2024 Q1 Form 10-Q Financial Statement

#000121390024045190 Filed on May 20, 2024

View on sec.gov

Income Statement

Concept 2024 Q1 2023 Q4 2023 Q1
Revenue $5.123M $3.909M $3.394M
YoY Change 50.94% 276.81% -2.09%
Cost Of Revenue $3.172M $2.879M $2.186M
YoY Change 45.07% 864.69% 30.26%
Gross Profit $1.951M $1.030M $1.208M
YoY Change 61.58% 39.39% -32.46%
Gross Profit Margin 38.09% 26.35% 35.58%
Selling, General & Admin $3.688M $5.676M $73.61K
YoY Change 4910.13% 22.64% -98.02%
% of Gross Profit 189.01% 551.02% 6.1%
Research & Development $645.00 $1.100K $208.7K
YoY Change -99.69% -99.84% -51.8%
% of Gross Profit 0.03% 0.11% 17.28%
Depreciation & Amortization $66.86K $130.2K $73.61K
YoY Change -9.18% 97.77% 29.19%
% of Gross Profit 3.43% 12.64% 6.1%
Operating Expenses $4.483M $5.740M $3.836M
YoY Change 16.86% 6.87% -9.0%
Operating Profit -$2.532M -$4.710M -$2.629M
YoY Change -3.68% 1.68% 8.27%
Interest Expense $281.1K $440.4K $452.6K
YoY Change -37.91% -4.9% 166.01%
% of Operating Profit
Other Income/Expense, Net -$1.437M -$9.705M $406.9K
YoY Change -453.16% -1243.43% -10025.56%
Pretax Income -$3.969M -$28.13M -$2.222M
YoY Change 78.64% 398.48% -11.5%
Income Tax -$69.74K $25.67K
% Of Pretax Income
Net Earnings -$3.327M -$27.60M -$2.247M
YoY Change 48.04% 405.2%
Net Earnings / Revenue -64.95% -706.0% -66.22%
Basic Earnings Per Share
Diluted Earnings Per Share -$0.17 -$1.85 -$0.15
COMMON SHARES
Basic Shares Outstanding 19.87M shares 14.94M shares 14.65M shares
Diluted Shares Outstanding 19.91M shares 14.86M shares

Balance Sheet

Concept 2024 Q1 2023 Q4 2023 Q1
SHORT-TERM ASSETS
Cash & Short-Term Investments $14.89M $19.99M $17.34M
YoY Change -14.14% -34.94% -68.72%
Cash & Equivalents $14.89M $19.03M $19.80M
Short-Term Investments $0.00 $959.0K $1.177M
Other Short-Term Assets $18.39M $3.838M $15.23M
YoY Change 20.79% -17.83% 544.06%
Inventory $503.8K
Prepaid Expenses $9.823M $29.69K
Receivables $4.619M $5.718M $4.343M
Other Receivables $101.1K $24.94M $5.508M
Total Short-Term Assets $53.62M $54.49M $65.19M
YoY Change -17.76% -16.23% -11.09%
LONG-TERM ASSETS
Property, Plant & Equipment $4.608M $5.861M $4.409M
YoY Change 4.52% 32.69% 37.72%
Goodwill $13.98M
YoY Change
Intangibles $574.5K $589.0K $503.8K
YoY Change 14.04% 13.69%
Long-Term Investments
YoY Change
Other Assets
YoY Change
Total Long-Term Assets $6.295M $6.450M $19.87M
YoY Change -68.32% -67.7% 2.18%
TOTAL ASSETS
Total Short-Term Assets $53.62M $54.49M $65.19M
Total Long-Term Assets $6.295M $6.450M $19.87M
Total Assets $59.91M $60.94M $85.06M
YoY Change -29.57% -28.32% -8.31%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $2.245M $3.320M $1.633M
YoY Change 37.47% -7.87% 2041462.5%
Accrued Expenses $2.973M $3.621M $1.854M
YoY Change 60.33% 63.53% 93.33%
Deferred Revenue $53.49K $306.3K
YoY Change
Short-Term Debt $1.123M $0.00 $3.638M
YoY Change -69.14% -21.71%
Long-Term Debt Due $1.101M
YoY Change
Total Short-Term Liabilities $17.54M $17.73M $20.36M
YoY Change -13.84% -4.54% 98.79%
LONG-TERM LIABILITIES
Long-Term Debt $0.00 $0.00 $0.00
YoY Change -100.0%
Other Long-Term Liabilities $746.3K $797.3K $677.4K
YoY Change 10.17% 4.78% -80.48%
Total Long-Term Liabilities $746.3K $797.3K $677.4K
YoY Change 10.17% 4.78% -81.49%
TOTAL LIABILITIES
Total Short-Term Liabilities $17.54M $17.73M $20.36M
Total Long-Term Liabilities $746.3K $797.3K $677.4K
Total Liabilities $18.29M $16.96M $21.04M
YoY Change -13.07% -12.28% 60.16%
SHAREHOLDERS EQUITY
Retained Earnings -$189.3M -$185.9M -$154.5M
YoY Change 22.53% 22.1%
Common Stock $236.5M $233.9M $14.65K
YoY Change 1614603.5% 1596983.38%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $43.19M $43.98M $65.37M
YoY Change
Total Liabilities & Shareholders Equity $59.91M $60.94M $85.06M
YoY Change -29.57% -28.32% -8.31%

Cashflow Statement

Concept 2024 Q1 2023 Q4 2023 Q1
OPERATING ACTIVITIES
Net Income -$3.327M -$27.60M -$2.247M
YoY Change 48.04% 405.2%
Depreciation, Depletion And Amortization $66.86K $130.2K $73.61K
YoY Change -9.18% 97.77% 29.19%
Cash From Operating Activities -$7.509M -$10.35M -$10.44M
YoY Change -28.05% 215.97% 1534.21%
INVESTING ACTIVITIES
Capital Expenditures $145.7K $311.1K $68.97K
YoY Change 111.26% -41.27% -111.72%
Acquisitions $275.6K
YoY Change
Other Investing Activities $948.3K -$5.354M $225.0K
YoY Change 321.54% -787.52% -77.5%
Cash From Investing Activities $802.6K -$5.565M $156.0K
YoY Change 414.51% -2335.09% -62.11%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net $2.581M
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities $2.549M 1.076M 0.000
YoY Change -100.0%
NET CHANGE
Cash From Operating Activities -7.509M -10.35M -10.44M
Cash From Investing Activities 802.6K -5.565M $156.0K
Cash From Financing Activities $2.549M 1.076M 0.000
Net Change In Cash -$4.146M -14.84M -$9.935M
YoY Change -58.27% 390.24% -398.23%
FREE CASH FLOW
Cash From Operating Activities -$7.509M -$10.35M -$10.44M
Capital Expenditures $145.7K $311.1K $68.97K
Free Cash Flow -$7.655M -$10.66M -$10.51M
YoY Change -27.14% 180.16% 20748.76%

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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>1. CORPORATE INFORMATION</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Future FinTech Group Inc. (the “Company”) is a holding company incorporated under the laws of the State of Florida. The Company historically engaged in the production and sale of fruit juice concentrates (including fruit purees and fruit juices), fruit beverages (including fruit juice beverages and fruit cider beverages) in the PRC. Due to drastically increased production costs and tightened environmental laws in China, the Company had transformed its business from fruit juice manufacturing and distribution to financial technology related service businesses. The main business of the Company includes supply chain financing services and trading in China, asset management business in Hong Kong and cross-border money transfer service in UK. The Company also expanded into brokerage and investment banking business in Hong Kong and cryptocurrency mining farm in the U.S. The Company had a contractual arrangements with a VIE E-Commerce Tianjin in China, which has generated minimal revenue and business since 2021 due to the negative impact caused by COVID-19. The Company started the process to close it down in November 2023 and completed deregistration and dissolution of the VIE with local authority on March 7, 2024.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">   </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On February 27, 2023, Future FinTech (Hong Kong) Limited (“Buyer”), a company incorporated in Hong Kong and a wholly owned subsidiary of Future FinTech Group Inc. (the “Company”) entered into a Share Transfer Agreement (the “Agreement”) with Alpha Financial Limited, a company incorporated in Hong Kong (“Seller”) and sole owner and shareholder of Alpha International Securities (Hong Kong) Limited, a company incorporated in Hong Kong (“Alpha <span style="-sec-ix-hidden: hidden-fact-24">HK”) and Alpha Information Service (Shenzhen) Co., Ltd., a</span> company incorporated in China (“Alpha SZ”). Alpha HK holds Type 1 ’Securities Trading’, Type 2 ‘Futures Contract Trading’ and Type 4 ’Securities Consulting’ financial licenses issued by the Hong Kong Securities and Futures Commission. Alpha SZ provides technical support services to Alpha HK. The share transfer transaction was approved by the Securities and Futures Commission of Hong Kong (“SFC”) in August 2023 and the acquisition was closed on November 7, 2023. The names of the two entities were also changed to ‘FTFT International Securities and Futures Limited’ and ‘FTFT Information Services (Shenzhen) Co. Ltd.’ in November 2023, respectively.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company’s business and operations are principally conducted by its subsidiaries in the PRC and Hong Kong.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On January 26, 2023, the Company filed with the Florida Secretary of State’s office Articles of Amendment (the “Amendment”) to amend its Second Amended and Restated Articles of Incorporation, as amended (“Articles of Incorporation”). As a result of the Amendment, the Company has authorized and approved a 1-for-5 reverse stock split of the Company’s authorized shares of common stock from 300,000,000 shares to 60,000,000 shares, accompanied by a corresponding decrease in the Company’s issued and outstanding shares of common stock (the “Reverse Stock Split”). The common stock continues to be $0.001 par value. The Company rounded up to the next full share of the Company’s shares of common stock any fractional shares that resulted from the Reverse Stock Split and no fractional shares was issued in connection with the Reverse Stock Split and no cash or other consideration was paid in connection with any fractional shares that would otherwise have resulted from the Reverse Stock Split. No changes were made to the number of preferred shares of the Company which remain as 10,000,000 preferred shares as authorized but not issued. The amendment to the Articles of Incorporation of the Company took effect on February 1, 2023. The Reverse Stock Split and Amendment were authorized and approved by the Board of Directors of the Company without shareholders’ approval, pursuant to 607.10025 of the Florida Business Corporation Act of the State of Florida.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The reverse stock split would be reflected in our March 31, 2024 and December 31, 2023 statements of changes in stockholders’ equity, and in per share data for all periods presented.</span></p>
CY2023Q1 us-gaap Preferred Stock Share Subscriptions
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CY2024Q1 us-gaap Income Loss From Discontinued Operations Net Of Tax Attributable To Reporting Entity
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CY2024Q1 ftft Net Incomeloss From Discontinuing Operations Share
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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Uses of Estimates in the Preparation of Financial Statements </b></span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company’s condensed consolidated financial statements have been prepared in accordance with US GAAP and this requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and reported amounts of revenue and expenses during the reporting period. The significant areas requiring the use of management estimates include, but not limited to, the allowance for doubtful receivable, estimated useful life and residual value of property, plant and equipment, impairment of long-lived assets provision for staff benefit, recognition and measurement of deferred income taxes and valuation allowance for deferred tax assets. Although these estimates are based on management’s knowledge of current events and actions management may undertake in the future, actual results may ultimately differ from those estimates and such differences may be material to our condensed consolidated financial statements.  </span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p>
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645437 usd
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IncomelossAvailableToCommonStockholdersFromDiscontinuingOperationsShare
19867249 shares
CY2024Q1 us-gaap Income Loss From Discontinued Operations Net Of Tax Per Basic Share
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CY2024Q1 us-gaap Incremental Common Shares Attributable To Call Options And Warrants
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CY2024Q1 us-gaap Income Loss From Continuing Operations Per Diluted Share
IncomeLossFromContinuingOperationsPerDilutedShare
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CY2024Q1 ftft Diluted Income Per Share Is Calculated By Taking Net Loss Divided By The Diluted Weighted Averages
DilutedIncomePerShareIsCalculatedByTakingNetLossDividedByTheDilutedWeightedAverages
19909357 shares
CY2024Q1 us-gaap Income Loss From Discontinued Operations Net Of Tax Per Diluted Share
IncomeLossFromDiscontinuedOperationsNetOfTaxPerDilutedShare
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IncomeLossFromContinuingOperationsBeforeIncomeTaxesForeign
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CY2023Q1 ftft Net Incomeloss From Continued Operations Share
NetIncomelossFromContinuedOperationsShare
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IncomeLossFromDiscontinuedOperationsNetOfTaxAttributableToReportingEntity
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NetIncomelossFromDiscontinuingOperationsShare
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NetIncomeLossFromContinuingOperationsAvailableToCommonShareholdersBasic
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CY2023Q1 ftft Loss Available To Common Stockholders From Continuing Operations Share
LossAvailableToCommonStockholdersFromContinuingOperationsShare
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IncomeLossFromContinuingOperationsPerBasicShare
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CY2023Q1 us-gaap Net Income Loss From Discontinued Operations Available To Common Shareholders Basic
NetIncomeLossFromDiscontinuedOperationsAvailableToCommonShareholdersBasic
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CY2023Q1 ftft Incomeloss Available To Common Stockholders From Discontinuing Operations Share
IncomelossAvailableToCommonStockholdersFromDiscontinuingOperationsShare
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IncomeLossFromDiscontinuedOperationsNetOfTaxPerBasicShare
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NetIncomeLossFromContinuingOperationsAvailableToCommonShareholdersDiluted
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CY2023Q1 ftft Diluted Loss Per Share Is Calculated By Taking Net Loss Divided By The Diluted Weighted Average Shares
DilutedLossPerShareIsCalculatedByTakingNetLossDividedByTheDilutedWeightedAverageShares
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CY2023Q1 us-gaap Income Loss From Continuing Operations Per Diluted Share
IncomeLossFromContinuingOperationsPerDilutedShare
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CY2023Q1 us-gaap Net Income Loss From Discontinued Operations Available To Common Shareholders Diluted
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CY2024Q1 us-gaap Cash Uninsured Amount
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CY2024Q1 us-gaap Cash Uninsured Amount
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Deposits
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CY2024Q1 us-gaap Loans And Leases Receivable Related Parties Description
LoansAndLeasesReceivableRelatedPartiesDescription
July 15, 2022 to July 14, 2024
CY2023Q2 us-gaap Proceeds From Principal Repayments On Loans And Leases Held For Investment
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CY2024Q1 us-gaap Supplies
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