WeTrade Group(WETG)2024-05-20 19:45Financial Performance - Net profit for the three months ended March 31, 2024, was $23,883,878, compared to a net loss of $212,194 for the same period in 2023, indicating a significant turnaround[10]. - The company reported other income of $24,214,021 for the three months ended March 31, 2024, which contributed to the overall profit before income taxes of $23,883,878[10]. - The net profit for the three months ended March 31, 2024, is reported at $23,883,878, with a net profit per share of $9.10, compared to a loss of $212,194 and a loss per share of $0.08 for the same period in 2023[49]. - The company recognized a gain of $24,214,021 on digital assets, compared to $10,216,901 for the same period in 2023, reflecting a 137% increase[57]. - Operating expenses for the three months ended March 31, 2024, were $330,143, up from $212,194 in the same period of 2023, reflecting increased operational costs[10]. - General and administrative expenses increased to $330,143 for the three months ended March 31, 2024, from $212,194 in the prior year, primarily due to higher BTC consulting fees[88]. Assets and Equity - Total current assets increased to $73,345,474 as of March 31, 2024, up from $49,133,905 as of December 31, 2023, representing a growth of approximately 49.2%[9]. - Total stockholders' equity increased to $68,809,595 as of March 31, 2024, compared to $44,925,822 as of December 31, 2023, reflecting a growth of approximately 53.3%[9]. - The company’s accumulated deficits decreased to $12,461,058 as of March 31, 2024, from $11,422,820 as of December 31, 2023, showing an improvement in financial health[9]. - As of March 31, 2024, the company holds approximately 833.19 bitcoins with a carrying value of $59,420,922, compared to $35,206,901 as of December 31, 2023, reflecting a gain of $24,214,021 during the period[31]. - The fair value of digital assets increased by $24,214,021 during the period, with the market value of digital assets reaching $59,420,922 as of March 31, 2024[30]. - The accounts receivable as of March 31, 2024, stood at $1,130,664, slightly down from $1,133,116 as of December 31, 2023[59]. Cash and Cash Equivalents - Cash and cash equivalents remained stable at $668,388 as of March 31, 2024, unchanged from the previous reporting period[10]. - The company maintains cash and cash equivalents of $668,388 as of March 31, 2024, unchanged from December 31, 2023[55]. - As of March 31, 2024, the company had cash on hand of $668,388, with no change in cash held during the period[88]. Business Strategy - The company continues to pursue a strategy of acquiring and holding bitcoin, viewing it as a long-term investment without a specific target for the amount to hold[21]. - The company plans to monitor market conditions to determine whether to engage in additional financings to purchase more bitcoin, indicating a proactive approach to asset management[22]. - The company has a prepayment of approximately $12,125,500 for 1,000 BTC, expected to be delivered by May 2024 at a lock-up price of $30,000 per BTC[62]. Revenue Generation - The company has not generated any service revenue for the three months ended March 31, 2024, indicating a focus on digital asset management rather than traditional service offerings[10]. - The company has not generated any revenue from its SaaS business during the period ended March 31, 2024[53]. Corporate Changes - The company changed its name to Next Technology Holding Inc effective April 2, 2024, with its common stock continuing to trade under the ticker symbol "NXTT" on NASDAQ[77]. - The company entered into a share purchase agreement to acquire 2,000 shares of Future Dao Group Holding Limited for an aggregate purchase price of $13,396,000, expected to close by the end of April 2024[76]. - The company’s total issued and outstanding common stock increased to 2,625,130 shares as of March 31, 2024, following the issuance of 1,570,600 shares in September 2023[72]. Accounting and Compliance - Financial statements are prepared in accordance with GAAP, requiring management to make estimates and assumptions[91]. - The company follows ASC 606 for revenue recognition, which includes a five-step model for recognizing revenue from contracts[29]. - Digital assets are accounted for as indefinite-lived intangible assets, recorded at cost and measured net of impairment losses[30]. - Recent accounting pronouncements are not expected to have a material impact on the company's financial statements[92]. - The company is classified as a "smaller reporting company" and is not required to provide certain market risk disclosures[94]. Market Conditions - Inflation does not materially affect the company's business or operational results[90]. - The RMB to USD exchange rate was 7.22 as of March 31, 2024, compared to 7.09 as of December 31, 2023[35]. - The company does not have any off-balance sheet arrangements[90].