capital Raising and Investments - The company raised approximately $15,910,000 from a registered direct offering in February 2021, with net proceeds of$14,637,200 allocated for working capital and general corporate purposes[285]. - A total of $40,000,000 in unsecured senior convertible promissory notes was issued in February 2023, with an original issue discount of 20$32,000,000[292]. - The company entered into a common stock purchase agreement allowing for the sale of up to $6.0 million in shares, with$1,256,640 raised by December 31, 2022[288]. - The company’s shelf registration statement for up to $300,000,000 in securities was declared effective by the SEC on August 24, 2022[289]. - The Company acquired an 85$99,650,000, with $91,650,000 paid in cash and$7,000,000 in a convertible promissory note[296]. Shareholder Information - As of December 31, 2024, the Company had 25,186,864 ordinary shares issued and outstanding[298]. Research and Development - Research and development expenses for the years ended December 31 were $73,285 in 2024,$363,958 in 2023, and $828,869 in 2022, indicating a significant decrease in R&D spending[300]. Currency and Risk Exposure - The RMB appreciated by 1.7% in fiscal year 2023 and by 3.21% in fiscal year 2024, which may impact the Company's financial results reported in U.S. dollar terms[415]. - The Company does not anticipate being exposed to material risks due to changes in interest rates, as it had no short-term borrowings as of December 31, 2024[404]. - The Company is not exposed to commodity price risk[417].