What changed in Future FinTech Group Inc.'s 10-K — 2023 vs 2024
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Paragraph-level year-over-year comparison of Future FinTech Group Inc.'s 2023 and 2024 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2024 report.
+107 added−97 removedSource: 10-K (2025-04-15) vs 10-K (2024-04-16)
Top changes in Future FinTech Group Inc.'s 2024 10-K
107 paragraphs added · 97 removed · 56 edited across 1 sections
- Item 1C. Cybersecurity+107 / −97 · 56 edited
Item 1C. Cybersecurity
Cybersecurity — threats and controls disclosure
56 edited+51 added−41 removed112 unchanged
Item 1C. Cybersecurity
Cybersecurity — threats and controls disclosure
56 edited+51 added−41 removed112 unchanged
2023 filing
2024 filing
Biggest changeOverall gross margin as a percentage of revenue was 14.02% for the year ended 2023, a decrease of 8.57% compared to 22.59% for the same period of last fiscal year, mainly due to more revenues from the supply chain financing and trading service business which had a lower gross margin comparing to asset management service. 53 Operating Expenses The following table presents consolidated operating expenses and operating expenses as a percentage of revenue for 2023 and 2022, respectively, (in thousands): 2023 2022 Amount % of revenue Amount % of revenue General and administrative $ 11,456 31.82 % $ 14,174 59.35 % Research and development expenses 343 0.95 % 2,672 11.19 % Stock compensation expense 3,468 9.63 % 1,280 5.36 % Selling expenses 599 1.66 % 808 3.38 % (Recovery) Provision of doubtful debts (717 ) (1.99 )% 26 0.11 % Impairment Loss 14,161 39.33 % 3,249 13.6 % Total operating expenses $ 29,310 81.40 % $ 22,209 93 % General and administrative expenses decreased by $2.71 million, or 19.18%, from $14.17 million to $11.45 million for the year ended 2023, compared to the same period of last fiscal year.
Biggest changeGross Margin (in thousands) 2024 2023 Gross profit Gross margin Gross profit Gross margin Supply Chain Financing/Trading $ 175 17.8 % 423 2.03 % Others 1,097 93.36 % 698 80.09 % Total $ 1,272 58.94 % $ 1,121 51.95 % Overall gross profit increased from approximately $1.12 million in 2023 to approximately $1.27 million in 2024, mainly due to new consulting and US dollar bond services business in 2024 comparing to 2023. 51 Operating Expenses The following table presents consolidated operating expenses and operating expenses as a percentage of revenue for 2024 and 2023, respectively, (in thousands): 2024 2023 Amount % of revenue Amount % of revenue General and administrative $ 6,213 287.91 % $ 7,244 33.39 % Research and development expenses 313 14.5 % 340 1.57 % Stock compensation expense 671 31.09 % 3,468 15.98 % Selling expenses 636 29.47 % 288 1.33 % (Recovery) Provision of doubtful debts 27,350 1,267.38 % (788 ) (3.63 )% Impairment Loss - - 14,161 65.27 % Total operating expenses $ 35,207 1,631.46 % $ 24,713 113.9 % General and administrative expenses decreased by $1 million, or 13.89%, from $7.2 million to $6.2 million for the year ended 2024, compared to the same period of last fiscal year.
The Company also expanded into brokerage and investment banking business in Hong Kong and cryptocurrency mining farm in the U.S. The Company had 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 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 is still processing the filings with CSRC for its offerings since the effective of New Overseas Listing Rules and has not complied the filing requirements yet which would subject the Company to fines and other penalties for violation of New Overseas Listing Rules.
The Company is still processing the filings with CSRC for its offerings since the effective of New Overseas Listing Rules and has not complied the filing requirements yet which would subject the Company to fines and other penalties for violation of New Overseas Listing Rules.
Any change in foreign investment regulations, and other policies in China or related enforcement actions by China government could result in a material change in our operations and the value of our securities and could significantly limit or completely hinder our ability to offer our securities to investors or cause the value of our securities to significantly decline or be worthless. 47 In the opinion of our PRC counsel Fengdong Law Firm, subsidiaries of the Company are incorporated and operating in mainland China have received all required permissions from Chinese authorities to operate their current business in China, including Business licenses and Bank Account Open Permits, as of the date of this report.
Any change in foreign investment regulations, and other policies in China or related enforcement actions by China government could result in a material change in our operations and the value of our securities and could significantly limit or completely hinder our ability to offer our securities to investors or cause the value of our securities to significantly decline or be worthless. 45 In the opinion of our PRC counsel Fengdong Law Firm, subsidiaries of the Company are incorporated and operating in mainland China have received all required permissions from Chinese authorities to operate their current business in China, including Business licenses and Bank Account Open Permits, as of the date of this report.
(5) External Asset Management Services (EAM) This business takes customer demand as the service purpose, cooperates with several private banks which provide asset custody services, and innovatively introduces the function of investment bank to provide exclusive private solutions for our clients.
(5) External Asset Management Services (EAM) This business takes customer demand as the service purpose, cooperates with several private banks which provide asset custody services, and innovatively introduces the function of investment bank to provide exclusive private solutions for clients.
We focus on bulk commodity goods such as sand, steel, coal and aluminum ingots and take large state-owned or listed companies as the core service targets; We use our own funds as the operation basis, actively uses a variety of channels and products for financing, such as banks, commercial factoring companies, accounts receivable, asset-backed securities, and other innovative financing methods to obtain sufficient funds. 48 We sign purchase and sale agreements with suppliers and buyers.
We focus on bulk commodity goods such as sand, steel, coal and aluminum ingots and take large state-owned or listed companies as the core service targets; We use our own funds as the operation basis, actively uses a variety of channels and products for financing, such as banks, commercial factoring companies, accounts receivable, asset-backed securities, and other innovative financing methods to obtain sufficient funds. 46 We sign purchase and sale agreements with suppliers and buyers.
ITEM 4 – MINE SAFETY DISCLOSURES Not applicable. 44 PART II ITEM 5 – MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES Our Common Stock is currently traded on the Nasdaq Capital Market under the symbol “FTFT.” Prior to December 31, 2018, our stock traded on the Nasdaq Global Market, and before that, on the NYSE Amex.
ITEM 4 – MINE SAFETY DISCLOSURES Not applicable. 41 PART II ITEM 5 – MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES Our Common Stock is currently traded on the Nasdaq Capital Market under the symbol “FTFT.” Prior to December 31, 2018, our stock traded on the Nasdaq Global Market, and before that, on the NYSE Amex.
Based on management’s assessment, our CEO and CFO concluded that our internal control over financial reporting as of December 31, 2023 was ineffective. We have taken, and are taking, certain actions to remediate the material weakness related to our lack of U.S. GAAP and SEC reporting experience. We engaged a consultant with U.S.
Based on management’s assessment, our CEO and CFO concluded that our internal control over financial reporting as of December 31, 2024 was ineffective. We have taken, and are taking, certain actions to remediate the material weakness related to our lack of U.S. GAAP and SEC reporting experience. We engaged a consultant with U.S.
With research on the fundamentals of market supply and demand to predict the trend of commodity prices, NTAM endeavors to improve the rate of return for clients through dual currency investment, options and structured products. 49 (4) Derivative Investment NTAM also manages clients’ investment portfolio in financial derivatives in different asset classes, such as options and structured products.
With research on the fundamentals of market supply and demand to predict the trend of commodity prices, NTAM endeavors to improve the rate of return for clients through dual currency investment, options and structured products. 47 (4) Derivative Investment NTAM also manages clients’ investment portfolio in financial derivatives in different asset classes, such as options and structured products.
The Company started a process to close it down in November 2023 and completed deregistration and dissolution of the VIE with local authority on March 7, 2024. 46 There are legal and operational risks associated with being based in and having a substantial majority of operations in China and Hong Kong.
The Company started a process to close it down in November 2023 and completed deregistration and dissolution of the VIE with local authority on March 7, 2024. 44 There are legal and operational risks associated with being based in and having a substantial majority of operations in China and Hong Kong.
Recent Sales of Unregistered Securities and Use of Proceeds The Company did not make any sales of unregistered securities during the fiscal year ended December 31, 2023 that were not previously disclosed in a quarterly report on Form 10-Q or a current report on Form 8-K.
Recent Sales of Unregistered Securities and Use of Proceeds The Company did not make any sales of unregistered securities during the fiscal year ended December 31, 2024 that were not previously disclosed in a quarterly report on Form 10-Q or a current report on Form 8-K.
ITEM 9A – CONTROLS AND PROCEDURES Evaluation of Disclosure Controls and Procedures Our management, with the participation of our CEO and CFO, has evaluated the effectiveness of the Company’s disclosure controls and procedures, as defined in Rule 13a-15(e) and 15d-15(e) of the Exchange Act, as of December 31, 2023. 55 The term “disclosure controls and procedures” as defined in Rules 13a-15(e) and 15d-15(e) means controls and other procedures of the Company that are designed to ensure that information required to be disclosed by a company in reports, such as this report, that it files or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC rules and forms.
ITEM 9A – CONTROLS AND PROCEDURES Evaluation of Disclosure Controls and Procedures Our management, with the participation of our CEO and CFO, has evaluated the effectiveness of the Company’s disclosure controls and procedures, as defined in Rule 13a-15(e) and 15d-15(e) of the Exchange Act, as of December 31, 2024. 53 The term “disclosure controls and procedures” as defined in Rules 13a-15(e) and 15d-15(e) means controls and other procedures of the Company that are designed to ensure that information required to be disclosed by a company in reports, such as this report, that it files or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC rules and forms.
In an effort to detect and defend against cyber threats, the Company plans to provide its employees with various cybersecurity and data protection training programs which will cover timely and relevant topics, including social engineering, phishing, password protection, confidential data protection, asset use and mobile security, and educate employees on the importance of reporting all incidents promptly. 42 ITEM 2 – PROPERTIES Our principal executive office is located at Americas Tower, 1177 Avenue of The Americas, Suite 5100, New York, NY 10036 and we lease such office for a term of one year from December 1, 2020, which has been renewed until December 1, 2024.
In an effort to detect and defend against cyber threats, the Company plans to provide its employees with various cybersecurity and data protection training programs which will cover timely and relevant topics, including social engineering, phishing, password protection, confidential data protection, asset use and mobile security, and educate employees on the importance of reporting all incidents promptly. 39 ITEM 2 – PROPERTIES Our principal executive office is located at Americas Tower, 1177 Avenue of The Americas, Suite 5100, New York, NY 10036 and we lease the office for a term of one year from December 1, 2020, which has been renewed until December 1, 2025.
Translation adjustments are reported separately and accumulated in a separate component of equity (cumulative translation adjustment). Other comprehensive income for the years ended December 31, 2023 and 2022 represented foreign currency translation adjustments and were included in the consolidated statements of comprehensive income.
Translation adjustments are reported separately and accumulated in a separate component of equity (cumulative translation adjustment). Other comprehensive income for the years ended December 31, 2024 and 2023 represented foreign currency translation adjustments and were included in the consolidated statements of comprehensive income.
Classification within the hierarchy is determined based on the lowest level of input that is significant to the fair value measurement. 51 Revenue Recognition The Company adopted ASC 606, Revenue from Contracts with Customers, from January 1, 2018.
Classification within the hierarchy is determined based on the lowest level of input that is significant to the fair value measurement. 49 Revenue Recognition The Company adopted ASC 606, Revenue from Contracts with Customers, from January 1, 2018.
Management assessed our internal control over financial reporting as of December 31, 2023. The standard measures adopted by management in making its evaluation are the measures in the Internal-Control Integrated Framework published by the Committee of Sponsoring Organizations of the Treadway Commission.
Management assessed our internal control over financial reporting as of December 31, 2024. The standard measures adopted by management in making its evaluation are the measures in the Internal-Control Integrated Framework published by the Committee of Sponsoring Organizations of the Treadway Commission.
As of the date of this report, the Company has made all installment payments of the penalties except for the last one which will due on 360 days of the Order Date. On July 26, 2023, the Company also has engaged an independent consultant to test, assess, and review the Company’s internal accounting controls and internal control over financial reporting.
The Company has made all installment payments of the penalties except for the last one which will due on 360 days of the Order Date. On July 26, 2023, the Company also has engaged an independent consultant to test, assess, and review the Company’s internal accounting controls and internal control over financial reporting.
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 subsequently changed to ‘FTFT International Securities and Futures Limited’ and ‘FTFT Information Services (Shenzhen) Co. Ltd.’, respectively.
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 subsequently changed to ‘FTFT International Securities and Futures Limited’ and ‘FTFT Information Services (Shenzhen) Co.
The Company operated a blockchain based online shopping platform, Chain Cloud Mall (“CCM”) Chain Cloud Mall through its VIE and its business was materially and negatively affected by outbreak of COVID-19 since early 2020 because the Company was unable to implement its promotion strategy to enroll new members through training of such members and distributors via meetings and conferences which was not possible during the outbreak of COVID-19.
The Company operated a blockchain based online shopping platform, Chain Cloud Mall (“CCM”) Chain Cloud Mall through its VIE and its business was materially and negatively affected during outbreak of COVID-19 because the Company was unable to implement its promotion strategy to enroll new members through training of such members and distributors via meetings and conferences which was not possible during the outbreak of COVID-19.
On November 2, 2022, FT Global filed its opposition to the Company’s motion for summary judgment. On November 16, 2022, the Company filed its reply in support of its motion for summary judgment on all claims asserted by FT Global in this lawsuit. On August 31, 2023, the Court entered an Order denying the Company’s motion for summary judgment.
On November 16, 2022, the Company filed its reply in support of its motion for summary judgment on all claims asserted by FT Global in this lawsuit. On August 31, 2023, the Court entered an Order denying the Company’s motion for summary judgment.
Based on that evaluation, our CEO and CFO concluded that our disclosure controls and procedures were effective as of December 31, 2023, due to a material weakness in our internal control over financial reporting., we currently training our staff with the appropriate level of knowledge, experience and training in U.S. GAAP and SEC reporting requirements.
Based on that evaluation, our CEO and CFO concluded that our disclosure controls and procedures were not effective as of December 31, 2024, due to a material weakness in our internal control over financial reporting., we currently are training our staff with the appropriate level of knowledge, experience and training in U.S. GAAP and SEC reporting requirements.
On December 23, 2023 (the “Grant Date”), the Compensation Committee of the Board of Directors (the “Board”) of the Company granted stock awards of 2,890,000 shares of common stock of the Company, pursuant to the Company’s 2023 Omnibus Equity Plan, to sixteen officers and employees of the Company and its subsidiaries (the “Grantees”), including: 200,000 shares to Shanchun Huang, Chief Executive Officer and President of the Company, 40,000 shares to Peng Lei, Chief Operating Officer of the Company, and 30,000 shares to Hoo Lee, Corporate Secretary of the Company (collectively, the “Grants”).
On December 23, 2023, the Compensation Committee of the Board of Directors (the “Board”) of the Company granted stock awards of 2,890,000 shares of common stock of the Company, pursuant to the Company’s 2023 Omnibus Equity Plan, to sixteen officers and employees of the Company and its subsidiaries (the “Grantees”), including: 200,000 shares to Shanchun Huang, then Chief Executive Officer and President of the Company, 40,000 shares to Peng Lei, Chief Operating Officer of the Company, and 30,000 shares to Hu Li, then Corporate Secretary of the Company (collectively, the “Grants”).
The decrease in cash, cash equivalents was mainly due the loss in operations and the impairment of goodwill for the year ended December 31, 2023 comparing to the same period of 2022. Our working capital has historically been generated from our operating cash flows, advances from our customers and loans from bank facilities.
The decrease in cash, cash equivalents was mainly due the loss in provision of doubtful debt for the year ended December 31, 2024 comparing to the same period of 2023. Our working capital has historically been generated from our operating cash flows, advances from our customers and loans from bank facilities.
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 will continue to be $0.001 par value.
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 “2023 Reverse Stock Split”).
Equity Compensation Plan Information Plan Category Number of securities to be issued upon exercise of outstanding options, warrants and rights Weighted average exercise price of outstanding options, warrants and rights Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column (a)) (a) (b) (c) Equity compensation plans approved by stockholders (1) - $ - 2,110,000 Equity compensation plans not approved by stockholders - $ - - Total - $ - 2,110,000 (1) Consists of Company’s 2023 Omnibus Equity Plan, which was approved by the Company’s shareholders at its annual meeting of stockholders on December 5, 2023.
Equity Compensation Plan Information Plan Category Number of securities to be issued upon exercise of outstanding options, warrants and rights Weighted average exercise price of outstanding options, warrants and rights Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column (a)) (a) (b) (c) Equity compensation plans approved by stockholders (1) - $ - 5,000,000 Equity compensation plans not approved by stockholders - $ - - Total - $ - 5,000,000 (1) Consists of Company’s 2024 Omnibus Equity Plan, which was approved by the Company’s shareholders at its annual meeting of stockholders on December 5, 2024, which was approved and adopted by the Board on October 12, 2024, to provide equity awards to employees, directors and consultants of the Company (the “2024 Plan”).
Basic and diluted loss per share attributable to discontinued operations was $0.03 and $0.03 for fiscal year 2023 as compared to basic and diluted income per share $0.02 and $0.02 for fiscal year 2022 respectively.
Basic and diluted loss per share attributable to discontinued operations was $0.06 and $0.06 for fiscal year 2024 as compared to basic and diluted income per share $0.07 and $0.07 for fiscal year 2023 respectively.
Use of Estimates The Company’s consolidated financial statements have been prepared in accordance with U.S. GAAP and this requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure at contingent assets and liabilities at the date of the consolidated financial statements and reported amounts of revenue and expenses during the reporting period.
GAAP and this requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure at contingent assets and liabilities at the date of the consolidated financial statements and reported amounts of revenue and expenses during the reporting period.
The increase in net cash used by operating activities was primarily due to an increase in impairment of goodwill during the year ended December 31, 2023.
The increase in net cash used by operating activities was primarily due to an increase in provision of doubtful debt during the year ended December 31, 2024.
Securities Authorized for Issuance Under Equity Compensation Plans The following table sets forth information as of December 31, 2023, with respect to our equity compensation plans previously approved by stockholders and equity compensation plans not previously approved by stockholders.
Securities Authorized for Issuance Under Equity Compensation Plans The following table sets forth information as of December 31, 2024, with respect to our equity compensation plans previously approved by stockholders and equity compensation plans not previously approved by stockholders. The number of shares are pre-2025 Reverse Stock Split.
As of April 12, 2024, there were 19,985,410 shares of our Common Stock issued and outstanding, and the Company had approximately 32 record holders of Common Stock. The number of holders of record does not include the number of persons whose stock is in nominee or “street name” accounts through brokers.
As of April 11, 2025, there were 3,050,770 shares of our Common Stock issued and outstanding, and the Company had approximately 47 record holders of Common Stock. The number of holders of record does not include the number of persons whose stock is in nominee or “street name” accounts through brokers.
On August 6, 2021, the Company completed acquisition of 90% of the issued and outstanding shares of Nice Talent Asset Management Limited (“NTAM”), a Hong Kong-based asset management company, from Joy Rich Enterprises Limited (“Joy Rich”).
Currently, the main business of the Company is supply-chain financing services and trading in China. On August 6, 2021, the Company completed acquisition of 90% of the issued and outstanding shares of Nice Talent Asset Management Limited (“NTAM”), a Hong Kong-based asset management company, from Joy Rich Enterprises Limited (“Joy Rich”).
The Company plans to develop bitcoin and other cryptocurrency mining and related services in Paraguay. The Company has changed its name from KAZAN S.A to FTFT Paraguay S.A. on July 28, 2022.
The Company plans to develop bitcoin and other cryptocurrency mining and related services in Paraguay. The Company has changed its name from KAZAN S.A to FTFT Paraguay S.A. on July 28, 2022 and it was dissolved in December 2023 as the Company was not able to develop the business in Paraguay as planned.
In early 2020, Chinese government took emergency measures to combat the spread of the virus, including quarantines, travel restrictions, and the temporary closure of office buildings and facilities in China.
On March 11, 2020, the World Health Organization characterized the outbreak as a “pandemic”. In early 2020, Chinese government took emergency measures to combat the spread of the virus, including quarantines, travel restrictions, and the temporary closure of office buildings and facilities in China.
ITEM 7A – QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK Not applicable. ITEM 8 – FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA The information called for by this item is included in the Company’s consolidated financial statements beginning on page F-1 of this Annual Report on Form 10-K.
ITEM 8 – FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA The information called for by this item is included in the Company’s consolidated financial statements beginning on page F-1 of this Annual Report on Form 10-K. ITEM 9 – CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE Not applicable.
No changes are being 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 will take effect at 1:00am Eastern Time on February 1, 2023.
No changes are being 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 at 1:00pm E.T. on April 1, 2025.
ITEM 6 – [RESERVED] Not Applicable. 45 ITEM 7 – MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS The following discussion and analysis of the consolidated financial condition and results of operations should be read in conjunction with the consolidated financial statements and related notes appearing elsewhere in this report.
ITEM 7 – MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS The following discussion and analysis of the consolidated financial condition and results of operations should be read in conjunction with the consolidated financial statements and related notes appearing elsewhere in this report. This discussion and analysis contains forward-looking statements that involve risks, uncertainties and assumptions.
The Company rounds up to the next full share of the Company’s shares of common stock any fractional shares that result from the Reverse Stock Split and no fractional shares is issued in connection with the Reverse Stock Split and no cash or other consideration is paid in connection with any fractional shares that would otherwise have resulted from the Reverse Stock Split.
The Company rounded up the fractional shares that result from the 2025 Reverse Stock Split and no fractional shares will be issued in connection with the 2025 Reverse Stock Split and no cash or other consideration will be paid in connection with any fractional shares that would otherwise have resulted from the 2025 Reverse Stock Split.
Other revenues increased from $0.14 million for the year ended December 31, 2022 to $1.21 million for the same period of 2023, mainly due to the increased cryptocurrency mining service fee to approximately $0.21 million in 2023 from $0.05 million in 2022 and the debt recovery consulting service fee of approximately $0.63 million as well as US dollar bond service income from new acquisitions business during the year ended December 31, 2023 which we did not have such income in 2022.
Other revenues increased from $0.87 million for the year ended December 31, 2023 to $1.18 million for the same period of 2024, mainly due to the increased debt recovery consulting service fee as well as U.S. dollar bond service income, as we did not have such income in 2023.
In the event that we do need to raise capital in the future and there is any outbreak due to new variants, outbreak-related instability in the securities markets could adversely affect our ability to raise additional capital. 50 Discontinued Operations On June 27, 2022, Chain Cloud Mall Logistics Center (Shaanxi) Co., Limited was dissolved and deregistered.
In the event that we do need to raise capital in the future and there is any outbreak due to new variants, outbreak-related instability in the securities markets could adversely affect our ability to raise additional capital. 48 Discontinued Operations On June 16, 2023, QR (HK) Limited was dissolved and deregistered. On December 5, 2023, FTFT PARAGUAY S.A. was dissolved.
The Court has also rescheduled the trial to commence on April 8, 2024. The trial began on April 8, 2024 and ended on April 11, 2024, on which date the jury returned a verdict in favor of FT Global and the Court entered a judgment awarding FT Global $8,875,265.31.
The trial began on April 8, 2024 and ended on April 11, 2024, on which date the jury returned a verdict in favor of FT Global.
The consultant has completed its test, assess and review and issued a final report in December 2023.
The consultant has completed its test, assess and review and issued a final report in December 2023. The Company has adopted and are implementing and maintaining policies, procedures and practices recommended in the report of the Consultant.
Failure to take timely and appropriate measures to adapt to any of these or similar regulatory compliance challenges could materially and adversely affect our current corporate structure and business operations.
Failure to take timely and appropriate measures to adapt to any of these or similar regulatory compliance challenges could materially and adversely affect our current corporate structure and business operations. The Company currently has one directly controlled subsidiaries: Future FinTech (Hong Kong) Limited, a company incorporated under the laws of Hong Kong.
On October 11, 2022, the Company changed the name of Khyber Money Exchange Ltd. to FTFT Finance UK Limited. 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.
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.
Our working capital was $36.76 million as of December 31, 2023, a decrease of $9.93 million from $46.69 million as of December 31, 2022, mainly due to a decrease in current assets. In 2023, net cash used in our operating activities was $17.22 million compared to net cash used in operating activities of $2.38 million in 2022.
Our working capital was $8.27 million as of December 31, 2024, a decrease of $28.49 million from $36.76 million as of December 31, 2023, mainly due to decrease in current assets. In 2024, net cash used in our operating activities was $21.23 million compared to net cash used in operating activities of $14.56 million in 2023.
The decrease in general and administrative expenses was mainly due to decreased professional service fees for acquisition projects and certain training and consulting fees for the acquired and newly established companies during the year ended December 31, 2023.
The decrease in general and administrative expenses was mainly due to decreased professional service fees and rental fee during the year ended December 31, 2024.
The Company will continue to vigorously defend the action against FT Global, including by appealing the judgment to the United States Court of Appeals for the Eleventh Circuit. 43 Settlement with SEC On December 17, 2019, the Company announced that it received a subpoena from the SEC’s Division of Enforcement requiring the Company to produce documents and other information and the Company has cooperated with the SEC’s investigation and information request.
Settlement with SEC On December 17, 2019, the Company announced that it received a subpoena from the SEC’s Division of Enforcement requiring the Company to produce documents and other information and the Company has cooperated with the SEC’s investigation and information request. On July 3, 2023, the SEC announced a settlement of the investigation with the Company.
The Grants vested immediately on the Grant Date and each of the Grantees also entered into an Unrestricted Stock Award Agreement with the Company on December 23, 2023. As of December 31, 2023, there were 2,110,000 shares authorized for issuance under 2023 Omnibus Equity Plan of the Company.
The Grants vested immediately on the Grant Date and each of the Grantees also entered into an Unrestricted Stock Award Agreement with the Company on December 23, 2023. On October 4, 2024, the Company granted the remaining 2,110,000 share under 2023 Omnibus Equity Plan to 4 employees of the Company and its subsidiaries. 42 ITEM 6 – [RESERVED] Not Applicable.
Liquidity and Capital Resources As of December 31, 2023, we had cash and cash equivalents of $19.03 million, a decrease of $10.63 million, from $29.66 million as of December 31, 2022.
Liquidity and Capital Resources As of December 31, 2024, we had cash and cash equivalents of $4.84 million, a decrease of $12.57 million, from $17.41 million as of December 31, 2023.
In 2023, net cash provided in our investing activities was $8.04 million compared to net cash used in operating activities of $14.19 million in 2022 mainly due to acquisition of a subsidiary and repayment for loan receivable.
In 2024, net cash provided in our investing activities was $16.29 million compared to net cash used in operating activities of $8.78 million in 2023 mainly due to decrease in repayment for loan receivable. In 2024, cash used by financing activities was $2.5 million as compared to cash used in financing activities negative $2.4 million in 2023.
Summary of Significant Accounting Policies, to our Consolidated Financial Statements for a description of applicable recent accounting pronouncements. 52 Comparison of Operation Results of years ended December 31, 2023 and 2022 Revenue The following table presents our consolidated revenues for our main products and services for the fiscal years 2023 and 2022, respectively, (in thousands): Year ended December 31, Change 2023 2022 Amount % Supply Chain Financing/Trading $ 20,769 $ 10,108 $ 10,661 105.47 % Asset management service 12,883 13,631 (748 ) (5.48 )% Others 1,213 142 1,071 754.23 % Total $ 34,865 $ 23,881 $ 10,984 46 % Revenue increased from $23.88 million in 2022 to $34.86 million in 2023, increase of $10.98million or 46%.
Summary of Significant Accounting Policies, to our Consolidated Financial Statements for a description of applicable recent accounting pronouncements. 50 Comparison of Operation Results of years ended December 31, 2024 and 2023 Revenue The following table presents our consolidated revenues for our main products and services for the fiscal years 2024 and 2023, respectively, (in thousands): Year ended December 31, Change 2024 2023 Amount % Supply Chain Financing/Trading $ 983 $ 20,826 $ (19,843 ) (95.28 )% Others 1,175 871 304 34.90 % Total $ 2,158 $ 21,697 $ 19,539 (158.50 )% Revenue decreased from $21.7 million in 2023 to $2.16 million in 2024, decrease of $19.54 million or 158.5%.
On August 3, 2022, the Court granted the parties’ Consent Motion to Extend Discovery Period extending the discovery period from August 5, 2022 to September 14, 2022 and the deadline to file dispositive motions to October 12, 2022. On October 12, 2022, the Company filed a motion for summary judgment on all claims asserted by FT Global in this lawsuit.
On October 12, 2022, the Company filed a motion for summary judgment on all claims asserted by FT Global in this lawsuit. On November 2, 2022, FT Global filed its opposition to the Company’s motion for summary judgment.
Yaohua Dai holds 20% equity interest of Future Fintech Digital Capital. 54 Loss per Share Basic and diluted loss per share from continuing operations were $2.31 and $2.31 in fiscal 2023, as compared to $0.93 and $0.93 in fiscal 2022, respectively.
Each of Bin Wu and Lixiong Huang holds 25% and 20% interest in FTFT Capital Investments L.L.C., respectively. 52 Loss per Share Basic and diluted loss per share from continuing operations were $1.63 and $1.63 in fiscal 2024, as compared to $2.21 and $2.2 in fiscal 2023, respectively.
In 2023, cash used by financing activities was negative $1.82 million as compared to cash used in financing activities positive $0.25 million in 2022. The increase in cash used by financing activities was mainly due to financing from the issuance of convertible note. Off-Balance Sheet Arrangements As of December 31, 2023, we did not have any off-balance sheet arrangements.
The increase in cash used by financing activities was mainly due to proceeds from the issuance of common stock from a private placement, net of issuance costs. Off-Balance Sheet Arrangements As of December 31, 2024, we did not have any off-balance sheet arrangements. ITEM 7A – QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK Not applicable.
Selling expenses decreased by $0.2 million to $0.6 million in 2023 as compared to $0.8 million in 2022, the decrease in selling expenses was mainly due to decrease in selling expenses from our supply chain business.
Selling expenses increased by $0.35 million to $0.63 million in 2024 as compared to $0.28 million in 2023, the increase in selling expenses was mainly due to increase in selling expenses from our supply chain business. Bad debt provision increased by $27.35 million during the year 2024, compared to the same period of last fiscal year.
Also, the exchange rate fluctuation in 2023 is relatively large, which significantly reduced our income. Impact of COVID-19 on our Business In December 2019, a novel strain of coronavirus was reported and has spread throughout China and other parts of the world. On March 11, 2020, the World Health Organization characterized the outbreak as a “pandemic”.
NTAM’s main revenue is generated from providing professional advices to clients and management fees for managing the investment of the clients. Impact of COVID-19 on our Business In December 2019, a novel strain of coronavirus was reported and has spread throughout China and other parts of the world.
The increase in overall revenue was mainly due to increase in revenues generated from sand and steel supply chain financing and trading business as Chinese government eased strict control measures for COVID-19 at the end of 2022 and business and transportation have resumed to normal in early 2023 while there were many lockdowns in 2022.
The decrease in overall revenue was mainly due to the sale of the subsidiary NTAM which generated $12.88 million revenue from asset management business in 2023 as well as decrease in revenues generated from supply chain financing and trading business.
Removed
We also lease offices at 23/F, South Tower, Kaisa Plaza, 86th Jianguo Rd.
Added
We also lease offices at Room 603A, Tower A, Oriental Media Center, No.4, Guanghua Rd, Chaoyang District, Beijing, China for a term from September 26, 2024 to September 25, 2026; FTFT International Securities and Futures Limited leases an office at 02B-03A Floor 23, Sino Plaza, 255-257 Gloucester Road, Causeway Bay, Hong Kong from May 7, 2024 to May 6, 2027.
Removed
Chaoyang District, Beijing for a term from September 1, 2020 to August 31, 2024; FTFT Dubai leases an office at 1113, Onyx tower 2, The Greens, Dubai, UAE from July 18, 2023 to August 17, 2024, FTFT UK leases an office at Devonshire House, 9th Floor 1 Mayfair Place, London, W1J 8AJ, United Kingdom from September1, 2023 to August 31, 2024.
Added
Our Xi’an office is at 12 floor, Hang Tou Cai Fu Building, Hang Tian Zhong Road, Changan District, Xi’an, China from January 1, 2025 to December 31, 2026. ITEM 3 – LEGAL PROCEEDINGS Legal case with FT Global Capital, Inc. In January 2021, FT Global Capital, Inc.
Removed
NTAM leases an office at Unit B 17/F, Chung Nam Building 1 Lockhart Road Wan Chai, Hong Kong until June15, 2025. We believe that our current offices are adequate to meet our needs.
Added
On April 11, 2024, the Court entered a judgment awarding FT Global $8,875,265.31 and on April 16, 2024, the Court issued an amended judgment, awarding FT Global $10,598,379.93, which includes $7,895,265.31 in damages, $1,723,114.62 in prejudgment interest, and $980,000.00 in attorney’s fees.
Removed
FTFT International Securities and Futures Limited leases an office at office c,18F, Wing Lok Street Trade Centre,235 Wing Lok Street, Sheung Wan, Hong Kong until May 31, 2024. ITEM 3 – LEGAL PROCEEDINGS Legal case with FT Global Capital, Inc. In January 2021, FT Global Capital, Inc.
Added
On May 9, 2024, the Company filed a post-trial motion to set aside the jury verdict and for a new trial and the Court denied the motion on March 3, 2025.
Removed
On March 23, 2021, FT Global filed its response to the Company’s motion to dismiss. FT Global argues that the Court should deny the Company’s motion to dismiss. However, if the Court is inclined to grant the Company’s motion to dismiss, FT Global requested that the Court permit it to file an amended complaint.
Added
The Company filed notice of appeal to appeal the judgement to the United States Court of Appeals for the Eleventh Circuit on April 2, 2025 and the Company will continue to vigorously defend the action against FT Global.
Removed
On April 8, 2021, the parties filed a Joint Preliminary Report and Discovery Plan. On April 12, 2021, the Court approved the Joint Preliminary Report and Discovery Plan and issued a Scheduling Order placing this case on a six-month discovery tract. On April 30, 2021, the Company served FT Global with its Initial Disclosures.
Added
FT Global has registered the Court’s judgment in the United States District Court for Southern District of New York (“NY Court”), where FT Global has brought a motion requiring the Company to turn over its stock in its subsidiary companies.
Removed
On May 6, 2021, FT Global served the Company with its Initial Disclosures. On May 17, 2021, FT Global served the Company with its First Amended Initial Disclosures.
Added
The Company has filed an opposition to the motion, arguing that according to the New York statute the NY Court should first determine that the value of the stock in the subsidiary is insufficient to satisfy the judgment as the Company believe the request for turnover is premature before a valuation hearing.
Removed
The Company timely filed an answer and defenses to FT Global’s complaint on November 24, 2021. On January 3, 2022 the Company propounded discovery requests upon FT Global, including interrogatories and requests for production of documents. On March 23, 2022, the Company propounded requests for admission upon FT Global.
Added
On August 28, 2024, NY Court granted FT Global’s motion for turnover of Defendant’s shares in Defendant’s wholly-owned subsidiaries as Defendant 1) failed to satisfy the $10.8 million judgment rendered in the Northern District of Georgia and registered in the Southern District of New York, and 2) is in possession of money and property in which it has an interest.
Removed
On March 24, 2022, FT Global propounded discovery requests upon the Company, including requests for production of documents and requests for admission. On April 1, 2022, FT Global served its response to the Company’s requests for production of documents. On May 13, 2022, FT Global served its responses to the Company’s interrogatories and requests for admissions.
Added
The NY Court ordered Defendant shall turn over the shares, membership, or limited partnership interests in all of its subsidiaries, and the corporate seals of its China and Hong Kong-based subsidiaries, to the U.S. Marshal for auction or sale until the judgment is satisfied.
Removed
On May 13, 2022, FT Global produced documents in response to the Company’s requests for production of documents. On June 3, 2022, the Company produced documents in response to FT Global’s requests for production of documents. On August 3, 2022, the Company took the deposition of FT Global. On August 4, 2022, FT Global took the deposition of the Company.
Added
Pursuant to the order issued by the United States District Court for the Southern District of New York on August 28, 2024, the United States Marshal for the Southern District of New York (“U.S.
Removed
On September 20, 2023, the parties filed a joint motion to extend the deadline to file the consolidated pretrial order pending mediation of the case by the parties. On September 21, 2023, the Court granted the parties’ joint motion to extend the deadline to file the consolidated pretrial order to October 27, 2023.
Added
Marshal”) sold the securities of the subsidiaries of the Company other than those in Hong Kong and China in auction of: (i) all of the membership interests in Future Fintech Digital Capital Management LLC; (ii) all of the outstanding shares of FTFT UK Limited; (iii) the corporate seal of DigiPay FinTech Limited; (iv) the corporate seal of GlobalKey SharedMall Limited; (iv) all of the outstanding shares of Future Fintech Labs Inc.; and (v) all of the outstanding shares of Future Fintech Digital Number One GP, LLC (USA) to Alec Orudjiev, the general counsel of FT Global for $25,000 on December 18, 2024.
Removed
On October 16, 2023, the parties mediated the case. On October 24, 2023, the parties filed another joint motion to extend the deadline to file the consolidated pretrial order.
Added
On December 6, 2024, the Company agreed to sell all issued and outstanding shares of FTFT SuperComputing Inc. a wholly owned subsidiary of the Company (“FTFT SuperComputing”) to DDMM Capital LLC (the “Buyer”) for a purchase price that equals to: (i) the assumption of the obligations of FTFT SuperComputing totaling $973,072.24 and (ii)$1,000,000, which was paid to an account at Olshan Frome Wolosky LLP to satisfy, in part, the right of payment held by FT Global Capital, Inc. arising from the judgment entered in favor of FT Global and against the Company registered in the Southern District of New York and all matters pertaining to such litigation.
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