Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2023 | Nov. 17, 2023 | |
Document Information Line Items | ||
Entity Registrant Name | Future FinTech Group Inc. | |
Trading Symbol | FTFT | |
Document Type | 10-Q | |
Current Fiscal Year End Date | --12-31 | |
Entity Common Stock, Shares Outstanding | 14,944,874 | |
Amendment Flag | false | |
Entity Central Index Key | 0001066923 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Document Period End Date | Sep. 30, 2023 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q3 | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity File Number | 001-34502 | |
Entity Incorporation, State or Country Code | FL | |
Entity Tax Identification Number | 98-0222013 | |
Entity Address, Address Line One | Americas Tower | |
Entity Address, Address Line Two | 1177 Avenue of The Americas | |
Entity Address, Address Line Three | Suite 5100 | |
Entity Address, City or Town | New York | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 10036 | |
City Area Code | 888 | |
Local Phone Number | 622-1218 | |
Title of 12(b) Security | Common Stock, par value $0.001 per share | |
Security Exchange Name | NASDAQ | |
Entity Interactive Data Current | Yes |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 32,707,734 | $ 26,145,588 |
Restricted cash | 696,398 | 3,589,582 |
Short - term investment | 954,675 | 988,073 |
Accounts receivable, net | 3,225,653 | 7,796,672 |
Advances to suppliers and other current assets | 2,212,105 | 4,670,264 |
Loan receivables | 4,924,826 | 19,157,538 |
Other receivables, net | 5,887,992 | 2,649,536 |
TOTAL CURRENT ASSETS | 50,660,364 | 65,050,379 |
Property, plant and equipment, net | 4,627,438 | 4,417,281 |
Right of use assets - operation lease | 802,980 | 1,055,906 |
Intangible assets | 475,293 | 518,069 |
Goodwill | 13,976,084 | 13,976,084 |
TOTAL NON-CURRENT ASSETS | 19,881,795 | 19,967,340 |
TOTAL ASSETS | 70,542,159 | 85,017,719 |
CURRENT LIABILITIES | ||
Accounts payable | 352,251 | 3,603,577 |
Notes payable | 696,398 | 3,589,582 |
Accrued expenses and other payables | 2,491,208 | 2,214,256 |
Advances from customers | 65,667 | 1,236,241 |
Lease liability - operation lease | 289,781 | 294,944 |
Deferred liabilities | 7,387,697 | 7,387,697 |
TOTAL CURRENT LIABILITIES | 11,518,352 | 18,571,116 |
NON-CURRENT LIABILITIES | ||
Lease liability - operation lease | 513,199 | 760,962 |
TOTAL NON-CURRENT LIABILITIES | 513,199 | 760,962 |
TOTAL LIABILITIES | 12,031,551 | 19,332,078 |
Commitments and contingencies (Note 24) | ||
Future FinTech Group, Inc, Stockholders’ equity | ||
Common stock, $0.001 par value; 60,000,000 shares authorized, 14,645,653 shares and 14,645,653 shares issued and outstanding as of September 30, 2023 and December 31, 2022 respectively | 14,646 | 14,646 |
Additional paid-in capital | 222,751,657 | 222,751,657 |
Statutory reserve | 98,357 | 98,357 |
Accumulated deficits | (158,333,202) | (152,276,434) |
Accumulated other comprehensive loss | (4,563,047) | (3,623,005) |
Total Future FinTech Group, Inc. stockholders’ equity | 59,968,411 | 66,965,221 |
Non-controlling interests | (1,457,803) | (1,279,580) |
TOTAL STOCKHOLDERS’ EQUITY | 58,510,608 | 65,685,641 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | 70,542,159 | 85,017,719 |
Related Party | ||
CURRENT ASSETS | ||
Amount due from related party | 50,981 | 53,126 |
CURRENT LIABILITIES | ||
Amounts due to related parties | $ 235,350 | $ 244,819 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parentheticals) - $ / shares | Sep. 30, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in Dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 60,000,000 | 60,000,000 |
Common stock, shares issued | 14,645,653 | 14,645,653 |
Common stock, shares outstanding | 14,645,653 | 14,645,653 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Income Statement [Abstract] | ||||
Revenue | $ 23,753,725 | $ 11,959,019 | $ 30,956,681 | $ 22,843,661 |
Cost of revenues-third party | 22,113,149 | 10,465,893 | 26,138,707 | 18,187,138 |
Cost of revenues-related party | 249,718 | 960,312 | ||
Gross profit | 1,390,858 | 1,493,126 | 3,857,662 | 4,656,523 |
Operating Expenses | ||||
General and administrative expenses | 3,829,628 | 3,558,700 | 9,853,983 | 9,619,115 |
Research and development expenses | 16,799 | 790,922 | 341,888 | 1,994,082 |
Stock compensation expense | 1,279,740 | 1,279,740 | ||
Selling expenses | 108,861 | 274,109 | 365,112 | 993,787 |
Impairment Loss | 3,872 | 228,963 | 3,872 | 926,086 |
Provision (Recovery) of doubtful debts | 17,779 | (1,152,798) | 1,947 | |
Total operating expenses | 3,976,939 | 6,132,434 | 9,412,057 | 14,814,757 |
Loss from operations | (2,586,081) | (4,639,308) | (5,554,395) | (10,158,234) |
Other (expenses) income | ||||
Interest income | 202,529 | 429,971 | 903,566 | 845,914 |
Interest expenses | (3,352) | (9,370) | ||
Other (expense) income, net | (55,406) | 780,229 | (1,617,355) | 1,166,066 |
Total other income (expense), net | 147,123 | 1,206,848 | (713,789) | 2,002,610 |
Loss from Continuing Operations before Income Tax | (2,438,958) | (3,432,460) | (6,268,184) | (8,155,624) |
Income tax provision | (10,735) | (201,437) | (72,287) | (513,178) |
Loss from Continuing Operations | (2,449,693) | (3,633,897) | (6,340,471) | (8,668,802) |
Discontinued Operations | ||||
Gain/(Loss) on disposal of discontinued operations | 105,480 | (154) | ||
NET LOSS | (2,449,693) | (3,633,897) | (6,234,991) | (8,668,956) |
Less: Net Loss attributable to non-controlling interests | (41,393) | (102,398) | (178,223) | (503,903) |
Net income/(loss) from continued operations attributable to Future Fintech Group, Inc. | (2,408,300) | (3,531,499) | (6,056,768) | (8,165,053) |
Loss from continued operations | (2,449,693) | (3,633,897) | (6,340,471) | (8,668,802) |
Foreign currency translation – continued operations | 144,503 | (1,834,957) | (940,042) | (3,522,764) |
Unrealized holding (losses)/gains on available-for-sale securities | (114,293) | |||
Comprehensive loss - continued operation | (2,419,483) | (5,468,854) | (7,280,513) | (12,191,566) |
Net income (loss) from discontinued operations | 105,480 | (154) | ||
Foreign currency translation – discontinued operations | ||||
Comprehensive income (loss) - discontinued operation | 105,480 | (154) | ||
Comprehensive Loss | (2,419,483) | (5,468,854) | (7,175,033) | (12,191,720) |
Less: Net loss attributable to non-controlling interests | (41,393) | (102,398) | (178,223) | (503,903) |
COMPREHENSIVE LOSS ATTRIBUTABLE TO FUTURE FINTECH GROUP INC. STOCKHOLDERS | $ (2,378,090) | $ (5,366,456) | $ (6,996,810) | $ (11,687,817) |
Earnings (Loss) per share: | ||||
Basic loss per share from continued operation (in Dollars per share) | $ (0.16) | $ (0.25) | $ (0.42) | $ (0.57) |
Basic earnings per share from discontinued operation (in Dollars per share) | 0.01 | |||
Basic earnings (loss) per share, total (in Dollars per share) | (0.16) | (0.25) | (0.41) | (0.57) |
Diluted Earnings (Loss) per share: | ||||
Diluted loss per share from continued operation (in Dollars per share) | (0.16) | (0.24) | (0.42) | (0.55) |
Diluted earnings per share from discontinued operation (in Dollars per share) | 0.01 | |||
Diluted earnings (loss) per share, total (in Dollars per share) | $ (0.16) | $ (0.24) | $ (0.41) | $ (0.55) |
Weighted average number of shares outstanding | ||||
Basic (in Shares) | 14,645,653 | 14,214,832 | 14,645,653 | 14,214,832 |
Diluted (in Shares) | 14,687,761 | 14,772,623 | 14,687,761 | 14,772,623 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Stockholders’ Equity (Unaudited) - USD ($) | Common Stock | Additional paid-in capital | Statutory reserve | Accumulated Deficits | Accumulative Other comprehensive income | Non- controlling interests | Total |
Balance at Dec. 31, 2021 | $ 14,036 | $ 220,579,277 | $ 61,382 | $ (138,611,914) | $ (597,862) | $ (590,761) | $ 80,854,158 |
Balance (in Shares) at Dec. 31, 2021 | 14,036,253 | ||||||
Net loss from continued operation | (8,164,899) | (503,903) | (8,668,802) | ||||
Share-based payments-service | 893,250 | 893,250 | |||||
Share-based payments-omnibus equity plan | $ 610 | 1,279,130 | 1,279,740 | ||||
Share-based payments-omnibus equity plan (in Shares) | 609,400 | ||||||
Foreign currency translation adjustment | (3,522,764) | (3,522,764) | |||||
Disposition of discontinued operation | (154) | (154) | |||||
Balance at Sep. 30, 2022 | $ 14,646 | 222,751,657 | 61,382 | (146,776,967) | (4,120,626) | (1,094,664) | 70,835,428 |
Balance (in Shares) at Sep. 30, 2022 | 14,645,653 | ||||||
Balance at Jun. 30, 2022 | $ 14,036 | 221,472,527 | 61,382 | (143,245,468) | (2,285,669) | (992,266) | 75,024,542 |
Balance (in Shares) at Jun. 30, 2022 | 14,036,253 | ||||||
Net loss from continued operation | (3,531,499) | (102,398) | (3,633,897) | ||||
Share-based payments-omnibus equity plan | $ 610 | 1,279,130 | 1,279,740 | ||||
Share-based payments-omnibus equity plan (in Shares) | 609,400 | ||||||
Foreign currency translation adjustment | (1,834,957) | (1,834,957) | |||||
Balance at Sep. 30, 2022 | $ 14,646 | 222,751,657 | 61,382 | (146,776,967) | (4,120,626) | (1,094,664) | 70,835,428 |
Balance (in Shares) at Sep. 30, 2022 | 14,645,653 | ||||||
Balance at Dec. 31, 2022 | $ 14,646 | 222,751,657 | 98,357 | (152,276,434) | (3,623,005) | (1,279,580) | $ 65,685,641 |
Balance (in Shares) at Dec. 31, 2022 | 14,645,653 | 14,645,653 | |||||
Net loss from continued operation | (6,162,248) | (178,223) | $ (6,340,471) | ||||
Foreign currency translation adjustment | (940,042) | (940,042) | |||||
Disposition of discontinued operation | 105,480 | 105,480 | |||||
Balance at Sep. 30, 2023 | $ 14,646 | 222,751,657 | 98,357 | (158,333,202) | (4,563,047) | (1,457,803) | $ 58,510,608 |
Balance (in Shares) at Sep. 30, 2023 | 14,645,653 | 14,645,653 | |||||
Balance at Jun. 30, 2023 | $ 14,646 | 222,751,657 | 98,357 | (155,924,902) | (4,593,257) | (1,416,410) | $ 60,930,091 |
Balance (in Shares) at Jun. 30, 2023 | 14,645,653 | ||||||
Net loss from continued operation | (2,408,300) | (41,393) | (2,449,693) | ||||
Unrealized loss on available-for-sale securities | (114,293) | (114,293) | |||||
Foreign currency translation adjustment | 144,503 | 144,503 | |||||
Balance at Sep. 30, 2023 | $ 14,646 | $ 222,751,657 | $ 98,357 | $ (158,333,202) | $ (4,563,047) | $ (1,457,803) | $ 58,510,608 |
Balance (in Shares) at Sep. 30, 2023 | 14,645,653 | 14,645,653 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net loss | $ (6,234,991) | $ (8,668,956) |
Net income/(loss) from discontinued operation | 105,480 | (154) |
Net loss from continuing operations | (6,340,471) | (8,668,802) |
Adjustments to reconcile net income to net cash provided by operating activities | ||
Depreciation | 223,687 | 137,187 |
Amortization | 42,776 | 45,699 |
Provision of doubtful debts | 20,353 | 1,947 |
Share-based payments | 2,172,990 | |
Impairment of short term investment | 3,872 | 926,086 |
Changes in operating assets and liabilities | ||
Accounts receivable | 4,571,019 | 6,665,006 |
Notes receivable | ||
Other receivable | (3,258,809) | (1,079,100) |
Advances to suppliers and other current assets | 2,458,159 | (5,502,062) |
Accounts payable | (3,251,326) | 34,679 |
Accrued expenses | 276,952 | 288,761 |
Taxes payable | (41,093) | |
Advances from customers | (1,170,574) | 3,239,233 |
Net cash used in operating activities – Continued Operations | (6,424,362) | (1,779,469) |
Net cash provided by operating activities – Discontinued Operations | 105,480 | 0 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Purchase of property, plant and equipment | (521,239) | (59,298) |
Disposal of property and equipment | 32,608 | |
Payment of loan receivable | (19,810,956) | |
Repayment for loan receivable | 14,130,632 | 6,000,000 |
Purchase of intangible assets | (570,351) | |
Net cash provided by (used in) investing activities from Continued Operations | 13,642,001 | (14,440,605) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Payment of dividends to the non-controlling interest | (63,477) | |
Proceeds from amounts due from related parties, net | 249,068 | 452,564 |
Repayment of amounts due to related parties, net | (270,714) | (904,673) |
Notes payable | (2,893,184) | 2,816,981 |
Proceeds from loan payable | (188,215) | |
Net cash (used in) provided by financing activities | (2,914,830) | 2,113,180 |
Effect of change in exchange rate | (739,327) | (3,201,964) |
NET INCREASE (DECREASE) IN CASH AND RESTRICTED CASH | 3,668,962 | (17,308,858) |
Cash and Restricted Cash at Beginning of Year | 29,735,170 | 50,273,517 |
Cash and Restricted Cash at End of Year | 33,404,132 | 32,964,659 |
SUPPLEMENTARY DISCLOSURE OF SIGNIFICANT NON-CASH TRANSACTION | 33,404,132 | 32,964,659 |
Deferred liabilities | 263,863 | |
SUPPLEMENTAL CASH FLOW INFORMATION: | ||
Interest paid | 56,610 | |
Cash paid for income taxes | $ 67,740 | $ 9,370 |
Corporate Information
Corporate Information | 9 Months Ended |
Sep. 30, 2023 | |
Corporate Information [Abstract] | |
CORPORATE INFORMATION | 1. CORPORATE INFORMATION Future FinTech Group Inc. (the “Company”) is a holding company incorporated under the laws of the State of Florida. The main business of the Company includes supply chain financing services and trading, asset management and cross-border money transfer services. The Company has also expanded into cryptocurrency mining and cryptocurrency market data and information service business. Prior to 2019, the Company engaged in the production and sales of fruit juice concentrates, fruit juice beverages and other fruit-related products in the People’s Republic of China (“PRC”, or “China”), and overseas markets. Due to the drastically increased production cost and tightened environmental law in China, the Company has transformed its business from fruit juice manufacturing and distribution to supply chain financing services and trading, asset management and cross-border money transfer services. In March 2022, FTFT UK Limited received approval to operate as an Electronic Money Directive (“EMD”) Agent and has been registered as such with the Financial Conduct Authority (FCA), a UK regulator. This status grants FTFT UK Limited the ability to distribute or redeem e-money and provide certain financial services on behalf of an e-money institution (registration number 903050). On April 14, 2022, the Company established Future Trading (Chengdu) Co., Ltd. Its business is bulk commodities supply chain financing services and trading. On April 18, 2022, the Company and Future Fintech (Hong Kong) Limited, a wholly owned subsidiary of the Company jointly acquired 100% equity interest of KAZAN S.A., a company incorporated in Republic of Paraguay for $288. The Company owns 90% and FTFT HK owns 10% of Kazan S.A., respectively. Kazan S.A. has no operation before the acquisition. The Company is developing bitcoin and other cryptocurrency mining and related service business in Paraguay. The Company has changed its name from KAZAN S.A to FTFT Paraguay S.A. on July 28, 2022. On September 29, 2022, FTFT UK Limited completed its acquisition of 100% of the issued and outstanding shares of Khyber Money Exchange Ltd., a company incorporated in England and Wales, from Rahim Shah, a resident of United Kingdom for a total of Euros €685,000 (“Purchase Price”), pursuant to a Share Purchase Agreement (the “Agreement”) dated September 1, 2021. Khyber Money Exchange Ltd. is a money transfer company with a platform for transferring money through one of its agent locations or via its online portal, mobile platform or over the phone. Khyber Money Exchange Ltd. is regulated by the UK Financial Conduct Authority (FCA) and the parties received approval by the FCA before the formal closing of the transaction. 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. (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 HK”) and Alpha Information Service (Shenzhen) Co., Ltd., a 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 Company’s business and operations are principally conducted by its subsidiaries in the PRC, Hong Kong and UK. 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 will continue to be $0.001 par value. 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. 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 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. The reverse stock split would be reflected in our September 30, 2023 and December 31, 2022 statements of changes in stockholders’ equity, and in per share data for all periods presented. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2023 | |
Summary of Significant Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of presentation The unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and the rules and regulations of the Securities and Exchange Commission. In the opinion of management, the unaudited financial statements have been prepared on the same basis as the annual financial statements and reflect all adjustments, which include only normal recurring adjustments, necessary to present fairly the financial position as of September 30, 2023 and the results of operations and cash flows for the periods ended September 30, 2023 and 2022. The financial data and other information disclosed in these notes to the interim financial statements related to these periods are unaudited. The results for the nine months ended September 30, 2023 are not necessarily indicative of the results to be expected for any subsequent periods or for the entire year ending December 31, 2023. The balance sheet at December 31, 2022 has been derived from the audited financial statements at that date. Our contractual arrangements with the VIE and their respective shareholders allow us to (i) exercise effective control over the VIE, (ii) receive substantially all of the economic benefits of the VIE, and (iii) have an exclusive option to purchase all or part of the equity interests in the VIE when and to the extent permitted by PRC law. As a result of our direct ownership in our wholly owned subsidiary and the contractual arrangements with the VIE, we are regarded as the primary beneficiary of the VIE, and we treat it and its subsidiaries as our consolidated affiliated entities under U.S. GAAP. We have consolidated the financial results of the VIE in our condensed consolidated financial statements in accordance with U.S. GAAP Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States have been condensed or omitted pursuant to the Securities and Exchange Commission’s rules and regulations. These unaudited financial statements should be read in conjunction with our audited financial statements and notes thereto for the year ended December 31, 2022 as included in our Annual Report on Form 10-K. Discontinued Operations On June 27, 2022, Chain Cloud Mall Logistics Center (Shanxi) Co., Ltd. was dissolved and deregistered. On June 16, 2023, QR (HK) Limited was dissolved and deregistered. Based on the disposal plan and in accordance with ASC 205-20, the Company presented the operating results from these operations as a discontinued operation. Segment Information Reclassification The Company classified business segment into asset management service, supply chain financing and trading, and others. Uses of Estimates in the Preparation of Financial Statements 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. Going Concern The Company’s financial statements are prepared assuming that the Company will continue as a going concern. The Company incurred operating losses and had negative operating cash flows and may continue to incur operating losses and generate negative cash flows as the Company implements its future business plan. The Company’s operating losses amounted $6.34 million, and it had negative operating cash flows amounted $6.42 million as of September 30, 2023. These factors raise substantial doubts about the Company’s ability to continue as a going concern. The Company has raised funds through issuance of convertible notes and common stock. The ability of the Company to continue as a going concern is dependent upon its ability to successfully execute its new business strategy and eventually attain profitable operations. The accompanying financial statements do not include any adjustments that may be necessary if the Company is unable to continue as a going concern. Research and development Research and development expenses include salaries, contracted services, as well as the related expenses for our research and product development team, and expenditures relating to our efforts to develop, design, and enhance our service to our clients. The Company expenses research and development costs as they are incurred. Impairment of Long-Lived Assets In accordance with the ASC 360-10, Accounting for the Impairment or Disposal of Long-Lived Assets If such assets are considered to be impaired, the impairment to be recognized is measured as the amount by which the carrying amount of the assets exceeds the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount or fair value less cost to sell. Fair Value of Financial Instruments The Company has adopted FASB ASC Topic on Fair Value Measurements and Disclosures (“ASC 820”), which defines fair value, establishes a framework for measuring fair value in GAAP, and expands disclosures about fair value measurements. ASC 820 establishes a three-level valuation hierarchy of valuation techniques based on observable and unobservable input, which may be used to measure fair value and include the following: Level 1 - Quoted prices in active markets for identical assets or liabilities. Level 2 - Input other than Level 1 that is observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other input that is observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 - Unobservable input that is supported by little or no market activity and that is significant to the fair value of the assets or liabilities. Our cash and cash equivalents and restricted cash and short-term investments are classified within level 1 of the fair value hierarchy because they are value using quoted market price. Earnings Per Share Under ASC 260-10, Earnings Per Share Diluted EPS is calculated by using the treasury stock method, assuming conversion of all potentially dilutive securities, such as stock options and warrants. Under this method, (i) exercise of options and warrants is assumed at the beginning of the period and shares of Common Stock are assumed to be issued, (ii) the proceeds from exercise are assumed to be used to purchase Common Stock at the average market price during the period, and (iii) the incremental shares (the difference between the number of shares assumed issued and the number of shares assumed purchased) are included in the denominator of the diluted EPS computation. The numerators and denominators used in the computations of basic and diluted EPS are presented in the following table. For the nine months ended September 30, 2023: Income Share Pre-share Net loss from continuing operations attributable to Future Fintech Group, Inc. $ (6,162,248 ) 14,645,653 $ (0.42 ) Net income from discontinuing operations attributable to Future Fintech Group, Inc. $ 105,480 14,645,653 0.01 Basic EPS: Loss available to common stockholders from continuing operations $ (6,162,248 ) 14,645,653 $ (0.42 ) Income available to common stockholders from discontinuing operations $ 105,480 14,645,653 0.01 Dilutive EPS: Warrants - 42,108 - Diluted loss per share is calculated by taking net loss, divided by the diluted weighted average common shares outstanding. Diluted net loss per share equals basic net loss per share because the effect of securities convertible into common shares is anti-dilutive $ (6,162,248 ) 14,687,761 $ (0.42 ) Diluted income per share is calculated by taking net loss, divided by the diluted weighted average common shares outstanding. $ 105,480 14,687,761 0.01 For the nine months ended September 30, 2022: Income Share Pre-share Loss from continuing operations $ (8,164,899 ) 14,214,832 $ (0.57 ) Loss from discontinuing operations $ (154 ) 14,214,832 $ - Basic EPS: Loss available to common stockholders from continuing operations $ (8,164,899 ) 14,214,832 $ (0.57 ) Loss available to common stockholders from discontinuing operations $ (154 ) 14,214,832 $ - Dilutive EPS: Warrants - 557,791 - Diluted loss per share is calculated by taking net loss, divided by the diluted weighted average common shares outstanding. Diluted net loss per share equals basic net loss per share because the effect of securities convertible into common shares is anti-dilutive from continuing operations $ (8,164,899 ) 14,772,623 $ (0.34 ) Diluted loss per share is calculated by taking net loss, divided by the diluted weighted average common shares outstanding. $ (154 ) 14,772,623 $ - Three months ended September 30, 2023: Income Share Pre-share Net loss from continuing operations attributable to Future Fintech Group, Inc. $ (2,408,300 ) 14,645,653 $ (0.16 ) Net income from discontinuing operations attributable to Future Fintech Group, Inc. $ - 14,645,653 - Basic EPS: Loss available to common stockholders from continuing operations $ (2,408,300 ) 14,645,653 $ (0.16 ) Income available to common stockholders from discontinuing operations $ - 14,645,653 - Dilutive EPS: Warrants - 42,108 - Diluted loss per share is calculated by taking net loss, divided by the diluted weighted average common shares outstanding. Diluted net loss per share equals basic net loss per share because the effect of securities convertible into common shares is anti-dilutive $ (2,408,300 ) 14,687,761 $ (0.11 ) Diluted income per share is calculated by taking net loss, divided by the diluted weighted average common shares outstanding. $ - 14,687,761 0.01 Three months ended September 30, 2022: Income Share Pre-share Loss from continuing operations $ (3,531,499 ) 14,214,832 $ (0.25 ) Loss from discontinuing operations $ - 14,214,832 $ - Basic EPS: Loss available to common stockholders from continuing operations $ (3,531,499 ) 14,214,832 $ (0.25 ) Loss available to common stockholders from discontinuing operations $ - 14,214,832 $ - Dilutive EPS: Warrants - 557,791 - Diluted loss per share is calculated by taking net loss, divided by the diluted weighted average common shares outstanding. Diluted net loss per share equals basic net loss per share because the effect of securities convertible into common shares is anti-dilutive from continuing operations $ (3,531,499 ) 14,772,623 $ (0.24 ) Diluted loss per share is calculated by taking net loss, divided by the diluted weighted average common shares outstanding. $ - 14,772,623 $ - Cash and Cash Equivalents Cash and cash equivalents included cash on hand and demand deposits placed with banks or other financial institutions, which are unrestricted as to withdrawal and use and with an original maturity of three months or less. Deposits in banks in the PRC are only insured by the government up to RMB500,000, in the HK are only insured by the government up to HKD500,000, in the United Kingdom are only insured by the government up to GBP18,000, in the United States of America are only insured by the Federal Deposit Insurance Corporation up to USD250,000, and are consequently exposed to risk of loss. The Company believes the probability of a bank failure, causing loss to the Company, is remote. Cash that is restricted as to withdrawal for use or pledged as security is reported separately on the face of the consolidated balance sheets, and is not included in the total cash and cash equivalents in the consolidated statements of cash flows. Receivable and Allowances Accounts receivable are recognized and carried at the original invoice amounts less an allowance for any uncollectible amount. We have a policy of reserving for uncollectible accounts based on our best estimate of the amount of probable credit losses in our existing accounts receivable. We perform ongoing credit evaluations of our customers and maintain an allowance for potential bad debts if required. Other receivables, and loan receivables are recognized and carried at the initial amount when occurred less an allowance for any uncollectible amount. We have a policy of reserving for uncollectible accounts based on our best estimate of the amount of probable impairment losses in our existing receivable. Allowances for doubtful accounts are maintained for expected credit losses resulting from the Company’s customers’ inability to make required payments. The allowances are based on the Company’s regular assessment of various factors, including the credit-worthiness and financial condition of specific customers, historical experience with bad debts and customer deductions, receivables aging, current economic conditions, reasonable and supportable forecasts of future economic conditions, and other factors that may affect the Company’s ability to collect from customers. The Company maintains an allowance for credit losses in accordance with ASC Topic 326, Credit Losses (“ASC 326”) and records the allowance for credit losses as an offset to accounts receivable and contract assets, and the estimated credit losses charged to the allowance is classified as “bad debt expense” in the consolidated statements of comprehensive income. We determine whether an allowance for doubtful accounts is required by evaluating specific accounts where information indicates the customers may have an inability to meet financial obligations. In these cases, we use assumptions and judgment, based on the best available facts and circumstances, to record a specific allowance for those customers against amounts due to reduce the receivable to the amount expected to be collected. These specific allowances are re-evaluated and adjusted as additional information is received. The amounts calculated are analyzed to determine the total amount of the allowance. We may also record a general allowance as necessary. Direct write-offs are taken in the period when we have exhausted our efforts to collect overdue and unpaid receivable or otherwise evaluate other circumstances that indicate that we should abandon such efforts. The Company has assessed its accounts receivable including credit term and corresponding all its accounts receivables as of September 30, 2023. Bad debt expense was $(1,152,798) and $1,947 during the nine months ended September 30, 2023 and 2022, respectively. Accounts receivables of $0.95 million and nil Revenue Recognition We apply the five steps defined under ASC 606: (i) identify the contract(s) with a customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations in the contract, and (v) recognize revenue when (or as) the entity satisfies a performance obligation. We assess its revenue arrangements against specific criteria in order to determine if it is acting as principal or agent. Revenue arrangements with multiple performance obligations are divided into separate distinct goods or services. We allocate the transaction price to each performance obligation based on the relative standalone selling price of the goods or services provided. Revenue is recognized upon the transfer of control of promised goods or services to a customer. Control is generally transferred when the Company has a present right to payment and title and the significant risks and rewards of ownership of products or services are transferred to its customers. We do not make any significant judgment in evaluating when control is transferred. Revenue is recorded net of value-added tax. Revenue recognitions are as follows: Sales of coals, aluminum ingots, sand and steel The Company recognize revenue when the receipt of merchandise is confirmed by the customers, which is the point that the title of the goods is transferred to the customer. Revenue was $20.27 million and $11.49 million during the nine months ended September 30, 2023 and 2022, respectively. Sales agent services of coals, aluminum ingots, sand and steel For the sale of third-party products where the Company obtains control of the product before transferring it to the customer, the Company recognizes revenue based on the gross revenue amount billed to customers as sales of goods listed above. The Company considers multiple factors when determining whether it obtains control of third-party products, including evaluating if it can establish the price of the product, retains inventory risk for tangible products or has the responsibility for ensuring acceptability of the product. The Company recognizes net revenue as agent services for the sales of coals, aluminum ingots, sand and steel nil Asset Management Service The Company recognizes service revenue when a service is rendered, the Company issues bills to its customers and recognizes revenue according to the bills. Property, Plant and Equipment Property, plant and equipment are stated at cost less accumulated depreciation and any impairment losses. Depreciation is computed using the straight-line method over the useful lives of the assets. Major renewals and betterments are capitalized and depreciated; maintenance and repairs that do not extend the life of the respective assets are expensed as incurred. Upon disposal of assets, the cost and related accumulated depreciation are removed from the accounts and any gain or loss is included in the consolidated statements of income and comprehensive income. Depreciation related to property, plant and equipment used in production is reported in cost of sales, and includes amortized amounts related to capital leases. We estimated that the residual value of the Company’s property and equipment ranges from 3% to 5%. Property, plant and equipment are depreciated over their estimated useful lives as follows: Machinery and equipment 5-10 years Building 30 years Furniture and office equipment 3-5 years Motor vehicles 5 years Intangible Assets Acquired intangible assets are recognized based on their cost to the Company, which generally includes the transaction costs of the asset acquisition, and no gain or loss is recognized unless the fair value of noncash assets given as consideration differs from the assets’ carrying amounts on the Company’s book. These assets are amortized over their useful lives if the assets are deemed to have a finite life and they are reviewed for impairment by testing for recoverability whenever events or changes in circumstances indicate that their carrying amount may not be recoverable. The fair value of an intangible asset is the amount that would be determined if the entity used the assumptions that market participants would use if they were pricing the intangible asset. The useful life of the Company’s intangible assets is ten years, which is determined by using the time period that an intangible is estimated to contribute directly or indirectly to a Company’s future cash flows. Foreign Currency and Other Comprehensive Income (Loss) The financial statements of the Company’s foreign subsidiaries and VIE are measured using the local currency as the functional currency; however, the reporting currency of the Company is the USD. Assets and liabilities of the Company’s foreign subsidiaries have been translated into USD using the exchange rate at the balance sheet dates, while equity accounts are translated using historical exchange rate. The exchange rate we used to convert RMB to USD was 7.18:1 and 6.96:1 at the balance sheet dates of September 30, 2023 and December 31, 2022, respectively. The average exchange rate for the period has been used to translate revenues and expenses. The average exchange rates we used to convert RMB to USD were 7.01:1 and 6.61:1 for nine months ended September 30, 2023 and 2022, respectively. The exchange rate we used to convert HKD to USD was 7.82:1 and 7.80:1 at the balance sheet dates of September 30, 2023 and December 31, 2022. The average exchange rate for the period has been used to translate revenues and expenses. The average exchange rates we used to convert HKD to USD were 7.83:1 and 7.83:1 for nine months ended September 30, 2023 and 2022, respectively. The exchange rate we used to convert GBP to USD was 0.82:1 and 0.83:1 at the balance sheet dates of September 30, 2023 and December 31, 2022. The average exchange rate for the period has been used to translate revenues and expenses. The average exchange rates we used to convert GBP to USD were 0.80:1 and 0.80:1 for nine months ended September 30, 2023 and 2022, respectively. The exchange rate we used to convert AED to USD was 3.66:1 and 3.67:1 at the balance sheet dates of September 30, 2023 and December 31, 2022. The average exchange rate for the period has been used to translate revenues and expenses. The average exchange rates we used to convert AED to USD were 3.66:1 and 3.67:1 for nine months ended September 30 2023 and 2022, respectively. The exchange rate we used to convert PYG to USD was 7289.83:1 and 7322.90:1 at the balance sheet dates of September 30, 2023 and December 31, 2022. The average exchange rate for the period has been used to translate revenues and expenses. The average exchange rate we used to convert PYG to USD was 7250.00:1 and 6903.82:1 for nine months ended September 30 2023 and 2022. Translation adjustments are reported separately and accumulated in a separate component of equity (cumulative translation adjustment). Government subsidies Government subsidies primarily consist of financial subsidies received from provincial and local governments for operating a business in their jurisdictions and compliance with specific policies promoted by the local governments. For certain government subsidies, there are no defined rules and regulations to govern the criteria necessary for companies to receive such benefits, and the amount of financial subsidy is determined at the discretion of the relevant government authorities. The government subsidies of operating nature with no further conditions to be met are recorded of operating expenses in “Other income” in the consolidated statements when received. The amendments in this update require disclosures about transactions with a government that have been accounted for by analogizing to a grant or contribution accounting model to increase transparency about (1) the types of transactions, (2) the accounting for the transactions, and (3) the effect of the transactions on an entity’s financial statements. Income Taxes We use the asset and liability method of accounting for income taxes in accordance with ASC Topic 740, “Income Taxes.” Under this method, income tax expense is recognized for the amount of: (i) taxes payable or refundable for the current year and (ii) deferred tax consequences of temporary differences resulting from matters that have been recognized in an entity’s financial statements or tax returns. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the results of operations in the period that includes the enactment date. A valuation allowance is provided to reduce the deferred tax assets reported if based on the weight of the available positive and negative evidence, it is more likely than not some portion or all of the deferred tax assets will not be realized. ASC Topic 740-10-30 clarifies the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements and prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. ASC Topic 740-10-25 provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition. We have no material uncertain tax positions for any of the reporting periods presented. Goodwill The Company tests goodwill for impairment for its reporting units on an annual basis, or when events occur or circumstances indicate the fair value of a reporting unit is below its carrying value. If the fair value of a reporting unit is less than its carrying value, an impairment loss is recorded to the extent that implied fair value of the goodwill within the reporting unit is less than its carrying value. The Company’s evaluation of goodwill for impairment involves the comparison of the fair value of the reporting unit to its carrying value. The Company uses the discounted cash flow model to estimate fair value, which requires management to make significant estimates and assumptions related to forecasts of future revenue and operating margin. The company will perform annual goodwill impairment test end of the fiscal year. Short-term investments Short-term investments consist primarily of investments in fixed deposits with original maturities between three months and one year and certain investments in wealth management products and other investments that the Company has the intention to redeem within one year. Fair valued or carried at amortized costs. As of September 30, 2023 and December 31, 2022, the short-term investments amounted to $0.95 million and $0.99 million, respectively. Due to fluctuations of the quoted shares included in its investment portfolios, the Company recognized an impairment to the investment portfolio of $3,872 and $0.93 million during the nine months ended September 30, 2023 and 2022. Lease We adopted ASU No. 2016-02, Leases (Topic 842), or ASC 842, from January 1, 2020. We determine if an arrangement is a lease or contains a lease at lease inception. For operating leases, we recognize a right-of-use (“ROU”) asset and a lease liability based on the present value of the lease payments over the lease term on the consolidated balance sheets at commencement date. As most of our leases do not provide an implicit rate, we estimate our incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. The incremental borrowing rate is estimated to approximate the interest rate on a collateralized basis with similar terms and payments, and in economic environments where the leased asset is located. The ROU assets also include any lease payments made, net of lease incentives. Lease expense is recorded on a straight-line basis over the lease term. Our leases often include options to extend and lease terms include such extended terms when we are reasonably certain to exercise those options. Lease terms also include periods covered by options to terminate the leases when we are reasonably certain not to exercise those options. Share-based compensation The Company awards share options and other equity-based instruments to its employees, directors and consultants (collectively “share-based payments”). Compensation cost related to such awards is measured based on the fair value of the instrument on the grant date. The Company recognizes the compensation cost over the period the employee is required to provide service in exchange for the award, which generally is the vesting period. The amount of cost recognized is adjusted to reflect the expected forfeiture prior to vesting. When no future services are required to be performed by the employee in exchange for an award of equity instruments, and if such award does not contain a performance or market condition, the cost of the award is expensed on the grant date. The Company recognizes compensation cost for an award with only service conditions that has a graded vesting schedule on a straight-line basis over the requisite service period for the entire award, provided that the cumulative amount of compensation cost recognized at any date at least equals the portion of the grant-date value of such award that is vested at that date. Variable interest entities On July 31, 2019, Cloud Chain Network and Technology (Tianjin) Co., Limited (“CCM Tianjin” or “WFOE”, formerly known as Chain Cloud Mall Network and Technology (Tianjin) Co., Limited), E-commerce Tianjin, and Mr. Zeyao Xue and Mr. Kai Xu, citizens of China and shareholders of E-commerce Tianjin, entered into the following agreements, or collectively, the “Variable Interest Entity Agreements” or “VIE Agreements,” pursuant to which CCM Tianjin has contractual rights to control and operate the business of E-commerce Tianjin (the “VIE”). Therefore, pursuant to ASC 810, E-Commerce Tianjin is included in the Company’s consolidated financial statements since then. Pursuant to Chinese law and regulations, a foreign owned enterprise cannot apply for and hold a license for operation of certain e-commerce businesses, the category of business which the Company is conducting in China. CCM Tianjin is an indirectly wholly foreign owned enterprise of the Company. In order to comply with Chinese law and regulations, CCM Tianjin agreed to provide E-commerce Tianjin an Exclusive Operation and Use Rights Authorization to operate and use the Cloud Chain Mall System owned by CCM Tianjin. E-commerce Tianjin was incorporated by Mr. Zeyao Xue and Mr. Kai Xu solely for the purpose of holding the operation license of the Cloud Chain Mall System. Mr. Zeyao Xue is a major shareholder of the Company and the son of Mr. Yongke Xue, the president of the Company. Mr. Kai Xu was the Chief Operating Officer of the Company and currently is the Deputy General Manager of FT Commercial Group Ltd., a wholly owned subsidiary of the Company and the vice president of blockchain division of the Company. The VIE Agreements are as follows: 1) Exclusive Technology Consulting and Service Agreement by and between CCM Tianjin and E-commerce Tianjin. Pursuant to the Exclusive Technology Consulting and Service Agreement, CCM Tianjin agreed to act as the exclusive consultant of E-commerce Tianjin and provide technology consulting and services to E-commerce Tianjin. In exchange, E-commerce Tianjin agreed to pay CCM Tianjin a technology consulting and service fee, the amount of which is to be equivalent to the amount of net profit before tax of E-commerce Tianjin, payable on a quarterly basis after making up losses of previous years (if necessary) and deducting necessary costs and expenses and taxes related to the business operations of E-commerce Tianjin. Without the prior written consent of CCM Tianjin, E-commerce Tianjin may not accept the same or similar technology consulting and services provided by any third party during the term of the agreement. All the benefits and interests generated from the agreement, including but not limited to intellectual property rights, know-how and trade secrets, will be CCM Tianjin’s sole and exclusive property. This agreement has a term of 10 years and may be extended unilaterally by CCM Tianjin with CCM Tianjin’s written confirmation prior to the expiration date. E-commerce Tianjin cannot terminate the agreement early unless CCM Tianjin commits fraud, gross negligence or illegal acts, or becomes bankrupt or winds up. 2) Exclusive Purchase Option Agreement by and among CCM Tianjin, E-commerce Tianjin, Mr. Zeyao Xue and Mr. Kai Xu. Pursuant to the Exclusive Purchase Option Agreement, Mr. Zeyao Xue and Mr. Kai Xu granted to CCM Tianjin and any party designated by CCM Tianjin the exclusive right to purchase, at any time during the term of this agreement, all or part of the equity interests in E-commerce Tianjin, or the “Equity Interests,” at a purchase price equal to the registered capital paid by Mr. Zeyao Xue and Mr. Kai Xu for the Equity Interests, or, in the event that applicable law requires an appraisal of the Equity Interes |
Variable Interest Entity
Variable Interest Entity | 9 Months Ended |
Sep. 30, 2023 | |
Variable Interest Entity [Abstract] | |
VARIABLE INTEREST ENTITY | 3. VARIABLE INTEREST ENTITY The carrying amount of the VIE’s consolidated assets and liabilities are as follows: September 30, December 31, 2023 2022 Cash and cash equivalents $ 10,549 $ 12,684 Other receivables 745 768 Other current assets 7,863 14,371 Total current assets 19,157 27,823 Property and equipment, net 71 98 Intangible assets - 88,302 Total assets 19,228 116,223 Total liabilities (240,266 ) (248,964 ) Net assets $ (221,038 ) $ (132,741 ) September 30, December 31, 2023 2022 Current liabilities: Accounts payable $ 18,098 $ 18,657 Accrued expenses and other payables 5,025 6,455 Advances from customers 2,569 2,648 Amount due to related party 214,574 221,204 Total current liabilities 240,266 248,964 Total liabilities $ 240,266 $ 248,964 The summarized operating results of the VIE’s are as follows: Three Months Ended Nine Months Ended 2023 2022 2023 2022 Revenue $ (355 ) $ 1,378 $ 72,455 $ 2,029 Gross profit (6,573 ) 1,390 3,255 2,029 Net loss (180,198 ) (48,517 ) (199,756 ) (143,424 ) |
Accounts Receivable
Accounts Receivable | 9 Months Ended |
Sep. 30, 2023 | |
Accounts Receivable [Abstract] | |
ACCOUNTS RECEIVABLE | 4. ACCOUNTS RECEIVABLE Accounts receivable, net consist of the following: September 30, December 31, 2023 2022 Supply Chain Financing/Trading $ 1,816,911 $ 6,624,654 Asset management service 1,400,416 1,145,518 Others $ 8,326 $ 26,500 Total accounts receivable, net $ 3,225,653 $ 7,796,672 The following table sets forth our concentration of accounts receivable, net of specific allowances for doubtful accounts. September 30, December 31, 2023 2022 Debtor A 33.05 % 46.08 % Debtor B 26.92 % 15.65 % Debtor C 21.15 % 14.26 % Total accounts receivable, net 81.12 % 75.99 % |
Other Receivables
Other Receivables | 9 Months Ended |
Sep. 30, 2023 | |
Other Receivables [Abstract] | |
OTHER RECEIVABLES | 5. OTHER RECEIVABLES As of September 30, 2023, the balance of other receivables was $5.89 million. As of April 22, 2022 and January 31, 2023, FTFT Super Computing Inc. entered into a “Electricity Sales and Purchase Agreement” with a third-party seller. FTFT Super Computing Inc. provided an initial amount of Adequate Assurance to the seller in the form of a cash deposit in the amount of $1.86 million and has receivables from pre purchase electricity $0.17 million. On February 3, 2023, Future Fintech Group Inc. entered into a “Consulting Agreement” with a third party for its professional service of potential acquisition projects. Future Fintech Group Inc. provided initial amount of cash deposit to the third party in the amount of $2.40 million. In addition, other receivables included total $1.46 million deposit paid and prepayments to third parties. As of December 31, 2022, the balance of other receivables was $2.65 million. On October 1, 2022, FTFT UK Limited (the “Buyer”), a wholly owned subsidiary of the Company acquired 100% equity interest of Khyber Money Exchange Ltd. (“Khyber”) for £786,887. Buyer deposited £400,000 for cash balance expected to be left in the bank account of Khyber at the closing to the Buyer’s solicitors’ client account upon the final closing of the acquisition, and the Buyer’s solicitors shall refund the amount after deducting the cash balance in Khyber’s account upon closing. As of January 9, 2023, the Company has received refund $0.24 million. As of April 22, 2022, FTFT Super Computing Inc. entered into a “Electricity Sales and Purchase Agreement” with a third-party seller. FTFT Super Computing Inc. provided an initial amount of Adequate Assurance to the seller in the form of a cash deposit in the amount of $1.00 million and has receivables from resale of electricity $0.24 million. In addition, other receivables included total $1.17 million deposit paid and prepayments to third parties. |
Loan Receivables
Loan Receivables | 9 Months Ended |
Sep. 30, 2023 | |
Loan Receivables [Abstract] | |
LOAN RECEIVABLES | 6 LOAN RECEIVABLES As of September 30, 2023, the balance of loan receivables was $4.92 million, which was from a third party. On March 10, 2022, Future FinTech (Hong Kong) Limited (“FTFT HK”), a wholly owned subsidiary of the Company, entered into a “Loan Agreement” with a third party. Pursuant to the Loan Agreement, FTFT HK loaned an amount of $5.00 million to the third party at the annual interest rate of 10% from March 10, 2022 to September 9, 2024. To strengthen the liquidity, the Company negotiated with the borrower to early settle part of the loan. As of April 17, 2023, the Company has received repayment $2.16 million. On May 31, 2022, FTFT HK entered into a “Loan Agreement” with the same third party. Pursuant to the Loan Agreement, FTFT HK loaned an amount of $6.36 million to the third party at the annual interest rate of 10% from May 31, 2022 to May 30,2023. To strengthen the liquidity, the Company negotiated with the borrower to early settle part of the loan. As of April 17, 2023, the Company has received repayment $6.36 million. On December 26, 2022, FTFT HK entered into a “Loan Agreement” with the same third party. Pursuant to the Loan Agreement, FTFT HK loaned an amount of $0.40 million to the third party at the annual interest rate of 10% from December 26, 2022 to March 26, 2023. As of April 17, 2023, the Company has received repayment $0.40 million. On July 14, 2022, Future Private Equity Fund Management (Hainan) Co., Limited entered into a “Loan Agreement” with a third party. Pursuant to the Loan Agreement, Future Private Equity Fund Management (Hainan) Co., Limited loaned an amount of $6.92 million (RMB50 million) to the third party at the annual interest rate of 8% from July 15, 2022 to July 14, 2023, guarantee by Junde Chen. To strengthen the liquidity, the Company negotiated with the borrower to early settle part of the loan. As of April 17, 2023, the Company has received repayment $4.83 million (RMB35 million). The amount of $2.08 million (RMB15 million) will be repaid within 12 months. As of December 31, 2022, the balance of loan receivables was $19.16 million, which was from a third party. On September 8, 2021, FUCE Future Supply Chain (Xi’an) Co., Ltd., a wholly owned subsidiary of the Company, entered into a “Loan Agreement” with a third party. Pursuant to the Loan Agreement, FUCE Future Supply Chain (Xi’an) Co., Ltd. loaned an amount of $0.22 million (RMB1.5 million) to the third party at the annual interest rate of 5.25% from September 8, 2021 to September 6, 2023. As of March 30, 2023, the Company has received repayment $0.22 million. On March 10, 2022, FTFT HK entered into a “Loan Agreement” with a third party. Pursuant to the Loan Agreement, FTFT HK loaned an amount of $5.00 million to the third party at the annual interest rate of 10% from March 10, 2022 to September 9, 2024. To strengthen the liquidity, the Company negotiated with the borrower to early settle part of the loan. As of April 17, 2023, the Company has received repayment $2.16 million. On May 31, 2022, FTFT HK entered into a “Loan Agreement” with a third party. Pursuant to the Loan Agreement, FTFT HK loaned an amount of $6.36 million to the same third party at the annual interest rate of 10% from May 31, 2022 to May 30,2023. To strengthen the liquidity, the Company negotiated with the borrower to early settle part of the loan. As of April 17, 2023, the Company has received repayment $6.36 million. On December 26, 2022, FTFT HK entered into a “Loan Agreement” with a third party. Pursuant to the Loan Agreement, FTFT HK loaned an amount of $0.40 million to the same third party at the annual interest rate of 10% from December 26, 2022 to March 26, 2023. As of April 17, 2023, the Company has received repayment $0.40 million. On July 14, 2022, Future Private Equity Fund Management (Hainan) Co., Limited entered into a “Loan Agreement” with a third party. Pursuant to the Loan Agreement, Future Private Equity Fund Management (Hainan) Co., Limited loaned an amount of $7.28 million (RMB50 million) to the third party at the annual interest rate of 8% from July 15, 2022 to July 14, 2023, guarantee by Junde Chen. To strengthen the liquidity, the Company negotiated with the borrower to early settle part of the loan. As of April 17, 2023, the Company has received repayment $5.09 million (RMB35 million). The amount of $2.18 million (RMB15 million) will be repaid within 12 months. |
Short - Term Investment
Short - Term Investment | 9 Months Ended |
Sep. 30, 2023 | |
Short Term Investment [Abstract] | |
SHORT - TERM INVESTMENT | 7. SHORT - TERM INVESTMENT As of September 30, 2023, the balance of short - term investments were $0.95 million. On September 6, 2021, Future Private Equity Fund Management (Hainan) Co., Ltd. invested RMB13,000,000 ($1.79 million) to entrust Shanghai Yuli Enterprise Management Consulting Firm to invest in various types of investment portfolios. According to the market value, the Company’s balance of the short - term investment was $0.95 million on September 30, 2023. Due to fluctuations of the quoted shares included in its investment portfolios, the Company recognized an impairment to the investment portfolio of $3,872. As of December 31, 2022, the balance of short - term investments were $0.99 million. On September 6, 2021, Future Private Equity Fund Management (Hainan) Co., Ltd. invested RMB13,000,000 ($1.87 million) to entrust Shanghai Yuli Enterprise Management Consulting Firm to invest in various types of investment portfolios. According to the market value, the Company’s balance of the short - term investments was $0.99 million on December 31, 2022. Due to fluctuations of the quoted shares included in its investment portfolios, the Company recognized an impairment to the investment portfolio of $0.91 million. |
Other Current Assets
Other Current Assets | 9 Months Ended |
Sep. 30, 2023 | |
Other Current Assets [Abstract] | |
OTHER CURRENT ASSETS | 8. OTHER CURRENT ASSETS The amount of other current assets consisted of the followings: September 30, December 31, 2023 2022 Prepayments for Supply Chain Financing/Trading $ 54,405 $ 3,766,643 Prepayments for Sand and Steel Supply Chain Financing/Trading 1,485,999 - Prepaid expenses 92,499 72,544 Others 579,202 831,077 Total $ 2,212,105 $ 4,670,264 |
Goodwill
Goodwill | 9 Months Ended |
Sep. 30, 2023 | |
Goodwill [Abstract] | |
GOODWILL | 9. GOODWILL As of September 30, 2023 and December 31, 2022, the balance of goodwill mainly represented an amount of $13.98 million that arose from acquisition of Nice Talent Asset Management Limited (“Nice Talent”) in 2021 and Khyber Money Exchange Ltd., in 2022. On August 6, 2021, the Company through its wholly owned subsidiary Future FinTech (Hong Kong) Limited., completed its acquisition of 90% of the issued and outstanding shares of Nice Talent from Joy Rich Enterprises Limited for HK$144,000,000 (the “Purchase Price”) which shall be paid in the shares of common stock of the Company (the “Company Shares”). 60% of the Purchase Price ($11.22 million) was paid in 2,244,156 pre reverse stock split shares of common stock of the Company on August 4, 2021. 40% of the Purchase Price ($7.39 million) in two installments for 20% each shall be paid in shares of common stock of the Company upon the completion of the audited reports for Nice Talent for each of the years ended on December 31, 2021 and December 31, 2022, respectively. On October 1, 2022, FTFT UK Limited, a wholly owned subsidiary of the Company, acquired 100% equity interest of Khyber Money Exchange Ltd., a company incorporated in England and Wales, for £786,887 ($0.95 million). The Company recorded $2.21 million of impairment loss in fiscal year 2022 related with goodwill mainly arose from acquisition of Nice Talent Asset Management Limited and FTFT Finance UK Limited (formerly known as Khyber Money Exchange Ltd.). Goodwill impairment test as of December 31, 2022 using compare the carrying amount of the reporting unit (including goodwill) with its fair value. If the carrying amount exceeds the fair value, compare the implied fair value of the reporting unit’s goodwill with the carrying amount of goodwill. If the carrying amount of goodwill exceeds the implied fair value, an impairment loss should be recognized. |
Acquisition
Acquisition | 9 Months Ended |
Sep. 30, 2023 | |
Acquisition [Abstract] | |
ACQUISITION | 10. ACQUISITION Nice Talent On August 6, 2021 (“Acquisition Date”), the Company through its wholly owned subsidiary Future FinTech (Hong Kong) Limited., completed its acquisition of 90% of the issued and outstanding shares of Nice Talent from Joy Rich Enterprises Limited for HK$144,000,000 (the “Purchase Price”) which shall be paid in the shares of common stock of the Company (the “Company Shares”). 60% of the Purchase Price ($11.22 million) was paid in 2,244,156 pre reverse stock split shares of common stock of the Company on August 4, 2021. 40% of the Purchase Price ($7.39 million) in two installments for 20% each shall be paid in shares of common stock of the Company upon the completion of the audited reports for Nice Talent of the years ended on December 31, 2021 and 2022, respectively. Nice Talent has met the performance requirements for the year ended on December 31, 2021 and 2022. The 40% of the Purchase Price has been paid in the shares of common stock of the Company to Joy Rich on October 17, 2023. The transaction was accounted for in accordance with the provisions of ASC 805-10, Business Combinations. The Company retained an independent appraisal firm to advise management in the determination of the fair value of the various assets acquired and liabilities assumed. The values assigned in these financial statements represent management’s best estimate of fair values as of the Acquisition Date. As required by ASC 805-20, Business Combinations—Identifiable Assets and Liabilities, and Any Noncontrolling Interest, management conducted a review to reassess whether they identified all the assets acquired and all the liabilities assumed, and followed ASC 805-20’s measurement procedures for recognition of the fair value of net assets acquired. The following table summarizes the allocation of estimated fair values of net assets acquired and liabilities assumed: Accounts receivable $ 1,407,902 Other receivables 27,701 Other current assets 7,039 Property, plant and equipment, net 53,577 Amount Due from Related Party 38,323 Accrued expenses and other payables (498,515 ) Net identifiable assets acquired $ 1,036,027 Less: non-controlling interests 131,165 Add: goodwill 17,164,598 Total purchase price for acquisition net of $275,624 of cash $ 18,069,460 The Company has included the operating results of Nice Talent in its consolidated financial statements since the Acquisition Date. Khyber Money Exchange Ltd. On October 1, 2022, FTFT UK Limited, a wholly owned subsidiary of the Company acquired 100% equity interest of Khyber Money Exchange Ltd., a company incorporated in England and Wales, for £786,887 ($0.95 million). The Company has changed its name from Khyber Money Exchange Ltd., to FTFT Finance UK Limited on October 11, 2022. The following table summarizes the allocation of estimated fair values of net assets acquired and liabilities assumed: Other receivables $ 242,087 Property, plant and equipment, net 584 Accrued expenses and other payables (89,888 ) Net identifiable assets acquired $ 152,783 Add: goodwill 628,938 Total purchase price for acquisition net of $166,676 of cash $ 781,721 The Company has included the operating results of FTFT Finance UK Limited in its consolidated financial statements since October 1, 2022. |
Leases
Leases | 9 Months Ended |
Sep. 30, 2023 | |
Leases [Abstract] | |
LEASES | 11. LEASES The Company’s non-cancellable operating leases consist of leases for office space. The Company is the lessee under the terms of the operating leases. For the nine months ended September 30, 2023, the operating lease cost was $0.80 million. The Company’s operating leases have remaining lease terms of approximately 42 months. As of September 30, 2023, the weighted average remaining lease term and weighted average discount rate were 3.50 years and 4.75%, respectively. Maturities of lease liabilities were as follows: Operating As of September 30, Lease From October 1, 2023 to September 30, 2024 $ 358,374 From October 1, 2024 to September 30, 2025 204,000 From October 1, 2025 to September 30, 2026 204,000 From October 1, 2026 to September 30, 2027 102,000 Total $ 868,374 Less: amounts representing interest $ 65,394 Present Value of future minimum lease payments 802,980 Less: Current obligations 289,781 Long term obligations $ 513,199 The Company leases office space and equipment under various short-term operating leases. As permitted by ASC 842, the Company has elected the practical expedient for short-term leases, whereby lease assets and lease liabilities are not recognized on the balance sheet. Short term leases cost was $0.17 million for nine months ended September 30, 2023. |
Property and Equipment
Property and Equipment | 9 Months Ended |
Sep. 30, 2023 | |
Property and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT | 12. PROPERTY AND EQUIPMENT Property and equipment consist of the following: September 30, December 31, 2023 2022 Office equipment, fixtures and furniture $ 544,645 $ 491,022 Vehicle 850,026 798,955 Building 37,652 37,785 Subtotal 1,432,323 1,327,762 Less: accumulated depreciation and amortization (491,077 ) (277,094 ) Construction in progress 3,691,710 3,372,301 Impairment (5,518 ) (5,688 ) Total $ 4,627,438 $ 4,417,281 Depreciation expense included in general and administration expenses for the nine months ended September 30, 2023 and 2022 was $223,687 and $137,187, respectively. Depreciation expense included in cost of sales for the nine months ended September 30, 2023 and 2022 was nil |
Intangible Assets
Intangible Assets | 9 Months Ended |
Sep. 30, 2023 | |
Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS | 13. INTANGIBLE ASSETS Intangible assets consist of the following: September 30, December 31, 2023 2022 Trademarks $ 836 862 System and software 2,518,547 2,578,647 Subtotal 2,519,383 2,579,509 Less: accumulated depreciation and amortization (237,536 ) (199,151 ) Less: impairment (1,806,554 ) (1,862,289 ) Total $ 475,293 $ 518,069 Amortization expense included in general and administration expenses for the nine months ended September 30, 2023 and 2022 was $42,776 and $45,699, respectively. Amortization expense included in cost of sales for the nine months ended September 30, 2023 and 2022 was nil The estimated amortization is as follows: As of September 30, 2023 Estimated From October 1, 2023 to September 30, 2024 $ 57,035 From October 1, 2024 to September 30, 2025 57,035 From October 1, 2025 to September 30, 2026 57,035 From October 1, 2026 to September 30, 2027 57,035 From October 1, 2027 to September 30, 2028 57,035 Thereafter 190,118 Total $ 475,293 |
Note Payable
Note Payable | 9 Months Ended |
Sep. 30, 2023 | |
Note Payable [Abstract] | |
NOTE PAYABLE | 14. NOTE PAYABLE Note payable consist of the following: Issue date Principal Mature date Fee FUCE Future Supply Chain (Xi’an) Co., Ltd. December 19, 2022 696,398 December 19, 2023 0.05 % Total $ 696,398 At maturity, the Notes are payable at their principal amount thereon. The occurring with respect to any of the Company’s indebtedness, an event of default resulting in accelerated maturity or a failure to pay principal, interest or premium when due, the overdue interest shall be charged at 0.05% per day, without the need to notify the applicant and sign another loan contract. As of September 30, 2023, there was no such event of default. |
Account Payables
Account Payables | 9 Months Ended |
Sep. 30, 2023 | |
Account Payables [Abstract] | |
ACCOUNT PAYABLES | 15. ACCOUNT PAYABLES The amount of account payables were consisted of the followings: September 30, December 31, 2023 2022 Supply Chain Financing/Trading payment $ 334,153 $ 3,584,920 Others 18,098 18,657 Total $ 352,251 $ 3,603,577 |
Accrued Expenses and Other Paya
Accrued Expenses and Other Payables | 9 Months Ended |
Sep. 30, 2023 | |
Accrued Expenses and Other Payables [Abstract] | |
ACCRUED EXPENSES AND OTHER PAYABLES | 16. ACCRUED EXPENSES AND OTHER PAYABLES The amount of accrued expenses and other payables consisted of the followings: September 30, December 31, 2023 2022 Legal fee and other professionals $ 64,511 $ 533,048 Wages and employee reimbursement 136,605 763,983 Suppliers 871,076 708,287 Accruals 1,419,016 208,938 Total $ 2,491,208 $ 2,214,256 |
Advances from Customers
Advances from Customers | 9 Months Ended |
Sep. 30, 2023 | |
Advances from Customers [Abstract] | |
ADVANCES FROM CUSTOMERS | 17. ADVANCES FROM CUSTOMERS The amount of advances from customers consisted of the followings: September 30, December 31, 2023 2022 Coal and Aluminum Ingots Supply Chain Financing/Trading $ 313 $ 1,233,592 Others 65,354 2,649 Total $ 65,667 $ 1,236,241 |
Deferred Liabilities
Deferred Liabilities | 9 Months Ended |
Sep. 30, 2023 | |
Deferred Liabilities [Abstract] | |
DEFERRED LIABILITIES | 18. DEFERRED LIABILITIES As of September 30, 2023 and December 31, 2022, the balance of deferred liabilities mainly represented an amount of $7.39 million that arose from the payment for the remaining 40% of the Purchase Price of the acquisition of Nice Talent Asset Management Limited (“Nice Talent”). 20% and 20% of the Purchase Price in two installments for 20% each shall be paid in shares of common stock of the Company upon the completion of the audited reports for Nice Talent for the years ended on December 31, 2021 and 2022, respectively. The 40% of the Purchase Price has been paid in the shares of common stock of the Company on October 17, 2023. |
Related Party Transaction
Related Party Transaction | 9 Months Ended |
Sep. 30, 2023 | |
Related Party Transaction [Abstract] | |
RELATED PARTY TRANSACTION | 19. RELATED PARTY TRANSACTION As of September 30, 2023, the amounts due to the related parties were consisted of the followings: Name Amount Relationship Note Zhi Yan 204,610 General Manager of a subsidiary of the Company Accrued expenses, interest free and payment on demand. Ming Yi 16,638 Chief Financial Officer of the Company Accrued expenses, interest free and payment on demand. Reits (Beijing) Technology Co., Ltd 14,102 Zhi Yan is the legal representative of this company Acquisition of intangibles upon the full completion of the online platform pursuant to an agreement originally entered between parties before Zhi Yan became a related party. The amount is interest free and payment on demand. Total $ 235,350 As of September 30, 2023, the amounts due from the related parties were consisted of the followings: Name Amount Relationship Note Kai Xu 50,687 Deputy General Manager of a subsidiary of the Company Prepaid expenses, interest free and payment on demand. Yang Liu 294 Chief Operating Officer of the Company* Prepaid expenses, interest free and payment on demand. Total $ 50,981 * Mr. Yang Liu resigned as Chief Operating Officer of the Company on July 27, 2023 and remains as an officer of a subsidiary of the Company. During nine months ended September 30, 2023, the Company had the following transactions with related parties: Name Amount Relationship Note JKNDC Limited $ (5,744 ) A company owned by the minority shareholder of NTAM Other income JKNDC Limited 960,312 A company owned by the minority shareholder of NTAM Cost of revenue- Asset management service payable to JKNDC Alpha Yield Limited 411,456 A director of NTAM is a shareholder of this company Consultancy fee payable to Alpha Yield Nice Talent Partner Limited 344,668 A company owned by the minority shareholder of NTAM Consultancy fee payable to Nice Talent Partner As of December 31, 2022, the amount due to the related parties was consisted of the followings: Name Amount Relationship Note Reits (Beijing) Technology Co., Ltd 14,538 Zhi Yan is the legal representative of this company Acquisition of intangibles upon the full completion of the online platform pursuant to an agreement originally entered between parties before Zhi Yan was the general manager of our subsidiary. Zhi Yan 230,281 General Manager of a subsidiary of the Company Other payables, interest free and payment on demand. Total $ 244,819 As of December 31, 2022, the amount due from the related parties was consisted of the followings: Name Amount Relationship Note Kai Xu $ 16 Deputy General Manager of a subsidiary of the Company Advance to the officer, interest free and payment on demand. Ming Yi 12,135 Chief Financial Officer of the Company Advance to the officer, interest free and payment on demand. Jing Chen 971 Vice president of the Company Advance to the officer, interest free and payment on demand. Ola Johannes Lind 2,168 Chief Executive Officer of the FTFT Capital Investments L.L.C. and Chief Strategy Officer of the Company Advance to the officer, interest free and payment on demand. Wong Tai Kue 37,836 NTAM’s Director Advance to the directors Amount is interest free and payment on demand. Total $ 53,126 During nine months ended September 30, 2022, the Company had the following transactions with related parties: Name Amount Relationship Note Nice Talent Partner Limited 242,544 A company owned by the minority shareholder of NTAM Consultancy fee payable to Nice Talent Partner * The related party transactions have been approved by the Company’s Audit Committee. |
Income Tax
Income Tax | 9 Months Ended |
Sep. 30, 2023 | |
Income Tax [Abstract] | |
INCOME TAX | 20. INCOME TAX The Company is incorporated in the United States of America and is subject to United States federal taxation. The applicable tax rate is 21% in 2023 and 2022. No provisions for income taxes have been made, as the Company had no U.S. taxable income for the nine months ended September 30, 2023 and 2022. For the nine months ended September 30, 2023 and 2022, the Company had current income tax expenses of $72,287 and $513,178, respectively. The Company evaluates the level of authority for each uncertain tax position (including the potential application of interest and penalties) based on the technical merits, and measures the unrecognized benefits associated with the tax positions. For the nine months ended September 30, 2023, the Company had no unrecognized tax benefits. Due to uncertainties surrounding future utilization, the Company estimates there will not be sufficient future income to realize the deferred tax assets for certain subsidiaries and a VIE. The amount of unrecognized deferred tax liabilities for temporary differences related to the dividend from foreign subsidiaries is not determined because such determination is not practical. The Company has not provided deferred taxes on undistributed earnings attributable to its PRC and Hong Kong subsidiaries as they are to be permanently reinvested. The Company had no material adjustments to its liabilities for unrecognized income tax benefits according to the provisions of ASC Topic 740, Income Taxes Effective on January 1, 2008, the PRC Enterprise Income Tax Law, EIT Law, and Implementing Rules imposed a unified enterprise income tax rate of 25% on all domestic-invested enterprises and foreign-invested enterprises in the PRC, unless they qualify under certain limited exceptions. The tax rate for pre-tax profits below RMB 1 million is 2.5%; the tax rate for pre-tax profits between RMB1 million to RMB 3 million is 10%. E-Commerce Tianjin, Future Supply (Chengdu) Co., Ltd. and Future Big Data (Chengdu) Co., Ltd. were subject to an enterprise income tax rate of 2.5% and 10%. Other subsidiaries and VIE were subject to an enterprise income tax rate of 25%. Future Fin Tech (HongKong) Limited, QR (HK) Limited and Nice Talent Asset Management Limited is incorporated in Hong Kong and is subject to Hong Kong Profits Tax on the taxable income as reported in its statutory financial statements adjusted in accordance with relevant Hong Kong tax laws. The applicable tax rate is 16.5% in Hong Kong. FTFT UK Limited and FTFT Finance UK Limited are incorporated in United Kingdom and are subject to United Kingdom Profits Tax on the taxable income as reported in its statutory financial statements adjusted in accordance with relevant United Kingdom tax laws. The applicable tax rate is 19% in United Kingdom. FTFT Capital investments L.L.C is incorporated in Dubai, United Arab Emirates. The applicable tax rate is nil Digipay Fintech Limited is incorporated in British Virgin Island. The applicable tax rate is nil FTFT Paraguay S.A. is incorporated in Republic of Paraguay. The applicable tax rate is 10% in Paraguay. Reconciliation of the differences between the statutory EIT rate applicable to profits of the consolidated entities and the income tax expenses of the Company: September 30, September 30, Loss before taxation $ (6,268,184 ) $ (8,155,624 ) PRC statutory tax rate 25 % 25 % Computed expected benefits (1,567,046 ) (2,038,906 ) Others, primarily the differences in tax rates 385,370 603,823 Effect of tax losses not recognized 1,253,963 1,948,261 Total $ 72,287 $ 513,178 |
Impairment Loss
Impairment Loss | 9 Months Ended |
Sep. 30, 2023 | |
Impairment Loss [Abstract] | |
IMPAIRMENT LOSS | 21. IMPAIRMENT LOSS The Company recorded $3,872 |
Share Based Compensation
Share Based Compensation | 9 Months Ended |
Sep. 30, 2023 | |
Share Based Compensation [Abstract] | |
SHARE BASED COMPENSATION | 22. SHARE BASED COMPENSATION On February 1, 2023, the Company effected 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. Consulting Service Agreement On January 25, 2020, the Company entered into a Consulting Service Agreement (the “Agreement”) with Dragon Investment Holding Limited (Malta) (the “Consultant”), a company incorporated in Malta, pursuant to which Consultant will: (i) help the Company to locate new merger projects globally, develop new merger strategy and provide the Company with at least five (5) merger and acquisition targets that have synergy with the Company’s business and development plans and could clearly contribute to the Company’s strategic goals each year; (ii) help the Company to map out new growth strategies in addition to its current business; (iii) work with the Company to explore new lines of business and associated growth strategies; and (iv) conduct market research and evaluating variable projects and providing feasibility studies per Company’s request from time to time. The term of the Agreement is three years. In consideration of the services to be provided by the Consultant to the Company, the Company agrees to pay the Consultant a three-year consulting fee totaling $3.0 million. The Company shall issue a total of 3,750,000 restricted shares of the Company Common Stock (the “Consultant Shares”) at a price of $0.794 per share (the closing price of the Agreement date), as the payment for the abovementioned consultant fee to the Consultant. On February 23, 2020, the Company issued the Consultant Shares pursuant to the Agreement, of which 1,500,000 shares were released to the Consultant immediately, 1,125,000 and 1,125,000 shares, respectively, will be held by the Company and released to the Consultant on January 25, 2021 and January 25, 2022 if this Agreement has not been terminated and there has been no breach of the Agreement by the Consultant at such time. If the second and/or third release of the shares mentioned above does not occur, such shares shall be returned to the Company as treasury shares. The shares contemplated in the Agreement were issued pursuant to the exemption from registration provided by Regulation S promulgated under the Securities Act of 1933, as amended. For the year ended December 31, 2020, the Company recorded stock related compensation of $1.19 million, based on the stock closing price of $0.794 on the Agreement date, for the 1,500,000 shares which were released to the Consultant immediately upon issuance. On January 25, 2021, the Company recorded stock related compensation of $0.89 million, based on the stock closing price of $0.794 on the date of the Agreement, for the 1,125,000 shares which were released to the Consultant on January 25, 2021. On January 25, 2022, the Company released the final 1,125,000 shares to the Consultant and the Company has recognized stock related compensation of $0.89 million for the 1,125,000 shares. The share numbers are pre-reverse stock split effected on February 1, 2023. Restricted net assets PRC laws and regulations permit payments of dividends by the Company’s subsidiaries incorporated in the PRC only out of their retained earnings, if any, as determined in accordance with PRC accounting standards and regulations. In addition, the Company’s subsidiaries incorporated in the PRC are required to annually appropriate 10% of their net income to the statutory reserve prior to payment of any dividends, unless the reserve has reached 50% of their respective registered capital. Furthermore, registered share capital and capital reserve accounts are also restricted from distribution. As a result of the restrictions described above and elsewhere under PRC laws and regulations, the Company’s subsidiaries incorporated in the PRC are restricted in their ability to transfer a portion of their net assets to the Company in the form of dividends. The restriction amounted to $26.61 million (RMB191,062,532) as of September 30, 2023. Except for the above or disclosed elsewhere, there is no other restriction on the use of profits generated by the Company’s subsidiaries to satisfy any obligations of the Company. Payments-omnibus equity plan On July 12, 2022 (the “Grant Date”), the Compensation Committee of the Board of Directors (the “Board”) of the Company granted 3,047,000 shares of common stock of the Company, par value $0.001 (the “Shares”), pursuant to the Company’s 2020 Omnibus Equity Plan, to certain officers and employees of the Company and its subsidiaries (the “Grantees”), including: 800,000 shares to Shanchun Huang, Chief Executive Officer of the Company; 800,000 shares to Yongke Xue, President of the Company; 100,000 shares to Ming Yi, Chief Financial Officer of the Company, 547,000 shares to Peng Lei, general manager of a subsidiary of the Company, 300,000 shares to Pang Dong, general manager of a subsidiary the Company, and 500,000 shares to Kai Xu, Deputy General Manager of a subsidiary of the Company and vice president of blockchain division of the Company (collectively, the “Grants”). 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 July 12, 2022. As the closing price of the Company stock was $0.42 on July 12, 2022, the Company recorded an expense of $1.28 million in the third quarter of fiscal year 2022. As of the date of this report, the Shares have been issued to the Grantees. The share numbers are pre-reverse stock split effected on February 1, 2023. |
Segment Reporting
Segment Reporting | 9 Months Ended |
Sep. 30, 2023 | |
Segment Reporting [Abstract] | |
SEGMENT REPORTING | 23. SEGMENT REPORTING In its operation of the business, management, including our chief operating decision maker, who is our Chief Executive Officer, reviews certain financial information, including segmented internal profit and loss statements prepared on a basis consistent with GAAP. The Company operates in three segments: supply chain financing service and trading business, asset management service and others. The Company began to provide supply chain financing services during the second quarter of 2021 and the Company acquired Nice Talent and started to provide asset management services since August 2021. The Company began to provide sand and steel supply chain financing services during the first quarter of 2023. Some of our operation might not individually meet the quantitative thresholds for determining reportable segments and we determine the reportable segments based on the discrete financial information provided to the chief operating decision maker. The chief operating decision maker evaluates the results of each segment in assessing performance and allocating resources among the segments. Since there is an overlap of services and products between different subsidiaries of the Company, the Company does not allocate operating expenses and assets based on the product segments. Therefore, operating expenses and asset information by segment are not presented. Segment profit represents the gross profit of each reportable segment. Three months ended September 30, 2023 Asset Supply chain Others Total Reportable segment revenue $ 3,272,585 $ 19,991,244 $ 489,896 $ 23,753,725 Inter-segment loss - - - - Revenue from external customers $ 3,272,585 19,991,244 489,896 23,753,725 Segment gross profit $ 1,139,039 $ 59,050 $ 192,769 $ 1,390,858 Three months ended September 30, 2022 Asset Supply chain Others Total Reportable segment revenue $ 4,118,065 $ 7,839,635 $ 1,319 $ 11,959,019 Inter-segment loss - - - - Revenue from external customers $ 4,118,065 $ 7,839,635 $ 1,319 $ 11,959,019 Segment gross profit $ 1,355,246 $ 136,561 $ 1,319 $ 1,493,126 Nine months ended September 30, 2023: Asset Supply chain Others Total Reportable segment revenue $ 9,690,714 $ 20,472,036 $ 793,931 $ 30,956,681 Inter-segment loss - - - - Revenue from external customers $ 9,690,714 20,472,036 793,931 30,956,681 Segment gross profit $ 3,320,498 $ 234,550 $ 302,614 $ 3,857,662 Nine months ended September 30, 2022: Asset Supply chain Others Total Reportable segment revenue $ 11,270,874 $ 11,494,617 $ 78,170 $ 22,843,661 Inter-segment loss - - - - Revenue from external customers $ 11,270,874 11,494,617 78,170 22,843,661 Segment gross profit $ 4,381,536 $ 196,817 $ 78,170 $ 4,656,523 Loss before Income Tax: Three Months Ended Nine Months Ended 2023 2022 2023 2022 Supply chain financing/trading $ 97,398 $ (326,287 ) $ 28,975 $ (224,156 ) Asset management service 1,061,838 514,264 2,745,995 1,531,592 Others 305,448 642,535 (97,975 ) 1,481,279 Corporate and Unallocated 2,365,132 4,095,074 7,448,851 10,023,432 Total operating expenses and other expense 3,829,816 4,925,586 10,125,846 12,812,147 Loss before Income Tax $ (2,438,958 ) $ (3,432,460 ) $ (6,268,184 ) $ (8,155,624 ) Segment assets: September 30, December 31, Supply chain financing/trading $ 14,991,235 $ 26,487,090 Asset management service 3,706,404 3,387,506 Others 17,295,394 14,090,091 Corporate and Unallocated 34,549,126 41,053,032 Total assets $ 70,542,159 $ 85,017,719 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 24. COMMITMENTS AND CONTINGENCIES Legal case with FT Global Litigation In January 2021, FT Global Capital, Inc. (“FT Global”), a former placement agent of the Company filed a lawsuit against the Company in the Superior Court of Fulton County, Georgia. FT Global served the complaint upon the Company in January 2021. In the complaint, FT Global alleges claims, most of which attempt to hold the Company liable under legal theories that relate back to an alleged breach of an exclusive placement agent agreement between FT Global and the Company in July 2020 which had a term of three months. FT Global claims that the Company failed to compensate FT Global for securities purchase transactions between December 2020 and April 2021, pursuant to the terms of the expired exclusive placement agent agreement. Allegedly, the exclusive placement agent agreement required the Company to pay FT Global for capital received during the term of the agreement and for the 12-month period following the termination of the agreement involving any investors that FT Global introduced and/or wall-crossed to the Company. However, the Company believes the securities purchase transactions at issue did not involve the one investor which FT Global introduced or wall-crossed to the Company during the term of the agreement. FT Global claims approximately $7,000,000 in damages and attorneys’ fees. The Company timely removed the case to the United States District Court for the Northern District of Georgia (the (“Court”) on February 9, 2021 based on diversity of jurisdiction. On March 9, 2021, the Company filed a motion to dismiss based on FT Global’s failure to state a claim which is pending before the Court. 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. 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. 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. On November 10, 2021, the Court entered an Order granting the Company’s motion to dismiss FT Global’s fraud claim and breach of contract claim as to the disclosure of its confidential and proprietary information. The Court denied the Company’s motion to dismiss FT Global’s i) breach of contract claim for failure to pay FT Global pursuant to the terms of the exclusive placement agent agreement; ii) claim for breach of the covenant of good faith and fair dealing; and iii) claim for attorney’s fees, and the court concluded that additional information can be obtained through discovery. 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. 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. 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. 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 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 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. 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. On October 27, 2023, the Court granted the parties’ joint motion to extend the deadline to file the consolidated pretrial order to November 17, 2023 and set the case for trial on January 8, 2024. Subsequently, the Court approved an extension of the deadline to file a pretrial order to December 1, 2023. The Company will continue to vigorously defend the action against FT Global. 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. Without admitting or denying the SEC’s findings, the Company has consented to: (i) cease and desist from committing or causing any violations and any future violations of Sections 17(a)(2) and (3) of the Securities Act, Sections 13(a), 13(b)(2)(A) and 13(b)(2)(B) of the Exchange Act, and Rules 12b-20, 13a-1, 13a-13 and 13a-15(a) thereunder; (ii) pay a civil money penalty in the amount of $1,650,000 to the Securities and Exchange Commission for transfer to the general fund of the United States Treasury, subject to Exchange Act Section 21F(g)(3) and the payment shall be made in the following installments: the first installment of $150,000 shall be paid within ten (10) days of July 3, 2023 (the “Order Date”); the second installment of $375,000 shall be paid within 90 days of the Order Date; the third installment of $375,000 shall be paid within 180 days of the Order Date; the fourth installment of $375,000 shall be made within 270 days of the Order Date; and the last installment of $375,000 shall be made within 360 days of the Order Date; (iii) retain, within sixty (60) days of the Order Date, at Company’s own expense, a qualified independent consultant (the “Consultant”) not unacceptable to the SEC staff, to test, assess, and review the Company’s internal accounting controls and internal control over financial reporting (collectively, “review), and the Consultant, at the conclusion of the review, which in no event shall be no more than 180 days after the Order Date, to submit a report of the Consultant to the Company and the SEC staff and the report shall address the Consultant’s findings and shall include a description of the review performed, the conclusions reached, and the Consultant’s recommendations for changes or improvements; and (iv) adopt, implement, and maintain all policies, procedures and practices recommended in the report of the Consultant within 120 days of receiving the report from the Consultant. 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 on July 26, 2023. |
Risks and Uncertainties
Risks and Uncertainties | 9 Months Ended |
Sep. 30, 2023 | |
Risks and Uncertainties [Abstract] | |
RISKS AND UNCERTAINTIES | 25. RISKS AND UNCERTAINTIES Impact of COVID 19 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”. 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. In response to the evolving dynamics related to the COVID-19 outbreak, the Company was following the guidelines of local authorities as it prioritizes the health and safety of its employees, contractors, suppliers and business partners. Our offices in China were closed and the employees worked from home at the end of January 2020 until late March 2020. The quarantines, travel restrictions, and the temporary closure of office buildings have materially negatively impacted our business. The outbreak has had and might continue to have disruption to our supply chain, logistics providers, customers or our marketing activities with the new variants of COVID-19, which could materially adversely impact our business and results of operations. There were outbreaks in various cities and provinces in China due to Omicron variant, such as Xi’an city, Hong Kong, Shanghai, Beijing and other cities in 2022, which have resulted quarantines, travel restrictions, and temporary closure of office buildings and facilities in these cities. In December 2022, the Chinese government eased its strict zero COVID-19 policy which resulted in a surge of new COVID-19 cases during December 2022 and January 2023, which has disrupted our business operations in China. The Company’s promotion strategy of CCM Shopping Mall previously mainly relied on the training of members and distributors through meetings and conferences. Chinese government put a restriction on large gatherings in 2020 and 2021, which made the promotion strategy for our online e-commerce platforms difficult to implement and the Company experienced difficulties to subscribe new members for its online e-commerce platforms. Due to the lack of new subscribers, in June 2021, the Company suspended its cross-border e-commerce platform NONOGIRL which later being closed. Also, since the second quarter of 2021, the Company has transformed its member-based Chain Cloud Mall to a sale agent based eCAAS platform and began to provide supply chain financing services. The global economy has also been materially negatively affected by the COVID-19 and there is continued severe uncertainty about the potential outbreak and new variants of COVID-19. The Chinese and global growth forecast is extremely uncertain, which would seriously affect our business. While the potential economic impact brought by, and the duration of COVID-19 and its new variants may be difficult to assess or predict, a widespread pandemic could result in significant disruption of global financial markets, reducing our ability to access capital, which could negatively affect our liquidity. In addition, a recession or market correction resulting from the spread of COVID-19 and its new variants could materially negatively affect our business and the value of our common stock. Further, as we do not have access to a revolving credit facility, there can be no assurance that we would be able to secure commercial debt financing in the future in the event that we require additional capital. 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. Consequently, our results of operations have been materially and adversely affected by COVID-19 pandemic. Any potential further impact to our results will depend on, to a large extent, future developments and new information that may emerge regarding the new variants of COVID-19, the efficacy and distribution of COVID-19 vaccines and the actions taken by government authorities and other entities to contain the COVID-19 or treat its impact, almost all of which are beyond our control. PRC Regulations There are substantial uncertainties regarding the interpretation and application of PRC laws and regulations including, but not limited to, the laws and regulations governing our business and the enforcement and performance of our arrangements with customers in certain circumstances. We are considered foreign persons or foreign funded enterprises under PRC laws and, as a result, we are required to comply with PRC laws and regulations related to foreign persons and foreign funded enterprises. These laws and regulations are sometimes vague and may be subject to future changes, and their official interpretation and enforcement may involve substantial uncertainty. The effectiveness of newly enacted laws, regulations or amendments may be delayed, resulting in detrimental reliance. New laws and regulations that affect existing and proposed future businesses may also be applied retroactively. We cannot predict what effect the interpretation of existing or new PRC laws or regulations may have on our business. Customer concentration risk For nine months ended September 30, 2023, two customer accounted for 60.84% and 27.88% of the Company’s total revenues. For nine months ended September 30, 2022, three customer accounted for 45.93%, 16.47% and 13.08% of the Company’s total revenues. Vendor concentration risk For nine months ended September 30, 2023, one vendors accounted for 75.83% of the Company’s total purchases. For nine months ended September 30, 2022, three vendors accounted for 24.34%, 22.80% and 19.43% of the Company’s total purchases. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2023 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | 26. SUBSEQUENT EVENTS The Company has evaluated subsequent events through the date of the issuance of the condensed consolidated financial statements and the following subsequent event is identified. On November 7, 2023, Future FinTech (Hong Kong) Limited (“Buyer”), a company incorporated in Hong Kong and a wholly owned subsidiary of the Company, completed its acquisition of 100% of the issued and outstanding shares of Alpha International Securities (Hong Kong) Limited, a company incorporated in Hong Kong (“Alpha HK”) and Alpha Information Service (Shenzhen) Co., Ltd., a company incorporated in China (“Alpha SZ”) from Alpha Financial Limited (“Seller”) for a total of HK$15,659,949 (approximately $2,007,686), pursuant to a Share Transfer Agreement (the “Agreement”) dated February 27, 2023. |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 9 Months Ended |
Sep. 30, 2023 | |
Summary of Significant Accounting Policies [Abstract] | |
Basis of presentation | Basis of presentation The unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and the rules and regulations of the Securities and Exchange Commission. In the opinion of management, the unaudited financial statements have been prepared on the same basis as the annual financial statements and reflect all adjustments, which include only normal recurring adjustments, necessary to present fairly the financial position as of September 30, 2023 and the results of operations and cash flows for the periods ended September 30, 2023 and 2022. The financial data and other information disclosed in these notes to the interim financial statements related to these periods are unaudited. The results for the nine months ended September 30, 2023 are not necessarily indicative of the results to be expected for any subsequent periods or for the entire year ending December 31, 2023. The balance sheet at December 31, 2022 has been derived from the audited financial statements at that date. Our contractual arrangements with the VIE and their respective shareholders allow us to (i) exercise effective control over the VIE, (ii) receive substantially all of the economic benefits of the VIE, and (iii) have an exclusive option to purchase all or part of the equity interests in the VIE when and to the extent permitted by PRC law. As a result of our direct ownership in our wholly owned subsidiary and the contractual arrangements with the VIE, we are regarded as the primary beneficiary of the VIE, and we treat it and its subsidiaries as our consolidated affiliated entities under U.S. GAAP. We have consolidated the financial results of the VIE in our condensed consolidated financial statements in accordance with U.S. GAAP Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States have been condensed or omitted pursuant to the Securities and Exchange Commission’s rules and regulations. These unaudited financial statements should be read in conjunction with our audited financial statements and notes thereto for the year ended December 31, 2022 as included in our Annual Report on Form 10-K. |
Discontinued Operations | Discontinued Operations On June 27, 2022, Chain Cloud Mall Logistics Center (Shanxi) Co., Ltd. was dissolved and deregistered. On June 16, 2023, QR (HK) Limited was dissolved and deregistered. Based on the disposal plan and in accordance with ASC 205-20, the Company presented the operating results from these operations as a discontinued operation. |
Segment Information Reclassification | Segment Information Reclassification The Company classified business segment into asset management service, supply chain financing and trading, and others. |
Uses of Estimates in the Preparation of Financial Statements | Uses of Estimates in the Preparation of Financial Statements 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. |
Going Concern | Going Concern The Company’s financial statements are prepared assuming that the Company will continue as a going concern. The Company incurred operating losses and had negative operating cash flows and may continue to incur operating losses and generate negative cash flows as the Company implements its future business plan. The Company’s operating losses amounted $6.34 million, and it had negative operating cash flows amounted $6.42 million as of September 30, 2023. These factors raise substantial doubts about the Company’s ability to continue as a going concern. The Company has raised funds through issuance of convertible notes and common stock. The ability of the Company to continue as a going concern is dependent upon its ability to successfully execute its new business strategy and eventually attain profitable operations. The accompanying financial statements do not include any adjustments that may be necessary if the Company is unable to continue as a going concern. |
Research and development | Research and development Research and development expenses include salaries, contracted services, as well as the related expenses for our research and product development team, and expenditures relating to our efforts to develop, design, and enhance our service to our clients. The Company expenses research and development costs as they are incurred. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets In accordance with the ASC 360-10, Accounting for the Impairment or Disposal of Long-Lived Assets If such assets are considered to be impaired, the impairment to be recognized is measured as the amount by which the carrying amount of the assets exceeds the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount or fair value less cost to sell. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The Company has adopted FASB ASC Topic on Fair Value Measurements and Disclosures (“ASC 820”), which defines fair value, establishes a framework for measuring fair value in GAAP, and expands disclosures about fair value measurements. ASC 820 establishes a three-level valuation hierarchy of valuation techniques based on observable and unobservable input, which may be used to measure fair value and include the following: Level 1 - Quoted prices in active markets for identical assets or liabilities. Level 2 - Input other than Level 1 that is observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other input that is observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 - Unobservable input that is supported by little or no market activity and that is significant to the fair value of the assets or liabilities. Our cash and cash equivalents and restricted cash and short-term investments are classified within level 1 of the fair value hierarchy because they are value using quoted market price. |
Earnings Per Share | Earnings Per Share Under ASC 260-10, Earnings Per Share Diluted EPS is calculated by using the treasury stock method, assuming conversion of all potentially dilutive securities, such as stock options and warrants. Under this method, (i) exercise of options and warrants is assumed at the beginning of the period and shares of Common Stock are assumed to be issued, (ii) the proceeds from exercise are assumed to be used to purchase Common Stock at the average market price during the period, and (iii) the incremental shares (the difference between the number of shares assumed issued and the number of shares assumed purchased) are included in the denominator of the diluted EPS computation. The numerators and denominators used in the computations of basic and diluted EPS are presented in the following table. For the nine months ended September 30, 2023: Income Share Pre-share Net loss from continuing operations attributable to Future Fintech Group, Inc. $ (6,162,248 ) 14,645,653 $ (0.42 ) Net income from discontinuing operations attributable to Future Fintech Group, Inc. $ 105,480 14,645,653 0.01 Basic EPS: Loss available to common stockholders from continuing operations $ (6,162,248 ) 14,645,653 $ (0.42 ) Income available to common stockholders from discontinuing operations $ 105,480 14,645,653 0.01 Dilutive EPS: Warrants - 42,108 - Diluted loss per share is calculated by taking net loss, divided by the diluted weighted average common shares outstanding. Diluted net loss per share equals basic net loss per share because the effect of securities convertible into common shares is anti-dilutive $ (6,162,248 ) 14,687,761 $ (0.42 ) Diluted income per share is calculated by taking net loss, divided by the diluted weighted average common shares outstanding. $ 105,480 14,687,761 0.01 For the nine months ended September 30, 2022: Income Share Pre-share Loss from continuing operations $ (8,164,899 ) 14,214,832 $ (0.57 ) Loss from discontinuing operations $ (154 ) 14,214,832 $ - Basic EPS: Loss available to common stockholders from continuing operations $ (8,164,899 ) 14,214,832 $ (0.57 ) Loss available to common stockholders from discontinuing operations $ (154 ) 14,214,832 $ - Dilutive EPS: Warrants - 557,791 - Diluted loss per share is calculated by taking net loss, divided by the diluted weighted average common shares outstanding. Diluted net loss per share equals basic net loss per share because the effect of securities convertible into common shares is anti-dilutive from continuing operations $ (8,164,899 ) 14,772,623 $ (0.34 ) Diluted loss per share is calculated by taking net loss, divided by the diluted weighted average common shares outstanding. $ (154 ) 14,772,623 $ - Three months ended September 30, 2023: Income Share Pre-share Net loss from continuing operations attributable to Future Fintech Group, Inc. $ (2,408,300 ) 14,645,653 $ (0.16 ) Net income from discontinuing operations attributable to Future Fintech Group, Inc. $ - 14,645,653 - Basic EPS: Loss available to common stockholders from continuing operations $ (2,408,300 ) 14,645,653 $ (0.16 ) Income available to common stockholders from discontinuing operations $ - 14,645,653 - Dilutive EPS: Warrants - 42,108 - Diluted loss per share is calculated by taking net loss, divided by the diluted weighted average common shares outstanding. Diluted net loss per share equals basic net loss per share because the effect of securities convertible into common shares is anti-dilutive $ (2,408,300 ) 14,687,761 $ (0.11 ) Diluted income per share is calculated by taking net loss, divided by the diluted weighted average common shares outstanding. $ - 14,687,761 0.01 Three months ended September 30, 2022: Income Share Pre-share Loss from continuing operations $ (3,531,499 ) 14,214,832 $ (0.25 ) Loss from discontinuing operations $ - 14,214,832 $ - Basic EPS: Loss available to common stockholders from continuing operations $ (3,531,499 ) 14,214,832 $ (0.25 ) Loss available to common stockholders from discontinuing operations $ - 14,214,832 $ - Dilutive EPS: Warrants - 557,791 - Diluted loss per share is calculated by taking net loss, divided by the diluted weighted average common shares outstanding. Diluted net loss per share equals basic net loss per share because the effect of securities convertible into common shares is anti-dilutive from continuing operations $ (3,531,499 ) 14,772,623 $ (0.24 ) Diluted loss per share is calculated by taking net loss, divided by the diluted weighted average common shares outstanding. $ - 14,772,623 $ - |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents included cash on hand and demand deposits placed with banks or other financial institutions, which are unrestricted as to withdrawal and use and with an original maturity of three months or less. Deposits in banks in the PRC are only insured by the government up to RMB500,000, in the HK are only insured by the government up to HKD500,000, in the United Kingdom are only insured by the government up to GBP18,000, in the United States of America are only insured by the Federal Deposit Insurance Corporation up to USD250,000, and are consequently exposed to risk of loss. The Company believes the probability of a bank failure, causing loss to the Company, is remote. Cash that is restricted as to withdrawal for use or pledged as security is reported separately on the face of the consolidated balance sheets, and is not included in the total cash and cash equivalents in the consolidated statements of cash flows. |
Receivable and Allowances | Receivable and Allowances Accounts receivable are recognized and carried at the original invoice amounts less an allowance for any uncollectible amount. We have a policy of reserving for uncollectible accounts based on our best estimate of the amount of probable credit losses in our existing accounts receivable. We perform ongoing credit evaluations of our customers and maintain an allowance for potential bad debts if required. Other receivables, and loan receivables are recognized and carried at the initial amount when occurred less an allowance for any uncollectible amount. We have a policy of reserving for uncollectible accounts based on our best estimate of the amount of probable impairment losses in our existing receivable. Allowances for doubtful accounts are maintained for expected credit losses resulting from the Company’s customers’ inability to make required payments. The allowances are based on the Company’s regular assessment of various factors, including the credit-worthiness and financial condition of specific customers, historical experience with bad debts and customer deductions, receivables aging, current economic conditions, reasonable and supportable forecasts of future economic conditions, and other factors that may affect the Company’s ability to collect from customers. The Company maintains an allowance for credit losses in accordance with ASC Topic 326, Credit Losses (“ASC 326”) and records the allowance for credit losses as an offset to accounts receivable and contract assets, and the estimated credit losses charged to the allowance is classified as “bad debt expense” in the consolidated statements of comprehensive income. We determine whether an allowance for doubtful accounts is required by evaluating specific accounts where information indicates the customers may have an inability to meet financial obligations. In these cases, we use assumptions and judgment, based on the best available facts and circumstances, to record a specific allowance for those customers against amounts due to reduce the receivable to the amount expected to be collected. These specific allowances are re-evaluated and adjusted as additional information is received. The amounts calculated are analyzed to determine the total amount of the allowance. We may also record a general allowance as necessary. Direct write-offs are taken in the period when we have exhausted our efforts to collect overdue and unpaid receivable or otherwise evaluate other circumstances that indicate that we should abandon such efforts. The Company has assessed its accounts receivable including credit term and corresponding all its accounts receivables as of September 30, 2023. Bad debt expense was $(1,152,798) and $1,947 during the nine months ended September 30, 2023 and 2022, respectively. Accounts receivables of $0.95 million and nil |
Revenue Recognition | Revenue Recognition We apply the five steps defined under ASC 606: (i) identify the contract(s) with a customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations in the contract, and (v) recognize revenue when (or as) the entity satisfies a performance obligation. We assess its revenue arrangements against specific criteria in order to determine if it is acting as principal or agent. Revenue arrangements with multiple performance obligations are divided into separate distinct goods or services. We allocate the transaction price to each performance obligation based on the relative standalone selling price of the goods or services provided. Revenue is recognized upon the transfer of control of promised goods or services to a customer. Control is generally transferred when the Company has a present right to payment and title and the significant risks and rewards of ownership of products or services are transferred to its customers. We do not make any significant judgment in evaluating when control is transferred. Revenue is recorded net of value-added tax. Revenue recognitions are as follows: Sales of coals, aluminum ingots, sand and steel The Company recognize revenue when the receipt of merchandise is confirmed by the customers, which is the point that the title of the goods is transferred to the customer. Revenue was $20.27 million and $11.49 million during the nine months ended September 30, 2023 and 2022, respectively. Sales agent services of coals, aluminum ingots, sand and steel For the sale of third-party products where the Company obtains control of the product before transferring it to the customer, the Company recognizes revenue based on the gross revenue amount billed to customers as sales of goods listed above. The Company considers multiple factors when determining whether it obtains control of third-party products, including evaluating if it can establish the price of the product, retains inventory risk for tangible products or has the responsibility for ensuring acceptability of the product. The Company recognizes net revenue as agent services for the sales of coals, aluminum ingots, sand and steel nil Asset Management Service The Company recognizes service revenue when a service is rendered, the Company issues bills to its customers and recognizes revenue according to the bills. |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment are stated at cost less accumulated depreciation and any impairment losses. Depreciation is computed using the straight-line method over the useful lives of the assets. Major renewals and betterments are capitalized and depreciated; maintenance and repairs that do not extend the life of the respective assets are expensed as incurred. Upon disposal of assets, the cost and related accumulated depreciation are removed from the accounts and any gain or loss is included in the consolidated statements of income and comprehensive income. Depreciation related to property, plant and equipment used in production is reported in cost of sales, and includes amortized amounts related to capital leases. We estimated that the residual value of the Company’s property and equipment ranges from 3% to 5%. Property, plant and equipment are depreciated over their estimated useful lives as follows: Machinery and equipment 5-10 years Building 30 years Furniture and office equipment 3-5 years Motor vehicles 5 years |
Intangible Assets | Intangible Assets Acquired intangible assets are recognized based on their cost to the Company, which generally includes the transaction costs of the asset acquisition, and no gain or loss is recognized unless the fair value of noncash assets given as consideration differs from the assets’ carrying amounts on the Company’s book. These assets are amortized over their useful lives if the assets are deemed to have a finite life and they are reviewed for impairment by testing for recoverability whenever events or changes in circumstances indicate that their carrying amount may not be recoverable. The fair value of an intangible asset is the amount that would be determined if the entity used the assumptions that market participants would use if they were pricing the intangible asset. The useful life of the Company’s intangible assets is ten years, which is determined by using the time period that an intangible is estimated to contribute directly or indirectly to a Company’s future cash flows. |
Foreign Currency and Other Comprehensive Income (Loss) | Foreign Currency and Other Comprehensive Income (Loss) The financial statements of the Company’s foreign subsidiaries and VIE are measured using the local currency as the functional currency; however, the reporting currency of the Company is the USD. Assets and liabilities of the Company’s foreign subsidiaries have been translated into USD using the exchange rate at the balance sheet dates, while equity accounts are translated using historical exchange rate. The exchange rate we used to convert RMB to USD was 7.18:1 and 6.96:1 at the balance sheet dates of September 30, 2023 and December 31, 2022, respectively. The average exchange rate for the period has been used to translate revenues and expenses. The average exchange rates we used to convert RMB to USD were 7.01:1 and 6.61:1 for nine months ended September 30, 2023 and 2022, respectively. The exchange rate we used to convert HKD to USD was 7.82:1 and 7.80:1 at the balance sheet dates of September 30, 2023 and December 31, 2022. The average exchange rate for the period has been used to translate revenues and expenses. The average exchange rates we used to convert HKD to USD were 7.83:1 and 7.83:1 for nine months ended September 30, 2023 and 2022, respectively. The exchange rate we used to convert GBP to USD was 0.82:1 and 0.83:1 at the balance sheet dates of September 30, 2023 and December 31, 2022. The average exchange rate for the period has been used to translate revenues and expenses. The average exchange rates we used to convert GBP to USD were 0.80:1 and 0.80:1 for nine months ended September 30, 2023 and 2022, respectively. The exchange rate we used to convert AED to USD was 3.66:1 and 3.67:1 at the balance sheet dates of September 30, 2023 and December 31, 2022. The average exchange rate for the period has been used to translate revenues and expenses. The average exchange rates we used to convert AED to USD were 3.66:1 and 3.67:1 for nine months ended September 30 2023 and 2022, respectively. The exchange rate we used to convert PYG to USD was 7289.83:1 and 7322.90:1 at the balance sheet dates of September 30, 2023 and December 31, 2022. The average exchange rate for the period has been used to translate revenues and expenses. The average exchange rate we used to convert PYG to USD was 7250.00:1 and 6903.82:1 for nine months ended September 30 2023 and 2022. Translation adjustments are reported separately and accumulated in a separate component of equity (cumulative translation adjustment). |
Government subsidies | Government subsidies Government subsidies primarily consist of financial subsidies received from provincial and local governments for operating a business in their jurisdictions and compliance with specific policies promoted by the local governments. For certain government subsidies, there are no defined rules and regulations to govern the criteria necessary for companies to receive such benefits, and the amount of financial subsidy is determined at the discretion of the relevant government authorities. The government subsidies of operating nature with no further conditions to be met are recorded of operating expenses in “Other income” in the consolidated statements when received. The amendments in this update require disclosures about transactions with a government that have been accounted for by analogizing to a grant or contribution accounting model to increase transparency about (1) the types of transactions, (2) the accounting for the transactions, and (3) the effect of the transactions on an entity’s financial statements. |
Income Taxes | Income Taxes We use the asset and liability method of accounting for income taxes in accordance with ASC Topic 740, “Income Taxes.” Under this method, income tax expense is recognized for the amount of: (i) taxes payable or refundable for the current year and (ii) deferred tax consequences of temporary differences resulting from matters that have been recognized in an entity’s financial statements or tax returns. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the results of operations in the period that includes the enactment date. A valuation allowance is provided to reduce the deferred tax assets reported if based on the weight of the available positive and negative evidence, it is more likely than not some portion or all of the deferred tax assets will not be realized. ASC Topic 740-10-30 clarifies the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements and prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. ASC Topic 740-10-25 provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition. We have no material uncertain tax positions for any of the reporting periods presented. |
Goodwill | Goodwill The Company tests goodwill for impairment for its reporting units on an annual basis, or when events occur or circumstances indicate the fair value of a reporting unit is below its carrying value. If the fair value of a reporting unit is less than its carrying value, an impairment loss is recorded to the extent that implied fair value of the goodwill within the reporting unit is less than its carrying value. The Company’s evaluation of goodwill for impairment involves the comparison of the fair value of the reporting unit to its carrying value. The Company uses the discounted cash flow model to estimate fair value, which requires management to make significant estimates and assumptions related to forecasts of future revenue and operating margin. The company will perform annual goodwill impairment test end of the fiscal year. |
Short-term investments | Short-term investments Short-term investments consist primarily of investments in fixed deposits with original maturities between three months and one year and certain investments in wealth management products and other investments that the Company has the intention to redeem within one year. Fair valued or carried at amortized costs. As of September 30, 2023 and December 31, 2022, the short-term investments amounted to $0.95 million and $0.99 million, respectively. Due to fluctuations of the quoted shares included in its investment portfolios, the Company recognized an impairment to the investment portfolio of $3,872 and $0.93 million during the nine months ended September 30, 2023 and 2022. |
Lease | Lease We adopted ASU No. 2016-02, Leases (Topic 842), or ASC 842, from January 1, 2020. We determine if an arrangement is a lease or contains a lease at lease inception. For operating leases, we recognize a right-of-use (“ROU”) asset and a lease liability based on the present value of the lease payments over the lease term on the consolidated balance sheets at commencement date. As most of our leases do not provide an implicit rate, we estimate our incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. The incremental borrowing rate is estimated to approximate the interest rate on a collateralized basis with similar terms and payments, and in economic environments where the leased asset is located. The ROU assets also include any lease payments made, net of lease incentives. Lease expense is recorded on a straight-line basis over the lease term. Our leases often include options to extend and lease terms include such extended terms when we are reasonably certain to exercise those options. Lease terms also include periods covered by options to terminate the leases when we are reasonably certain not to exercise those options. |
Share-based compensation | Share-based compensation The Company awards share options and other equity-based instruments to its employees, directors and consultants (collectively “share-based payments”). Compensation cost related to such awards is measured based on the fair value of the instrument on the grant date. The Company recognizes the compensation cost over the period the employee is required to provide service in exchange for the award, which generally is the vesting period. The amount of cost recognized is adjusted to reflect the expected forfeiture prior to vesting. When no future services are required to be performed by the employee in exchange for an award of equity instruments, and if such award does not contain a performance or market condition, the cost of the award is expensed on the grant date. The Company recognizes compensation cost for an award with only service conditions that has a graded vesting schedule on a straight-line basis over the requisite service period for the entire award, provided that the cumulative amount of compensation cost recognized at any date at least equals the portion of the grant-date value of such award that is vested at that date. |
Variable interest entities | Variable interest entities On July 31, 2019, Cloud Chain Network and Technology (Tianjin) Co., Limited (“CCM Tianjin” or “WFOE”, formerly known as Chain Cloud Mall Network and Technology (Tianjin) Co., Limited), E-commerce Tianjin, and Mr. Zeyao Xue and Mr. Kai Xu, citizens of China and shareholders of E-commerce Tianjin, entered into the following agreements, or collectively, the “Variable Interest Entity Agreements” or “VIE Agreements,” pursuant to which CCM Tianjin has contractual rights to control and operate the business of E-commerce Tianjin (the “VIE”). Therefore, pursuant to ASC 810, E-Commerce Tianjin is included in the Company’s consolidated financial statements since then. Pursuant to Chinese law and regulations, a foreign owned enterprise cannot apply for and hold a license for operation of certain e-commerce businesses, the category of business which the Company is conducting in China. CCM Tianjin is an indirectly wholly foreign owned enterprise of the Company. In order to comply with Chinese law and regulations, CCM Tianjin agreed to provide E-commerce Tianjin an Exclusive Operation and Use Rights Authorization to operate and use the Cloud Chain Mall System owned by CCM Tianjin. E-commerce Tianjin was incorporated by Mr. Zeyao Xue and Mr. Kai Xu solely for the purpose of holding the operation license of the Cloud Chain Mall System. Mr. Zeyao Xue is a major shareholder of the Company and the son of Mr. Yongke Xue, the president of the Company. Mr. Kai Xu was the Chief Operating Officer of the Company and currently is the Deputy General Manager of FT Commercial Group Ltd., a wholly owned subsidiary of the Company and the vice president of blockchain division of the Company. The VIE Agreements are as follows: 1) Exclusive Technology Consulting and Service Agreement by and between CCM Tianjin and E-commerce Tianjin. Pursuant to the Exclusive Technology Consulting and Service Agreement, CCM Tianjin agreed to act as the exclusive consultant of E-commerce Tianjin and provide technology consulting and services to E-commerce Tianjin. In exchange, E-commerce Tianjin agreed to pay CCM Tianjin a technology consulting and service fee, the amount of which is to be equivalent to the amount of net profit before tax of E-commerce Tianjin, payable on a quarterly basis after making up losses of previous years (if necessary) and deducting necessary costs and expenses and taxes related to the business operations of E-commerce Tianjin. Without the prior written consent of CCM Tianjin, E-commerce Tianjin may not accept the same or similar technology consulting and services provided by any third party during the term of the agreement. All the benefits and interests generated from the agreement, including but not limited to intellectual property rights, know-how and trade secrets, will be CCM Tianjin’s sole and exclusive property. This agreement has a term of 10 years and may be extended unilaterally by CCM Tianjin with CCM Tianjin’s written confirmation prior to the expiration date. E-commerce Tianjin cannot terminate the agreement early unless CCM Tianjin commits fraud, gross negligence or illegal acts, or becomes bankrupt or winds up. 2) Exclusive Purchase Option Agreement by and among CCM Tianjin, E-commerce Tianjin, Mr. Zeyao Xue and Mr. Kai Xu. Pursuant to the Exclusive Purchase Option Agreement, Mr. Zeyao Xue and Mr. Kai Xu granted to CCM Tianjin and any party designated by CCM Tianjin the exclusive right to purchase, at any time during the term of this agreement, all or part of the equity interests in E-commerce Tianjin, or the “Equity Interests,” at a purchase price equal to the registered capital paid by Mr. Zeyao Xue and Mr. Kai Xu for the Equity Interests, or, in the event that applicable law requires an appraisal of the Equity Interests, the lowest price permitted under applicable law. Pursuant to powers of attorney executed by Mr. Zeyao Xue and Mr. Kai Xu, they irrevocably authorized any person appointed by CCM Tianjin to exercise all shareholder rights, including but not limited to voting on their behalf on all matters requiring approval of E-commerce Tianjin’s shareholder, disposing of all or part of the shareholder’s equity interest in E-commerce Tianjin, and electing, appointing or removing directors and executive officers. The person designated by CCM Tianjin is entitled to dispose of dividends and profits on the equity interest without reliance on any oral or written instructions of Mr. Zeyao Xue and Mr. Kai Xu. The powers of attorney will remain in force for so long as Mr. Zeyao Xue and Mr. Kai Xu remain the shareholders of E-commerce Tianjin. Mr. Zeyao Xue and Mr. Kai Xu have waived all the rights which have been authorized to CCM Tianjin’s designated person under the powers of attorney. 3) Equity Pledge Agreements by and among CCM Tianjin, E-commerce Tianjin, Mr. Zeyao Xue and Mr. Kai Xu. Pursuant to the Equity Pledge Agreements, Mr. Zeyao Xue and Mr. Kai Xu pledged all of the Equity Interests to CCM Tianjin to secure the full and complete performance of the obligations and liabilities on the part of E-commerce Tianjin and them under this and the above contractual arrangements. If E-commerce Tianjin, Mr. Zeyao Xue, or Mr. Kai Xu breaches their contractual obligations under these agreements, then CCM Tianjin, as pledgee, will have the right to dispose of the pledged equity interests. Mr. Zeyao Xue and Mr. Kai Xu agree that, during the term of the Equity Pledge Agreements, they will not dispose of the pledged equity interests or create or allow any encumbrance on the pledged equity interests, and they also agree that CCM Tianjin’s rights relating to the equity pledge should not be interfered with or impaired by the legal actions of the shareholders of E-commerce Tianjin, their successors or designees. During the term of the equity pledge, CCM Tianjin has the right to receive all of the dividends and profits distributed on the pledged equity. The Equity Pledge Agreements will terminate on the second anniversary of the date when E-commerce Tianjin, Mr. Zeyao Xue and Mr. Kai Xu have completed all their obligations under the contractual agreements described above. 4) Exclusive Operation and Use Rights Authorization letter which authorizes CCM Tianjin, to exclusively operate and use the Cloud Chain Mall System and the authorization period is the same as the term of the EXCLUSIVE THEHNOLOGY CONSULTING AND SERVICE AGREEMENT entered into by and between CCM Tianjin and E-commerce Tianjin dated July 31, 2019. 5) GlobalKey Shared Mall Shopping Platform Software and System Transfer Agreement by and between Future Supply Chain Co., Ltd. and Cloud Chain Mall Network and Technology (Tianjian) Co., Ltd., pursuant to which the GlobalKey Shared Mall Shopping Platform Software and System was transferred from Future Supply China Co., Ltd. to CCM Tianjin and that both parties were wholly owned subsidiaries of the Company and transfer price is $0. 6) Spousal Consent Letters. The spouse of Mr. Kai Xu (Mr. Zeyao Xue is not married), the shareholder of E-Commerce Tianjin has signed a spousal consent letter agreeing that the equity interests in E-Commerce Tianjin held by and registered under the name of such shareholder will be disposed pursuant to the contractual agreements with CCM Tianjin. The spouse of such shareholder agreed not to assert any rights over the equity interest in E-Commerce Tianjin held by such shareholder. |
New Accounting Pronouncements | New Accounting Pronouncements In June 2016, the FASB issued ASU No. 2016-13 (“ASU 2016-13”) “Financial Instruments - Credit Losses” (“ASC 326”): Measurement of Credit Losses on Financial Instruments” which requires the measurement and recognition of expected credit losses for financial assets held at amortized cost. ASU 2016-13 replaces the existing incurred loss impairment model with an expected loss model which requires the use of forward-looking information to calculate credit loss estimates. It also eliminates the concept of other-than-temporary impairment and requires credit losses related to available-for-sale debt securities to be recorded through an allowance for credit losses rather than as a reduction in the amortized cost basis of the securities. These changes will result in earlier recognition of credit losses. In November 2019, the FASB issued ASU 2019-10 “Financial Instruments – Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842)” (“ASC 2019-10”), which defers the effective date of ASU 2016-13 to fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, for public entities which meet the definition of a smaller reporting company. The Company adopt ASU 2016-13 effective January 1, 2023. Management adopted of ASU 2016-13 on the consolidated financial statements. The effect will largely depend on the composition and credit quality of our investment portfolio and the economic conditions at the time of adoption. In November 2021, the FASB issued ASU No. 2021-10, Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance. The amendments in this update require disclosures about transactions with a government that have been accounted for by analogizing to a grant or contribution accounting model to increase transparency about (1) the types of transactions, (2) the accounting for the transactions, and (3) the effect of the transactions on an entity’s financial statements. The amendments are effective for all entities within their scope, which excludes not-for-profit entities and employee benefit plans, for financial statements issued for annual periods beginning after December 15, 2021. Early application of the amendment is permitted. The Company adopted ASU No. 2021-10 effective on January 1, 2022. The adoption of this standard did not have a material impact on the Company consolidated financial statements. Management does not believe that any other recently issued, but not yet effective accounting pronouncements, if adopted, would have a material impact on the accompanying consolidated financial statements. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Summary of Significant Accounting Policies [Abstract] | |
Schedule of Numerators and Denominators Used in the Computations of Basic and Diluted EPS | For the nine months ended September 30, 2023: Income Share Pre-share Net loss from continuing operations attributable to Future Fintech Group, Inc. $ (6,162,248 ) 14,645,653 $ (0.42 ) Net income from discontinuing operations attributable to Future Fintech Group, Inc. $ 105,480 14,645,653 0.01 Basic EPS: Loss available to common stockholders from continuing operations $ (6,162,248 ) 14,645,653 $ (0.42 ) Income available to common stockholders from discontinuing operations $ 105,480 14,645,653 0.01 Dilutive EPS: Warrants - 42,108 - Diluted loss per share is calculated by taking net loss, divided by the diluted weighted average common shares outstanding. Diluted net loss per share equals basic net loss per share because the effect of securities convertible into common shares is anti-dilutive $ (6,162,248 ) 14,687,761 $ (0.42 ) Diluted income per share is calculated by taking net loss, divided by the diluted weighted average common shares outstanding. $ 105,480 14,687,761 0.01 Income Share Pre-share Loss from continuing operations $ (8,164,899 ) 14,214,832 $ (0.57 ) Loss from discontinuing operations $ (154 ) 14,214,832 $ - Basic EPS: Loss available to common stockholders from continuing operations $ (8,164,899 ) 14,214,832 $ (0.57 ) Loss available to common stockholders from discontinuing operations $ (154 ) 14,214,832 $ - Dilutive EPS: Warrants - 557,791 - Diluted loss per share is calculated by taking net loss, divided by the diluted weighted average common shares outstanding. Diluted net loss per share equals basic net loss per share because the effect of securities convertible into common shares is anti-dilutive from continuing operations $ (8,164,899 ) 14,772,623 $ (0.34 ) Diluted loss per share is calculated by taking net loss, divided by the diluted weighted average common shares outstanding. $ (154 ) 14,772,623 $ - Income Share Pre-share Net loss from continuing operations attributable to Future Fintech Group, Inc. $ (2,408,300 ) 14,645,653 $ (0.16 ) Net income from discontinuing operations attributable to Future Fintech Group, Inc. $ - 14,645,653 - Basic EPS: Loss available to common stockholders from continuing operations $ (2,408,300 ) 14,645,653 $ (0.16 ) Income available to common stockholders from discontinuing operations $ - 14,645,653 - Dilutive EPS: Warrants - 42,108 - Diluted loss per share is calculated by taking net loss, divided by the diluted weighted average common shares outstanding. Diluted net loss per share equals basic net loss per share because the effect of securities convertible into common shares is anti-dilutive $ (2,408,300 ) 14,687,761 $ (0.11 ) Diluted income per share is calculated by taking net loss, divided by the diluted weighted average common shares outstanding. $ - 14,687,761 0.01 Income Share Pre-share Loss from continuing operations $ (3,531,499 ) 14,214,832 $ (0.25 ) Loss from discontinuing operations $ - 14,214,832 $ - Basic EPS: Loss available to common stockholders from continuing operations $ (3,531,499 ) 14,214,832 $ (0.25 ) Loss available to common stockholders from discontinuing operations $ - 14,214,832 $ - Dilutive EPS: Warrants - 557,791 - Diluted loss per share is calculated by taking net loss, divided by the diluted weighted average common shares outstanding. Diluted net loss per share equals basic net loss per share because the effect of securities convertible into common shares is anti-dilutive from continuing operations $ (3,531,499 ) 14,772,623 $ (0.24 ) Diluted loss per share is calculated by taking net loss, divided by the diluted weighted average common shares outstanding. $ - 14,772,623 $ - |
Schedule of Property, Plant and Equipment are Depreciated Estimated Useful Lives | Property, plant and equipment are depreciated over their estimated useful lives as follows: Machinery and equipment 5-10 years Building 30 years Furniture and office equipment 3-5 years Motor vehicles 5 years |
Variable Interest Entity (Table
Variable Interest Entity (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Variable Interest Entity [Abstract] | |
Schedule of Consolidated Assets and Liabilities | The carrying amount of the VIE’s consolidated assets and liabilities are as follows: September 30, December 31, 2023 2022 Cash and cash equivalents $ 10,549 $ 12,684 Other receivables 745 768 Other current assets 7,863 14,371 Total current assets 19,157 27,823 Property and equipment, net 71 98 Intangible assets - 88,302 Total assets 19,228 116,223 Total liabilities (240,266 ) (248,964 ) Net assets $ (221,038 ) $ (132,741 ) September 30, December 31, 2023 2022 Current liabilities: Accounts payable $ 18,098 $ 18,657 Accrued expenses and other payables 5,025 6,455 Advances from customers 2,569 2,648 Amount due to related party 214,574 221,204 Total current liabilities 240,266 248,964 Total liabilities $ 240,266 $ 248,964 |
Schedule of Operating Results | The summarized operating results of the VIE’s are as follows: Three Months Ended Nine Months Ended 2023 2022 2023 2022 Revenue $ (355 ) $ 1,378 $ 72,455 $ 2,029 Gross profit (6,573 ) 1,390 3,255 2,029 Net loss (180,198 ) (48,517 ) (199,756 ) (143,424 ) |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Accounts Receivable [Abstract] | |
Schedule of accounts receivable, net | Accounts receivable, net consist of the following: September 30, December 31, 2023 2022 Supply Chain Financing/Trading $ 1,816,911 $ 6,624,654 Asset management service 1,400,416 1,145,518 Others $ 8,326 $ 26,500 Total accounts receivable, net $ 3,225,653 $ 7,796,672 |
Schedule of accounts receivable, net of specific allowances for doubtful accounts | The following table sets forth our concentration of accounts receivable, net of specific allowances for doubtful accounts. September 30, December 31, 2023 2022 Debtor A 33.05 % 46.08 % Debtor B 26.92 % 15.65 % Debtor C 21.15 % 14.26 % Total accounts receivable, net 81.12 % 75.99 % |
Other Current Assets (Tables)
Other Current Assets (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Other Current Assets [Abstract] | |
Schedule of Other Current Assets | The amount of other current assets consisted of the followings: September 30, December 31, 2023 2022 Prepayments for Supply Chain Financing/Trading $ 54,405 $ 3,766,643 Prepayments for Sand and Steel Supply Chain Financing/Trading 1,485,999 - Prepaid expenses 92,499 72,544 Others 579,202 831,077 Total $ 2,212,105 $ 4,670,264 |
Acquisition (Tables)
Acquisition (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Acquisition [Abstract] | |
Schedule of Net Assets Acquired and Liabilities | The following table summarizes the allocation of estimated fair values of net assets acquired and liabilities assumed: Accounts receivable $ 1,407,902 Other receivables 27,701 Other current assets 7,039 Property, plant and equipment, net 53,577 Amount Due from Related Party 38,323 Accrued expenses and other payables (498,515 ) Net identifiable assets acquired $ 1,036,027 Less: non-controlling interests 131,165 Add: goodwill 17,164,598 Total purchase price for acquisition net of $275,624 of cash $ 18,069,460 |
Schedule of Allocation of Estimated Fair Values of Net Assets Acquired and Liabilities | The following table summarizes the allocation of estimated fair values of net assets acquired and liabilities assumed: Other receivables $ 242,087 Property, plant and equipment, net 584 Accrued expenses and other payables (89,888 ) Net identifiable assets acquired $ 152,783 Add: goodwill 628,938 Total purchase price for acquisition net of $166,676 of cash $ 781,721 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Leases [Abstract] | |
Schedule of Maturities of Lease Liabilities | Maturities of lease liabilities were as follows: Operating As of September 30, Lease From October 1, 2023 to September 30, 2024 $ 358,374 From October 1, 2024 to September 30, 2025 204,000 From October 1, 2025 to September 30, 2026 204,000 From October 1, 2026 to September 30, 2027 102,000 Total $ 868,374 Less: amounts representing interest $ 65,394 Present Value of future minimum lease payments 802,980 Less: Current obligations 289,781 Long term obligations $ 513,199 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Property and Equipment [Abstract] | |
Schedule of Property and Equipment | Property and equipment consist of the following: September 30, December 31, 2023 2022 Office equipment, fixtures and furniture $ 544,645 $ 491,022 Vehicle 850,026 798,955 Building 37,652 37,785 Subtotal 1,432,323 1,327,762 Less: accumulated depreciation and amortization (491,077 ) (277,094 ) Construction in progress 3,691,710 3,372,301 Impairment (5,518 ) (5,688 ) Total $ 4,627,438 $ 4,417,281 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets | Intangible assets consist of the following: September 30, December 31, 2023 2022 Trademarks $ 836 862 System and software 2,518,547 2,578,647 Subtotal 2,519,383 2,579,509 Less: accumulated depreciation and amortization (237,536 ) (199,151 ) Less: impairment (1,806,554 ) (1,862,289 ) Total $ 475,293 $ 518,069 |
Schedule of Estimated Amortization | The estimated amortization is as follows: As of September 30, 2023 Estimated From October 1, 2023 to September 30, 2024 $ 57,035 From October 1, 2024 to September 30, 2025 57,035 From October 1, 2025 to September 30, 2026 57,035 From October 1, 2026 to September 30, 2027 57,035 From October 1, 2027 to September 30, 2028 57,035 Thereafter 190,118 Total $ 475,293 |
Note Payable (Tables)
Note Payable (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Note Payable [Abstract] | |
Schedule of Note Payable | Note payable consist of the following: Issue date Principal Mature date Fee FUCE Future Supply Chain (Xi’an) Co., Ltd. December 19, 2022 696,398 December 19, 2023 0.05 % Total $ 696,398 |
Account Payables (Tables)
Account Payables (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Account Payables [Abstract] | |
Schedule of Accounts Payables | The amount of account payables were consisted of the followings: September 30, December 31, 2023 2022 Supply Chain Financing/Trading payment $ 334,153 $ 3,584,920 Others 18,098 18,657 Total $ 352,251 $ 3,603,577 |
Accrued Expenses and Other Pa_2
Accrued Expenses and Other Payables (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Accrued Expenses and Other Payables [Abstract] | |
Schedule of Accrued Expenses and Other Payables | The amount of accrued expenses and other payables consisted of the followings: September 30, December 31, 2023 2022 Legal fee and other professionals $ 64,511 $ 533,048 Wages and employee reimbursement 136,605 763,983 Suppliers 871,076 708,287 Accruals 1,419,016 208,938 Total $ 2,491,208 $ 2,214,256 |
Advances from Customers (Tables
Advances from Customers (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Advances from Customers [Abstract] | |
Schedule of Advances from Customers | The amount of advances from customers consisted of the followings: September 30, December 31, 2023 2022 Coal and Aluminum Ingots Supply Chain Financing/Trading $ 313 $ 1,233,592 Others 65,354 2,649 Total $ 65,667 $ 1,236,241 |
Related Party Transaction (Tabl
Related Party Transaction (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Related Party Transaction [Abstract] | |
Schedule of Due to Related Parties | As of September 30, 2023, the amounts due to the related parties were consisted of the followings: Name Amount Relationship Note Zhi Yan 204,610 General Manager of a subsidiary of the Company Accrued expenses, interest free and payment on demand. Ming Yi 16,638 Chief Financial Officer of the Company Accrued expenses, interest free and payment on demand. Reits (Beijing) Technology Co., Ltd 14,102 Zhi Yan is the legal representative of this company Acquisition of intangibles upon the full completion of the online platform pursuant to an agreement originally entered between parties before Zhi Yan became a related party. The amount is interest free and payment on demand. Total $ 235,350 Name Amount Relationship Note Reits (Beijing) Technology Co., Ltd 14,538 Zhi Yan is the legal representative of this company Acquisition of intangibles upon the full completion of the online platform pursuant to an agreement originally entered between parties before Zhi Yan was the general manager of our subsidiary. Zhi Yan 230,281 General Manager of a subsidiary of the Company Other payables, interest free and payment on demand. Total $ 244,819 |
Schedule of Due from Related Parties | As of September 30, 2023, the amounts due from the related parties were consisted of the followings: Name Amount Relationship Note Kai Xu 50,687 Deputy General Manager of a subsidiary of the Company Prepaid expenses, interest free and payment on demand. Yang Liu 294 Chief Operating Officer of the Company* Prepaid expenses, interest free and payment on demand. Total $ 50,981 * Mr. Yang Liu resigned as Chief Operating Officer of the Company on July 27, 2023 and remains as an officer of a subsidiary of the Company. Name Amount Relationship Note Kai Xu $ 16 Deputy General Manager of a subsidiary of the Company Advance to the officer, interest free and payment on demand. Ming Yi 12,135 Chief Financial Officer of the Company Advance to the officer, interest free and payment on demand. Jing Chen 971 Vice president of the Company Advance to the officer, interest free and payment on demand. Ola Johannes Lind 2,168 Chief Executive Officer of the FTFT Capital Investments L.L.C. and Chief Strategy Officer of the Company Advance to the officer, interest free and payment on demand. Wong Tai Kue 37,836 NTAM’s Director Advance to the directors Amount is interest free and payment on demand. Total $ 53,126 |
Schedule of Company Transactions with Related Parties | During nine months ended September 30, 2023, the Company had the following transactions with related parties: Name Amount Relationship Note JKNDC Limited $ (5,744 ) A company owned by the minority shareholder of NTAM Other income JKNDC Limited 960,312 A company owned by the minority shareholder of NTAM Cost of revenue- Asset management service payable to JKNDC Alpha Yield Limited 411,456 A director of NTAM is a shareholder of this company Consultancy fee payable to Alpha Yield Nice Talent Partner Limited 344,668 A company owned by the minority shareholder of NTAM Consultancy fee payable to Nice Talent Partner Name Amount Relationship Note Nice Talent Partner Limited 242,544 A company owned by the minority shareholder of NTAM Consultancy fee payable to Nice Talent Partner * The related party transactions have been approved by the Company’s Audit Committee. |
Income Tax (Tables)
Income Tax (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Income Tax [Abstract] | |
Schedule of Statutory EIT Rate Applicable to Profits of the Consolidated Entities and the Income Tax Expenses | Reconciliation of the differences between the statutory EIT rate applicable to profits of the consolidated entities and the income tax expenses of the Company: September 30, September 30, Loss before taxation $ (6,268,184 ) $ (8,155,624 ) PRC statutory tax rate 25 % 25 % Computed expected benefits (1,567,046 ) (2,038,906 ) Others, primarily the differences in tax rates 385,370 603,823 Effect of tax losses not recognized 1,253,963 1,948,261 Total $ 72,287 $ 513,178 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Segment Gross Profit Reportable Segment | Segment profit represents the gross profit of each reportable segment. Asset Supply chain Others Total Reportable segment revenue $ 3,272,585 $ 19,991,244 $ 489,896 $ 23,753,725 Inter-segment loss - - - - Revenue from external customers $ 3,272,585 19,991,244 489,896 23,753,725 Segment gross profit $ 1,139,039 $ 59,050 $ 192,769 $ 1,390,858 Asset Supply chain Others Total Reportable segment revenue $ 4,118,065 $ 7,839,635 $ 1,319 $ 11,959,019 Inter-segment loss - - - - Revenue from external customers $ 4,118,065 $ 7,839,635 $ 1,319 $ 11,959,019 Segment gross profit $ 1,355,246 $ 136,561 $ 1,319 $ 1,493,126 Asset Supply chain Others Total Reportable segment revenue $ 9,690,714 $ 20,472,036 $ 793,931 $ 30,956,681 Inter-segment loss - - - - Revenue from external customers $ 9,690,714 20,472,036 793,931 30,956,681 Segment gross profit $ 3,320,498 $ 234,550 $ 302,614 $ 3,857,662 Asset Supply chain Others Total Reportable segment revenue $ 11,270,874 $ 11,494,617 $ 78,170 $ 22,843,661 Inter-segment loss - - - - Revenue from external customers $ 11,270,874 11,494,617 78,170 22,843,661 Segment gross profit $ 4,381,536 $ 196,817 $ 78,170 $ 4,656,523 |
Schedule of Loss from Continuing Operations Before Income Tax | Loss before Income Tax: Three Months Ended Nine Months Ended 2023 2022 2023 2022 Supply chain financing/trading $ 97,398 $ (326,287 ) $ 28,975 $ (224,156 ) Asset management service 1,061,838 514,264 2,745,995 1,531,592 Others 305,448 642,535 (97,975 ) 1,481,279 Corporate and Unallocated 2,365,132 4,095,074 7,448,851 10,023,432 Total operating expenses and other expense 3,829,816 4,925,586 10,125,846 12,812,147 Loss before Income Tax $ (2,438,958 ) $ (3,432,460 ) $ (6,268,184 ) $ (8,155,624 ) |
Schedule of Segment Assets | Segment assets: September 30, December 31, Supply chain financing/trading $ 14,991,235 $ 26,487,090 Asset management service 3,706,404 3,387,506 Others 17,295,394 14,090,091 Corporate and Unallocated 34,549,126 41,053,032 Total assets $ 70,542,159 $ 85,017,719 |
Corporate Information (Details)
Corporate Information (Details) | Sep. 29, 2022 EUR (€) | Apr. 18, 2022 USD ($) | Sep. 30, 2023 $ / shares shares | Jan. 26, 2023 shares | Dec. 31, 2022 shares |
Corporate information [Line Items} | |||||
Incorporated (in Dollars) | $ | $ 288 | ||||
Equity interest amount (in Euro) | € | € 685,000 | ||||
Common stock, shares authorized (in Shares) | 60,000,000 | 60,000,000 | |||
Common stock share price (in Dollars per share) | $ / shares | $ 0.001 | ||||
Preferred shares (in Shares) | 10,000,000 | ||||
KAZAN S.A [Member] | |||||
Corporate information [Line Items} | |||||
Equity interest | 100% | ||||
FTFT UK [Member] | |||||
Corporate information [Line Items} | |||||
Equity interest | 100% | 90% | |||
Kazan S.A [Member] | |||||
Corporate information [Line Items} | |||||
Equity interest | 10% | ||||
Minimum [Member] | |||||
Corporate information [Line Items} | |||||
Common stock, shares authorized (in Shares) | 300,000,000 | ||||
Maximum [Member] | |||||
Corporate information [Line Items} | |||||
Common stock, shares authorized (in Shares) | 60,000,000 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) | 9 Months Ended | |||||
Sep. 30, 2023 USD ($) | Sep. 30, 2023 CNY (¥) | Sep. 30, 2023 HKD ($) | Sep. 30, 2023 GBP (£) | Sep. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) | |
Summary of Significant Accounting Policies [Line Items] | ||||||
Operating loss | $ 6,340,000 | |||||
Operating cash flow amount | 6,420,000 | |||||
Government subsidies | 0 | ¥ 500,000 | $ 0 | £ 18,000 | ||
Bad debt expense | (1,152,798) | $ 1,947 | ||||
Accounts receivable | 4,924,826 | $ 19,157,538 | ||||
Revenue | 20,270,000 | 11,490,000 | ||||
Revenue value | $ 200,000 | |||||
Foreign Currency and Other Comprehensive Income (Loss) | The exchange rate we used to convert RMB to USD was 7.18:1 and 6.96:1 at the balance sheet dates of September 30, 2023 and December 31, 2022, respectively. The average exchange rate for the period has been used to translate revenues and expenses. The average exchange rates we used to convert RMB to USD were 7.01:1 and 6.61:1 for nine months ended September 30, 2023 and 2022, respectively.The exchange rate we used to convert HKD to USD was 7.82:1 and 7.80:1 at the balance sheet dates of September 30, 2023 and December 31, 2022. The average exchange rate for the period has been used to translate revenues and expenses. The average exchange rates we used to convert HKD to USD were 7.83:1 and 7.83:1 for nine months ended September 30, 2023 and 2022, respectively.The exchange rate we used to convert GBP to USD was 0.82:1 and 0.83:1 at the balance sheet dates of September 30, 2023 and December 31, 2022. The average exchange rate for the period has been used to translate revenues and expenses. The average exchange rates we used to convert GBP to USD were 0.80:1 and 0.80:1 for nine months ended September 30, 2023 and 2022, respectively. The exchange rate we used to convert AED to USD was 3.66:1 and 3.67:1 at the balance sheet dates of September 30, 2023 and December 31, 2022. The average exchange rate for the period has been used to translate revenues and expenses. The average exchange rates we used to convert AED to USD were 3.66:1 and 3.67:1 for nine months ended September 30 2023 and 2022, respectively.The exchange rate we used to convert PYG to USD was 7289.83:1 and 7322.90:1 at the balance sheet dates of September 30, 2023 and December 31, 2022. The average exchange rate for the period has been used to translate revenues and expenses. The average exchange rate we used to convert PYG to USD was 7250.00:1 and 6903.82:1 for nine months ended September 30 2023 and 2022. | The exchange rate we used to convert RMB to USD was 7.18:1 and 6.96:1 at the balance sheet dates of September 30, 2023 and December 31, 2022, respectively. The average exchange rate for the period has been used to translate revenues and expenses. The average exchange rates we used to convert RMB to USD were 7.01:1 and 6.61:1 for nine months ended September 30, 2023 and 2022, respectively.The exchange rate we used to convert HKD to USD was 7.82:1 and 7.80:1 at the balance sheet dates of September 30, 2023 and December 31, 2022. The average exchange rate for the period has been used to translate revenues and expenses. The average exchange rates we used to convert HKD to USD were 7.83:1 and 7.83:1 for nine months ended September 30, 2023 and 2022, respectively.The exchange rate we used to convert GBP to USD was 0.82:1 and 0.83:1 at the balance sheet dates of September 30, 2023 and December 31, 2022. The average exchange rate for the period has been used to translate revenues and expenses. The average exchange rates we used to convert GBP to USD were 0.80:1 and 0.80:1 for nine months ended September 30, 2023 and 2022, respectively. The exchange rate we used to convert AED to USD was 3.66:1 and 3.67:1 at the balance sheet dates of September 30, 2023 and December 31, 2022. The average exchange rate for the period has been used to translate revenues and expenses. The average exchange rates we used to convert AED to USD were 3.66:1 and 3.67:1 for nine months ended September 30 2023 and 2022, respectively.The exchange rate we used to convert PYG to USD was 7289.83:1 and 7322.90:1 at the balance sheet dates of September 30, 2023 and December 31, 2022. The average exchange rate for the period has been used to translate revenues and expenses. The average exchange rate we used to convert PYG to USD was 7250.00:1 and 6903.82:1 for nine months ended September 30 2023 and 2022. | The exchange rate we used to convert RMB to USD was 7.18:1 and 6.96:1 at the balance sheet dates of September 30, 2023 and December 31, 2022, respectively. The average exchange rate for the period has been used to translate revenues and expenses. The average exchange rates we used to convert RMB to USD were 7.01:1 and 6.61:1 for nine months ended September 30, 2023 and 2022, respectively.The exchange rate we used to convert HKD to USD was 7.82:1 and 7.80:1 at the balance sheet dates of September 30, 2023 and December 31, 2022. The average exchange rate for the period has been used to translate revenues and expenses. The average exchange rates we used to convert HKD to USD were 7.83:1 and 7.83:1 for nine months ended September 30, 2023 and 2022, respectively.The exchange rate we used to convert GBP to USD was 0.82:1 and 0.83:1 at the balance sheet dates of September 30, 2023 and December 31, 2022. The average exchange rate for the period has been used to translate revenues and expenses. The average exchange rates we used to convert GBP to USD were 0.80:1 and 0.80:1 for nine months ended September 30, 2023 and 2022, respectively. The exchange rate we used to convert AED to USD was 3.66:1 and 3.67:1 at the balance sheet dates of September 30, 2023 and December 31, 2022. The average exchange rate for the period has been used to translate revenues and expenses. The average exchange rates we used to convert AED to USD were 3.66:1 and 3.67:1 for nine months ended September 30 2023 and 2022, respectively.The exchange rate we used to convert PYG to USD was 7289.83:1 and 7322.90:1 at the balance sheet dates of September 30, 2023 and December 31, 2022. The average exchange rate for the period has been used to translate revenues and expenses. The average exchange rate we used to convert PYG to USD was 7250.00:1 and 6903.82:1 for nine months ended September 30 2023 and 2022. | The exchange rate we used to convert RMB to USD was 7.18:1 and 6.96:1 at the balance sheet dates of September 30, 2023 and December 31, 2022, respectively. The average exchange rate for the period has been used to translate revenues and expenses. The average exchange rates we used to convert RMB to USD were 7.01:1 and 6.61:1 for nine months ended September 30, 2023 and 2022, respectively.The exchange rate we used to convert HKD to USD was 7.82:1 and 7.80:1 at the balance sheet dates of September 30, 2023 and December 31, 2022. The average exchange rate for the period has been used to translate revenues and expenses. The average exchange rates we used to convert HKD to USD were 7.83:1 and 7.83:1 for nine months ended September 30, 2023 and 2022, respectively.The exchange rate we used to convert GBP to USD was 0.82:1 and 0.83:1 at the balance sheet dates of September 30, 2023 and December 31, 2022. The average exchange rate for the period has been used to translate revenues and expenses. The average exchange rates we used to convert GBP to USD were 0.80:1 and 0.80:1 for nine months ended September 30, 2023 and 2022, respectively. The exchange rate we used to convert AED to USD was 3.66:1 and 3.67:1 at the balance sheet dates of September 30, 2023 and December 31, 2022. The average exchange rate for the period has been used to translate revenues and expenses. The average exchange rates we used to convert AED to USD were 3.66:1 and 3.67:1 for nine months ended September 30 2023 and 2022, respectively.The exchange rate we used to convert PYG to USD was 7289.83:1 and 7322.90:1 at the balance sheet dates of September 30, 2023 and December 31, 2022. The average exchange rate for the period has been used to translate revenues and expenses. The average exchange rate we used to convert PYG to USD was 7250.00:1 and 6903.82:1 for nine months ended September 30 2023 and 2022. | ||
Short term investments | $ 950,000 | 990,000 | ||||
Unrealized holding gain | $ 3,872 | 930,000 | ||||
Agreement term | 10 years | 10 years | 10 years | 10 years | ||
Transfer price | $ 0 | |||||
Accounts Receivable [Member] | ||||||
Summary of Significant Accounting Policies [Line Items] | ||||||
Accounts receivable | $ 950,000 | |||||
Minimum [Member] | ||||||
Summary of Significant Accounting Policies [Line Items] | ||||||
Property and equipment ranges | 3% | |||||
Maximum [Member] | ||||||
Summary of Significant Accounting Policies [Line Items] | ||||||
Property and equipment ranges | 5% | |||||
Intangible assets useful life | 10 years |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) - Schedule of Numerators and Denominators Used in the Computations of Basic and Diluted EPS - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Schedule of Numerators and Denominators Used in the Computations of Basic And Diluted Eps [Abstract] | ||||
Net Income (loss) from continued operations, Income (in Dollars) | $ (2,408,300) | $ (3,531,499) | $ (6,162,248) | $ (8,164,899) |
Net Income (loss) from continued operations, Share | 14,645,653 | 14,214,832 | 14,645,653 | 14,214,832 |
Net Income (loss) from continued operations, Pre-share amount (in Dollars per share) | $ (0.16) | $ (0.25) | $ (0.42) | $ (0.57) |
Net income (loss)from discontinuing operations, Income (in Dollars) | $ 105,480 | $ (154) | ||
Net income (loss) from discontinuing operations, Share | 14,645,653 | 14,214,832 | 14,645,653 | 14,214,832 |
Net income (loss) from discontinuing operations, Pre-share amount (in Dollars per share) | $ 0.01 | |||
Basic EPS: | ||||
Loss available to common stockholders from continuing operations, Income (in Dollars) | $ (2,408,300) | $ (3,531,499) | $ (6,162,248) | $ (8,164,899) |
Loss available to common stockholders from continuing operations, Share | 14,645,653 | 14,214,832 | 14,645,653 | 14,214,832 |
Loss available to common stockholders from continuing operations, Pre-share amount (in Dollars per share) | $ (0.16) | $ (0.25) | $ (0.42) | $ (0.57) |
Income (loss)available to common stockholders from discontinuing operations, Income (in Dollars) | $ 105,480 | $ (154) | ||
Income (loss) available to common stockholders from discontinuing operations, Share | 14,645,653 | 14,214,832 | 14,645,653 | 14,214,832 |
Income (loss) available to common stockholders from discontinuing operations, Pre-share amount (in Dollars per share) | $ 0.01 | |||
Dilutive EPS: | ||||
Warrants, Income (in Dollars) | ||||
Warrants, Share | 42,108 | 557,791 | 42,108 | 557,791 |
Warrants, Pre-share amount (in Dollars per share) | ||||
Diluted loss per share is calculated by taking net loss, divided by the diluted weighted average common shares outstanding. Diluted net loss per share equals basic net loss per share because the effect of securities convertible into common shares is anti-dilutive, Income (in Dollars) | $ (2,408,300) | $ (3,531,499) | $ (6,162,248) | $ (8,164,899) |
Diluted loss per share is calculated by taking net loss, divided by the diluted weighted average common shares outstanding. Diluted net loss per share equals basic net loss per share because the effect of securities convertible into common shares is anti-dilutive, Share | 14,687,761 | 14,772,623 | 14,687,761 | 14,772,623 |
Diluted loss per share is calculated by taking net loss, divided by the diluted weighted average common shares outstanding. Diluted net loss per share equals basic net loss per share because the effect of securities convertible into common shares is anti-dilutive, Pre-share amount (in Dollars per share) | $ (0.11) | $ (0.24) | $ (0.42) | $ (0.34) |
Diluted income per share is calculated by taking net loss, divided by the diluted weighted average common shares outstanding, Income (in Dollars) | $ 105,480 | $ (154) | ||
Diluted income per share is calculated by taking net loss, divided by the diluted weighted average common shares outstanding, Share | 14,687,761 | 14,772,623 | 14,687,761 | 14,772,623 |
Diluted income per share is calculated by taking net loss, divided by the diluted weighted average common shares outstanding, Pre-share amount (in Dollars per share) | $ 0.01 | $ 0.01 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Details) - Schedule of Property, Plant and Equipment are Depreciated Estimated Useful Lives | Sep. 30, 2023 |
Machinery and equipment [Member] | Minimum [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of Property, Plant and Equipment are Depreciated Estimated Useful Lives [Line Items] | |
Estimated useful lives | 5 years |
Machinery and equipment [Member] | Maximum [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of Property, Plant and Equipment are Depreciated Estimated Useful Lives [Line Items] | |
Estimated useful lives | 10 years |
Building [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of Property, Plant and Equipment are Depreciated Estimated Useful Lives [Line Items] | |
Estimated useful lives | 30 years |
Furniture and office equipment [Member] | Minimum [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of Property, Plant and Equipment are Depreciated Estimated Useful Lives [Line Items] | |
Estimated useful lives | 3 years |
Furniture and office equipment [Member] | Maximum [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of Property, Plant and Equipment are Depreciated Estimated Useful Lives [Line Items] | |
Estimated useful lives | 5 years |
Motor vehicles [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of Property, Plant and Equipment are Depreciated Estimated Useful Lives [Line Items] | |
Estimated useful lives | 5 years |
Variable Interest Entity (Detai
Variable Interest Entity (Details) - Schedule of Consolidated Assets and Liabilities - Variable Interest Entity [Member] - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Condensed Balance Sheet Statements, Captions [Line Items] | ||
Cash and cash equivalents | $ 10,549 | $ 12,684 |
Other receivables | 745 | 768 |
Other current assets | 7,863 | 14,371 |
Total current assets | 19,157 | 27,823 |
Property and equipment, net | 71 | 98 |
Intangible assets | 88,302 | |
Total assets | 19,228 | 116,223 |
Total liabilities | (240,266) | (248,964) |
Net assets | (221,038) | (132,741) |
Current liabilities: | ||
Accounts payable | 18,098 | 18,657 |
Accrued expenses and other payables | 5,025 | 6,455 |
Advances from customers | 2,569 | 2,648 |
Amount due to related party | 214,574 | 221,204 |
Total current liabilities | 240,266 | 248,964 |
Total liabilities | $ 240,266 | $ 248,964 |
Variable Interest Entity (Det_2
Variable Interest Entity (Details) - Schedule of Operating Results - Variable Interest Entity [Member] - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Condensed Income Statements, Captions [Line Items] | ||||
Revenue | $ (355) | $ 1,378 | $ 72,455 | $ 2,029 |
Gross profit | (6,573) | 1,390 | 3,255 | 2,029 |
Net loss | $ (180,198) | $ (48,517) | $ (199,756) | $ (143,424) |
Accounts Receivable (Details) -
Accounts Receivable (Details) - Schedule of accounts receivable, net - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Schedule of Accounts Receivable Net [Abstract] | ||
Supply Chain Financing/Trading | $ 1,816,911 | $ 6,624,654 |
Asset management service | 1,400,416 | 1,145,518 |
Others | 8,326 | 26,500 |
Total accounts receivable, net | $ 3,225,653 | $ 7,796,672 |
Accounts Receivable (Details)_2
Accounts Receivable (Details) - Schedule of accounts receivable, net of specific allowances for doubtful accounts | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Dec. 31, 2022 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total accounts receivable, net | 81.12% | 75.99% |
Debtor A [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total accounts receivable, net | 33.05% | 46.08% |
Debtor B [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total accounts receivable, net | 26.92% | 15.65% |
Debtor C [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total accounts receivable, net | 21.15% | 14.26% |
Other Receivables (Details)
Other Receivables (Details) $ in Thousands | 9 Months Ended | 12 Months Ended | ||||
Jan. 09, 2023 USD ($) | Oct. 01, 2022 EUR (€) | Apr. 22, 2022 USD ($) | Sep. 30, 2023 USD ($) | Dec. 31, 2022 USD ($) | Feb. 03, 2023 USD ($) | |
Other receivables [Line Items] | ||||||
Other receivables | $ 5,890 | |||||
Deposit | 1,860 | $ 2,400 | ||||
Deposit payment | 1,460 | |||||
Other receivables | $ 2,650 | |||||
Company incorporated (in Euro) | € | € 786,887 | |||||
Cash balance (in Euro) | € | € 400,000 | |||||
Refund received | $ 240 | |||||
Cash deposit amount | $ 1,000 | |||||
Receivable resale | $ 240 | |||||
Deposit paid and prepayments | 1,170 | |||||
Resale of Electricity [Member] | ||||||
Other receivables [Line Items] | ||||||
Deposit | $ 170 | |||||
Business Combination [Member] | ||||||
Other receivables [Line Items] | ||||||
Equity interest percentage | 100% |
Loan Receivables (Details)
Loan Receivables (Details) $ in Thousands, ¥ in Millions | 1 Months Ended | 9 Months Ended | ||||||||||||||||||||||
Sep. 09, 2024 | Sep. 09, 2023 | Sep. 06, 2023 | Jul. 14, 2023 | May 30, 2023 | Mar. 26, 2023 | Jul. 15, 2022 | Jul. 14, 2022 USD ($) | May 31, 2022 USD ($) | May 30, 2022 | Mar. 10, 2022 USD ($) | Sep. 08, 2021 USD ($) | Jul. 17, 2023 USD ($) | Jul. 17, 2023 CNY (¥) | Apr. 17, 2023 USD ($) | Apr. 17, 2023 CNY (¥) | Mar. 30, 2023 USD ($) | Dec. 26, 2022 USD ($) | Sep. 30, 2023 USD ($) | Sep. 30, 2023 CNY (¥) | Sep. 30, 2023 CNY (¥) | Dec. 31, 2022 USD ($) | Jul. 14, 2022 CNY (¥) | Sep. 08, 2021 CNY (¥) | |
Loan Receivables (Details) [Line Items] | ||||||||||||||||||||||||
Loan receivables | $ 7,280 | $ 6,360 | $ 5,000 | $ 220 | $ 400 | $ 4,920 | ¥ 50 | ¥ 1.5 | ||||||||||||||||
Annual interest rate | 10% | 5.25% | 8% | 10% | 8% | 8% | 10% | 10% | 10% | 5.25% | 10% | |||||||||||||
Repayment amount | $ 400 | $ 220 | 2,180 | ¥ 15 | ||||||||||||||||||||
Loan receivables | $ 19,160 | |||||||||||||||||||||||
Hong Kong [Member] | ||||||||||||||||||||||||
Loan Receivables (Details) [Line Items] | ||||||||||||||||||||||||
Loan receivables | $ 5,000 | |||||||||||||||||||||||
Repayment amount | 2,160 | |||||||||||||||||||||||
Future Private Equity Fund Management [Member] | ||||||||||||||||||||||||
Loan Receivables (Details) [Line Items] | ||||||||||||||||||||||||
Repayment received | $ 5,090 | ¥ 35 | ||||||||||||||||||||||
Loan Agreement [Member] | ||||||||||||||||||||||||
Loan Receivables (Details) [Line Items] | ||||||||||||||||||||||||
Loan receivables | $ 6,360 | |||||||||||||||||||||||
Annual interest rate | 10% | 10% | 10% | |||||||||||||||||||||
Received payment | 6,360 | |||||||||||||||||||||||
Repayment amount | 400 | |||||||||||||||||||||||
Future FinTech (Hong Kong) [Member] | ||||||||||||||||||||||||
Loan Receivables (Details) [Line Items] | ||||||||||||||||||||||||
Repayment received | 2,160 | |||||||||||||||||||||||
Loan Agreement [Member] | ||||||||||||||||||||||||
Loan Receivables (Details) [Line Items] | ||||||||||||||||||||||||
Loan receivables | $ 6,920 | $ 2,080 | ¥ 15 | ¥ 50 | ||||||||||||||||||||
Annual interest rate | 10% | 8% | 10% | |||||||||||||||||||||
Repayment amount | 4,830 | ¥ 35 | ||||||||||||||||||||||
FTFT HK [Member] | ||||||||||||||||||||||||
Loan Receivables (Details) [Line Items] | ||||||||||||||||||||||||
Loan receivables | $ 400 | |||||||||||||||||||||||
Annual interest rate | 10% | |||||||||||||||||||||||
Repayment amount | $ 6,360 |
Short - Term Investment (Detail
Short - Term Investment (Details) | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2023 USD ($) | Dec. 31, 2022 USD ($) | Sep. 06, 2021 USD ($) | Sep. 06, 2021 CNY (¥) | |
Short - Term Investment (Details) [Line Items] | ||||
Short term investment | $ 950,000 | $ 990,000 | ||
Equity fund invests | $ 1,870,000 | ¥ 13,000,000 | ||
Investment portfolio | 3,872 | 910,000 | ||
Investments [Member] | ||||
Short - Term Investment (Details) [Line Items] | ||||
Short term investment | $ 950,000 | $ 990,000 | ||
Private Equity Funds [Member] | ||||
Short - Term Investment (Details) [Line Items] | ||||
Equity fund invests | $ 1,790,000 | ¥ 13,000,000 |
Other Current Assets (Details)
Other Current Assets (Details) - Schedule of Other Current Assets - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Schedule of Other Current Assets [Abstract] | ||
Prepayments for Supply Chain Financing/Trading | $ 54,405 | $ 3,766,643 |
Prepayments for Sand and Steel Supply Chain Financing/Trading | 1,485,999 | |
Prepaid expenses | 92,499 | 72,544 |
Others | 579,202 | 831,077 |
Total | $ 2,212,105 | $ 4,670,264 |
Goodwill (Details)
Goodwill (Details) | 12 Months Ended | |||||||
Oct. 01, 2022 USD ($) | Oct. 01, 2022 EUR (€) | Aug. 04, 2021 shares | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Sep. 30, 2023 USD ($) | Aug. 06, 2021 USD ($) | Aug. 06, 2021 HKD ($) | |
Goodwill [Line Items] | ||||||||
Goodwill | $ 13,976,084 | $ 13,976,084 | ||||||
Percentage of issued and outstanding shares | 90% | 90% | ||||||
Purchase price | $ 11,220,000 | $ 144,000,000 | ||||||
Purchase price percentage | 40% | 40% | 60% | 60% | ||||
Reverse stock split shares | shares | 2,244,156 | |||||||
Purchase Price | $ 7,390,000 | $ 7,390,000 | ||||||
Paid in shares of common stock percentage | 20% | 20% | ||||||
Company incorporated | $ 950,000 | € 786,887 | ||||||
Nice Talent Asset Management Limited [Member] | ||||||||
Goodwill [Line Items] | ||||||||
Impairment loss | $ 2,210,000 | |||||||
Khyber Money Exchange Ltd. [Member] | ||||||||
Goodwill [Line Items] | ||||||||
Equity interest percent | 100% | 100% |
Acquisition (Details)
Acquisition (Details) $ in Thousands | 9 Months Ended | 12 Months Ended | ||||||
Oct. 17, 2023 | Oct. 01, 2022 USD ($) | Oct. 01, 2022 GBP (£) | Aug. 06, 2021 HKD ($) | Aug. 04, 2021 USD ($) shares | Sep. 30, 2023 | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Acquisition (Details) [Line Items] | ||||||||
Issued and outstanding, percentage | 90% | |||||||
Purchase price (in Dollars) | $ 144,000,000 | |||||||
Purchase price percentage | 60% | |||||||
Paid amount (in Dollars) | $ 11,220 | |||||||
Shares issued (in Shares) | shares | 2,244,156 | |||||||
Purchase, price percentage | 40% | 40% | ||||||
Purchase price (in Dollars) | $ 7,390 | $ 7,390 | ||||||
Number of installments | 2 | |||||||
Paid in shares of common stock percentage | 20% | 20% | ||||||
Acquired equity interest | 100% | 100% | ||||||
Company incorporated | $ 950 | £ 786,887 | ||||||
Common Stock [Member] | ||||||||
Acquisition (Details) [Line Items] | ||||||||
Purchase price (in Dollars) | $ 7,390 | $ 7,390 | ||||||
Joy Rich [Member] | ||||||||
Acquisition (Details) [Line Items] | ||||||||
Purchase, price percentage | 40% | |||||||
Nice Talent [Member] | ||||||||
Acquisition (Details) [Line Items] | ||||||||
Purchase, price percentage | 40% | 40% | ||||||
Number of installments | 2 |
Acquisition (Details) - Schedul
Acquisition (Details) - Schedule of Net Assets Acquired and Liabilities | Sep. 30, 2023 USD ($) |
Schedule of Net Assets Acquired and Liabilities [Abstract] | |
Accounts receivable | $ 1,407,902 |
Other receivables | 27,701 |
Other current assets | 7,039 |
Property, plant and equipment, net | 53,577 |
Amount Due from Related Party | 38,323 |
Accrued expenses and other payables | (498,515) |
Net identifiable assets acquired | 1,036,027 |
Less: non-controlling interests | 131,165 |
Add: goodwill | 17,164,598 |
Total purchase price for acquisition net of $275,624 of cash | $ 18,069,460 |
Acquisition (Details) - Sched_2
Acquisition (Details) - Schedule of Net Assets Acquired and Liabilities (Parentheticals) | 9 Months Ended |
Sep. 30, 2023 USD ($) | |
Schedule of Net Assets Acquired and Liabilities [Abstract] | |
Acquisition net of cash | $ 275,624 |
Acquisition (Details) - Sched_3
Acquisition (Details) - Schedule of Allocation of Estimated Fair Values of Net Assets Acquired and Liabilities - Khyber Money Exchange Ltd [Member] | 9 Months Ended |
Sep. 30, 2023 USD ($) | |
Business Acquisition [Line Items] | |
Other receivables | $ 242,087 |
Property, plant and equipment, net | 584 |
Accrued expenses and other payables | (89,888) |
Net identifiable assets acquired | 152,783 |
Add: goodwill | 628,938 |
Total purchase price for acquisition net of $166,676 of cash | $ 781,721 |
Acquisition (Details) - Sched_4
Acquisition (Details) - Schedule of Allocation of Estimated Fair Values of Net Assets Acquired and Liabilities (Parentheticals) | 9 Months Ended |
Sep. 30, 2023 USD ($) | |
Khyber Money Exchange Ltd [Member] | |
Business Acquisition [Line Items] | |
Acquisition net | $ 166,676 |
Leases (Details)
Leases (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2023 USD ($) | |
Leases [Abstract] | |
Operating lease cost | $ 800 |
Remaining lease, term | 42 months |
Weighted average remaining lease term | 3 years 6 months |
Weighted average discount rate | 4.75% |
Short term leases cost | $ 170 |
Leases (Details) - Schedule of
Leases (Details) - Schedule of Maturities of Lease Liabilities | Sep. 30, 2023 USD ($) |
Schedule of Maturities of Lease Liabilities [Abstract] | |
From October 1, 2023 to September 30, 2024 | $ 358,374 |
From October 1, 2024 to September 30, 2025 | 204,000 |
From October 1, 2025 to September 30, 2026 | 204,000 |
From October 1, 2026 to September 30, 2027 | 102,000 |
Total | 868,374 |
Less: amounts representing interest | 65,394 |
Present Value of future minimum lease payments | 802,980 |
Less: Current obligations | 289,781 |
Long term obligations | $ 513,199 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Property and Equipment (Details) [Line Items] | ||
Depreciation expense | $ 223,687 | $ 137,187 |
General and administration expenses | 137,187 | |
Cost of Sales [Member] | ||
Property and Equipment (Details) [Line Items] | ||
Depreciation expense |
Property and Equipment (Detai_2
Property and Equipment (Details) - Schedule of Property and Equipment - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 1,432,323 | $ 1,327,762 |
Less: accumulated depreciation and amortization | (491,077) | (277,094) |
Construction in progress | 3,691,710 | 3,372,301 |
Impairment | (5,518) | (5,688) |
Property and Equipment, net | 4,627,438 | 4,417,281 |
Office equipment, fixtures and furniture [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 544,645 | 491,022 |
Vehicle [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 850,026 | 798,955 |
Building [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 37,652 | $ 37,785 |
Intangible Assets (Details)
Intangible Assets (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Intangible Assets Disclosure [Abstract] | ||
General and administration expenses | $ 42,776 | $ 45,699 |
Amortization expense |
Intangible Assets (Details) - S
Intangible Assets (Details) - Schedule of Intangible Assets - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Schedule of Intangible Assets [Abstract] | ||
Intangible assets, gross | $ 2,519,383 | $ 2,579,509 |
Less: accumulated depreciation and amortization | (237,536) | (199,151) |
Less: impairment | (1,806,554) | (1,862,289) |
Intangible assets, Total | 475,293 | 518,069 |
Trademarks [Member] | ||
Schedule of Intangible Assets [Abstract] | ||
Intangible assets, gross | 836 | 862 |
System and software [Member] | ||
Schedule of Intangible Assets [Abstract] | ||
Intangible assets, gross | $ 2,518,547 | $ 2,578,647 |
Intangible Assets (Details) -_2
Intangible Assets (Details) - Schedule of Estimated Amortization - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Schedule of Estimated Amortization [Abstract] | ||
From October 1, 2023 to September 30, 2024 | $ 57,035 | |
From October 1, 2024 to September 30, 2025 | 57,035 | |
From October 1, 2025 to September 30, 2026 | 57,035 | |
From October 1, 2026 to September 30, 2027 | 57,035 | |
From October 1, 2027 to September 30, 2028 | 57,035 | |
Thereafter | 190,118 | |
Total | $ 475,293 | $ 518,069 |
Note Payable (Details)
Note Payable (Details) | Sep. 30, 2023 |
Note Payable [Abstract] | |
Overdue interest shall be charged | 0.05% |
Note Payable (Details) - Schedu
Note Payable (Details) - Schedule of Note Payable | 9 Months Ended |
Sep. 30, 2023 USD ($) | |
Note Payable (Details) - Schedule of Note Payable [Line Items] | |
Principal amount | $ 696,398 |
FUCE Future Supply Chain (Xi’an) Co., Ltd. [Member] | |
Note Payable (Details) - Schedule of Note Payable [Line Items] | |
Issue date | Dec. 19, 2022 |
Principal amount | $ 696,398 |
Mature date | Dec. 19, 2023 |
Fee | 0.05% |
Account Payables (Details) - Sc
Account Payables (Details) - Schedule of Accounts Payables - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Dec. 31, 2022 | |
Schedule of Accounts Payables [Abstract] | ||
Supply Chain Financing/Trading payment | $ 334,153 | $ 3,584,920 |
Others | 18,098 | 18,657 |
Total | $ 352,251 | $ 3,603,577 |
Accrued Expenses and Other Pa_3
Accrued Expenses and Other Payables (Details) - Schedule of Accrued Expenses and Other Payables - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Schedule of Accrued Expenses and Other Payables [Abstract] | ||
Legal fee and other professionals | $ 64,511 | $ 533,048 |
Wages and employee reimbursement | 136,605 | 763,983 |
Suppliers | 871,076 | 708,287 |
Accruals | 1,419,016 | 208,938 |
Total | $ 2,491,208 | $ 2,214,256 |
Advances from Customers (Detail
Advances from Customers (Details) - Schedule of Advances from Customers - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Advances from Customers [Abstract] | ||
Coal and Aluminum Ingots Supply Chain Financing/Trading | $ 313 | $ 1,233,592 |
Others | 65,354 | 2,649 |
Total | $ 65,667 | $ 1,236,241 |
Deferred Liabilities (Details)
Deferred Liabilities (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | ||
Oct. 17, 2023 | Sep. 30, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Deferred Liabilities [Line Items] | ||||
Deferred liabilities (in Dollars) | $ 7,390 | $ 7,390 | ||
Purchase, price percentage | 40% | 40% | ||
Number of installments | 2 | |||
Purchase shares percentage | 20% | 20% | ||
Nice Talent Asset Management Limited [Member] | ||||
Deferred Liabilities [Line Items] | ||||
Purchase, price percentage | 20% | 20% |
Related Party Transaction (Deta
Related Party Transaction (Details) - Schedule of Due to Related Parties - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Related Party [Member] | ||
Schedule of Due to Related Parties [Line Items] | ||
Amount | $ 235,350 | $ 244,819 |
Zhi Yan [Member] | ||
Schedule of Due to Related Parties [Line Items] | ||
Amount | $ 204,610 | $ 230,281 |
Relationship | General Manager of a subsidiary of the Company | General Manager of a subsidiary of the Company |
Note | Accrued expenses, interest free and payment on demand. | Other payables, interest free and payment on demand. |
Ming Yi [Member] | ||
Schedule of Due to Related Parties [Line Items] | ||
Amount | $ 16,638 | |
Relationship | Chief Financial Officer of the Company | |
Note | Accrued expenses, interest free and payment on demand. | |
Reits (Beijing) Technology Co., Ltd [Member] | ||
Schedule of Due to Related Parties [Line Items] | ||
Amount | $ 14,102 | $ 14,538 |
Relationship | Zhi Yan is the legal representative of this company | Zhi Yan is the legal representative of this company |
Note | Acquisition of intangibles upon the full completion of the online platform pursuant to an agreement originally entered between parties before Zhi Yan became a related party. The amount is interest free and payment on demand. | Acquisition of intangibles upon the full completion of the online platform pursuant to an agreement originally entered between parties before Zhi Yan was the general manager of our subsidiary. |
Related Party Transaction (De_2
Related Party Transaction (Details) - Schedule of Due from Related Parties - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 | |
Related Party [Member] | |||
Schedule of Due from Related Parties [Line Items] | |||
Amount | $ 50,981 | $ 53,126 | |
Kai Xu [Member] | |||
Schedule of Due from Related Parties [Line Items] | |||
Amount | $ 50,687 | $ 16 | |
Relationship | Deputy General Manager of a subsidiary of the Company | Deputy General Manager of a subsidiary of the Company | |
Note | Prepaid expenses, interest free and payment on demand. | Advance to the officer, interest free and payment on demand. | |
Yang Liu [Member] | |||
Schedule of Due from Related Parties [Line Items] | |||
Amount | $ 294 | ||
Relationship | [1] | Chief Operating Officer of the Company* | |
Note | Prepaid expenses, interest free and payment on demand. | ||
Ming Yi [Member] | |||
Schedule of Due from Related Parties [Line Items] | |||
Amount | $ 12,135 | ||
Relationship | Chief Financial Officer of the Company | ||
Note | Advance to the officer, interest free and payment on demand. | ||
Jing chen [Member] | |||
Schedule of Due from Related Parties [Line Items] | |||
Amount | $ 971 | ||
Relationship | Vice president of the Company | ||
Note | Advance to the officer, interest free and payment on demand. | ||
Ola Johannes Lind [Member] | |||
Schedule of Due from Related Parties [Line Items] | |||
Amount | $ 2,168 | ||
Relationship | Chief Executive Officer of the FTFT Capital Investments L.L.C. and Chief Strategy Officer of the Company | ||
Note | Advance to the officer, interest free and payment on demand. | ||
Wong Tai Kue [Member] | |||
Schedule of Due from Related Parties [Line Items] | |||
Amount | $ 37,836 | ||
Relationship | NTAM’s Director | ||
Note | Advance to the directors Amount is interest free and payment on demand. | ||
[1]Mr. Yang Liu resigned as Chief Operating Officer of the Company on July 27, 2023 and remains as an officer of a subsidiary of the Company. |
Related Party Transaction (De_3
Related Party Transaction (Details) - Schedule of Company Transactions with Related Parties - USD ($) | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
JKNDC Limited [Member] | ||
Schedule of Company Transactions with Related Parties [Line Items] | ||
Amount | $ (5,744) | |
Relationship | A company owned by the minority shareholder of NTAM | |
Note | Other income | |
JKNDC Limited [Member] | ||
Schedule of Company Transactions with Related Parties [Line Items] | ||
Amount | $ 960,312 | |
Relationship | A company owned by the minority shareholder of NTAM | |
Note | Cost of revenue- Asset management service payable to JKNDC | |
Alpha Yield Limited [Member] | ||
Schedule of Company Transactions with Related Parties [Line Items] | ||
Amount | $ 411,456 | |
Relationship | A director of NTAM is a shareholder of this company | |
Note | Consultancy fee payable to Alpha Yield | |
Nice Talent Partner Limited [Member] | ||
Schedule of Company Transactions with Related Parties [Line Items] | ||
Amount | $ 344,668 | $ 242,544 |
Relationship | A company owned by the minority shareholder of NTAM | A company owned by the minority shareholder of NTAM |
Note | Consultancy fee payable to Nice Talent Partner | Consultancy fee payable to Nice Talent Partner |
Income Tax (Details)
Income Tax (Details) ¥ in Millions | 9 Months Ended | ||
Sep. 30, 2023 USD ($) | Sep. 30, 2023 CNY (¥) | Sep. 30, 2022 USD ($) | |
Income Tax (Details) [Line Items] | |||
Tax rate | 25% | 25% | 21% |
Income tax expenses (in Dollars) | $ | $ 72,287 | $ 513,178 | |
Pre-tax profits (in Yuan Renminbi) | ¥ 1 | ||
Income tax percentage | 10% | 10% | |
Enterprise income tax rate | 25% | 25% | |
Minimum [Member] | |||
Income Tax (Details) [Line Items] | |||
Pre-tax profits (in Yuan Renminbi) | ¥ 1 | ||
Maximum [Member] | |||
Income Tax (Details) [Line Items] | |||
Pre-tax profits (in Yuan Renminbi) | ¥ 3 | ||
United Kingdom [Member] | |||
Income Tax (Details) [Line Items] | |||
Tax rate | 2.50% | 2.50% | |
Hong Kong [Member] | Maximum [Member] | |||
Income Tax (Details) [Line Items] | |||
Tax rate | 16.50% | 16.50% | |
FTFT Paraguay S.A. [Member] | |||
Income Tax (Details) [Line Items] | |||
Tax rate | 19% | 19% | |
United Arab Emirates [Member] | |||
Income Tax (Details) [Line Items] | |||
Tax rate | |||
British Virgin Island [Member] | |||
Income Tax (Details) [Line Items] | |||
Tax rate | |||
Future Supply (Chengdu) Co., Ltd [Member] | |||
Income Tax (Details) [Line Items] | |||
Tax rate | 10% | 10% | |
United Kingdom [Member] | |||
Income Tax (Details) [Line Items] | |||
Tax rate | 21% | 21% | |
Future Big Data (Chengdu) Co., Ltd [Member] | |||
Income Tax (Details) [Line Items] | |||
Tax rate | 2.50% | 2.50% | |
FTFT Paraguay S.A. [Member] | |||
Income Tax (Details) [Line Items] | |||
Tax rate | 10% | 10% |
Income Tax (Details) - Schedule
Income Tax (Details) - Schedule of Statutory EIT Rate Applicable to Profits of the Consolidated Entities and the Income Tax Expenses - USD ($) | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Schedule of Statutory Eit Rate Applicable to Profits of the Consolidated Entities and the Income Tax Expenses [Abstract] | ||
Loss before taxation | $ (6,268,184) | $ (8,155,624) |
PRC statutory tax rate | 25% | 25% |
Computed expected benefits | $ (1,567,046) | $ (2,038,906) |
Others, primarily the differences in tax rates | 385,370 | 603,823 |
Effect of tax losses not recognized | 1,253,963 | 1,948,261 |
Total | $ 72,287 | $ 513,178 |
Impairment Loss (Details)
Impairment Loss (Details) | Sep. 30, 2023 USD ($) | Sep. 30, 2023 CNY (¥) | Dec. 31, 2022 USD ($) | Sep. 30, 2022 USD ($) |
Impairment loss [Line Items] | ||||
Impairment loss | $ (5,518) | $ (5,688) | ||
Investment amount | 1,850,000 | ¥ 13,000,000 | ||
Short term investment | 950,000 | 990,000 | ||
Future Private Equity Fund Management (Hainan) Co., Ltd. [Member] | ||||
Impairment loss [Line Items] | ||||
Impairment loss | $ 230,000 | |||
Short term investment | $ 950,000 | $ 980,000 |
Share Based Compensation (Detai
Share Based Compensation (Details) $ / shares in Units, $ in Thousands | 1 Months Ended | 9 Months Ended | 12 Months Ended | |||||||
Jul. 12, 2022 USD ($) $ / shares shares | Jan. 25, 2021 USD ($) $ / shares | Jan. 25, 2020 USD ($) $ / shares shares | Jan. 25, 2022 USD ($) shares | Jan. 25, 2021 $ / shares shares | Sep. 30, 2023 USD ($) $ / shares shares | Dec. 31, 2020 USD ($) $ / shares shares | Sep. 30, 2023 CNY (¥) shares | Jan. 26, 2023 shares | Dec. 31, 2022 $ / shares shares | |
Share Based Compensatio [Line Items] | ||||||||||
Reverse stock split | 1-for-5 reverse stock split | |||||||||
Authorized shares of common stock | 60,000,000 | 60,000,000 | 60,000,000 | |||||||
Consulting fee (in Dollars) | $ | $ 3,000 | |||||||||
Restricted shares | 3,750,000 | |||||||||
Common stock price per share (in Dollars per share) | $ / shares | $ 0.794 | |||||||||
Consulting service agreement, description | the Company issued the Consultant Shares pursuant to the Agreement, of which 1,500,000 shares were released to the Consultant immediately, 1,125,000 and 1,125,000 shares, respectively, will be held by the Company and released to the Consultant on January 25, 2021 and January 25, 2022 if this Agreement has not been terminated and there has been no breach of the Agreement by the Consultant at such time. | |||||||||
Stock related compensation expenses (in Dollars) | $ | $ 890 | $ 1,190 | ||||||||
Stock closing price (in Dollars per share) | $ / shares | $ 0.794 | $ 0.794 | ||||||||
Net income percentage | 10% | |||||||||
Payment dividends percentage | 50% | |||||||||
Restriction amounted | $ 26,610 | ¥ 191,062,532 | ||||||||
Shares of common stock | 3,047,000 | |||||||||
Common stock, par value (in Dollars per share) | $ / shares | $ 0.001 | $ 0.001 | ||||||||
Stock price (in Dollars per share) | $ / shares | $ 0.42 | |||||||||
Company expense (in Dollars) | $ | $ 1,280 | |||||||||
Common Stock [Member] | ||||||||||
Share Based Compensatio [Line Items] | ||||||||||
Common stock, par value (in Dollars per share) | $ / shares | $ 0.001 | |||||||||
Maximum [Member] | ||||||||||
Share Based Compensatio [Line Items] | ||||||||||
Authorized shares of common stock | 60,000,000 | |||||||||
Maximum [Member] | Common Stock [Member] | ||||||||||
Share Based Compensatio [Line Items] | ||||||||||
Authorized shares of common stock | 300,000,000 | 300,000,000 | ||||||||
Minimum [Member] | ||||||||||
Share Based Compensatio [Line Items] | ||||||||||
Authorized shares of common stock | 300,000,000 | |||||||||
Minimum [Member] | Common Stock [Member] | ||||||||||
Share Based Compensatio [Line Items] | ||||||||||
Authorized shares of common stock | 60,000,000 | 60,000,000 | ||||||||
Consulting Service Agreement [Member] | ||||||||||
Share Based Compensatio [Line Items] | ||||||||||
Stock related compensation expenses (in Dollars) | $ | $ 890 | |||||||||
Stock closing price (in Dollars per share) | $ / shares | $ 0.794 | |||||||||
Issued upon shares related to consultant | 1,500,000 | |||||||||
Consultant shares | 1,125,000 | 1,125,000 | ||||||||
Stock related compensation | 1,125,000 | |||||||||
Shanchun Huang [Member] | ||||||||||
Share Based Compensatio [Line Items] | ||||||||||
Shares of common stock | 800,000 | |||||||||
Yongke Xue [Member] | ||||||||||
Share Based Compensatio [Line Items] | ||||||||||
Shares of common stock | 800,000 | |||||||||
Ming Yi [Member] | ||||||||||
Share Based Compensatio [Line Items] | ||||||||||
Shares of common stock | 100,000 | |||||||||
Peng Lei [Member] | ||||||||||
Share Based Compensatio [Line Items] | ||||||||||
Shares of common stock | 547,000 | |||||||||
Pang Dong [Member] | ||||||||||
Share Based Compensatio [Line Items] | ||||||||||
Shares of common stock | 300,000 | |||||||||
Kai Xu [Member] | ||||||||||
Share Based Compensatio [Line Items] | ||||||||||
Shares of common stock | 500,000 |
Segment Reporting (Details) - S
Segment Reporting (Details) - Schedule of Segment Gross Profit Reportable Segment - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Segment Reporting Information [Line Items] | ||||
Reportable segment revenue | $ 23,753,725 | $ 11,959,019 | $ 30,956,681 | $ 22,843,661 |
Inter-segment loss | ||||
Revenue from external customers | 23,753,725 | 11,959,019 | 30,956,681 | 22,843,661 |
Segment gross profit | 1,390,858 | 1,493,126 | 3,857,662 | 4,656,523 |
Asset management service [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Reportable segment revenue | 3,272,585 | 4,118,065 | 9,690,714 | 11,270,874 |
Inter-segment loss | ||||
Revenue from external customers | 3,272,585 | 4,118,065 | 9,690,714 | 11,270,874 |
Segment gross profit | 1,139,039 | 1,355,246 | 3,320,498 | 4,381,536 |
Supply chain financing/ trading [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Reportable segment revenue | 19,991,244 | 7,839,635 | 20,472,036 | 11,494,617 |
Inter-segment loss | ||||
Revenue from external customers | 19,991,244 | 7,839,635 | 20,472,036 | 11,494,617 |
Segment gross profit | 59,050 | 136,561 | 234,550 | 196,817 |
Other Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Reportable segment revenue | 489,896 | 1,319 | 793,931 | 78,170 |
Inter-segment loss | ||||
Revenue from external customers | 489,896 | 1,319 | 793,931 | 78,170 |
Segment gross profit | $ 192,769 | $ 1,319 | $ 302,614 | $ 78,170 |
Segment Reporting (Details) -_2
Segment Reporting (Details) - Schedule of Loss from Continuing Operations Before Income Tax - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Segment Reporting (Details) - Schedule of Loss from Continuing Operations Before Income Tax [Line Items] | ||||
Total operating expenses and other expense | $ 3,829,816 | $ 4,925,586 | $ 10,125,846 | $ 12,812,147 |
Loss before Income Tax | (2,438,958) | (3,432,460) | (6,268,184) | (8,155,624) |
Supply chain financing/trading [Member] | ||||
Segment Reporting (Details) - Schedule of Loss from Continuing Operations Before Income Tax [Line Items] | ||||
Total operating expenses and other expense | 97,398 | (326,287) | 28,975 | (224,156) |
Asset management service [Member] | ||||
Segment Reporting (Details) - Schedule of Loss from Continuing Operations Before Income Tax [Line Items] | ||||
Total operating expenses and other expense | 1,061,838 | 514,264 | 2,745,995 | 1,531,592 |
Other Segments [Member] | ||||
Segment Reporting (Details) - Schedule of Loss from Continuing Operations Before Income Tax [Line Items] | ||||
Total operating expenses and other expense | 305,448 | 642,535 | (97,975) | 1,481,279 |
Corporate and Unallocated [Member] | ||||
Segment Reporting (Details) - Schedule of Loss from Continuing Operations Before Income Tax [Line Items] | ||||
Total operating expenses and other expense | $ 2,365,132 | $ 4,095,074 | $ 7,448,851 | $ 10,023,432 |
Segment Reporting (Details) -_3
Segment Reporting (Details) - Schedule of Segment Assets - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Segment Reporting (Details) - Schedule of Segment Assets [Line Items] | ||
Total assets | $ 70,542,159 | $ 85,017,719 |
Supply chain financing/trading [Member] | ||
Segment Reporting (Details) - Schedule of Segment Assets [Line Items] | ||
Total assets | 14,991,235 | 26,487,090 |
Asset management service [Member] | ||
Segment Reporting (Details) - Schedule of Segment Assets [Line Items] | ||
Total assets | 3,706,404 | 3,387,506 |
Others [Member] | ||
Segment Reporting (Details) - Schedule of Segment Assets [Line Items] | ||
Total assets | 17,295,394 | 14,090,091 |
Corporate and Unallocated [Member] | ||
Segment Reporting (Details) - Schedule of Segment Assets [Line Items] | ||
Total assets | $ 34,549,126 | $ 41,053,032 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 25, 2023 | Jul. 07, 2023 | Jul. 03, 2023 | |
Commitments and Contingencies (Details) [Line Items] | ||||
Damages and attorneys’ fees | $ 7,000,000 | |||
Penalty amount | 1,650,000 | $ 150,000 | $ 150,000 | $ 150,000 |
Second Installment [Member] | ||||
Commitments and Contingencies (Details) [Line Items] | ||||
Penalty amount | 375,000 | |||
Third Installment [Member] | ||||
Commitments and Contingencies (Details) [Line Items] | ||||
Penalty amount | 375,000 | |||
Fourth Installment [Member] | ||||
Commitments and Contingencies (Details) [Line Items] | ||||
Penalty amount | 375,000 | |||
Last installment [Member] | ||||
Commitments and Contingencies (Details) [Line Items] | ||||
Penalty amount | $ 375,000 |
Risks and Uncertainties (Detail
Risks and Uncertainties (Details) - Revenue Benchmark [Member] - Customer Concentration Risk [Member] | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
One Customer [Member] | ||
Risks And Uncertainties [Line Items] | ||
Concentration risk percentage | 60.84% | 45.93% |
Customers Two [Member] | ||
Risks And Uncertainties [Line Items] | ||
Concentration risk percentage | 27.88% | 16.47% |
Customers Three [Member] | ||
Risks And Uncertainties [Line Items] | ||
Concentration risk percentage | 13.08% | |
Vendor one [Member] | ||
Risks And Uncertainties [Line Items] | ||
Concentration risk percentage | 75.83% | 24.34% |
Vendor two [Member] | ||
Risks And Uncertainties [Line Items] | ||
Concentration risk percentage | 22.80% | |
Vendor three [Member] | ||
Risks And Uncertainties [Line Items] | ||
Concentration risk percentage | 19.43% |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event [Member] | Nov. 07, 2023 USD ($) | Nov. 07, 2023 HKD ($) |
Subsequent Events (Details) [Line Items] | ||
Issued percentage | 100% | 100% |
Hong Kong [Member] | ||
Subsequent Events (Details) [Line Items] | ||
Transaction amount | $ 15,659,949 | |
Alpha Financial Limited [Member] | ||
Subsequent Events (Details) [Line Items] | ||
Transaction amount | $ 2,007,686 |