Financial Performance - Total net revenues for the year ended December 31, 2022, were 1,099,133,representingasignificantincreasefrom653,036 in 2021, marking a growth of 68.2%[276] - Gross profit for 2022 was 868,049,withagrossmarginof79.0511,734 and a margin of 78.4% in 2021[280] - The company reported a loss from operations of 5,892,615for2022,adecreaseof9.16,483,184 in 2021[293] - Net loss for 2022 was 5,645,376,or1.61 per share, compared to a net loss of 7,050,755,or2.88 per share, in 2021[296] - For the year ended December 31, 2022, the company reported a comprehensive loss of 5,830,261,comparedtoacomprehensivelossof7,005,640 for the year ended December 31, 2021, indicating an improvement of approximately 16.8%[299] Revenue Sources - Software sales and maintenance contributed 676,049,accountingfor61.5372,677, or 33.9%[277] - The company formed five new segregated portfolios in 2022, leading to a 126.7% increase in Fund SPC service fees[291] Expenses - Operating expenses surged to 4,548,149in2022,upfrom2,968,900 in 2021, reflecting an increase of 53.2%[282] - Selling and marketing expenses rose dramatically by 232.5% to 1,007,652in2022,primarilyduetoanincreaseinsellingstaff[282]−ResearchanddevelopmentexpensesfortheyearsendedDecember31,2022,2021,and2020were828,869, 744,422,and410,840, respectively[327] Cash Flow and Capital - Cash balance as of December 31, 2022, was approximately 3,825,000,downfrom11,206,000 as of December 31, 2021, reflecting a decrease of 65.8%[302] - Net cash used in operating activities for the year ended December 31, 2022, was 5,590,567,comparedto4,096,506 for the year ended December 31, 2021, indicating an increase of 36.5%[310] - Net cash used in investing activities was 3,544,105fortheyearendedDecember31,2022,comparedto2,593,181 for the year ended December 31, 2021, representing an increase of 36.8%[313] - Net cash provided by financing activities was 1,750,140fortheyearendedDecember31,2022,asignificantdecreasefrom16,471,560 for the year ended December 31, 2021[314] Regulatory and Other Income - Other income netted 247,239in2022,aturnaroundfromanexpenseof567,571 in 2021, largely due to increased interest income and reduced impairment losses[294] - The company incurred regulatory fees of 516,234fortheyearendedDecember31,2022,comparedto0 in the previous year, primarily due to a fine related to a settlement with FINRA[298] - The company experienced a foreign currency translation loss of 184,885fortheyearendedDecember31,2022,comparedtoagainof45,115 for the year ended December 31, 2021[297] - The unrealized foreign currency translation gain for the year ended December 31, 2022, was approximately 185,000,comparedtoalossofapproximately39,000 for the year ended December 31, 2021[301] Financing Activities - The company raised approximately 14,637,200fromaregistereddirectofferingonFebruary22,2021,whichwillbeusedforworkingcapitalandgeneralcorporatepurposes[319]−TheCompanyenteredintoacommonstockpurchaseagreementallowingthesaleofupto5.5 million in shares, with 1,050,000 shares sold for gross proceeds of 1,256,640asofDecember31,2022[321]−TheCompany′sshelfregistrationstatementforupto300 million in securities was declared effective, allowing for the sale of common shares, warrants, debt securities, and units[322] - The Company sold 400,000 shares for 236,000and500,000sharesfor257,500 under separate securities purchase agreements in late 2022[322][323] - A senior convertible promissory note with a principal amount of 40millionwasissued,withapurchasepriceof32 million reflecting a 20% discount[323] - The Company issued 80 million ordinary shares at a conversion price of $0.50 per share following the conversion of the promissory note[324] Currency Impact - The RMB appreciated by 9.2% in fiscal year 2022, following a depreciation of 2.3% in fiscal 2021, impacting the Company's financial results reported in U.S. dollars[429] Indebtedness - There has been no default of any indebtedness nor any arrearage in the payment of dividends[432]
