Future FinTech (FTFT) - 2025 Q3 - Quarterly Report

Revenue Performance - Revenue for the three months ended September 30, 2025, was $1,324,633, an increase of $297,513 or 28.97% compared to $1,027,120 in the same period of 2024[177]. - For the nine months ended September 30, 2025, total revenue was $2,482,892, an increase of $507,594 or 25.70% compared to $1,975,298 in 2024[188]. - FMCG revenue for the nine months ended September 30, 2025, reached $2,060,276, an increase of $2,059,934 or 602,319.88% from $342 in 2024, reflecting the company's strategic expansion[188]. FMCG Sector - Fast-Moving Consumer Goods (FMCG) revenue surged to $1,196,141 for the three months ended September 30, 2025, up $1,195,799 or 349,648.83% from $342 in 2024, driven by strategic expansion into the FMCG sector[178]. Revenue Declines - Trading commission and consulting service revenue decreased by $469,753 or 78.52% to $128,492 in the three months ended September 30, 2025, due to the non-recurrence of a major project from the previous year[179]. - Supply chain financing/trading revenue was nil for the three months ended September 30, 2025, a decrease of $428,533 or 100% from $428,533 in 2024, attributed to management's decision to suspend operations due to lower coal prices and reduced market demand[180]. - Supply chain financing/trading revenue for the nine months ended September 30, 2025, was $1,341, a decrease of $933,630 or 99.86% from $934,971 in 2024[188]. - Revenue from trading commission and consulting services fell to $421,275, a decrease of 59.49% from $1,039,985 in the same period last year, primarily due to the non-recurrence of a major project[190]. Profitability - Gross profit for the three months ended September 30, 2025, was $122,337, a decrease of $500,520 or 80.36% from $622,857 in 2024, primarily due to reduced gross profit from trading commission and consulting services[181]. - Overall gross profit decreased by $768,045, or 66.45%, to $387,727 for the nine months ended September 30, 2025, compared to $1,155,772 in 2024[192]. - The gross margin as a percentage of revenue dropped to 15.62% for the nine months ended September 30, 2025, a decrease of 42.90 percentage points from 58.51% in the prior year[192]. Operating Expenses - Total operating expenses for the three months ended September 30, 2025, were $2,219,797, a decrease of $2,851,195 or 56.23% compared to $5,070,992 in 2024[182]. - Total operating expenses surged to $34,941,133, representing 1,407.28% of revenue for the nine months ended September 30, 2025, compared to $8,546,890, or 432.69% of revenue in 2024[193]. Net Loss - Net loss from continuing operations for the three months ended September 30, 2025, was $1,965,312, a decrease of $2,251,450 or 53.39% from the previous year[187]. - Net loss from continuing operations was $31,058,936, an increase of 271.19% compared to the loss of $8,367,411 in the same period last year[198]. - Basic and diluted loss per share from continuing operations was $8.03 for the nine months ended September 30, 2025, compared to a loss of $4.20 in the same period last year[200]. Financial Position - Cash and cash equivalents increased to $6.89 million as of September 30, 2025, up $2.13 million from $4.77 million at the end of 2024[201]. - Working capital rose to $40.54 million as of September 30, 2025, an increase of $32.94 million from $7.60 million at the end of 2024[202]. Credit Losses - The allowance for credit losses/doubtful accounts increased to $29,416,788, a rise of 668.12% from $3,829,724 in the same period last year[196].