Document And Entity Information
Document And Entity Information | 12 Months Ended |
Dec. 31, 2023 shares | |
Document Information Line Items | |
Entity Registrant Name | Lion Group Holding Ltd. |
Document Type | 20-F |
Current Fiscal Year End Date | --12-31 |
Amendment Flag | false |
Entity Central Index Key | 0001806524 |
Entity Current Reporting Status | Yes |
Entity Voluntary Filers | No |
Entity Filer Category | Non-accelerated Filer |
Entity Well-known Seasoned Issuer | No |
Document Period End Date | Dec. 31, 2023 |
Document Fiscal Year Focus | 2023 |
Document Fiscal Period Focus | FY |
Entity Emerging Growth Company | true |
Entity Shell Company | false |
Entity Ex Transition Period | false |
ICFR Auditor Attestation Flag | false |
Document Registration Statement | false |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Entity File Number | 001-39301 |
Entity Incorporation, State or Country Code | E9 |
Entity Address, Address Line One | 3 Phillip Street |
Entity Address, Address Line Two | #15-04 Royal Group Building |
Entity Address, Country | SG |
Entity Address, City or Town | Singapore |
Entity Address, Postal Zip Code | 048693 |
Entity Interactive Data Current | Yes |
Document Financial Statement Error Correction [Flag] | false |
Document Accounting Standard | U.S. GAAP |
Auditor Name | HTL International, LLC |
Auditor Location | Houston, Texas |
Auditor Firm ID | 7000 |
Business Contact | |
Document Information Line Items | |
Entity Address, Address Line One | 3 Phillip Street |
Entity Address, Address Line Two | #15-04 Royal Group Building |
Entity Address, Country | SG |
Entity Address, City or Town | Singapore |
Entity Address, Postal Zip Code | 048693 |
Contact Personnel Name | Chunning Wang |
City Area Code | +65 |
Local Phone Number | 8877 3871 |
Contact Personnel Email Address | wilson.wang@liongrouphl.com |
Class A ordinary shares represented by American Depositary Shares (“ADSs”) | |
Document Information Line Items | |
Trading Symbol | LGHL |
Title of 12(b) Security | Class A Ordinary Shares represented by American Depositary Shares (“ADSs”) |
Security Exchange Name | NASDAQ |
Class A ordinary shares, par value US$0.0001 per share | |
Document Information Line Items | |
Title of 12(b) Security | Class A ordinary shares, par value US$0.0001 per share |
Security Exchange Name | NASDAQ |
No Trading Symbol Flag | true |
Warrants, each warrant exercisable for one Class A Ordinary Share in the form of ADSs at a price of $11.50 per share or $11.50 per ADS | |
Document Information Line Items | |
Trading Symbol | LGHLW |
Title of 12(b) Security | Warrants, each warrant exercisable for one Class A Ordinary Share in the form of ADSs at a price of $11.50 per share or $575.00 per ADS |
Security Exchange Name | NASDAQ |
Class A Ordinary Shares | |
Document Information Line Items | |
Entity Common Stock, Shares Outstanding | 179,250,754 |
Class B Ordinary Shares | |
Document Information Line Items | |
Entity Common Stock, Shares Outstanding | 23,843,096 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Current Assets | ||
Cash and cash equivalents | $ 28,953,780 | $ 11,159,610 |
Restricted cash-bank balances held on behalf of customers | 2,142,615 | 3,242,989 |
Securities owned, at fair value | 4,522,805 | 11,104,047 |
Receivables from broker-dealers and clearing organizations | 13,852,846 | 33,342,254 |
Short-term loans receivable | 7,126,021 | |
Other receivables | 60,413 | 534,437 |
Derivative assets, at fair value | 1,801,095 | |
Prepaids, deposits and other | 2,095,800 | 2,534,684 |
Total current assets | 53,429,354 | 69,044,042 |
Long term investment | 1,436,142 | |
Fixed assets, net | 19,844,396 | 13,786,344 |
Right-of-use assets | 593,678 | 1,160,563 |
Other assets | 677,158 | 1,207,293 |
Total Assets | 74,544,586 | 86,634,384 |
Current Liabilities | ||
Payables to customers | 22,548,699 | 23,829,192 |
Payables to broker-dealers and clearing organizations | 15,059,984 | 24,963,524 |
Accrued expenses and other payables | 2,198,697 | 1,923,305 |
Derivative liabilities, at fair value | 3,009,166 | |
Embedded derivative liabilities | 878,420 | 2,292,056 |
Short-term borrowings | 110,000 | 110,000 |
Lease liability - current | 537,440 | 601,531 |
Due to director | 146,671 | |
Total current liabilities | 44,342,406 | 53,866,279 |
Lease liability - noncurrent | 83,480 | 618,705 |
Convertible debentures | 1,597,404 | 4,061,735 |
Warrant liabilities | 109,687 | 675,000 |
Total Liabilities | 46,132,977 | 59,221,719 |
Commitments and Contingencies | ||
Stockholders’ Equity | ||
Preferred shares, $0.0001 par value, 2,500,000,000 shares authorized | ||
Additional paid in capital | 71,532,253 | 63,660,939 |
Accumulated deficit | (39,751,871) | (34,492,863) |
Accumulated other comprehensive losses | (268,562) | (303,213) |
Total LGHL shareholders’ equity | 31,532,129 | 28,870,723 |
Non-controlling interest | (3,120,520) | (1,458,058) |
Total shareholders’ equity | 28,411,609 | 27,412,665 |
Total Liabilities and Stockholders’ Equity | 74,544,586 | 86,634,384 |
Class A Ordinary Shares | ||
Stockholders’ Equity | ||
Ordinary shares, value | 17,925 | 4,876 |
Class B Ordinary Shares | ||
Stockholders’ Equity | ||
Ordinary shares, value | $ 2,384 | $ 984 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - $ / shares | Dec. 31, 2023 | Dec. 31, 2022 |
Preferred shares, par value (in Dollars per share) | $ 0.0001 | $ 0.0001 |
Preferred shares, shares authorized | 2,500,000,000 | 2,500,000,000 |
Class A Ordinary Shares | ||
Ordinary shares, par value (in Dollars per share) | $ 0.0001 | $ 0.0001 |
Ordinary shares, shares authorized | 40,000,000,000 | 40,000,000,000 |
Ordinary shares, shares issued | 179,250,754 | 48,761,596 |
Ordinary shares, shares outstanding | 179,250,754 | 48,761,596 |
Class B Ordinary Shares | ||
Ordinary shares, par value (in Dollars per share) | $ 0.0001 | $ 0.0001 |
Ordinary shares, shares authorized | 7,500,000,000 | 7,500,000,000 |
Ordinary shares, shares issued | 23,843,096 | 9,843,096 |
Ordinary shares, shares outstanding | 23,843,096 | 9,843,096 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Income (Loss) - USD ($) | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Revenues (losses) | ||||
Insurance brokerage commissions | $ 1,169,306 | $ 455,394 | $ 542,795 | |
Securities brokerage commissions and fees | 2,732,846 | 3,412,644 | 3,188,684 | |
Market making commissions and fees | 3,121,661 | 781,878 | 4,324,650 | |
Interest income | 2,424,676 | 3,229,716 | 1,351,318 | |
Trading gains (losses) | 10,479,504 | (11,467,969) | 13,379,146 | |
Other income | 1,163,251 | 1,118,244 | 2,387,368 | |
Gross profit | 21,091,244 | (2,470,093) | 25,173,961 | |
Expenses and others | ||||
Commissions and fees | 3,418,398 | 3,198,934 | 3,317,692 | |
Compensation and benefits | 4,099,852 | 3,620,506 | 4,069,203 | |
Occupancy | 870,254 | 826,254 | 778,881 | |
Communication and technology | 3,059,462 | 3,392,794 | 1,929,981 | |
Cost of crypto mining | 1,163,846 | |||
General and administrative | 1,432,148 | 1,228,572 | 2,016,582 | |
Professional fees | 3,407,365 | 3,716,839 | 3,836,817 | |
Research and development | 7,115 | 4,693,995 | 1,205,040 | |
Services fees | 2,352,832 | 1,956,785 | 3,574,579 | |
Interest | 2,413,102 | 2,334,598 | 1,608,100 | |
Depreciation and amortization | 1,795,011 | 2,032,386 | 916,916 | |
Marketing | 4,196,795 | 3,743,567 | 913,675 | |
Impairment of fixed assets | 1,690,028 | |||
Impairment of cryptocurrencies | 293,619 | |||
Change in fair value of warrant liabilities | (565,313) | (1,260,354) | 470,804 | |
Other operating | 430,214 | 32,406 | 144,175 | |
Total operating expenses | 26,917,235 | 31,500,929 | 25,946,291 | |
Loss before income taxes | (5,825,991) | (33,971,022) | (772,330) | |
Income tax expense | (1,058) | (3,419) | (54,367) | |
Net loss | (5,827,049) | (33,974,441) | (826,697) | |
Net loss attributable to non-controlling interests | (568,041) | (2,411,158) | (849,479) | |
Net (loss) gain attributable to LGHL | (5,259,008) | (31,563,283) | 22,782 | |
Deemed dividend on the effect of the down round features | (6,112,000) | (6,354,500) | ||
Deemed dividend on the effect of the warrant modification | (3,086,000) | |||
Dividends and deemed dividends on preferred shares | (595,208) | (1,810,204) | ||
Net loss attributable to LGHL ordinary shareholders | $ (14,457,008) | $ (32,158,491) | $ (8,141,922) | |
Loss per share - basic (in Dollars per share) | $ (5.94) | $ (34.97) | $ (13.53) | |
Class A ordinary shares | ||||
Expenses and others | ||||
Loss per share - basic (in Dollars per share) | [1] | $ (0.12) | $ (0.7) | $ (0.27) |
Weighted average ordinary shares outstanding - basic (in Shares) | [1] | 108,269,640 | 40,438,604 | 26,046,212 |
Class B ordinary shares | ||||
Expenses and others | ||||
Weighted average ordinary shares outstanding - basic (in Shares) | 13,478,813 | 5,535,888 | 4,041,875 | |
[1] On July 3, 2023, LGHL announced that it plans to change its American depositary share (“ADS”) to ordinary share (“Share”) ratio from one (1) ADS representing one (1) Share to one (1) ADS representing fifty (50) Shares. The change in the ADS ratio was effective on July 13, 2023. For LGHL’s ADS holders, the change in the ADS ratio had the same effect as a one-for-fifty reverse ADS split. The ADS ratio change has no impact on LGHL’s underlying Shares. Loss per ADS for all periods presented had been retrospectively adjusted accordingly. |
Consolidated Statements of Op_2
Consolidated Statements of Operations and Comprehensive Income (Loss) (Parentheticals) - $ / shares | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Loss per share - diluted | [1] | $ (5.94) | $ (34.97) | $ (13.53) |
Class A ordinary shares | ||||
Loss per share - diluted | [1] | $ (0.12) | $ (0.70) | $ (0.27) |
Weighted average ordinary shares outstanding - diluted | [1] | 108,269,640 | 40,438,604 | 26,046,212 |
Class B ordinary shares | ||||
Weighted average ordinary shares outstanding - diluted | [1] | 13,478,813 | 5,535,888 | 4,041,875 |
[1] On July 3, 2023, LGHL announced that it plans to change its American depositary share (“ADS”) to ordinary share (“Share”) ratio from one (1) ADS representing one (1) Share to one (1) ADS representing fifty (50) Shares. The change in the ADS ratio was effective on July 13, 2023. For LGHL’s ADS holders, the change in the ADS ratio had the same effect as a one-for-fifty reverse ADS split. The ADS ratio change has no impact on LGHL’s underlying Shares. Loss per ADS for all periods presented had been retrospectively adjusted accordingly. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | |||
Net loss | $ (5,827,049) | $ (33,974,441) | $ (826,697) |
Foreign currency translation adjustment | 217,684 | (245,681) | (40,064) |
Comprehensive loss | (5,609,365) | (34,220,122) | (866,761) |
Comprehensive loss attributable to non-controlling interests | (385,008) | (2,411,158) | (849,479) |
Comprehensive loss attributable to LGHL | $ (5,224,357) | $ (31,808,964) | $ (17,282) |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders’ Equity - USD ($) | Series A Convertible Preferred Shares | Class A Ordinary Shares | Class B Ordinary Shares | Additional Paid in Capital | Accumulated Deficit | Accumulated Other Comprehensive (Loss) Income | Non- Controlling Interest | Total |
Balance at Dec. 31, 2020 | $ 963 | $ 984 | $ 12,269,761 | $ (2,952,362) | $ (17,468) | $ 9,301,878 | ||
Balance (in Shares) at Dec. 31, 2020 | 9,627,553 | 9,843,096 | ||||||
Effect of a modification of the existing warrants as debt issuance costs (ASU 2021-04) | ||||||||
Issuance of January 2021 Call Options for service | 1,909,000 | 1,909,000 | ||||||
Conversion of Debenture into ordinary shares | $ 89 | 1,611,511 | 1,611,600 | |||||
Conversion of Debenture into ordinary shares (in Shares) | 889,667 | |||||||
December 2020 Warrants | $ 1,420 | 27,398,580 | 27,400,000 | |||||
December 2020 Warrants (in Shares) | 14,200,000 | |||||||
2020 PIPE Warrants | $ 77 | 1,541,588 | $ 1,541,665 | |||||
2020 PIPE Warrants (in Shares) | 770,833 | 770,833 | ||||||
Issuance of ordinary shares in connection with 2020 Share Incentive Plan | $ 148 | (148) | ||||||
Issuance of ordinary shares in connection with 2020 Share Incentive Plan (in Shares) | 1,486,504 | |||||||
Issuance of ordinary shares to Yun Tian | $ 36 | 777,935 | 777,971 | |||||
Issuance of ordinary shares to Yun Tian (in Shares) | 353,623 | |||||||
Exercise of January 2021 Call Options | $ 200 | 3,999,800 | 4,000,000 | |||||
Exercise of January 2021 Call Options (in Shares) | 2,000,000 | |||||||
Issuance of Series A Convertible Preferred Shares and detachable February 2021 Warrants, net of costs | $ 4,231,453 | 2,067,547 | 6,299,000 | |||||
Issuance of Series A Convertible Preferred Shares and detachable February 2021 Warrants, net of costs (in Shares) | 7,000 | |||||||
conversion feature (“BCF”) of Series A Convertible Preferred Shares | $ (1,562,905) | 1,562,905 | ||||||
Series A Convertible Preferred Shares in connection with BCF | 1,562,905 | (1,562,905) | ||||||
n Series A Convertible Preferred Shares | (195,000) | (195,000) | ||||||
Conversion of Series A Convertible Preferred Shares and accrued dividends | $ (302,247) | $ 35 | 302,212 | |||||
Conversion of Series A Convertible Preferred Shares and accrued dividends (in Shares) | (500) | 349,789 | ||||||
Convertible Preferred Shares and detachable December 2021 Warrants, net of costs | 942,448 | 942,448 | ||||||
BCF of Series B Convertible Preferred Shares | 1,613,080 | 1,613,080 | ||||||
Deemed dividend on Series B Convertible Preferred Shares in connection with BCF and accretion of discounts | (36,299) | (36,299) | ||||||
on Series B Convertible Preferred Shares | (16,000) | (16,000) | ||||||
Acquisition of noncontrolling interest | (128,804) | 88,804 | (40,000) | |||||
Net Income (loss) | 22,782 | (849,479) | (826,697) | |||||
Other comprehensive income loss | (40,064) | (40,064) | ||||||
Balance at Dec. 31, 2021 | $ 3,929,206 | $ 2,968 | $ 984 | 54,057,211 | (2,929,580) | (57,532) | (760,675) | 54,242,582 |
Balance (in Shares) at Dec. 31, 2021 | 6,500 | 29,677,969 | 9,843,096 | |||||
Effect of early adoption of ASU 2020-06 | (1,590,676) | (1,590,676) | ||||||
Series B Convertible Preferred Shares in connection with accretion of discounts | (187,353) | (187,353) | ||||||
Conversion of Series B Convertible Preferred Shares and accrued dividends | $ 516 | 3,016,284 | 3,016,800 | |||||
Conversion of Series B Convertible Preferred Shares and accrued dividends (in Shares) | 5,158,472 | |||||||
Issuance of ordinary shares to nonemployees in connection with 2020 Share Incentive Plan | $ 245 | 1,837,255 | 1,837,500 | |||||
Issuance of ordinary shares to nonemployees in connection with 2020 Share Incentive Plan (in Shares) | 2,450,000 | |||||||
Effect of a modification of the existing warrants as debt issuance costs (ASU 2021-04) | 1,330,271 | 1,330,271 | ||||||
Conversion of May 2022 Convertible Debenture and the payment of make-whole interest by shares | $ 319 | 1,074,569 | 1,074,888 | |||||
Conversion of May 2022 Convertible Debenture and the payment of make-whole interest by shares (in Shares) | 3,194,885 | |||||||
Contribution from noncontrolling shareholder | 1,713,775 | 1,713,775 | ||||||
Conversion of Series A Convertible Preferred Shares and accrued dividends | $ (3,929,206) | $ 828 | 4,123,378 | 195,000 | ||||
Conversion of Series A Convertible Preferred Shares and accrued dividends (in Shares) | (6,500) | 8,280,270 | ||||||
Net Income (loss) | (31,563,283) | (2,411,158) | (33,974,441) | |||||
Other comprehensive income loss | (245,681) | (245,681) | ||||||
Balance at Dec. 31, 2022 | $ 4,876 | $ 984 | 63,660,939 | (34,492,863) | (303,213) | (1,458,058) | 27,412,665 | |
Balance (in Shares) at Dec. 31, 2022 | 48,761,596 | 9,843,096 | ||||||
Effect of a modification of the existing warrants as debt issuance costs (ASU 2021-04) | ||||||||
Conversion of August 2022 Convertible Debenture and the payment of make-whole interest by shares | $ 3,949 | 3,678,708 | 3,682,657 | |||||
Conversion of August 2022 Convertible Debenture and the payment of make-whole interest by shares (in Shares) | 39,489,758 | |||||||
Conversion of December 2022 Convertible Debenture and the payment of make-whole interest by shares | $ 7,100 | 3,121,473 | 3,128,573 | |||||
Conversion of December 2022 Convertible Debenture and the payment of make-whole interest by shares (in Shares) | 70,999,400 | |||||||
Issuance of Warrants H in consideration for the investor to purchase September 2023 Convertible Debenture | 2,000 | 2,000 | ||||||
Issuance of Class A ordinary shares as a result of the partial exercise of Warrants E | $ 2,000 | 697,200 | 699,200 | |||||
Issuance of Class A ordinary shares as a result of the partial exercise of Warrants E (in Shares) | 20,000,000 | |||||||
Issuance of Class B ordinary shares in connection with 2023 Share Incentive Plan | $ 1,400 | 371,933 | 373,333 | |||||
Issuance of Class B ordinary shares in connection with 2023 Share Incentive Plan (in Shares) | 14,000,000 | |||||||
Net contributions from noncontrolling shareholder | (1,277,454) | (1,277,454) | ||||||
Net Income (loss) | (5,259,008) | (568,041) | (5,827,049) | |||||
Other comprehensive income loss | 34,651 | 183,033 | 217,684 | |||||
Balance at Dec. 31, 2023 | $ 17,925 | $ 2,384 | $ 71,532,253 | $ (39,751,871) | $ (268,562) | $ (3,120,520) | $ 28,411,609 | |
Balance (in Shares) at Dec. 31, 2023 | 179,250,754 | 23,843,096 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Cash Flows from Operating Activities | ||||
Net loss | $ (5,827,049) | $ (33,974,441) | $ (826,697) | |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||||
Stock based compensation expense (1) | [1] | 1,673,883 | 1,300,550 | 381,800 |
Impairment of fixed assets | 1,690,028 | |||
Change in fair value of warrant liabilities | (565,313) | (1,265,625) | 470,804 | |
Change in fair value of option liability | 1,208,071 | (554,710) | 149,740 | |
Change in fair value of embedded derivative liability | 47,944 | 5,271 | ||
Amortization of right-of-use assets | 567,132 | 662,416 | ||
Gain on sale of Lion Hangzhou | (121,781) | |||
Gain on sale of crypto currencies | (89,649) | (17,496) | ||
Impairment on cryptocurrencies | 293,619 | |||
Amortization of debt discounts | 522,319 | 658,680 | 783,994 | |
Depreciation and amortization | 1,795,011 | 2,032,386 | 1,295,470 | |
Deferred taxes | 1,128 | |||
Gain on forgiveness of debt | (104,640) | |||
(Increase) decrease in operating assets | ||||
Securities owned | 6,581,242 | 4,796,322 | (15,882,747) | |
Receivables from broker-dealers and clearing organizations | 19,489,408 | 54,596,123 | (79,849,184) | |
Derivative assets, at fair value | (1,801,041) | |||
Prepaids, deposits and other assets | (673,442) | 6,673,603 | (7,028,192) | |
Intangible assets | (438,042) | |||
Increase (decrease) in operating liabilities | ||||
Payables to customers | (1,280,493) | (12,130,733) | 30,738,655 | |
Payables to broker-dealers and clearing organizations | (9,903,540) | (28,138,296) | 49,256,080 | |
Derivative liabilities, at fair value | 1,801,095 | 404,970 | ||
Accrued expenses and other payables | 588,392 | 510,897 | (256,184) | |
Lease liabilities | (599,316) | (658,600) | ||
Net cash provided by (used in) operating activities | 13,412,873 | (3,940,552) | (20,482,499) | |
Cash Flows from Investing Activities | ||||
Purchases of fixed assets | (7,850,000) | (10,234,188) | ||
Proceeds from sale of Lion Hangzhou | 1,500,000 | |||
Investment in investment funds | (1,550,314) | |||
Acquisition of noncontrolling interest | (40,000) | |||
Short term loans receivable | (8,524,659) | (1,000,000) | ||
Proceeds from sale of crypto currencies | ||||
Collection of short term loan | 7,766,000 | 1,431,320 | 719,815 | |
Net cash provided by (used in) investing activities | 1,416,000 | (7,093,339) | (12,104,687) | |
Cash Flows from Financing Activities | ||||
Proceeds from the partial exercise of Warrants E | 699,200 | |||
Proceeds from the exercise of December 2020 warrants | 27,400,000 | |||
Proceeds from the exercise of August 2020 PIPE Warrants | 1,541,666 | |||
Proceeds from the exercise of January 2021 Call Options | 4,000,000 | |||
Proceeds from issuance Series A Convertible Preferred Shares and detachable warrants, net of issuance costs | 6,299,000 | |||
Proceeds from issuance of Series B Convertible Preferred Shares and detachable December 2021 Warrants, net of costs | 3,742,000 | |||
Proceeds from issuance of ordinary shares to Yuntian | 777,971 | |||
Proceeds from issuance of convertible debenture, net of costs | 2,365,000 | 8,095,000 | ||
Net contributions from noncontrolling shareholder | (1,277,454) | 1,713,775 | ||
Proceeds from Short-term borrowings | 110,000 | |||
Repayment of Short-term borrowings | (292,240) | |||
Repayment to director | (127,736) | |||
Net cash provided by financing activities | 1,659,010 | 9,808,775 | 43,578,397 | |
Effect of Exchange Rate Changes on Cash, Cash Equivalents, and Restricted Cash | 205,913 | (123,760) | (33,833) | |
Net Change in Cash, Cash Equivalents, and Restricted Cash | 16,693,796 | (1,348,876) | 10,957,378 | |
Cash, Cash Equivalents, and Restricted Cash - Beginning of Year | 14,402,599 | 15,751,475 | 4,794,097 | |
Cash, Cash Equivalents, and Restricted Cash - End of Year | 31,096,395 | 14,402,599 | 15,751,475 | |
Noncash Investing and Financing Activities | ||||
Transfer from other assets to intangible assets | 8,000,000 | |||
Decrease in receivable for fixed assets | 534,564 | |||
Increase in payable for fixed assets | 84,000 | |||
Value of January 2021 Call Options issued for service | 1,909,000 | |||
Issuance of ordinary shares in connection with 2020 Share Incentive Plan | 148 | |||
Conversion of crypto currencies to USDT | 229,000 | 17,496 | ||
Effect of early adoption of ASU 2020-06 | 1,590,676 | |||
Conversion of Debenture into ordinary shares | 4,471,230 | 444,888 | 1,611,600 | |
Conversion of Series A Convertible Preferred Shares and accrued dividends | 4,124,206 | 302,247 | ||
Conversion of Series B Convertible Preferred Shares and accrued dividends | 3,016,800 | |||
Accrued dividends on Series A and Series B Convertible Preferred Shares | 211,000 | |||
Deemed dividend on Series A and Series B Convertible Preferred Shares | 187,353 | 1,599,204 | ||
Embedded derivative liabilities (make-whole interest feature) | 878,420 | 2,916,785 | ||
Share issuances in exchange for a decrease in embedded derivative liability | 2,340,000 | 630,000 | ||
Issuance of Warrants H | 2,000 | |||
Effect of a modification of the existing warrants as debt issuance costs (ASU 2021-04) | 1,330,271 | |||
Lease liabilities arising from obtaining right-of-use assets | 1,878,836 | |||
Supplemental Disclosure of Cash Flow Information | ||||
Cash paid for interest | 2,027,489 | 1,613,789 | 841,847 | |
Cash paid for income taxes | $ 1,058 | $ 3,419 | $ 54,667 | |
[1]The amount includes stock-based expenses under January 2021 Call Options in the amount of $381,800 and under 2020 Share Incentive Plan & 2023 Share Incentive Plan in the amount of $1,292,083. |
Organization and Principal Acti
Organization and Principal Activities | 12 Months Ended |
Dec. 31, 2023 | |
Organization and Principal Activities [Abstract] | |
Organization and Principal Activities | Note 1 — Organization and Principal Activities Lion Group Holding Ltd. (the “Company”, “Lion” or “LGHL”) is a company with limited liability registered as an exempted company in the Cayman Islands. The Company and its subsidiaries (collectively referred to as the “Group”) provide securities, futures and derivatives brokerage services, insurance brokerage services, total return swap trading services, and market maker trading services. As a result of the consummation of a business combination (the “Closing”) with Proficient Alpha Acquisition Corp., a Nevada corporation (“PAAC”) which was accounted for as a reverse recapitalization, the Company’s ordinary shares and warrants started to be traded on the NASDAQ Capital Market under the ticker symbols LGHL and LGHLW, respectively on June 17, 2020. Each American Depositary Shares (“ADSs”) of the Company represented one Class A ordinary share upon the Closing. On July 13, 2023, the ADS ratio was changed from one (1) ADS representing one (1) Share to one (1) ADS representing fifty (50) Shares. The number of ADSs and the price per ADS prior to the ratio change event herein have been retrospectively adjusted for its effect. Principal Activities The Group generates commission revenues by enabling its customers to trade in securities, futures and derivative markets throughout the world. The Group’s trading customers consist of corporate clients, individual traders and retail investors primarily located in People’s Republic of China (“PRC”) and Southeast Asia, although its trading platform allows it to serve customers worldwide. The Group also generates commission revenues by providing insurance brokerage services to high-net-worth individuals primarily located in the PRC. In May 2019, the Group began to serve as the counterparty to its customers in derivative transactions. This predominantly occurs when a customer utilizes a contract for difference (“CFD”). CFDs allow for the exchange of the difference in value of a particular asset such as a currency pair between the time at which a contract is opened and the time at which it is closed. If the trades of one customer can be used to naturally offset the trades of another customer, the Group will act as the market maker to offer liquidity and pricing to both customers. When such an offsetting is not available, the Group may choose to use its own trades to offset the trades of its customer, and the Group may also act as a broker in arranging trades between the customer and third-party market makers. The Group officially began offering total return swap (“TRS”) trading services to customers in July 2020. The Group has entered into International Swaps and Derivatives Association (“ISDA”) master agreements and related supplementary agreements with two of the top five swap traders in China. The Group is currently offering A-shares (shares that are denominated in Renminbi and traded in the Shanghai Stock Exchange and Shenzhen Stock Exchange) and Hong Kong stock basket linked TRS, which provides international investors seeking to invest in the China stock market with higher leverage compared with buying A-share stocks directly. The Group earns income from the spread on interest rate loans provided to TRS trading customers and loans borrowed from its business partners. In addition, the Group also receives commissions and fees from customers for trades made through the TRS trading service. The Group started to enter over-the-counter (“OTC”) call option contracts with customers in April 2021. The call option gives the holder the right, but not the obligation, to buy the underlying security at a predetermined price (strike price or exercise price) within a specific timeframe, ranges from 2 weeks to 6 months. The stocks underlying the call options issued are predominantly China A-Shares, stocks that are denominated in Renminbi and traded in Shanghai and Shenzhen Stock Exchanges in PRC. The Group serves as the counterparty to its customers in OTC stock options transactions. There are cases that the Group purchases the same call options from third party option issuers for offsetting. Upon signing the contract, the customers are required to pay the call premium to the Group. The Group generates trading gains or losses from the call options. For the years ended December 31, 2023, 2022, and 2021, no trading customers accounted for more than 10% of its total revenue. For the years ended December 31, 2023, 2022 and 2021, one clearing broker accounted for 47%, 72%, and 61%, respectively, of the Group’s total commissions expense. For the years ended December 31, 2023, 2022, and 2021, the Group placed 36% (1% of total revenue in 2023), 79% (13% of total loss in 2022), and 77% (2% of total revenue in 2021), respectively, of its insurance brokerage sales with one insurance provider. The subsidiaries of the Company include a participant of the Stock Exchange of Hong Kong Limited (“SEHK”) and Hong Kong Securities Clearing Company Limited (“HKSCC”), remote trading member of Singapore Exchange Limited (“SGX”), and member of the Professional Insurance Brokers Association Limited (“PIBA”); the subsidiaries possess the licenses issued by Hong Kong Securities and Futures Commission (“HKSFC”) to carry out regulated activities including Type 1 Dealing in Securities, Type 2 Dealing in Futures Contracts, Type 4 Advising on Securities, Type 5 Advising on Futures Contracts, and Type 9 Asset Management, the full license issued by Cayman Islands Monetary Authority (“CIMA”) to carry out securities investment business including Broker Dealer and Market Maker, and the Capital Markets Service License (“CMS License”) issued by the Monetary Authority of Singapore. Details of the Company’s subsidiaries as of December 31, 2023 are as follows: Company name Date of Place of Ownership Principal Lion Financial Group Limited June 16, 2015 British Virgin Islands 100% Investment holding Lion Wealth Management Limited February 16, 2017 British Virgin Islands 100% Investment holding Lion International Securities Group Limited May 20, 2016 Hong Kong 100% Securities brokerage Lion Futures Limited May 20, 2016 Hong Kong 100% Futures brokerage Lion Investment (Hong Kong) Limited (F/K/A Lion Foreign Exchange Limited) May 20, 2016 Hong Kong 100% Dormant Lion Asset Management Limited (F/K/A Lion Capital Management Limited) (“LAML”) May 20, 2016 Hong Kong 51% Asset management BC Wealth Management Limited October 14, 2014 Hong Kong 100% Insurance brokerage Lion Wealth Limited (“LWL”) October 4, 2018 Hong Kong 100% Marketing and support service Lion Brokers Limited March 30, 2017 Cayman Islands 100% Broker dealer and market maker Lion International Financial (Singapore) Pte. LTD. July 26,2019 Singapore 100% Dormant Lion Group North America Corp. (F/K/A Proficient Alpha Acquisition Corp.) June 16, 2020 Nevada, USA 100% Dormant Lion Fintech Group Limited April 13, 2021 British Virgin Islands 100% Investment holding Royal Lion Investment Limited April 13, 2021 Cayman Islands 70% Investment holding Royal Lion Middle East DMCC April 13, 2021 Dubai 70% Dormant Lion Workshop Ltd. (F/K/A Skyline Legend Ltd.) April 26, 2021 British Virgin Islands 100% Dormant Lion NFT Limited May 7, 2021 British Virgin Islands 90% Investment and innovation in digital assets Flying Lion Limited June 17, 2021 Cayman Islands 70% Investment and innovation in digital assets Aquarius Sponsor Ltd. April 12, 2021 British Virgin Islands 51% Investment holding Aquarius II Sponsor Ltd. May 4, 2021 British Virgin Islands 51% Investment holding Aquarius I Acquisition Corp. April 15, 2021 Cayman Islands 94% Special purpose acquisition company Aquarius II Acquisition Corp. May 5, 2021 Cayman Islands 93% Special purpose acquisition company Lion Metaverse Limited October 26, 2021 British Virgin Islands 50% Technology development Lion Multi-Series Fund SPC December 3, 2021 Cayman Islands 100% Assets management Lion Silver Capital Limited February 24, 2022 British Virgin Islands 51% Assets management |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2023 | |
Significant Accounting Policies [Abstract] | |
Significant Accounting Policies | Note 2 — Significant Accounting Policies Basis of Presentation These consolidated financial statements are prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) and have been prepared in accordance with the regulations of the Securities and Exchange Commission (“SEC”). Emerging Growth Company Status The Company is an “emerging growth company,” as defined in Section 2(a) of the Securities Act of 1933, as amended, (the “Securities Act”), as modified by the Jumpstart our Business Startups Act of 2012, (the “JOBS Act”), and it may take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not emerging growth companies including, but not limited to, not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act, reduced disclosure obligations regarding executive compensation in its periodic reports and proxy statements, and exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and stockholder approval of any golden parachute payments not previously approved. Further, Section 102(b)(1) of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial accounting standards until private companies (that is, those that have not had a Securities Act registration statement declared effective or do not have a class of securities registered under the Exchange Act) are required to comply with the new or revised financial accounting standards. The JOBS Act provides that a company can elect to opt out of the extended transition period and comply with the requirements that apply to non-emerging growth companies but any such election to opt out is irrevocable. The Company has elected not to opt out of such extended transition period which means that when a standard is issued or revised and it has different application dates for public or private companies, the Company, as an emerging growth company, can adopt the new or revised standard at the time private companies adopt the new or revised standard. This may make comparison of the Company’s financial statements with another public company which is neither an emerging growth company nor an emerging growth company which has opted out of using the extended transition period difficult or impossible because of the potential differences in accounting standards used. Principles of Consolidation The consolidated financial statements include the accounts of the Company, and its subsidiaries in which it has a controlling financial interest. A subsidiary is an entity (including a structured entity), directly or indirectly, controlled by the Company. The financial statements of the subsidiaries are prepared for the same reporting period as the Company, using consistent accounting policies. All intra-group assets and liabilities, equity, income, expenses and cash flows relating to transactions between members of the Group are eliminated in consolidation. The Group consolidates the loss of the subsidiaries and subtracts the net loss that is attributable to the non-controlling interest holders in calculating the net income (loss) that is attributable to the Group. Translation of Foreign Currencies The functional currency is the U.S. dollar for the Group’s Cayman Island operations, Singapore dollars for Singapore entity, and the Hong Kong dollar for all other Group operations. The Group’s reporting currency is the U.S. dollar. Assets and liabilities denominated in foreign currencies are translated at year-end exchange rates, income statement accounts are translated at average rates of exchange for the year and equity is translated at historical exchange rates. Any translation gains or losses are recorded in other comprehensive income (loss). Gains or losses resulting from foreign currency transactions are included in net income (loss). Use of Estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities as of the date of the consolidated financial statements as well as the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. Current Expected Credit Losses On January 1, 2023, the Group adopted FASB ASC Topic 326 – “Financial Instruments – Credit Losses” (“ASC Topic 326”) which replaces the incurred loss methodology with the current expected credit loss (“CECL”) methodology. The guidance applies to financial assets measured at amortized cost, held-to-maturity debt securities and off-balance sheet credit exposures. For on-balance sheet assets, an allowance must be recognized at the origination or purchase of in-scope assets and represents the expected credit losses over the contractual life of those assets. The Group adopted ASC Topic 326 using the modified retrospective approach for all in-scope assets, which did not result in an adjustment to the opening balance in accumulated deficits. The impact to the current period is not material since the Group’s in-scope assets are primarily receivables from broker-dealers and clearing organizations, the management considers that these receivables have a low risk of default and the counterparties have a strong capacity to meet their contractual obligation. An allowance for credit losses on other financial assets, including receivables from clients (commissions receivable), other receivable and various deposits due from vendors which were included in prepaids, deposits and other and other assets, is estimated based on the aging of these financial assets. The settlement periods of commissions receivable are usually short and within one month, the credit risk arising from receivables from clients is considered low. Other receivables and the deposits with various vendors were not material to the consolidated financial statements taken as a whole and historically the Group has not recorded an allowance for credit losses on their deposits. As a result, the allowance for credit losses for other financial assets were immaterial for current period. Cash and Cash Equivalents Cash and cash equivalents consist of deposits with banks and all highly liquid investments, with maturities of three months or less, that are not segregated and deposited for regulatory purposes. The Group does not have any cash equivalents as of December 31, 2023 and 2022. The Group maintains its cash in bank deposit accounts which at times may exceed insured limits. The Group has not experienced any losses in such accounts. The Group only has one bank account with U.S. bank subject to FDIC insurance and its balance is immaterial. Management believes that the Group is not exposed to any significant credit risk on cash and cash equivalents. Restricted Cash — Bank Balances Held on Behalf of Customers The Group maintains segregated trust accounts with licensed banks or payment platforms to hold customer funds in accordance with the relevant legislation. The Group has classified customer funds as bank balances held on behalf of customers with a corresponding payable to customers in the liabilities section of the consolidated balance sheets. Securities Owned and Derivatives The Group’s proprietary trading securities transactions are recorded on the trade date, as if they had settled. Securities, futures and derivative positions are recorded at fair value in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 820 “Fair Value Measurements and Disclosures” (“ASC 820”). Receivables Receivables arise from the business of dealing in investment securities, futures and derivatives and include the amounts due on brokerage transactions on a trade-date basis. Broker-dealers require balances to be placed with them in order to cover the positions taken by its customers. Clearing organizations receivables typically represent proceeds receivable on trades that have yet to settle and are usually collected within two days. Receivables from broker-dealers and clearing organizations as presented in the consolidated balance sheets represent such receivables related to the Group’s customer trading activities, including customers’ cash deposits, receivables arising from unsettled trades in securities, futures and CFD trading service, and receivables arising from the Group’s TRS trading service in an amount generally equal to the market value of A-shares stock. Commissions receivable represent commissions due from trading activities and from insurance providers once referrals have been made and the transactions have been executed under the terms of the relevant insurance policy or subscription agreement. As of December 31, 2023 and 2022, commissions receivable amounted to $7,919 and $35,805, respectively, are included in the line item “prepaids, deposits and other” in the consolidated balance sheets. Crypto Currencies The following table presents the activities of the crypto currencies for the years ended December 31, 2023, 2022 and 2021: BNB Crypto currencies at January 1, 2023 $ 144,423 Additions of crypto currencies - Realized gain on sale of crypto currencies 89,649 Impairment of crypto currencies - Sale of crypto currencies (229,000 ) Crypto currencies at December 31, 2023 (4) $ 5,072 BNB and Crypto currencies at January 1, 2022 $ - Additions of crypto currencies (1) 438,042 Realized gain on sale of crypto currencies - Impairment of crypto currencies (293,619 ) Sale of crypto currencies - Crypto currencies at December 31, 2022 (4) $ 144,423 Bitcoins Crypto currencies at January 1, 2021 $ - Additions of crypto currencies (2) 1,708,753 Realized gain on sale of crypto currencies 17,496 Impairment of crypto currencies (3) - Sale of crypto currencies (1,726,249 ) Crypto currencies at December 31, 2021 (4) $ - (1) Binance Coin (“BNB”) and Wrapped BNB (“WBNB”) obtained from the sales of NFTs. The Group collected in an aggregate of approximately US$438,000 at the spot token price upon the completion of the sale of NFTs. As of December 31, 2022, the Group recorded an impairment charge of approximately US$294,000. (2) Bitcoins obtained from the crypto currency mining activities. (3) The Group did not recognize impairment loss on crypto currencies during the year ended December 31, 2021 as the crypto currencies were converted to stable coins shortly after the consideration was received and all stable coins were liquidated before the year end. (4) The balance was included in the line item “other assets” in the consolidated balance sheets as of December 31, 2023 and 2022. Cryptocurrency Mining Machines Management has assessed the basis of depreciation of the Group’s cryptocurrency mining machines used to verify crypto currency transactions and generate crypto currencies and believes they should be depreciated over a 3-year period. The rate at which the Group generates digital assets and, therefore, consumes the economic benefits of its transaction verification servers are influenced by a number of factors including the following: ● the complexity of the transaction verification process which is driven by the algorithms contained within the bitcoin open source software; ● the general availability of appropriate computer processing capacity on a global basis (commonly referred to in the industry as hashing capacity which is measured in Petahash units); and ● technological obsolescence reflecting rapid development in the transaction verification server industry such that more recently developed hardware is more economically efficient to run in terms of digital assets generated as a function of operating costs, primarily power costs i.e. the speed of hardware evolution in the industry is such that later hardware models generally have faster processing capacity combined with lower operating costs and a lower cost of purchase. The Group operates in an emerging industry for which limited data is available to make estimates of the useful economic lives of specialized equipment. Property and equipment are stated at cost, net of accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the assets. This assessment takes into consideration the management’s expectations regarding the direction of the industry including potential changes in technology. To the extent that any of the assumptions underlying management’s estimate of useful life of its transaction verification servers are subject to revision in a future reporting period either as a result of changes in circumstances or through the availability of greater quantities of data then the estimated useful life could change and have a prospective impact on depreciation expense and the carrying amounts of these assets. During the year ended December 31, 2022, the Company fully impaired and disposed of the mining equipment in an amount of approximately $1.7 million, resulting from the stumbled Bitcoin price and the change in the regulatory environment in the PRC. Prepaids, deposits and other Prepaids, deposits and other consists of prepaid services, insurance, stock-based compensations, commissions receivable and others. Balances of prepaids, deposits and other were $2,095,800 and $2,534,684 as of December 31, 2023 and 2022, respectively. NFT - Intangible assets Due to the lack of physical substance, the Group considers MetaWords NFTs that the Group created meet the definition of intangible assets and would generally be accounted for under ASC 350 Intangibles — Goodwill and Other. The useful life is indefinite according to ASC 350-30-35-4. The Group understands that there is no clear guidance either authoritative or nonauthoritative on the accounting treatment of NFTs. The Group accounts for the initial recognition of NFTs on balance sheet based on the following guidance: ASC 350-30, General Intangibles Other Than Goodwill ASC 985-20, Software to be sold, leased, or otherwise marketed By analogy to the guidance above, capitalization of the costs commences on the establishment of technological feasibility (i.e. the completion of a working model) and ceases when the NFTs are made available for release to customers. Indefinite-lived intangible assets are not amortized. Instead, they are tested for impairment annually or upon a triggering event that indicates it is more likely than not that the asset is impaired. The impairment test under ASC 350 is a one-step test that compares the fair value of the intangible asset with its carrying value. If the fair value is less than the carrying value, an impairment is recorded. Once the intangible asset is impaired, the impairment loss is not reversed if the fair value subsequently increases. As of December 31, 2022, the value of NFTs held on hand is immaterial to the consolidated financial statements taken as a whole. In accordance with the accounting policies mentioned above, the Group initially capitalized the costs of NFTs as intangible assets, which primarily included gas fees, blockchain transaction fees paid to network validators for their services, in an aggregate of less than $1,000, and subsequently determined to fully impair. Gas fees were paid by BNB tokens and measured at fair value of the tokens on the date paid. As a result, as of December 31, 2023 and 2022, the carrying value of NFTs included in intangible assets was zero. For NFTs held by users, the Group does not provide custody services either directly or indirectly, and neither it has control of these digital assets nor does it have any related liability, and as such are off-balance sheet in the Group’s consolidated financial statements. Fixed Assets, Net Furniture, equipment, software and leasehold improvements are stated at cost less accumulated depreciation. Depreciation is provided on a straight-line basis using estimated useful lives of three ten Equity Investments Without Readily Determinable Fair Values In accordance with ASC 321 Investment—Equity Securities, for those equity investments without readily determinable fair values, the Group elects to record these investments at cost, less impairment, and plus or minus subsequent adjustments for observable price changes. Under this measurement alternative, changes in the carrying value of the equity investment are required to be made whenever there are observable price changes in orderly transactions for the identical or similar investment of the same issuer. Pursuant to ASC 321, for those equity investments that the Group elects to use the measurement alternative, the Group makes a qualitative assessment of whether the investment is impaired at each reporting date. If a qualitative assessment indicates that the investment is impaired, the Group estimates the investment’s fair value in accordance with the principles of ASC 820. If the fair value is less than the investment’s carrying value, the Group recognizes an impairment loss equal to the difference between the carrying value and fair value. Impairment of Long-lived Assets Long-lived assets are evaluated for impairment whenever events or changes in circumstances (such as a significant adverse change to market conditions that will impact the future use of the assets) indicate that the carrying amount may not be fully recoverable or that the useful life is shorter than the Group had originally estimated. When these events occur, the Group evaluates the impairment by comparing carrying value of the assets to an estimate of future undiscounted cash flows expected to be generated from the use of the assets and their eventual disposition. If the sum of the expected future undiscounted cash flows is less than the carrying value of the assets, the Group recognizes an impairment loss based on the excess of the carrying value of the assets over the fair value of the assets. Other Assets Other assets are comprised primarily of the long-term portion of the value of January 2021 Call Options issued for service (see Note 14 for detail). Payables Payables arise from the business of dealing in investment securities, futures and derivatives. Payables to customers as presented in the consolidated balance sheets represent such payables related to the Group’s customer trading activities as well as cash balances held on behalf of customers. The Group borrows loans from business partners at benchmark interest rate plus a fixed spread, and immediately lends to TRS trading service customers. Net loans borrowed from TRS business partners are included in the line item “payables to broker-dealers and clearing organizations”. As of December 31, 2022, the balance of payables to broker-dealers and clearing organizations was primarily comprised of such net loans. The Group may purchase the stock option contracts from the third-party option issuers to reduce the potential loss on the options with the same underlying stocks sold to the customers. As of December 31, 2023, the balance of payables to broker-dealers and clearing organizations was primarily comprised of net loans mentioned above and payable to third-party option issuers. Commissions payable mainly represent amounts owed to referral sources of insurance brokerage business outside of the Group for transactions referred based on the terms of the underlying agreements. As of December 31, 2023 and 2022, commissions payable amounted to $35,321 and $47,359, respectively and are included in the line item “accrued expenses and other payables” in the consolidated balance sheets. Revenue Recognition See Note 3 for details. Commissions and Fees Commissions and fees related to securities, derivative and TRS trading transactions are recorded on a trade date basis. Commissions expense on insurance products are recognized on the closing date of a transaction as determined by the terms of the relevant contract and insurance policy. Convertible Securities, Warrants and Derivative Instruments The accounting treatment of warrants and convertible securities issued is determined pursuant to the guidance provided by ASC 470, Debt, ASC 480, Distinguishing Liabilities from Equity, and ASC 815, Derivatives and Hedging (“ASC 815”), as applicable. Each feature of freestanding financial instruments including, without limitation, any rights relating to subsequent dilutive issuances, equity sales, rights offerings, conversions, optional redemptions and dividends are assessed with determinations made regarding the proper classification in the Company’s consolidated financial statements. The Group evaluates all of its equity-linked financial instruments, including issued stock purchase warrants, to determine if such instruments are derivatives or contain features that qualify as embedded derivatives, pursuant to ASC 480 and ASC 815. The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity and whether embedded derivative shall be bifurcated from the host instrument and separately accounted for as a derivative, is reassessed at the end of each reporting period. Derivative assets and liabilities are recorded at fair value at inception and re-valued at each reporting date, with changes in the fair value reported in the consolidated statements of operations. On January 1, 2022, the Company early adopted Accounting Standards Update (“ASU”) ASU 2020-06, Debt – Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815-40) (“ASU 2020-06)”. The new ASU eliminates the beneficial conversion and cash conversion accounting models for convertible instruments. It also amends the accounting for certain contracts in an entity’s own equity that are currently accounted for as derivatives because of specific settlement provisions. In addition, the new guidance modifies how particular convertible instruments and certain contracts that may be settled in cash or shares impact the diluted EPS (as defined below) computation. The Company early adopted ASU 2020-06 in the first interim period of 2022 using the modified retrospective method which resulted in a reclassification of the unamortized portion of the beneficial conversion feature from additional paid-in capital to Series B Preferred shares on the consolidated balance sheets. Earnings (Loss) per Ordinary Share (“EPS”) The Company complies with accounting and disclosure requirements ASC Topic 260, “Earnings Per Share”, which requires earnings per share for each class of stock (ordinary shares and participating securities) to be calculated using the two-class method. The two-class method is an allocation of earnings between the holders of ordinary shares and a company’s participating security holders. Under the two-class method, earnings for the reporting period are allocated between ordinary shareholders and other security holders based on their respective participation rights in undistributed earnings. As the Company’s two classes of ordinary shares have the same dividend rights, earnings (loss) per share for each class of ordinary shares have the same results. Basic earnings (loss) per ordinary share is computed by dividing net income or loss available to ordinary shareholders by the weighted average number of ordinary shares issued and outstanding for the periods. For the years ended December 31, 2021, the December 2020 Convertible Debenture (as discussed in Note 12) which was fully converted into the Company’s Class A ordinary shares, as represented by ADSs in the first half of 2021 and the December 2020 Series A Warrant (as discussed in Note 12) which was exercised into the Company’s Class A ordinary shares, as represented by ADSs in the first half of 2021, have the same dividend rights as the ordinary shares on an as-converted and as-exercised basis, and therefore qualify as participating securities for the period they were outstanding in accordance with ASC 260. The holders of December 2020 Convertible Debenture and Series A Warrant do not have a contractual obligation to share in the Company’s losses, therefore participating securities are excluded from the calculation of loss per share for the year ended December 31, 2021 in which there were losses available to ordinary shareholders. In accordance with ASC 260-10-45, the 3,867,481 Class B of earnout escrow shares in connection with the business combination closed on June 16, 2020 are considered contingently returnable shares and therefore are excluded from the computation of basic earnings (loss) per share for all periods presented (on a retroactively adjusted basis). Since June 16, 2021, 50% of 1,933,740 Class B of indemnity escrow shares in connection with the business combination closed on June 16, 2020 was included in the computation of basic earnings (loss) per share and the remaining 50% was included starting from June 16, 2022. For purposes of determining diluted earnings (loss) per ordinary share, basic earnings (loss) per ordinary share is further adjusted to include the effect of potential dilutive ordinary shares outstanding during the period. Potential ordinary shares consist of the incremental ordinary shares upon exercise of warrants using the treasury stock method and upon conversion of convertible debt using the if-converted method. For the years ended December 31, 2023, 2022 and 2021, the following potential dilutive securities denominated in Class A ordinary shares equivalents were excluded for the periods they were outstanding from the computation of diluted earnings (loss) per share because to do so would have been antidilutive. As a result, diluted earnings (loss) per ordinary share is the same as basic earnings (loss) per ordinary share for all periods presented. Year Ended December 31, 2023 2022 2021 SPAC Warrants See Note 20 17,795,000 17,795,000 17,795,000 August 2020 PIPE Warrants See Note 14 729,167 729,167 1,500,000 December 2020 Convertible Debenture See Note 12 — — 800,000 December 2020 Warrants See Note 12 — — 13,700,000 January 2021 Call Options See Note 14 — 4,000,000 6,000,000 Series A Convertible Preferred Shares See Note 13 — — 2,333,333 February 2021 Warrants See Note 13 2,269,473,600 38,800,000 26,666,667 Series B Convertible Preferred Shares See Note 13 — — 3,615,584 December 2021 Warrants See Note 13 150,375,950 2,285,715 2,285,715 August 2022 and December 2022 Convertible Debentures See Note 12 — 5,200,000 — September 2023 Convertible Debenture See Note 12 2,000,000 — — Series H Warrants See Note 12 657,900 — — Subsequently, an aggregate of approximately 71.2 million Class A ordinary shares were issued resulting from the conversion of the September 2023 Convertible Debenture. Non-controlling Interests Non-controlling interests are presented in the consolidated balance sheets, separately from equity attributable to the shareholders of the Group. Income attributable to non-controlling interests’ holders is presented on the consolidated statements of operations and the consolidated statements of comprehensive income (loss) as an allocation of the total income for the periods between non-controlling interests holders and the shareholders of the Group. Under ASC 810-10-15-10(a), Consolidation, all majority-owned subsidiaries (i.e., all companies in which a parent has a controlling financial interest through direct or indirect ownership of a majority voting interest) must be consolidated unless control does not rest with the majority owner. The Group owns 50% of Lion Metaverse Limited (“LML”) and controls the board of directors. Therefore, the Group has a controlling financial interest in LML and LML is consolidated in the consolidated financial statements. On May 7, 2021, Lion NFT Limited (“LNFT”) was formed by Lion Financial Group Limited (“LFGL”) and three other shareholders in British Virgin Islands. LFGL owned 60% of equity interest of LNFT upon incorporation. During the year ended December 31, 2021, LNFT borrowed a total of $600,000 from its shareholders in the form of shareholder loans. On October 8, 2021, LFGL acquired 30% additional equity interest in LNFT for a total cash consideration of $200,000 from two of the minority shareholders. In May 2021, the Group, partnered with Grandshores Technology Group Limited (“Grandshores”), and formed Aquarius II Sponsor Ltd. (“Sponsor”). The Group owns 51% of Sponsor and consolidated it in the consolidated financial statements. In 2022, Grandshores made a contribution in the amount of $1,713,775. In 2023, the Sponsor repaid the full amount to Grandshores. In March 2023, Silver Leaf Asset Management Co., Ltd. (“SLAMCo.”) made a cash contribution in the amount of $178,916 in exchange for 49% interest in LAML, which was recorded in noncontrolling interests, with no gain or loss recognized in the consolidated financial statements. Subsequently in 2023, SLAMCo made additional capital contributions totaled $257,405, in proportion to contributions from LAML’s parent company. Reclassification Certain prior periods amounts have been reclassified to be comparable to the current period presentation. The reclassification has no effect on previously reported net assets or net income (loss). Stock-based Compensation The Group applies ASC No. 718, “Compensation-Stock Compensation”, which requires that share-based payment transactions with employees and nonemployees upon adoption of ASU 2018-07, be measured based on the grant date fair value of the equity instrument and recognized as compensation expense over the requisite service period, with a corresponding addition to equity. Under this method, compensation cost related to employee share options or similar equity instruments is measured at the grant date based on the fair value of the award and is recognized over the period during which an employee is required to provide service in exchange for the award, which generally is the vesting period. The fair value of the Group’s ordinary shares underlying stock-based awards based on the closing price of the Group’s shares as reported by Nasdaq on the date of grant. The Company values its stock options or warrants that have service vesting requirements or performance-based awards with or without market conditions using the Binomial Option Pricing Model. Research and Development Expenses Research and development expenses are expensed in the period when incurred. These costs primarily consist of designing, coding, project management, and other IT services related to developing and enhancing the project. Income Taxes The amount of current taxes payable or refundable is recognized as of the date of the consolidated financial statements, utilizing currently enacted tax laws and rates of the relevant authorities. Deferred income taxes are recognized for temporary differences between the tax basis of assets and liabilities and their reported amounts in the consolidated financial statements, net operating loss carry forwards and tax credits based on applicable tax rates. Deferred tax assets are reduced by a valuation allowance when management determines that it is more likely than not that some portion of the deferred tax asset will not be realized. Deferred tax expenses or benefits are recognized in the consolidated financial statements for the changes in deferred tax liabilities or assets between years. The Group recognizes the effect of income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount that is greater than 50 percent likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. The Group presents any interest or penalties related to an underpayment of income taxes as part of its income tax expense in the consolidated statements of operations. There is currently no taxation imposed on income by the Government of the Cayman Islands. In accordance with Cayman income tax regulations, income taxes are not levied on the Company. Consequently, income taxes are not reflected in the Company’s financial statements. The Company may be subject to potential examination by foreign taxing authorities in the area of income taxes. These potential examinations may include questioning the timing and amount of deductions, the nexus of income among various tax jurisdictions and compliance with foreign tax laws. Leases On January 1, 2022, the Group adopted FASB ASC Topic 842, “Leases,” (“ASC Topic 842”) which requires that a lessee recognize in the con |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Dec. 31, 2023 | |
Revenue Recognition [Abstract] | |
Revenue Recognition | Note 3 — Revenue Recognition Under ASC Topic 606 Revenue from Contracts with Customers, revenues are recognized when control of the promised goods or services is transferred to customers in exchange for an amount that reflects the consideration the Group expects to be entitled to and in return for transferring those goods or services. Significant Judgments Revenue from contracts with customers includes commission income from securities, futures and derivative brokerage, market making trading and insurance brokerage. The recognition and measurement of revenue is based on the assessment of individual contract terms. Significant judgment is required to determine whether performance obligations are satisfied at a point in time or over time; how to allocate transaction prices where multiple performance obligations are identified; when to recognize revenue based on the appropriate measure of progress under the contract; whether revenue should be presented gross or net of certain costs; and whether constraints on variable consideration should be applied due to uncertain future events. Commissions and Fees The Group earns fees and commissions from securities, futures and derivatives brokerage services (including commissions and fees related to TRS trading business and CFD trading services when the Group acts as a market maker). Each time a customer executes a securities, futures, derivative or CFD transaction, commissions and fees are earned. Commissions and related clearing fees and expenses are recorded on the trade date. The performance obligation is satisfied on the trade date because that is when the underlying financial instrument or purchaser is identified, the pricing is agreed upon and the risks and rewards of ownership are transferred to/from the customer. The Group charges securities brokerage commissions and market making commissions based on the amount of transaction volume, or the number of shares, lots of contracts executed in each order, which generally vary in accordance with the type of products or services the Group offers. The Group also earns commission income arising from insurance brokerage services which are recognized at a point in time when the performance obligation has been satisfied by successfully referring an insurance client to an insurer in accordance with the relevant broker contract. The commission earned is equal to a percentage of the premium paid to the insurance provider. The following table presents revenue from contracts with customers, in accordance with ASC Topic 606, by major source and geographic region: Year Ended December 31, 2023 2022 2021 Insurance brokerage commissions $ 1,169,306 $ 455,394 $ 542,795 Securities brokerage commissions 2,732,846 3,412,644 3,188,684 Market making commissions and fees 3,121,661 781,878 4,324,650 Sale of NFTs - 438,041 - Cryptocurrency mining - - 1,726,249 Total revenue from contracts with customers $ 7,023,813 $ 5,087,957 $ 9,782,378 Hong Kong 3,902,152 3,868,038 5,457,728 Cayman Islands 3,121,661 1,219,919 4,324,650 $ 7,023,813 $ 5,087,957 $ 9,782,378 All of the Group’s revenues from contracts with customers are recognized at a point in time. For the years ended December 31, 2023 and 2022, the contract balance only include commissions receivable. No revenue recognized in the reporting periods that was included in the contract liability balance at the beginning of the period. Trading Gains (Losses) Trading gains and losses along with interest revenue fall within the scope of ASC Topic 825, Financial Instruments Trading gains (losses) consist of realized and unrealized gains (losses) derived from (i) managed portfolio trading positions where the Group acts as counterparty to customers’ trades, and (ii) marking up the bid/offer spreads on customers’ CFD transactions, (iii) trading gains/(losses) from proprietary TRS trading activities, and (iv) trading gains/(losses) from OTC stock option trading activities. Trading gains/(losses) is recorded on a trade date basis. The following table represents trading gains (losses) breakdown: Year ended December 31, 2023 2022 2021 CFD trading gains/(losses) $ 16,204,480 $ (7,476,190 ) $ 4,374,807 TRS trading gains/(losses) (5,076,247 ) (3,913,422 ) 10,523,974 OTC stock option trading gains/(losses) (798,725 ) 937,109 (199,624 ) Other trading gains/(losses) 149,996 (1,015,466 ) (1,320,011 ) Total $ 10,479,504 $ (11,467,969 ) $ 13,379,146 The following table represents the effect of trading activities on the consolidated statements of operations and comprehensive income (loss): Year ended December 31, Type of Instrument 2023 2022 2021 Foreign Currency $ - $ (310 ) $ 1,454 Stock Indices 18,663,955 (7,175,826 ) 4,879,459 Commodities (2,459,475 ) (300,054 ) (506,106 ) Equity (5,724,976 ) (3,991,779 ) 9,004,339 $ 10,479,504 $ (11,467,969 ) $ 13,379,146 Year ended December 31, Line Item in Consolidated Statements of Operations and Comprehensive Income (Loss) 2023 2022 2021 Trading gains (losses) $ 10,479,504 $ (11,467,969 ) $ 13,379,146 The revenue related to each category includes realized and unrealized gains and losses on both derivative instruments and nonderivative instruments. Interest Income and Other Interest income primarily consist of interests earned on bank deposits and short-term loans the Group extends to unrelated third parties, interest rate difference between currency pairs the Group hold resulting from rolling over currency positions and interest earned from loans provided to TRS trading customers, which are recorded on an accrual basis. Interest income is recognized as it accrues using the effective interest method. Other income primarily consists of the dividends income, transaction fee, advisory service fee, government subsidy and other miscellaneous charges from customers etc. NFT Sales In January 2022, the Group launched the non-fungible token, or NFT, business through Flying Lion Limited, including (i) issuance of MetaWords character NFTs and MetaWords work NFTs (collectively, the “MetaWords NFTs”), and (ii) the establishment of the NFT trading platform, namely the Lion NFT platform (f/k/a/ Meta World). The Group created and minted the MetaWords NFTs by converting Xu Bing’s characters in his artwork Book from the Ground The Group determines revenue recognition generated by the Group’s NFT business through the following steps in accordance with ASC 606-10-05-4: ● Step 1–Identify the contract, or contracts, with the customer A contract exists between the Group and platform user customers. When the users log in their accounts with the platform, users sign on the agreement which governs, among others, the purchase of digital assets. When the users submit the purchase order and sign the transaction in their digital wallet, they agree to enter the transaction and to pay the price listed. Collectability is probable because the transaction can only be completed when the available Wrapped Binance Coin or Binance Coin balance in their digital wallet is greater than the sale price. ● Step 2–Identify the performance obligations in the contract There are two performance obligations including the transfer of MetaWords character NFTs and the transfer of a license of symbolic intellectual property (“IP”) associated with MetaWords to user customers. The Group considers itself the principal in the transfer of MetaWords character NFTs as it controls the MetaWords NFTs in advance of transferring to customers, and revenue is recognized on a gross basis. ● Step 3–Determine the transaction price In exchange for transferring certain MetaWords NFTs to customers, the Group is entitled for a fixed number of WBNB/BNB tokens, net of the incentive consideration payable to customers which were noncash consideration that the Group measures at the fair value of the tokens on the date received and accounted for as a reduction of the transaction price in accordance with the guidance in ASC 606-10-32-25. Fair value of the WBNB/BNB tokens received is determined using the quoted price of the related cryptocurrency at the time of receipt, which is not materially different from the fair value at contract inception. In exchange for a license of IP, the Group is entitled to consideration in the form of sales-based royalties (i.e. authorization fee and licensing fee when applicable), and recognizes revenue as the subsequent sales occur in accordance with ASC 606-10-55-65. ● Step 4– Allocate the transaction price to performance obligations in the contract; and As a result of applying the sales- or usage-based royalty exception, the allocation of the transaction price in the sale of Company’s MetaWords NFTs by the Group is not necessary. ● Step 5– Recognize revenue when, or as, the Group satisfies performance obligations by transferring the promised good or services. Revenue in exchange for transferring MetaWords NFTs is recognized for each sale at the point when the NFT transfers to the user customer’s digital wallet. Revenue in exchange for license of IP is recognized as the subsequent sales occur. Total sales of MetaWords NFTs, net of considerations paid to the users as the incentive were approximately $438,000 at the spot token price upon the completion of the sale for the year ended December 31, 2022. In addition, as the marketplace the Group earns revenue as transaction fee when NFTs are exchanged on the Group’s platform. The Group considers itself the agent in the MetaWords resale as it doesn’t control the MetaWords NFTs in advance of transferring to buyers, and revenue is recognized on a net basis as a specific percentage of the gross sale value. The revenue is recognized for each exchange when the NFT transfers to the buyer. The fees abovementioned that the Group is entitled to such MetaWords resale were de minimis as of December 31, 2022. The Group did not have additional sale of NFTs since January 2022. Crypto Currencies Mining The Group commenced bitcoin mining operations in late May 2021 and voluntarily ceased the operation in October 2021 as a result of the increased electricity costs as well as changes to the regulatory environment in the PRC. The Group recognizes revenue under ASC 606, Revenue from Contracts with Customers. The core principle of the revenue standard is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. The following five steps are applied to achieve that core principle: ● Step 1: Identify the contract with the customer ● Step 2: Identify the performance obligations in the contract ● Step 3: Determine the transaction price ● Step 4: Allocate the transaction price to the performance obligations in the contract ● Step 5: Recognize revenue when the Company satisfies a performance obligation In order to identify the performance obligations in a contract with a customer, a company must assess the promised goods or services in the contract and identify each promised good or service that is distinct. A performance obligation meets ASC 606’s definition of a “distinct” good or service (or bundle of goods or services) if both of the following criteria are met: The customer can benefit from the good or service either on its own or together with other resources that are readily available to the customer (i.e., the good or service is capable of being distinct), and the entity’s promise to transfer the good or service to the customer is separately identifiable from other promises in the contract (i.e., the promise to transfer the good or service is distinct within the context of the contract). If a good or service is not distinct, the good or service is combined with other promised goods or services until a bundle of goods or services is identified that is distinct. The transaction price is the amount of consideration to which an entity expects to be entitled in exchange for transferring promised goods or services to a customer. The consideration promised in a contract with a customer may include fixed amounts, variable amounts, or both. When determining the transaction price, an entity must consider the effects of all of the following: ● Variable consideration ● Constraining estimates of variable consideration ● The existence of a significant financing component in the contract ● Noncash consideration ● Consideration payable to a customer Variable consideration is included in the transaction price only to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved. The transaction price is allocated to each performance obligation on a relative standalone selling price basis. The transaction price allocated to each performance obligation is recognized when that performance obligation is satisfied, at a point in time or over time as appropriate. Providing computing power in digital asset transaction verification services is an output of the Group’s ordinary activities. The provision of providing such computing power is the only performance obligation in the Group’s contracts with mining pool operators. The transaction consideration the Group receives, if any, is noncash consideration, which the Group measures at fair value on the date received, which is not materially different than the fair value at contract inception or the time the Group has earned the award from the pools. The consideration is all variable. Because it is not probable that a significant reversal of cumulative revenue will not occur, the consideration is constrained until the mining pool operator successfully places a block (by being the first to solve an algorithm) and the Group receives confirmation of the consideration it will receive, at which time revenue is recognized. There is no significant financing component in these transactions. Fair value of the cryptocurrency award received is determined using the quoted closing price of the related cryptocurrency at the date of receipt. There is currently no specific definitive guidance under GAAP or alternative accounting framework for the accounting for cryptocurrencies recognized as revenue or held, and management has exercised significant judgment in determining the appropriate accounting treatment. For the year ended December 31, 2021, the Group recognized revenue of US$1.7 million from Bitcoin mining business. The Group did not recognize any revenue from cryptocurrency mining business since October 2021. |
Cash and Restricted Cash
Cash and Restricted Cash | 12 Months Ended |
Dec. 31, 2023 | |
Cash and Restricted Cash [Abstract] | |
Cash and Restricted Cash | Note 4 — Cash and Restricted Cash The following table provides a reconciliation of cash and restricted cash reported within the consolidated balance sheets and statements of cash flows. December 31, 2023 2022 2021 Cash $ 28,953,780 $ 11,159,610 $ 15,098,151 Restricted Cash 2,142,615 3,242,989 653,324 Total cash and restricted cash presented in the consolidated statement of cash flows $ 31,096,395 $ 14,402,599 $ 15,751,475 Restricted cash includes cash balances held on behalf of customers (see Note 2 for further information). |
Fair Value
Fair Value | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value [Abstract] | |
Fair Value | Note 5 — Fair Value Fair Value Hierarchy FASB ASC 820 defines fair value, establishes a framework for measuring fair value, and establishes a hierarchy of fair value inputs. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A fair value measurement assumes that the transaction to sell the asset or transfer the liability occurs in the principal market for the asset or liability or, in the absence of a principal market, the most advantageous market. Valuation techniques that are consistent with the market, income or cost approach, as specified by FASB ASC 820, are used to measure fair value. The fair value hierarchy prioritizes the inputs to valuation techniques used to measure fair value into three broad levels: ● Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company can access at the measurement date. ● Level 2 are inputs other than quoted prices included within level 1 that are observable for the assets or liabilities either directly or indirectly. ● Level 3 inputs are unobservable inputs for the assets or liabilities. The availability of observable inputs can vary from security to security and is affected by a wide variety of factors, including, for example, the type of security, the liquidity of markets, and other characteristics particular to the security. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement falls in its entirety is determined based on the lowest level input that is significant to the fair value measurement in its entirety. A description of the valuation techniques applied to the Group’s major categories of assets and liabilities measured at fair value on a recurring basis follows. Exchange-traded equity securities and futures are generally valued based on quoted prices at the close of trading on the period end date. To the extent these securities and futures are actively traded, valuation adjustments are not applied, and they are categorized in level 1 of the fair value hierarchy; otherwise, they are categorized in level 2 or level 3 of the fair value hierarchy. Listed derivatives that are actively traded are valued based on quoted prices at the close of trading on the period end date and are categorized in level 1 of the fair value hierarchy. Listed derivatives that are not actively traded are valued using the same approaches as those applied to over-the-counter (“OTC”) derivatives; they are generally categorized in level 2 of the fair value hierarchy. Depending on the product and the terms of the transaction, the fair value of OTC derivative products can be either observed or modeled using a series of techniques and model inputs from comparable benchmarks. Substantially all of the Group’s OTC derivatives were carried at fair value based on spot exchange rates broadly distributed in active markets, or amounts approximating fair value. Such values are categorized as level 2 of the fair value hierarchy. The significant assumptions which the Group used to value the options in the Black-Sholes-Merton pricing model are as below. There were no outstanding options as of December 31, 2022. December 31, Underlying stock price $ 0.19 ~ 15.89 Exercise price $ 0.20 ~ 17.46 Expected term in years 0.01 ~ 0.22 Expected dividend yield 0 % Volatility 14% ~ 98 % Risk-free interest Rate 3 % Public Warrants are classified as level 1 financial instruments, as their value is derived using quoted market prices as of the measurement date. Private Warrants are classified as level 2, which are valued using a binomial option pricing model at of the measurement date. The significant assumptions which the Group used in the model are: December 31, 2023 2022 Stock price $ 1.35 $ 35.75 Exercise price $ 575 $ 575 Expected term in years 1.46 2.46 Expected dividend yield 0 % 0 % Volatility 261.88 % 96.42 % Risk-free interest Rate 4.29 % 4.44 % The following table presents the Group’s fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis at December 31, 2023 and 2022: At December 31, 2023 Quoted Prices in Active Markets for Significant Significant Identical Observable Unobservable Assets Inputs Inputs (Level 1) (Level 2) (Level 3) Total Assets Listed equity securities $ 4,522,805 $ - $ - $ 4,522,805 Option assets - 1,801,095 - 1,801,095 $ 4,522,805 $ 1,801,095 $ - $ 6,323,900 Liabilities Embedded derivative liabilities $ - $ (878,420 ) $ - $ (878,420 ) Option liabilities - (3,009,166 ) - (3,009,166 ) Warrant liabilities (74,750 ) (34,937 ) - (109,687 ) $ (74,750 ) $ (3,922,523 ) $ - $ (3,997,273 ) At December 31, 2022 Quoted Prices Significant Significant (Level 1) (Level 2) (Level 3) Total Assets Listed equity securities $ 11,104,047 $ - - $ 11,104,047 $ 11,104,047 $ - $ - $ 11,104,047 Liabilities Embedded derivative liabilities $ - $ (2,292,056 ) $ - $ (2,292,056 ) Warrant liabilities (460,000 ) (215,000 ) - (675,000 ) $ (460,000 ) $ (2,507,056 ) $ - $ (2,967,056 ) There were no transfers between level 1, level 2, and level 3 during either year. The carrying amounts of cash and cash equivalents, bank balances held on behalf of customers, receivables from broker-dealers and clearing organizations, commissions receivable, other receivables, payable to customers, payables to broker-dealers and clearing organizations, accrued expenses and other payables, short-term borrowings, and lease liability approximate their fair values because of their generally short maturities. |
Short-Term Loans Receivable
Short-Term Loans Receivable | 12 Months Ended |
Dec. 31, 2023 | |
Short-Term Loans Receivable [Abstract] | |
Short-term Loans Receivable | Note 6 — Short-term Loans Receivable During the year ended December 31, 2022, the Group issued notes receivable in an aggregate of approximately $8,564,000 to two unrelated parties and received total repayments of approximately $1,499,000 including interest of $51,000. The notes were due in six months and accrue interest at a rate of 12% per annum. As of December 31, 2023 and 2022, the aggregate outstanding balance of loan receivables above was approximately nil On April 6, 2023, the Group entered into an asset acquisition agreement with Hangzhou Lanlian Technology Co., Ltd. (“Lanlian”), to acquire various software systems for its trading service, which includes Real-time High Performance Risk Management System, Intelligent Dynamic Order Distribution System, and Margin-based Securities Trading System. The aggregate purchase price for the software systems was $7,850,000. On April 13, 2023, the Group entered into Deeds of Assignments with the unrelated borrowers discussed above and Lanlian. As a result, the Group assigned the outstanding loans receivable and accrued interest in an aggregate of approximate $7,766,000 to Lanlian as part of the payment for the purchase price. No gains or losses are recognized. The assets acquisition was completed in November 2023 when Lanlian conveyed and delivered to the Group the software systems. The remaining purchase price was settled in February 2024. |
Long-Term Investment
Long-Term Investment | 12 Months Ended |
Dec. 31, 2023 | |
Long-term Investment [Abstract] | |
Long-Term Investment | Note 7 — Long-term Investment In May 2021, the Group formed Lion Group (Hangzhou) Investment Limited (“Lion Hangzhou”) and invested RMB 10,000,000 ($1,550,000) to purchase 25% of the equity interest in Hangzhou Qianlan Enterprise Management Partnership (Limited Partnership) (“Qianlan”). Qianlan, a limited partner of Hangzhou Tunlan Hongyi Investment Partnership (Limited Partnership) (“Tunlan Hongyi”), holds 62% of equity interest in Tunlan Hongyi (a private equity fund with total investment of RMB 64,500,000 which invested in Shenzhen Yuhe Chuangzhi Technology Limited Company). In accordance with ASC 820-10-35-59, investments in certain funds that do not have a readily determinable fair value may qualify for the use of the net asset value (NAV) per share as a practical expedient, if the net asset value per share of the investment is calculated in a manner consistent with the measurement principles of Topic 946 as of the reporting entity’s measurement date. This practical expedient can be applied on an investment-by-investment basis, and it is an accounting policy election and should be applied consistently from period to period, unless a change is preferable. In addition, ASC 321 offers a measurement alternative for equity investments without readily determinable fair values and allows some entities to elect to record these investments at cost, less impairment, adjusted for subsequent price changes in orderly transactions for identical or similar investment of the same issuer. An entity elects the measurement alternative on an investment by investment basis. Once elected, it should be applied to an investment consistently as long as the investment meets the qualifying criteria. In 2021, Group classified the investment to long term investment and elected to use the NAV per share as a practical expedient. As of December 31, 2022, the Group reassessed that such investment did not qualify for practical expedient anymore and elected to use ASC 321 measurement alternative. For the year ended December 31, 2022 and 2021, no gain or loss related to the long term investment was recognized. On September 28, 2023, LWL entered into a Share Transfer Agreement with a third party, pursuant to which LWL sold its 100% ownership in Lion Hangzhou for a total cash consideration of $1,500,000. The Group received the sale proceeds in full in October 2023. The Group recorded a gain on sale of approximately $122,000 upon completion of the transaction. |
Fixed Assets, Net
Fixed Assets, Net | 12 Months Ended |
Dec. 31, 2023 | |
Fixed Assets, Net [Abstract] | |
Fixed Assets, Net | Note 8 — Fixed Assets, Net Fixed assets consisted of the following as of December 31, 2023 and 2022: December 31, 2023 2022 Mining Machines $ - $ 2,585,119 Software 23,850,000 16,000,000 Leasehold improvement 38,522 38,329 Office and equipment 312,447 305,651 Total cost of fixed assets 24,200,969 18,929,099 Less: accumulated depreciation (4,356,573 ) (3,452,727 ) Less: impairment of mining machines - (1,690,028 ) Fixed assets, net $ 19,844,396 $ 13,786,344 On April 19, 2021, Lion Wealth Limited (the “Transferee”), a wholly-owned subsidiary of the Group, entered into an antminer transfer and maintenance agreement (the “Antminer Transfer and Maintenance Agreement”) with Shanghai ITHELP Network Technology Co., Ltd, (the “Transferor”), in a single transaction, to acquire the Bitmain Antminers S9 Hydro computer model equipment from the Transferor and the maintenance of the mining machines by Shanghai Minebaba Network Technology Co., Ltd (“Minebaba”). The acquisition was closed in May 2021, upon onsite inspection and acceptance and payment, with the Transferee acquiring five thousand brand new units of mining machines. The aggregate purchase price for the mining machines was approximately RMB 17 million (approximately $2.6 million), including the transportation and installation costs. The annual maintenance costs payable to the Minebaba are expected to be $0.2 million. In accordance with the Antminer Transfer and Maintenance Agreement, Minebaba shall operate and maintain the mining machines for three years. The Group may terminate Minebaba’s operation and maintenance with a written notice of 30 days prior to the termination without penalty. For the year ended December 31, 2021, the depreciation expense of the mining machines during the operation period in the amount of $378,554 and after ceasing the operation in the amount of $147,248 was included in the line item “cost of crypto mining” and “depreciation”, respectively, in the consolidated statements of operations. No such expense during the years ended December 31, 2023 and 2022. Depreciation expense, was $1,795,011, and $2,032,386 for the years ended December 31, 2023 and 2022, respectively, and are included in operating expenses. The Group recorded nil |
Short-Term Borrowings
Short-Term Borrowings | 12 Months Ended |
Dec. 31, 2023 | |
Short-Term Borrowings [Abstract] | |
Short-term Borrowings | Note 9 — Short-term Borrowings As of December 31, 2023 and 2022, total short-term borrowings outstanding was $110,000 representing a loan owed to a minority shareholder, the loan bears no interest. |
Derivatives
Derivatives | 12 Months Ended |
Dec. 31, 2023 | |
Derivatives [Abstract] | |
Derivatives | Note 10 — Derivatives Derivative financial instruments used for trading purposes are carried at fair value. Fair values for exchange-traded derivatives, principally futures and certain options, are based on quoted market prices. Fair values for OTC derivative financial instruments, principally CFDs are based on spot exchange rates broadly distributed in active markets, OTC option contracts are based on stock price and stock volatility. Factors taken into consideration in estimating the fair value of OTC derivatives include market liquidity, concentrations, and funding and administrative costs incurred. The Group does not apply hedge accounting as defined in ASC 815, because all financial instruments are recorded at fair value with changes in fair values reflected in earnings. Therefore, certain of the disclosures required under ASC 815 are generally not applicable with respect to these financial instruments. As discussed in Note 1, the Group’s derivative trading activity primarily relates to situations where it assumes the role of a market maker or a counter party in its customers’ CFD and OTC stock options transactions. If the CFD trades of one customer can be used to naturally hedge and offset the trades of another customer, the Group will act as the market maker to offer liquidity and pricing to both customers. When such an offsetting is not available, the Group may choose to use its own trades to hedge and offset the CFD trades of its customer. As for the OTC stock options transactions, the Group may choose to purchase the same options back-to-back from the third party option issuers for offsetting. The contractual amounts related to CFDs and OTC stock options reflect the volume and activity and generally do not reflect the amounts at risk. The fair value of the asset or liability is the best indicator of the Group’s risk. The credit risk for the CFDs and OTC option contracts is limited to the unrealized fair value changes of gains (losses) recorded in the balance sheets. Market risk is substantially dependent upon the value of the underlying assets and is affected by market forces such as volatility and changes in interest and foreign exchange rates. A summary of the Group’s open positions at December 31, 2023 is as follows: Description Fair Value of Fair Value of Net Amount OTC stock option contracts $ 1,801,095 $ (3,009,166 ) $ (1,208,071 ) $ 1,801,095 $ (3,009,166 ) $ (1,208,071 ) A summary of the Group’s open positions at December 31, 2022 is as follows: Description Fair Value of Fair Value of Net Amount Stock Indices CFDs 54 - 54 $ 54 $ - $ 54 The Group elects the alternative disclosure for gains and losses on derivative instrument included in its trading activities, and discloses gains and losses on its trading activities (including both derivative instruments and nonderivative instruments) separately by major type of items as required by ASC 815-10-50-4F, see Note 3 above. Offsetting Arrangements Financial assets and financial liabilities are offset and the net amount is reported in the consolidated balance sheets if each of the two parties owe each other determinable amounts, there is a currently enforceable legal right to offset the recognized amounts and there is an intention to settle on a net basis, or to realize the assets and settle the liabilities simultaneously. Concentrations of Credit Risk The Group is engaged in various trading and brokerage activities in which counterparties primarily include broker-dealers, individuals, and other financial institutions. In the event counterparties do not fulfil their obligations, the Group may be exposed to risk. The risk of default depends on the creditworthiness of the counterparty or issuer of the instrument. It is the Group’s policy to review, as necessary, the credit standing of each counterparty. |
Related Parties
Related Parties | 12 Months Ended |
Dec. 31, 2023 | |
Related Parties [Abstract] | |
Related Parties | Note 11 — Related Parties During the year ended December 31, 2023, the Group made a repayment to a director in the amount of approximately $128,000. During the year ended December 31, 2022, no advances were received or repaid from/to the individual shareholder. As of December 31, 2023, due from directors in an amount of approximately $15,000 was included in the line item “prepaid, deposits and other” in the consolidated balance sheets, and was fully collected subsequently. As of December 31, 2023 and 2022, LML recorded payable to DAWA for research and development expenses in the amount of approximately $838,000 each. The amount was included in the line item “accrued expenses and other payables” in the consolidated balance sheets. |
Convertible Debentures
Convertible Debentures | 12 Months Ended |
Dec. 31, 2023 | |
Convertible Debentures Abstract | |
Convertible Debentures | Note 12 – Convertible Debentures December 31, Convertible Debentures 2023 2022 December 2020 Convertible Debenture $ - $ - May 2022 Convertible Debenture - - August 2022 Convertible Debenture - 2,238,897 December 2022 Convertible Debenture - 1,822,838 September 2023 Convertible Debenture 1,597,404 - $ 1,597,404 $ 4,061,735 December 2020 Convertible Debenture and Warrants On December 14, 2020, the Company completed a private placement with net proceeds of $1,540,000 in exchange for the issuance of i) 9% senior secured convertible debenture (the “2020 Convertible Debenture” or “Debenture”) in the principal amount of $1,600,000, which is convertible up to 16,000 ADSs at $100.00 per ADS at any time, matures 30 months from the date of issuance and accrues interest at 9% per annum payable quarterly in cash or, in lieu of cash payment, in the Company’s ADSs, subject to adjustment and certain customary equity conditions; ii) a 2-year warrant (“Series B Warrant”) to purchase 100,000 ADS at an exercise price of $100.00 per ADS; iii) a warrant to purchase 24,000 ADS (“Series A Warrant”) until December 14, 2027 at an exercise price of $122.50 per ADS; and iv) a 7-year warrant to purchase 150,000 ADS (“Series C Warrant”, together with Series A Warrant and Series B Warrant, the “December 2020 Warrants”) at an exercise price of $122.50 per ADS. The exercisability of Series C Warrant shall vest ratably from time to time in proportion to the exercise of the Series B Warrant by the holder. Further, for each $1 million of subscription amount under the 2020 Convertible Debenture and the Series B Warrant, the purchaser shall receive a certificate representing 1,000 ADSs (or such lesser number on a ratable basis if the subscription amount is less than $1 million). Both the Debenture and the December 2020 Warrants include a full ratchet anti-dilution provision, and contain a beneficial ownership limitation on such conversion or exercise. The Company follows Accounting for Certain Financial Instruments with Down Round Features. The detachable December 2020 Warrants issued to the holder are considered to be indexed to the Company’s own stock and classified in stockholders’ equity and therefore they meet the scope exception prescribed in ASC 815-10-15. The fair value of December 2020 Warrants is measured by using Binomial Option Pricing Model and Black-Scholes Merton Valuation Model with the assumptions below on the date of issuance, with no subsequent adjustment of fair value in accordance with ASC 815. Series A Series B Series C Expected term in years 7 2 7 Stock price (ADS) $ 116.00 $ 120.00 $ 120.00 Expected dividend yield 0 % 0 % 0 % Volatility 46.68 % 49.61 % 46.68 % Risk-free interest Rate 0.63 % 0.20 % 0.63 % Initial fair value per share $ 50.50 $ 29.00 $ 41.50 In accordance with ASC 470-20, Debt with Conversion and Other Options, the net proceeds of $1,540,000 were allocated to Convertible Debenture, the detachable Series A, B and C December 2020 Warrants on their relative fair value basis, in the amount of approximately $206,000, $157,000, $375,000 and $802,000, respectively. For the holder of the Debenture, conversion price results in BCF that is separated as an equity component and assigned a value of approximately $206,000 as a debt discount. Debt discount is amortized using the effective interest rate method over the period from the issuance date through the stated redemption date. The issuance costs are allocated in the same proportion as the proceeds are allocated to the debt and warrants. Issuance costs allocated to the equity-classified warrants in an aggregate of $77,500 were charged to stockholders’ equity. The Debenture is recognized initially at fair value, net of debt discounts including original issue discount of $60,000 and allocation of proceeds to BCF and the detachable Series A and Series B Warrants of $737,000, in an aggregate of approximately $803,000 on the date of issuance. As the vesting of Series C Warrants is contingent upon the exercise of Series B Warrants, debt discounts related to allocation of proceeds to Series C Warrants will be deferred and recognized until Series C Warrants are vested on a proportional basis. On January 29, 2021, the Debenture along with accrued interest of $11,600 was fully converted into 889,667 Class A ordinary shares. The Company recognized interest expense of approximately $796,000 for the year ended December 31, 2021, including interest relating to contractual interest obligation approximately of $12,000 and amortization of the debt discounts and debt issuance cost approximately of $784,000 . As of December 31, 2023 and 2022, there was no such Debenture outstanding. As a result of January 2021 Call Options as discussed in Note 14, exercise price of Series A and Series C Warrants was adjusted from $122.50 to $100.00. In accordance with ASC 260-10-25-1, Earnings per Share-Overview-Recognition, when a down round feature is triggered, the Company recognized the effect of the down round feature in an aggregate of $743,500, and the effect is treated as a dividend and a reduction to income available to ordinary shareholders in the basic EPS calculation for the year ended December 31, 2021. During the year ended December 31, 2021, as a result of full exercise of December 2020 Warrants, the Company received the proceeds of $27.4 million in exchange for the issuance of 14,200,000 Class A ordinary shares. May 2022 Convertible Debenture On May 17, 2022, the Company entered into a Securities Purchase Agreement (the “Securities Purchase Agreement”) with ATW Opportunities Master Fund, L.P. (the “Purchaser”), pursuant to which the Company received net proceeds of $1,955,000 in consideration of the issuance of Convertible Debenture (the “May 2022 Debenture”) in the principal amount of $2,100,000. The Debenture matures on November 17, 2024, bears interest at a rate of 8% per annum to the extent such interest is paid in cash or 12.0% to the extent such interest is paid in ADSs at the Company’s election, and is convertible into ADSs at the option of the holder, beginning after its original date of issuance at a conversion price is the lesser of $50.00 or 85% of the lowest trade price in the last ten (10) trading days immediately prior to conversion, in no event that the conversion price shall be lower than $37.50, subject to adjustment, per ADS. Interest is payable quarterly. Upon the conversion of all of this Debenture prior to the maturity date, the Holder shall be entitled to receive all interest which would have accrued on the principal amount being converted after the date of such conversion, in any combination of cash or ADSs at the Company’s election (the “Interest Make-Whole”). The Debenture and include a full ratchet anti-dilution provision, and contain a beneficial ownership limitation on such conversion. As part of consideration of entering into the Securities Purchase Agreement, the Company agreed to extend the February 2021 and December 2021 Warrants (as discussed in Note 13 below) termination dates as follows: (i) the termination date for the Series D American Depositary Shares Purchase Warrant shall be extended to February 18, 2028; (ii) the termination date for the Series E American Depositary Shares Purchase Warrant shall be extended to February 18, 2025; (iii) the termination date for the Series F American Depositary Shares Purchase Warrant shall be extended to February 18, 2028; and (iv) the termination date for the Series G American Depositary Shares Purchase Warrant shall be extended to December 13, 2028. Pursuant to the adoption of ASU 2021-04, the Company considered the guidance in in ASC 815-40-35-16 through ASC 815-40-35-18 regarding the modification or exchange of a freestanding equity-classified written call option, and recognized the incremental fair value of the warrants aforementioned as a debt discount or debt issuance cost in accordance with paragraph 815-40-35-17(b), in an amount of $1,330,000. The fair value of Series D, E and G Warrants immediately before the modification is estimated to be at $12.00, $4.50 and $14.50 per share, respectively by using Binomial Option Pricing Model with an expected term of 3.75, 0.75 and 4.57 years, respectively, a stock price of $53.50 per ADS, volatility of 58.23%, 91.63%, 57.98%, respectively, a risk free rate of 2.97%, 3.16% and 2.96%, respectively, and an expected dividend yield of 0%. The fair value of Series D, E and G Warrants after the modification is estimated to be at $17.50, $9.00 and $21.50 per share, respectively by using Binomial Option Pricing Model with an expected term of 5.75, 2.75 and 6.57 years, respectively, a stock price of $52.50 per ADS, volatility of 57.82%, 61.03% and 61.21%, respectively, a risk free rate of 2.96%, 2.97% and 2.97%, respectively, and an expected dividend yield of 0%. The Company early adopted ASU 2020-06 on January 1, 2022. In accordance with ASC 815-15-25-1, the Interest Make-Whole feature is an embedded derivative that should be bifurcated and accounted for separately. As a result, the Company recognized the embedded derivative liability for Interest Make-Whole feature at its fair value of approximately $625,000 which equals to the present value of the stated interest cash flows on the Consolidated Balance Sheets, with any changes in its fair value recognized in the earnings during period, and recorded the Debenture carried at the value of approximately $1,330,000 representing the difference between the proceeds received of $1,955,000 (net of debt original issue discount of $145,000) and the fair value of the derivative. Further, the Company charged the debt issuance cost of $1,330,000 against the proceeds. Debt discount and debt issuance costs are amortized using the effective interest rate method over the period from the issuance date through the stated maturity date. The Company recognized interest expense of approximately $445,000 for the year ended December 31, 2022, resulting from the amortization of the debt discounts. During the year ended December 31, 2022, the May 2022 Convertible Debenture along with the Make-Whole interest of $630,000 were fully converted into an aggregate of 3,194,885 Class A ordinary shares. As of December 31, 2023 and 2022, there was no such Debenture outstanding. August 2022, December 2022 and September 2023 Convertible Debentures, under August 2022 SPA On August 9, 2022, the Company entered into a Securities Purchase Agreement (the “August 2022 SPA”) with ATW Opportunities Master Fund II, L.P. (the “Purchaser”), pursuant to which the Company received net proceeds of $3,300,000 on August 10, 2022 (the “First Closing’) in consideration of the issuance of Convertible Debenture (the “August 2022 Debenture”) in the principal amount of $3,500,000. The Company also granted the Purchaser the right to purchase an additional $25 million of Debentures within 24-month anniversary of the First Closing Date (the “Subsequent Closings’), pursuant to which the Company received net proceeds of $2,840,000 on December 7, 2022 (the “Second Closing’) in consideration of the issuance of Convertible Debenture (the “December 2022 Debenture”) in the principal amount of $3,000,000. On September 2, 2023, the Company entered into a letter agreement (the “September 2023 Letter Agreement”) with the Purchaser, pursuant to which the Company issued a Series H ADS Purchase Warrant (the “Series H Warrants”) to purchase up to 13,158 ADSs with an exercise price equal to $1.90 per ADS and having a term of exercise expiring five years after the issuance, in consideration for the Purchaser’s exercise of rights to purchase an additional $2,500,000 Debenture. On September 5, 2023, the Company received net proceeds of $2,365,000 (the “Third Closing’) upon the issuance of Convertible Debenture (the “September 2023 Debenture”). The fair value of Series H Warrants is estimated to be at $0.16 per share, and the aggregate fair value of $2,000 was treated as issuance costs for the debenture. August 2022, December 2022 and September 2023 Convertible Debentures have the same terms as the May 2022 Convertible Debenture, except that they mature at the 36-month anniversary. Upon issuance, the Company recognized the embedded derivative liability for Interest Make-Whole feature at its fair value of approximately $1,241,000, $1,051,000 and $878,000 on the Consolidated Balance Sheets for August 2022, December 2022 and September 2023 Convertible Debentures, respectively, which equal to the present value of the stated interest cash flows, with any changes in its fair value recognized in the earnings during period, and recorded the Debentures carried at the value of approximately $2,059,000, $1,789,000, and $1,485,000 for August 2022, December 2022 and September 2023 Convertible Debentures, respectively, representing the difference between the proceeds received and the fair value of the derivative. Debt discounts are amortized using the effective interest rate method over the period from the issuance date through the stated maturity date. The Company recognized interest expense aggregating approximately $522,000 and $214,000 for the years ended December 31, 2023 and 2022, respectively resulting from the amortization of the debt discounts. For the year ended December 31, 2023, the whole August 2022 Convertible Debenture along with the Make-Whole interest of approximately $1.2 million were fully converted into an aggregate of 39,489,758 Class A ordinary shares, and the whole December 2022 Convertible Debenture along with the Make-Whole interest of approximately $1.1 million were fully converted into an aggregate of 70,999,400 Class A ordinary shares. As of December 31, 2023, the carrying value of September 2023 Convertible Debenture was approximately $1,597,000. Embedded Derivative Liability In connection with the issuance of May 2022, August 2022, December 2022 and September 2023 Convertible Debentures as discussed above, the Company separately measured their embedded Interest Make-Whole feature at its fair value, with changes in fair value recognized in earnings. The following represents a summary of all outstanding embedded derivatives in convertible debentures at period end. December 31, Embedded Derivative Liability bifurcated from: 2023 2022 May 2022 Convertible Debenture $ - $ - August 2022 Convertible Debenture - 1,241,261 December 2022 Convertible Debenture - 1,050,795 September 2023 Convertible Debenture 878,420 - $ 878,420 $ 2,292,056 |
Convertible Preferred Shares an
Convertible Preferred Shares and Attached Warrants | 12 Months Ended |
Dec. 31, 2023 | |
Convertible Preferred Shares and Attached Warrants [Abstract] | |
Convertible Preferred Shares and Attached Warrants | Note 13 — Convertible Preferred Shares and Attached Warrants February 2021 Series A Convertible Preferred Shares and Warrants On February 15, 2021, the Company entered into a Securities Purchase Agreement (the “Securities Purchase Agreement-February 2021”) with one third party investor (the “Purchaser”), pursuant to which the Company received $6,440,000 in consideration of the issuance of: a) Series A Convertible Preferred Shares (the “Series A Convertible Preferred Shares”) with a stated value of $7,000,000; b) a warrant (the “Series D Warrant”) to purchase 46,667 ADSs of the Company until the fifth year anniversary of the closing date at an exercise price of $150.00 per ADS; c) a one-year warrant to purchase 266,667 ADS (the “Series E Warrant”) at an exercise price of $150.00 per ADS, each exercise of which entitles the warrant holder to receive one ADS and a 8% cash discount; and d) a 5-year warrant to purchase 266,667 ADS (the “Series F Warrant”, together with the Series D Warrant and the Series E Warrant, the “February 2021 Warrants”) at an exercise price of $150.00 per ADS. The exercisability of Series F Warrant shall vest ratably from time to time in proportion to the exercise of the Series E Warrants by the holder. The transactions contemplated under the Securities Purchase Agreement were closed on February 18, 2021. The number of Series A Convertible Preferred Shares is 7,000 and each share has a par value of $0.0001 and a stated value of $1,000. The Series A Convertible Preferred Shares have no voting rights, bear dividend rights at a rate of 8% per annum commencing on the six month anniversary of the closing date, and are convertible into the ADSs, beginning after its original date of issuance at an initial conversion price of $150.00 per ADS. Dividend is payable quarterly in cash, or the Company may pay accrued interest in its ADSs. At election of the Company, the Series A Convertible Preferred Shares may be redeemed, subject to certain equity conditions. Both the Series A Convertible Preferred Shares and the February 2021 Warrants include full ratchet anti-dilution provisions, and contain a beneficial ownership limitation on such conversion or exercise. Series A Convertible Preferred Shares are classified as equity and carried at the amount recorded at inception, without amortization. The discount to the redemption amount shall be recognized as a dividend upon redemption. The detachable February 2021 Warrants issued to the holder are considered to be indexed to the Company’s own stock and classified in stockholders’ equity and therefore they meet the scope exception prescribed in ASC 815-10-15. The fair value of February 2021 Warrants is measured by using Binomial Option Pricing Model and Black-Scholes Merton Valuation Model with the assumptions below on the date of issuance, with no subsequent adjustment of fair value in accordance with ASC 815. Series D Series E Series F Expected term in years 5 1 5 Stock price (ADS) $ 148.50 $ 151.00 $ 148.50 Expected dividend yield 0 % 0 % 0 % Volatility 43.05 % 50.45 % 43.05 % Risk-free interest Rate 0.63 % 0.21 % 0.63 % Initial fair value per share $ 53.50 $ 26.50 $ 44.50 In accordance with ASC 470-20, Debt with Conversion and Other Options, the Company allocated the net proceeds to Series A Convertible Preferred Shares, the detachable Series D, E and F February 2021 Warrants on their relative fair value basis, in the amount of approximately $1,563,000, $560,000, $1,588,000 and $2,669,000, respectively. For the holder of the Series A Convertible Preferred Shares, conversion price results in BCF that is separated as an equity component and assigned a value of approximately $1,563,000 as a prefer stock discount. Such discount is amortized all at once upon issuance date and the amortization is treated as a deemed dividend for the year ended December 31, 2021. The issuance costs are allocated in the same proportion as the proceeds are allocated to the preferred stock and warrants. Issuance costs allocated to the equity-classified warrants in an aggregate of $81,000 were charged to additional paid in capital. The Series A Convertible Preferred Shares are recognized initially at fair value, net of discounts including original issue discount of $620,000 and allocation of proceeds to the detachable Series D and Series E Warrants of $2,149,000, in an amount of approximately $4,231,000 on the date of issuance. As the vesting of Series F Warrants is contingent upon the exercise of Series E Warrants, preferred stock discounts related to allocation of proceeds to Series F Warrants will be deferred and recognized until Series F Warrants are vested on a proportional basis. Each of the February 2021 securities contain down round features which would reduce the respective conversion price or exercise prices to the effective price at which any future securities are sold. In consideration of the transaction entered into in December 2021 below, the investor agrees to waive the full ratchet anti-dilution provision and set the conversion price and exercise prices as follows: (i) the conversion price of the Series A Preferred Shares is adjusted to the lower of $87.50 or 90% of the lowest daily Volume-Weighted Average Price in the last 10 trading days prior to conversion, in no event that the conversion price shall be lower than $37.50, as amended; (ii) the exercise price of the Series D Warrants is adjusted to $125.00; (iii) the exercise price of the Series E Warrants is adjusted to $100.00; and (iv) the exercise price of the Series F Warrants is adjusted to $125.00. The ADSs issuable upon exercise of the Series D/E/F Warrants were adjusted to 56,000, 400,000 and 320,000, respectively for the aggregate exercise price to remain unchanged. In accordance with ASC 260-10-25-1, the Company recognized the effect of such reprice event for February 2021 Warrants in an aggregate of $5.3 million, and the effect is treated as a dividend and a reduction to income available to ordinary shareholders in the basic EPS calculation for the year ended December 31, 2021. During the year ended December 31, 2021, 500 Series A Preferred Shares along with accrued dividend of $14,000 were converted into an aggregate of 349,789 Class A ordinary shares. 6,500 Series A Preferred Shares remained outstanding as of December 31, 2021 in the carrying value of $3,929,000. During the year ended December 31, 2022, the remaining 6,500 Series A Preferred Shares along with accrued dividend of $325,000 were fully converted into an aggregate of 8,280,270 Class A ordinary shares. As a result of early adoption of ASU 2020-06 on January 1, 2022 using the modified retrospective method, no cumulative effect was recognized with regards to Series A Preferred Shares. The Company recognized cumulative dividend of approximately $130,000 and $209,000 for the years ended December 31, 2022 and 2021, respectively. December 2021 Series B Convertible Preferred Shares and Warrants On December 13, 2021, the Company entered into a Securities Purchase Agreement (the “Securities Purchase Agreement-December 2021”) with the same third party investor (the “Purchaser”), pursuant to which the Company received net proceeds of $3,800,000 in consideration of the issuance of: a) Series B Convertible Preferred Shares (the “Series B Convertible Preferred Shares”) with a stated value of $4,000,000; and b) a 5-year warrant to purchase 45,714 ADSs (the “Series G Warrants”, or the “December 2021 Warrants”) of the Company until on or prior to December 13, 2026 at an exercise price of $125.00 per ADS. The transactions were closed on December 13, 2021. The number of Series B Convertible Preferred Shares is 4,000 and each share has a par value of $0.0001 and a stated value of $1,000. The Series B Convertible Preferred Shares have no voting rights, bear dividend rights at a rate of 8% per annum commencing on the closing date, and are convertible into the ADSs, beginning after its original date of issuance at an initial conversion price of $87.50 per ADS or 90% of the lowest daily volume-weighted average price during the 10 consecutive trading days prior to the conversion date, in no event that the conversion price shall be lower than $37.50 per ADS, as amended. Dividend is payable quarterly in cash, or the Company may pay accrued interest in its ADSs. On the third anniversary of the original issue date, the Company shall redeem, at the option of the holder, all of the then outstanding Series B Convertible Preferred Shares, for an amount in cash equal to the sum of (a) 100% of the aggregate cash investment of $3,800,000 and (b) accrued but unpaid dividends due in respect of the preferred shares. Both the Series B Convertible Preferred Shares and the December 2021 Warrants include full ratchet anti-dilution provisions, and contain a beneficial ownership limitation on such conversion or exercise. The detachable December 2021 Warrants issued to the holder are considered to be indexed to the Company’s own stock and classified in stockholders’ equity and therefore they meet the scope exception prescribed in ASC 815-10-15. The fair value of December 2021 Warrants is estimated to be at $29.00 per share by using Binomial Option Pricing Model with an expected term of 5 years, a stock price of $85.00 per ADS, volatility of 53.42%, a risk free rate of 1.30% and an expected dividend yield of 0%. In accordance with applicable accounting standards, Series B Convertible Preferred Shares qualified as redeemable securities and are classified as mezzanine equity; the net proceeds were allocated to the Series B Convertible Preferred Shares and the detachable Series G Warrant on their relative basis, in the amount of approximately $2,800,000 and $950,000, respectively. The Series B Preferred Shares contained a BCF that is separated as an equity component and assigned a value of approximately $1,613,000 as a prefer stock discount. The issuance costs are allocated in the same proportion as the proceeds are allocated to the preferred stock and warrants. Issuance costs allocated to the equity-classified warrants in an aggregate of $8,000 were charged to additional paid in capital. The Series B Convertible Preferred Shares are recognized initially at fair value, net of debt discounts including original issue discount of $50,000 and allocation of proceeds to the detachable Series G Warrants of $950,000 and to the BCF of $1,613,000, in an amount of approximately $1,186,000 on the date of issuance. Such discounts are accreted over the period from the date of issuance to the date of the earliest redemption and the accretion is treated as a deemed dividend. For the year ended December 31, 2021, the accretion was recognized as a deemed dividend to preferred stockholders in the amount of approximately $36,000, resulting in the carrying amount accreted to approximately $1,222,000 as of December 31, 2021. As a result of early adoption of ASU 2020-06 on January 1, 2022 using the modified retrospective method, a reclassification of the unamortized portion of the BCF in the amount of $1,591,000 from additional paid-in capital to Series B Preferred shares on the consolidated balance sheets. For the year ended December 31, 2022, the 4,000 Series B Preferred Shares along with accrued dividend of $294,000 were fully converted into an aggregate of 5,158,472 Class A ordinary shares, and the accretion was recognized as a deemed dividend to preferred stockholders in the amount of approximately $187,000 prior to conversions. The Company recognized cumulative dividend of approximately $278,000 and $16,000 for the years ended December 31, 2022 and 2021, respectively. Subsequent Changes to February 2021 and December 2021 Warrants As a result of the issuance of Series H Warrants in September 2023 (as discussed in Note 12), the exercise price of the Series D/E/F/G Warrants was further adjusted to $1.90 per ADS. The ADSs issuable upon exercise of the Series D/E/F/G Warrants were adjusted to 3,684,210, 21,052,631, 21,052,631, and 3,007,519, respectively for the aggregate exercise price to remain unchanged. In accordance with ASC 260-10-25-1, the Company recognized the effect of such reprice event for February 2021 and December 2021 Warrants in an aggregate of approximately $6.1 million, and the effect is treated as a dividend and a reduction to income available to ordinary shareholders in the basic EPS calculation for the year ended December 31, 2023. The fair value of Series D, E and G Warrants immediately before the reprice is estimated to be at $1.22, $0.35 and $1.43 per share, respectively and the fair value of Series D, E and G Warrants after the reprice is estimated to be at $0.17, $0.25 and $0.18 per share, respectively, by using Binomial Option Pricing Model with an expected term of 6.46, 3.46 and 7.28 years, respectively, a stock price of $3.04 per ADS, volatility of 107.83%, 108.52%, 107.66%, respectively, a risk free rate of 3.90%, 4.22% and 3.87%, respectively, and an expected dividend yield of 0%. In September 2023, the Company received an aggregate of net proceeds of approximately $0.7 million in exchange for the issuance of 20,000,000 Class A ordinary shares, as a result of the partial exercise of Series E Warrants at an exercise price of $1.90 per ADS. |
Stockholders_ Equity
Stockholders’ Equity | 12 Months Ended |
Dec. 31, 2023 | |
Stockholders’ Equity [Abstract] | |
Stockholders’ Equity | Note 14 — Stockholders’ Equity Ordinary Shares and Preferred Shares The Company was initially authorized to issue (i) 450,000,000 ordinary shares, $0.0001 par value per share, divided into 300,000,000 Class A ordinary shares and 150,000,000 Class B ordinary shares, and (ii) 50,000,000 preferred shares, $0.0001 par value per share. On October 6, 2023, the Company held the 2023 Annual Meeting of Shareholders (the “2023 Annual Meeting”). The 2023 Annual Meeting approved the increase of the Company’s authorized share capital from US$50,000 divided into 500,000,000 shares of a par value of US$0.0001 each, comprising of 300,000,000 Class A ordinary shares, 150,000,000 Class B ordinary shares, and 50,000,000 preferred shares of a par value of US$0.0001 each, to US$5,000,000 divided into 50,000,000,000 shares of a par value of US$0.0001 each, comprising of 40,000,000,000 Class A ordinary shares, 7,500,000,000 Class B ordinary shares, and 2,500,000,000 preferred shares of a par value of US$0.0001 each. As of June 16, 2020, subsequent to the closing of the business combination, there were 17,399,176 ordinary shares outstanding, including 7,647,962 Class A ordinary shares and 9,751,214 Class B ordinary shares, and no preferred shares outstanding. On November 12, 2020, as a result of post-merger consideration adjustment, additional 121,473 ordinary shares were issued to Lion’s original shareholders, including 29,591 Class A ordinary shares and 91,882 Class B ordinary shares. An aggregate of 1,933,740 Class B ordinary shares set aside as the indemnity escrow shares following the closing of the business combination was no longer subject to forfeiture in June 2023. An aggregate of 3,876,481 Class B ordinary shares set aside as the earnout escrow shares was to be forfeited as the 2021 net income and 2022 net income targets were not met. The shareholders of Class A and Class B ordinary shares have the same rights except for the voting and conversion rights. Each Class A ordinary share was initially entitled to one vote, and is not convertible into Class B ordinary share under any circumstance; and each Class B ordinary share is entitled to ten votes, and is convertible into one Class A ordinary share at any time by the holder thereof, subject to adjustments for any subdivision or combination. On February 16, 2022 and January 13, 2023, the Company held General Meetings of Shareholders that approved the increase by the number of votes attached to Class B Ordinary Shares from ten (10) votes per Class B Ordinary Share to twenty five (25) votes per Class B Ordinary Share, and from twenty five (25) votes per Class B Ordinary Share to one hundred (100) votes per Class B Ordinary Share, respectively. As of December 31, 2023 and 2022, there was an aggregate of 179,250,754 and 48,761,596 Class A ordinary shares issued and outstanding, respectively; and an aggregate of 23,843,096 and 9,843,096 Class B ordinary shares issued and outstanding, respectively. As of December 31, 2023 and 2022, there was no August 2020 Private Placement On August 1, 2020, the Company entered into a securities purchase agreement (as amended on September 29, 2020, and later amended and restated on October 19, 2020) with three investors (collectively, the “Investors”). Two tranches of transactions contemplated under the agreement were closed on August 3 and November 13, 2020, respectively. As a result, an aggregate of 30,000 ADSs and warrants to purchase an aggregate of 30,000 of the Company’s ADS at US$150.00 per ADS (the “August 2020 PIPE Warrants”) were issued at US$100.00 per ADS for an aggregate purchase price of US$3 million, and an aggregate of 3,000 ADSs were issued as origination fee. Issuance costs of approximately $469,000 were recorded as a charge to additional paid-in capital, including legal and accounting fees. In accordance with ASC 815-40, Derivatives and Hedging — Contracts in Entity’s Own Equity, warrants are classified within stockholders’ equity as “additional paid in capital” upon their issuance. The proceeds were allocated to ordinary shares and private investment in public equity warrants (“PIPE Warrants”) on the relative fair value of the securities in accordance with ASC 470-20-30. In aggregate, the net proceeds to the Company were approximately $2,531,000 classified within stockholders’ equity, including a subscription receivable of $508,750 classified in the other receivables in the consolidated balance sheets as of December 31, 2020 which was received in January 2021. Such warrants shall be exercisable for a period of three The exercise price of PIPE Warrants was adjusted to $100.00 per ADS as a result of January 2021 Call Options as discussed below, and adjusted a second time to $87.50 per ADS as a result of December 2021 Series B Convertible Preferred Shares. In accordance with ASC 260-10-25-1, when a down round feature is triggered, the Company recognized the effect of the down round feature in an aggregate of $278,000 and $16,000, respectively, and the effect was treated as a dividend and a reduction to income available to ordinary shareholders in the basic EPS calculation for the year ended December 31, 2021. For the year ended December 31, 2021, 770,833 Class A ordinary shares were issued for the aggregate proceeds of approximately $1.5 million, as a result of investors’ exercise of August 2020 PIPE Warrants. For the year ended December 31, 2023, the remaining PIPE Warrants to purchase 14,583 ADSs (equivalent to 729,167 Class A ordinary shares) expired unexercised. January 2021 Call Options On January 6, 2021, the Company entered into a binding strategic cooperation framework agreement (the “Strategic Cooperation Agreement”) with Mr. Yao Yongjie (“Mr. Yao”) and engaged Mr. Yao as the chief technical adviser to provide technical advice and consultancy service in blockchain industry. The Company grants to Mr. Yao options (the “Call Options”) to subscribe for 6 million Class A ordinary shares, represented by ADSs at a price fixed at US$2 per Class A ordinary share. Within 24 months of the signing of the Strategic Cooperation Agreement, Mr. Yao may exercise the right to subscribe for such shares by tranches if the following conditions are met: (i) if the closing price of the shares in the Company exceeds US$150 per ADS for 3 consecutive trading days, Mr. Yao may exercise 2 million call options; (ii) if the closing price of the shares in the Company exceeds US$250 per ADS for 3 consecutive trading days, Mr. Yao may exercise 2 million call options; (iii) if the closing price of the shares in the Company exceeds US$375 per ADS for 3 consecutive trading days, Mr. Yao may exercise 2 million call options. The Company estimated the fair value of the call options at $0.47, $0.33 and $0.16 per share for three tranches, respectively on the date of grant using Binomial Option Pricing Model applying an expected term of 2 years, a stock price of $97.00 per ADS, volatility of 51.69%, a risk free rate of 0.21% and an expected dividend yield of 0%. The aggregate fair value of the Call Options of $1,909,000 is recognized as stock-based compensation expense over the requisite service period which is five-year period from the date thereof. For the years ended December 31, 2023, 2022 and 2021, an aggregate of $382,000 each was recognized in expenses included in the consolidated statements of operations for the service provided. For the year ended December 31, 2021, 2,000,000 Class A ordinary shares, as represented by ADSs were issued for the aggregate proceeds of $4.0 million, as a result of exercise of Call Options. As of January 3, 2023, the remaining aggregate of 4 million Call Options expired unexercised. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2023 | |
Stock-Based Compensation [Abstract] | |
Stock-Based Compensation | Note 15 — Stock-Based Compensation 2020 Share Incentive Plan In June 2020, in connection with the business combination, the Company’s board approved the 2020 Share Incentive Plan (the “2020 Plan”) and reserved 4,632,449 ordinary shares for issuance thereunder. The Company’s employees, non-employee directors and consultants are eligible to receive options, restricted shares, restricted share units, dividend equivalents, deferred shares, share payments or share appreciation rights, which may be awarded or granted under the Plan (collectively, “Awards”). The administrator is authorized to grant deferred shares to any eligible individual. The number of shares of deferred shares shall be determined by the administrator; shares underlying a deferred share award will not be issued until the deferred share award has vested, pursuant to a vesting schedule or other conditions or criteria set by the administrator. As of December 31, 2023 and 2022, a total of 3,936,504 shares each had been granted under the 2020 Plan and 695,945 shares each remained available for future awards. On December 1, 2020, 1,486,504 deferred shares were granted to certain employees, non-employee directors and consultants for their services during the year ended December 31, 2020. All of the deferred shares granted are fully vested on the grant date. The Company estimated the fair value of shares at $2.46 per ordinary share based on the closing price of $123.00 per ADS on the grant date in an aggregate of $3,656,800. On March 3, 2022, 2,450,000 deferred shares were granted to certain non-employee consultants for their services for the years of 2022 and 2023. All of the deferred shares granted are fully vested on the grant date. The Company estimated the fair value of shares at $0.75 per ordinary share based on the closing price of $37.50 per ADS on the grant date in an aggregate of $1,837,500. The stock-based compensation expenses are recognized over the requisite service period. 2023 Share Incentive Plan On October 6, 2023, the 2023 Annual Meeting approved and adopted the Company’s 2023 Equity Incentive Plan, pursuant to which an aggregate of 33,818,770 ordinary shares will be awarded or granted. On October 31, 2023, the Compensation Committee approved that a total of 32,000,000 Class B ordinary shares in the form of shares and deferred shares were granted to two directors in exchange for their services through the third quarter of 2024. The Company estimated the fair value of shares at $0.02 per Class B ordinary share based on the closing price of $1.00 per ADS on the grant date in an aggregate of $640,000. The stock-based compensation expenses are recognized over the requisite service period. On December 14, 2023, a total of 14,000,000 Class B ordinary shares were vested and issued to the directors. As of December 31, 2023, a total of 1,818,770 shares under the 2023 Plan remained available for future awards. The following table provides the details of the total share-based payments under 2020 Plan and 2023 Plan during the years ended December 31, 2023, 2022, and 2021. Year ended December 31, 2023 2022 2021 Compensation and benefits $ 373,333 $ - $ - Communication and technology 225,000 225,000 - Marketing 206,250 206,250 - Professional fees 243,750 243,750 - General and administrative 243,750 243,750 - Total $ 1,292,083 $ 918,750 $ - As of December 31, 2023, approximately $266,000 of total unrecognized compensation expense related to future services is expected to be recognized over a period of less than one year. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2023 | |
Income Taxes [Abstract] | |
Income Taxes | Note 16 — Income Taxes The current and deferred portions of the income tax expense included in the consolidated statements of operations and comprehensive income (loss) as determined in accordance with ASC 740, Income Taxes, are as follows: Year ended December 31, 2023 2022 2021 Current $ 1,058 $ 3,419 $ 53,239 Deferred - - 1,128 $ 1,058 $ 3,419 $ 54,367 A reconciliation of the difference between the expected income tax expense or benefit computed at applicable statutory income tax rates and the Group’s income tax expense is shown in the following table: Year ended December 31, 2023 2022 2021 Income tax (benefit) expense at applicable statutory rate (1) $ (792,883 ) $ (5,199,883 ) $ 3,085 Nondeductible expenses 939,078 328,511 (398,706 ) Impact of foreign tax rate differential (2) (1,047,950 ) 3,117,801 (1,208,726 ) Current year change in valuation allowance (45,629 ) 1,804,389 1,606,803 Other (4,304 ) (47,399 ) (1,328 ) Prior year examination adjustment 952,746 - 53,239 Reported income taxes $ 1,058 $ 3,419 $ 54,367 (1) The applicable statutory rate applied is based on the profits tax rates in Hong Kong. Effective for tax years ended on or after December 31, 2018, the applicable tax rate was 8.25% on the first HK $2,000,000 of assessable profits and 16.5% on any assessable profits above that threshold. The 8.25% tax rate can only be utilized by one entity in a controlled group. All other Hong Kong entities in the Group utilize the 16.5% tax rate. The Singapore entity within the Group has an applicable tax rate of 17.0%. The entity in the United States within the Group has a federal tax rate of 21.0%. (2) The Group also has entities domiciled in the British Virgin Islands and the Cayman Islands, but such entities are not subject to income or capital gains taxes. Significant components of the Group’s deferred tax assets (liabilities) are presented below: As of December 31, 2023 2022 Deferred tax asset Net operating loss carryforwards $ 4,906,816 $ 4,952,445 Less: Valuation allowance (4,906,816 ) (4,952,445 ) Net deferred tax asset $ - $ - Management has applied a valuation allowance to the total amount of deferred tax assets based on the determination that it is more likely than not that the deferred tax asset will not be realized. This determination was based on the historic and estimated future profitability of the entities to which the deferred tax assets relate. The tax rules in Hong Kong do not allow the Group to file on a consolidated basis. |
Lease
Lease | 12 Months Ended |
Dec. 31, 2023 | |
Lease [Abstract] | |
Lease | Note 17 —Lease All of the Group’s leases are classified as operating leases and primarily consist of real estate leases for corporate offices and other facilities. As of December 31, 2023 and 2022, the weighted-average remaining lease term on these leases is approximately 1.13 and 2.07 years, respectively and the weighted-average discount rate used to measure the lease liabilities was approximately 2.87% each. The Group’s lease agreements do not contain any residual value guarantees, restrictions or covenants. Cash paid for amounts included in the measurement of operating lease liabilities was approximately $599,000 and $561,000 for the year ended December 31, 2023 and 2022, respectively. The following table presents balances reported in the consolidated balance sheets related to the Group’s leases: As of December 31, 2023 2022 Operating lease right-of-use assets $ 593,678 $ 1,160,563 Operating lease liabilities $ 620,920 $ 1,220,236 The following table presents operating lease cost reported in occupancy expenses on the consolidated statements of comprehensive (loss)/income related to the Group’s leases: Year ended December 31, 2023 2022 Operating lease cost $ 594,228 $ 699,909 The following table reconciles the undiscounted cash flows of the Group’s leases as of December 31, 2023 to the present value of its operating lease payments: Year ended 2024 $ 544,560 2025 83,130 Thereafter - Total undiscounted operating lease payments 627,690 Less: imputed interest (6,770 ) Present value of operating lease liabilities $ 620,920 |
Regulatory Requirements
Regulatory Requirements | 12 Months Ended |
Dec. 31, 2023 | |
Regulatory Requirements [Abstract] | |
Regulatory Requirements | Note 18 — Regulatory Requirements The following table illustrates the minimum regulatory capital as established by the Hong Kong Securities and Futures Commission, the Insurance Authority (Hong Kong), Monetary Authority of Singapore, and the Cayman Islands Monetary Authority (CIMA) that the Company’s subsidiaries were required to maintain as of December 31, 2023 and the actual amounts of capital that were maintained. Entity Name Minimum Capital Levels Excess Net Percent of Lion International Securities Group Limited $ 384,034 $ 1,191,452 $ 807,418 310 % Lion Futures Limited 384,034 1,105,705 721,671 288 % Lion Asset Management Limited 12,801 371,207 358,406 2900 % BC Wealth Management Limited 64,006 171,232 107,226 268 % Lion International Financial (Singapore) Pte. Ltd. 757,691 794,148 36,457 105 % Lion Broker Limited (Cayman) 5,555,528 18,036,054 12,480,526 325 % Total $ 7,158,093 $ 21,669,797 $ 14,511,704 303 % |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Segment Reporting | Note 19 — Segment Reporting ASC 280, Disclosures about Segments of an Enterprise and Related Information, establishes standards for reporting information about operating segments. Operating segments are defined as components of an enterprise which engage in business activities from which they may earn revenues and incur expenses, and about which separate financial information is available that is evaluated regularly by the chief operating decision-maker, or decision-making group (the “CODM”), in deciding how to allocate resources and in assessing performance. Reportable segments are defined as an operating segment that either (a) exceeds 10% of revenue, or (b) reported profit or loss in absolute amount exceeds 10% of profit of all operating segments that did not report a loss or (c) exceeds 10% of the combined assets of all operating segments. Chief executive officer is determined as the CODM of the Group. The Group has four primary operating segments (1) futures and securities brokerage services; (2) market making (CFD) trading; (3) TRS trading; (4) OTC stock option trading; and (5) others. The Group’s futures and securities brokerage segment generates commission income by enabling customers to trade in futures and securities markets throughout the world. The Group engages in market making (CFD trading) activities where it serves as the counterparty to its customers in derivative transactions. The Group experiences trading gains and losses from such market making (CFD trading) activities. The Group generated income from TRS trading business including the commission income from the securities trading and interest income from the loan to customers. The Group also generated trading gains or losses from the OTC stock options where it serves as the counterparty in the option contracts. Other businesses include the following: (1) insurance brokerage segment which generates commissions by providing insurance brokerage services to high-net-worth individuals; (2) proprietary trading activities in investment securities, futures and derivatives, (3) sale of NFT and development NFT platform and Metaverse games; (4) cryptocurrency mining; and (5) executive management functions and corporate overhead. Futures and securities OTC brokerage CFD TRS Stock option services trading trading trading Other Total Year ended December 31, 2023 Revenues (losses) 2,570,495 19,326,140 (2,342,395 ) (798,725 ) 2,335,729 21,091,244 Commissions and fees 1,606,210 - 825,503 - 986,685 3,418,398 Compensation and benefits 997,602 - - - 3,102,250 4,099,852 Occupancy - 7,120 7,120 7,120 848,894 870,254 Communication and technology 471,918 225,636 225,636 225,636 1,910,636 3,059,462 General and administrative 226,802 33,492 33,492 33,492 1,104,870 1,432,148 Crypto currencies - - - - - - Professional fees 24,411 50,432 50,432 50,432 3,231,658 3,407,365 Research and development - - - 7,115 7,115 Service fees - 433,734 342,367 342,367 1,234,364 2,352,832 Interest - - 1,880,282 532,820 2,413,102 Depreciation and amortization 419 576,944 576,944 576,944 63,760 1,795,011 Marketing 1,673 3,909 3,909 3,909 4,183,395 4,196,795 Change in fair value of warrant liabilities - - - - (565,313 ) (565,313 ) Impairment of fixed assets - - - - - - Impairment of cryptocurrencies - - - - - - Other operating expenses 358,074 - - - 72,140 430,214 3,687,109 1,331,267 3,945,685 1,239,900 16,713,274 26,917,235 - Income (loss) from operations (1,116,614 ) 17,994,873 (6,288,080 ) (2,038,625 ) (14,377,545 ) (5,825,991 ) - Total segment assets 4,444,667 30,862,233 31,563,234 1,801,095 5,873,357 74,544,586 Futures and CFD TRS Other Total Year ended December 31, 2022 Revenues (Losses) $ 3,284,729 $ (6,694,312 ) $ (595,871 ) $ 1,522,954 $ (2,482,500 ) Commissions and fees 2,297,341 7,863 664,435 229,295 3,198,934 Compensation and benefits 953,213 - - 2,667,293 3,620,506 Occupancy - 3,600 3,600 819,054 826,254 Communication and technology 459,263 340,408 340,408 2,252,715 3,392,794 General and administrative 101,143 57,372 57,372 1,012,685 1,228,572 Crypto currencies - - - - - Professional fees 17,496 106,533 106,533 3,486,277 3,716,839 Research and development - - - 4,693,995 4,693,995 Service fees - 470,791 951,857 534,137 1,956,785 Interest - - 1,675,946 658,652 2,334,598 Depreciation and amortization 539 800,000 800,000 431,847 2,032,386 Marketing 3,185 54,000 54,000 3,632,382 3,743,567 Payment service charge - (78,562 ) 66,155 - (12,407 ) Change in fair value of warrant liabilities - - - (1,260,354 ) (1,260,354 ) Impairment of fixed assets - - - 1,690,028 1,690,028 Impairment of cryptocurrencies - - - 293,619 293,619 Other operating expenses 6,499 - - 25,907 32,406 3,838,679 1,762,005 4,720,306 21,167,532 31,488,522 Loss from operations $ (553,950 ) $ (8,456,317 ) $ (5,316,177 ) $ (19,644,578 ) $ (33,971,022 ) Total segment assets $ 11,388,786 $ 13,468,277 $ 43,725,609 $ 18,051,712 $ 86,634,384 Futures and CFD TRS Other Total Year ended December 31, 2021 Revenue $ 2,800,543 $ 8,700,009 $ 13,182,716 $ 309,444 $ 24,992,712 Commissions and fees 2,037,619 63,654 1,031,416 185,003 3,317,692 Compensation and benefits 1,083,943 - - 2,985,260 4,069,203 Occupancy - 3,900 3,900 771,081 778,881 Communication and technology 437,629 418,227 698,262 375,863 1,929,981 General and administrative 89,040 393,005 78,616 1,455,921 2,016,582 Crypto currencies - - - 1,163,846 1,163,846 Professional fees 14,281 136,755 136,755 3,549,026 3,836,817 Research and development - - - 1,205,040 1,205,040 Service fees - 449,765 2,730,596 394,218 3,574,579 Interest - - 804,621 803,479 1,608,100 Depreciation and amortization 2,027 640,326 93,007 181,556 916,916 Marketing 2,171 70,000 - 841,504 913,675 Payment service charge - (274,616 ) 93,367 - (181,249 ) Change in fair value of warrant liabilities - - - 470,804 470,804 Other operating expenses 1,224 79,934 - 63,017 144,175 3,667,934 1,980,950 5,670,540 14,445,618 25,765,042 Income (loss) from operations $ (867,391 ) $ 6,719,059 $ 7,512,176 $ (14,136,174 ) $ (772,330 ) Total segment assets $ 4,097,364 $ 12,028,984 $ 112,623,891 $ 20,166,592 $ 148,916,831 |
SPAC Warrants
SPAC Warrants | 12 Months Ended |
Dec. 31, 2023 | |
SPAC Warrants [Abstract] | |
SPAC Warrants | Note 20 — SPAC Warrants PAAC’s warrants (collectively, the “SPAC Warrants”), which include (i) 11,500,000 warrants, those warrants included in the units as part of initial public offering (the “IPO”) on June 3, 2019 (the “Public Warrants”), (ii) 5,375,000 warrants purchased by the founders of PAAC in a private placement simultaneously closed with PAAC’s IPO (the “Private Warrants”) and (iii) 920,000 warrants issued to the underwriters of PAAC’s IPO (the “Underwriters’ Warrants”). Subsequent to the business combination closing, all SPAC Warrants remained outstanding and none of them were exercised as of April 30, 2024. Public Warrants and Private Warrants Upon the business combination closing, each outstanding Public Warrants and Private Warrants of PAAC automatically represents the right to purchase one Class A ordinary share in the form of the Company’s 1/50 ADSs at a price of $11.50 per Class A ordinary share or $575.00 per ADS, subject to adjustment in the event of a share dividend, extraordinary dividend or our recapitalization, reorganization, merger or consolidation. However, the warrants will not be adjusted for issuances of Class A ordinary shares at a price below their respective exercise prices. Following the ADS ratio change in July 2023, holders may need to exercise warrants in increments of 50 to receive ADSs. However, no warrants issued in exchange for PAAC’s public warrants will be exercisable for cash unless the Company has an effective and current registration statement covering the Class A ordinary shares issuable upon exercise of the warrants and a current prospectus relating to such Class A ordinary shares. Notwithstanding the foregoing, warrant holders may, during any period when the Company shall have failed to maintain an effective registration statement, exercise warrants on a cashless basis in the same manner as if the Company called the warrants for redemption and required all holders to exercise their warrants on a “cashless basis.” The Company’s Public Warrants and Private Warrants became exercisable thirty (30) days after the closing and will expire on the fifth anniversary of the closing or earlier upon redemption or liquidation. The Company’s warrants issued in exchange for PAAC’s private warrants are identical to warrants issued in exchange for the PAAC’s public warrants, except that such private warrants will be exercisable for cash (even if a registration statement covering the Class A ordinary shares issuable upon exercise of such warrants is not effective) or on a cashless basis, at the holder’s option, and will not be redeemable by the Company, in each case so long as they are still held by PAAC’s initial purchasers or their affiliates. The Company may call the warrants for redemption (excluding the private warrants), in whole and not in part, at a price of $0.01 per warrant, ● at any time while the warrants are exercisable; ● upon not less than 30 days’ prior written notice of redemption to each warrant holder; ● if, and only if, the reported last sale price of the Company’s ADSs equals or exceeds $900.00 per ADS, for any 20 trading days within a 30-day trading period ending on the third business day prior to the notice of Redemption to warrant holders; and ● if, and only if, there is a current registration statement in effect with respect to the Class A ordinary shares underlying such warrants commencing five business days prior to the 30-day trading period and continuing each day thereafter until the date of redemption. If the Company calls the warrants for redemption as described above, management will have the option to require all holders that wish to exercise warrants to do so on a “cashless basis.” The Company evaluated the Public and Private Warrants under ASC 815-40, Derivatives and Hedging-Contracts in Entity’s Own Equity, and concluded that they do not meet the criteria to be classified in stockholders’ equity. Accordingly, the Public and Private Warrants are classified as a liability at fair value on the Company’s consolidated balance sheets at each period end, and the change in the fair value of such liability in each period is recognized as a gain or loss in the Company’s consolidated statements of operations and comprehensive income (loss). Because the Public Warrants were publicly traded and thus had an observable market price, fair value adjustments were determined by utilizing the market prices whereas the Private Warrants were valued using a binomial option pricing model as described in Note 5 to the consolidated financial statements. The changes in the fair value of the warrants may be material to our future operating results. Underwriters’ Warrants The Underwriters’ Warrants may be exercised for cash or on a cashless basis at $12.00 per Class A ordinary share, at the holder’s option, at any time during the period commencing on the later of the first anniversary of the effective date of the registration statement of which this prospectus forms a part and the closing of our initial business combination and terminating on the fifth anniversary of such effectiveness date. Such warrants may not be sold, transferred, assigned, pledged or hypothecated for a period of 360 days immediately following the effective date of the PAAC’s registration statement. After 360 days after the effective date, transfers to others may be made subject to compliance with or exemptions from applicable securities laws. The Company will have no obligation to net cash settle the exercise of the warrants. The exercise price and number of shares of common stock issuable upon exercise of the warrants may be adjusted in certain circumstances including in the event of a stock dividend, or our recapitalization, reorganization, merger or consolidation. The Company evaluated the Underwriters’ Warrants under ASC 815-40, Derivatives and Hedging-Contracts in Entity’s Own Equity, and concluded that they meet the criteria to be classified in stockholders’ equity as additional paid in capital. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 21 — Subsequent Events In accordance with ASC Topic 855, “Subsequent Events”, which establishes general standards of accounting for and disclosure of events that occur after the balance sheet date but before the financial statements are issued. The Company has evaluated all events or transactions that occurred after December 31, 2023, up through April 30, 2024, the date the Company issued the consolidated financial statements and concluded that no other material subsequent events except for the disclosed below: On January 23, 2024, the Company entered into a second letter agreement (“January 2024 Letter Agreement”) with the investor, wherein the investor agreed to exercise its purchase option to purchase an additional $1,000,000 debenture pursuant to the August 2022 SPA. Pursuant to the January 2024 Letter Agreement, the Company issued a Series I ADS Purchase Warrant (the “Series I Warrants”) to purchase up to 8,850 ADSs with an exercise price equal to $1.13 per ADS and having a term of exercise expiring five years after the issuance. On the same date, the Company received net proceeds of $940,000 (the “Fourth Closing’) in consideration of the issuance of Convertible Debenture (the “January 2024 Debenture”) in the principal amount of $1,000,000. January 2024 Debenture shares the same terms with the August 2022, December 2022 and September 2023 Debentures. |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Significant Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation These consolidated financial statements are prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) and have been prepared in accordance with the regulations of the Securities and Exchange Commission (“SEC”). |
Emerging Growth Company Status | Emerging Growth Company Status The Company is an “emerging growth company,” as defined in Section 2(a) of the Securities Act of 1933, as amended, (the “Securities Act”), as modified by the Jumpstart our Business Startups Act of 2012, (the “JOBS Act”), and it may take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not emerging growth companies including, but not limited to, not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act, reduced disclosure obligations regarding executive compensation in its periodic reports and proxy statements, and exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and stockholder approval of any golden parachute payments not previously approved. Further, Section 102(b)(1) of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial accounting standards until private companies (that is, those that have not had a Securities Act registration statement declared effective or do not have a class of securities registered under the Exchange Act) are required to comply with the new or revised financial accounting standards. The JOBS Act provides that a company can elect to opt out of the extended transition period and comply with the requirements that apply to non-emerging growth companies but any such election to opt out is irrevocable. The Company has elected not to opt out of such extended transition period which means that when a standard is issued or revised and it has different application dates for public or private companies, the Company, as an emerging growth company, can adopt the new or revised standard at the time private companies adopt the new or revised standard. This may make comparison of the Company’s financial statements with another public company which is neither an emerging growth company nor an emerging growth company which has opted out of using the extended transition period difficult or impossible because of the potential differences in accounting standards used. |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of the Company, and its subsidiaries in which it has a controlling financial interest. A subsidiary is an entity (including a structured entity), directly or indirectly, controlled by the Company. The financial statements of the subsidiaries are prepared for the same reporting period as the Company, using consistent accounting policies. All intra-group assets and liabilities, equity, income, expenses and cash flows relating to transactions between members of the Group are eliminated in consolidation. The Group consolidates the loss of the subsidiaries and subtracts the net loss that is attributable to the non-controlling interest holders in calculating the net income (loss) that is attributable to the Group. |
Translation of Foreign Currencies | Translation of Foreign Currencies The functional currency is the U.S. dollar for the Group’s Cayman Island operations, Singapore dollars for Singapore entity, and the Hong Kong dollar for all other Group operations. The Group’s reporting currency is the U.S. dollar. Assets and liabilities denominated in foreign currencies are translated at year-end exchange rates, income statement accounts are translated at average rates of exchange for the year and equity is translated at historical exchange rates. Any translation gains or losses are recorded in other comprehensive income (loss). Gains or losses resulting from foreign currency transactions are included in net income (loss). |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities as of the date of the consolidated financial statements as well as the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. |
Current Expected Credit Losses | Current Expected Credit Losses On January 1, 2023, the Group adopted FASB ASC Topic 326 – “Financial Instruments – Credit Losses” (“ASC Topic 326”) which replaces the incurred loss methodology with the current expected credit loss (“CECL”) methodology. The guidance applies to financial assets measured at amortized cost, held-to-maturity debt securities and off-balance sheet credit exposures. For on-balance sheet assets, an allowance must be recognized at the origination or purchase of in-scope assets and represents the expected credit losses over the contractual life of those assets. The Group adopted ASC Topic 326 using the modified retrospective approach for all in-scope assets, which did not result in an adjustment to the opening balance in accumulated deficits. The impact to the current period is not material since the Group’s in-scope assets are primarily receivables from broker-dealers and clearing organizations, the management considers that these receivables have a low risk of default and the counterparties have a strong capacity to meet their contractual obligation. An allowance for credit losses on other financial assets, including receivables from clients (commissions receivable), other receivable and various deposits due from vendors which were included in prepaids, deposits and other and other assets, is estimated based on the aging of these financial assets. The settlement periods of commissions receivable are usually short and within one month, the credit risk arising from receivables from clients is considered low. Other receivables and the deposits with various vendors were not material to the consolidated financial statements taken as a whole and historically the Group has not recorded an allowance for credit losses on their deposits. As a result, the allowance for credit losses for other financial assets were immaterial for current period. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents consist of deposits with banks and all highly liquid investments, with maturities of three months or less, that are not segregated and deposited for regulatory purposes. The Group does not have any cash equivalents as of December 31, 2023 and 2022. The Group maintains its cash in bank deposit accounts which at times may exceed insured limits. The Group has not experienced any losses in such accounts. The Group only has one bank account with U.S. bank subject to FDIC insurance and its balance is immaterial. Management believes that the Group is not exposed to any significant credit risk on cash and cash equivalents. |
Restricted Cash — Bank Balances Held on Behalf of Customers | Restricted Cash — Bank Balances Held on Behalf of Customers The Group maintains segregated trust accounts with licensed banks or payment platforms to hold customer funds in accordance with the relevant legislation. The Group has classified customer funds as bank balances held on behalf of customers with a corresponding payable to customers in the liabilities section of the consolidated balance sheets. |
Securities Owned and Derivatives | Securities Owned and Derivatives The Group’s proprietary trading securities transactions are recorded on the trade date, as if they had settled. Securities, futures and derivative positions are recorded at fair value in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 820 “Fair Value Measurements and Disclosures” (“ASC 820”). |
Receivables | Receivables Receivables arise from the business of dealing in investment securities, futures and derivatives and include the amounts due on brokerage transactions on a trade-date basis. Broker-dealers require balances to be placed with them in order to cover the positions taken by its customers. Clearing organizations receivables typically represent proceeds receivable on trades that have yet to settle and are usually collected within two days. Receivables from broker-dealers and clearing organizations as presented in the consolidated balance sheets represent such receivables related to the Group’s customer trading activities, including customers’ cash deposits, receivables arising from unsettled trades in securities, futures and CFD trading service, and receivables arising from the Group’s TRS trading service in an amount generally equal to the market value of A-shares stock. Commissions receivable represent commissions due from trading activities and from insurance providers once referrals have been made and the transactions have been executed under the terms of the relevant insurance policy or subscription agreement. As of December 31, 2023 and 2022, commissions receivable amounted to $7,919 and $35,805, respectively, are included in the line item “prepaids, deposits and other” in the consolidated balance sheets. |
Crypto Currencies | Crypto Currencies The following table presents the activities of the crypto currencies for the years ended December 31, 2023, 2022 and 2021: BNB Crypto currencies at January 1, 2023 $ 144,423 Additions of crypto currencies - Realized gain on sale of crypto currencies 89,649 Impairment of crypto currencies - Sale of crypto currencies (229,000 ) Crypto currencies at December 31, 2023 (4) $ 5,072 BNB and Crypto currencies at January 1, 2022 $ - Additions of crypto currencies (1) 438,042 Realized gain on sale of crypto currencies - Impairment of crypto currencies (293,619 ) Sale of crypto currencies - Crypto currencies at December 31, 2022 (4) $ 144,423 Bitcoins Crypto currencies at January 1, 2021 $ - Additions of crypto currencies (2) 1,708,753 Realized gain on sale of crypto currencies 17,496 Impairment of crypto currencies (3) - Sale of crypto currencies (1,726,249 ) Crypto currencies at December 31, 2021 (4) $ - (1) Binance Coin (“BNB”) and Wrapped BNB (“WBNB”) obtained from the sales of NFTs. The Group collected in an aggregate of approximately US$438,000 at the spot token price upon the completion of the sale of NFTs. As of December 31, 2022, the Group recorded an impairment charge of approximately US$294,000. (2) Bitcoins obtained from the crypto currency mining activities. (3) The Group did not recognize impairment loss on crypto currencies during the year ended December 31, 2021 as the crypto currencies were converted to stable coins shortly after the consideration was received and all stable coins were liquidated before the year end. (4) The balance was included in the line item “other assets” in the consolidated balance sheets as of December 31, 2023 and 2022. |
Cryptocurrency Mining Machines | Cryptocurrency Mining Machines Management has assessed the basis of depreciation of the Group’s cryptocurrency mining machines used to verify crypto currency transactions and generate crypto currencies and believes they should be depreciated over a 3-year period. The rate at which the Group generates digital assets and, therefore, consumes the economic benefits of its transaction verification servers are influenced by a number of factors including the following: ● the complexity of the transaction verification process which is driven by the algorithms contained within the bitcoin open source software; ● the general availability of appropriate computer processing capacity on a global basis (commonly referred to in the industry as hashing capacity which is measured in Petahash units); and ● technological obsolescence reflecting rapid development in the transaction verification server industry such that more recently developed hardware is more economically efficient to run in terms of digital assets generated as a function of operating costs, primarily power costs i.e. the speed of hardware evolution in the industry is such that later hardware models generally have faster processing capacity combined with lower operating costs and a lower cost of purchase. The Group operates in an emerging industry for which limited data is available to make estimates of the useful economic lives of specialized equipment. Property and equipment are stated at cost, net of accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the assets. This assessment takes into consideration the management’s expectations regarding the direction of the industry including potential changes in technology. To the extent that any of the assumptions underlying management’s estimate of useful life of its transaction verification servers are subject to revision in a future reporting period either as a result of changes in circumstances or through the availability of greater quantities of data then the estimated useful life could change and have a prospective impact on depreciation expense and the carrying amounts of these assets. During the year ended December 31, 2022, the Company fully impaired and disposed of the mining equipment in an amount of approximately $1.7 million, resulting from the stumbled Bitcoin price and the change in the regulatory environment in the PRC. |
Prepaids Deposits And Other [Policy Text Block] | Prepaids, deposits and other Prepaids, deposits and other consists of prepaid services, insurance, stock-based compensations, commissions receivable and others. Balances of prepaids, deposits and other were $2,095,800 and $2,534,684 as of December 31, 2023 and 2022, respectively. |
NFT - Intangible assets | NFT - Intangible assets Due to the lack of physical substance, the Group considers MetaWords NFTs that the Group created meet the definition of intangible assets and would generally be accounted for under ASC 350 Intangibles — Goodwill and Other. The useful life is indefinite according to ASC 350-30-35-4. The Group understands that there is no clear guidance either authoritative or nonauthoritative on the accounting treatment of NFTs. The Group accounts for the initial recognition of NFTs on balance sheet based on the following guidance: ASC 350-30, General Intangibles Other Than Goodwill ASC 985-20, Software to be sold, leased, or otherwise marketed By analogy to the guidance above, capitalization of the costs commences on the establishment of technological feasibility (i.e. the completion of a working model) and ceases when the NFTs are made available for release to customers. Indefinite-lived intangible assets are not amortized. Instead, they are tested for impairment annually or upon a triggering event that indicates it is more likely than not that the asset is impaired. The impairment test under ASC 350 is a one-step test that compares the fair value of the intangible asset with its carrying value. If the fair value is less than the carrying value, an impairment is recorded. Once the intangible asset is impaired, the impairment loss is not reversed if the fair value subsequently increases. As of December 31, 2022, the value of NFTs held on hand is immaterial to the consolidated financial statements taken as a whole. In accordance with the accounting policies mentioned above, the Group initially capitalized the costs of NFTs as intangible assets, which primarily included gas fees, blockchain transaction fees paid to network validators for their services, in an aggregate of less than $1,000, and subsequently determined to fully impair. Gas fees were paid by BNB tokens and measured at fair value of the tokens on the date paid. As a result, as of December 31, 2023 and 2022, the carrying value of NFTs included in intangible assets was zero. For NFTs held by users, the Group does not provide custody services either directly or indirectly, and neither it has control of these digital assets nor does it have any related liability, and as such are off-balance sheet in the Group’s consolidated financial statements. |
Fixed Assets, Net | Fixed Assets, Net Furniture, equipment, software and leasehold improvements are stated at cost less accumulated depreciation. Depreciation is provided on a straight-line basis using estimated useful lives of three ten |
Equity Investments Without Readily Determinable Fair Values | Equity Investments Without Readily Determinable Fair Values In accordance with ASC 321 Investment—Equity Securities, for those equity investments without readily determinable fair values, the Group elects to record these investments at cost, less impairment, and plus or minus subsequent adjustments for observable price changes. Under this measurement alternative, changes in the carrying value of the equity investment are required to be made whenever there are observable price changes in orderly transactions for the identical or similar investment of the same issuer. Pursuant to ASC 321, for those equity investments that the Group elects to use the measurement alternative, the Group makes a qualitative assessment of whether the investment is impaired at each reporting date. If a qualitative assessment indicates that the investment is impaired, the Group estimates the investment’s fair value in accordance with the principles of ASC 820. If the fair value is less than the investment’s carrying value, the Group recognizes an impairment loss equal to the difference between the carrying value and fair value. |
Impairment of Long-lived Assets | Impairment of Long-lived Assets Long-lived assets are evaluated for impairment whenever events or changes in circumstances (such as a significant adverse change to market conditions that will impact the future use of the assets) indicate that the carrying amount may not be fully recoverable or that the useful life is shorter than the Group had originally estimated. When these events occur, the Group evaluates the impairment by comparing carrying value of the assets to an estimate of future undiscounted cash flows expected to be generated from the use of the assets and their eventual disposition. If the sum of the expected future undiscounted cash flows is less than the carrying value of the assets, the Group recognizes an impairment loss based on the excess of the carrying value of the assets over the fair value of the assets. |
Other Assets | Other Assets Other assets are comprised primarily of the long-term portion of the value of January 2021 Call Options issued for service (see Note 14 for detail). |
Payables | Payables Payables arise from the business of dealing in investment securities, futures and derivatives. Payables to customers as presented in the consolidated balance sheets represent such payables related to the Group’s customer trading activities as well as cash balances held on behalf of customers. The Group borrows loans from business partners at benchmark interest rate plus a fixed spread, and immediately lends to TRS trading service customers. Net loans borrowed from TRS business partners are included in the line item “payables to broker-dealers and clearing organizations”. As of December 31, 2022, the balance of payables to broker-dealers and clearing organizations was primarily comprised of such net loans. The Group may purchase the stock option contracts from the third-party option issuers to reduce the potential loss on the options with the same underlying stocks sold to the customers. As of December 31, 2023, the balance of payables to broker-dealers and clearing organizations was primarily comprised of net loans mentioned above and payable to third-party option issuers. Commissions payable mainly represent amounts owed to referral sources of insurance brokerage business outside of the Group for transactions referred based on the terms of the underlying agreements. As of December 31, 2023 and 2022, commissions payable amounted to $35,321 and $47,359, respectively and are included in the line item “accrued expenses and other payables” in the consolidated balance sheets. |
Revenue Recognition | Revenue Recognition See Note 3 for details. |
Commissions and Fees | Commissions and Fees Commissions and fees related to securities, derivative and TRS trading transactions are recorded on a trade date basis. Commissions expense on insurance products are recognized on the closing date of a transaction as determined by the terms of the relevant contract and insurance policy. |
Convertible Securities, Warrants and Derivative Instruments | Convertible Securities, Warrants and Derivative Instruments The accounting treatment of warrants and convertible securities issued is determined pursuant to the guidance provided by ASC 470, Debt, ASC 480, Distinguishing Liabilities from Equity, and ASC 815, Derivatives and Hedging (“ASC 815”), as applicable. Each feature of freestanding financial instruments including, without limitation, any rights relating to subsequent dilutive issuances, equity sales, rights offerings, conversions, optional redemptions and dividends are assessed with determinations made regarding the proper classification in the Company’s consolidated financial statements. The Group evaluates all of its equity-linked financial instruments, including issued stock purchase warrants, to determine if such instruments are derivatives or contain features that qualify as embedded derivatives, pursuant to ASC 480 and ASC 815. The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity and whether embedded derivative shall be bifurcated from the host instrument and separately accounted for as a derivative, is reassessed at the end of each reporting period. Derivative assets and liabilities are recorded at fair value at inception and re-valued at each reporting date, with changes in the fair value reported in the consolidated statements of operations. On January 1, 2022, the Company early adopted Accounting Standards Update (“ASU”) ASU 2020-06, Debt – Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815-40) (“ASU 2020-06)”. The new ASU eliminates the beneficial conversion and cash conversion accounting models for convertible instruments. It also amends the accounting for certain contracts in an entity’s own equity that are currently accounted for as derivatives because of specific settlement provisions. In addition, the new guidance modifies how particular convertible instruments and certain contracts that may be settled in cash or shares impact the diluted EPS (as defined below) computation. The Company early adopted ASU 2020-06 in the first interim period of 2022 using the modified retrospective method which resulted in a reclassification of the unamortized portion of the beneficial conversion feature from additional paid-in capital to Series B Preferred shares on the consolidated balance sheets. |
Earnings (Loss) per Ordinary Share (“EPS”) | Earnings (Loss) per Ordinary Share (“EPS”) The Company complies with accounting and disclosure requirements ASC Topic 260, “Earnings Per Share”, which requires earnings per share for each class of stock (ordinary shares and participating securities) to be calculated using the two-class method. The two-class method is an allocation of earnings between the holders of ordinary shares and a company’s participating security holders. Under the two-class method, earnings for the reporting period are allocated between ordinary shareholders and other security holders based on their respective participation rights in undistributed earnings. As the Company’s two classes of ordinary shares have the same dividend rights, earnings (loss) per share for each class of ordinary shares have the same results. Basic earnings (loss) per ordinary share is computed by dividing net income or loss available to ordinary shareholders by the weighted average number of ordinary shares issued and outstanding for the periods. For the years ended December 31, 2021, the December 2020 Convertible Debenture (as discussed in Note 12) which was fully converted into the Company’s Class A ordinary shares, as represented by ADSs in the first half of 2021 and the December 2020 Series A Warrant (as discussed in Note 12) which was exercised into the Company’s Class A ordinary shares, as represented by ADSs in the first half of 2021, have the same dividend rights as the ordinary shares on an as-converted and as-exercised basis, and therefore qualify as participating securities for the period they were outstanding in accordance with ASC 260. The holders of December 2020 Convertible Debenture and Series A Warrant do not have a contractual obligation to share in the Company’s losses, therefore participating securities are excluded from the calculation of loss per share for the year ended December 31, 2021 in which there were losses available to ordinary shareholders. In accordance with ASC 260-10-45, the 3,867,481 Class B of earnout escrow shares in connection with the business combination closed on June 16, 2020 are considered contingently returnable shares and therefore are excluded from the computation of basic earnings (loss) per share for all periods presented (on a retroactively adjusted basis). Since June 16, 2021, 50% of 1,933,740 Class B of indemnity escrow shares in connection with the business combination closed on June 16, 2020 was included in the computation of basic earnings (loss) per share and the remaining 50% was included starting from June 16, 2022. For purposes of determining diluted earnings (loss) per ordinary share, basic earnings (loss) per ordinary share is further adjusted to include the effect of potential dilutive ordinary shares outstanding during the period. Potential ordinary shares consist of the incremental ordinary shares upon exercise of warrants using the treasury stock method and upon conversion of convertible debt using the if-converted method. For the years ended December 31, 2023, 2022 and 2021, the following potential dilutive securities denominated in Class A ordinary shares equivalents were excluded for the periods they were outstanding from the computation of diluted earnings (loss) per share because to do so would have been antidilutive. As a result, diluted earnings (loss) per ordinary share is the same as basic earnings (loss) per ordinary share for all periods presented. Year Ended December 31, 2023 2022 2021 SPAC Warrants See Note 20 17,795,000 17,795,000 17,795,000 August 2020 PIPE Warrants See Note 14 729,167 729,167 1,500,000 December 2020 Convertible Debenture See Note 12 — — 800,000 December 2020 Warrants See Note 12 — — 13,700,000 January 2021 Call Options See Note 14 — 4,000,000 6,000,000 Series A Convertible Preferred Shares See Note 13 — — 2,333,333 February 2021 Warrants See Note 13 2,269,473,600 38,800,000 26,666,667 Series B Convertible Preferred Shares See Note 13 — — 3,615,584 December 2021 Warrants See Note 13 150,375,950 2,285,715 2,285,715 August 2022 and December 2022 Convertible Debentures See Note 12 — 5,200,000 — September 2023 Convertible Debenture See Note 12 2,000,000 — — Series H Warrants See Note 12 657,900 — — Subsequently, an aggregate of approximately 71.2 million Class A ordinary shares were issued resulting from the conversion of the September 2023 Convertible Debenture. |
Non-controlling Interests | Non-controlling Interests Non-controlling interests are presented in the consolidated balance sheets, separately from equity attributable to the shareholders of the Group. Income attributable to non-controlling interests’ holders is presented on the consolidated statements of operations and the consolidated statements of comprehensive income (loss) as an allocation of the total income for the periods between non-controlling interests holders and the shareholders of the Group. Under ASC 810-10-15-10(a), Consolidation, all majority-owned subsidiaries (i.e., all companies in which a parent has a controlling financial interest through direct or indirect ownership of a majority voting interest) must be consolidated unless control does not rest with the majority owner. The Group owns 50% of Lion Metaverse Limited (“LML”) and controls the board of directors. Therefore, the Group has a controlling financial interest in LML and LML is consolidated in the consolidated financial statements. On May 7, 2021, Lion NFT Limited (“LNFT”) was formed by Lion Financial Group Limited (“LFGL”) and three other shareholders in British Virgin Islands. LFGL owned 60% of equity interest of LNFT upon incorporation. During the year ended December 31, 2021, LNFT borrowed a total of $600,000 from its shareholders in the form of shareholder loans. On October 8, 2021, LFGL acquired 30% additional equity interest in LNFT for a total cash consideration of $200,000 from two of the minority shareholders. In May 2021, the Group, partnered with Grandshores Technology Group Limited (“Grandshores”), and formed Aquarius II Sponsor Ltd. (“Sponsor”). The Group owns 51% of Sponsor and consolidated it in the consolidated financial statements. In 2022, Grandshores made a contribution in the amount of $1,713,775. In 2023, the Sponsor repaid the full amount to Grandshores. In March 2023, Silver Leaf Asset Management Co., Ltd. (“SLAMCo.”) made a cash contribution in the amount of $178,916 in exchange for 49% interest in LAML, which was recorded in noncontrolling interests, with no gain or loss recognized in the consolidated financial statements. Subsequently in 2023, SLAMCo made additional capital contributions totaled $257,405, in proportion to contributions from LAML’s parent company. |
Reclassification | Reclassification Certain prior periods amounts have been reclassified to be comparable to the current period presentation. The reclassification has no effect on previously reported net assets or net income (loss). |
Stock-based Compensation | Stock-based Compensation The Group applies ASC No. 718, “Compensation-Stock Compensation”, which requires that share-based payment transactions with employees and nonemployees upon adoption of ASU 2018-07, be measured based on the grant date fair value of the equity instrument and recognized as compensation expense over the requisite service period, with a corresponding addition to equity. Under this method, compensation cost related to employee share options or similar equity instruments is measured at the grant date based on the fair value of the award and is recognized over the period during which an employee is required to provide service in exchange for the award, which generally is the vesting period. The fair value of the Group’s ordinary shares underlying stock-based awards based on the closing price of the Group’s shares as reported by Nasdaq on the date of grant. The Company values its stock options or warrants that have service vesting requirements or performance-based awards with or without market conditions using the Binomial Option Pricing Model. |
Research and Development Expenses | Research and Development Expenses Research and development expenses are expensed in the period when incurred. These costs primarily consist of designing, coding, project management, and other IT services related to developing and enhancing the project. |
Income Taxes | Income Taxes The amount of current taxes payable or refundable is recognized as of the date of the consolidated financial statements, utilizing currently enacted tax laws and rates of the relevant authorities. Deferred income taxes are recognized for temporary differences between the tax basis of assets and liabilities and their reported amounts in the consolidated financial statements, net operating loss carry forwards and tax credits based on applicable tax rates. Deferred tax assets are reduced by a valuation allowance when management determines that it is more likely than not that some portion of the deferred tax asset will not be realized. Deferred tax expenses or benefits are recognized in the consolidated financial statements for the changes in deferred tax liabilities or assets between years. The Group recognizes the effect of income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount that is greater than 50 percent likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. The Group presents any interest or penalties related to an underpayment of income taxes as part of its income tax expense in the consolidated statements of operations. There is currently no taxation imposed on income by the Government of the Cayman Islands. In accordance with Cayman income tax regulations, income taxes are not levied on the Company. Consequently, income taxes are not reflected in the Company’s financial statements. The Company may be subject to potential examination by foreign taxing authorities in the area of income taxes. These potential examinations may include questioning the timing and amount of deductions, the nexus of income among various tax jurisdictions and compliance with foreign tax laws. |
Leases | Leases On January 1, 2022, the Group adopted FASB ASC Topic 842, “Leases,” (“ASC Topic 842”) which requires that a lessee recognize in the consolidated balance sheets a lease liability and a corresponding right-of-use asset, including for those leases that the Group currently classifies as operating leases. The right-of-use asset and the lease liability was initially measured using the present value of the remaining lease payments. ASC Topic 842 was implemented using a modified retrospective approach which resulted in no cumulative-effect adjustment in the opening balance of retained earnings as of January 1, 2022. As a result, the consolidated balance sheet prior to January 1, 2022 was not restated and continues to be reported under FASB ASC Topic 840, “Leases,” (“ASC Topic 840”), which did not require the recognition of a right-of-use asset or lease liability for operating leases. The Group reviews all relevant contracts to determine if the contract contains a lease at its inception date. A contract contains a lease if the contract conveys to the Group the right to control the use of an underlying asset for a period of time in exchange for consideration. If the Group determines that a contract contains a lease, it recognizes, in the consolidated balance sheets, a lease liability and a corresponding right-of-use asset on the commencement date of the lease. The lease liability is initially measured at the present value of the future lease payments over the lease term using the rate implicit in the lease or, if not readily determinable, the Group’s secured incremental borrowing rate. An operating lease right-of-use asset is initially measured at the value of the lease liability minus any lease incentives and initial direct costs incurred plus any prepaid rent. Each lease liability is measured using the Group’s secured incremental borrowing rate. The Group’s leases have remaining terms of one to two years, and some of which include options to terminate the lease upon notice. The Group considers these options when determining the lease term used to calculate the right-of-use asset and the lease liability when the Group is reasonably certain it will exercise such option. The Group’s operating leases contain both lease components and non-lease components. Non-lease components are distinct elements of a contract that are not related to securing the use of the underlying assets, such as common area maintenance and other management costs. The Group elected to measure the lease liability by combining the lease and non-lease components as a single lease component. As such, the Group includes the fixed payments and any payments that depend on a rate or index that relate to the lease and non-lease components in the measurement of the lease liability. Some of the non-lease components are variable in nature and not based on an index or rate, and as a result, are not included in the measurement of the operating lease right-of-use assets or operating lease liability. Operating lease expense is recognized on a straight-line basis over the lease term and is included in occupancy expenses in the Group’s consolidated statements of comprehensive income. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In June 2022, the Financial Accounting Standards Board (“FASB”) issued ASU 2022-03, Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures In December 2023, the FASB issued ASU No. 2023-08, Intangibles—Goodwill and Other—Crypto Assets (Subtopic 350-60): Accounting for and Disclosure of Crypto Assets, In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures |
Organization and Principal Ac_2
Organization and Principal Activities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Organization and Principal Activities [Abstract] | |
Schedule of Subsidiaries | Details of the Company’s subsidiaries as of December 31, 2023 are as follows: Company name Date of Place of Ownership Principal Lion Financial Group Limited June 16, 2015 British Virgin Islands 100% Investment holding Lion Wealth Management Limited February 16, 2017 British Virgin Islands 100% Investment holding Lion International Securities Group Limited May 20, 2016 Hong Kong 100% Securities brokerage Lion Futures Limited May 20, 2016 Hong Kong 100% Futures brokerage Lion Investment (Hong Kong) Limited (F/K/A Lion Foreign Exchange Limited) May 20, 2016 Hong Kong 100% Dormant Lion Asset Management Limited (F/K/A Lion Capital Management Limited) (“LAML”) May 20, 2016 Hong Kong 51% Asset management BC Wealth Management Limited October 14, 2014 Hong Kong 100% Insurance brokerage Lion Wealth Limited (“LWL”) October 4, 2018 Hong Kong 100% Marketing and support service Lion Brokers Limited March 30, 2017 Cayman Islands 100% Broker dealer and market maker Lion International Financial (Singapore) Pte. LTD. July 26,2019 Singapore 100% Dormant Lion Group North America Corp. (F/K/A Proficient Alpha Acquisition Corp.) June 16, 2020 Nevada, USA 100% Dormant Lion Fintech Group Limited April 13, 2021 British Virgin Islands 100% Investment holding Royal Lion Investment Limited April 13, 2021 Cayman Islands 70% Investment holding Royal Lion Middle East DMCC April 13, 2021 Dubai 70% Dormant Lion Workshop Ltd. (F/K/A Skyline Legend Ltd.) April 26, 2021 British Virgin Islands 100% Dormant Lion NFT Limited May 7, 2021 British Virgin Islands 90% Investment and innovation in digital assets Flying Lion Limited June 17, 2021 Cayman Islands 70% Investment and innovation in digital assets Aquarius Sponsor Ltd. April 12, 2021 British Virgin Islands 51% Investment holding Aquarius II Sponsor Ltd. May 4, 2021 British Virgin Islands 51% Investment holding Aquarius I Acquisition Corp. April 15, 2021 Cayman Islands 94% Special purpose acquisition company Aquarius II Acquisition Corp. May 5, 2021 Cayman Islands 93% Special purpose acquisition company Lion Metaverse Limited October 26, 2021 British Virgin Islands 50% Technology development Lion Multi-Series Fund SPC December 3, 2021 Cayman Islands 100% Assets management Lion Silver Capital Limited February 24, 2022 British Virgin Islands 51% Assets management |
Significant Accounting Polici_2
Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Significant Accounting Policies [Abstract] | |
Schedule of Crypto Currencies | The following table presents the activities of the crypto currencies for the years ended December 31, 2023, 2022 and 2021: BNB Crypto currencies at January 1, 2023 $ 144,423 Additions of crypto currencies - Realized gain on sale of crypto currencies 89,649 Impairment of crypto currencies - Sale of crypto currencies (229,000 ) Crypto currencies at December 31, 2023 (4) $ 5,072 BNB and Crypto currencies at January 1, 2022 $ - Additions of crypto currencies (1) 438,042 Realized gain on sale of crypto currencies - Impairment of crypto currencies (293,619 ) Sale of crypto currencies - Crypto currencies at December 31, 2022 (4) $ 144,423 Bitcoins Crypto currencies at January 1, 2021 $ - Additions of crypto currencies (2) 1,708,753 Realized gain on sale of crypto currencies 17,496 Impairment of crypto currencies (3) - Sale of crypto currencies (1,726,249 ) Crypto currencies at December 31, 2021 (4) $ - (1) Binance Coin (“BNB”) and Wrapped BNB (“WBNB”) obtained from the sales of NFTs. The Group collected in an aggregate of approximately US$438,000 at the spot token price upon the completion of the sale of NFTs. As of December 31, 2022, the Group recorded an impairment charge of approximately US$294,000. (2) Bitcoins obtained from the crypto currency mining activities. (3) The Group did not recognize impairment loss on crypto currencies during the year ended December 31, 2021 as the crypto currencies were converted to stable coins shortly after the consideration was received and all stable coins were liquidated before the year end. (4) The balance was included in the line item “other assets” in the consolidated balance sheets as of December 31, 2023 and 2022. |
Schedule of Diluted Earnings (Loss) per Ordinary Share | For the years ended December 31, 2023, 2022 and 2021, the following potential dilutive securities denominated in Class A ordinary shares equivalents were excluded for the periods they were outstanding from the computation of diluted earnings (loss) per share because to do so would have been antidilutive. As a result, diluted earnings (loss) per ordinary share is the same as basic earnings (loss) per ordinary share for all periods presented. Year Ended December 31, 2023 2022 2021 SPAC Warrants See Note 20 17,795,000 17,795,000 17,795,000 August 2020 PIPE Warrants See Note 14 729,167 729,167 1,500,000 December 2020 Convertible Debenture See Note 12 — — 800,000 December 2020 Warrants See Note 12 — — 13,700,000 January 2021 Call Options See Note 14 — 4,000,000 6,000,000 Series A Convertible Preferred Shares See Note 13 — — 2,333,333 February 2021 Warrants See Note 13 2,269,473,600 38,800,000 26,666,667 Series B Convertible Preferred Shares See Note 13 — — 3,615,584 December 2021 Warrants See Note 13 150,375,950 2,285,715 2,285,715 August 2022 and December 2022 Convertible Debentures See Note 12 — 5,200,000 — September 2023 Convertible Debenture See Note 12 2,000,000 — — Series H Warrants See Note 12 657,900 — — |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Revenue Recognition [Abstract] | |
Schedule of Revenue from Contracts with Customers | The following table presents revenue from contracts with customers, in accordance with ASC Topic 606, by major source and geographic region: Year Ended December 31, 2023 2022 2021 Insurance brokerage commissions $ 1,169,306 $ 455,394 $ 542,795 Securities brokerage commissions 2,732,846 3,412,644 3,188,684 Market making commissions and fees 3,121,661 781,878 4,324,650 Sale of NFTs - 438,041 - Cryptocurrency mining - - 1,726,249 Total revenue from contracts with customers $ 7,023,813 $ 5,087,957 $ 9,782,378 Hong Kong 3,902,152 3,868,038 5,457,728 Cayman Islands 3,121,661 1,219,919 4,324,650 $ 7,023,813 $ 5,087,957 $ 9,782,378 |
Schedule of Trading Gains (losses) Breakdown | The following table represents trading gains (losses) breakdown: Year ended December 31, 2023 2022 2021 CFD trading gains/(losses) $ 16,204,480 $ (7,476,190 ) $ 4,374,807 TRS trading gains/(losses) (5,076,247 ) (3,913,422 ) 10,523,974 OTC stock option trading gains/(losses) (798,725 ) 937,109 (199,624 ) Other trading gains/(losses) 149,996 (1,015,466 ) (1,320,011 ) Total $ 10,479,504 $ (11,467,969 ) $ 13,379,146 Year ended December 31, Line Item in Consolidated Statements of Operations and Comprehensive Income (Loss) 2023 2022 2021 Trading gains (losses) $ 10,479,504 $ (11,467,969 ) $ 13,379,146 |
Schedule of Consolidated Statements of Operations and Comprehensive Income (loss) | The following table represents the effect of trading activities on the consolidated statements of operations and comprehensive income (loss): Year ended December 31, Type of Instrument 2023 2022 2021 Foreign Currency $ - $ (310 ) $ 1,454 Stock Indices 18,663,955 (7,175,826 ) 4,879,459 Commodities (2,459,475 ) (300,054 ) (506,106 ) Equity (5,724,976 ) (3,991,779 ) 9,004,339 $ 10,479,504 $ (11,467,969 ) $ 13,379,146 |
Cash and Restricted Cash (Table
Cash and Restricted Cash (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Cash and Restricted Cash [Abstract] | |
Schedule of Cash and Restricted Cash | The following table provides a reconciliation of cash and restricted cash reported within the consolidated balance sheets and statements of cash flows. December 31, 2023 2022 2021 Cash $ 28,953,780 $ 11,159,610 $ 15,098,151 Restricted Cash 2,142,615 3,242,989 653,324 Total cash and restricted cash presented in the consolidated statement of cash flows $ 31,096,395 $ 14,402,599 $ 15,751,475 |
Fair Value (Tables)
Fair Value (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value [Abstract] | |
Schedule of Significant Assumptions Which the Group Used to Value | The significant assumptions which the Group used to value the options in the Black-Sholes-Merton pricing model are as below. There were no outstanding options as of December 31, 2022. December 31, Underlying stock price $ 0.19 ~ 15.89 Exercise price $ 0.20 ~ 17.46 Expected term in years 0.01 ~ 0.22 Expected dividend yield 0 % Volatility 14% ~ 98 % Risk-free interest Rate 3 % December 31, 2023 2022 Stock price $ 1.35 $ 35.75 Exercise price $ 575 $ 575 Expected term in years 1.46 2.46 Expected dividend yield 0 % 0 % Volatility 261.88 % 96.42 % Risk-free interest Rate 4.29 % 4.44 % |
Schedule of Fair Value Hierarchy for those Assets and Liabilities Measured at Fair Value on a Recurring Basis | Quoted Prices in Active Markets for Significant Significant Identical Observable Unobservable Assets Inputs Inputs (Level 1) (Level 2) (Level 3) Total Assets Listed equity securities $ 4,522,805 $ - $ - $ 4,522,805 Option assets - 1,801,095 - 1,801,095 $ 4,522,805 $ 1,801,095 $ - $ 6,323,900 Liabilities Embedded derivative liabilities $ - $ (878,420 ) $ - $ (878,420 ) Option liabilities - (3,009,166 ) - (3,009,166 ) Warrant liabilities (74,750 ) (34,937 ) - (109,687 ) $ (74,750 ) $ (3,922,523 ) $ - $ (3,997,273 ) Quoted Prices Significant Significant (Level 1) (Level 2) (Level 3) Total Assets Listed equity securities $ 11,104,047 $ - - $ 11,104,047 $ 11,104,047 $ - $ - $ 11,104,047 Liabilities Embedded derivative liabilities $ - $ (2,292,056 ) $ - $ (2,292,056 ) Warrant liabilities (460,000 ) (215,000 ) - (675,000 ) $ (460,000 ) $ (2,507,056 ) $ - $ (2,967,056 ) |
Fixed Assets, Net (Tables)
Fixed Assets, Net (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Fixed Assets, Net [Abstract] | |
Schedule of Fixed Assets | Fixed assets consisted of the following as of December 31, 2023 and 2022: December 31, 2023 2022 Mining Machines $ - $ 2,585,119 Software 23,850,000 16,000,000 Leasehold improvement 38,522 38,329 Office and equipment 312,447 305,651 Total cost of fixed assets 24,200,969 18,929,099 Less: accumulated depreciation (4,356,573 ) (3,452,727 ) Less: impairment of mining machines - (1,690,028 ) Fixed assets, net $ 19,844,396 $ 13,786,344 |
Derivatives (Tables)
Derivatives (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Derivatives [Abstract] | |
Schedule of the Group’s Open Positions | A summary of the Group’s open positions at December 31, 2023 is as follows: Description Fair Value of Fair Value of Net Amount OTC stock option contracts $ 1,801,095 $ (3,009,166 ) $ (1,208,071 ) $ 1,801,095 $ (3,009,166 ) $ (1,208,071 ) Description Fair Value of Fair Value of Net Amount Stock Indices CFDs 54 - 54 $ 54 $ - $ 54 |
Convertible Debentures (Tables)
Convertible Debentures (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Convertible Debentures [Line Items] | |
Schedule of Convertible Debentures | December 31, Convertible Debentures 2023 2022 December 2020 Convertible Debenture $ - $ - May 2022 Convertible Debenture - - August 2022 Convertible Debenture - 2,238,897 December 2022 Convertible Debenture - 1,822,838 September 2023 Convertible Debenture 1,597,404 - $ 1,597,404 $ 4,061,735 December 31, Embedded Derivative Liability bifurcated from: 2023 2022 May 2022 Convertible Debenture $ - $ - August 2022 Convertible Debenture - 1,241,261 December 2022 Convertible Debenture - 1,050,795 September 2023 Convertible Debenture 878,420 - $ 878,420 $ 2,292,056 |
Convertible Debenture and Warrants [Member] | |
Convertible Debentures [Line Items] | |
Schedule of Assumptions Used to Measure the Fair Value of Warrants | The fair value of December 2020 Warrants is measured by using Binomial Option Pricing Model and Black-Scholes Merton Valuation Model with the assumptions below on the date of issuance, with no subsequent adjustment of fair value in accordance with ASC 815. Series A Series B Series C Expected term in years 7 2 7 Stock price (ADS) $ 116.00 $ 120.00 $ 120.00 Expected dividend yield 0 % 0 % 0 % Volatility 46.68 % 49.61 % 46.68 % Risk-free interest Rate 0.63 % 0.20 % 0.63 % Initial fair value per share $ 50.50 $ 29.00 $ 41.50 |
Convertible Preferred Shares _2
Convertible Preferred Shares and Attached Warrants (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Warrant [Member] | |
Convertible Preferred Shares and Attached Warrants (Tables) [Line Items] | |
Schedule of Adjustment of Fair Value in Accordance | Series D Series E Series F Expected term in years 5 1 5 Stock price (ADS) $ 148.50 $ 151.00 $ 148.50 Expected dividend yield 0 % 0 % 0 % Volatility 43.05 % 50.45 % 43.05 % Risk-free interest Rate 0.63 % 0.21 % 0.63 % Initial fair value per share $ 53.50 $ 26.50 $ 44.50 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Stock-Based Compensation [Abstract] | |
Schedule of Share-Based Payments | The following table provides the details of the total share-based payments under 2020 Plan and 2023 Plan during the years ended December 31, 2023, 2022, and 2021. Year ended December 31, 2023 2022 2021 Compensation and benefits $ 373,333 $ - $ - Communication and technology 225,000 225,000 - Marketing 206,250 206,250 - Professional fees 243,750 243,750 - General and administrative 243,750 243,750 - Total $ 1,292,083 $ 918,750 $ - |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Taxes [Abstract] | |
Schedule of Current and Deferred Portions of the Income Tax Expense | The current and deferred portions of the income tax expense included in the consolidated statements of operations and comprehensive income (loss) as determined in accordance with ASC 740, Income Taxes, are as follows: Year ended December 31, 2023 2022 2021 Current $ 1,058 $ 3,419 $ 53,239 Deferred - - 1,128 $ 1,058 $ 3,419 $ 54,367 |
Schedule of Reconciliation of the Difference Between the Expected Income Tax Expense | A reconciliation of the difference between the expected income tax expense or benefit computed at applicable statutory income tax rates and the Group’s income tax expense is shown in the following table: Year ended December 31, 2023 2022 2021 Income tax (benefit) expense at applicable statutory rate (1) $ (792,883 ) $ (5,199,883 ) $ 3,085 Nondeductible expenses 939,078 328,511 (398,706 ) Impact of foreign tax rate differential (2) (1,047,950 ) 3,117,801 (1,208,726 ) Current year change in valuation allowance (45,629 ) 1,804,389 1,606,803 Other (4,304 ) (47,399 ) (1,328 ) Prior year examination adjustment 952,746 - 53,239 Reported income taxes $ 1,058 $ 3,419 $ 54,367 (1) The applicable statutory rate applied is based on the profits tax rates in Hong Kong. Effective for tax years ended on or after December 31, 2018, the applicable tax rate was 8.25% on the first HK $2,000,000 of assessable profits and 16.5% on any assessable profits above that threshold. The 8.25% tax rate can only be utilized by one entity in a controlled group. All other Hong Kong entities in the Group utilize the 16.5% tax rate. The Singapore entity within the Group has an applicable tax rate of 17.0%. The entity in the United States within the Group has a federal tax rate of 21.0%. (2) The Group also has entities domiciled in the British Virgin Islands and the Cayman Islands, but such entities are not subject to income or capital gains taxes. |
Schedule of Deferred Tax Assets (Liabilities) | Significant components of the Group’s deferred tax assets (liabilities) are presented below: As of December 31, 2023 2022 Deferred tax asset Net operating loss carryforwards $ 4,906,816 $ 4,952,445 Less: Valuation allowance (4,906,816 ) (4,952,445 ) Net deferred tax asset $ - $ - |
Lease (Tables)
Lease (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Lease [Abstract] | |
Schedule of Consolidated Balance Sheets | The following table presents balances reported in the consolidated balance sheets related to the Group’s leases: As of December 31, 2023 2022 Operating lease right-of-use assets $ 593,678 $ 1,160,563 Operating lease liabilities $ 620,920 $ 1,220,236 |
Schedule of Consolidated Statements of Comprehensive (Loss)/Income | The following table presents operating lease cost reported in occupancy expenses on the consolidated statements of comprehensive (loss)/income related to the Group’s leases: Year ended December 31, 2023 2022 Operating lease cost $ 594,228 $ 699,909 |
Schedule of Present Value of Operating Lease Payments | The following table reconciles the undiscounted cash flows of the Group’s leases as of December 31, 2023 to the present value of its operating lease payments: Year ended 2024 $ 544,560 2025 83,130 Thereafter - Total undiscounted operating lease payments 627,690 Less: imputed interest (6,770 ) Present value of operating lease liabilities $ 620,920 |
Regulatory Requirements (Tables
Regulatory Requirements (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Regulatory Requirements [Abstract] | |
Schedule of Actual Amounts of Capital were Maintained | The following table illustrates the minimum regulatory capital as established by the Hong Kong Securities and Futures Commission, the Insurance Authority (Hong Kong), Monetary Authority of Singapore, and the Cayman Islands Monetary Authority (CIMA) that the Company’s subsidiaries were required to maintain as of December 31, 2023 and the actual amounts of capital that were maintained. Entity Name Minimum Capital Levels Excess Net Percent of Lion International Securities Group Limited $ 384,034 $ 1,191,452 $ 807,418 310 % Lion Futures Limited 384,034 1,105,705 721,671 288 % Lion Asset Management Limited 12,801 371,207 358,406 2900 % BC Wealth Management Limited 64,006 171,232 107,226 268 % Lion International Financial (Singapore) Pte. Ltd. 757,691 794,148 36,457 105 % Lion Broker Limited (Cayman) 5,555,528 18,036,054 12,480,526 325 % Total $ 7,158,093 $ 21,669,797 $ 14,511,704 303 % |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Operating Segments | Futures and securities OTC brokerage CFD TRS Stock option services trading trading trading Other Total Year ended December 31, 2023 Revenues (losses) 2,570,495 19,326,140 (2,342,395 ) (798,725 ) 2,335,729 21,091,244 Commissions and fees 1,606,210 - 825,503 - 986,685 3,418,398 Compensation and benefits 997,602 - - - 3,102,250 4,099,852 Occupancy - 7,120 7,120 7,120 848,894 870,254 Communication and technology 471,918 225,636 225,636 225,636 1,910,636 3,059,462 General and administrative 226,802 33,492 33,492 33,492 1,104,870 1,432,148 Crypto currencies - - - - - - Professional fees 24,411 50,432 50,432 50,432 3,231,658 3,407,365 Research and development - - - 7,115 7,115 Service fees - 433,734 342,367 342,367 1,234,364 2,352,832 Interest - - 1,880,282 532,820 2,413,102 Depreciation and amortization 419 576,944 576,944 576,944 63,760 1,795,011 Marketing 1,673 3,909 3,909 3,909 4,183,395 4,196,795 Change in fair value of warrant liabilities - - - - (565,313 ) (565,313 ) Impairment of fixed assets - - - - - - Impairment of cryptocurrencies - - - - - - Other operating expenses 358,074 - - - 72,140 430,214 3,687,109 1,331,267 3,945,685 1,239,900 16,713,274 26,917,235 - Income (loss) from operations (1,116,614 ) 17,994,873 (6,288,080 ) (2,038,625 ) (14,377,545 ) (5,825,991 ) - Total segment assets 4,444,667 30,862,233 31,563,234 1,801,095 5,873,357 74,544,586 Futures and CFD TRS Other Total Year ended December 31, 2022 Revenues (Losses) $ 3,284,729 $ (6,694,312 ) $ (595,871 ) $ 1,522,954 $ (2,482,500 ) Commissions and fees 2,297,341 7,863 664,435 229,295 3,198,934 Compensation and benefits 953,213 - - 2,667,293 3,620,506 Occupancy - 3,600 3,600 819,054 826,254 Communication and technology 459,263 340,408 340,408 2,252,715 3,392,794 General and administrative 101,143 57,372 57,372 1,012,685 1,228,572 Crypto currencies - - - - - Professional fees 17,496 106,533 106,533 3,486,277 3,716,839 Research and development - - - 4,693,995 4,693,995 Service fees - 470,791 951,857 534,137 1,956,785 Interest - - 1,675,946 658,652 2,334,598 Depreciation and amortization 539 800,000 800,000 431,847 2,032,386 Marketing 3,185 54,000 54,000 3,632,382 3,743,567 Payment service charge - (78,562 ) 66,155 - (12,407 ) Change in fair value of warrant liabilities - - - (1,260,354 ) (1,260,354 ) Impairment of fixed assets - - - 1,690,028 1,690,028 Impairment of cryptocurrencies - - - 293,619 293,619 Other operating expenses 6,499 - - 25,907 32,406 3,838,679 1,762,005 4,720,306 21,167,532 31,488,522 Loss from operations $ (553,950 ) $ (8,456,317 ) $ (5,316,177 ) $ (19,644,578 ) $ (33,971,022 ) Total segment assets $ 11,388,786 $ 13,468,277 $ 43,725,609 $ 18,051,712 $ 86,634,384 Futures and CFD TRS Other Total Year ended December 31, 2021 Revenue $ 2,800,543 $ 8,700,009 $ 13,182,716 $ 309,444 $ 24,992,712 Commissions and fees 2,037,619 63,654 1,031,416 185,003 3,317,692 Compensation and benefits 1,083,943 - - 2,985,260 4,069,203 Occupancy - 3,900 3,900 771,081 778,881 Communication and technology 437,629 418,227 698,262 375,863 1,929,981 General and administrative 89,040 393,005 78,616 1,455,921 2,016,582 Crypto currencies - - - 1,163,846 1,163,846 Professional fees 14,281 136,755 136,755 3,549,026 3,836,817 Research and development - - - 1,205,040 1,205,040 Service fees - 449,765 2,730,596 394,218 3,574,579 Interest - - 804,621 803,479 1,608,100 Depreciation and amortization 2,027 640,326 93,007 181,556 916,916 Marketing 2,171 70,000 - 841,504 913,675 Payment service charge - (274,616 ) 93,367 - (181,249 ) Change in fair value of warrant liabilities - - - 470,804 470,804 Other operating expenses 1,224 79,934 - 63,017 144,175 3,667,934 1,980,950 5,670,540 14,445,618 25,765,042 Income (loss) from operations $ (867,391 ) $ 6,719,059 $ 7,512,176 $ (14,136,174 ) $ (772,330 ) Total segment assets $ 4,097,364 $ 12,028,984 $ 112,623,891 $ 20,166,592 $ 148,916,831 |
Organization and Principal Ac_3
Organization and Principal Activities (Details) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Organization and Principal Activities [Line Items] | |||
Earnout escrow shares, description | The Group is currently offering A-shares (shares that are denominated in Renminbi and traded in the Shanghai Stock Exchange and Shenzhen Stock Exchange) and Hong Kong stock basket linked TRS, which provides international investors seeking to invest in the China stock market with higher leverage compared with buying A-share stocks directly. | ||
Percentage of total revenue | 10% | 10% | 10% |
Percentage of total commissions expense | 47% | 72% | 61% |
Insurance brokerage sales, description | For the years ended December 31, 2023, 2022, and 2021, the Group placed 36% (1% of total revenue in 2023), 79% (13% of total loss in 2022), and 77% (2% of total revenue in 2021), respectively, of its insurance brokerage sales with one insurance provider. | ||
Group placed percentage | 36% | 79% | 77% |
Total revenue | 1% | 13% | 2% |
Organization and Principal Ac_4
Organization and Principal Activities (Details) - Schedule of Subsidiaries | 12 Months Ended |
Dec. 31, 2023 | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Date of Incorporation or acquisition | Apr. 26, 2021 |
Place of incorporation or establishment | British Virgin Islands |
Ownership interest | 100% |
Principal activities | Dormant |
Lion Brokers Limited [Member] | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Date of Incorporation or acquisition | Mar. 30, 2017 |
Place of incorporation or establishment | Cayman Islands |
Ownership interest | 100% |
Principal activities | Broker dealer and market maker |
Lion Financial Group Limited [Member] | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Date of Incorporation or acquisition | Jun. 16, 2015 |
Place of incorporation or establishment | British Virgin Islands |
Ownership interest | 100% |
Principal activities | Investment holding |
Lion Wealth Management Limited [Member] | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Date of Incorporation or acquisition | Feb. 16, 2017 |
Place of incorporation or establishment | British Virgin Islands |
Ownership interest | 100% |
Principal activities | Investment holding |
Lion International Securities Group Limited [Member] | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Date of Incorporation or acquisition | May 20, 2016 |
Place of incorporation or establishment | Hong Kong |
Ownership interest | 100% |
Principal activities | Securities brokerage |
LionFuturesLimited[Member] | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Date of Incorporation or acquisition | May 20, 2016 |
Place of incorporation or establishment | Hong Kong |
Ownership interest | 100% |
Principal activities | Futures brokerage |
Lion Investment (Hong Kong) Limited (F/K/A Lion Foreign Exchange Limited) [Member] | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Date of Incorporation or acquisition | May 20, 2016 |
Place of incorporation or establishment | Hong Kong |
Ownership interest | 100% |
Principal activities | Dormant |
Lion Asset Management Limited (F/K/A Lion Capital Management Limited) (“LAML”) [Member] | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Date of Incorporation or acquisition | May 20, 2016 |
Place of incorporation or establishment | Hong Kong |
Ownership interest | 51% |
Principal activities | Asset management |
BC Wealth Management Limited [Member] | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Date of Incorporation or acquisition | Oct. 14, 2014 |
Place of incorporation or establishment | Hong Kong |
Ownership interest | 100% |
Principal activities | Insurance brokerage |
Lion Wealth Limited (“LWL”) [Member] | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Date of Incorporation or acquisition | Oct. 04, 2018 |
Place of incorporation or establishment | Hong Kong |
Ownership interest | 100% |
Principal activities | Marketing and support service |
Lion International Financial (Singapore) Pte. LTD. [Member] | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Date of Incorporation or acquisition | Jul. 26, 2019 |
Place of incorporation or establishment | Singapore |
Ownership interest | 100% |
Principal activities | Dormant |
Lion Group North America Corp. (F/K/A Proficient Alpha Acquisition Corp.) [Member] | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Date of Incorporation or acquisition | Jun. 16, 2020 |
Place of incorporation or establishment | Nevada, USA |
Ownership interest | 100% |
Principal activities | Dormant |
Lion Fintech Group Limited [Member] | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Date of Incorporation or acquisition | Apr. 13, 2021 |
Place of incorporation or establishment | British Virgin Islands |
Ownership interest | 100% |
Principal activities | Investment holding |
Royal Lion Investment Limited [Member] | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Date of Incorporation or acquisition | Apr. 13, 2021 |
Place of incorporation or establishment | Cayman Islands |
Ownership interest | 70% |
Principal activities | Investment holding |
Royal Lion Middle East DMCC [Member] | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Date of Incorporation or acquisition | Apr. 13, 2021 |
Place of incorporation or establishment | Dubai |
Ownership interest | 70% |
Principal activities | Dormant |
Lion NFT Limited [Member] | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Date of Incorporation or acquisition | May 07, 2021 |
Place of incorporation or establishment | British Virgin Islands |
Ownership interest | 90% |
Principal activities | Investment and innovation in digital assets |
Flying Lion Limited [Member] | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Date of Incorporation or acquisition | Jun. 17, 2021 |
Place of incorporation or establishment | Cayman Islands |
Ownership interest | 70% |
Principal activities | Investment and innovation in digital assets |
Aquarius Sponsor Ltd. [Member] | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Date of Incorporation or acquisition | Apr. 12, 2021 |
Place of incorporation or establishment | British Virgin Islands |
Ownership interest | 51% |
Principal activities | Investment holding |
Aquarius II Sponsor Ltd. [Member] | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Date of Incorporation or acquisition | May 04, 2021 |
Place of incorporation or establishment | British Virgin Islands |
Ownership interest | 51% |
Principal activities | Investment holding |
Aquarius I Acquisition Corp. [Member] | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Date of Incorporation or acquisition | Apr. 15, 2021 |
Place of incorporation or establishment | Cayman Islands |
Ownership interest | 94% |
Principal activities | Special purpose acquisition company |
Aquarius II Acquisition Corp. [Member] | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Date of Incorporation or acquisition | May 05, 2021 |
Place of incorporation or establishment | Cayman Islands |
Ownership interest | 93% |
Principal activities | Special purpose acquisition company |
Lion Metaverse Limited [Member] | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Date of Incorporation or acquisition | Oct. 26, 2021 |
Place of incorporation or establishment | British Virgin Islands |
Ownership interest | 50% |
Principal activities | Technology development |
Lion Multi-Series Fund SPC [Member] | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Date of Incorporation or acquisition | Dec. 03, 2021 |
Place of incorporation or establishment | Cayman Islands |
Ownership interest | 100% |
Principal activities | Assets management |
Lion Silver Capital Limited [Member] | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Date of Incorporation or acquisition | Feb. 24, 2022 |
Place of incorporation or establishment | British Virgin Islands |
Ownership interest | 51% |
Principal activities | Assets management |
Significant Accounting Polici_3
Significant Accounting Policies (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |||||||||
Jun. 16, 2021 | Jun. 16, 2020 | Mar. 31, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Oct. 06, 2023 | Sep. 30, 2023 | Oct. 08, 2021 | May 31, 2021 | May 07, 2021 | |
Significant Accounting Policies [Line Items] | |||||||||||
Commission receivable | $ 7,919 | $ 35,805 | |||||||||
Spot token price | 438,000 | ||||||||||
Impairment charge | 294,000 | ||||||||||
Impaired assets | 1,700,000 | ||||||||||
Other assets | $ 2,095,800 | 2,534,684 | |||||||||
Aggregate amount | 1,000 | ||||||||||
Percentage of salvage value | 0% | ||||||||||
Commission payable | $ 35,321 | 47,359 | |||||||||
Escrow shares (in Shares) | 1,933,740 | 3,867,481 | |||||||||
Share percentage | 50% | 50% | |||||||||
Ordinary shares issued (in Shares) | 500,000,000 | ||||||||||
Shareholders loan | $ 600,000 | ||||||||||
Additional equity interest | 30% | ||||||||||
Minority shareholders | $ 200,000 | ||||||||||
Contribution amount | 1,713,775 | ||||||||||
Cash contribution | $ 178,916 | ||||||||||
Additional capital contributions | $ 257,405 | ||||||||||
Recognized income tax percentage | 50% | ||||||||||
Grandshores Technology Group Limited [Member] | |||||||||||
Significant Accounting Policies [Line Items] | |||||||||||
Contribution amount | $ 1,713,775 | ||||||||||
Silver Leaf Asset Management Co., Ltd. [Member] | |||||||||||
Significant Accounting Policies [Line Items] | |||||||||||
Exchange for interest | 49% | ||||||||||
Minimum [Member] | |||||||||||
Significant Accounting Policies [Line Items] | |||||||||||
Estimated useful lives | 3 years | ||||||||||
Maximum [Member] | |||||||||||
Significant Accounting Policies [Line Items] | |||||||||||
Estimated useful lives | 10 years | ||||||||||
Class A Ordinary Shares [Member] | |||||||||||
Significant Accounting Policies [Line Items] | |||||||||||
Ordinary shares issued (in Shares) | 71,200,000 | ||||||||||
Business Combination [Member] | |||||||||||
Significant Accounting Policies [Line Items] | |||||||||||
Equity interest | 60% | ||||||||||
Lion Metaverse Limited [Member] | |||||||||||
Significant Accounting Policies [Line Items] | |||||||||||
Ownership percentage | 50% | ||||||||||
Sponsor [Member] | |||||||||||
Significant Accounting Policies [Line Items] | |||||||||||
Ownership percentage | 51% |
Significant Accounting Polici_4
Significant Accounting Policies (Details) - Schedule of Crypto Currencies - USD ($) | 12 Months Ended | |||||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||||
BNB [Member] | ||||||
Schedule of Crypto Currencies [Line Items] | ||||||
Balance beginning | $ 144,423 | |||||
Additions of crypto currencies | ||||||
Realized gain on sale of crypto currencies | 89,649 | |||||
Impairment of crypto currencies | ||||||
Sale of crypto currencies | (229,000) | |||||
Balance ending | 5,072 | [1] | $ 144,423 | |||
BNB and WBNB [Member] | ||||||
Schedule of Crypto Currencies [Line Items] | ||||||
Balance beginning | $ 144,423 | [1] | ||||
Additions of crypto currencies | [2] | 438,042 | ||||
Realized gain on sale of crypto currencies | ||||||
Impairment of crypto currencies | (293,619) | |||||
Sale of crypto currencies | ||||||
Balance ending | 144,423 | [1] | ||||
Bitcoins [Member] | ||||||
Schedule of Crypto Currencies [Line Items] | ||||||
Balance beginning | [1] | |||||
Additions of crypto currencies | [3] | 1,708,753 | ||||
Realized gain on sale of crypto currencies | 17,496 | |||||
Impairment of crypto currencies | [4] | |||||
Sale of crypto currencies | (1,726,249) | |||||
Balance ending | [1] | |||||
[1] The balance was included in the line item “other assets” in the consolidated balance sheets as of December 31, 2023 and 2022. Binance Coin (“BNB”) and Wrapped BNB (“WBNB”) obtained from the sales of NFTs. The Group collected in an aggregate of approximately US$438,000 at the spot token price upon the completion of the sale of NFTs. As of December 31, 2022, the Group recorded an impairment charge of approximately US$294,000. Bitcoins obtained from the crypto currency mining activities. The Group did not recognize impairment loss on crypto currencies during the year ended December 31, 2021 as the crypto currencies were converted to stable coins shortly after the consideration was received and all stable coins were liquidated before the year end. |
Significant Accounting Polici_5
Significant Accounting Policies (Details) - Schedule of Diluted Earnings (Loss) per Ordinary Share - shares | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
SPAC Warrants [Member] | |||
Schedule of Diluted Earnings (Loss) per Ordinary Share [Line Items] | |||
Antidilutive Securities shares | 17,795,000 | 17,795,000 | 17,795,000 |
August 2020 PIPE Warrants [Member] | |||
Schedule of Diluted Earnings (Loss) per Ordinary Share [Line Items] | |||
Antidilutive Securities shares | 729,167 | 729,167 | 1,500,000 |
December 2020 Convertible Debenture [Member] | |||
Schedule of Diluted Earnings (Loss) per Ordinary Share [Line Items] | |||
Antidilutive Securities shares | 800,000 | ||
December 2020 Warrants [Member] | |||
Schedule of Diluted Earnings (Loss) per Ordinary Share [Line Items] | |||
Antidilutive Securities shares | 13,700,000 | ||
January 2021 Call Options [Member] | |||
Schedule of Diluted Earnings (Loss) per Ordinary Share [Line Items] | |||
Antidilutive Securities shares | 4,000,000 | 6,000,000 | |
Series A Convertible Preferred Shares [Member] | |||
Schedule of Diluted Earnings (Loss) per Ordinary Share [Line Items] | |||
Antidilutive Securities shares | 2,333,333 | ||
February 2021 Warrants [Member] | |||
Schedule of Diluted Earnings (Loss) per Ordinary Share [Line Items] | |||
Antidilutive Securities shares | 2,269,473,600 | 38,800,000 | 26,666,667 |
Series B Convertible Preferred Shares [Member] | |||
Schedule of Diluted Earnings (Loss) per Ordinary Share [Line Items] | |||
Antidilutive Securities shares | 3,615,584 | ||
December 2021 Warrants [Member] | |||
Schedule of Diluted Earnings (Loss) per Ordinary Share [Line Items] | |||
Antidilutive Securities shares | 150,375,950 | 2,285,715 | 2,285,715 |
August 2022 and December 2022 Convertible Debentures [Member] | |||
Schedule of Diluted Earnings (Loss) per Ordinary Share [Line Items] | |||
Antidilutive Securities shares | 5,200,000 | ||
September 2023 Convertible Debenture [Member] | |||
Schedule of Diluted Earnings (Loss) per Ordinary Share [Line Items] | |||
Antidilutive Securities shares | 2,000,000 | ||
Series H Warrants [Member] | |||
Schedule of Diluted Earnings (Loss) per Ordinary Share [Line Items] | |||
Antidilutive Securities shares | 657,900 |
Revenue Recognition (Details)
Revenue Recognition (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Spot Token Price [Member] | ||
Revenue Recognition (Details) [Line Items] | ||
Revenue | $ 438,000 | |
Bitcoin Mining [Member] | ||
Revenue Recognition (Details) [Line Items] | ||
Revenue | $ 1,700,000 |
Revenue Recognition (Details) -
Revenue Recognition (Details) - Schedule of Revenue from Contracts with Customers - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule of Revenue from Contracts with Customers [Line Items] | |||
Insurance brokerage commissions | $ 1,169,306 | $ 455,394 | $ 542,795 |
Securities brokerage commissions | 2,732,846 | 3,412,644 | 3,188,684 |
Market making commissions and fees | 3,121,661 | 781,878 | 4,324,650 |
Sale of NFTs | 438,041 | ||
Cryptocurrency mining | 1,726,249 | ||
Total revenue from contracts with customers | 7,023,813 | 5,087,957 | 9,782,378 |
Geographic regions | 7,023,813 | 5,087,957 | 9,782,378 |
Hong Kong [Member] | |||
Schedule of Revenue from Contracts with Customers [Line Items] | |||
Geographic regions | 3,902,152 | 3,868,038 | 5,457,728 |
Cayman Islands [Member] | |||
Schedule of Revenue from Contracts with Customers [Line Items] | |||
Geographic regions | $ 3,121,661 | $ 1,219,919 | $ 4,324,650 |
Revenue Recognition (Details)_2
Revenue Recognition (Details) - Schedule of Trading Gains (losses) Breakdown - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule of Trading Gains (losses) Breakdown [Abstract] | |||
CFD trading gains/(losses) | $ 16,204,480 | $ (7,476,190) | $ 4,374,807 |
TRS trading gains/(losses) | (5,076,247) | (3,913,422) | 10,523,974 |
OTC stock option trading gains/(losses) | (798,725) | 937,109 | (199,624) |
Other trading gains/(losses) | 149,996 | (1,015,466) | (1,320,011) |
Total | 10,479,504 | (11,467,969) | 13,379,146 |
Trading gains (losses) | $ 10,479,504 | $ (11,467,969) | $ 13,379,146 |
Revenue Recognition (Details)_3
Revenue Recognition (Details) - Schedule of Consolidated Statements of Operations and Comprehensive Income (loss) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule of Consolidated Statements of Operations and Comprehensive Income (loss) [Abstract] | |||
Foreign Currency | $ (310) | $ 1,454 | |
Stock Indices | 18,663,955 | (7,175,826) | 4,879,459 |
Commodities | (2,459,475) | (300,054) | (506,106) |
Equity | (5,724,976) | (3,991,779) | 9,004,339 |
Total | $ 10,479,504 | $ (11,467,969) | $ 13,379,146 |
Cash and Restricted Cash (Detai
Cash and Restricted Cash (Details) - Schedule of Cash and Restricted Cash - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Schedule of Cash and Restricted Cash [Abstract] | |||
Cash | $ 28,953,780 | $ 11,159,610 | $ 15,098,151 |
Restricted Cash | 2,142,615 | 3,242,989 | 653,324 |
Total cash and restricted cash presented in the consolidated statement of cash flows | $ 31,096,395 | $ 14,402,599 | $ 15,751,475 |
Fair Value (Details) - Schedule
Fair Value (Details) - Schedule of Significant Assumptions Which the Group Used to Value - $ / shares | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Black-Sholes-Merton Pricing Model [Member] | ||
Schedule of Monte-Carlo Simulation Model [Line Items] | ||
Expected dividend yield | 0% | |
Risk-free interest Rate | 3% | |
Black-Sholes-Merton Pricing Model [Member] | Minimum [Member] | ||
Schedule of Monte-Carlo Simulation Model [Line Items] | ||
Stock price (in Dollars per share) | $ 0.19 | |
Exercise price (in Dollars per share) | $ 0.2 | |
Expected term in years | 3 days | |
Volatility | 14% | |
Black-Sholes-Merton Pricing Model [Member] | Maximum [Member] | ||
Schedule of Monte-Carlo Simulation Model [Line Items] | ||
Stock price (in Dollars per share) | $ 15.89 | |
Exercise price (in Dollars per share) | $ 17.46 | |
Expected term in years | 2 months 19 days | |
Volatility | 98% | |
Black-Sholes-Merton pricing mode [Member] | ||
Schedule of Monte-Carlo Simulation Model [Line Items] | ||
Stock price (in Dollars per share) | $ 1.35 | |
Exercise price (in Dollars per share) | $ 575 | |
Expected term in years | 1 year 5 months 15 days | |
Expected dividend yield | 0% | |
Volatility | 261.88% | |
Risk-free interest Rate | 4.29% | |
Black-Sholes-Merton pricing mode [Member] | Minimum [Member] | ||
Schedule of Monte-Carlo Simulation Model [Line Items] | ||
Stock price (in Dollars per share) | $ 35.75 | |
Exercise price (in Dollars per share) | $ 575 | |
Expected term in years | 2 years 5 months 15 days | |
Expected dividend yield | 0% | |
Volatility | 96.42% | |
Risk-free interest Rate | 4.44% |
Fair Value (Details) - Schedu_2
Fair Value (Details) - Schedule of Fair Value Hierarchy for those Assets and Liabilities Measured at Fair Value on a Recurring Basis - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Assets | ||
Listed equity securities | $ 4,522,805 | $ 11,104,047 |
Option assets | 1,801,095 | |
Total assets | 6,323,900 | 11,104,047 |
Liabilities | ||
Embedded derivative liabilities | (878,420) | (2,292,056) |
Option liabilities | (3,009,166) | |
Warrant liabilities | (109,687) | (675,000) |
Total liabilities | (3,997,273) | (2,967,056) |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Assets | ||
Listed equity securities | 4,522,805 | 11,104,047 |
Option assets | ||
Total assets | 4,522,805 | 11,104,047 |
Liabilities | ||
Embedded derivative liabilities | ||
Option liabilities | ||
Warrant liabilities | (74,750) | (460,000) |
Total liabilities | (74,750) | (460,000) |
Significant Observable Inputs (Level 2) [Member] | ||
Assets | ||
Listed equity securities | ||
Option assets | 1,801,095 | |
Total assets | 1,801,095 | |
Liabilities | ||
Embedded derivative liabilities | (878,420) | (2,292,056) |
Option liabilities | (3,009,166) | |
Warrant liabilities | (34,937) | (215,000) |
Total liabilities | (3,922,523) | (2,507,056) |
Significant Unobservable Inputs (Level 3) [Member] | ||
Assets | ||
Listed equity securities | ||
Option assets | ||
Total assets | ||
Liabilities | ||
Embedded derivative liabilities | ||
Option liabilities | ||
Warrant liabilities | ||
Total liabilities |
Short-Term Loans Receivable (De
Short-Term Loans Receivable (Details) - USD ($) | 1 Months Ended | 6 Months Ended | 12 Months Ended | ||
Apr. 16, 2023 | Dec. 31, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Apr. 13, 2023 | |
Short-Term Loans Receivable [Abstract] | |||||
Issued notes receivable | $ 8,564,000 | ||||
Received repayment amount | 1,499,000 | ||||
Interest amount | 51,000 | ||||
Percentage of accrued interest rate | 12% | ||||
Loans receivable | 7,126,000 | ||||
Interest income earned | $ 241,845 | $ 500,759 | |||
Purchase price of system software | $ 7,850,000 | ||||
Accrued interest | $ 7,766,000 |
Long-Term Investment (Details)
Long-Term Investment (Details) | Sep. 28, 2023 USD ($) | May 31, 2021 USD ($) | May 31, 2021 CNY (¥) |
Long-Term Investment [Line Items] | |||
Equity interest | $ (1,550,000) | ¥ 10,000,000 | |
Equity interest, percentage | 25% | 25% | |
Percentage of equity method ownership | 100% | ||
Total cash consideration | $ 1,500,000 | ||
Sale proceeds received | $ 122,000 | ||
Shenzhen Yuhe Chuangzhi Technology Limited [Member] | |||
Long-Term Investment [Line Items] | |||
Equity interest | ¥ | ¥ 64,500,000 | ||
Tunlan Hongyi [Member] | |||
Long-Term Investment [Line Items] | |||
Equity interest, percentage | 62% | 62% |
Fixed Assets, Net (Details)
Fixed Assets, Net (Details) ¥ in Millions | 12 Months Ended | |||
Dec. 31, 2023 USD ($) | Dec. 31, 2023 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Fixed Assets, Net (Details) [Line Items] | ||||
Aggregate purchase price | $ 2,600,000 | ¥ 17 | ||
Maintenance costs payable | 200,000 | |||
Depreciation expense | $ 378,554 | |||
Operating expenses | 26,917,235 | $ 31,500,929 | 25,946,291 | |
Depreciation [Member] | ||||
Fixed Assets, Net (Details) [Line Items] | ||||
Depreciation expense | 147,248 | |||
Operating expenses | 2,032,386 | $ 1,795,011 | ||
Mining machines [Member] | ||||
Fixed Assets, Net (Details) [Line Items] | ||||
Impairment charges | $ 1,690,028 |
Fixed Assets, Net (Details) - S
Fixed Assets, Net (Details) - Schedule of Fixed Assets - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment [Line Items] | ||
Total cost of fixed assets | $ 24,200,969 | $ 18,929,099 |
Less: accumulated depreciation | (4,356,573) | (3,452,727) |
Less: impairment of mining machines | (1,690,028) | |
Fixed assets, net | 19,844,396 | 13,786,344 |
Mining Machines [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total cost of fixed assets | 2,585,119 | |
Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total cost of fixed assets | 23,850,000 | 16,000,000 |
Leasehold improvement [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total cost of fixed assets | 38,522 | 38,329 |
Office and equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total cost of fixed assets | $ 312,447 | $ 305,651 |
Short-Term Borrowings (Details)
Short-Term Borrowings (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Short-Term Borrowings [Line Items] | ||
Total short-term borrowings outstanding | $ 110,000 | $ 110,000 |
Derivatives (Details) - Schedul
Derivatives (Details) - Schedule of the Group’s Open Positions - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Schedule of the Group’s Open Positions [Line Items] | ||
Fair Value of Asset | $ 1,801,095 | $ 54 |
Fair Value of Liability | (3,009,166) | |
Net Amount | (1,208,071) | 54 |
OTC stock option contracts [Member] | ||
Schedule of the Group’s Open Positions [Line Items] | ||
Fair Value of Asset | 1,801,095 | |
Fair Value of Liability | (3,009,166) | |
Net Amount | $ (1,208,071) | |
Stock Indices CFDs [Member] | ||
Schedule of the Group’s Open Positions [Line Items] | ||
Fair Value of Asset | 54 | |
Fair Value of Liability | ||
Net Amount | $ 54 |
Related Parties (Details)
Related Parties (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Related Parties [Abstract] | ||
Repayment of directors | $ 128,000 | |
Due to director | 15,000 | |
Research and development expenses | $ 838,000 | $ 838,000 |
Convertible Debentures (Details
Convertible Debentures (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||||||||||||
Sep. 02, 2023 | Dec. 07, 2022 | Aug. 10, 2022 | Aug. 09, 2022 | Dec. 14, 2020 | Dec. 14, 2020 | Sep. 30, 2023 | Aug. 31, 2022 | May 17, 2022 | Jan. 29, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Sep. 05, 2023 | |
Convertible Debentures (Details) [Line Items] | ||||||||||||||
Private placement with net proceeds | $ 1,540,000 | |||||||||||||
Principal amount | $ 3,000,000 | $ 3,500,000 | $ 1,600,000 | $ 2,100,000 | ||||||||||
Convertible shares (in Shares) | 16,000 | |||||||||||||
Convertible value | $ 100 | |||||||||||||
Issuance accrues interest rate | 9% | 9% | ||||||||||||
Subscription amount | $ 1,000,000 | $ 1,000,000 | ||||||||||||
Convertible debenture | $ 1,540,000 | $ 2,365,000 | ||||||||||||
Fair value of warrants amount | (565,313) | $ (1,260,354) | $ 470,804 | |||||||||||
Warrants aggregated | 77,500 | |||||||||||||
Net of debt original issue discount | 145,000 | |||||||||||||
Accrued interest | $ 11,600 | |||||||||||||
Converted shares (in Shares) | 889,667 | |||||||||||||
Recognized interest expense aggregating amount | $ 522,000 | 214,000 | 796,000 | |||||||||||
Interest obligation | 12,000 | |||||||||||||
Amortization of debt discounts | 784,000 | |||||||||||||
Proceeds amount | $ 27,400,000 | |||||||||||||
Received net proceeds | $ 3,300,000 | $ 1,955,000 | ||||||||||||
Maturity date | Nov. 17, 2024 | |||||||||||||
Interest rate | 8% | |||||||||||||
Interest paid in cash percentage | 12% | |||||||||||||
Conversion price (in Dollars per share) | $ 37.5 | |||||||||||||
Trade price percentage | 85% | |||||||||||||
Convertible debentures description | As part of consideration of entering into the Securities Purchase Agreement, the Company agreed to extend the February 2021 and December 2021 Warrants (as discussed in Note 13 below) termination dates as follows: (i) the termination date for the Series D American Depositary Shares Purchase Warrant shall be extended to February 18, 2028; (ii) the termination date for the Series E American Depositary Shares Purchase Warrant shall be extended to February 18, 2025; (iii) the termination date for the Series F American Depositary Shares Purchase Warrant shall be extended to February 18, 2028; and (iv) the termination date for the Series G American Depositary Shares Purchase Warrant shall be extended to December 13, 2028. Pursuant to the adoption of ASU 2021-04, the Company considered the guidance in in ASC 815-40-35-16 through ASC 815-40-35-18 regarding the modification or exchange of a freestanding equity-classified written call option, and recognized the incremental fair value of the warrants aforementioned as a debt discount or debt issuance cost in accordance with paragraph 815-40-35-17(b), in an amount of $1,330,000. The fair value of Series D, E and G Warrants immediately before the modification is estimated to be at $12.00, $4.50 and $14.50 per share, respectively by using Binomial Option Pricing Model with an expected term of 3.75, 0.75 and 4.57 years, respectively, a stock price of $53.50 per ADS, volatility of 58.23%, 91.63%, 57.98%, respectively, a risk free rate of 2.97%, 3.16% and 2.96%, respectively, and an expected dividend yield of 0%. The fair value of Series D, E and G Warrants after the modification is estimated to be at $17.50, $9.00 and $21.50 per share, respectively by using Binomial Option Pricing Model with an expected term of 5.75, 2.75 and 6.57 years, respectively, a stock price of $52.50 per ADS, volatility of 57.82%, 61.03% and 61.21%, respectively, a risk free rate of 2.96%, 2.97% and 2.97%, respectively, and an expected dividend yield of 0%. | |||||||||||||
Derivative liability fair value | $ 625,000 | 1,051,000 | ||||||||||||
Debentures carried value | $ 1,485,000 | 1,330,000 | $ 1,789,000 | |||||||||||
Proceeds received | 1,955,000 | |||||||||||||
Debt issuance cost | 1,330,000 | |||||||||||||
Interest expense | 445,000 | |||||||||||||
Purchase additional debenture amount | $ 25,000,000 | |||||||||||||
Conversion of May 2022 Convertible Debenture and the payment of make-whole interest by shares (in Shares) | 3,194,885 | |||||||||||||
Option to purchase | $ 2,500,000 | |||||||||||||
Aggregate value | $ 2,000 | |||||||||||||
Carrying value of convertible debenture | $ 1,597,000 | |||||||||||||
Minimum [Member] | ||||||||||||||
Convertible Debentures (Details) [Line Items] | ||||||||||||||
Warrant per share (in Dollars per share) | $ 122.5 | |||||||||||||
Maximum [Member] | ||||||||||||||
Convertible Debentures (Details) [Line Items] | ||||||||||||||
Warrant per share (in Dollars per share) | $ 100 | |||||||||||||
May 2022 Convertible Debenture [Member] | ||||||||||||||
Convertible Debentures (Details) [Line Items] | ||||||||||||||
Conversion price (in Dollars per share) | $ 50 | |||||||||||||
Purchase additional debenture amount | $ 630,000 | |||||||||||||
December 2022 Debenture [Member] | ||||||||||||||
Convertible Debentures (Details) [Line Items] | ||||||||||||||
Received net proceeds | 2,840,000 | |||||||||||||
August and December 2022 Convertible Debentures [Member] | ||||||||||||||
Convertible Debentures (Details) [Line Items] | ||||||||||||||
Derivative liability fair value | $ 878,000 | $ 1,241,000 | ||||||||||||
Debentures carried value | $ 2,059,000 | |||||||||||||
Series D [Member] | ||||||||||||||
Convertible Debentures (Details) [Line Items] | ||||||||||||||
Fair value of warrants amount | 802,000 | |||||||||||||
Series H A D S Purchase Warrant [Member] | ||||||||||||||
Convertible Debentures (Details) [Line Items] | ||||||||||||||
Number of warrants or rights outstanding. (in Shares) | 13,158 | |||||||||||||
Exercise price per share (in Dollars per share) | $ 1.9 | |||||||||||||
Series C [Member] | ||||||||||||||
Convertible Debentures (Details) [Line Items] | ||||||||||||||
Senior secured convertible debenture | 9% | |||||||||||||
Debt discount | 206,000 | |||||||||||||
Net of debt original issue discount | $ 60,000 | |||||||||||||
August and December 2022 Convertible Debentures [Member] | ||||||||||||||
Convertible Debentures (Details) [Line Items] | ||||||||||||||
Aggregate shares (in Shares) | 14,200,000 | |||||||||||||
August 2022 Convertible Debenture [Member] | ||||||||||||||
Convertible Debentures (Details) [Line Items] | ||||||||||||||
Aggregate shares (in Shares) | 39,489,758 | |||||||||||||
Interest on debentures | $ 1,200,000 | |||||||||||||
Series H Warrants [Member] | ||||||||||||||
Convertible Debentures (Details) [Line Items] | ||||||||||||||
Warrant price per share (in Dollars per share) | $ 0.16 | |||||||||||||
Series B Warrant [Member] | ||||||||||||||
Convertible Debentures (Details) [Line Items] | ||||||||||||||
Warrant term | 2 years | 2 years | ||||||||||||
Warrant to purchase shares (in Shares) | 100,000 | 100,000 | ||||||||||||
Exercise price per share (in Dollars per share) | $ 100 | |||||||||||||
Fair value of warrants amount | $ 157,000 | |||||||||||||
Warrant shares (in Shares) | 737,000 | |||||||||||||
Series A Warrant [Member] | ||||||||||||||
Convertible Debentures (Details) [Line Items] | ||||||||||||||
Warrant to purchase shares (in Shares) | 24,000 | 24,000 | ||||||||||||
Exercise price per share (in Dollars per share) | $ 122.5 | |||||||||||||
Fair value of warrants amount | $ 206,000 | |||||||||||||
Series C [Member] | ||||||||||||||
Convertible Debentures (Details) [Line Items] | ||||||||||||||
Warrant term | 7 years | 7 years | ||||||||||||
Warrant to purchase shares (in Shares) | 150,000 | 150,000 | ||||||||||||
Exercise price per share (in Dollars per share) | $ 122.5 | |||||||||||||
Fair value of warrants amount | 375,000 | |||||||||||||
Warrants aggregated | $ 803,000 | |||||||||||||
Class A ordinary shares [Member] | ||||||||||||||
Convertible Debentures (Details) [Line Items] | ||||||||||||||
Aggregate shares (in Shares) | 70,999,400 | |||||||||||||
Interest on debentures | $ 1,100,000 | |||||||||||||
Convertible Debt [Member] | ||||||||||||||
Convertible Debentures (Details) [Line Items] | ||||||||||||||
Feature in an aggregate | $ 743,500 |
Convertible Debentures (Detai_2
Convertible Debentures (Details) - Schedule of Convertible Debentures - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Convertible Debentures (Details) - Schedule of Convertible Debentures [Line Items] | ||
Convertible debentures | $ 1,597,404 | $ 4,061,735 |
Embedded derivative liability bifurcated | 878,420 | 2,292,056 |
December 2020 Convertible Debenture [Member] | ||
Convertible Debentures (Details) - Schedule of Convertible Debentures [Line Items] | ||
Convertible debentures | ||
May 2022 Convertible Debenture [Member] | ||
Convertible Debentures (Details) - Schedule of Convertible Debentures [Line Items] | ||
Convertible debentures | ||
Embedded derivative liability bifurcated | ||
August 2022 Convertible Debenture [Member] | ||
Convertible Debentures (Details) - Schedule of Convertible Debentures [Line Items] | ||
Convertible debentures | 2,238,897 | |
Embedded derivative liability bifurcated | 1,241,261 | |
December 2022 Convertible Debenture [Member] | ||
Convertible Debentures (Details) - Schedule of Convertible Debentures [Line Items] | ||
Convertible debentures | 1,822,838 | |
Embedded derivative liability bifurcated | 1,050,795 | |
September 2023 Convertible Debenture [Member] | ||
Convertible Debentures (Details) - Schedule of Convertible Debentures [Line Items] | ||
Convertible debentures | 1,597,404 | |
Embedded derivative liability bifurcated | $ 878,420 |
Convertible Debentures (Detai_3
Convertible Debentures (Details) - Schedule of Assumptions Used to Measure the Fair Value of Warrants | 12 Months Ended |
Dec. 31, 2020 $ / shares | |
Series A [Member] | |
Convertible Debentures (Details) - Schedule of Assumptions Used to Measure the Fair Value of Warrants [Line Items] | |
Expected term in years | 7 years |
Stock price (ADS) (in Dollars per share) | $ 116 |
Expected dividend yield | 0% |
Volatility | 46.68% |
Risk-free interest Rate | 0.63% |
Initial fair value per share (in Dollars per share) | $ 50.5 |
Series B [Member] | |
Convertible Debentures (Details) - Schedule of Assumptions Used to Measure the Fair Value of Warrants [Line Items] | |
Expected term in years | 2 years |
Stock price (ADS) (in Dollars per share) | $ 120 |
Expected dividend yield | 0% |
Volatility | 49.61% |
Risk-free interest Rate | 0.20% |
Initial fair value per share (in Dollars per share) | $ 29 |
Series C [Member] | |
Convertible Debentures (Details) - Schedule of Assumptions Used to Measure the Fair Value of Warrants [Line Items] | |
Expected term in years | 7 years |
Stock price (ADS) (in Dollars per share) | $ 120 |
Expected dividend yield | 0% |
Volatility | 46.68% |
Risk-free interest Rate | 0.63% |
Initial fair value per share (in Dollars per share) | $ 41.5 |
Convertible Preferred Shares _3
Convertible Preferred Shares and Attached Warrants (Details) - USD ($) | 12 Months Ended | ||||||
Sep. 30, 2023 | Feb. 15, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Oct. 06, 2023 | Jan. 01, 2022 | |
Convertible Preferred Shares and Attached Warrants (Details) [Line Items] | |||||||
Convertible debenture, description | a) Series A Convertible Preferred Shares (the “Series A Convertible Preferred Shares”) with a stated value of $7,000,000; b) a warrant (the “Series D Warrant”) to purchase 46,667 ADSs of the Company until the fifth year anniversary of the closing date at an exercise price of $150.00 per ADS; c) a one-year warrant to purchase 266,667 ADS (the “Series E Warrant”) at an exercise price of $150.00 per ADS, each exercise of which entitles the warrant holder to receive one ADS and a 8% cash discount; and d) a 5-year warrant to purchase 266,667 ADS (the “Series F Warrant”, together with the Series D Warrant and the Series E Warrant, the “February 2021 Warrants”) at an exercise price of $150.00 per ADS. The exercisability of Series F Warrant shall vest ratably from time to time in proportion to the exercise of the Series E Warrants by the holder. The transactions contemplated under the Securities Purchase Agreement were closed on February 18, 2021. | ||||||
Series convertible preferred shares par value (in Dollars per share) | $ 0.0001 | $ 0.0001 | |||||
Net proceeds of convertible preferred shares | $ 2,365,000 | $ 8,095,000 | |||||
Aggregate proceeds | $ 3,100,000 | ||||||
Dividend shares (in Shares) | 575 | ||||||
Carrying value | 3,929,000 | ||||||
Cumulative dividend | 278,000 | 16,000 | |||||
Conversion price per share (in Dollars per share) | $ 37.5 | ||||||
Warrants an aggregate | $ 6,100,000 | ||||||
Debt discounts original issue discount | 145,000 | ||||||
Accrued dividend | 294,000 | ||||||
Dividend to preferred stockholders | 187,000 | ||||||
Fair value of warrants | $ (565,313) | $ (1,260,354) | $ 470,804 | ||||
Expected term | 5 years 11 months 8 days | ||||||
Stock price per share (in Dollars per share) | $ 0.685 | ||||||
Risk free rate, percentage | 3.90% | ||||||
Expected dividend yield percentage | 0% | ||||||
Warrants exercise price per share (in Dollars per share) | $ 87.5 | ||||||
Net proceeds | $ 700,000 | ||||||
Maximum [Member] | |||||||
Convertible Preferred Shares and Attached Warrants (Details) [Line Items] | |||||||
Expected term | 5 years 1 month 17 days | ||||||
Volatility, percentage | 106.31% | ||||||
Risk free rate, percentage | 4.503% | ||||||
Fair value warrants (in Dollars per share) | 100 | ||||||
Minimum [Member] | |||||||
Convertible Preferred Shares and Attached Warrants (Details) [Line Items] | |||||||
Expected term | 2 years 1 month 17 days | ||||||
Volatility, percentage | 60.19% | ||||||
Risk free rate, percentage | 3.81% | ||||||
Fair value warrants (in Dollars per share) | $ 122.5 | ||||||
Median [Member] | |||||||
Convertible Preferred Shares and Attached Warrants (Details) [Line Items] | |||||||
Volatility, percentage | 60.29% | ||||||
Risk free rate, percentage | 3.75% | ||||||
February 2021 Series A Convertible Preferred Shares and Warrants [Member] | |||||||
Convertible Preferred Shares and Attached Warrants (Details) [Line Items] | |||||||
Debt received | $ 6,440,000 | ||||||
Convertible debenture, description | (i) the conversion price of the Series A Preferred Shares is adjusted to the lower of $87.50 or 90% of the lowest daily Volume-Weighted Average Price in the last 10 trading days prior to conversion, in no event that the conversion price shall be lower than $37.50, as amended; (ii) the exercise price of the Series D Warrants is adjusted to $125.00; (iii) the exercise price of the Series E Warrants is adjusted to $100.00; and (iv) the exercise price of the Series F Warrants is adjusted to $125.00. The ADSs issuable upon exercise of the Series D/E/F Warrants were adjusted to 56,000, 400,000 and 320,000, respectively for the aggregate exercise price to remain unchanged. | ||||||
Conversion price (in Dollars per share) | $ 8,280,270 | ||||||
Additional paid in capital | $ 81,000 | ||||||
Net of debt discounts paid | 620,000 | ||||||
Series A preferred shares remained outstanding (in Shares) | 6,500 | ||||||
Accrued dividend converted into an aggregate (in Shares) | 325,000 | ||||||
February 2021 Series A Convertible Preferred Shares and Warrants [Member] | Series D [Member] | |||||||
Convertible Preferred Shares and Attached Warrants (Details) [Line Items] | |||||||
Aggregate proceeds | 2,149,000 | ||||||
February 2021 Series A Convertible Preferred Shares and Warrants [Member] | Series E [Member] | |||||||
Convertible Preferred Shares and Attached Warrants (Details) [Line Items] | |||||||
Aggregate proceeds | $ 4,231,000 | ||||||
December 2020 Convertible Debenture and Warrants [Member] | |||||||
Convertible Preferred Shares and Attached Warrants (Details) [Line Items] | |||||||
Aggregate amount | $ 5.3 | ||||||
Dividend shares (in Shares) | 500 | ||||||
Net proceeds allocated to convertible debenture | $ 4,000 | ||||||
December 2021 Series B Convertible Preferred Shares and Warrants [Member] | |||||||
Convertible Preferred Shares and Attached Warrants (Details) [Line Items] | |||||||
Convertible debenture, description | a) Series B Convertible Preferred Shares (the “Series B Convertible Preferred Shares”) with a stated value of $4,000,000; and b) a 5-year warrant to purchase 45,714 ADSs (the “Series G Warrants”, or the “December 2021 Warrants”) of the Company until on or prior to December 13, 2026 at an exercise price of $125.00 per ADS. | ||||||
Dividend rights rate | 8% | ||||||
Conversion price (in Dollars per share) | $ 87.5 | ||||||
Lower conversion price (in Dollars per share) | $ 87.5 | ||||||
Percentage of lowest daily volume-weighted average price | 90% | ||||||
Aggregate cash | 100% | ||||||
Cash investment | $ 3,800,000 | ||||||
Stock and classified in stockholders’ equity, description | The fair value of December 2021 Warrants is estimated to be at $29.00 per share by using Binomial Option Pricing Model with an expected term of 5 years, a stock price of $85.00 per ADS, volatility of 53.42%, a risk free rate of 1.30% and an expected dividend yield of 0%. | ||||||
Debt discount | $ 1,613,000 | ||||||
Warrants an aggregate | 8,000 | ||||||
Debt discounts original issue discount | 50,000 | ||||||
Deemed dividends to preferred stockholders in amount | $ 36,000 | ||||||
Carrying amount accreted | 1,222,000 | ||||||
December 2021 Series B Convertible Preferred Shares and Warrants [Member] | Series B [Member] | |||||||
Convertible Preferred Shares and Attached Warrants (Details) [Line Items] | |||||||
Net proceeds of convertible preferred shares | 2,800,000 | ||||||
December 2021 Series B Convertible Preferred Shares and Warrants [Member] | Series G [Member] | |||||||
Convertible Preferred Shares and Attached Warrants (Details) [Line Items] | |||||||
Net proceeds of convertible preferred shares | 950,000 | ||||||
Debt discount | 1,613,000 | ||||||
Proceeds to the detachable Series G Warrants | 950,000 | ||||||
Convertible amount | $ 1,186,000 | ||||||
Binomial Option Pricing Model [Member] | |||||||
Convertible Preferred Shares and Attached Warrants (Details) [Line Items] | |||||||
Stock price per share (in Dollars per share) | $ 0.685 | ||||||
Expected dividend yield percentage | 0% | ||||||
Binomial Option Pricing Model [Member] | Maximum [Member] | |||||||
Convertible Preferred Shares and Attached Warrants (Details) [Line Items] | |||||||
Expected term | 7 years 11 months 8 days | ||||||
Volatility, percentage | 108.01% | ||||||
Risk free rate, percentage | 3.93% | ||||||
Binomial Option Pricing Model [Member] | Minimum [Member] | |||||||
Convertible Preferred Shares and Attached Warrants (Details) [Line Items] | |||||||
Expected term | 4 years 1 month 17 days | ||||||
Volatility, percentage | 63.28% | ||||||
Risk free rate, percentage | 3.65% | ||||||
Binomial Option Pricing Model [Member] | Median [Member] | |||||||
Convertible Preferred Shares and Attached Warrants (Details) [Line Items] | |||||||
Expected term | 7 years 1 month 17 days | ||||||
Volatility, percentage | 64.87% | ||||||
Risk free rate, percentage | 3.69% | ||||||
Warrant [Member] | |||||||
Convertible Preferred Shares and Attached Warrants (Details) [Line Items] | |||||||
Fair value of warrants | $ 802,000 | ||||||
Stock price per share (in Dollars per share) | $ 3.04 | ||||||
Warrant [Member] | February 2021 Series A Convertible Preferred Shares and Warrants [Member] | |||||||
Convertible Preferred Shares and Attached Warrants (Details) [Line Items] | |||||||
Net proceeds of convertible preferred shares | $ 2,669,000 | ||||||
Warrant [Member] | Binomial Option Pricing Model [Member] | |||||||
Convertible Preferred Shares and Attached Warrants (Details) [Line Items] | |||||||
Expected dividend yield percentage | 0% | ||||||
Series A Preferred Shares [Member] | |||||||
Convertible Preferred Shares and Attached Warrants (Details) [Line Items] | |||||||
Cumulative dividend | $ 130,000 | 209,000 | |||||
Series B Preferred Stock [Member] | |||||||
Convertible Preferred Shares and Attached Warrants (Details) [Line Items] | |||||||
Converted shares (in Shares) | 5,158,472 | ||||||
Series B Preferred Stock [Member] | December 2021 Series B Convertible Preferred Shares and Warrants [Member] | |||||||
Convertible Preferred Shares and Attached Warrants (Details) [Line Items] | |||||||
Received net proceeds | $ 3,800,000 | ||||||
Series A Preferred Shares [Member] | February 2021 Series A Convertible Preferred Shares and Warrants [Member] | |||||||
Convertible Preferred Shares and Attached Warrants (Details) [Line Items] | |||||||
Series convertible preferred shares (in Shares) | 7,000 | ||||||
Series convertible preferred shares par value (in Dollars per share) | $ 0.0001 | ||||||
Series convertible preferred shares par value | $ 1,000 | ||||||
Dividend rights rate | 8% | ||||||
Conversion price (in Dollars per share) | $ 150 | ||||||
Net proceeds of convertible preferred shares | $ 1,563,000 | ||||||
Series A Preferred Shares [Member] | December 2020 Convertible Debenture and Warrants [Member] | |||||||
Convertible Preferred Shares and Attached Warrants (Details) [Line Items] | |||||||
Converted shares (in Shares) | 14,000 | ||||||
Series D [Member] | |||||||
Convertible Preferred Shares and Attached Warrants (Details) [Line Items] | |||||||
Net proceeds of convertible preferred shares | 1,563,000 | ||||||
Fair value of warrants | $ 8.05 | ||||||
Fair value warrants (in Dollars per share) | $ 12.73 | ||||||
Series E [Member] | |||||||
Convertible Preferred Shares and Attached Warrants (Details) [Line Items] | |||||||
Fair value of warrants | $ 8.67 | ||||||
Fair value warrants (in Dollars per share) | $ 15.14 | ||||||
Warrants exercise price per share (in Dollars per share) | $ 1.9 | ||||||
Warrants exercise price per share (in Dollars per share) | 1.9 | ||||||
Series E [Member] | February 2021 Series A Convertible Preferred Shares and Warrants [Member] | |||||||
Convertible Preferred Shares and Attached Warrants (Details) [Line Items] | |||||||
Net proceeds of convertible preferred shares | $ 560,000 | ||||||
Series F [Member] | |||||||
Convertible Preferred Shares and Attached Warrants (Details) [Line Items] | |||||||
Warrants exercise price per share (in Dollars per share) | $ 1.9 | ||||||
Series F [Member] | February 2021 Series A Convertible Preferred Shares and Warrants [Member] | |||||||
Convertible Preferred Shares and Attached Warrants (Details) [Line Items] | |||||||
Net proceeds of convertible preferred shares | $ 1,588,000 | ||||||
Class A ordinary shares [Member] | |||||||
Convertible Preferred Shares and Attached Warrants (Details) [Line Items] | |||||||
Converted shares (in Shares) | 70,999,400 | ||||||
Stock price per share (in Dollars per share) | $ 0.0001 | ||||||
Exchange issuance (in Shares) | 20,000,000 | ||||||
Class A ordinary shares [Member] | Convertible Preferred Stock [Member] | |||||||
Convertible Preferred Shares and Attached Warrants (Details) [Line Items] | |||||||
Converted shares (in Shares) | 349,789 | ||||||
Series A Preferred Shares [Member] | February 2021 Series A Convertible Preferred Shares and Warrants [Member] | |||||||
Convertible Preferred Shares and Attached Warrants (Details) [Line Items] | |||||||
Dividend shares (in Shares) | 6,500 | ||||||
Series B Preferred Stock [Member] | |||||||
Convertible Preferred Shares and Attached Warrants (Details) [Line Items] | |||||||
Additional paid in capital | $ 1,591,000 | ||||||
Series B Preferred Stock [Member] | December 2021 Series B Convertible Preferred Shares and Warrants [Member] | |||||||
Convertible Preferred Shares and Attached Warrants (Details) [Line Items] | |||||||
Series convertible preferred shares (in Shares) | 4,000 | ||||||
Series convertible preferred shares par value (in Dollars per share) | $ 0.0001 | ||||||
Series convertible preferred shares par value | $ 1,000 | ||||||
Series G [Member] | |||||||
Convertible Preferred Shares and Attached Warrants (Details) [Line Items] | |||||||
Fair value of warrants | $ 9.66 | ||||||
Fair value warrants (in Dollars per share) | $ 14.78 | ||||||
Warrants exercise price per share (in Dollars per share) | $ 1.9 | ||||||
Series H [Member] | |||||||
Convertible Preferred Shares and Attached Warrants (Details) [Line Items] | |||||||
Warrants exercise price per share (in Dollars per share) | $ 1.9 | ||||||
Series D Preferred Stock [Member] | |||||||
Convertible Preferred Shares and Attached Warrants (Details) [Line Items] | |||||||
Expected term | 6 years 5 months 15 days | ||||||
Volatility, percentage | 107.83% | ||||||
Issuance of warrants adjusted (in Shares) | 3,684,210 | ||||||
Fair value of warrants estimated price per share (in Dollars per share) | $ 0.17 | ||||||
Series D Preferred Stock [Member] | Median [Member] | |||||||
Convertible Preferred Shares and Attached Warrants (Details) [Line Items] | |||||||
Fair value of warrants estimated price per share (in Dollars per share) | $ 1.22 | ||||||
Series E Preferred Stock [Member] | |||||||
Convertible Preferred Shares and Attached Warrants (Details) [Line Items] | |||||||
Expected term | 3 years 5 months 15 days | ||||||
Volatility, percentage | 108.52% | ||||||
Risk free rate, percentage | 4.22% | ||||||
Issuance of warrants adjusted (in Shares) | 21,052,631 | ||||||
Fair value of warrants estimated price per share (in Dollars per share) | $ 0.25 | ||||||
Series E Preferred Stock [Member] | Minimum [Member] | |||||||
Convertible Preferred Shares and Attached Warrants (Details) [Line Items] | |||||||
Fair value of warrants estimated price per share (in Dollars per share) | 0.35 | ||||||
Series F Preferred Stock [Member] | |||||||
Convertible Preferred Shares and Attached Warrants (Details) [Line Items] | |||||||
Issuance of warrants adjusted (in Shares) | 21,052,631 | ||||||
Series F Preferred Stock [Member] | Maximum [Member] | |||||||
Convertible Preferred Shares and Attached Warrants (Details) [Line Items] | |||||||
Fair value of warrants estimated price per share (in Dollars per share) | $ 1.43 | ||||||
Series G Preferred Stock [Member] | |||||||
Convertible Preferred Shares and Attached Warrants (Details) [Line Items] | |||||||
Expected term | 7 years 3 months 10 days | ||||||
Volatility, percentage | 107.66% | ||||||
Risk free rate, percentage | 3.87% | ||||||
Issuance of warrants adjusted (in Shares) | 3,007,519 | ||||||
Fair value of warrants estimated price per share (in Dollars per share) | $ 0.18 |
Convertible Preferred Shares _4
Convertible Preferred Shares and Attached Warrants (Details) - Schedule of Adjustment of Fair Value in Accordance - February 2021 Series A Convertible Preferred Shares and Warrants [Member] | 12 Months Ended |
Dec. 31, 2023 $ / shares | |
Series D [Member] | |
Schedule of Adjustment of Fair Value in Accordance [Line Items] | |
Expected term in years | 5 years |
Stock price (ADS) (in Dollars per share) | $ 148.5 |
Expected dividend yield | 0% |
Volatility | 43.05% |
Risk-free interest Rate | 0.63% |
Initial fair value per share (in Dollars per share) | $ 53.5 |
Series E [Member] | |
Schedule of Adjustment of Fair Value in Accordance [Line Items] | |
Expected term in years | 1 year |
Stock price (ADS) (in Dollars per share) | $ 151 |
Expected dividend yield | 0% |
Volatility | 50.45% |
Risk-free interest Rate | 0.21% |
Initial fair value per share (in Dollars per share) | $ 26.5 |
Series F [Member] | |
Schedule of Adjustment of Fair Value in Accordance [Line Items] | |
Expected term in years | 5 years |
Stock price (ADS) (in Dollars per share) | $ 148.5 |
Expected dividend yield | 0% |
Volatility | 43.05% |
Risk-free interest Rate | 0.63% |
Initial fair value per share (in Dollars per share) | $ 44.5 |
Stockholders_ Equity (Details)
Stockholders’ Equity (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |||||
Nov. 12, 2020 | Jun. 30, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Oct. 06, 2023 | Jun. 16, 2020 | |
Stockholders’ Equity [Line Items] | |||||||
Ordinary shares authorized | 450,000,000 | ||||||
Ordinary value per share (in Dollars per share) | $ 0.0001 | ||||||
Preferred shares par value per share (in Dollars per share) | 0.0001 | $ 0.0001 | |||||
Share capital authorized (in Dollars) | $ 50,000 | ||||||
Shares issued | 500,000,000 | ||||||
Par value (in Dollars per share) | $ 0.685 | ||||||
Preferred shares authorized | 2,500,000,000 | 2,500,000,000 | |||||
Ordinary shares outstanding | 17,399,176 | ||||||
Additional ordinary shares | 121,473 | ||||||
Warrant exercisable period | 3 years | ||||||
Exercise price (in Dollars per share) | $ 87.5 | ||||||
Aggregate amount (in Dollars) | $ 278,000 | ||||||
Exercise of august 2020 PIPE warrants | 770,833 | ||||||
Aggregate proceeds of investors (in Dollars) | $ 777,971 | ||||||
Warrant purchase | 14,583 | ||||||
Volatility risk free rate | 51.69% | ||||||
Risk free interest rate, percentage | 0.21% | ||||||
Recognized in expenses (in Dollars) | $ 382,000 | $ 382,000 | 382,000 | ||||
Call Option [Member] | |||||||
Stockholders’ Equity [Line Items] | |||||||
Strategic Cooperation Agreement | On January 6, 2021, the Company entered into a binding strategic cooperation framework agreement (the “Strategic Cooperation Agreement”) with Mr. Yao Yongjie (“Mr. Yao”) and engaged Mr. Yao as the chief technical adviser to provide technical advice and consultancy service in blockchain industry. The Company grants to Mr. Yao options (the “Call Options”) to subscribe for 6 million Class A ordinary shares, represented by ADSs at a price fixed at US$2 per Class A ordinary share. Within 24 months of the signing of the Strategic Cooperation Agreement, Mr. Yao may exercise the right to subscribe for such shares by tranches if the following conditions are met: (i) if the closing price of the shares in the Company exceeds US$150 per ADS for 3 consecutive trading days, Mr. Yao may exercise 2 million call options; (ii) if the closing price of the shares in the Company exceeds US$250 per ADS for 3 consecutive trading days, Mr. Yao may exercise 2 million call options; (iii) if the closing price of the shares in the Company exceeds US$375 per ADS for 3 consecutive trading days, Mr. Yao may exercise 2 million call options. | ||||||
Aggregate fair value (in Dollars) | $ 1,909,000 | ||||||
Aggregate proceeds (in Dollars) | $ 4,000,000 | $ 4,000,000 | |||||
Preferred Stock [Member] | |||||||
Stockholders’ Equity [Line Items] | |||||||
Preferred shares issued | 50,000,000 | ||||||
Preferred shares par value per share (in Dollars per share) | $ 0.0001 | ||||||
Share capital authorized (in Dollars) | $ 5,000,000 | ||||||
Preferred shares authorized | 2,500,000,000 | ||||||
Shares issued | 50,000,000,000 | ||||||
Excess share par value (in Dollars per share) | $ 0.0001 | ||||||
Preferred shares par value (in Dollars per share) | $ 0.0001 | ||||||
Warrants [Member] | |||||||
Stockholders’ Equity [Line Items] | |||||||
Exercise price (in Dollars per share) | $ 100 | ||||||
Aggregate amount (in Dollars) | $ 16,000 | ||||||
Private Placement [Member] | |||||||
Stockholders’ Equity [Line Items] | |||||||
Description of securities purchase agreement | the Company entered into a securities purchase agreement (as amended on September 29, 2020, and later amended and restated on October 19, 2020) with three investors (collectively, the “Investors”). Two tranches of transactions contemplated under the agreement were closed on August 3 and November 13, 2020, respectively. As a result, an aggregate of 30,000 ADSs and warrants to purchase an aggregate of 30,000 of the Company’s ADS at US$150.00 per ADS (the “August 2020 PIPE Warrants”) were issued at US$100.00 per ADS for an aggregate purchase price of US$3 million, and an aggregate of 3,000 ADSs were issued as origination fee. Issuance costs of approximately $469,000 were recorded as a charge to additional paid-in capital, including legal and accounting fees. In accordance with ASC 815-40, Derivatives and Hedging — Contracts in Entity’s Own Equity, warrants are classified within stockholders’ equity as “additional paid in capital” upon their issuance. The proceeds were allocated to ordinary shares and private investment in public equity warrants (“PIPE Warrants”) on the relative fair value of the securities in accordance with ASC 470-20-30. In aggregate, the net proceeds to the Company were approximately $2,531,000 classified within stockholders’ equity, including a subscription receivable of $508,750 classified in the other receivables in the consolidated balance sheets as of December 31, 2020 which was received in January 2021. | ||||||
Aggregate proceeds of investors (in Dollars) | $ 1,500,000 | ||||||
Fair value call option (in Dollars per share) | $ 0.01 | ||||||
Class A ordinary shares [Member] | |||||||
Stockholders’ Equity [Line Items] | |||||||
Ordinary shares authorized | 300,000,000 | ||||||
Ordinary shares authorized | 40,000,000,000 | 40,000,000,000 | |||||
Par value (in Dollars per share) | $ 0.0001 | ||||||
Shares issued | 179,250,754 | 48,761,596 | |||||
Ordinary shares authorized | 40,000,000,000 | ||||||
Ordinary shares outstanding | 179,250,754 | 48,761,596 | 7,647,962 | ||||
Additional ordinary shares | 29,591 | ||||||
Conversion rights description | Each Class A ordinary share was initially entitled to one vote, and is not convertible into Class B ordinary share under any circumstance; and each Class B ordinary share is entitled to ten votes, and is convertible into one Class A ordinary share at any time by the holder thereof, subject to adjustments for any subdivision or combination. On February 16, 2022 and January 13, 2023, the Company held General Meetings of Shareholders that approved the increase by the number of votes attached to Class B Ordinary Shares from ten (10) votes per Class B Ordinary Share to twenty five (25) votes per Class B Ordinary Share, and from twenty five (25) votes per Class B Ordinary Share to one hundred (100) votes per Class B Ordinary Share, respectively. | ||||||
Shares outstanding | 179,250,754 | 48,761,596 | |||||
Common Stock, Shares, Issued | 179,250,754 | 48,761,596 | |||||
Warrant purchase | 729,167 | ||||||
Class A ordinary shares [Member] | Call Option [Member] | |||||||
Stockholders’ Equity [Line Items] | |||||||
Ordinary shares issued | 2,000,000 | ||||||
Class A ordinary shares [Member] | Common Stock [Member] | |||||||
Stockholders’ Equity [Line Items] | |||||||
Ordinary shares authorized | 300,000,000 | ||||||
Exercise of august 2020 PIPE warrants | 770,833 | ||||||
Aggregate proceeds of investors (in Dollars) | $ 36 | ||||||
Class B Ordinary Shares [Member] | |||||||
Stockholders’ Equity [Line Items] | |||||||
Ordinary shares authorized | 150,000,000 | ||||||
Ordinary shares authorized | 7,500,000,000 | 7,500,000,000 | |||||
Par value (in Dollars per share) | $ 0.02 | ||||||
Preferred shares authorized | 50,000,000 | ||||||
Ordinary shares authorized | 7,500,000,000 | ||||||
Ordinary shares outstanding | 23,843,096 | 9,843,096 | 9,751,214 | ||||
Additional ordinary shares | 91,882 | ||||||
Aggregate shares | 1,933,740 | ||||||
Common Stock, Shares, Issued | 23,843,096 | 9,843,096 | |||||
Class B Ordinary Shares [Member] | Common Stock [Member] | |||||||
Stockholders’ Equity [Line Items] | |||||||
Ordinary shares authorized | 150,000,000 | ||||||
Exercise of august 2020 PIPE warrants | |||||||
Aggregate proceeds of investors (in Dollars) | |||||||
Class B Ordinary Shares [Member] | Preferred Stock [Member] | |||||||
Stockholders’ Equity [Line Items] | |||||||
Preferred shares par value per share (in Dollars per share) | $ 0.0001 | ||||||
Series A Preferred Shares [Member] | |||||||
Stockholders’ Equity [Line Items] | |||||||
Shares issued | |||||||
Shares outstanding | |||||||
Series A Preferred Shares [Member] | Preferred Stock [Member] | |||||||
Stockholders’ Equity [Line Items] | |||||||
Exercise of august 2020 PIPE warrants | |||||||
Aggregate proceeds of investors (in Dollars) | |||||||
Series B Preferred Shares [Member] | |||||||
Stockholders’ Equity [Line Items] | |||||||
Shares issued | |||||||
Shares outstanding | |||||||
Tranches one [Member] | |||||||
Stockholders’ Equity [Line Items] | |||||||
Fair value call option (in Dollars per share) | $ 0.47 | ||||||
Tranches Two [Member] | |||||||
Stockholders’ Equity [Line Items] | |||||||
Fair value call option (in Dollars per share) | 0.33 | ||||||
Tranches Three [Member] | |||||||
Stockholders’ Equity [Line Items] | |||||||
Fair value call option (in Dollars per share) | $ 0.16 | ||||||
Binomial Option Pricing Model [Member] | |||||||
Stockholders’ Equity [Line Items] | |||||||
Expected term | 2 years | ||||||
Stock price per share (in Dollars per share) | $ 97 | ||||||
Dividend yield | 0% | ||||||
Yun Tian [Member] | Class B Ordinary Shares [Member] | |||||||
Stockholders’ Equity [Line Items] | |||||||
Subscription shares | 3,876,481 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |||||
Dec. 14, 2023 | Oct. 31, 2023 | Oct. 06, 2023 | Mar. 03, 2022 | Dec. 01, 2020 | Jun. 30, 2020 | Dec. 31, 2023 | |
Stock-Based Compensation (Details) [Line Items] | |||||||
Ordinary shares issued | 33,818,770 | ||||||
Shares remained available for future awards | 1,818,770 | ||||||
Deferred shares granted to employees, non-employee directors and consultants | 2,450,000 | 1,486,504 | |||||
Fair value price per share (in Dollars per share) | $ 0.685 | ||||||
Aggregate amount (in Dollars) | $ 1,837,500 | $ 3,656,800 | |||||
Grant date aggregate (in Dollars per share) | $ 640,000 | ||||||
Total unrecognized compensation expense (in Dollars) | $ 266,000 | ||||||
2020 Share Incentive Plan [Member] | |||||||
Stock-Based Compensation (Details) [Line Items] | |||||||
Ordinary shares issued | 4,632,449 | ||||||
Total shares granted | 3,936,504 | ||||||
Shares remained available for future awards | 695,945 | ||||||
Common Stock [Member] | |||||||
Stock-Based Compensation (Details) [Line Items] | |||||||
Price per share (in Dollars per share) | $ 37.5 | ||||||
2020 Share Incentive Plan [Member] | |||||||
Stock-Based Compensation (Details) [Line Items] | |||||||
Fair value price per share (in Dollars per share) | $ 0.75 | $ 2.46 | |||||
Price per share (in Dollars per share) | $ 123 | ||||||
Class B Ordinary Shares | |||||||
Stock-Based Compensation (Details) [Line Items] | |||||||
Fair value price per share (in Dollars per share) | $ 0.02 | ||||||
Price per share (in Dollars per share) | $ 1 | ||||||
Class B Ordinary Shares | Director [Member] | |||||||
Stock-Based Compensation (Details) [Line Items] | |||||||
Deferred shares granted to employees, non-employee directors and consultants | 32,000,000 | ||||||
Share vested | 14,000,000 |
Stock-Based Compensation (Det_2
Stock-Based Compensation (Details) - Schedule of Share-Based Payments - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule of Share-Based Payments [Abstract] | |||
Compensation and benefits | $ 373,333 | ||
Communication and technology | 225,000 | 225,000 | |
Marketing | 206,250 | 206,250 | |
Professional fees | 243,750 | 243,750 | |
General and administrative | 243,750 | 243,750 | |
Total | $ 1,292,083 | $ 918,750 |
Income Taxes (Details)
Income Taxes (Details) | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Income Taxes [Line Items] | |
Applicable tax rate, percentage | 16.50% |
Assessable profits (in Dollars) | $ 2,000,000 |
Tax rate, percentage | 8.25% |
Hong Kong [Member] | |
Income Taxes [Line Items] | |
Applicable tax rate, percentage | 8.25% |
Percentage of tax rate | 16.50% |
Singapore [Member] | |
Income Taxes [Line Items] | |
Percentage of tax rate | 17% |
United States [Member] | |
Income Taxes [Line Items] | |
Percentage of tax rate | 21% |
Income Taxes (Details) - Schedu
Income Taxes (Details) - Schedule of Current and Deferred Portions of the Income Tax Expense - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule of Current and Deferred Portions of the Income Tax Expense [Abstract] | |||
Current | $ 1,058 | $ 3,419 | $ 53,239 |
Deferred | 1,128 | ||
Income tax expense | $ 1,058 | $ 3,419 | $ 54,367 |
Income Taxes (Details) - Sche_2
Income Taxes (Details) - Schedule of Reconciliation of the Difference Between the Expected Income Tax Expense - USD ($) | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Schedule of Reconciliation of the Difference Between the Expected Income Tax Expense [Abstract] | ||||
Income tax (benefit) expense at applicable statutory rate | [1] | $ (792,883) | $ (5,199,883) | $ 3,085 |
Nondeductible expenses | 939,078 | 328,511 | (398,706) | |
Impact of foreign tax rate differential | [2] | (1,047,950) | 3,117,801 | (1,208,726) |
Current year change in valuation allowance | (45,629) | 1,804,389 | 1,606,803 | |
Other | (4,304) | (47,399) | (1,328) | |
Prior year examination adjustment | 952,746 | 53,239 | ||
Reported income taxes | $ 1,058 | $ 3,419 | $ 54,367 | |
[1]The applicable statutory rate applied is based on the profits tax rates in Hong Kong. Effective for tax years ended on or after December 31, 2018, the applicable tax rate was 8.25% on the first HK $2,000,000 of assessable profits and 16.5% on any assessable profits above that threshold. The 8.25% tax rate can only be utilized by one entity in a controlled group. All other Hong Kong entities in the Group utilize the 16.5% tax rate. The Singapore entity within the Group has an applicable tax rate of 17.0%. The entity in the United States within the Group has a federal tax rate of 21.0%.[2] The Group also has entities domiciled in the British Virgin Islands and the Cayman Islands, but such entities are not subject to income or capital gains taxes. |
Income Taxes (Details) - Sche_3
Income Taxes (Details) - Schedule of Deferred Tax Assets (Liabilities) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Deferred tax asset | ||
Net operating loss carryforwards | $ 4,906,816 | $ 4,952,445 |
Less: Valuation allowance | (4,906,816) | (4,952,445) |
Net deferred tax asset |
Lease (Details)
Lease (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Lease [Abstract] | ||
Leases remaining terms | 1 year 1 month 17 days | 2 years 25 days |
Weighted-average discount rate | 2.87% | |
Operating lease liabilities | $ 599,000 | $ 561,000 |
Lease (Details) - Schedule of C
Lease (Details) - Schedule of Consolidated Balance Sheets - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Schedule of Consolidated Balance Sheets [Abstract] | ||
Operating lease right-of-use assets | $ 593,678 | $ 1,160,563 |
Operating lease liabilities | $ 620,920 | $ 1,220,236 |
Lease (Details) - Schedule of_2
Lease (Details) - Schedule of Consolidated Statements of Comprehensive (Loss)/Income - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Schedule of Consolidated Statements of Comprehensive Loss Income [Abstract] | ||
Operating lease cost | $ 594,228 | $ 699,909 |
Lease (Details) - Schedule of P
Lease (Details) - Schedule of Present Value of Operating Lease Payments | Dec. 31, 2023 USD ($) |
Schedule of Present Value of its Operating Lease Payments [Abstract] | |
2024 | $ 544,560 |
2025 | 83,130 |
Thereafter | |
Total undiscounted operating lease payments | 627,690 |
Less: imputed interest | (6,770) |
Present value of operating lease liabilities | $ 620,920 |
Regulatory Requirements (Detail
Regulatory Requirements (Details) - Schedule of Actual Amounts of Capital were Maintained | Dec. 31, 2023 USD ($) |
Regulatory Asset [Line Items] | |
Minimum Regulatory Capital Requirements | $ 7,158,093 |
Capital Levels Maintained | 21,669,797 |
Excess Net Capital | $ 14,511,704 |
Percent of requirement Maintained | 303% |
Lion International Securities Group Limited [Member] | |
Regulatory Asset [Line Items] | |
Minimum Regulatory Capital Requirements | $ 384,034 |
Capital Levels Maintained | 1,191,452 |
Excess Net Capital | $ 807,418 |
Percent of requirement Maintained | 310% |
Lion Futures Limited [Member] | |
Regulatory Asset [Line Items] | |
Minimum Regulatory Capital Requirements | $ 384,034 |
Capital Levels Maintained | 1,105,705 |
Excess Net Capital | $ 721,671 |
Percent of requirement Maintained | 288% |
Lion Asset Management Limited [Member] | |
Regulatory Asset [Line Items] | |
Minimum Regulatory Capital Requirements | $ 12,801 |
Capital Levels Maintained | 371,207 |
Excess Net Capital | $ 358,406 |
Percent of requirement Maintained | 2,900% |
BC Wealth Management Limited [Member] | |
Regulatory Asset [Line Items] | |
Minimum Regulatory Capital Requirements | $ 64,006 |
Capital Levels Maintained | 171,232 |
Excess Net Capital | $ 107,226 |
Percent of requirement Maintained | 268% |
Lion International Financial (Singapore) Pte. Ltd. [Member] | |
Regulatory Asset [Line Items] | |
Minimum Regulatory Capital Requirements | $ 757,691 |
Capital Levels Maintained | 794,148 |
Excess Net Capital | $ 36,457 |
Percent of requirement Maintained | 105% |
Lion Broker Limited (Cayman) [Member] | |
Regulatory Asset [Line Items] | |
Minimum Regulatory Capital Requirements | $ 5,555,528 |
Capital Levels Maintained | 18,036,054 |
Excess Net Capital | $ 12,480,526 |
Percent of requirement Maintained | 325% |
Segment Reporting (Details)
Segment Reporting (Details) | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Operating segments, description | Reportable segments are defined as an operating segment that either (a) exceeds 10% of revenue, or (b) reported profit or loss in absolute amount exceeds 10% of profit of all operating segments that did not report a loss or (c) exceeds 10% of the combined assets of all operating segments. |
Exceeds revenue percentage | 10% |
Operating segments percentage | 10% |
Assets of all operating segments percentage | 10% |
Number of operating segments | 4 |
Segment Reporting (Details) - S
Segment Reporting (Details) - Schedule of Operating Segments - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Segment Reporting Information [Line Items] | |||
Revenues (Losses) | $ 21,091,244 | $ (2,482,500) | $ 24,992,712 |
Commissions and fees | 3,418,398 | 3,198,934 | 3,317,692 |
Compensation and benefits | 4,099,852 | 3,620,506 | 4,069,203 |
Occupancy | 870,254 | 826,254 | 778,881 |
Communication and technology | 3,059,462 | 3,392,794 | 1,929,981 |
General and administrative | 1,432,148 | 1,228,572 | 2,016,582 |
Crypto currencies | 1,163,846 | ||
Professional fees | 3,407,365 | 3,716,839 | 3,836,817 |
Research and development | 7,115 | 4,693,995 | 1,205,040 |
Service fees | 2,352,832 | 1,956,785 | 3,574,579 |
Interest | 2,413,102 | 2,334,598 | 1,608,100 |
Depreciation and amortization | 1,795,011 | 2,032,386 | 916,916 |
Marketing | 4,196,795 | 3,743,567 | 913,675 |
Payment service charge | (12,407) | (181,249) | |
Change in fair value of warrant liabilities | (565,313) | (1,260,354) | 470,804 |
Impairment of fixed assets | 1,690,028 | ||
Impairment of cryptocurrencies | 293,619 | ||
Other operating expenses | 430,214 | 32,406 | 144,175 |
Total operating expenses | 26,917,235 | 31,488,522 | 25,765,042 |
Income (loss) from operations | (5,825,991) | (33,971,022) | (772,330) |
Total segment assets | 74,544,586 | 86,634,384 | 148,916,831 |
Futures and securities brokerage services [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues (Losses) | 2,570,495 | 3,284,729 | 2,800,543 |
Commissions and fees | 1,606,210 | 2,297,341 | 2,037,619 |
Compensation and benefits | 997,602 | 953,213 | 1,083,943 |
Occupancy | |||
Communication and technology | 471,918 | 459,263 | 437,629 |
General and administrative | 226,802 | 101,143 | 89,040 |
Crypto currencies | |||
Professional fees | 24,411 | 17,496 | 14,281 |
Research and development | |||
Service fees | |||
Interest | |||
Depreciation and amortization | 419 | 539 | 2,027 |
Marketing | 1,673 | 3,185 | 2,171 |
Payment service charge | |||
Change in fair value of warrant liabilities | |||
Impairment of fixed assets | |||
Impairment of cryptocurrencies | |||
Other operating expenses | 358,074 | 6,499 | 1,224 |
Total operating expenses | 3,687,109 | 3,838,679 | 3,667,934 |
Income (loss) from operations | (1,116,614) | (553,950) | (867,391) |
Total segment assets | 4,444,667 | 11,388,786 | 4,097,364 |
CFD trading [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues (Losses) | 19,326,140 | (6,694,312) | 8,700,009 |
Commissions and fees | 7,863 | 63,654 | |
Compensation and benefits | |||
Occupancy | 7,120 | 3,600 | 3,900 |
Communication and technology | 225,636 | 340,408 | 418,227 |
General and administrative | 33,492 | 57,372 | 393,005 |
Crypto currencies | |||
Professional fees | 50,432 | 106,533 | 136,755 |
Research and development | |||
Service fees | 433,734 | 470,791 | 449,765 |
Interest | |||
Depreciation and amortization | 576,944 | 800,000 | 640,326 |
Marketing | 3,909 | 54,000 | 70,000 |
Payment service charge | (78,562) | (274,616) | |
Change in fair value of warrant liabilities | |||
Impairment of fixed assets | |||
Impairment of cryptocurrencies | |||
Other operating expenses | 79,934 | ||
Total operating expenses | 1,331,267 | 1,762,005 | 1,980,950 |
Income (loss) from operations | 17,994,873 | (8,456,317) | 6,719,059 |
Total segment assets | 30,862,233 | 13,468,277 | 12,028,984 |
TRS trading [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues (Losses) | (2,342,395) | (595,871) | 13,182,716 |
Commissions and fees | 825,503 | 664,435 | 1,031,416 |
Compensation and benefits | |||
Occupancy | 7,120 | 3,600 | 3,900 |
Communication and technology | 225,636 | 340,408 | 698,262 |
General and administrative | 33,492 | 57,372 | 78,616 |
Crypto currencies | |||
Professional fees | 50,432 | 106,533 | 136,755 |
Research and development | |||
Service fees | 342,367 | 951,857 | 2,730,596 |
Interest | 1,880,282 | 1,675,946 | 804,621 |
Depreciation and amortization | 576,944 | 800,000 | 93,007 |
Marketing | 3,909 | 54,000 | |
Payment service charge | 66,155 | 93,367 | |
Change in fair value of warrant liabilities | |||
Impairment of fixed assets | |||
Impairment of cryptocurrencies | |||
Other operating expenses | |||
Total operating expenses | 3,945,685 | 4,720,306 | 5,670,540 |
Income (loss) from operations | (6,288,080) | (5,316,177) | 7,512,176 |
Total segment assets | 31,563,234 | 43,725,609 | 112,623,891 |
OTC Stock option trading [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues (Losses) | (798,725) | ||
Commissions and fees | |||
Compensation and benefits | |||
Occupancy | 7,120 | ||
Communication and technology | 225,636 | ||
General and administrative | 33,492 | ||
Crypto currencies | |||
Professional fees | 50,432 | ||
Service fees | 342,367 | ||
Depreciation and amortization | 576,944 | ||
Marketing | 3,909 | ||
Change in fair value of warrant liabilities | |||
Impairment of fixed assets | |||
Impairment of cryptocurrencies | |||
Other operating expenses | |||
Total operating expenses | 1,239,900 | ||
Income (loss) from operations | (2,038,625) | ||
Total segment assets | 1,801,095 | ||
Other [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues (Losses) | 2,335,729 | 1,522,954 | 309,444 |
Commissions and fees | 986,685 | 229,295 | 185,003 |
Compensation and benefits | 3,102,250 | 2,667,293 | 2,985,260 |
Occupancy | 848,894 | 819,054 | 771,081 |
Communication and technology | 1,910,636 | 2,252,715 | 375,863 |
General and administrative | 1,104,870 | 1,012,685 | 1,455,921 |
Crypto currencies | 1,163,846 | ||
Professional fees | 3,231,658 | 3,486,277 | 3,549,026 |
Research and development | 7,115 | 4,693,995 | 1,205,040 |
Service fees | 1,234,364 | 534,137 | 394,218 |
Interest | 532,820 | 658,652 | 803,479 |
Depreciation and amortization | 63,760 | 431,847 | 181,556 |
Marketing | 4,183,395 | 3,632,382 | 841,504 |
Payment service charge | |||
Change in fair value of warrant liabilities | (565,313) | (1,260,354) | 470,804 |
Impairment of fixed assets | 1,690,028 | ||
Impairment of cryptocurrencies | 293,619 | ||
Other operating expenses | 72,140 | 25,907 | 63,017 |
Total operating expenses | 16,713,274 | 21,167,532 | 14,445,618 |
Income (loss) from operations | (14,377,545) | (19,644,578) | (14,136,174) |
Total segment assets | $ 5,873,357 | $ 18,051,712 | $ 20,166,592 |
SPAC Warrants (Details)
SPAC Warrants (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2023 | Oct. 06, 2023 | Jun. 03, 2019 | |
SPAC Warrants (Details) [Line Items] | |||
Dividend share | 575 | ||
Sale price per share | $ 0.685 | ||
Initial public offering [Member] | |||
SPAC Warrants (Details) [Line Items] | |||
Warrants purchased | 11,500,000 | ||
Private Placement [Member] | |||
SPAC Warrants (Details) [Line Items] | |||
Warrants purchased | 5,375,000 | ||
Warrant price per share | $ 0.01 | ||
Underwriters [Member] | |||
SPAC Warrants (Details) [Line Items] | |||
Warrants purchased | 920,000 | ||
Class A ordinary shares [Member] | |||
SPAC Warrants (Details) [Line Items] | |||
Price per share | $ 11.5 | ||
Sale price per share | $ 0.0001 | ||
Warrant exercise price per share | 12 | ||
ADSs [Member] | |||
SPAC Warrants (Details) [Line Items] | |||
Sale price per share | $ 900 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event [Member] | Jan. 23, 2024 USD ($) $ / shares shares |
Subsequent Events [Line Items] | |
Option to purchase an additional | $ 1,000,000 |
Purchase warrant (in Shares) | shares | 8,850 |
Exercise price per share (in Dollars per share) | $ / shares | $ 1.13 |
Subsequent events, expiration period | 5 years |
Received net proceeds. | $ 940,000 |
Principal amount | $ 1,000,000 |