v3.26.1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)
 6 Months Ended
Jun. 30, 2025
Accounting Policies [Abstract]  
SCHEDULE OF RESTATEMENT FINANCIAL STATEMENTS

 

   As Previously   As   Difference 
   Reported (A)   Restated (B)   (B) - (A) 
CONSOLIDATED BALANCE SHEETS               
As of June 30, 2025               
Cash and cash equivalents  $26,195,817   $2,316,508    (23,879,309)
Restricted cash (client funds, segregated)   -   $16,746,750    16,746,750 
Cash + Restricted (combined)  $26,195,817    19,063,258    (7,132,559)
Subscription receivable  $8,200,000   $-    (8,200,000)
Prepaid — current  $520,730   $499,635    (21,095)
Related party receivable   7,656,255   $6,854,477    (801,778)
Total Current assets  $42,663,622   $26,508,190    (16,155,432)
Prepaid — non-current  $-   $21,095    21,095 
Right of use (lease)  $623,399   $896,906    273,507 
Total assets  $47,520,040   $31,659,210    (15,860,830)
Liabilities               
Current liabilities:               
Line of credit  $260,238   $181,831   $(78,407)
Related party advances  $3,517,941   $2,785,566   $(732,375)
Client / Customer funds payable  $23,820,951   $16,746,750   $(7,074,201)
Operating lease liability, current  $408,186   $190,850   $(217,336)
Total Current liabilities  $30,461,587   $22,359,268   $(8,102,319)
Operating lease liability, non-current  $215,213   $432,547   $217,334 
Total liabilities  $31,276,548   $23,391,563   $(7,884,985)
Stockholders’ Equity (Deficit):               
Common stock   42,258    42,308   $50 
Additional paid-in capital (Common, Series A, Series B)   18,791,420    18,459,603   $(331,817)
Subscription receivable (contra-equity)   -    (8,000,000)  $(8,000,000)
Accumulated other comprehensive income (loss)   284,165    264,654   $(19,511)
Accumulated deficit   (2,916,646)   (2,541,213)  $375,433 
Total FDCTech stockholders’ equity   16,201,884    8,226,039   $(7,975,845)
Total liabilities & stockholders’ equity   47,520,040    31,659,210   $(15,860,830)

 

CONSOLIDATED STATEMENTS OF OPERATIONS               
Three Months Ended June 30, 2025               
Technology & software  $1,193,827   $1,178,215   $(15,612)
Total revenue  $5,435,403   $5,419,791   $(15,612)
Cost of sales               
Technology & software  $310,884   $-   $(310,884)
Brokerage (Trading)  $1,319,438   $1,630,322   $310,884 
Gross Profit  $2,321,310   $2,305,698   $(15,612)
Operating expenses:               
General and administrative  $2,144,328   $2,135,030   $(9,298)
Sales and marketing  $298,592  $293,937   $(4,655)
Total operating expenses  $2,486,196   $2,472,243   $(13,953)
Operating income (loss)  $(164,886)  $(166,545)  $(1,659)
Net income (loss)  $(423,797)  $(425,456)  $(1,659)

 

Six Months Ended June 30, 2025               
Technology & software  $2,007,574   $1,991,962    (15,612)
Total revenue  $11,412,351   $11,396,739   $(15,612)
Technology and software  $495,168   $-   $(495,168)
Brokerage (Trading)  $2,902,716   $3,397,884   $495,168 
Gross Profit  $5,180,869   $5,165,257   $(15,612)
Operating expenses:               
General and administrative  $4,284,598   $4,271,708   $(12,890)
Sales and marketing  $574,796   $570,141   $(4,655)
Total operating expenses  $4,941,502   $4,923,957   $(17,545)
Operating income (loss)  $239,367   $241,300   $1,933 
Other income (expense)  $(574,084)  $(368,103)  $205,981 
Total other income (expense)  $(558,616)  $(352,634)  $205,982 
Net income (loss)  $(319,249)  $(111,334)  $207,915 

 

CONSOLIDATED STATEMENTS OF CASH FLOWS               
Six Months Ended June 30, 2025               
Net income (loss)  $(319,249)  $(111,334)  $207,915 
Common stock issued for services  $49,299   $35,200   $(14,099)
Series B Preferred issued for services  $1   $14,100   $14,099 
Related party receivable  $(5,241,430)  $(5,172,027)  $69,403 
Operating lease  $(88,529)  $(88,531)  $2 
Right of use of assets (lease)  $88,529   $81,348   $(7,181)
Net cash used in operating activities  $(3,164,373)  $(2,894,238)  $270,135 
                
Investing Activities               
Effect of exchange rates (in investing per filed)  $337,435   $337,435   $- 
Changes in paid-in capital  $1,735,912   $1,529,884   $(206,028)
Net cash from investing activities  $1,945,360   $1,401,897   $(543,463)
Financing Activities               
Line of credit  $144,901   $66,494   $(78,407)
Related party advances  $2,506,553   $(5,207,274)  $(7,713,827)
Noncontrolling interest  $(8,989)  $(8,989)  $-
Net cash from financing activities  $2,633,441   $(5,158,793)  $(7,792,234)
Net increase (decrease) in cash  $1,414,428   $(6,313,699)  $(7,728,127)
Cash and cash equivalents, and restricted cash at beginning of the period  $24,781,389   $25,376,957   $595,568 
Cash and cash equivalents, and restricted cash at end of the period  $26,195,817   $19,063,258   $(7,132,559)
The restatement also reclassified the effect of exchange rate changes on cash, which was previously presented within investing activities, to a separate line item. These changes affected classification within the statements of cash flows and did not change the Company’s reported total cash.

 

    As Previously     As     Difference  
    Reported (A)     Restated (B)     (B) - (A)  
CONSOLIDATED BALANCE SHEETS                        
As of June 30, 2024                        
Current assets:                        
Cash and cash equivalents   $ 31,806,857     $ 1,951,165   $   (29,855,692 )
Restricted cash (client funds, segregated)   $ -     $ 29,855,692   $   29,855,692  
Cash + Restricted (combined)   $ 31,806,857     $ 31,806,857   $   -  
Subscription receivable   $ 8,200,000     $ -   $   (8,200,000 )
Total Current assets   $ 41,412,956     $ 33,212,956   $   (8,200,000 )
Right of use (lease)   $ -     $ 1,052,867   $   1,052,867  
Total assets   $ 47,256,601     $ 40,109,468   $   (7,147,133 )
Liabilities                        
Current liabilities:                        
Operating lease liability, current   $ -     $ 255,654   $   255,654  
Total Current liabilities   $ 32,558,552     $ 32,814,206   $   255,654  
Operating lease liability, non-current   $ -     $ 623,398   $   623,398  
Total liabilities   $ 33,094,579     $ 33,973,631   $   879,052  
Stockholders’ Equity (Deficit):                        
Common stock   $ 39,058     $ 39,108   $   50  
Additional paid-in capital (Common + Series B)   $ 16,964,234     $ 17,018,934   $   54,700  
Subscription receivable (contra-equity)   $ -     $ (8,200,000 ) $   (8,200,000 )
Accumulated deficit   $ (2,834,639 )   $ (2,715,574 ) $   119,065  
Total FDCTech stockholders’ equity (deficit)   $ 14,149,627     $ 6,123,442   $   (8,026,185 )
Total liabilities & stockholders’ equity (deficit)   $ 47,256,601     $ 40,109,468   $   (7,147,133 )

 

CONSOLIDATED STATEMENTS OF OPERATIONS               
Three Months Ended June 30, 2024               
General and administrative  $2,522,394   $2,476,139    (46,255)
Total operating expenses  $3,349,906   $3,303,651    (46,255)
Operating income (loss)  $(1,118,534)  $(1,072,279)   46,255 
Net income (loss)  $(1,045,275)  $(999,020)   46,255 

 

                
Six Months Ended June 30, 2024               
General and administrative  $4,821,528   $4,702,463    (119,065)
Total operating expenses  $5,736,253   $5,617,188    (119,065)
Operating income (loss)  $(1,162,780)  $(1,043,715)   119,065 
Net income (loss)  $(211,830)  $(92,765)   119,065 

 

                
CONSOLIDATED STATEMENTS OF CASH FLOWS               
Six Months Ended June 30, 2024               
Software amortization  $26,167    -    (26,167)
Accounts receivable allowance  $22,382    -    (22,382)
Gross accounts receivable  $980,618   $1,003,000    22,382 
Operating lease  $(39,683)  $839,369    879,052 
Right of use of assets (lease)  $39,683   $(1,013,184)   (1,052,867)
Net cash provided by (used in) operating activities  $438,368   $412,201    (26,167)
Capitalized software (investing)  $136,477   $162,644    26,167 
Net cash from investing activities  $700,358   $971,465    271,107 
Noncontrolling interest (financing)  $(5,706)  $20,838    26,544 
Net cash from financing activities  $(648,330)  $(648,330)   - 
Effect of exchange rates  $(244,940)  $(244,940)   -
 
SCHEDULE OF CASH EQUIVALENTS AND RESTRICTED CASH

The following table reconciles the components of cash, cash equivalents, and restricted cash reported on the consolidated balance sheet to the total amounts shown in the consolidated statement of cash flows:

 

 

   June 30, 2025 (Unaudited;
Restated)		   December 31, 2024 (Audited;
Restated)		 
Cash and cash equivalents  $2,316,508   $13,850,168 
Restricted cash — client funds (segregated)   16,746,750    11,526,789 
Total cash, cash equivalents, and restricted cash  $19,063,258   $25,376,957 
SCHEDULE OF EXCHANGE RATE

The exchange rate at the reporting end date:

 

   June 30,
2025		   December 31,
2024		 
USD: AUD  $1.5193   1.6168 
USD: EUR  $0.8484    0.9662 
USD: GBP  $0.7282    0.7990 

 

Average exchange rate for the period:

 

   Q1 2025   Q2 2025 
USD: AUD  $1.5939    1.5605 
USD:EUR  $0.9507    0.8814 
USD: GBP  $0.7944    0.7489