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Nature of Business
 6 Months Ended
Jun. 30, 2024
Nature of Business [Abstract]  
NATURE OF BUSINESS

NOTE 1 – NATURE OF BUSINESS

 

Business

 

Next Technology Holdings Inc (formerly known as WeTrade Group, Inc) was incorporated in the State of Wyoming on March 28, 2019. We currently pursue two corporate strategies. One business strategy is to continue providing software development services, and the other strategy is to acquire and hold bitcoin.

 

Software development

 

We provide AI-enabled software development services to our customers, which include developing, designing, and implementing various SAAS software solutions for businesses of all types, including industrial and other businesses.

 

Bitcoin Acquisition Strategy

 

Our bitcoin acquisition strategy generally involves acquiring bitcoin with our liquid assets that exceed working capital requirements, and from time to time, subject to market conditions, issuing debt or equity securities or engaging in other capital raising transactions with the objective of using the proceeds to purchase bitcoin.

 

We view our bitcoin holdings as long-term holdings and expect to continue to accumulate bitcoin. We have not set any specific target for the amount of bitcoin we seek to hold, and we will continue to monitor market conditions in determining whether to engage in additional financings to purchase additional bitcoin.

 

This overall strategy also contemplates that we may (i) periodically sell bitcoin for general corporate purposes, including to generate cash for treasury management or in connection with strategies that generate tax benefits in accordance with applicable law, (ii) enter into additional capital raising transactions that are collateralized by our bitcoin holdings, and (iii) consider pursuing additional strategies to create income streams or otherwise generate funds using our bitcoin holdings.

 

We believe that, due to its limited supply, bitcoin offers the opportunity for appreciation in value if its adoption increases and has the potential to serve as a hedge against inflation in the long-term.

 

The following table presents a roll-forward of our bitcoin holdings, including additional information related to our bitcoin purchases, and digital asset impairment losses during the period:

 

   Digital asset
original cost
basis		   Gain from
digital asset		   Market
Value of
digital asset		   Approximate
number of
Bitcoin held		 
Balance on December 31, 2023   24,990,000    10,147,576    35,137,576    833 
Digital asset purchase   
-
    
-
    
-
    
-
 
Fair value change during the period   
-
    15,595,778    15,595,778    
-
 
Balance on June 30, 2024   24,990,000    25,743,354    50,733,354    833 

 

Restatement of previously issued financial statement

 

The Company discovered error in amount due to related parties, common stock, tax expenses and deferred tax liabilities during the audit review for the period ended June 30, 2024 that $594,140 of amount due to related parties has been converted to equity and under-provision of tax expenses and deferred tax liabilities of $10,530 for the six month period ended June 30, 2024.

 

Effects of the restatement is as follows:

 

Consolidated statement of operation for the six months period ended June 30,2024  Previously Reported (Not reviewed)   Adjustment   As Restated 
Tax expenses  $2,290,818   $10,530   $2,301,348 
Net profit  $12,629,816   $(10,530)  $12,619,286 

 

 

Consolidated balance sheet as of June 30,2024  Previously Reported (Not reviewed)   Adjustment   As Restated 
Amount due to related parties  $1,775,732   $(594,140)  $1,181,592 
Deferred tax liabilities  $2,290,818   $10,530   $2,301,348 
Total liabilities  $5,934,111   $(583,610)  $5,350,501 
Common stock  $71,124,650   $594,140   $71,718,790 
Accumulated profit  $995,258   $(10,530)  $984,728 
Total equity  $72,119,795   $583,610   $72,703,405 

 

Consolidated statement of cash flows for the six months period ended June 30,2024  Previously Reported (Not reviewed)   Adjustment   As Restated 
Cash flows from operating activities:            
Net profit  $12,629,816   $(10,530)  $12,619,286 
Deferred tax liabilities  $2,290,818   $10,530   $2,301,348 
                
Cash flows from financing activities:               
Shareholders’ loan  $634   $(594,140)  $(593,506)
Proceeds from stock issuance   
-
   $594,140   $594,140