WeTrade Group(WETG) - 2024 Q2 - Quarterly Report

Financial Performance - The company reported a net loss from continuing operations of $6,916,679 for the three months ended June 30, 2024, compared to a loss of$166,294 for the same period in 2023[14]. - As of June 30, 2024, the company reported a net profit of $12,629,816, a significant improvement compared to a net loss of$302,775 for the same period in 2023[21]. - Basic and diluted net profit per share was $3.52 for the period ended June 30, 2024, compared to a loss of$0.29 in the same period of 2023[51]. Assets and Liabilities - Total current assets increased to $64,657,906 as of June 30, 2024, compared to$49,064,580 at the end of 2023, representing a growth of approximately 32%[9]. - Total liabilities remained stable at $5,934,111 as of June 30, 2024, compared to$4,350,496 at the end of 2023, indicating a slight increase in financial obligations[9]. - Stockholders' equity rose to $72,119,795 as of June 30, 2024, up from$44,714,084 at the end of 2023, reflecting an increase of approximately 61%[9]. - The company held cash in bank amounting to $668,387 as of June 30, 2024[57]. - Accounts receivables stood at$1,130,665 as of June 30, 2024, slightly down from $1,133,117 at the end of 2023[62]. Digital Assets - The company anticipates continued growth in digital assets, which amounted to$50,733,354 as of June 30, 2024, up from $35,137,576[9]. - The company's digital assets had a carrying value of approximately$50,733,354 as of June 30, 2024, up from $35,137,576 at December 31, 2023[34]. - The gain on digital assets during the period was$15,595,778, compared to a gain of $10,147,576 for the previous year[34]. - Digital assets holdings increased to$50,733,354 as of June 30, 2024, up from $35,137,576 at the end of 2023, with a gain of$15,595,778 recognized in the first half of 2024[60]. - The company held approximately 833.19 bitcoins as of June 30, 2024, consistent with the previous reporting period[34]. Shareholder Information - The company issued 4,351,280 common shares during the period, increasing total shares outstanding to 6,976,410[16]. - The weighted-average common shares outstanding increased to 3,590,757 for the period ended June 30, 2024, up from 1,054,530 in the prior year[51]. - The amount due to shareholders was $607,197 as of June 30, 2024, reflecting advances and professional expenses paid on behalf of shareholders[67]. - The company has issued a total of 6,976,410 shares with no par value as of June 30, 2024, following various share issuances and a reverse stock split[76]. Operational Insights - The company experienced a significant other income of$15,595,778 for the six months ended June 30, 2024, compared to a loss of $8,423,620 in the previous period[14]. - The company reported net cash flows used in operating activities of$(529) for the six months ended June 30, 2024, compared to $(648,252) for the same period in 2023[21]. - Future strategies include exploring new manufacturing partnerships and expanding market presence, although specific numerical targets were not disclosed[4]. - The company provides AI-enabled software development services, focusing on various SaaS solutions for businesses[24]. - The company plans to continue its strategy of acquiring bitcoin with liquid assets exceeding working capital requirements[25]. - The company has not set a specific target for the amount of bitcoin it seeks to hold, indicating a flexible approach based on market conditions[25]. Regulatory and Market Context - The RMB to USD exchange rate was 7.22 as of June 30, 2024, compared to 7.09 as of December 31, 2023[38]. - The company is subject to U.S. Federal tax laws and has not recognized an income tax benefit for its operating losses in the United States due to the expectation of not commencing active operations there[77]. - The company is classified as a "smaller reporting company" under Regulation S-K, thus not required to disclose certain market risk information[96].