MMTEC, Inc. Publicizes Half 12 months 2022 Unaudited Monetary Outcomes

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BEIJING, Sept. 9, 2022 /PRNewswire/ — MMTEC, Inc. (NASDAQ: MTC) (“MMTEC”, “we”, “our” or the “Firm”), a China primarily based know-how firm that gives entry to the U.S. monetary markets, at the moment introduced its unaudited monetary outcomes for the six months ended June 30, 2022.

First Half 2022 Abstract

  • Revenues elevated by 44.64% from $507,048 to $733,400 on account of the rise in software program gross sales income through the six months ended June 30, 2022.

  • Gross revenue elevated by 41.53% to $622,910 as in comparison with $440,140 for a similar interval in 2021, whereas the gross revenue margin was 84.93%, as in comparison with 86.80% for a similar interval in 2021.

  • Loss from operations was $2,927,617 for the six months ended June 30, 2022, as in comparison with $1,835,262 for a similar interval of 2021. The rise was primarily attributable to the rise in working bills. We elevated the scale of and stage of spending on assist staff for our funding banking enterprise, fund administration providers enterprise and software program gross sales enterprise. We accrued litigation loss contingency of $450,000 to settle with FINRA.

  • Web loss was $2,887,201 for the six months ended June 30, 2022, as in comparison with internet lack of $2,367,612 for a similar interval of 2021.

  • Loss per share each on a primary and absolutely diluted foundation have been $0.92 for the six months ended June 30, 2022, as in comparison with loss per share on a primary and absolutely diluted foundation of $0.99 for the six months ended June 30, 2021.

Xiangdong Wen, the Firm’s Chief Govt Officer and Chairman, commented, “Our income elevated to $733,400 for the primary half of 2022 on account of our elevated gross sales pressure in our software program gross sales enterprise. The corporate ramped up funding banking staff spending. Loss from operations elevated considerably on account of the rise in dimension of, and stage of spending on, our assist groups for our funding banking and fund administration providers companies.”

Mr. Wen continued, “As for the Firm’s future technique, we are going to actively promote cooperative relationships with Chinese language firms listed within the US and supply them with financing, mergers and acquisitions, and monetary advisory providers. As well as, we are going to try to additional enhance the development of funding banking groups, present high-quality providers, and proceed to increase the market.”

Working Outcomes for Six Months Ended June 30, 2022

Revenues

We derive our revenues from: (1) knowledge providers and associated technical assist (the “Market knowledge providers”); (2) software program gross sales and associated technical assist, that are primarily software program to facilitate inventory buying and selling and clearing (the “Software program gross sales”); (3) commissions by way of buyer securities transactions (“Commissions”); and (4) fund administration providers because the administrator of the fund (“Fund administration providers”).

The next tables illustrate the Firm’s income by income kind:

  For the six months Ended June 30,

2021

2022

  US$

  US$

 Market knowledge providers

85,635

71,928

 Software program gross sales

646,052

 Fund administration services

79,610

12,145

 Commissions

341,803

3,275

  Whole revenues

507,048

733,400

 

Price of Income

Price of income consists primarily of inner labor value and associated advantages, and different overhead prices which can be straight attributable to providers supplied.

Price of revenues elevated by $43,582, or 65.14%, to $110,490 for the six months ended June 30, 2022 from $66,908 for a similar interval final 12 months. The rise in value of revenues is straight linked to the 100% enhance of software program gross sales revenues. Income from commissions is introduced as internet income with no related value of revenues.

Gross Revenue and Gross Margin

Gross revenue was $622,910 for the six months ended June 30, 2022, representing gross margin of 84.93%, as in comparison with 86.80% for a similar interval in 2021.

Working Bills

Throughout the six months ended June 30, 2022 and 2021, respectively, working bills included promoting and advertising, payroll and associated advantages, skilled charges, and different normal and administrative bills.

Promoting and Advertising Prices

All prices associated to promoting and advertising are expensed as incurred. Promoting and advertising prices elevated by $790,027, or 813.24%, to $887,173 for the six months ended June 30, 2022 from $97,146 for a similar interval final 12 months.

Payroll and Associated Advantages

Payroll and associated advantages totaled $1,022,931 for the six months ended June 30, 2022, as in comparison with $669,299 for the six months ended June 30, 2021, a rise of $353,632.

Skilled Charges

For the six months ended June 30, 2022, skilled charges primarily consisted of audit charges, authorized service charges, monetary consulting charges and different charges related to being a public firm. Skilled charges totaled $696,556 for the six months ended June 30, 2022, as in comparison with $837,457 for the six months ended June 30, 2021, a lower of $140,901.

Different Normal and Administrative Bills

For the six months ended June 30, 2022 and 2021, different normal and administrative bills have been $943,867 and $671,500, respectively. The rise in different normal and administrative expense was primarily attributable to the rise of $450,000 in litigation loss contingency, which represented an estimated fantastic of $450,000 from FINRA investigation; this was partially offset by the lower in coaching price, laptop and web expense, and ETC clearing prices.

Loss from Operations

For six months ended June 30, 2022, loss from operations amounted to $2,927,617, as in comparison with loss from operations of $1,835,262 for the six months ended June 30, 2021, a rise of $1,092,355, or 59.52%, which was primarily attributable to the rise in promoting and advertising prices, payroll and associated advantages and litigation loss contingency. On account of the enlargement of the Firm’s total enterprise scale, the Firm elevated the scale of and stage of spending on assist staff for funding banking enterprise, fund administration providers enterprise.

Different Earnings (Expense)

Different earnings (expense) contains curiosity earnings from financial institution deposits, different earnings, impairment loss on long-term funding, and overseas forex transaction achieve (loss). Different earnings totaled $40,416 for six months ended June 30, 2022, as in comparison with different expense of $532,350 for six months ended June 30, 2021, a change of $572,766, which was primarily attributable to the lower in impairments of long-term funding.

Earnings Taxes

We didn’t have any earnings taxes expense for the six months ended June 30, 2022 and 2021 since we didn’t generate any taxable earnings in these two durations.

Web Loss

On account of the elements described above, our internet loss was $2,887,201, or $0.92 per share (primary and diluted), for the six months ended June 30, 2022. Our internet loss was $2,367,612, or $0.99 per share (primary and diluted), for the six months ended June 30, 2021.

International Forex Translation Adjustment

Our reporting forex is the U.S. greenback. The purposeful forex of our mum or dad firm, MMTEC INC., MM Future Know-how Restricted, MM Fund SPC, HC Securities (HK) Restricted, MMBD Buying and selling Restricted, MMBD Funding Advisory Firm Restricted, Fundex SPC and MM International Securities, INC, are the U.S. greenback, and the purposeful forex of Gujia (Beijing) Know-how Co., Ltd., is the Chinese language Renminbi (“RMB”). The monetary statements of our subsidiaries whose purposeful forex is the RMB are translated to U.S. {dollars} utilizing interval finish charges of trade for property and liabilities, common fee of trade for income and bills and money flows, and at historic trade charges for fairness. Web good points and losses ensuing from overseas trade transactions are included within the outcomes of operations. On account of overseas forex translations, that are a non-cash adjustment, we reported a overseas forex translation lack of $55,780 and a overseas forex translation achieve of $23,720 for the six months ended June 30, 2022 and 2021, respectively. This non-cash loss had the impact of accelerating our reported complete loss.

Complete Loss

On account of our overseas forex translation adjustment, we had complete lack of $2,942,981 and $2,343,892 for the six months ended June 30, 2022 and 2021, respectively.

Monetary Situation

As of June 30, 2022, the Firm had money of $7,023,053, in comparison with $11,206,220 as of December 31, 2021. Whole working capital was $9,708,668 as of June 30, 2022, in comparison with working capital of $12,720,191 as of December 31, 2021.

Web money utilized in working actions for the six months ended June 30, 2022 was $4,153,241, in comparison with $1,431,474 for a similar interval final 12 months. Web money utilized in investing actions was $6,036 for the six months ended June 30, 2022, in comparison with $8,806 for a similar interval final 12 months. Web money supplied by financing actions was $nil for the six months ended June 30, 2022, in comparison with $14,637,200 for a similar interval of final 12 months.

As an entity that operates within the monetary business in China and the USA, the Firm finds itself topic to the challenges posed by the continuing rigidity within the commerce relations between the nations.

Shares Approved and Issued

The Firm is permitted to difficulty 50,000,000 shares with a par worth of $0.01 per share. This takes into consideration the 1-for-10 reverse inventory cut up on the Firm’s widespread inventory that was effectuated on July 13, 2022.

There have been 3,137,001 widespread shares issued and excellent as of June 30, 2022 and December 31, 2021. This takes into consideration the 1-for-10 reverse inventory cut up on the Firm’s widespread inventory that was effectuated on July 13, 2022.

Authorized Proceedings

Within the regular course of enterprise, MM International is engaged in varied buying and selling and brokerage actions on a principal and company foundation by way of a clearing dealer. As a regulated FINRA broker-dealer, MM International is topic to regulatory buying and selling inquiries and investigations to find out whether or not any violations of federal securities or FINRA guidelines might have occurred. MM International has responded to FINRA inquires and is topic to an investigation carried out by FINRA. In June 2022, FINRA’s Division of Enforcement concluded its investigation and alleges that there have been violations of the federal securities legal guidelines and FINRA guidelines. The Firm intends to settle and as of September 9, 2022, the settlement negotiations are nonetheless in course of. The Firm assesses the chance of adversarial final result to the matter, in addition to the vary of possible losses to the extent losses are fairly estimable. The Firm information accruals to the extent that administration concludes a loss is possible and the monetary influence, ought to an adversarial final result happen, is affordable estimable. As of June 30, 2022, the Firm accrued a legal responsibility of $450,000 that represents the full estimated quantity the Firm expects to pay to settle this matter.

Apart from MM International, we’re at the moment not concerned in any authorized proceedings; nor are we conscious of any claims that would have a cloth adversarial impact on our enterprise, monetary situation, outcomes of operations or money flows.

Current Developments

On July 13, 2022, the Firm applied a 1-for-10 reverse inventory cut up. On account of the reverse cut up, on July 27, 2022, the Firm obtained a letter from the Itemizing {Qualifications} Division of The Nasdaq Inventory Market LLC (“NASDAQ”) confirming that the Firm had regained compliance with NASDAQ’s minimal bid value requirement underneath Itemizing Rule 5550(a)(2). The Firm regained compliance with NASDAQ’s necessities when the closing bid value for the Firm’s widespread inventory was at or above $1.00 for 10 consecutive enterprise days.

On August 10, 2022, Firm entered into a standard inventory buy settlement, which was subsequently amended and restated on August 12, 2022 (the “Buy Settlement”), with VG Grasp Fund SPC (“VG”). Topic to specified phrases and circumstances, the Firm might, infrequently through the time period of the Buy Settlement, promote to VG as much as the lesser of (a) $6.0 million of shares of widespread inventory, par worth $0.01 per share, and (b) the utmost quantity of securities the Firm is permitted to difficulty underneath its present shelf registration assertion, which was declared efficient by the SEC on July 21, 2020. In consideration for VG’s entry into the Buy Settlement, the Firm issued 53,334 shares of widespread inventory to VG on or about August 17, 2022.

Comply with on providing

On August 24, 2022, the Firm’s shelf registration assertion for as much as $300,000,000 in securities was declared efficient by the SEC. Below this shelf registration assertion, we might supply and promote infrequently as much as an mixture of $300,000,000 of widespread shares (issued individually or upon train of warrants), warrants, debt securities, and models of the Firm’s securities.

Discover

Rounding quantities and percentages: Sure quantities and percentages included on this press launch have been rounded for ease of presentation. Share figures included on this press launch haven’t in all instances been calculated on the idea of such rounded figures, however on the idea of such quantities previous to rounding. Because of this, sure share quantities on this press launch might range from these obtained by performing the identical calculations utilizing the figures within the monetary statements. As well as, sure different quantities that seem on this press launch might not sum resulting from rounding.

About MMTEC, Inc.

Headquartered in Beijing, China, we primarily give attention to funding banking and asset administration, offering clients with one-stop and all-round monetary providers. Along with conventional incubation and funding in home and overseas firms listed in the USA, we additionally launched the HiFund platform to draw world institutional and particular person traders to put money into essentially the most aggressive Chinese language property.

Extra details about the Firm may be discovered at: www.haisc.com.

Ahead-Trying Statements

This press launch comprises forward-looking statements as outlined by the Personal Securities Litigation Reform Act of 1995. Ahead-looking statements embrace statements regarding plans, goals, objectives, methods, future occasions or efficiency, and underlying assumptions and different statements which can be apart from statements of historic details. When the Firm makes use of phrases akin to “might”, “will”, “intend”, “ought to”, “imagine”, “count on”, “anticipate”, “venture”, “estimate” or related expressions that don’t relate solely to historic issues, it’s making forward-looking statements. Particularly, the Firm’s statements relating to its continued progress, enterprise outlook, and different related statements are forward-looking statements. Ahead-looking statements aren’t ensures of future efficiency and contain dangers and uncertainties that will trigger the precise outcomes to vary materially from the Firm’s expectations mentioned within the forward-looking statements. These statements are topic to uncertainties and dangers together with, however not restricted to, the next: the Firm’s objectives and methods; the Firm’s future enterprise improvement; product and repair demand and acceptance; adjustments in know-how; financial circumstances; repute and model; the influence of competitors and pricing; authorities rules; fluctuations on the whole financial and enterprise circumstances in China and assumptions underlying or associated to any of the foregoing and different dangers contained in stories filed by the Firm with the Securities and Trade Fee, together with the Firm’s most just lately filed Annual Report on Type 20-F and its subsequent filings. For these causes, amongst others, traders are cautioned to not place undue reliance upon any forward-looking statements on this press launch. Further elements are mentioned within the Firm’s filings with the U.S. Securities and Trade Fee, which can be found for evaluate at www.sec.gov. The Firm undertakes no obligation to publicly revise these forward-looking statements to mirror occasions or circumstances that come up after the date hereof.

 

UNAUDITED CONDENSED CONSOLIDATED FINANCIAL DATA

 

 

MMTEC, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(IN U.S. DOLLARS)

As of

June 30,
2022

December 31,
2021

(UNAUDITED)

ASSETS

CURRENT ASSETS:

Money and money equivalents

$

7,023,053

$

11,206,220

Accounts receivable, internet

466,812

194,856

Mortgage receivable, internet

2,100,000

2,100,000

Safety deposits – present portion

6,947

102,326

Pay as you go bills and different present property

1,350,400

245,021

Whole Present Property

10,947,212

13,848,423

 NON-CURRENT ASSETS:

Safety deposits – non-current portion

163,572

29,460

Property and tools, internet

222,302

267,433

Working lease right-of-use property

1,100,379

442,185

Whole Non-current Property

1,486,253

739,078

Whole Property

$

12,433,465

$

14,587,501

LIABILITIES AND SHAREHOLDERS’ EQUITY

CURRENT LIABILITIES:

Deferred income

$

$

123,434

Wage payable

234,035

276,356

Accrued liabilities and different payables

699,556

372,168

Working lease liabilities – present

304,953

356,274

Whole Present Liabilities

1,238,544

1,128,232

NON-CURRENT LIABILITIES:

Working lease liabilities – non-current

786,178

107,545

Whole Non-current Liabilities

786,178

107,545

Whole Liabilities

2,024,722

1,235,777

 SHAREHOLDERS’ EQUITY: 

Frequent shares ($0.01 par worth; 50,000,000 shares
licensed; 3,137,001 shares issued and excellent at
June 30, 2022 and December 31, 2021)

31,370

31,370

Further paid-in capital

29,884,600

29,884,600

Accrued deficit

(19,494,855)

(16,607,654)

Accrued different complete earnings (loss)

(12,372)

43,408

Whole Shareholders’ Fairness

10,408,743

13,351,724

Whole Liabilities and Shareholders’ Fairness

$

12,433,465

$

14,587,501

 

 

MMTEC, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(IN U.S. DOLLARS)
(UNAUDITED)

For the six
months Ended

For the six
months Ended

June 30, 2022

June 30, 2021

 REVENUE

$

733,400

$

507,048

 COST OF REVENUE

110,490

66,908

 GROSS PROFIT

622,910

440,140

 OPERATING EXPENSES:

Promoting and advertising

887,173

97,146

Normal and administrative

Payroll and associated advantages

1,022,931

669,299

Skilled charges

696,556

837,457

Different normal and administrative bills

943,867

671,500

Whole Working Bills

3,550,527

2,275,402

 LOSS FROM OPERATIONS

(2,927,617)

(1,835,262)

 OTHER INCOME (EXPENSE):

Curiosity earnings

19,663

526

Impairment loss on long-term funding

(583,497)

Different earnings

2,576

66,940

International forex transaction achieve (loss)

18,177

(16,319)

Whole Different Earnings (Expense)

40,416

(532,350)

 LOSS BEFORE INCOME TAXES

(2,887,201)

(2,367,612)

 INCOME TAXES

 NET LOSS

$

(2,887,201)

$

(2,367,612)

 COMPREHENSIVE LOSS:

NET LOSS

(2,887,201)

(2,367,612)

OTHER COMPREHENSIVE INCOME (LOSS)

 International forex translation changes

(55,780)

23,720

COMPREHENSIVE LOSS

$

(2,942,981)

$

(2,343,892)

 NET LOSS PER COMMON SHARE

Primary and diluted

$

(0.92)

$

(0.99)

 WEIGHTED AVERAGE NUMBER OF
COMMON SHARES OUTSTANDING:

Primary and diluted

3,137,001

2,386,088

 

 

 MMTEC, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(IN U.S. DOLLARS)
(UNAUDITED)

 For the Six
Months Ended

 For the Six Months
Ended

June 30, 2022

June 30, 2021

 CASH FLOWS FROM OPERATING ACTIVITIES:

 Web loss

$

(2,887,201)

$

(2,367,612)

 Changes to reconcile internet loss from operations to

 internet money utilized in working actions:

 Depreciation expense

39,024

14,322

 Impairment loss on long-term funding

583,497

 Noncash lease expense

163,218

168,733

 International forex transaction loss (achieve)

(18,177)

35,464

 Acquire on extinguishment of debt

(41,548)

 Modifications in working property and liabilities:

 Working lease liabilities

(193,925)

(214,724)

 Accounts receivable

(278,617)

(124,368)

 Safety deposits

(41,604)

 Pay as you go bills and different present property

(1,115,439)

516,649

 Deferred income

(121,382)

 Wage payable

(37,390)

(5,695)

 Accrued liabilities and different payables

338,252

3,808

 NET CASH USED IN OPERATING ACTIVITIES

(4,153,241)

(1,431,474)

 CASH FLOWS FROM INVESTING ACTIVITIES:

 Buy of property and tools

(6,036)

(8,806)

 NET CASH USED IN INVESTING ACTIVITIES

(6,036)

(8,806)

 CASH FLOWS FROM FINANCING ACTIVITIES:

 Proceeds from issuance of shares

14,637,200

 NET CASH PROVIDED BY FINANCING
ACTIVITIES

14,637,200

 EFFECT OF EXCHANGE RATE ON CASH AND
CASH EQUIVALENTS

(23,890)

(19,245)

 NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS

(4,183,167)

13,177,675

 CASH AND CASH EQUIVALENTS – starting of
interval

11,206,220

1,425,926

 CASH AND CASH EQUIVALENTS – finish of interval

$

7,023,053

$

14,603,601

 SUPPLEMENTAL DISCLOSURE OF CASH FLOW
INFORMATION:

 Money paid for:

 Curiosity

$

$

 Earnings taxes

$

$

 NON-CASH INVESTING AND FINANCING
ACTIVITIES:

 Remeasurement of the lease liabilities and
right-of-use property resulting from lease modification

$

830,860

$

 

 

For Media Enquiries: 

Jessie Chang
jessie@xgujia.com

Cision

View authentic content material:https://www.prnewswire.com/news-releases/mmtec-inc-announces-half-year-2022-unaudited-financial-results-301621218.html

SOURCE MMTEC, Inc.

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