WeTrade Group(WETG) - 2024 Q3 - Quarterly Report

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].