Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2024 | May 17, 2024 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Interactive Data Current | Yes | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2024 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q1 | |
Entity Information [Line Items] | ||
Entity Registrant Name | Future FinTech Group Inc. | |
Entity Central Index Key | 0001066923 | |
Entity File Number | 001-34502 | |
Entity Tax Identification Number | 98-0222013 | |
Entity Incorporation, State or Country Code | FL | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Shell Company | false | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Contact Personnel [Line Items] | ||
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 | 1177 | |
Entity Phone Fax Numbers [Line Items] | ||
City Area Code | 888 | |
Local Phone Number | 622-1218 | |
Entity Listings [Line Items] | ||
Title of 12(b) Security | Common Stock, par value $0.001 per share | |
Trading Symbol | FTFT | |
Security Exchange Name | NASDAQ | |
Entity Common Stock, Shares Outstanding | 19,985,410 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) ¥ in Thousands | Mar. 31, 2024 USD ($) | Dec. 31, 2023 USD ($) |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 14,886,541 | $ 19,032,278 |
Short - term investment | 959,028 | |
Accounts receivable, net | 4,618,861 | 5,705,877 |
Notes receivable | 650,000 | |
Advances to suppliers and other current assets | 18,391,419 | 3,837,752 |
Loan receivables | 14,882,847 | 14,895,086 |
Other receivables, net | 101,098 | 10,048,297 |
TOTAL CURRENT ASSETS | 53,615,942 | 54,490,469 |
Property, plant and equipment, net | 4,608,429 | 4,579,188 |
Right of use assets - operation lease | 1,111,533 | 1,282,111 |
Intangible assets | 574,548 | 588,982 |
TOTAL NON-CURRENT ASSETS | 6,294,510 | 6,450,281 |
TOTAL ASSETS | 59,910,452 | 60,940,750 |
CURRENT LIABILITIES | ||
Accounts payable | 2,245,287 | 3,320,061 |
Accrued expenses and other payables | 13,189,384 | 11,997,481 |
Advances from customers | 53,494 | 306,315 |
Convertible notes payables | 1,122,663 | 1,100,723 |
Lease liability - operation lease | 382,172 | 498,736 |
TOTAL CURRENT LIABILITIES | 17,539,753 | 17,728,362 |
NON-CURRENT LIABILITIES | ||
Lease liability - operation lease | 746,265 | 797,344 |
TOTAL NON-CURRENT LIABILITIES | 746,265 | 797,344 |
TOTAL LIABILITIES | 18,286,018 | 18,525,706 |
Commitments and contingencies (Note 22) | ||
Future FinTech Group, Inc, Stockholders’ equity | ||
Common stock, $0.001 par value; 60,000,000 shares authorized; 19,985,410 shares and 17,834,874 shares issued and outstanding as of March 31, 2024 and December 31, 2023 respectively | 19,985 | 17,835 |
Additional paid-in capital | 236,469,490 | 233,890,997 |
Statutory reserve | 98,357 | 98,357 |
Accumulated deficits | (189,256,870) | (185,929,662) |
Accumulated other comprehensive loss | (4,141,900) | (4,094,276) |
Total Future FinTech Group, Inc. stockholders’ equity | 43,189,062 | 43,983,251 |
Non-controlling interests | (1,564,628) | (1,568,207) |
TOTAL STOCKHOLDERS’ EQUITY | 41,624,434 | 42,415,044 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | 59,910,452 | 60,940,750 |
Related Party | ||
CURRENT ASSETS | ||
Amount due from related party | 86,832 | 12,151 |
CURRENT LIABILITIES | ||
Amounts due to related parties | $ 546,753 | $ 505,046 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parentheticals) - $ / shares | Mar. 31, 2024 | Dec. 31, 2023 |
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 | 19,985,410 | 17,834,874 |
Common stock, shares outstanding | 19,985,410 | 17,834,874 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Revenue | $ 5,122,967 | $ 3,364,450 |
Gross profit | 1,951,272 | 1,201,616 |
Operating Expenses | ||
General and administrative expenses | 3,421,472 | 3,375,828 |
Research and development expenses | 645 | 205,999 |
Selling expenses | 266,685 | 127,162 |
Provision of doubtful debts | 794,355 | 16,826 |
Total operating expenses | 4,483,157 | 3,725,815 |
Loss from operations | (2,531,885) | (2,524,199) |
Other (expenses) income | ||
Interest income | 305,267 | 455,453 |
Interest expenses | (24,216) | |
Other expenses, net | (1,718,232) | (44,729) |
Total other expense, net | (1,437,181) | 410,724 |
Loss before Income Tax | (3,969,066) | (2,113,475) |
Income tax provision | (25,674) | |
Loss from Continuing Operations | (3,969,066) | (2,139,149) |
Discontinued Operations (Note 20) | ||
Loss from discontinued operations | (108,328) | |
Gain on disposal of discontinued operations | 645,437 | |
Net Loss | (3,323,629) | (2,247,477) |
Less: Net Loss attributable to non-controlling interests | 3,579 | (71,013) |
Net loss attributable to Future Fintech Group, Inc. | (3,327,208) | (2,176,464) |
Other comprehensive income (loss) | ||
Loss from continued operations | (3,969,066) | (2,139,149) |
Unrealized holding gains/(losses) on available-for-sale securities | 180,851 | |
Foreign currency translation – continued operations | (47,624) | 377,772 |
Comprehensive loss - continued operation | (4,016,690) | (1,580,526) |
Gain from discontinued operations | 645,437 | (108,328) |
Foreign currency translation - discontinued operation | 26,317 | |
Comprehensive Gain - discontinued operation | 645,437 | (82,011) |
Comprehensive Loss | (3,371,253) | (1,662,537) |
Less: Net loss attributable to non-controlling interests | 3,579 | (71,013) |
COMPREHENSIVE LOSS ATTRIBUTABLE TO FUTURE FINTECH GROUP INC. STOCKHOLDERS | $ (3,374,832) | $ (1,591,524) |
Loss per share: | ||
Basic loss per share from continued operation (in Dollars per share) | $ (0.2) | $ (0.14) |
Basic loss per share from discontinued operation (in Dollars per share) | 0.03 | (0.01) |
Diluted loss per share: | ||
Diluted loss per share from continued operation (in Dollars per share) | (0.2) | (0.14) |
Diluted loss per share from discontinued operation (in Dollars per share) | 0.03 | (0.01) |
Diluted loss per share (in Dollars per share) | $ (0.17) | $ (0.15) |
Weighted average number of shares outstanding | ||
Basic (in Shares) | 19,867,249 | 14,645,653 |
Diluted (in Shares) | 19,909,357 | 14,856,179 |
Third party | ||
Cost of revenues - third party | $ 3,036,055 | $ 1,800,876 |
Cost of revenues-related party | $ 3,036,055 | $ 1,800,876 |
Loss per share: | ||
Basic loss per share from discontinued operation (in Dollars per share) | $ 0.03 | $ (0.01) |
Related party | ||
Cost of revenues - third party | $ 135,640 | $ 361,958 |
Cost of revenues-related party | $ 135,640 | $ 361,958 |
Loss per share: | ||
Basic loss per share (in Dollars per share) | $ (0.17) | $ (0.15) |
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, 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 | ||||||
Net loss from continued operation | (2,068,136) | (71,013) | (2,139,149) | ||||
Net loss from discontinued operations | (108,328) | (108,328) | |||||
Unrealized holding gains/(losses) on available-for-sale securities | 180,851 | 180,851 | |||||
Disposition of Discontinued operation | 26,317 | 26,317 | |||||
Foreign currency translation adjustment | 377,772 | (377,772) | |||||
Balance at Mar. 31, 2023 | $ 14,646 | 222,751,657 | 98,357 | (154,452,898) | (3,038,065) | (1,350,593) | 64,023,104 |
Balance (in Shares) at Mar. 31, 2023 | 14,645,653 | ||||||
Balance at Dec. 31, 2023 | $ 17,835 | 233,890,997 | 98,357 | (185,929,662) | (4,094,276) | (1,568,207) | $ 42,415,044 |
Balance (in Shares) at Dec. 31, 2023 | 17,834,874 | 17,834,874 | |||||
Net loss from continued operation | (3,972,645) | 3,579 | $ (3,969,066) | ||||
Issuance of common stocks-non cash | $ 2,150 | 2,578,493 | 2,580,643 | ||||
Issuance of common stocks-non cash (in Shares) | 2,150,536 | ||||||
Net loss from discontinued operations | |||||||
Unrealized holding gains/(losses) on available-for-sale securities | |||||||
Disposition of Discontinued operation | 645,437 | 645,437 | |||||
Foreign currency translation adjustment | (47,624) | (47,624) | |||||
Balance at Mar. 31, 2024 | $ 19,985 | $ 236,469,490 | $ 98,357 | $ (189,256,870) | $ (4,141,900) | $ (1,564,628) | $ 41,624,434 |
Balance (in Shares) at Mar. 31, 2024 | 19,985,410 | 19,985,410 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) | 3 Months Ended | |
Mar. 31, 2024 USD ($) | Mar. 31, 2023 USD ($) | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net loss | $ (3,323,629) | $ (2,247,477) |
Net gain (loss) from discontinued operation | 645,437 | (108,328) |
Net loss from continuing operations | (3,969,066) | (2,139,149) |
Adjustments to reconcile net income to net cash provided by operating activities | ||
Depreciation | 66,859 | 71,397 |
Amortization | 14,259 | 14,259 |
Provision of doubtful debts | 794,355 | 16,826 |
Investment loss | 12,058 | |
Interest expenses related to convertible note | 21,940 | |
Changes in operating assets and liabilities | ||
Accounts receivable | 1,127,255 | 3,461,950 |
Notes receivable | (648,344) | |
Other receivable | 9,112,605 | (2,874,474) |
Advances to suppliers and other current assets | (14,553,667) | (10,555,514) |
Operating lease assets and liabilities | 2,935 | |
Accounts payable | (1,074,774) | (1,970,579) |
Accrued expenses | 1,191,903 | (668,773) |
Advances from customers | (252,821) | 4,370,386 |
Net Cash Used in Operating Activities – Continued Operations | (8,154,503) | (10,273,671) |
Net Cash Provided in Operating Activities – Discontinued Operations | 645,437 | 31,916 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Additions to property, plant and equipment | (145,709) | (17,010) |
Disposal of property and equipment | 1,369 | |
Repayment for loan receivable | 224,970 | |
Payment for short term investment | 946,970 | |
Disposal of a subsidiary, net of cash | (10,720) | |
Net Cash Provided by Investing Activities from Continued Operations | 802,630 | 197,240 |
Net Cash Used in Investing Activities from Discontinued Operations | 0 | (51,960) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Proceeds from the issuance of common stock, net of issuance costs | 2,580,643 | |
Proceeds from amounts due from related parties, net | 243,725 | 46,860 |
Repayment of amounts due to related parties, net | (275,792) | (104,156) |
Net cash provided by financing activities from continued operations | 2,548,576 | (57,297) |
Effect of change in exchange rate | 12,123 | 305,321 |
NET DECREASE IN CASH AND RESTRICTED CASH | (4,145,737) | (9,848,450) |
Cash and cash equivalents, from the continuing operations beginning of year | 19,032,278 | 29,648,236 |
Less: Cash and cash equivalents from the discontinued operations, end of year | (10,720) | |
Cash and cash equivalents, from the continuing operations end of year | 14,886,541 | 19,789,066 |
SUPPLEMENTARY DISCLOSURE OF SIGNIFICANT NON-CASH TRANSACTION | ||
Issuance of common stocks | 2,580,644 | |
SUPPLEMENTAL CASH FLOW INFORMATION | ||
Cash paid for income taxes | $ 6,208 | $ 63,162 |
Corporate Information
Corporate Information | 3 Months Ended |
Mar. 31, 2024 | |
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 Company historically engaged in the production and sale of fruit juice concentrates (including fruit purees and fruit juices), fruit beverages (including fruit juice beverages and fruit cider beverages) in the PRC. Due to drastically increased production costs and tightened environmental laws in China, the Company had transformed its business from fruit juice manufacturing and distribution to financial technology related service businesses. The main business of the Company includes supply chain financing services and trading in China, asset management business in Hong Kong and cross-border money transfer service in UK. The Company also expanded into brokerage and investment banking business in Hong Kong and cryptocurrency mining farm in the U.S. The Company had a contractual arrangements with a VIE E-Commerce Tianjin in China, which has generated minimal revenue and business since 2021 due to the negative impact caused by COVID-19. The Company started the process to close it down in November 2023 and completed deregistration and dissolution of the VIE with local authority on March 7, 2024. 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 The Company’s business and operations are principally conducted by its subsidiaries in the PRC and Hong Kong. On January 26, 2023, the Company filed with the Florida Secretary of State’s office Articles of Amendment (the “Amendment”) to amend its Second Amended and Restated Articles of Incorporation, as amended (“Articles of Incorporation”). As a result of the Amendment, the Company has authorized and approved a 1-for-5 reverse stock split of the Company’s authorized shares of common stock from 300,000,000 shares to 60,000,000 shares, accompanied by a corresponding decrease in the Company’s issued and outstanding shares of common stock (the “Reverse Stock Split”). The common stock continues to be $0.001 par value. The Company rounded up to the next full share of the Company’s shares of common stock any fractional shares that resulted from the Reverse Stock Split and no fractional shares was issued in connection with the Reverse Stock Split and no cash or other consideration was paid in connection with any fractional shares that would otherwise have resulted from the Reverse Stock Split. No changes were made to the number of preferred shares of the Company which remain as 10,000,000 preferred shares as authorized but not issued. The amendment to the Articles of Incorporation of the Company took effect on February 1, 2023. The Reverse Stock Split and Amendment were authorized and approved by the Board of Directors of the Company without shareholders’ approval, pursuant to 607.10025 of the Florida Business Corporation Act of the State of Florida. The reverse stock split would be reflected in our March 31, 2024 and December 31, 2023 statements of changes in stockholders’ equity, and in per share data for all periods presented. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2024 | |
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 March 31, 2024 and the results of operations and cash flows for the periods ended March 31, 2024 and 2023. 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 three months ended March 31, 2024 are not necessarily indicative of the results to be expected for any subsequent periods or for the entire year ending December 31, 2024. The balance sheet at December 31, 2023 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, 2023 as included in our Annual Report on Form 10-K. Discontinued Operations On June 16, 2023, QR (HK) Limited was dissolved and deregistered. On December 5, 2023, FTFT PARAGUAY S.A. was dissolved. On March 7, 2024, Chain Cloud Mall Network and Technology (Tianjin) Co., 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 supply chain financing and trading and asset management services, 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 $3.97 million, and it had negative operating cash flows amounted $8.15 million as of March 31, 2024. 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. As of March 31, 2024: Income Share Pre-share Loss from continued operations attributable to Future Fintech Group, Inc. $ (3,972,645 ) 19,867,249 $ (0.20 ) Income from discontinued operations attributable to Future Fintech Group, Inc. 645,437 19,867,249 0.03 Basic EPS: Loss to common stockholders from continuing operations (3,972,645 ) 19,867,249 (0.20 ) Income available to common stockholders from discontinued operations $ 645,437 19,867,249 $ 0.03 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 from continued operations attributable to Future Fintech Group, Inc. (3,972,645 ) 19,909,357 (0.20 ) Diluted earnings per share is calculated by taking net loss, divided by the diluted weighted average common shares outstanding from discontinued operations 645,437 19,909,357 0.03 As of March 31, 2023: Income Share Pre-share Loss from continued operations attributable to Future Fintech Group, Inc. $ (2,068,136 ) 14,645,653 $ (0.14 ) Income from discontinued operations attributable to Future Fintech Group, Inc. (108,328 ) 14,645,653 (0.01 ) Basic EPS: Loss to common stockholders from continuing operations (2,068,136 ) 14,645,653 (0.14 ) Loss available to common stockholders from discontinued operations $ (108,328 ) 14,645,653 $ (0.01 ) Dilutive EPS: Warrants - 210,526 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 continued operations attributable to Future Fintech Group, Inc. (2,068,136 ) 14,856,179 (0.14 ) Diluted loss per share is calculated by taking net loss, divided by the diluted weighted average common shares outstanding from discontinued operations (108,328 ) 14,856,179 (0.01 ) 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 HKD500,000 000 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 March 31, 2024. Bad debt expense was $794,355 and $16,826 during the three months ended March 31, 2024 and 2023, respectively. Accounts receivables of $1.79 million and $0.97 million have been outstanding for over 90 days as of March 31, 2024 and December 31, 2023, respectively. 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 $0.40 million and nil Sales agent services for 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 amount billed to customers. 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 from sales agent service fees of coals, aluminum ingots, sand and steel when no control obtained throughout the transactions. Revenue was $0.04 million and $0.11 million during the three months ended March 31, 2024 and 2023, respectively. 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 its 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 year, 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 7.10:1 and 7.08:1 at the balance sheet dates of March 31, 2024 and December 31, 2023, 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 7.10:1 and 6.67:1 for three months ended March 31, 2024 and 2023, respectively. The exchange rate we used to convert HKD to USD was 7.83:1 and 7.82:1 at the balance sheet dates of March 31, 2024 and December 31, 2023. 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 7.82:1 and 7.84:1 for three months ended March 31, 2024 and 2023, respectively. The exchange rate we used to convert GBP to USD was 0.79:1 and 0.78:1 at the balance sheet dates of March 31, 2024 and December 31, 2023. 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 0.79:1 and 0.82:1 for three months ended March 31, 2024 and 2023, respectively. The exchange rate we used to convert AED to USD was 3.66:1 and 3.66:1 at the balance sheet dates of March 31, 2024 and December 31, 2023. 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 3.67:1 and 3.67:1 for three months ended March 31 2024 and 2023, respectively. The exchange rate we used to convert PYG to USD was 7393.74:1 and 7298.63:1 at the balance sheet dates of March 31, 2024 and December 31, 2023. 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 7290.28:1 and 7275.55:1 for three months ended March 31 2024 and 2023, respectively. 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. In addition, the discounted cash flow model requires the Company to select an appropriate weighted average cost of capital based on current market conditions as of March 31, 2024 and December 31, 2023. A high degree of auditor judgment and an increased extent of effort were required when performing audit procedures to evaluate the reasonableness of management’s estimates and assumptions related to the forecasts. Based upon the assessment, the Company has concluded that goodwill was nil 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 March 31, 2024 and December 31, 2023, the short-term investments amounted to nil nil 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. 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. 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. |
Accounts Receivable
Accounts Receivable | 3 Months Ended |
Mar. 31, 2024 | |
Accounts Receivable [Abstract] | |
ACCOUNTS RECEIVABLE | 3. ACCOUNTS RECEIVABLE Accounts receivable, net consist of the following: March 31, December 31, 2024 2023 Supply Chain Financing/Trading $ 1,848,841 $ 3,251,822 Asset management service $ 1,858,231 $ 1,250,613 Others $ 911,789 $ 1,203,442 Total accounts receivable, net $ 4,618,861 $ 5,705,877 The following table sets forth our concentration of accounts receivable, net of specific allowances for doubtful accounts. March 31, December 31, 2024 2023 Debtor A 32.58 % 21.11 % Debtor B 19.93 % 15.35 % Debtor C 9.91 % 15.25 % Total accounts receivable, net 62.42 % 51.71 % |
Note Receivables
Note Receivables | 3 Months Ended |
Mar. 31, 2024 | |
Note Receivables [Abstract] | |
NOTE RECEIVABLES | 4. NOTE RECEIVABLES As of March 31, 2024, the balance of note receivables was $0.65 million, which was from a third party. The Company accepted $0.65 million (RMB4.60 million) bank acceptance drafts from a third party, interest free of accounts receivable. The acceptance draft was issued on January 24, 2024 and has a maturity date of July 26, 2024. |
Other Receivables
Other Receivables | 3 Months Ended |
Mar. 31, 2024 | |
Other Receivables [Abstract] | |
OTHER RECEIVABLES | 5. OTHER RECEIVABLES As of March 31, 2024, the balance of other receivables was $0.10 million. As of December 31, 2023, the balance of other receivables was $10.05 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 $0.07 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. On December 6, 2023, Future Fintech (Hong Kong) Limited entered into a “Mobile Software Application Development Agreement” with a third-party. Future Fintech (Hong Kong) Limited shall pay $4.00 million. Future Fintech (Hong Kong) Limited provided initial amount of cash deposit to the third party in the amount of $2.00 million. Development shall take 250 man-days. On December 6, 2023, Future Fintech (Hong Kong) Limited entered into a “Augmented Reality (AR) Group Development and Service Agreement” with a third-party. Future Fintech (Hong Kong) Limited shall pay $5.00 million. Future Fintech (Hong Kong) Limited provided initial amount of cash deposit to the third party in the amount of $2.50 million. Development shall take 180 man-days. In addition, other receivables included total $1.22 million deposit paid and prepayments to third parties. |
Loan Receivables
Loan Receivables | 3 Months Ended |
Mar. 31, 2024 | |
Loan Receivables [Abstract] | |
LOAN RECEIVABLES | 6 LOAN RECEIVABLES As of March 31, 2024, the balance of loan receivables was $14.88 million, which were from third parties. 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 May 13, 2024, the Company has received repayment $2.16 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 $7.05 million (RMB50 million) to the third party at the annual interest rate of 8% from July 15, 2022 to July 14, 2024, 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 $4.93 million (RMB35 million). The amount of $2.11 million (RMB15 million) will be repaid before July 14, 2024. On December 8, 2023, 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 $4.93 million (RMB35 million) to the third party at the annual interest rate of 5% from December 8, 2022 to December 8, 2024. On December 8, 2023, Future Fin Tech (Hong Kong) Limited entered into a “Loan Agreement” with a third party. Pursuant to the Loan Agreement, Future Fin Tech (Hong Kong) Limited loaned an amount of $5.00 million to the third party at the annual interest rate of 5% from December 8, 2022 to December 8, 2024. As of December 31, 2023, the balance of loan receivables was $14.90 million, which was from a third party. 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 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, 2024, 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 $2.12 million (RMB15 million) will be repaid before July 14, 2024. On December 8, 2023, 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 $4.94 million (RMB35 million) to the third party at the annual interest rate of 5% from December 8, 2023 to December 8, 2024. On December 8, 2023, Future Fin Tech (Hong Kong) Limited entered into a “Loan Agreement” with a third party. Pursuant to the Loan Agreement, Future Fin Tech (Hong Kong) Limited loaned an amount of $5.00 million to the third party at the annual interest rate of 5% from December 8, 2023 to December 8, 2024. |
Short - Term Investments
Short - Term Investments | 3 Months Ended |
Mar. 31, 2024 | |
Short-Term Investments [Abstract] | |
SHORT - TERM INVESTMENTS | 7. SHORT - TERM INVESTMENT As of March 31, 2024, the balance of short - term investments was nil the short – team investments amount of $0.95 million, with an investment loss $0.01 million. As of December 31, 2023, the balance of short - term investments was $0.96 million. On September 6, 2021, Future Private Equity Fund Management (Hainan) Co., Ltd. invested $1.87 million (RMB13,000,000) 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 $ 0.98 on December 31, 2023. Due to fluctuations of the quoted shares included in its investment portfolios, the Company recognized an impairment to the investment portfolio of $12,633 million for the years ended December 31, 2023. |
Other Current Assets
Other Current Assets | 3 Months Ended |
Mar. 31, 2024 | |
Other Current Assets [Abstract] | |
OTHER CURRENT ASSETS | 8. OTHER CURRENT ASSETS The amount of other current assets consisted of the followings: March 31, December 31, 2024 2023 Prepayments for Supply Chain Financing/Trading $ 4,016,482 $ 2,743,539 Prepaid expenses 9,823,422 29,694 Deposit 3,246,774 - Others 1,304,741 1,064,519 Total $ 18,391,419 $ 3,837,752 As of March 31, 2024, prepaid expenses were 9.82 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. On December 6, 2023, Future Fintech (Hong Kong) Limited entered into a “Mobile Software Application Development Agreement” with a third-party. Future Fintech (Hong Kong) Limited shall pay $4.00 million. Future Fintech (Hong Kong) Limited provided initial amount of cash deposit to the third party in the amount of $2.00 million. Development shall take 250 man-days. On December 6, 2023, Future Fintech (Hong Kong) Limited entered into a “Augmented Reality (AR) Group Development and Service Agreement” with a third-party. Future Fintech (Hong Kong) Limited shall pay $5.08 million. Future Fintech (Hong Kong) Limited provided initial amount of cash deposit to the third party in the amount of $2.50 million. Development shall take 180 man-days. On March 8, 2024, the Company pays the remaining balance $2.58 million. In addition, other receivables included total $0.34 million prepayments to a third party. |
Acquisition
Acquisition | 3 Months Ended |
Mar. 31, 2024 | |
Acquisition [Abstract] | |
ACQUISITION | 9. ACQUISITION Alpha International Securities (Hong Kong) Limited On November 7, 2023, Future FinTech (Hong Kong) Limited, a wholly owned subsidiary of the Company completed the acquisition ("Acquisition Date”) of 100% equity interest of Alpha International Securities (Hong Kong) Limited a company incorporated in Hong Kong for $1,791,174 ( HKD14,010,421 Alpha Information Services (Shenzhen) Co., Ltd On November 7, 2023, Future FinTech (Hong Kong) Limited, a wholly owned subsidiary of the Company acquired 100% equity interest of Alpha Information Services (Shenzhen) Co., Ltd. for $210,788 (HKD1,649,528). Alpha Information Services (Shenzhen) Co., Ltd provides information services for FTFT International Securities and Futures Limited. The Company has changed its name from Alpha Information Services (Shenzhen) Co., Ltd to Future information service (Shenzhen) Co., Ltd in November 2023. The following table summarizes the allocation of estimated fair values of net assets acquired and liabilities assumed: Accounts receivable $ 1,526,360 Other current assets 171,038 Property, plant and equipment, net 1,458 Intangible assets 127,846 Right of use assets 8,875 Lease liability-current (8,875 ) Accounts payable (4,123,903 ) Accrued expenses and other payables (552,484 ) Net identifiable assets acquired $ (2,849,685 ) Add: goodwill 172,213 Total purchase price for acquisition net of $4,679,434 of cash $ (2,677,472 ) The Company has included the operating results of FTFT International Securities and Futures Limited in its consolidated financial statements since the Acquisition Date. US$294,437 in net sales and US$88,408 in net income of FTFT International Securities and Futures Limited were included in the consolidated financial statements for the years ended December 31, 2023. The Company has included the operating results of Future information service (Shenzhen) Co., Ltd in its consolidated financial statements since the Acquisition Date. US$1,390 in net sales and US$ 50,80 |
Leases
Leases | 3 Months Ended |
Mar. 31, 2024 | |
Leases [Abstract] | |
LEASES | 10. 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 three months ended March 31, 2024, the operating lease cost was $0.18 million. The Company’s operating leases have remaining lease terms of approximately 53 months. As of March 31, 2024, the weighted average remaining lease term and weighted average discount rate were 3.56 years and 4.75%, respectively. Maturities of lease liabilities were as follows: Operating As of March 31, Lease From April 1, 2024 to March 31, 2025 $ 435,223 From April 1, 2025 to March 31, 2026 254,858 From April 1, 2026 to March 31, 2027 241,275 From April 1, 2027 to March 31, 2028 200,526 From April 1, 2028 to March 31, 2029 83,553 Total $ 1,215,435 Less: amounts representing interest $ 86,998 Present Value of future minimum lease payments 1,128,437 Less: Current obligations 382,172 Long term obligations $ 746,265 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 $1,979 for three months ended March 31, 2024. |
Property and Equipment
Property and Equipment | 3 Months Ended |
Mar. 31, 2024 | |
Property and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT | 11. PROPERTY AND EQUIPMENT Property and equipment consist of the following: March 31, December 31, 2024 2023 Office equipment, fixtures and furniture $ 638,345 $ 633,936 Vehicle 728,201 730,998 Building 162,328 146,053 Subtotal 1,528,874 1,510,987 Less: accumulated depreciation and amortization (778,667 ) (716,828 ) Construction in progress 3,863,806 3,790,623 Impairment (5,584 ) (5,594 ) Total $ 4,608,429 $ 4,579,188 Depreciation expense included in general and administration expenses for the three months ended March 31, 2024 and 2023 was $66,859 and $71,397, respectively. Depreciation expense included in cost of sales for the three months ended March 31, 2024 and 2023 was $0 and $0, respectively. |
Intangible Assets
Intangible Assets | 3 Months Ended |
Mar. 31, 2024 | |
Intangible Assets [Abstract] | |
INTANGIBLE ASSETS | 12. INTANGIBLE ASSETS Intangible assets consist of the following: March 31, December 31, 2024 2023 Trademarks $ 128,619 847 System and software 2,506,301 2,730,549 Subtotal 2,634,920 2,731,396 Less: accumulated depreciation and amortization (318,934 ) (311,131 ) Less: impairment (1,741,438 ) (1,831,283 ) Total $ 574,548 $ 588,982 Amortization expense included in general and administration expenses for the three months ended March 31, 2024 and 2023 was $14,259 and $14,259, respectively. Amortization expense included in cost of sales for the three months ended March 31, 2024 and 2023 was $0 and $0, respectively. The estimated amortization is as follows: As of March 31, Estimated From April 1, 2024 to March 31, 2025 $ 57,035 From April 1, 2025 to March 31, 2026 57,035 From April 1, 2026 to March 31, 2027 57,035 From April 1, 2027 to March 31, 2028 57,035 From April 1, 2028 to March 31, 2029 57,035 Thereafter 161,600 Total $ 446,775 Type 1 and Type 2 licenses by Hong Kong Securities and Futures Commission have no expiration date and do not require amortization, amount was $127,773. |
Account Payables
Account Payables | 3 Months Ended |
Mar. 31, 2024 | |
Account Payables [Abstract] | |
ACCOUNT PAYABLES | 13. ACCOUNT PAYABLES The amount of account payables were consisted of the followings: March 31, December 31, 2024 2023 Supply Chain Financing/Trading payment $ 118,274 $ 728,010 Others 2,127,013 2,592,051 Total $ 2,245,287 $ 3,320,061 |
Accrued Expenses and Other Paya
Accrued Expenses and Other Payables | 3 Months Ended |
Mar. 31, 2024 | |
Accrued Expenses and Other Payables [Abstract] | |
ACCRUED EXPENSES AND OTHER PAYABLES | 14. ACCRUED EXPENSES AND OTHER PAYABLES The amount of accrued expenses and other payables consisted of the followings: March 31, December 31, 2024 2023 Legal fee and other professionals $ 1,055,018 $ 832,263 Wages and employee reimbursement 165,550 509,288 Provision for legal case 10,598,380 8,875,265 Suppliers 841,874 731,521 Accruals 528,562 1,049,144 Total $ 13,189,384 $ 11,997,481 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. On April 11, 2024, on which date the jury returned a verdict in favor of FT Global and the Court entered a judgment awarding FT Global $8,875,265. On April 16, 2024, the Court issued an amended judgment, awarding FT Global $10,598,379.93, which includes $7,895,265.31 in damages, $1,723,114.62 in prejudgment interest, and $980,000.00 in attorney’s fees. |
Convertible Notes Payable
Convertible Notes Payable | 3 Months Ended |
Mar. 31, 2024 | |
Convertible Notes Payable [Abstract] | |
CONVERTIBLE NOTES PAYABLE | 15. CONVERTIBLE NOTES PAYABLE The amount of convertible notes payable consisted of the followings: March 31, December 31, 2024 2023 Beginning $ 1,100,723 $ - Addition - 1,100,723 Interest expenses 21,940 - Payment - - Conversion - - Balance $ 1,122,663 $ 1,100,723 |
Related Party Transaction
Related Party Transaction | 3 Months Ended |
Mar. 31, 2024 | |
Related Party Transaction [Abstract] | |
RELATED PARTY TRANSACTION | 16. RELATED PARTY TRANSACTION As of March 31, 2024, the amounts due to the related parties were consisted of the followings: Name Amount Relationship Note Chan Siu Kei 431,757 NTAM’s Director Other payables, interest free and payment on demand. JKNDC Ltd 114,996 A company owned by the minority shareholder of NTAM Other payables, interest free and payment on demand. Total $ 546,753 As of March 31, 2024, the amounts due from the related parties were consisted of the followings: Name Amount Relationship Note Xiaochen Zhao 929 Corporate legal representative Prepaid expenses, interest free and payment on demand. Hu Li 20,000 Corporate Secretary Prepaid expenses, interest free and payment on demand. Chao Li 2,115 Corporate legal representative Prepaid expenses, interest free and payment on demand. Ming Yi 63,788 Chief Financial Officer of the Company Prepaid expenses, interest free and payment on demand. Total $ 86,832 During three months ended March 31, 2024, the Company had the following transactions with related parties: Name Amount Relationship Note JKNDC Limited $ 1,918 A company owned by the minority shareholder of NTAM Other expenses JKNDC Limited 135,640 A company owned by the minority shareholder of NTAM Cost of revenue- Asset management service Nice Talent Partner Limited 115,087 A company owned by the minority shareholder of NTAM Consultancy fee As of December 31, 2023, the amount due to the related parties was consisted of the followings: Name Amount Relationship Note Chao Li $ 73,893 Corporate legal representative Other payables, interest free and payment on demand. Ming Yi 29,513 Chief Financial Officer of the Company Accrued expenses, interest free and payment on demand. Xiaochen Zhao 124 Corporate legal representative Accrued expenses, interest free and payment on demand. Chan Siu Kei 401,516 NTAM’s Director Other payables, interest free and payment on demand. Total $ 505,046 As of December 31, 2023, the amount due from the related parties was consisted of the followings: Name Amount Relationship Note Kai Xu $ 12,151 Deputy General Manager of a subsidiary of the Company Loan receivables*, interest free and payment on demand. Total $ 12,151 During three months ended March 31, 2023, the Company had the following transactions with related parties: Name Amount Relationship Note JKNDC Limited $ 1,914 A company owned by the minority shareholder of NTAM Other expenses JKNDC Limited 361,958 A company owned by the minority shareholder of NTAM Cost of revenue- Asset management service Alpha Yield Limited 178,913 A director of the Company is a shareholder of this company Consultancy fee Nice Talent Partner Limited 76,542 A company owned by the minority shareholder of NTAM Consultancy fee * The related party transactions have been approved by the Company’s Audit Committee. |
Income Tax
Income Tax | 3 Months Ended |
Mar. 31, 2024 | |
Income Tax [Abstract] | |
INCOME TAX | 17. 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 2024 and 2023. No provisions for income taxes have been made, as the Company had no U.S. taxable income for the three months ended March 31, 2024 and 2023. For the three months ended March 31, 2024 and 2023, the Company had current income tax expenses of nil 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 years ended March 31, 2024, 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 subsidiaries as they are to be permanently reinvested. 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% and the tax rate for pre-tax profits over RMB 3 million is 25%. 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 Reconciliation of the differences between the statutory EIT rate applicable to profits of the consolidated entities and the income tax expenses of the Company: March 31, March 31, 2023 Loss before taxation $ (3,969,066 ) $ (2,113,475 ) PRC statutory tax rate 25 % 25 % Computed expected benefits (992,267 ) (528,369 ) Others, primarily the differences in tax rates 263,975 50,866 Deferred tax assets losses not recognized 728,292 503,177 Total $ - $ 25,674 |
Share Based Compensation
Share Based Compensation | 3 Months Ended |
Mar. 31, 2024 | |
Share Based Compensation [Abstract] | |
SHARE BASED COMPENSATION | 18. SHARE BASED COMPENSATION On February 1, 2023, the Company effected a 1-for-5 reverse stock split of the Company’s issued and authorized shares and its total authorized shares of common stock reduced from 300,000,000 shares to 60,000,000 shares. 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 $24.83 million (RMB176,144,932) as of March 31, 2024. Except for the above or disclosed elsewhere, there is no other restriction on the use of proceeds generated by the Company’s subsidiaries to satisfy any obligations of the Company. Payments-omnibus equity plan On October 12, 2023, the Compensation Committee of the Board of Directors of the Company granted 2,890,000 shares of common stock of the Company, par value $0.001, pursuant to the Company’s 2023 Omnibus Equity Plan, to certain officers and employees of the Company and its subsidiaries (the “Grantees”). As the closing price of the Company stock was $1.20 on December 23, 2023, the Company recorded an expense of $3.47 million in the third quarter of fiscal year 2023. As of the date of this report, the Shares have been issued to the Grantees. |
Common Stock
Common Stock | 3 Months Ended |
Mar. 31, 2024 | |
Common Stock [Abstract] | |
COMMON STOCK | 19. COMMON STOCK Securities Purchase Agreement On December 24, 2020, the Company entered into a securities purchase agreement with certain purchasers, pursuant to which the Company sold to the purchasers in a registered direct offering, an aggregate of 4,210,530 units, each consisting of one share of our common stock and a warrant to purchase 1 share of our Common Stock, at a purchase price of $1.90 per unit, for aggregate gross proceeds to the Company of $8,000,007, before deducting fees to the placement agent and other offering expenses payable by the Company. On December 29, 2020, the Company issued Units consisting of an aggregate of 4,210,530 shares of our Common Stock and warrants to purchase up to an aggregate of 4,210,530 shares of our Common Stock at an exercise price of $2.15 per share (the “Investors’ Warrants”). The Investors’ Warrants have a term of five years and are exercisable by the holder at any time after the date of issuance. In connection with the offering, the Company also issued placement agent a warrant to purchase 210,526 shares of our Common Stock (the “Placement Agent Warrant”) on substantially the same terms as the Investors’ Warrants, except that the Placement Agent Warrant has an exercise price of $2.375 per share and are not exercisable until June 24, 2021. The share numbers in the descriptions above are pre reverse split on February 1, 2023. As of December 31, 2023, outstanding warrant has 42,108 underlying shares of our Common Stock. 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 Asset Management Limited from Joy Rich Enterprises Limited (the “Nice Shares”) 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 split shares of common stock of the Company on August 4, 2021, at a price of $5 per share. 40% of the Purchase Price ($7.39 million) was paid in 299,221 shares of common stock of the Company on October 17, 2023. On January 5, 2024, the Company entered into a securities purchase agreement with certain purchasers identified on the signature page thereto, pursuant to which the Company sold to the purchasers in a private placement, an aggregate of 2,150,536 share of its common stock, par value $0.001 per share at a purchase price of $1.20 per share, for aggregate net proceeds to the Company of $2,580,644. On January 18, 2024, the Company issued 2,150,536 shares of common stock pursuant to this Agreement. |
Discontinued Operations
Discontinued Operations | 3 Months Ended |
Mar. 31, 2024 | |
Discontinued Operations [Abstract] | |
DISCONTINUED OPERATIONS | 20. DISCONTINUED OPERATIONS On June 16, 2023, QR (HK) Limited was dissolved and deregistered. On December 5, 2023, FTFT PARAGUAY S.A. was dissolved. On March 7, 2024, Chain Cloud Mall Network and Technology (Tianjin) Co., Limited was dissolved and deregistered. Loss from discontinued operations for the three months ended March 31, 2024 and 2023 was as follows: December 31, March 31, 2024 2023 REVENUES $ - $ 29,515 COST OF SALES - 23,494 GROSS PROFIT - 6,021 OPERATING EXPENSES: General and administrative - 102,572 Research and Development expenses - 2,724 Selling expenses - 5,277 Total - 110,573 OTHER INCOME (EXPENSE) Interest income - 4 Interest expense - (2,842 ) Other expense - (938 ) Total - (3,776 ) Loss from discontinued operations before income tax - (108,328 ) Income tax provision - - Loss from discontinued operation before noncontrolling interest $ - - Gain on disposal of discontinued operations 645,437 - Less: Net loss attributable to non-controlling interests - - INCOME (LOSS) FROM DISCONTINUED OPERATION $ 645,437 $ (108,328 ) The major components of assets and liabilities related to discontinued operations are summarized below: December 31, December 31, Cash and cash equivalents $ - $ - Total assets related to discontinued operations $ - $ - Total liabilities related to discontinued operations $ - $ - |
Segment Reporting
Segment Reporting | 3 Months Ended |
Mar. 31, 2024 | |
Segment Reporting [Abstract] | |
SEGMENT REPORTING | 21. 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 starting in fiscal 2021: “supply chain financing service and trading business”, “asset management service” and “others”. The Company began to provide coal and aluminum ingots 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. As of March 31, 2024: Supply Financing/ Asset Others Total Reportable segment revenue $ 441,764 $ 4,372,870 $ 308,333 $ 5,122,967 Inter-segment loss - - - - Revenue from external customers 441,764 4,372,870 308,333 5,122,967 Segment gross profit $ 44,073 $ 1,676,704 $ 230,495 $ 1,951,272 As of March 31, 2023: Supply Financing/ Asset Others Total Reportable segment revenue $ 110,798 $ 3,163,064 $ 90,588 $ 3,364,450 Inter-segment loss - - - - Revenue from external customers 110,798 3,163,064 90,588 3,364,450 Segment gross profit $ 105,854 $ 1,056,307 $ 39,455 $ 1,201,616 Loss before Income Tax: Three months Ended, 2024 2023 Supply chain financing/trading 208,580 219,179 Asset management service 1,617,278 782,177 Others 1,276,117 (7,467 ) Corporate and Unallocated 2,818,363 2,321,202 Total operating expenses and other expense 5,920,338 3,315,091 Loss before Income Tax (3,969,066 ) (2,113,475 ) Segment assets: March 31, December 31, Supply chain financing/trading 12,365,266 12,437,136 Asset management service 4,367,036 3,640,811 Others 20,084,577 23,855,261 Corporate and Unallocated 23,093,573 21,007,542 Total assets 59,910,452 60,940,750 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2024 | |
Commitments and Contingencies [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 22. 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 Court has also rescheduled the trial to commence on April 8, 2024. The trial began on April 8, 2024 and ended on April 11, 2024, on which date the jury returned a verdict in favor of FT Global and the Court entered a judgment awarding FT Global $8,875,265.31. On April 16, 2024, the Court issued an amended judgment, awarding FT Global $10,598,379.93, which includes $7,895,265.31 in damages, $1,723,114.62 in prejudgment interest, and $980,000.00 in attorney’s fees. The Company filed a post-trial motion challenging the judgment on May 9, 2024 and will continue to vigorously defend the action against FT Global, including by appealing the judgment to the United States Court of Appeals for the Eleventh Circuit if necessary. |
Risks and Uncertainties
Risks and Uncertainties | 3 Months Ended |
Mar. 31, 2024 | |
Risks and Uncertainties [Abstract] | |
RISKS AND UNCERTAINTIES | 23. 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. Since 2021, CCM generated minimal revenue and business for the Company. The Company started a process to close it down in November 2023 and completed deregistration and dissolution of the VIE with local authority on March 7, 2024. While the potential economic impact brought by new variants of COVID-19 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. 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. 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 three months ended March 31, 2024, one customer accounted for 78.25% of the Company’s total revenues. For three months ended March 31, 2023, one customer accounted for 85.53% of the Company’s total revenues. Vendor concentration risk For three months ended March 31, 2024, three vendors accounted for 20.94%, 19.02% and 13.59% of the Company’s total purchases. For three months ended March 31, 2023, four vendors accounted for 35.48%, 16.37%, 12.28% and 11.28% of the Company’s total purchases. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2024 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | 24. SUBSEQUENT EVENTS The Company has evaluated subsequent events through the date of the issuance of the condensed consolidated financial statements and no subsequent event is identified. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Pay vs Performance Disclosure | ||
Net Income (Loss) | $ (3,327,208) | $ (2,176,464) |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Mar. 31, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 3 Months Ended |
Mar. 31, 2024 | |
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 March 31, 2024 and the results of operations and cash flows for the periods ended March 31, 2024 and 2023. 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 three months ended March 31, 2024 are not necessarily indicative of the results to be expected for any subsequent periods or for the entire year ending December 31, 2024. The balance sheet at December 31, 2023 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, 2023 as included in our Annual Report on Form 10-K. |
Discontinued Operations | Discontinued Operations On June 16, 2023, QR (HK) Limited was dissolved and deregistered. On December 5, 2023, FTFT PARAGUAY S.A. was dissolved. On March 7, 2024, Chain Cloud Mall Network and Technology (Tianjin) Co., 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 supply chain financing and trading and asset management services, 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 $3.97 million, and it had negative operating cash flows amounted $8.15 million as of March 31, 2024. 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 (Loss) 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. As of March 31, 2024: Income Share Pre-share Loss from continued operations attributable to Future Fintech Group, Inc. $ (3,972,645 ) 19,867,249 $ (0.20 ) Income from discontinued operations attributable to Future Fintech Group, Inc. 645,437 19,867,249 0.03 Basic EPS: Loss to common stockholders from continuing operations (3,972,645 ) 19,867,249 (0.20 ) Income available to common stockholders from discontinued operations $ 645,437 19,867,249 $ 0.03 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 from continued operations attributable to Future Fintech Group, Inc. (3,972,645 ) 19,909,357 (0.20 ) Diluted earnings per share is calculated by taking net loss, divided by the diluted weighted average common shares outstanding from discontinued operations 645,437 19,909,357 0.03 As of March 31, 2023: Income Share Pre-share Loss from continued operations attributable to Future Fintech Group, Inc. $ (2,068,136 ) 14,645,653 $ (0.14 ) Income from discontinued operations attributable to Future Fintech Group, Inc. (108,328 ) 14,645,653 (0.01 ) Basic EPS: Loss to common stockholders from continuing operations (2,068,136 ) 14,645,653 (0.14 ) Loss available to common stockholders from discontinued operations $ (108,328 ) 14,645,653 $ (0.01 ) Dilutive EPS: Warrants - 210,526 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 continued operations attributable to Future Fintech Group, Inc. (2,068,136 ) 14,856,179 (0.14 ) Diluted loss per share is calculated by taking net loss, divided by the diluted weighted average common shares outstanding from discontinued operations (108,328 ) 14,856,179 (0.01 ) |
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 HKD500,000 000 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 March 31, 2024. Bad debt expense was $794,355 and $16,826 during the three months ended March 31, 2024 and 2023, respectively. Accounts receivables of $1.79 million and $0.97 million have been outstanding for over 90 days as of March 31, 2024 and December 31, 2023, respectively. |
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 $0.40 million and nil Sales agent services for 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 amount billed to customers. 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 from sales agent service fees of coals, aluminum ingots, sand and steel when no control obtained throughout the transactions. Revenue was $0.04 million and $0.11 million during the three months ended March 31, 2024 and 2023, respectively. 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 its 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 year, 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 7.10:1 and 7.08:1 at the balance sheet dates of March 31, 2024 and December 31, 2023, 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 7.10:1 and 6.67:1 for three months ended March 31, 2024 and 2023, respectively. The exchange rate we used to convert HKD to USD was 7.83:1 and 7.82:1 at the balance sheet dates of March 31, 2024 and December 31, 2023. 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 7.82:1 and 7.84:1 for three months ended March 31, 2024 and 2023, respectively. The exchange rate we used to convert GBP to USD was 0.79:1 and 0.78:1 at the balance sheet dates of March 31, 2024 and December 31, 2023. 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 0.79:1 and 0.82:1 for three months ended March 31, 2024 and 2023, respectively. The exchange rate we used to convert AED to USD was 3.66:1 and 3.66:1 at the balance sheet dates of March 31, 2024 and December 31, 2023. 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 3.67:1 and 3.67:1 for three months ended March 31 2024 and 2023, respectively. The exchange rate we used to convert PYG to USD was 7393.74:1 and 7298.63:1 at the balance sheet dates of March 31, 2024 and December 31, 2023. 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 7290.28:1 and 7275.55:1 for three months ended March 31 2024 and 2023, respectively. 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. In addition, the discounted cash flow model requires the Company to select an appropriate weighted average cost of capital based on current market conditions as of March 31, 2024 and December 31, 2023. A high degree of auditor judgment and an increased extent of effort were required when performing audit procedures to evaluate the reasonableness of management’s estimates and assumptions related to the forecasts. Based upon the assessment, the Company has concluded that goodwill was nil |
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 March 31, 2024 and December 31, 2023, the short-term investments amounted to nil nil |
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. |
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. 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) | 3 Months Ended |
Mar. 31, 2024 | |
Summary of Significant Accounting Policies [Abstract] | |
Schedule of Numerators and Denominators Used in the Computations of Basic and Diluted EPS | The numerators and denominators used in the computations of basic and diluted EPS are presented in the following table. Income Share Pre-share Loss from continued operations attributable to Future Fintech Group, Inc. $ (3,972,645 ) 19,867,249 $ (0.20 ) Income from discontinued operations attributable to Future Fintech Group, Inc. 645,437 19,867,249 0.03 Basic EPS: Loss to common stockholders from continuing operations (3,972,645 ) 19,867,249 (0.20 ) Income available to common stockholders from discontinued operations $ 645,437 19,867,249 $ 0.03 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 from continued operations attributable to Future Fintech Group, Inc. (3,972,645 ) 19,909,357 (0.20 ) Diluted earnings per share is calculated by taking net loss, divided by the diluted weighted average common shares outstanding from discontinued operations 645,437 19,909,357 0.03 Income Share Pre-share Loss from continued operations attributable to Future Fintech Group, Inc. $ (2,068,136 ) 14,645,653 $ (0.14 ) Income from discontinued operations attributable to Future Fintech Group, Inc. (108,328 ) 14,645,653 (0.01 ) Basic EPS: Loss to common stockholders from continuing operations (2,068,136 ) 14,645,653 (0.14 ) Loss available to common stockholders from discontinued operations $ (108,328 ) 14,645,653 $ (0.01 ) Dilutive EPS: Warrants - 210,526 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 continued operations attributable to Future Fintech Group, Inc. (2,068,136 ) 14,856,179 (0.14 ) Diluted loss per share is calculated by taking net loss, divided by the diluted weighted average common shares outstanding from discontinued operations (108,328 ) 14,856,179 (0.01 ) |
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 |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Accounts Receivable [Abstract] | |
Schedule of Accounts Receivable, Net | Accounts receivable, net consist of the following: March 31, December 31, 2024 2023 Supply Chain Financing/Trading $ 1,848,841 $ 3,251,822 Asset management service $ 1,858,231 $ 1,250,613 Others $ 911,789 $ 1,203,442 Total accounts receivable, net $ 4,618,861 $ 5,705,877 |
Schedule of Concentration of Accounts Receivable Net of Specific Allowance for Doubtful Accounts | The following table sets forth our concentration of accounts receivable, net of specific allowances for doubtful accounts. March 31, December 31, 2024 2023 Debtor A 32.58 % 21.11 % Debtor B 19.93 % 15.35 % Debtor C 9.91 % 15.25 % Total accounts receivable, net 62.42 % 51.71 % |
Other Current Assets (Tables)
Other Current Assets (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Other Current Assets [Abstract] | |
Schedule of Other Current Assets | The amount of other current assets consisted of the followings: March 31, December 31, 2024 2023 Prepayments for Supply Chain Financing/Trading $ 4,016,482 $ 2,743,539 Prepaid expenses 9,823,422 29,694 Deposit 3,246,774 - Others 1,304,741 1,064,519 Total $ 18,391,419 $ 3,837,752 |
Acquisition (Tables)
Acquisition (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Acquisition [Abstract] | |
Schedule of Estimated Fair Values of Net Assets Acquired and Liabilities Assumed | The following table summarizes the allocation of estimated fair values of net assets acquired and liabilities assumed: Accounts receivable $ 1,526,360 Other current assets 171,038 Property, plant and equipment, net 1,458 Intangible assets 127,846 Right of use assets 8,875 Lease liability-current (8,875 ) Accounts payable (4,123,903 ) Accrued expenses and other payables (552,484 ) Net identifiable assets acquired $ (2,849,685 ) Add: goodwill 172,213 Total purchase price for acquisition net of $4,679,434 of cash $ (2,677,472 ) |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Leases [Abstract] | |
Schedule of Maturities of Lease Liabilities | Maturities of lease liabilities were as follows: Operating As of March 31, Lease From April 1, 2024 to March 31, 2025 $ 435,223 From April 1, 2025 to March 31, 2026 254,858 From April 1, 2026 to March 31, 2027 241,275 From April 1, 2027 to March 31, 2028 200,526 From April 1, 2028 to March 31, 2029 83,553 Total $ 1,215,435 Less: amounts representing interest $ 86,998 Present Value of future minimum lease payments 1,128,437 Less: Current obligations 382,172 Long term obligations $ 746,265 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Property and Equipment [Abstract] | |
Schedule of Property and Equipment | Property and equipment consist of the following: March 31, December 31, 2024 2023 Office equipment, fixtures and furniture $ 638,345 $ 633,936 Vehicle 728,201 730,998 Building 162,328 146,053 Subtotal 1,528,874 1,510,987 Less: accumulated depreciation and amortization (778,667 ) (716,828 ) Construction in progress 3,863,806 3,790,623 Impairment (5,584 ) (5,594 ) Total $ 4,608,429 $ 4,579,188 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets | Intangible assets consist of the following: March 31, December 31, 2024 2023 Trademarks $ 128,619 847 System and software 2,506,301 2,730,549 Subtotal 2,634,920 2,731,396 Less: accumulated depreciation and amortization (318,934 ) (311,131 ) Less: impairment (1,741,438 ) (1,831,283 ) Total $ 574,548 $ 588,982 |
Schedule of Estimated Amortization | The estimated amortization is as follows: As of March 31, Estimated From April 1, 2024 to March 31, 2025 $ 57,035 From April 1, 2025 to March 31, 2026 57,035 From April 1, 2026 to March 31, 2027 57,035 From April 1, 2027 to March 31, 2028 57,035 From April 1, 2028 to March 31, 2029 57,035 Thereafter 161,600 Total $ 446,775 |
Account Payables (Tables)
Account Payables (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Account Payables [Abstract] | |
Schedule of Account Payables | The amount of account payables were consisted of the followings: March 31, December 31, 2024 2023 Supply Chain Financing/Trading payment $ 118,274 $ 728,010 Others 2,127,013 2,592,051 Total $ 2,245,287 $ 3,320,061 |
Accrued Expenses and Other Pa_2
Accrued Expenses and Other Payables (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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: March 31, December 31, 2024 2023 Legal fee and other professionals $ 1,055,018 $ 832,263 Wages and employee reimbursement 165,550 509,288 Provision for legal case 10,598,380 8,875,265 Suppliers 841,874 731,521 Accruals 528,562 1,049,144 Total $ 13,189,384 $ 11,997,481 |
Convertible Notes Payable (Tabl
Convertible Notes Payable (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Convertible Notes Payable [Abstract] | |
Schedule of Convertible Debt | The amount of convertible notes payable consisted of the followings: March 31, December 31, 2024 2023 Beginning $ 1,100,723 $ - Addition - 1,100,723 Interest expenses 21,940 - Payment - - Conversion - - Balance $ 1,122,663 $ 1,100,723 |
Related Party Transaction (Tabl
Related Party Transaction (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Related Party Transaction [Abstract] | |
Schedule of Due to Related Parties | As of March 31, 2024, the amounts due to the related parties were consisted of the followings: Name Amount Relationship Note Chan Siu Kei 431,757 NTAM’s Director Other payables, interest free and payment on demand. JKNDC Ltd 114,996 A company owned by the minority shareholder of NTAM Other payables, interest free and payment on demand. Total $ 546,753 Name Amount Relationship Note Chao Li $ 73,893 Corporate legal representative Other payables, interest free and payment on demand. Ming Yi 29,513 Chief Financial Officer of the Company Accrued expenses, interest free and payment on demand. Xiaochen Zhao 124 Corporate legal representative Accrued expenses, interest free and payment on demand. Chan Siu Kei 401,516 NTAM’s Director Other payables, interest free and payment on demand. Total $ 505,046 |
Schedule of Due from Related Parties | As of March 31, 2024, the amounts due from the related parties were consisted of the followings: Name Amount Relationship Note Xiaochen Zhao 929 Corporate legal representative Prepaid expenses, interest free and payment on demand. Hu Li 20,000 Corporate Secretary Prepaid expenses, interest free and payment on demand. Chao Li 2,115 Corporate legal representative Prepaid expenses, interest free and payment on demand. Ming Yi 63,788 Chief Financial Officer of the Company Prepaid expenses, interest free and payment on demand. Total $ 86,832 Name Amount Relationship Note Kai Xu $ 12,151 Deputy General Manager of a subsidiary of the Company Loan receivables*, interest free and payment on demand. Total $ 12,151 * The related party transactions have been approved by the Company’s Audit Committee. |
Schedule of Due from Related Parties | During three months ended March 31, 2024, the Company had the following transactions with related parties: Name Amount Relationship Note JKNDC Limited $ 1,918 A company owned by the minority shareholder of NTAM Other expenses JKNDC Limited 135,640 A company owned by the minority shareholder of NTAM Cost of revenue- Asset management service Nice Talent Partner Limited 115,087 A company owned by the minority shareholder of NTAM Consultancy fee Name Amount Relationship Note JKNDC Limited $ 1,914 A company owned by the minority shareholder of NTAM Other expenses JKNDC Limited 361,958 A company owned by the minority shareholder of NTAM Cost of revenue- Asset management service Alpha Yield Limited 178,913 A director of the Company is a shareholder of this company Consultancy fee Nice Talent Partner Limited 76,542 A company owned by the minority shareholder of NTAM Consultancy fee |
Income Tax (Tables)
Income Tax (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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: March 31, March 31, 2023 Loss before taxation $ (3,969,066 ) $ (2,113,475 ) PRC statutory tax rate 25 % 25 % Computed expected benefits (992,267 ) (528,369 ) Others, primarily the differences in tax rates 263,975 50,866 Deferred tax assets losses not recognized 728,292 503,177 Total $ - $ 25,674 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Discontinued Operations [Abstract] | |
Schedule of Loss from Discontinued Operations | Loss from discontinued operations for the three months ended March 31, 2024 and 2023 was as follows: December 31, March 31, 2024 2023 REVENUES $ - $ 29,515 COST OF SALES - 23,494 GROSS PROFIT - 6,021 OPERATING EXPENSES: General and administrative - 102,572 Research and Development expenses - 2,724 Selling expenses - 5,277 Total - 110,573 OTHER INCOME (EXPENSE) Interest income - 4 Interest expense - (2,842 ) Other expense - (938 ) Total - (3,776 ) Loss from discontinued operations before income tax - (108,328 ) Income tax provision - - Loss from discontinued operation before noncontrolling interest $ - - Gain on disposal of discontinued operations 645,437 - Less: Net loss attributable to non-controlling interests - - INCOME (LOSS) FROM DISCONTINUED OPERATION $ 645,437 $ (108,328 ) |
Schedule of Loss from Discontinued Operations | The major components of assets and liabilities related to discontinued operations are summarized below: December 31, December 31, Cash and cash equivalents $ - $ - Total assets related to discontinued operations $ - $ - Total liabilities related to discontinued operations $ - $ - |
Segment Reporting (Tables)
Segment Reporting (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Segment Reporting [Abstract] | |
Schedule of Segment Gross Profit Reportable Segment | As of March 31, 2024: Supply Financing/ Asset Others Total Reportable segment revenue $ 441,764 $ 4,372,870 $ 308,333 $ 5,122,967 Inter-segment loss - - - - Revenue from external customers 441,764 4,372,870 308,333 5,122,967 Segment gross profit $ 44,073 $ 1,676,704 $ 230,495 $ 1,951,272 Supply Financing/ Asset Others Total Reportable segment revenue $ 110,798 $ 3,163,064 $ 90,588 $ 3,364,450 Inter-segment loss - - - - Revenue from external customers 110,798 3,163,064 90,588 3,364,450 Segment gross profit $ 105,854 $ 1,056,307 $ 39,455 $ 1,201,616 |
Schedule of Segment Assets | Loss before Income Tax: Three months Ended, 2024 2023 Supply chain financing/trading 208,580 219,179 Asset management service 1,617,278 782,177 Others 1,276,117 (7,467 ) Corporate and Unallocated 2,818,363 2,321,202 Total operating expenses and other expense 5,920,338 3,315,091 Loss before Income Tax (3,969,066 ) (2,113,475 ) March 31, December 31, Supply chain financing/trading 12,365,266 12,437,136 Asset management service 4,367,036 3,640,811 Others 20,084,577 23,855,261 Corporate and Unallocated 23,093,573 21,007,542 Total assets 59,910,452 60,940,750 |
Corporate Information (Details)
Corporate Information (Details) | Oct. 30, 2023 HKD ($) | Jan. 26, 2023 $ / shares shares | Mar. 31, 2024 $ / shares shares | Dec. 31, 2023 $ / shares shares |
Entity Information [Line Items] | ||||
Common stock, shares authorized | 60,000,000 | 60,000,000 | ||
Common stock par value (in Dollars per share) | $ / shares | $ 0.001 | $ 0.001 | ||
Preferred shares as authorized but not issued | 10,000,000 | |||
Alpha International Securities (HONG KONG) [Member] | ||||
Entity Information [Line Items] | ||||
Incorporated amount (in Dollars) | $ | $ 14,010,421 | |||
Maximum [Member] | ||||
Entity Information [Line Items] | ||||
Common stock, shares authorized | 300,000,000 | |||
Minimum [Member] | ||||
Entity Information [Line Items] | ||||
Common stock, shares authorized | 60,000,000 | |||
Board of Director [Member] | ||||
Entity Information [Line Items] | ||||
Reverse stock split authorized | 607.10025 | |||
Common Stock [Member] | ||||
Entity Information [Line Items] | ||||
Common stock par value (in Dollars per share) | $ / shares | $ 0.001 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) | 3 Months Ended | ||||||
Mar. 05, 2024 USD ($) | Mar. 31, 2024 USD ($) | Mar. 31, 2023 USD ($) | Mar. 31, 2024 HKD ($) | Mar. 31, 2024 CNY (¥) | Mar. 31, 2024 GBP (£) | Dec. 31, 2023 USD ($) | |
Summary of Significant Accounting Policies [Line Items] | |||||||
Operating losses (in Dollars) | $ (3,969,066) | $ (2,139,149) | |||||
Operating activities (in Dollars) | (8,154,503) | (10,273,671) | |||||
Insured by government | $ 500,000 | ¥ 500,000 | £ 18,000 | ||||
Federal deposit insurance corporation (in Dollars) | 250,000 | ||||||
Bad debt expense (in Dollars) | 794,355 | 16,826 | |||||
Accounts receivables (in Dollars) | 1,790,000 | $ 970,000 | |||||
Revenue (in Dollars) | 40,000 | 110,000 | |||||
Short-term investments (in Dollars) | $ 959,028 | ||||||
Investment loss (in Dollars) | $ 10,000 | (12,058) | |||||
Unrealized holding gains on available-for-sale securities (in Dollars) | $ 180,851 | ||||||
Minimum [Member] | |||||||
Summary of Significant Accounting Policies [Line Items] | |||||||
Property and equipment ranges | 3% | 3% | 3% | 3% | |||
Maximum [Member] | |||||||
Summary of Significant Accounting Policies [Line Items] | |||||||
Property and equipment ranges | 5% | 5% | 5% | 5% | |||
Intangible assets useful life | 10 years | 10 years | 10 years | 10 years | |||
RMB [Member] | |||||||
Summary of Significant Accounting Policies [Line Items] | |||||||
Exchange rate | 7.1 | 6.67 | 7.1 | 7.1 | 7.1 | 7.08 | |
GBP [Member] | Minimum [Member] | |||||||
Summary of Significant Accounting Policies [Line Items] | |||||||
Exchange rate | 0.79 | 0.79 | 0.79 | 0.79 | |||
GBP [Member] | Maximum [Member] | |||||||
Summary of Significant Accounting Policies [Line Items] | |||||||
Exchange rate | 0.82 | ||||||
GBP [Member] | |||||||
Summary of Significant Accounting Policies [Line Items] | |||||||
Average exchange rate | 3.67 | ||||||
PYG [Member] | |||||||
Summary of Significant Accounting Policies [Line Items] | |||||||
Exchange rate | 7,290.28 | 7,275.55 | 7,290.28 | 7,290.28 | 7,290.28 | ||
PYG [Member] | Minimum [Member] | |||||||
Summary of Significant Accounting Policies [Line Items] | |||||||
Exchange rate | 7,393.74 | 7,393.74 | 7,393.74 | 7,393.74 | |||
PYG [Member] | Maximum [Member] | |||||||
Summary of Significant Accounting Policies [Line Items] | |||||||
Exchange rate | 7,298.63 | ||||||
Goodwill [Member] | |||||||
Summary of Significant Accounting Policies [Line Items] | |||||||
Goodwill (in Dollars) | |||||||
Foreign Currency and Other Comprehensive Income (Loss) [Member] | RMB [Member] | |||||||
Summary of Significant Accounting Policies [Line Items] | |||||||
Exchange rate | 7.83 | 7.83 | 7.83 | 7.83 | 7.82 | ||
Foreign Currency and Other Comprehensive Income (Loss) [Member] | GBP [Member] | |||||||
Summary of Significant Accounting Policies [Line Items] | |||||||
Exchange rate | 3.66 | ||||||
Average exchange rate | 3.67 | 3.67 | 3.67 | 3.67 | |||
Foreign Currency and Other Comprehensive Income (Loss) [Member] | GBP [Member] | Minimum [Member] | |||||||
Summary of Significant Accounting Policies [Line Items] | |||||||
Exchange rate | 3.66 | 3.66 | 3.66 | 3.66 | |||
VIE [Member] | RMB [Member] | Minimum [Member] | |||||||
Summary of Significant Accounting Policies [Line Items] | |||||||
Exchange rate | 7.82 | 7.82 | 7.82 | 7.82 | |||
VIE [Member] | RMB [Member] | Maximum [Member] | |||||||
Summary of Significant Accounting Policies [Line Items] | |||||||
Exchange rate | 7.84 | ||||||
VIE [Member] | GBP [Member] | |||||||
Summary of Significant Accounting Policies [Line Items] | |||||||
Exchange rate | 0.79 | 0.79 | 0.79 | 0.79 | 0.78 | ||
Sales Agent Services of Coals, Aluminum Ingots, Sand and Steel [Member] | |||||||
Summary of Significant Accounting Policies [Line Items] | |||||||
Revenue (in Dollars) | $ 400,000 | ||||||
Exchange rate | 7.1 | 7.1 | 7.1 | 7.1 | |||
Short-Term Investments [Member] | |||||||
Summary of Significant Accounting Policies [Line Items] | |||||||
Short-term investments (in Dollars) | $ 0.95 | $ 960,000 | |||||
Unrealized holding gains on available-for-sale securities (in Dollars) | $ 180,000 |
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 | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Schedule of Numerators and Denominators Used in the Computations of Basic And Diluted Eps [Abstract] | ||
Loss from continued operations, Income | $ (3,972,645) | $ (2,068,136) |
Loss from continued operations, Share | 19,867,249 | 14,645,653 |
Loss from continued operations, Pre-share amount | $ (0.2) | $ (0.14) |
Income from discontinuing operations, Income | $ 645,437 | $ (108,328) |
Income from discontinuing operations, Share | 19,867,249 | 14,645,653 |
Income from discontinuing operations, Pre-share amount | $ 0.03 | $ (0.01) |
Basic EPS: | ||
Loss to common stockholders from continuing operations, Income | $ (3,972,645) | $ (2,068,136) |
Loss to common stockholders from continuing operations, Share | 19,867,249 | 14,645,653 |
Loss to common stockholders from continuing operations, Pre-share amount | $ (0.2) | $ (0.14) |
Income (loss) available to common stockholders from discontinuing operations, Income | $ 645,437 | $ (108,328) |
Income (loss) available to common stockholders from discontinuing operations, Share | 19,867,249 | 14,645,653 |
Income (loss) available available to common stockholders from discontinuing operations, Pre-share amount | $ 0.03 | $ (0.01) |
Warrants, Income | ||
Warrants, Share | 42,108 | 210,526 |
Warrants, Pre-share amount | ||
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 continued operations attributable to Future Fintech Group, Inc., Income | $ (3,972,645) | $ (2,068,136) |
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 continued operations attributable to Future Fintech Group, Inc., Share | 19,909,357 | 14,856,179 |
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 continued operations attributable to Future Fintech Group, Inc., Pre-share amount | $ (0.2) | $ (0.14) |
Diluted earnings (loss) per share is calculated by taking net loss, divided by the diluted weighted average common shares outstanding from discontinued operations , Income | $ 645,437 | $ (108,328) |
Diluted earnings (loss) per share is calculated by taking net loss, divided by the diluted weighted average common shares outstanding from discontinued operations, Share | 19,909,357 | 14,856,179 |
Diluted earnings (loss) per share is calculated by taking net loss, divided by the diluted weighted average common shares outstanding from discontinued operations, Pre-share amount | $ 0.03 | $ (0.01) |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Details) - Schedule of Property, Plant and Equipment are Depreciated Estimated Useful Lives | Mar. 31, 2024 |
Building [Member] | |
Public Utility, Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 30 years |
Motor vehicles [Member] | |
Public Utility, Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 5 years |
Minimum [Member] | Machinery and equipment [Member] | |
Public Utility, Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 5 years |
Minimum [Member] | Furniture and office equipment [Member] | |
Public Utility, Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 3 years |
Maximum [Member] | Machinery and equipment [Member] | |
Public Utility, Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 10 years |
Maximum [Member] | Furniture and office equipment [Member] | |
Public Utility, Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 5 years |
Accounts Receivable (Details) -
Accounts Receivable (Details) - Schedule of Accounts Receivable, Net - USD ($) | Mar. 31, 2024 | Dec. 31, 2023 |
Schedule of Accounts Receivable, Net [Line Items] | ||
Total accounts receivable, net | $ 4,618,861 | $ 5,705,877 |
Supply Chain Financing/Trading [Member] | ||
Schedule of Accounts Receivable, Net [Line Items] | ||
Total accounts receivable, net | 1,848,841 | 3,251,822 |
Asset management service [Member] | ||
Schedule of Accounts Receivable, Net [Line Items] | ||
Total accounts receivable, net | 1,858,231 | 1,250,613 |
Others [Member] | ||
Schedule of Accounts Receivable, Net [Line Items] | ||
Total accounts receivable, net | $ 911,789 | $ 1,203,442 |
Accounts Receivable (Details)_2
Accounts Receivable (Details) - Schedule of Concentration of Accounts Receivable Net of Specific Allowance for Doubtful Accounts - Debtor Concentration Risk [Member] - Accounts Receivable [Member] | 3 Months Ended | 12 Months Ended |
Mar. 31, 2024 | Dec. 31, 2023 | |
Debtor A [Member] | ||
Concentration Risk [Line Items] | ||
Total accounts receivable, net | 32.58% | 21.11% |
Debtor B [Member] | ||
Concentration Risk [Line Items] | ||
Total accounts receivable, net | 19.93% | 15.35% |
Debtor C [Member] | ||
Concentration Risk [Line Items] | ||
Total accounts receivable, net | 9.91% | 15.25% |
Debtor [Member] | ||
Concentration Risk [Line Items] | ||
Total accounts receivable, net | 62.42% | 51.71% |
Note Receivables (Details)
Note Receivables (Details) ¥ in Thousands | Mar. 31, 2024 USD ($) | Mar. 31, 2024 CNY (¥) | Dec. 31, 2023 USD ($) |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Note receivable | $ 650,000 | ¥ 4,600 | |
Third Party [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Note receivable | $ 650,000 |
Other Receivables (Details)
Other Receivables (Details) - USD ($) $ in Thousands | 3 Months Ended | |||||
Mar. 31, 2024 | Dec. 31, 2023 | Dec. 06, 2023 | Feb. 03, 2023 | Jan. 31, 2023 | Apr. 22, 2022 | |
Other receivables [Line Items] | ||||||
Other receivables | $ 100 | $ 10,050 | ||||
Deposit | $ 2,500 | $ 2,400 | ||||
Related Party [Member] | ||||||
Other receivables [Line Items] | ||||||
Deposit paid and prepayments | $ 1,220 | |||||
Hong Kong [Member] | ||||||
Other receivables [Line Items] | ||||||
Deposit | 2,000 | |||||
Electricity Sales and Purchase Agreement [Member] | ||||||
Other receivables [Line Items] | ||||||
Deposit | $ 1,860 | $ 1,860 | ||||
Resale of Electricity [Member] | ||||||
Other receivables [Line Items] | ||||||
Deposit | $ 70 | |||||
Mobile Software Application Development Agreement [Member] | ||||||
Other receivables [Line Items] | ||||||
Deposit | 4,000 | |||||
Augmented Reality Group Development and Service Agreement [Member] | ||||||
Other receivables [Line Items] | ||||||
Deposit | $ 5,000 |
Loan Receivables (Details)
Loan Receivables (Details) $ in Thousands, ¥ in Millions | 3 Months Ended | |||||||||
May 13, 2024 USD ($) | Apr. 17, 2023 USD ($) | Apr. 17, 2023 CNY (¥) | Mar. 31, 2024 USD ($) | Dec. 31, 2023 USD ($) | Dec. 08, 2023 USD ($) | Dec. 08, 2023 CNY (¥) | Jul. 14, 2022 USD ($) | Jul. 14, 2022 CNY (¥) | Mar. 10, 2022 USD ($) | |
Loan Receivables [Line Items] | ||||||||||
Loan receivables | $ 14,880 | |||||||||
Annual interest rate | 5% | 5% | ||||||||
Loan receivables term description | July 15, 2022 to July 14, 2024 | |||||||||
Received repayment amount | ¥ | ¥ 35 | |||||||||
Repayment of loans | ¥ | 15 | |||||||||
FTFT HK [Member] | ||||||||||
Loan Receivables [Line Items] | ||||||||||
Loan receivables | $ 14,900 | $ 5,000 | ||||||||
Annual interest rate | 10% | |||||||||
Loan receivables term description | March 10, 2022 to September 9, 2024 | |||||||||
Received repayment amount | $ 2,160 | |||||||||
FUCE Future Supply Chain (Xi’an) Co., Ltd. [Member] | ||||||||||
Loan Receivables [Line Items] | ||||||||||
Received repayment amount | $ 2,160 | |||||||||
Future Private Equity Fund Management (Hainan) Co., Limited One [Member] | ||||||||||
Loan Receivables [Line Items] | ||||||||||
Loan receivables | $ 4,940 | ¥ 35 | $ 7,050 | ¥ 50 | ||||||
Annual interest rate | 5% | 5% | 8% | 8% | ||||||
Loan receivables term description | July 15, 2022 to July 14, 2024 | |||||||||
Received repayment amount | 4,930 | 35 | ||||||||
Repayment of loans | 2,120 | |||||||||
Future Private Equity Fund Management (Hainan) Co., Limited [Member] | ||||||||||
Loan Receivables [Line Items] | ||||||||||
Loan receivables | $ 7,280 | ¥ 50 | ||||||||
Annual interest rate | 5% | 5% | 8% | 8% | ||||||
Received repayment amount | 5,090 | |||||||||
Repayment of loans | $ 2,110 | ¥ 15 | ||||||||
Loan Agreement [Member] | ||||||||||
Loan Receivables [Line Items] | ||||||||||
Loan receivables | $ 4,930 | ¥ 35 | ||||||||
Loan receivables term description | December 8, 2023 to December 8, 2024 | |||||||||
Future FinTech (Hong Kong) [Member] | ||||||||||
Loan Receivables [Line Items] | ||||||||||
Loan receivables | $ 5,000 | |||||||||
Annual interest rate | 5% | 5% | ||||||||
Loan receivables term description | December 8, 2022 to December 8, 2024 | |||||||||
FTFT HK One [Member] | ||||||||||
Loan Receivables [Line Items] | ||||||||||
Loan receivables | $ 5,000 | |||||||||
Annual interest rate | 10% | |||||||||
Future Fin Tech (Hong Kong) Limited [Member] | Future Private Equity Fund Management (Hainan) Co., Limited One [Member] | ||||||||||
Loan Receivables [Line Items] | ||||||||||
Loan receivables term description | December 8, 2023 to December 8, 2024 | |||||||||
Future Fin Tech (Hong Kong) Limited [Member] | Loan Agreement [Member] | ||||||||||
Loan Receivables [Line Items] | ||||||||||
Loan receivables | $ 5,000 |
Short - Term Investments (Detai
Short - Term Investments (Details) | 3 Months Ended | 12 Months Ended | ||||
Mar. 05, 2024 USD ($) | Mar. 31, 2024 USD ($) | Mar. 31, 2023 USD ($) | Dec. 31, 2023 USD ($) | Sep. 06, 2021 USD ($) | Sep. 06, 2021 CNY (¥) | |
Short - Term Investments (Details) [Line Items] | ||||||
Short term investments | $ 959,028 | |||||
Investment loss | $ 10,000 | $ (12,058) | ||||
Short-Term Investments [Member] | ||||||
Short - Term Investments (Details) [Line Items] | ||||||
Short term investments | 950,000 | |||||
Investment loss | $ 10,000 | |||||
Shanghai Yuli Enterprise Management [Member] | ||||||
Short - Term Investments (Details) [Line Items] | ||||||
Short term investments | 980,000 | |||||
Shanghai Yuli Enterprise Management Consulting Firm [Member] | ||||||
Short - Term Investments (Details) [Line Items] | ||||||
Equity fund invests | $ 1,870,000 | ¥ 13,000,000 | ||||
Investments [Member] | ||||||
Short - Term Investments (Details) [Line Items] | ||||||
Impairment to the investment | $ 12,633 |
Other Current Assets (Details)
Other Current Assets (Details) - USD ($) | Mar. 31, 2024 | Mar. 08, 2024 | Dec. 31, 2023 | Dec. 06, 2023 | Feb. 03, 2023 |
Other Current Assets [Line Items] | |||||
Prepaid expenses | $ 9,820,000 | ||||
Cash deposit third party amount | 3,246,774 | $ 2,400,000 | |||
Cash deposit remaining amount | $ 2,580,000 | ||||
Other receivables | 100,000 | $ 10,050,000 | |||
Prepayments to Third Party [Member] | |||||
Other Current Assets [Line Items] | |||||
Other receivables | $ 340,000 | ||||
HONG KONG | |||||
Other Current Assets [Line Items] | |||||
Cash deposit third party amount | $ 4,000,000 | ||||
Initial cash deposit | 2,000,000 | ||||
HONG KONG | Augmented Reality Group Development and Service Agreement [Member] | |||||
Other Current Assets [Line Items] | |||||
Cash deposit third party amount | 5,080,000 | ||||
Initial cash deposit | $ 2,500,000 |
Other Current Assets (Details)
Other Current Assets (Details) - Schedule of Other Current Assets - USD ($) | Mar. 31, 2024 | Dec. 31, 2023 | Feb. 03, 2023 |
Schedule of Other Current Assets [Line Items] | |||
Prepayments for Supply Chain Financing/Trading | $ 4,016,482 | $ 2,743,539 | |
Prepaid expenses | 9,823,422 | 29,694 | |
Deposit | 3,246,774 | $ 2,400,000 | |
Others | 1,304,741 | 1,064,519 | |
Total | $ 18,391,419 | $ 3,837,752 |
Acquisition (Details)
Acquisition (Details) | 12 Months Ended | ||
Oct. 30, 2023 USD ($) | Oct. 30, 2023 HKD ($) | Dec. 31, 2023 USD ($) | |
Acquisition [Line Items] | |||
Equity interest price | $ 1,791,174 | $ 14,010,421 | |
Net gain (loss) | $ 5,080 | ||
FTFT International Securities and Futures Limited [Member] | |||
Acquisition [Line Items] | |||
Net sales | 294,437 | ||
Future information service (Shenzhen) Co., Ltd [Member] | |||
Acquisition [Line Items] | |||
Net sales | 1,390 | ||
Alpha Information Services (Shenzhen) Co., Ltd [Member] | |||
Acquisition [Line Items] | |||
Equity interest price | $ 210,788 | $ 1,649,528 | |
Alpha Information Services (Shenzhen) Co., Ltd [Member] | |||
Acquisition [Line Items] | |||
Net gain (loss) | $ 88,408 | ||
Alpha International Securities (Hong Kong) Limited [Member] | Business Combination [Member] | |||
Acquisition [Line Items] | |||
Equity interest | 100% | 100% | |
Alpha Information Services (Shenzhen) Co., Ltd [Member] | |||
Acquisition [Line Items] | |||
Equity interest | 100% | 100% |
Acquisition (Details) - Schedul
Acquisition (Details) - Schedule of Estimated Fair Values of Net Assets Acquired and Liabilities Assumed - Alpha Information Services (Shenzhen) Co., Ltd [Member] | Mar. 31, 2024 USD ($) |
Schedule of Estimated Fair Values of Net Assets Acquired and Liabilities Assumed [Line Items] | |
Accounts receivable | $ 1,526,360 |
Other current assets | 171,038 |
Property, plant and equipment, net | 1,458 |
Intangible assets | 127,846 |
Right of use assets | 8,875 |
Lease liability-current | (8,875) |
Accounts payable | (4,123,903) |
Accrued expenses and other payables | (552,484) |
Net identifiable assets acquired | (2,849,685) |
Add: goodwill | 172,213 |
Total purchase price for acquisition net of cash | $ (2,677,472) |
Acquisition (Details) - Sched_2
Acquisition (Details) - Schedule of Estimated Fair Values of Net Assets Acquired and Liabilities Assumed (Parentheticals) | 3 Months Ended |
Mar. 31, 2024 USD ($) | |
Alpha Information Services (Shenzhen) Co., Ltd [Member] | |
Schedule of Estimated Fair Values of Net Assets Acquired and Liabilities Assumed [Line Items] | |
Acquisition net of cash | $ 4,679,434 |
Leases (Details)
Leases (Details) | 3 Months Ended |
Mar. 31, 2024 USD ($) | |
Leases [Abstract] | |
Operating lease cost | $ 180,000 |
Remaining lease term | 53 months |
Weighted average remaining lease term | 3 years 6 months 21 days |
Weighted average discount rate | 4.75% |
Short term leases cost | $ 1,979 |
Leases (Details) - Schedule of
Leases (Details) - Schedule of Maturities of Lease Liabilities - USD ($) | Mar. 31, 2024 | Dec. 31, 2023 |
Schedule of Maturities of Lease Liabilities [Abstract] | ||
From April 1, 2024 to March 31, 2025 | $ 435,223 | |
From April 1, 2025 to March 31, 2026 | 254,858 | |
From April 1, 2026 to March 31, 2027 | 241,275 | |
From April 1, 2027 to March 31, 2028 | 200,526 | |
From April 1, 2028 to March 31, 2029 | 83,553 | |
Total | 1,215,435 | |
Less: amounts representing interest | 86,998 | |
Present Value of future minimum lease payments | 1,128,437 | |
Less: Current obligations | 382,172 | $ 498,736 |
Long term obligations | $ 746,265 | $ 797,344 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Property and Equipment [Line Items] | ||
Depreciation expense | $ 66,859 | $ 71,397 |
Depreciation expense cost of sales | 0 | 0 |
General and Administrative Expense [Member] | ||
Property and Equipment [Line Items] | ||
Depreciation expense | $ 66,859 | $ 71,397 |
Property and Equipment (Detai_2
Property and Equipment (Details) - Schedule of Property and Equipment - USD ($) | Mar. 31, 2024 | Dec. 31, 2023 |
Schedule of Property and Equipment [Line Items] | ||
Property and equipment, gross | $ 1,528,874 | $ 1,510,987 |
Less: accumulated depreciation and amortization | (778,667) | (716,828) |
Construction in progress | 3,863,806 | 3,790,623 |
Impairment | (5,584) | (5,594) |
Total | 4,608,429 | 4,579,188 |
Office equipment, fixtures and furniture [Member] | ||
Schedule of Property and Equipment [Line Items] | ||
Property and equipment, gross | 638,345 | 633,936 |
Vehicle [Member] | ||
Schedule of Property and Equipment [Line Items] | ||
Property and equipment, gross | 728,201 | 730,998 |
Building [Member] | ||
Schedule of Property and Equipment [Line Items] | ||
Property and equipment, gross | $ 162,328 | $ 146,053 |
Intangible Assets (Details)
Intangible Assets (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Intangible Assets [Abstract] | ||
Amortization expense | $ 14,259 | $ 14,259 |
Amortization expense | 0 | $ 0 |
Amortization amount | $ 127,773 |
Intangible Assets (Details) - S
Intangible Assets (Details) - Schedule of Intangible Assets - USD ($) | Mar. 31, 2024 | Dec. 31, 2023 |
Schedule of Intangible Assets [Line Items] | ||
Subtotal | $ 2,634,920 | $ 2,731,396 |
Less: accumulated depreciation and amortization | (318,934) | (311,131) |
Less: impairment | (1,741,438) | (1,831,283) |
Total | 574,548 | 588,982 |
Trademarks [Member] | ||
Schedule of Intangible Assets [Line Items] | ||
Subtotal | 128,619 | 847 |
System and software [Member] | ||
Schedule of Intangible Assets [Line Items] | ||
Subtotal | $ 2,506,301 | $ 2,730,549 |
Intangible Assets (Details) -_2
Intangible Assets (Details) - Schedule of Estimated Amortization | Mar. 31, 2024 USD ($) |
Schedule of Estimated Amortization [Abstract] | |
From April 1, 2024 to March 31, 2025 | $ 57,035 |
From April 1, 2025 to March 31, 2026 | 57,035 |
From April 1, 2026 to March 31, 2027 | 57,035 |
From April 1, 2027 to March 31, 2028 | 57,035 |
From April 1, 2028 to March 31, 2029 | 57,035 |
Thereafter | 161,600 |
Total | $ 446,775 |
Account Payables (Details) - Sc
Account Payables (Details) - Schedule of Account Payables - USD ($) | Mar. 31, 2024 | Dec. 31, 2023 |
Schedule of Account Payables [Abstract] | ||
Supply Chain Financing/Trading payment | $ 118,274 | $ 728,010 |
Others | 2,127,013 | 2,592,051 |
Total | $ 2,245,287 | $ 3,320,061 |
Accrued Expenses and Other Pa_3
Accrued Expenses and Other Payables (Details) - USD ($) | Apr. 16, 2024 | Apr. 11, 2024 | Apr. 11, 2024 |
Subsequent Event [Member] | |||
Accrued Expenses and Other Payables (Details) [Line Items] | |||
Judgment awarding amount | $ 8,875,265 | ||
Forecast [Member] | |||
Accrued Expenses and Other Payables (Details) [Line Items] | |||
Judgment award | $ 10,598,379.93 | $ 8,875,265.31 | |
Damages | 7,895,265.31 | ||
Prejudgment interest | 1,723,114.62 | ||
Attorney’s fees | $ 980,000 |
Accrued Expenses and Other Pa_4
Accrued Expenses and Other Payables (Details) - Schedule of Accrued Expenses and Other Payables - USD ($) | Mar. 31, 2024 | Dec. 31, 2023 |
Schedule of Accrued Expenses and Other Payables [Abstract] | ||
Legal fee and other professionals | $ 1,055,018 | $ 832,263 |
Wages and employee reimbursement | 165,550 | 509,288 |
Provision for legal case | 10,598,380 | 8,875,265 |
Suppliers | 841,874 | 731,521 |
Accruals | 528,562 | 1,049,144 |
Total | $ 13,189,384 | $ 11,997,481 |
Convertible Notes Payable (Deta
Convertible Notes Payable (Details) - Schedule of Convertible Debt - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Schedule of Convertible Debt [Abstract] | |||
Beginning | $ 1,100,723 | ||
Addition | 1,100,723 | ||
Interest expenses | 21,940 | ||
Payment | |||
Conversion | |||
Balance | $ 1,122,663 | $ 1,100,723 |
Related Party Transaction (Deta
Related Party Transaction (Details) - Schedule of Due to Related Parties - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2024 | Dec. 31, 2023 | |
Chan Siu Kei [Member] | ||
Related Party Transaction [Line Items] | ||
Amount | $ 431,757 | $ 401,516 |
Relationship | NTAM’s Director | NTAM’s Director |
Note | Other payables, interest free and payment on demand. | Other payables, interest free and payment on demand. |
JKNDC Ltd [Member] | ||
Related Party Transaction [Line Items] | ||
Amount | $ 114,996 | |
Relationship | A company owned by the minority shareholder of NTAM | |
Note | Other payables, interest free and payment on demand. | |
Related Party [Member] | ||
Related Party Transaction [Line Items] | ||
Amount | $ 546,753 | $ 505,046 |
Chao Li [Member] | ||
Related Party Transaction [Line Items] | ||
Amount | $ 73,893 | |
Relationship | Corporate legal representative | |
Note | Prepaid expenses, interest free and payment on demand. | Other payables, interest free and payment on demand. |
Ming Yi [Member] | ||
Related Party Transaction [Line Items] | ||
Amount | $ 29,513 | |
Relationship | Chief Financial Officer of the Company | |
Note | Prepaid expenses, interest free and payment on demand. | Accrued expenses, interest free and payment on demand. |
Xiaochen Zhao [Member] | ||
Related Party Transaction [Line Items] | ||
Amount | $ 124 | |
Relationship | Corporate legal representative | |
Note | Prepaid expenses, interest free and payment on demand. | Accrued expenses, interest free and payment on demand. |
Related Party Transaction (De_2
Related Party Transaction (Details) - Schedule of Due from Related Parties - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2024 | Dec. 31, 2023 | ||
Xiaochen Zhao [Member] | |||
Related Party Transaction [Line Items] | |||
Amount | $ 929 | ||
Relationship | Corporate legal representative | ||
Note | Prepaid expenses, interest free and payment on demand. | Accrued expenses, interest free and payment on demand. | |
Hu Li [Member] | |||
Related Party Transaction [Line Items] | |||
Amount | $ 20,000 | ||
Relationship | Corporate Secretary | ||
Note | Prepaid expenses, interest free and payment on demand. | ||
Chao Li [Member] | |||
Related Party Transaction [Line Items] | |||
Amount | $ 2,115 | ||
Relationship | Corporate legal representative | ||
Note | Prepaid expenses, interest free and payment on demand. | Other payables, interest free and payment on demand. | |
Ming Yi [Member] | |||
Related Party Transaction [Line Items] | |||
Amount | $ 63,788 | ||
Relationship | Chief Financial Officer of the Company | ||
Note | Prepaid expenses, interest free and payment on demand. | Accrued expenses, interest free and payment on demand. | |
Related Party [Member] | |||
Related Party Transaction [Line Items] | |||
Amount | $ 86,832 | $ 12,151 | |
Kai Xu [Member] | |||
Related Party Transaction [Line Items] | |||
Amount | [1] | $ 12,151 | |
Relationship | [1] | Deputy General Manager of a subsidiary of the Company | |
Note | [1] | Loan receivables*, interest free and payment on demand. | |
[1] The related party transactions have been approved by the Company’s Audit Committee. |
Related Party Transaction (De_3
Related Party Transaction (Details) - Schedule of Company Transactions with Related Parties - USD ($) | 3 Months Ended | 9 Months Ended |
Mar. 31, 2024 | Sep. 30, 2023 | |
JKNDC Limited [Member] | ||
Related Party Transaction [Line Items] | ||
Amount | $ 1,918 | $ 1,914 |
Relationship | A company owned by the minority shareholder of NTAM | A company owned by the minority shareholder of NTAM |
Note | Other expenses | Other expenses |
JKNDC Limited [Member] | ||
Related Party Transaction [Line Items] | ||
Amount | $ 135,640 | $ 361,958 |
Relationship | A company owned by the minority shareholder of NTAM | A company owned by the minority shareholder of NTAM |
Note | Cost of revenue- Asset management service | Cost of revenue- Asset management service |
Nice Talent Partner Limited [Member] | ||
Related Party Transaction [Line Items] | ||
Amount | $ 115,087 | $ 76,542 |
Relationship | A company owned by the minority shareholder of NTAM | A company owned by the minority shareholder of NTAM |
Note | Consultancy fee | Consultancy fee |
Alpha Yield Limited [Member] | ||
Related Party Transaction [Line Items] | ||
Amount | $ 178,913 | |
Relationship | A director of the Company is a shareholder of this company | |
Note | Consultancy fee |
Income Tax (Details)
Income Tax (Details) ¥ in Millions | 3 Months Ended | ||
Mar. 31, 2024 USD ($) | Mar. 31, 2024 CNY (¥) | Mar. 31, 2023 USD ($) | |
Income Tax [Line Items] | |||
Tax rate | 25% | 25% | |
Current income tax expenses (in Dollars) | $ | $ 25,674 | ||
Pre tax profits percentage | 10% | 10% | |
Enterprise income tax rate | 25% | 25% | |
PRC Enterprise Income Tax Law [Member] | |||
Income Tax [Line Items] | |||
Pre-tax profits | $ | $ 3,000,000 | ||
Pre tax profits percentage | 25% | 25% | |
Minimum [Member] | |||
Income Tax [Line Items] | |||
Pre-tax profits | ¥ 1 | ||
PRC Enterprise Income Tax Law [Member] | |||
Income Tax [Line Items] | |||
Pre tax profits percentage | 2.50% | 2.50% | |
PRC Enterprise Income Tax Law [Member] | Minimum [Member] | |||
Income Tax [Line Items] | |||
Pre-tax profits | ¥ 1 | ||
PRC Enterprise Income Tax Law [Member] | Maximum [Member] | |||
Income Tax [Line Items] | |||
Pre-tax profits | ¥ 3 | ||
Future Big Data [Member] | |||
Income Tax [Line Items] | |||
Tax rate | 2.50% | 2.50% | 10% |
United States of America [Member] | |||
Income Tax [Line Items] | |||
Tax rate | 21% | 21% | 21% |
Hong Kong [Member] | Maximum [Member] | |||
Income Tax [Line Items] | |||
Tax rate | 16.50% | 16.50% | |
United Kingdom [Member] | |||
Income Tax [Line Items] | |||
Tax rate | 19% | 19% | |
United Arab Emirates [Member] | |||
Income Tax [Line Items] | |||
Tax rate | |||
British Virgin Island [Member] | |||
Income Tax [Line Items] | |||
Tax rate |
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 ($) | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Income Tax [Abstract] | ||
Loss before taxation | $ (3,969,066) | $ (2,113,475) |
PRC statutory tax rate | 25% | 25% |
Computed expected benefits | $ (992,267) | $ (528,369) |
Others, primarily the differences in tax rates | 263,975 | 50,866 |
Deferred tax assets losses not recognized | 728,292 | 503,177 |
Total | $ 25,674 |
Share Based Compensation (Detai
Share Based Compensation (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | ||||||||
Dec. 23, 2023 $ / shares | Feb. 01, 2023 shares | Mar. 31, 2024 USD ($) shares | Sep. 30, 2023 USD ($) | Mar. 31, 2024 CNY (¥) shares | Dec. 31, 2023 shares | Oct. 12, 2023 $ / shares shares | Jan. 26, 2023 shares | Aug. 04, 2021 $ / shares | |
Share Based Compensation [Line Items] | |||||||||
Reverse stock split | 1-for-5 | ||||||||
Authorized shares of common stock | 60,000,000 | 60,000,000 | 60,000,000 | ||||||
Net income percentage | 10% | ||||||||
Payment dividends percentage | 50% | ||||||||
Restriction amounted | $ 24,830 | ¥ 176,144,932 | |||||||
Share price (in Dollars per share) | $ / shares | $ 5 | ||||||||
Maximum [Member] | |||||||||
Share Based Compensation [Line Items] | |||||||||
Authorized shares of common stock | 300,000,000 | ||||||||
Minimum [Member] | |||||||||
Share Based Compensation [Line Items] | |||||||||
Authorized shares of common stock | 60,000,000 | ||||||||
2020 Omnibus Equity Plan [Member] | |||||||||
Share Based Compensation [Line Items] | |||||||||
Stock price (in Dollars per share) | $ / shares | $ 1.2 | ||||||||
Expenses (in Dollars) | $ | $ 3,470 | ||||||||
2020 Omnibus Equity Plan [Member] | Board of Directors [Member] | |||||||||
Share Based Compensation [Line Items] | |||||||||
Granted shares of common stock | 2,890,000 | ||||||||
2020 Omnibus Equity Plan [Member] | Common Stock [Member] | |||||||||
Share Based Compensation [Line Items] | |||||||||
Share price (in Dollars per share) | $ / shares | $ 0.001 | ||||||||
Common Stock [Member] | Maximum [Member] | |||||||||
Share Based Compensation [Line Items] | |||||||||
Authorized shares of common stock | 300,000,000 | ||||||||
Common Stock [Member] | Minimum [Member] | |||||||||
Share Based Compensation [Line Items] | |||||||||
Authorized shares of common stock | 60,000,000 |
Common Stock (Details)
Common Stock (Details) | 3 Months Ended | |||||||||
Jan. 18, 2024 shares | Jan. 05, 2024 USD ($) $ / shares shares | Oct. 17, 2023 USD ($) shares | Oct. 17, 2023 shares | Aug. 06, 2021 HKD ($) | Aug. 04, 2021 USD ($) $ / shares shares | Dec. 29, 2020 $ / shares shares | Dec. 24, 2020 USD ($) $ / shares shares | Mar. 31, 2024 USD ($) $ / shares shares | Mar. 31, 2023 USD ($) | |
Common Stock [Line Items] | ||||||||||
Shares issued | 4,210,530 | 4,210,530 | ||||||||
Purchase price, per share (in Dollars per share) | $ / shares | $ 1.2 | $ 1.9 | ||||||||
Purchase price | $ 7,390,000 | $ 144,000,000 | $ 11,220,000 | $ 2,580,643 | ||||||
Exercise price per share (in Dollars per share) | $ / shares | $ 2.375 | |||||||||
Issued and outstanding, percentage | 90% | |||||||||
Purchase price percentage | 60% | |||||||||
Shares of common stock | 299,221 | 299,221 | ||||||||
price per share (in Dollars per share) | $ / shares | $ 5 | |||||||||
Purchase, price percentage | 40% | |||||||||
Sale of stock units | 2,150,536 | |||||||||
Common stock, par value (in Dollars per share) | $ / shares | $ 0.001 | |||||||||
Aggregate net proceeds (in Dollars) | $ | $ 2,580,644 | |||||||||
Common stock, shares issued | 2,150,536 | |||||||||
Securities Purchase Agreement [Member] | ||||||||||
Common Stock [Line Items] | ||||||||||
Purchase price | $ | $ 8,000,007 | |||||||||
Warrant [Member] | ||||||||||
Common Stock [Line Items] | ||||||||||
Shares issued | 4,210,530 | |||||||||
Exercise price per share (in Dollars per share) | $ / shares | $ 2.15 | |||||||||
Placement Agent Warrants [Member] | ||||||||||
Common Stock [Line Items] | ||||||||||
Shares issued | 210,526 | |||||||||
Common Stock [Member] | ||||||||||
Common Stock [Line Items] | ||||||||||
Shares issued | 1 | |||||||||
Shares of common stock | 2,244,156 | |||||||||
Common Stock [Member] | Securities Purchase Agreement [Member] | ||||||||||
Common Stock [Line Items] | ||||||||||
Warrant outstanding | 42,108 |
Discontinued Operations (Detail
Discontinued Operations (Details) - Schedule of Loss from Discontinued Operations - USD ($) | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Schedule of Loss from Discontinued Operations [Abstract] | ||
REVENUES | $ 29,515 | |
COST OF SALES | 23,494 | |
GROSS PROFIT | 6,021 | |
OPERATING EXPENSES: | ||
General and administrative | 102,572 | |
Research and Development expenses | 2,724 | |
Selling expenses | 5,277 | |
Total | 110,573 | |
OTHER INCOME (EXPENSE) | ||
Interest income | 4 | |
Interest expense | (2,842) | |
Other expense | (938) | |
Total | (3,776) | |
Loss from discontinued operations before income tax | (108,328) | |
Income tax provision | ||
Loss from discontinued operation before noncontrolling interest | ||
Gain on disposal of discontinued operations | 645,437 | |
Less: Net loss attributable to non-controlling interests | ||
INCOME (LOSS) FROM DISCONTINUED OPERATION | $ 645,437 | $ (108,328) |
Discontinued Operations (Deta_2
Discontinued Operations (Details) - Schedule of Assets and Liabilities Related to Discontinued Operations - USD ($) | Dec. 31, 2024 | Dec. 31, 2023 |
Discontinued Operations (Details) - Schedule of Assets and Liabilities Related to Discontinued Operations [Line Items] | ||
Cash and cash equivalents | ||
Total assets related to discontinued operations | ||
Total liabilities related to discontinued operations | ||
Forecast [Member] | ||
Discontinued Operations (Details) - Schedule of Assets and Liabilities Related to Discontinued Operations [Line Items] | ||
Cash and cash equivalents | ||
Total assets related to discontinued operations | ||
Total liabilities related to discontinued operations |
Segment Reporting (Details)
Segment Reporting (Details) | 3 Months Ended |
Mar. 31, 2024 | |
Segment Reporting [Abstract] | |
Number of reporting segments | 3 |
Segment Reporting (Details) - S
Segment Reporting (Details) - Schedule of Segment Gross Profit Reportable Segment - USD ($) | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Segment Reporting Information [Line Items] | ||
Reportable segment revenue | $ 5,122,967 | $ 3,364,450 |
Inter-segment loss | ||
Revenue from external customers | 5,122,967 | 3,364,450 |
Segment gross profit | 1,951,272 | 1,201,616 |
Supply Chain Financing/Trading [Member] | ||
Segment Reporting Information [Line Items] | ||
Reportable segment revenue | 441,764 | 110,798 |
Inter-segment loss | ||
Revenue from external customers | 441,764 | 110,798 |
Segment gross profit | 44,073 | 105,854 |
Asset Management Services [Member] | ||
Segment Reporting Information [Line Items] | ||
Reportable segment revenue | 4,372,870 | 3,163,064 |
Inter-segment loss | ||
Revenue from external customers | 4,372,870 | 3,163,064 |
Segment gross profit | 1,676,704 | 1,056,307 |
Others [Member] | ||
Segment Reporting Information [Line Items] | ||
Reportable segment revenue | 308,333 | 90,588 |
Inter-segment loss | ||
Revenue from external customers | 308,333 | 90,588 |
Segment gross profit | $ 230,495 | $ 39,455 |
Segment Reporting (Details) -_2
Segment Reporting (Details) - Schedule of Segment Assets - USD ($) | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Segment Reporting Information [Line Items] | |||
Loss before Income Tax | $ (3,969,066) | $ (2,113,475) | |
Total assets | 59,910,452 | $ 60,940,750 | |
Supply Chain Financing/Trading [Member] | |||
Segment Reporting Information [Line Items] | |||
Loss before Income Tax | 208,580 | 219,179 | |
Total assets | 12,365,266 | 12,437,136 | |
Asset Management Services [Member] | |||
Segment Reporting Information [Line Items] | |||
Loss before Income Tax | 1,617,278 | 782,177 | |
Total assets | 4,367,036 | 3,640,811 | |
Others [Member] | |||
Segment Reporting Information [Line Items] | |||
Loss before Income Tax | 1,276,117 | (7,467) | |
Total assets | 20,084,577 | 23,855,261 | |
Corporate and Unallocated [Member] | |||
Segment Reporting Information [Line Items] | |||
Loss before Income Tax | 2,818,363 | 2,321,202 | |
Total assets | 23,093,573 | $ 21,007,542 | |
Operating expenses and other expense [Member] | |||
Segment Reporting Information [Line Items] | |||
Loss before Income Tax | $ 5,920,338 | $ 3,315,091 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) | 3 Months Ended | ||
Apr. 16, 2024 | Apr. 11, 2024 | Mar. 31, 2024 | |
Loss Contingencies [Line Items] | |||
Damages and attorneys’ fees | $ 7,000,000 | ||
Forecast [Member] | |||
Loss Contingencies [Line Items] | |||
Damages and attorneys’ fees | $ 7,895,265.31 | ||
Judgment award | 10,598,379.93 | $ 8,875,265.31 | |
prejudgment interest | 1,723,114.62 | ||
Attorney’s fees | $ 980,000 |
Risks and Uncertainties (Detail
Risks and Uncertainties (Details) - Customer Concentration Risk [Member] - Revenue Benchmark [Member] | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Customers One [Member] | ||
Risks And Uncertainties [Line Items] | ||
Concentration risk percentage | 78.25% | 85.53% |
Vendor one [Member] | ||
Risks And Uncertainties [Line Items] | ||
Concentration risk percentage | 20.94% | 35.48% |
Vendor two [Member] | ||
Risks And Uncertainties [Line Items] | ||
Concentration risk percentage | 19.02% | 16.37% |
Vendor three [Member] | ||
Risks And Uncertainties [Line Items] | ||
Concentration risk percentage | 13.59% | 12.28% |
Vendor four [Member] | ||
Risks And Uncertainties [Line Items] | ||
Concentration risk percentage | 11.28% |