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Discontinued Operations | 12 Months Ended
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Dec. 31, 2023
Discontinued Operations [Abstract] |
DISCONTINUED OPERATIONS | NOTE 5 – DISCONTINUED OPERATIONS Disposition of Alpha Mind At the acquisition date as mentioned in NOTE 4, the Company expected to sell Alpha Mind within one year and the other criteria required by ASC 205-20 and that the business of Alpha Mind would likely be classified as held for sale within a short period. Thus, the business of Alpha Mind is reported as discontinued operation on acquisition. On November 22, 2023, the Company entered into an Equity Acquisition Agreement with Burgeon Capital Inc, a BVI company (“BCI” and together with MMTEC, the “Sellers”), FLJ Group Limited, a Cayman Islands company (the “Buyer” or “FLJ”), and Alpha Mind. Pursuant to the Purchase Agreement, the Sellers agreed to sell, and FLJ agreed to purchase, all of Alpha Mind’s issued and outstanding ordinary shares for the aggregate purchase price of $180,000,000, of which $153,000,000 was attributable to the Company’s interests in Alpha Mind. The transaction was closed on December 28, 2023. In connection with the disposition of Alpha Mind, the Company recorded a gain on disposal of $53,898,677, which is included in the “Net gain on sale of discontinued operations, net of applicable income taxes” of the consolidated statements of operations as part of income from discontinued operations for the year ended December 31, 2023. Alpha Mind had a net loss of $548,677 for the period from acquisition date June 7, 2023 through December 28, 2023, the date of disposal, which is included in the “Gain (Loss) from discontinued operations, net of applicable income taxes” of the consolidated statements of operations as part of loss from discontinued operations for the year ended December 31, 2023. Disposition of MMBD Advisory and MM Capital, MM SPC and Fundex SPC On November 18, 2023, the Company disposed all the outstanding securities of MMBD Advisory to Top Fintech Inc., for a consideration of $1,000, and disposed all the outstanding securities of MM Capital to Capital Jasmine Ltd., for a consideration of $500. MM Fund SPC and Fundex SPC are the two wholly-owned subsidiaries of MM Capital, they were disposed with MM Capital at the same time. The transaction was closed on November 18, 2023. As a result, the result of operations of MMBD Advisory and MM Capital, MM SPC and Fundex SPC is reported as discontinued operations under the guidance of ASC 205. Reconciliation of the carrying amounts of major classes of assets and liabilities from discontinued operations in the consolidated balance sheets as of December 31, 2022:
|  | December 31, |
|  | 2022 |
CURRENT ASSETS: |  |  |
Cash and cash equivalents |  | $ | 12,705 |
Accounts receivable, net |  |  | 95,688 |
Total current assets of discontinued operations |  |  | 108,393 |
Total assets of discontinued operations |  | $ | 108,393 |
CURRENT LIABILITIES: |  |  |  |
Accrued liabilities and other payables |  |  | 24,655 |
Total liabilities of discontinued operations |  | $ | 24,655 |
Reconciliation of the amounts of income and losses from discontinued operations in the consolidated statements of operations and comprehensive income/ (loss) for the year ended December 31, 2023, 2022 and 2021:
|  | For the Year Ended |  |  | For the Year Ended |  |  | For the Year Ended |
|  | December 31, 2023 |  |  | December 31, 2022 |  |  | December 31, 2021 |
REVENUE |  | $ | - |  |  | $ | 25,782 |  |  | $ | 84,416 |
COST OF REVENUE |  |  | - |  |  |  | - |  |  |  | - |
GROSS PROFIT |  |  | - |  |  |  | 25,782 |  |  |  | 84,416 |
OPERATING EXPENSES: |  |  |  |  |  |  |  |  |  |  |  |
Selling and marketing |  |  | - |  |  |  | - |  |  |  | - |
General and administrative |  |  |  |  |  |  |  |  |  |  |  |
Payroll and related benefits |  |  | - |  |  |  | - |  |  |  | - |
Professional fees |  |  | 1,528 |  |  |  | 1,220 |  |  |  | - |
Other general and administrative |  |  | 812 |  |  |  | 5,559 |  |  |  | 17,864 |
Total Operating Expenses |  |  | 2,340 |  |  |  | 6,779 |  |  |  | 17,864 |
NET INCOME (LOSS) FROM DISCONTINUED OPERATIONS |  | $ | (2,340 | ) |  | $ | 19,003 |  |  | $ | 66,552 |
As of November 18, 2023, the assets and liabilities of discontinued operations and reconciliation of gain on sale of discontinued operations of MMBD Advisory and MM Capital, MM SPC and Fundex SPC is as follows:
|  | November 18, |
|  | 2023 |
CURRENT ASSETS: |  |  |
Cash and cash equivalents |  | $ | 15,280 |
Accounts receivable, net |  |  | 95,774 |
Total current assets of discontinued operations |  |  | 111,054 |
Total assets of discontinued operations |  | $ | 111,054 |
CURRENT LIABILITIES: |  |  |  |
Accrued liabilities and other payables |  |  | 29,655 |
Total current liabilities of discontinued operations |  |  | 29,655 |
Total liabilities of discontinued operations |  | $ | 29,655 |
Total consideration received |  |  | 1,500 |
Less: carrying amount of net assets |  |  | 81,399 |
Total loss on sale of discontinued operations |  | $ | (79,899 | )

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- Definition The entire disclosure related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 205 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//205-20/tableOfContent Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 360 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//360/tableOfContent + Details
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