Financial Performance - Total revenues for the three months ended June 30, 2023, were approximately 0 for the same period in 2022, representing a significant increase due to the acquisition of Highlight Media and the start of operation of AI Catalysis[166] - Gross profit for the three months ended June 30, 2023, was approximately 0 for the same period in 2022, attributed to the same acquisitions[168] - Loss from operations for the three months ended June 30, 2023, was approximately 19.47 million or 99.2% from the loss of 155,498, a decrease of approximately 20.37 million for the same period in 2022[172] - Total revenues for the six months ended June 30, 2023, were approximately 0 for the same period in 2022, driven by the acquisition of Highlight Media and the start of operation of AI Catalysis[173] - Gross profit for the six months ended June 30, 2023, was approximately 0 for the same period in 2022, due to the same acquisitions[176] - Loss from operations for the six months ended June 30, 2023, was approximately 19.51 million or 99.1% from the loss of 176,807, a decrease of approximately 19.38 million for the same period in 2022[179] Cash Flow and Working Capital - As of June 30, 2023, the company's net working capital was approximately 1.70 million for the six months ended June 30, 2023, compared to approximately 8.72 million for the six months ended June 30, 2023, primarily due to the issuance of common stock[203] - The company had cash of 389,108 as of December 31, 2022[199] - The company expects to continue generating cash flow from operations through acquisitions and loans from related parties in the next twelve months[197] Business Developments - Highlight Media has sold more than 200,000 copies of various best-selling books in corporate history, finance, and economics since 2018[144] - AI Catalysis Corp. plans to enter the livestreaming market with a focus on e-commerce and interactive gaming, utilizing AI digital human technology[148] - The company has posted 195 original articles on its financial self-media platform since 2019, accumulating over 10,000 followers[146] - The company terminated its business relationship with Wuge Network Games Co., Ltd. on September 28, 2022, ceasing to consolidate its financial results[150] - The company appointed new executives on April 21, 2023, including Mr. Xiao Jian Wang as CEO and Mr. Zihao Zhao as CFO[152] Offerings and Expenses - The net proceeds from the recent registered direct offering are approximately 8.35 per share[154] - The Placement Agent received a total cash fee equal to 7.0% of the aggregate gross proceeds from the offering, along with a non-accountable expense allowance of 1%[157] - Operating expenses decreased by approximately 19.62 million for the three months ended June 30, 2022, to approximately 19.32 million, from approximately $19.69 million for the same period in 2022, primarily due to the reduction of impairment of prepayments[177] Risks and Accounting - The company does not anticipate that recently issued accounting standards will have a material effect on its consolidated financial statements[196] - The company is exposed to credit risk primarily from cash and accounts receivable, which are monitored through credit approvals and limits[205] - The company is also exposed to liquidity risk and may seek short-term funding from financial institutions or owners when necessary[207] - The company has concluded that it is the principal in its revenue arrangements, reporting revenues and costs on a gross basis[193] Impact of COVID-19 - The COVID-19 pandemic did not have a material impact on the company's business or results of operation during the six months ended June 30, 2023[164]
GD Culture Group(GDC) - 2023 Q2 - Quarterly Report