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Powerbridge(PBTS) - 2020 Q4 - Annual Report
PBTSPowerbridge(PBTS)2021-07-12 16:00

Financial Performance - For fiscal years ending December 31, 2020 and 2019, the company's revenues were 26.7millionand26.7 million and 20.1 million, respectively, with application development services representing 82.5% of total revenue in fiscal 2020[234]. - Powerbridge generated revenue from a total of 602 customers in the fiscal year ended December 31, 2020, compared to 488 customers in 2019, representing a growth of approximately 23.4%[335]. - Research and Development expenses for Powerbridge were approximately 2.78millioninfiscalyear2020,anincreasefrom2.78 million in fiscal year 2020, an increase from 2.16 million in 2019, reflecting a growth of about 28.5%[342]. - Sales and marketing expenses for Powerbridge were approximately 2.7millioninfiscalyear2020,representing10.02.7 million in fiscal year 2020, representing 10.0% of total revenues, compared to 17.7% in 2019[339]. Market Opportunities - The global trade management software market size was 334.5 million in 2019 and is expected to grow to 416.23millionby2024[239].Theblockchaintechnologymarketsizesurpassed416.23 million by 2024[239]. - The blockchain technology market size surpassed 488 million in 2018 and is predicted to grow at more than 69% CAGR between 2019 and 2025[239]. - The company plans to expand into international markets by collaborating with Chinese organizations involved in the Belt and Road Initiative, which will help mitigate risks and reduce costs[249]. - The company intends to increase market penetration by leveraging its deep domain knowledge and building strategic partnerships with government and corporate organizations[248]. Technology and Innovation - The company intends to leverage emerging technologies such as big data, artificial intelligence, and Internet of Things to enhance its core technology capabilities[233]. - The company aims to leverage big data technologies to process and analyze large volumes of global trade transaction data, enhancing its service offerings[324]. - Powerbridge's IoT applications facilitate efficient monitoring and control of trade-related vehicles and containers, improving operational efficiency at checkpoints[331]. - The BaaS platform is designed to provide high scalability and performance, utilizing smart contracts for automated transaction processing[318]. Product and Service Development - The company has begun offering Powerbridge BaaS Services since June 2019, targeting limited government customers and generating limited revenue[230]. - Revenue from subscription services generated from Powerbridge SaaS Services represented 3.3% of total revenue in fiscal 2020[234]. - The company introduced Powerbridge SaaS Services in 2016, designed to provide significant benefits such as lower operational costs and faster processing times for global trade[251]. - The Powerbridge BaaS Services aim to provide significant improvements in workflow performance and reduce document handling through blockchain technology[293]. Customer Base and Relationships - The company has a solid customer base that includes global trade businesses, government agencies, and logistics service providers, enabling cross-selling opportunities[241]. - The company plans to increase revenue by leveraging existing customer relationships and identifying new use cases for its global trade software applications and technology services[247]. Research and Development - As of the date of the annual report, the company had a total of 236 full-time employees, with 106 in research and development[237]. - Powerbridge's R&D team consists of 106 full-time personnel, focusing on continuous innovation and rapid delivery of high-quality products[342]. Legal and Regulatory Environment - The company is not currently a party to any legal proceedings that would have a material adverse effect on its business[358]. - The company has entered into comprehensive confidentiality agreements with management and consultants to protect its intellectual property[349]. - The New M&A Rule mandates that offshore special purpose vehicles must obtain CSRC approval before listing on overseas exchanges[377]. Operational Aspects - The company maintains its headquarters in Zhuhai, China, with approximately 1,200 square meters of office space[352]. - The company does not own any real property and leases all of its facilities[352]. - The company has not experienced any labor disputes and none of its employees are represented by a labor union[356].