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FDCTech Inc (FDCT+129.67%) has submitted its Form 10-Q filing for the quarterly period ended September 30, 2024.
The filing reports that FDCTech Inc generated $18,178,864 in revenue for the nine months ended September 30, 2024, representing a 161.60% increase compared to the same period in the previous year. The revenue was primarily driven by three business segments: Technology and Software Development, Wealth Management, and Investment and Margin Brokerage Business.
The Technology and Software Development segment reported revenue of $1,086,844 and a gross margin of 88.99%. The Wealth Management segment, operated through AD Advisory Services Pty Ltd, contributed $4,922,551 in revenue with a gross margin of 9.36%. The Investment and Margin Brokerage Business, which includes operations in Malta and the UK, reported $12,169,469 in revenue with a gross margin of 47.71%.
FDCTech Inc reported a net loss of $861,395 for the nine months ended September 30, 2024, compared to a net income of $320,829 in the previous year. The increase in general and administrative expenses, which amounted to $7,575,616, contributed to the net loss.
The company reported a cash balance of $27,989,417 as of September 30, 2024, with a working capital surplus of $8,557,179. The increase in working capital was attributed to the acquisition of Alchemy Markets Ltd and Alchemy Prime Ltd.
FDCTech Inc's management plans to continue its acquisition strategy, focusing on integrating and scaling legacy financial service companies using its proprietary Condor trading technologies. The company aims to enhance its revenue from its diversified portfolio and become cash flow positive.
The filing also describes changes in the company's board of directors and its engagement with various accounting firms throughout the period. The company reported material weaknesses in its internal controls over financial reporting due to inadequate segregation of duties and insufficient written policies.
FDCTech Inc has outlined its plans to address these weaknesses by enhancing its board's size and composition, consulting with third-party professionals, and implementing additional layers of review in its financial reporting process.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the FDCTech Inc quarterly 10-Q report dated December 31, 2024. To report an error, please email earnings@qz.com.