WeTrade Group(WETG)2023-08-13 16:00Financial Performance - Total service revenue for the three months ended March 31, 2023, was $614,369, a decrease of 71.2% from $2,138,952 in the same period of 2022[13] - Gross loss for the three months ended March 31, 2023, was $(296,137), compared to a gross profit of $1,466,314 in the same period of 2022[13] - Net loss from continuing operations for the three months ended March 31, 2023, was $(984,842), a significant decline from a net income of $592,316 in the same period of 2022[13] - Total revenue for the three-month period ended March 31, 2023, was $614,369, a decrease from $2,138,952 in the same period of 2022, primarily due to a reduction in Gross Merchandise Volume (GMV)[112] - Service revenue from non-related parties was $577,171 for the three months ended March 31, 2023, compared to $1,980,434 in 2022, indicating a significant decline[112] - The company reported a net loss of $984,842 for the three months ended March 31, 2023, compared to a net income of $592,316 in the same period of 2022[114] Assets and Equity - Total assets increased from $43,200,496 as of December 31, 2022, to $46,229,241 as of March 31, 2023, representing a growth of 6.9%[10][12] - Total stockholders' equity decreased from $41,719,510 as of December 31, 2022, to $39,516,758 as of March 31, 2023, a decline of 5.3%[12] - As of March 31, 2023, the total shareholder equity was $39,516,758, a decrease from $41,719,510 as of December 31, 2022, reflecting a net loss of $958,520 for the period[18] - The company reported a total accumulated deficit of $3,943,183 as of March 31, 2023, compared to an accumulated deficit of $1,714,110 as of December 31, 2022[18] Cash Flow and Liquidity - Cash and cash equivalents at the end of the period increased to $20,125,507 from $20,025,480, reflecting a slight increase of 0.5%[15] - Cash flows used in operating activities for the three months ended March 31, 2023, were $(552,673), compared to cash provided of $6,208,013 in the same period of 2022[16] - Cash on hand increased to $20,125,507 as of March 31, 2023, up from $6,356,060 in the prior period, largely due to the public offering[115] Operating Expenses - Operating expenses for the three months ended March 31, 2023, were $690,793, down from $792,456 in the same period of 2022, a decrease of 12.8%[13] - The company reported a loss from discontinued operations of $1,240,305 for the three months ended March 31, 2023, compared to a loss of $1,336,142 for the same period in 2022[92] Market and Strategic Initiatives - The market for individual micro-business owners is projected to reach 330 million users by the end of 2023, indicating significant growth potential for the company's services[22] - The YCloud system is designed to provide multiple integrated payment methods, enhancing the operational capabilities of micro-businesses[24] - The company aims to establish global strategic cooperation with various social media platforms to expand its market reach[22] - The YCloud system utilizes AI fission technology to analyze user behavior and provide tailored recommendations, enhancing user engagement[27] - The company has established trial operations in Hong Kong, indicating plans for market expansion beyond mainland China[22] - The company aims to shift its SAAS, blockchain, and WT Pay services from the PRC to overseas markets in 2023[112] Shareholder Information - The weighted average number of shares outstanding decreased from 305,451,498 in the same period of 2022 to 195,057,503 in 2023, a reduction of 36.2%[13] - The company conducted a 1-for-185 reverse stock split, reducing total outstanding shares from 195,057,503 to 1,054,364[103] - The company has no potentially dilutive shares as of March 31, 2023[55] - There are no fractional shares issued as a result of the Reverse Stock Split; they will be rounded up to the nearest whole share[127] Compliance and Reporting - The consolidated financial statements have been prepared in accordance with GAAP, ensuring compliance and transparency in financial reporting[29] - The financial statements for the fiscal quarter ended March 31, 2023, have been filed in XBRL format, including the Balance Sheet, Statement of Income, and Statement of Cash Flows[128] - The certifications of the Principal Executive Officer and Principal Financial Officer have been filed in accordance with the Sarbanes-Oxley Act[128] - There were no changes in internal control over financial reporting that materially affected the company's financial statements during the most recently completed fiscal quarter[125] - The company has not reported any material weaknesses in its internal controls[125] - The company is classified as a "smaller reporting company" and is not required to disclose certain risk factors[125] - No legal proceedings are currently pending against the company[125] Other Financial Metrics - Total GMV for the period ended March 31, 2023, was $18,606,599, a decrease from $74,561,767 in the same period of 2022[64] - The company’s intangible assets, net, amounted to $21,525 as of March 31, 2023, down from $22,959 as of December 31, 2022[68] - Amortization expense for intangible assets for the three months ended March 31, 2023, was $1,434[68] - The average exchange rate for RMB to USD was 6.84 for the period ended March 31, 2023, compared to 6.75 for the year ended December 31, 2022[39] - Accounts receivable increased to $6,748,798 as of March 31, 2023, compared to $6,723,661 as of December 31, 2022, with all service fee receivables fully settled from five main customers[76] - Total prepayments amounted to $13,137,035 as of March 31, 2023, primarily related to a $10 million prepayment for the WT Pay system development expected to be completed by September 2023[78] - Loan receivables decreased significantly to $978,133 as of March 31, 2023, down from $1,614,841 as of December 31, 2022, with no accrued interest due to a waiver[82][83] - Other payables totaled $1,708,748 as of March 31, 2023, a decrease from $2,325,188 as of December 31, 2022, primarily due to Y-Cloud system upgrade payables[89] - Tax payables decreased to $86,838 as of March 31, 2023, from $130,717 as of December 31, 2022, reflecting a reduction in corporate income tax obligations[88] - Accrued expenses totaled $377,423 as of March 31, 2023, encompassing accrued payroll and social welfare contributions[87] - The company’s related party payables decreased to $1,280,966 as of March 31, 2023, from $1,291,296 as of December 31, 2022[86] - Amortized expenses, net, decreased to $780,326 as of March 31, 2023, from $828,983 as of December 31, 2022, indicating a rise in accumulated depreciation[74] Public Offering - The company completed a public offering of 10,000,000 shares at $4.00 per share, raising gross proceeds of $40,000,000 and net proceeds of $37,057,176 after costs[100]