WeTrade Group(WETG)2023-08-21 16:00Financial Performance - Net income from continuing operations for the three months ended June 30, 2023, was 452,139 for the same period in 2022[11]. - Total service revenue for the three months ended June 30, 2023, was 1,451,459 in the same period last year, representing a decline of approximately 58.4%[11]. - Operating expenses for the three months ended June 30, 2023, were 1,827,438 for the same period in 2022, a decrease of about 55.1%[11]. - The company reported a gross loss of 1,355,510 in the same period last year[11]. - Total comprehensive loss for the three months ended June 30, 2023, was (1,365,792) for the same period in 2022[11]. - As of June 30, 2023, the net loss from operations was 140,177 for the same period in 2022[21]. - The company reported a net loss of 274,871 in the same period of 2022[118]. - Total revenue for the six-month period ended June 30, 2023, was 3,590,411 in the same period of 2022[120]. Assets and Liabilities - Total current assets decreased from 30,741,321, a decline of approximately 13.5%[10]. - Total liabilities decreased from 3,541,531, a reduction of about 21.5%[10]. - Total assets decreased from 42,421,096, a decline of approximately 8.7%[10]. - Accumulated deficits increased from (3,917,104) over the six months ended June 30, 2023[10]. - The total cash and cash equivalents at the end of the period were 20,025,480 at the beginning of the period[21]. - Loan receivables increased significantly to 1,614,841 as of December 31, 2022[87]. - Cash on hand as of June 30, 2023, was 37,057,176[130]. Revenue and Expenses - The company incurred a cost of revenue of 768,587 in 2022, indicating an increase in expenses related to system development[119]. - General and administrative expenses decreased to 2,619,894 in 2022, a reduction of approximately 42.5%[123]. - Service revenue from non-related parties was 3,302,074 in 2022, reflecting a decline of about 82.8%[120]. YCloud System and Market Strategy - The market for individual micro-business owners is projected to reach 330 million users by the end of 2023[24]. - The YCloud system integrates multiple payment methods, allowing micro-businesses to manage transactions through platforms like Alipay and WeChat[27]. - The company aims to establish global strategic cooperation with various social media platforms through the YCloud system[24]. - The YCloud system provides AI-driven recommendations and management tools to enhance user experience and operational efficiency[30]. - The company has established trial operations in Hong Kong, expanding its market presence beyond mainland China[24]. - The total order amount processed through the YCloud system is directly entered into the platform for fund collection, enhancing financial management for users[27]. - The company plans to shift its SAAS, blockchain, and WT Pay services from the PRC to overseas markets in 2023[120]. Internal Controls and Compliance - The company conducted an evaluation of its internal control over financial reporting as of June 30, 2023, and concluded that it did not maintain effective internal control due to material weaknesses identified[138]. - Management identified material weaknesses related to internal audit functions and lack of segregation of duties within accounting functions[139]. - The company believes that its financial statements and other information presented are materially correct despite the identified weaknesses[138]. - There were no changes in internal control over financial reporting that materially affected the company's controls during the most recently completed fiscal quarter[142]. - Management plans to implement procedures to assure proper transaction initiation, asset custody, and transaction recording by separate individuals[140]. Stock and Share Information - The total issued and outstanding shares of the company's common stock decreased from 195,057,503 to 1,054,364 shares following a 1 for 185 Reverse Stock Split approved on June 9, 2023[146]. - The Reverse Stock Split aims to help the company regain compliance with Nasdaq's minimum bid price requirement of $1.00 per share[147]. - The weighted-average common shares outstanding decreased to 172,526,771 from 231,052,498 year-over-year[62]. Accounting Policies - The company applies ASC 606 for revenue recognition, which involves a five-step model for recognizing revenue[39]. - The company has adopted ASU 2016-02 for leases, requiring recognition of operating and financing lease liabilities on the balance sheet[53]. - The company does not anticipate any material impact from recently issued accounting pronouncements that are not yet effective[135].