Blue Hat(BHAT) - 2024 Q4 - Annual Report

Revenue Performance - Total revenues decreased by $54,962,543, or 74.59%, to$ 18,724,190 for the year ended December 31, 2024, compared to $73,686,733 for the year ended December 31, 2023[338]. - Total revenues increased by$ 71,490,779, or 3,255.57%, to $73,686,733 for the year ended December 31, 2023, compared to$ 2,195,954 for 2022, primarily due to expansion in diamond trading and commodity trading[359]. - Revenue from diamond trading reached $15,152,777 for the year ended December 31, 2023, a new business initiated in Q3 2023[364]. - The diamond trading business increased from$ 15,152,777 for the year ended December 31, 2023, to $18,724,190 for the year ended December 31, 2024, representing a growth of 23.57%[339]. - The company discontinued its information services and commodity trading businesses during the year, leading to a 100% decrease in revenues from these segments[340][341]. Operating Expenses and Profitability - Total operating expenses decreased by$ 24,034,595, or 80.01%, from $30,037,627 for the year ended December 31, 2023, to$ 6,003,032 for the year ended December 31, 2024[352]. - Gross profit increased by $392,098, or 33.98%, to$ 1,545,949 for the year ended December 31, 2024, from $1,153,851 for the year ended December 31, 2023[348]. - Gross profit decreased by$ 83,665, or 6.76%, to $1,153,851 for the year ended December 31, 2023, with a gross margin of 1.57% compared to 56.35% in 2022[369]. - Operating expenses increased by$ 20,888,000, or 228.17%, from $9,150,000 in 2022 to$ 30,040,000 in 2023, mainly due to a rise in general and administrative expenses[373]. - Other expenses increased by $4,849,830, or 2226.02%, from$ 217,870 for the year ended December 31, 2023, to $5,067,700 for the year ended December 31, 2024, primarily due to investment write-offs and increased foreign currency charges[354]. Net Loss and Financial Position - Net loss decreased by$ 19,580,634, or 67.28%, from a net loss of $29,110,417 for the year ended December 31, 2023, to a net loss of$ 9,524,783 for the year ended December 31, 2024[356]. - Net loss increased by $12,313,336, or 130.92%, to$ 21,718,417 for the year ended December 31, 2023, compared to a net loss of $9,405,081 in 2022[358]. - As of December 31, 2024, the company had working capital of$ 29.42 million and cash equivalents of $14,300, indicating sufficient liquidity to support operations for the next twelve months[380]. - The company reported a net cash used in operating activities of$ 9.77 million for the year ended December 31, 2023, with a net loss from continued operations of $29.11 million[386]. - Net cash used in operating activities from continued operations was$ 884,952 for the year ended December 31, 2024, primarily due to a net loss of $9.5 million[385]. Future Outlook and Strategic Plans - The company expects to begin monetizing its gold holdings, which appreciated by approximately$ 25 million in value, through strategic sales and financing arrangements in 2025[343]. - The gold market is projected to remain strong, with prices expected to reach between $3,100 and$ 3,500 per ounce throughout 2025, validating the company's strategic acquisition of 1,000 kilograms of gold in 2024[395]. - The company plans to use retained earnings for business growth, with no current plans to declare dividends[383]. - The company is actively pursuing patent, trademark, and copyright protection for its proprietary technologies to secure its competitive advantages[394]. Debt and Obligations - As of December 31, 2024, the outstanding balance on short-term bank loans was $146,341, with an interest rate of 6.58%[381]. - Future minimum payments under contractual obligations total$ 2,753,969, with $146,341 due within one year[398]. - The company has no off-balance sheet arrangements that would affect liquidity or capital resources[397].