WeTrade Group(WETG) - 2023 Q3 - Quarterly Report

Financial Performance - Total service revenue for the three months ended September 30, 2023, was $1,633,836, a decrease from $5,607,270 in the same period of 2022, representing a decline of approximately 71.1%[10] - Gross profit for the three months ended September 30, 2023, was $1,235,299, compared to a gross loss of $1,294,980 in the same period of 2022[10] - Operating expenses for the three months ended September 30, 2023, increased to $13,622,149, up from $7,799,979 in the same period of 2022, reflecting an increase of approximately 74.3%[10] - The net loss from continuing operations for the three months ended September 30, 2023, was $8,496,543, compared to a loss of $8,657,091 in the same period of 2022, indicating a slight improvement[10] - The net loss for the period ending September 30, 2023, was $9,455,304, compared to a net loss of $8,538,873 for the same period in 2022[20] - The company reported a loss from discontinued operations of $5,421,236 for the nine months ended September 30, 2023, compared to a loss of $6,418,752 for the same period in 2022[72] Assets and Liabilities - Total assets as of September 30, 2023, were $41,876,160, a decrease from $43,060,806 as of December 31, 2022, representing a decline of approximately 2.7%[9] - Total liabilities as of September 30, 2023, were $2,118,337, an increase from $1,341,296 as of December 31, 2022, reflecting an increase of approximately 57.8%[9] - Stockholders' equity as of September 30, 2023, was $39,757,823, down from $41,719,510 as of December 31, 2022, indicating a decrease of approximately 4.7%[9] - The balance of accumulated deficits as of September 30, 2023, was $(16,590,652), reflecting ongoing financial challenges[14] - Total assets related to discontinued operations increased to $12,105,747 as of September 30, 2023, from $1,475,491 as of December 31, 2022[74] - Total liabilities related to discontinued operations rose to $7,672,294 as of September 30, 2023, compared to $233,060 as of December 31, 2022[74] Shareholder Information - The company issued 1,570,600 shares during the three months ended September 30, 2023, resulting in additional paid-in capital of $12,616,454[13] - The company issued 1,570,600 shares for a total amount of $12,616,454 as of September 30, 2023, increasing total issued shares to 2,625,130[79] - The weighted-average common shares outstanding for basic and diluted calculations were 114,844,076 as of September 30, 2023[54] Cash Flow and Investments - Cash flows from operating activities resulted in a net cash outflow of $8,530,677 for the nine months ended September 30, 2023[20] - The total cash and cash equivalents at the end of the period was $1,416,885, down from $20,261,882 at the beginning of the period[20] - The Company held cash and cash equivalents amounting to $1,416,885 as of September 30, 2023, with no bank deposits in the USA[62] - The Company purchased approximately 833 BTC at a total cost of $24,990,000 during the nine months ended September 30, 2023[64] - The company plans to continue its strategy of acquiring bitcoin with excess liquid assets, subject to market conditions[25] - The company has made a prepayment of approximately $12,125,500 for 40% of 1000 BTC, expected to be delivered by the end of November 2023 at a lock-up price of $30,000 per BTC[67] Digital Assets - The company holds approximately 833 bitcoins, with a carrying amount of $22,398,510 after accounting for impairment losses[27] - The Company recognized a cumulative impairment loss of $2,591,490 on digital assets as of September 30, 2023[35] - Digital asset impairment loss for the period was $2,591,489, impacting the carrying amount of digital assets[20] - As of September 30, 2023, the Company held approximately 833.19 bitcoins with a carrying value of approximately $22.4 million[35] Revenue Recognition - The Company applies ASC 606 for revenue recognition, which requires a five-step model for recognizing revenue from contracts with customers[33] - For the period ended September 30, 2023, the Company generated total revenues of $2,229,999, a significant decrease from $9,197,681 for the same period in 2022[59] - The Ycloud-SAAS business generated revenues of $596,163 for the period ended September 30, 2023, compared to $9,197,681 in the prior year[59] Other Financial Information - The company has not recognized an income tax benefit for its operating losses in the U.S. and Singapore due to the expectation of not commencing active operations in these regions[80] - Related party payables increased to $719,683 as of September 30, 2023, from $521,296 as of December 31, 2022[68] - Director fees payable rose to $954,000 as of September 30, 2023, compared to $770,000 as of December 31, 2022[68] - Accrued expenses for software development fees amounted to $270,864 as of September 30, 2023, with no prior balance reported[70] - As of September 30, 2023, accounts receivable amounted to $129,765, compared to $0 as of December 31, 2022[65]