Financial Performance - For the three months ended March 31, 2024, the company's operating expenses increased to approximately $4.18 million, a 90,401.3% increase from $4,617 in the same period of 2023[200]. - The loss from continuing operations for the three months ended March 31, 2024, was approximately $4.16 million, reflecting an increase of 89,948.5% from a loss of $4,617 in the same period of 2023[204]. - The company's net loss for the three months ended March 31, 2024, was approximately $4.16 million, a 19,410.7% increase from a net loss of $21,309 in the same period of 2023[205]. - The net loss for the three months ended March 31, 2024, was approximately $4.2 million, compared to approximately $21 thousand for the same period in 2023[220]. Expenses Breakdown - Selling and marketing expenses rose to approximately $2.2 million for the three months ended March 31, 2024, compared to nil for the same period in 2023[202]. - Research and development expenses increased to $217,500 for the three months ended March 31, 2024, compared to nil for the same period in 2023[202]. - Net cash used in operating activities for the three months ended March 31, 2024, was approximately $3.6 million, compared to approximately $0.4 million for the same period in 2023[220]. - Net cash used in investing activities was approximately $1.9 million for the three months ended March 31, 2024, compared to nil for the same period in 2023[221]. - Net cash provided by financing activities was approximately $0.8 million for the three months ended March 31, 2024, compared to nil for the same period in 2023[222]. Cash Position - As of March 31, 2024, the company's net working capital was approximately $5.6 million[216]. - As of March 31, 2024, the company had cash of $486,201, down from $5,175,518 as of December 31, 2023[219]. - The company may seek to issue debt or equity securities or obtain additional credit facilities if cash requirements exceed available cash[217]. Strategic Initiatives - The company aims to generate revenue from service and advertising revenue related to digital human creation, product sales from social live streaming e-commerce, and virtual paid gifts from live streaming interactive gaming[190]. - The company has launched a live-streamed game called "Trible Light," which is currently being livestreamed on TikTok, alongside other licensed games[189]. - The company is focused on expanding its market presence on social media to enhance its competitive position in the e-commerce and live streaming sectors[198]. Corporate Governance - The company has appointed HTL as its new independent registered public accounting firm after dismissing Enrome LLP[191]. Accounting Standards - The company does not believe that the adoption of ASU 2023-09 will have a material impact on its financial statements and disclosures[212]. - The company has evaluated and concluded that the new guidance from ASU 2023-08 will not impact its unaudited condensed consolidated financial statements[214]. - The company plans to provide enhanced reportable segment financial disclosures effective with its Annual Report on Form 10-K for the year ending December 31, 2024[213]. Ownership Structure - The company owns 73.3333% of Shanghai Xianzhui after acquiring an additional 13.3333% equity interest through a stock issuance valued at $2.7820 per share[193].
GD Culture Group(GDC) - 2024 Q1 - Quarterly Report