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Qdm Intl Inc (QDMI) has submitted its Form 10-Q filing for the quarterly period ended December 31, 2024.
The filing includes financial statements showing an increase in revenue to $1,607,455 from $1,009,716 in the same quarter the previous year. This increase was attributed to new partnerships with insurance companies offering higher commission rates.
Cost of sales decreased to $246,913 from $606,779, primarily due to reduced referral fees following regulatory changes by the Hong Kong Insurance Authority.
The company reported a gross profit of $1,360,542, compared to $402,937 in the previous year, with the increase driven by lower cost of sales.
General and administrative expenses rose to $452,524 from $200,271, mainly due to hiring additional employees and increased professional fees.
Net income for the quarter was $706,615, up from $192,139 in the previous year. This increase was primarily due to higher gross profit and controlled cost of sales.
Cash provided by operating activities was $1,500,242, while cash used in financing activities was $720,721, largely due to repayment to related parties.
As of December 31, 2024, Qdm Intl Inc had cash and cash equivalents totaling $5,937,744. The company maintains compliance with Hong Kong's insurance broker capital requirements.
The filing also details the issuance of Series B preferred stock to the CEO, Huihe Zheng, in exchange for debt cancellation, increasing his voting power to 81%.
Qdm Intl Inc identified a material weakness in its internal controls over financial reporting, citing a lack of segregation of duties and formal documentation.
The company continues to focus on expanding its insurance brokerage services in Hong Kong and Mainland China, despite challenges in the economic and political environment.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Qdm Intl Inc quarterly 10-Q report dated February 14, 2025. To report an error, please email earnings@qz.com.