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 loss in the previous period[13]. - The company recorded 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 the same period of 2023, mainly due to losses from digital assets[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 in the previous period[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 as of December 31, 2023[9]. - Retained earnings improved to $2,357,384 from an accumulated deficit of $11,640,274, indicating a turnaround in profitability[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 company has prepayments for digital assets totaling $12,125,500 as of September 30, 2024, unchanged from December 31, 2023[73]. Digital Assets - 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 company's digital assets holdings increased to $53,037,144 as of September 30, 2024, up from $35,137,576 at the end of 2023, with a fair value gain of $17,899,568 recognized during the nine months ended September 30, 2024[60]. - 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]. Stock and Shareholder Information - The number of common shares outstanding increased to 6,976,410 from 2,625,130, reflecting new stock issuance[16]. - The weighted-average common shares outstanding increased to 6,976,410 for the three months ended September 30, 2024, from 1,416,813 in the same period of 2023[56]. - The total issued and outstanding common stock increased to 6,976,410 shares as of September 30, 2024[97]. - 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]. 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]. - 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]. Strategic Initiatives - The company expects to continue providing AI-enabled software development services, focusing on various SaaS solutions for businesses[22]. - 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 continues to pursue a strategy of acquiring bitcoin with liquid assets exceeding working capital requirements[103]. - 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]. Contracts and Agreements - 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 entered into a Bitcoin Option Contract to purchase up to 20,000 BTC at a fixed price of $60,000 per BTC over a three-year period, with payment options in cash or common stock[145]. - 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]. Financial Reporting - The financial statements for the fiscal quarter ended September 30, 2024, are included in the quarterly report on Form 10-Q[149]. - The report includes the Balance Sheet, Statement of Income, Statement of Cash Flows, and Notes to the Financial Statements[149]. - Certifications of the Principal Executive Officer and Principal Financial Officer have been filed pursuant to the Sarbanes-Oxley Act of 2002[149]. - The report was signed by the Chief Executive Officer and Chief Financial Officer on November 15, 2024[151].
Next Technology Holding Inc.(NXTT) - 2024 Q3 - Quarterly Report