Overview of the Company’s Financial Performance

FDCTech, Inc. is a diversified global financial services company driven by proprietary trading technologies, regulatory licenses, and an experienced executive team. The company plans to acquire, integrate, transform, and scale legacy financial service companies to expand its reach in high-growth fintech markets like forex, stocks, ETFs, commodities, and digital assets.

For the fiscal year ending December 31, 2023, the company generated $12,754,900 in total revenue, a significant increase of over 101.81% compared to $6,453,732 in the prior year. This growth was primarily driven by the consolidation of revenue from the company’s acquisitions of Alchemy Markets Ltd. (AML) and Alchemy Prime Limited (APL), which added a new Investment and Margin Brokerage Business segment.

The company reported a net profit of $1,573,176 for fiscal 2023, compared to a net loss of $1,069,267 in the previous year. The shift to profitability was largely due to the strong performance of the new margin brokerage business, which generated $5,016,053 in revenue at a 77.15% gross margin.

Revenue and Profit Trends

FDCTech has three main business segments:

1. Technology & Software Development: This segment, which includes licensing proprietary technologies and providing customized software development and consulting services, generated $1,811,423 in revenue at a 98.76% gross margin in fiscal 2023, up from $626,600 in the prior year.

2. Wealth Management: Through the acquisition of AD Advisory Services Pty Ltd. (ADS) in December 2021, this segment contributed $5,927,424 in revenue at a 9.94% gross margin in fiscal 2023, compared to $5,827,732 in the prior year.

3. Investment and Margin Brokerage: The newly added segment from the acquisitions of AML and APL generated $5,016,053 in revenue at a 77.15% gross margin in the second half of fiscal 2023.

The significant increase in total revenue and the shift to profitability demonstrate the success of FDCTech’s acquisition strategy and the potential of its diversified business model. The company’s proprietary trading technologies and regulatory licenses have enabled it to integrate and scale legacy financial firms, unlocking synergies and improving their financial performance.

Strengths and Weaknesses

Key strengths of FDCTech include:

• Proprietary trading technologies: The company’s Condor suite of products, including the Condor Pro Multi-Asset Trading Platform, Condor Back Office, and Condor Pricing Engine, provide a competitive edge in the fintech market.
• Regulatory licenses: The company’s subsidiaries hold licenses in various jurisdictions, allowing them to operate in regulated markets.
• Experienced management team: The company’s leadership has a proven track record of successfully acquiring and integrating financial firms.
• Diversified business model: FDCTech’s three business segments provide revenue diversification and reduce reliance on any single revenue stream.

Potential weaknesses and risks include:

• Reliance on acquisitions: The company’s growth strategy is heavily dependent on its ability to identify, acquire, and successfully integrate target companies.
• Regulatory compliance: Operating in regulated financial markets requires strict adherence to evolving rules and regulations, which could increase costs and complexity.
• Geopolitical risks: The company’s relocation of its Russian operations to Turkey and Kazakhstan in response to the Russia-Ukraine conflict demonstrates its vulnerability to global political tensions.
• Concentration of revenue: In fiscal 2023, the top three customers accounted for 11.58% of total revenue, indicating a potential risk of customer concentration.

Outlook and Future Prospects

FDCTech’s financial performance in fiscal 2023 suggests that its acquisition-driven growth strategy is bearing fruit. The company’s diversified business model, with a mix of high-margin technology solutions and brokerage services, positions it well for continued expansion.

Going forward, the company plans to continue investing in sales, marketing, product development, and new technology solutions to serve its growing customer base. It expects capital expenditures to increase to $500,000 in the next 12 months to support this growth, including working capital, software development, and infrastructure upgrades.

The company’s strong cash position, with $31,316,461 in cash as of December 31, 2023, and access to private equity and capital markets, should provide the necessary resources to fund its operational and investment needs. However, the company acknowledges that its current cash balance may not be sufficient to sustain its growth, and it plans to raise additional capital through private placements and debt financing.

Overall, FDCTech’s financial results for fiscal 2023 demonstrate the success of its strategic initiatives and the potential for continued growth. By leveraging its proprietary technologies, regulatory licenses, and acquisition expertise, the company is well-positioned to capitalize on opportunities in the rapidly evolving fintech landscape.