UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
For the quarterly period ended
For the transition period from ____ to ____
Commission file number:
(Exact name of registrant as specified in its charter)
| (State or other jurisdiction of | (I.R.S. Employer | |
| incorporation or organization) | Identification Number) |
(Address of principal executive offices including zip code)
(Registrant’s telephone number, including area code)
N/A
(Former name, former address and former fiscal year, if changed since last report)
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||
Indicate by check mark whether the registrant
(1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months
(or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements
for the past 90 days. ☒
Indicate by check mark whether the registrant
has submitted electronically every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405
of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). ☒
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
| Large accelerated filer | ☐ | Accelerated filer | ☐ |
| ☒ | Smaller reporting company | ||
| Emerging growth company | |||
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as
defined in Rule 12b-2 of the Exchange Act). ☐ Yes
| Class | Outstanding on November 14, 2025 | |
| Common Stock, $0.001 par value per share |
TABLE OF CONTENTS
| PART I. FINANCIAL INFORMATION | 1 | |
| Item 1. | Financial Statements | 1 |
| Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations | 39 |
| Item 3. | Quantitative and Qualitative Disclosures about Market Risk | 46 |
| Item 4. | Controls and Procedures | 46 |
| PART II. OTHER INFORMATION | 47 | |
| Item 1. | Legal Proceedings | 47 |
| Item 1A. | Risk Factors | 47 |
| Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds | 47 |
| Item 3. | Defaults upon Senior Securities | 47 |
| Item 4. | Mine Safety Disclosure | 47 |
| Item 5. | Other Information | 48 |
| Item 6. | Exhibits | 48 |
| SIGNATURES | 49 | |
i
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
FUTURE FINTECH GROUP INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
| September 30,
2025 | December 31,
2024 | |||||||
| CURRENT ASSETS | ||||||||
| Cash and cash equivalents | ||||||||
| Short - term investment | ||||||||
| Accounts receivable, net | ||||||||
| Other receivables, net | ||||||||
| Investment Funds | ||||||||
| Advances to suppliers and other current assets, net | ||||||||
| Loan receivables | ||||||||
| Amount Due from Related Parties | ||||||||
| Assets related to discontinued operation-current | ||||||||
| TOTAL CURRENT ASSETS | ||||||||
| Property and equipment, net | ||||||||
| Right of use assets - operation lease | ||||||||
| Intangible assets, net | ||||||||
| Debt investment | ||||||||
| Assets related to discontinued operation-Non current | ||||||||
| TOTAL ASSETS | ||||||||
| LIABILITIES | ||||||||
| CURRENT LIABILITIES | ||||||||
| Accounts payable | ||||||||
| Accrued expenses and other payables | ||||||||
| Advances from customers | ||||||||
| Convertible notes payables | ||||||||
| Lease liability - current | ||||||||
| Amounts due to related parties | ||||||||
| Liability related to discontinued operation | ||||||||
| TOTAL CURRENT LIABILITIES | ||||||||
| - | ||||||||
| NON-CURRENT LIABILITIES | ||||||||
| Other non-current liabilities | ||||||||
| Lease liability-non-current | ||||||||
| TOTAL NON-CURRENT LIABILITIES | ||||||||
| TOTAL LIABILITIES | ||||||||
| STOCKHOLDERS’ EQUITY | ||||||||
| FUTURE FINTECH GROUP INC, Stockholders’ equity | ||||||||
| Common stock, $ | ||||||||
| Additional paid-in capital | ||||||||
| Statutory reserve | ||||||||
| Accumulated deficits | ( | ) | ( | ) | ||||
| Accumulated other comprehensive income (loss) | ( | ) | ( | ) | ||||
| Total FUTURE FINTECH GROUP INC. stockholders’ equity | ||||||||
| Non-controlling interests | ( | ) | ||||||
| TOTAL STOCKHOLDERS’ EQUITY | ||||||||
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
1
FUTURE FINTECH GROUP INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
(Unaudited)
| For the Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Revenue | ||||||||||||||||
| Cost of revenues-third party | ||||||||||||||||
| Cost of revenues-related party | ||||||||||||||||
| Gross profit | ||||||||||||||||
| Operating Expenses | ||||||||||||||||
| General and administrative expenses | ||||||||||||||||
| Stock-based compensation | ||||||||||||||||
| Selling expenses | ||||||||||||||||
| Allowance for credit losses/doubtful accounts | ||||||||||||||||
| Total operating expenses | ||||||||||||||||
| Loss from operations | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
| Other income (expenses) | ||||||||||||||||
| Interest income | ||||||||||||||||
| Interest expenses | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
| Amortization of debt issuance costs | ( | ) | ( | ) | ||||||||||||
| Gain on Debt Restructuring | ||||||||||||||||
| Other income(expenses) net | ( | ) | ||||||||||||||
| Total other income (expenses) | ( | ) | ||||||||||||||
| Loss from Continuing Operations before Income Tax | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
| Income tax provision | ||||||||||||||||
| Deferred income tax | ||||||||||||||||
| Loss from Continuing Operations | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
| Discontinued Operations | ||||||||||||||||
| Loss from discontinued operations | ( | ) | ( | ) | ||||||||||||
| Gain (Loss) on disposal of discontinued operations | ( | ) | ||||||||||||||
| NET LOSS | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
| Less: Net Income (Loss) attributable to non-controlling interests of discontinued operations | ( | ) | ( | ) | ||||||||||||
| Less: Net Loss attributable to non-controlling interests of continued operations | ||||||||||||||||
| Net loss attibutable to Future Fintech Group, Inc. | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
| Other comprehensive income (loss) | ||||||||||||||||
| Loss from continuing operations | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
| Foreign currency translation - Continuing Operations | ||||||||||||||||
| Comprehensive Loss - Continuing Operations | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
| Income (loss) from discontinued operations | - | ( | ) | ( | ) | |||||||||||
| Foreign currency translation - Discontinued Operations | - | ( | ) | ( | ) | ( | ) | |||||||||
| Comprehensive Income ( Loss) - Discontinued Operations | - | ( | ) | ( | ) | |||||||||||
| Comprehensive Loss | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
| Comprehensive income (loss) attributable to non-controlling interests | ||||||||||||||||
| Comprehensive income (loss) attributable to non-controlling interests of discontinue | ( | ) | ( | ) | ||||||||||||
| COMPREHENSIVE LOSS ATTRIBUTABLE TO Future Fintech Group, Inc. | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
| Earnings per share: | ||||||||||||||||
| Basic earnings per share from continuing operation | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
| Basic earnings per share from discontinued operation | ( | ) | ( | ) | ||||||||||||
| ( | ) | ( | ) | ( | ) | ( | ) | |||||||||
| Diluted Earnings per share: | ||||||||||||||||
| Diluted earnings per share from continuing operation | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
| Diluted earnings per share from discontinued operation | ( | ) | ( | ) | ||||||||||||
| ( | ) | ( | ) | ( | ) | ( | ) | |||||||||
| Weighted average number of shares outstanding | ||||||||||||||||
| Basic | ||||||||||||||||
| Diluted | ||||||||||||||||
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
2
Future
Fintech Group, Inc.
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
(Unaudited)
Three Months ended September 30, 2024
| Additional | Accumulative other | |||||||||||||||||||||||||||||||
| Common stock | paid-in | Statutory | Accumulated | comprehensive | Non-controlling | |||||||||||||||||||||||||||
| Shares | Amount | capital | reserve | Deficits | income | interests | Total | |||||||||||||||||||||||||
| Balance at June 30, 2024 | ( | ) | ( | ) | ( | ) | ||||||||||||||||||||||||||
| Conversion of debt | ||||||||||||||||||||||||||||||||
| Net loss from continuing operation | - | ( | ) | ( | ) | |||||||||||||||||||||||||||
| Net loss from discontinued operations | - | ( | ) | ( | ) | ( | ) | |||||||||||||||||||||||||
| Disposition of discontinued operation | - | ( | ) | ( | ) | ( | ) | |||||||||||||||||||||||||
| Foreign currency translation adjustment | - | |||||||||||||||||||||||||||||||
| Balance at September 30, 2024 | ( | ) | ( | ) | ( | ) | ||||||||||||||||||||||||||
Three Months ended September 30, 2025
| Additional | Accumulative other | |||||||||||||||||||||||||||||||
| Common stock | paid-in | Statutory | Accumulated | comprehensive | Non-controlling | |||||||||||||||||||||||||||
| Shares | Amount | capital | reserve | Deficits | income | interests | Total | |||||||||||||||||||||||||
| Balance at June 30, 2025 | ( | ) | ( | ) | ||||||||||||||||||||||||||||
| Issuance of common stocks-cash | ||||||||||||||||||||||||||||||||
| Issuance of common stocks-conversion of debt | ||||||||||||||||||||||||||||||||
| Issuance of common stocks - Debt Restructuring | ||||||||||||||||||||||||||||||||
| Pending Equity Settlement | - | ( | ) | ( | ) | |||||||||||||||||||||||||||
| Pre-delivery ordinary shares for conversion of convertible notes payables | ( | ) | ||||||||||||||||||||||||||||||
| Net loss from continuing operation | - | ( | ) | ( | ) | |||||||||||||||||||||||||||
| Foreign currency translation adjustment | - | |||||||||||||||||||||||||||||||
| Balance at September 30, 2025 | ( | ) | ( | ) | ||||||||||||||||||||||||||||
3
Nine Months ended September 30, 2024
| Additional | Accumulative other | |||||||||||||||||||||||||||||||
| Common stock | paid-in | Statutory | Accumulated | comprehensive | Non-controlling | |||||||||||||||||||||||||||
| Shares | Amount | capital | reserve | Deficits | income | interests | Total | |||||||||||||||||||||||||
| Balance at December 31, 2023 | ( | ) | ( | ) | ( | ) | ||||||||||||||||||||||||||
| Net loss from continuing operation | - | ( | ) | ( | ) | |||||||||||||||||||||||||||
| Net loss from discontinued operations | - | ( | ) | ( | ) | ( | ) | |||||||||||||||||||||||||
| Issuance of common stocks-cash | ||||||||||||||||||||||||||||||||
| Conversion of debt | ||||||||||||||||||||||||||||||||
| Disposition of discontinued operation | - | ( | ) | |||||||||||||||||||||||||||||
| Foreign currency translation adjustment | - | |||||||||||||||||||||||||||||||
| Balance at September 30, 2024 | ( | ) | ( | ) | ( | ) | ||||||||||||||||||||||||||
Nine Months ended September 30, 2025
| Additional | Accumulative other | |||||||||||||||||||||||||||||||
| Common stock | paid-in | Statutory | Accumulated | comprehensive | Non-controlling | |||||||||||||||||||||||||||
| Shares | Amount | capital | reserve | Deficits | income | interests | Total | |||||||||||||||||||||||||
| Balance at December 31, 2024 | ( | ) | ( | ) | ( | ) | ||||||||||||||||||||||||||
| Issuance of common stocks-cash | ||||||||||||||||||||||||||||||||
| Issuance of common stocks-conversion of debt | ||||||||||||||||||||||||||||||||
| Issuance of common stocks - Debt Restructuring | ||||||||||||||||||||||||||||||||
| Net loss from continuing operations | - | ( | ) | ( | ) | |||||||||||||||||||||||||||
| Effect to rounding fractional shares into whole shares upon reverse stock split | ( | ) | ||||||||||||||||||||||||||||||
| Share-based payments-omnibus equity plan | ||||||||||||||||||||||||||||||||
| Pending Equity Settlement | - | |||||||||||||||||||||||||||||||
| Pre-delivery ordinary shares for conversion of convertible notes payables | ( | ) | ||||||||||||||||||||||||||||||
| Foreign currency translation adjustment | - | |||||||||||||||||||||||||||||||
| Disposition of discontinued operation | - | ( | ) | |||||||||||||||||||||||||||||
| Balance at September 30, 2025 | ( | ) | ( | ) | ||||||||||||||||||||||||||||
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
4
FUTURE FINTECH GROUP INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
| For the Nine Months Ended September 30, | ||||||||
| 2025 | 2024 | |||||||
| Cash Flows from Operating Activities: | ||||||||
| Net loss | ( | ) | ( | ) | ||||
| Net income (loss) from discontinued operation | ( | ) | ||||||
| Net loss from continuing operation | ( | ) | ( | ) | ||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
| Depreciation | ||||||||
| Amortization of debt issuance costs | ||||||||
| Amortization | ||||||||
| Allowance for credit losses/doubtful accounts | ||||||||
| Share-based payments | ||||||||
| Gain on Debt Restructuring | ( | ) | ||||||
| Investment loss | ||||||||
| Interest expenses related to convertible note | ||||||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable | ||||||||
| Other receivable | ( | ) | ( | ) | ||||
| Advances to suppliers and other current assets | ( | ) | ( | ) | ||||
| Operating lease assets and liabilities | ( | ) | ( | ) | ||||
| Accounts payable | ( | ) | ||||||
| Accrued expenses and other payables | ( | ) | ||||||
| Advances from customers | ( | ) | ||||||
| Other non-current liabilities | ||||||||
| Net Cash Used in Operating Activities from Continuing Operations | ( | ) | ( | ) | ||||
| Net Cash Provided by Operating Activities from Discontinued Operations | ||||||||
| Cash Flows from Investing Activities: | ||||||||
| Additions to property and equipment | ( | ) | ||||||
| Debt investment | ( | ) | ||||||
| Repayment of Short term Investment | ||||||||
| Payment for loan receivable | ( | ) | ||||||
| Repayment of loan receivable | ||||||||
| Reserve for business acquisition | ( | ) | ||||||
| Net Cash Used in Investing Activities from Continuing Operations | ( | ) | ( | ) | ||||
| Net Cash Used in Investing Activities from Discontinued Operations | ||||||||
| Cash Flows from Financing Activities: | ||||||||
| Proceeds from the issuance of common stock, net of issuance costs | ||||||||
| Proceeds received from investors for convertible notes payable of pre-delivery ordinary shares | ||||||||
| Proceeds from convertible notes payables | ||||||||
| Payment made for amounts due from related parties, net | ( | ) | ( | ) | ||||
| Proceeds from (Repayment of) amounts due to related parties, net | ( | ) | ||||||
| Net Cash Provided by Financing Activities from Continuing Operations | ||||||||
| Net Cash Provided by Financing Activities from Discontinued Operations | ||||||||
| Effect of Exchange Rate Changes on Cash | ( | ) | ||||||
| Net Increase (Decrease) in Cash and Restricted Cash | ( | ) | ||||||
| Cash and Restricted Cash at Beginning of Period | ||||||||
| Cash and Restricted Cash at End of Period | ||||||||
| Less: Cash and cash equivalents from the discontinued operations, end of Period | ||||||||
| Cash and cash equivalents, from the continuing operations end of Period | ||||||||
| SUPPLEMENTARY DISCLOSURE OF SIGNIFICANT NON-CASH TRANSACTION | ||||||||
| Issuance of common stocks for conversion of debts | ||||||||
| Debt settlement by issuance of common stock | ||||||||
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
5
FUTURE FINTECH GROUP INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
1. CORPORATE INFORMATION
Future FinTech Group Inc. (the “Company”) is a holding company incorporated under the laws of the State of Florida. The Company has historically been engaged in the production and sale of fruit juice concentrates (including fruit purees and fruit juices), fruit beverages (including fruit juice beverages and fruit cider beverages) in the PRC. Due to drastically increased production costs and tightened environmental laws in China, the Company has transformed its business from fruit juice manufacturing and distribution to financial technology related service businesses. The main business of the Company includes supply chain financing services and trading in China. The Company also expanded into brokerage and investment banking business in Hong Kong. The Company had a contractual arrangement with a VIE E-Commerce Tianjin in China, which has generated minimal revenue and business since 2021 due to the negative impact caused by COVID-19. The Company started the process to close it down in November 2023 and completed deregistration and dissolution of the VIE with local authorities on March 7, 2024.
On March 27, 2025, Future FinTech Group Inc. (the
“Company”) filed with the Florida Secretary of State’s office Articles of Amendment (the “Amendment”) to
amend its Second Amended and Restated Articles of Incorporation, as amended (“Articles of Incorporation”). As a result of
the Amendment, the Company has authorized and approved a
The reverse stock split would be reflected in the Company’s September 30, 2025 and December 31, 2024 statements of changes in stockholders’ equity, and in per share data for all periods presented.
6
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of presentation
The unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and the rules and regulations of the Securities and Exchange Commission. In the opinion of management, the unaudited financial statements have been prepared on the same basis as the annual financial statements and reflect all adjustments, which include only normal recurring adjustments, necessary to present fairly the financial position as of September 30, 2025 and the results of operations and cash flows for the periods ended September 30, 2025 and 2024. The financial data and other information disclosed in these notes to the interim financial statements related to these periods are unaudited. The results for the three and nine months ended September 30, 2025 are not necessarily indicative of the results to be expected for any subsequent periods or for the entire year ending December 31, 2025. The balance sheet at December 31, 2024 has been derived from the audited financial statements at that date.
Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States have been condensed or omitted pursuant to the Securities and Exchange Commission’s rules and regulations. These unaudited financial statements should be read in conjunction with the Company’s audited financial statements and notes thereto for the year ended December 31, 2024 as included in the Company’s Annual Report on Form 10-K.
Discontinued Operations
On March 7, 2024, Chain Cloud Mall Network and Technology (Tianjin) Co., Limited was dissolved and deregistered.
On September 4, 2024, Tianjin Future Private Equity
Fund Management Partnership (Ltd Partnership) was dissolved and deregistered. The loss on disposal was $
On October 18, 2024, Nice Talent Asset Management
Limited (“NTAM”) was disposed of for a consideration of $
On December 6, 2024, FTFT Super Computing Inc.
was disposed of for a consideration of US$
On February 3, 2025, FTFT UK LIMITED, FTFT Finance
UK Limited, Future Fintech Digital Number One US, LP, Future Fintech Digital Number One Offshore, LLC(Cayman), Future Fintech Digital
Number One GP, LLC (USA), FTFT Digital Number One, Ltd.(Cayman), Future FinTech Labs Inc, Future Fintech Digital Capital, FTFT CAPITAL
INVESTMENTS, DigiPay FinTech Limited, DCON DigiPay Limited-JPN and Global Key Shared Mall Ltd were disposed of for a consideration of
US$
Based on the disposal plan and in accordance with ASC 205-20, the Company presented the operating results from these operations as a discontinued operation.
7
Segment Information Reclassification
The Company classified business segments into Trading Commission and Consulting service, Fast-Moving Consumer Goods (FMCG), and Supply Chain Financing and Trading.
Uses of Estimates in the Preparation of Financial Statements
The Company’s condensed consolidated financial statements have been prepared in accordance with US GAAP and this requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and reported amounts of revenue and expenses during the reporting period. The significant areas requiring the use of management estimates include, but are not limited to, the expected credit losses for receivables, estimated useful life and residual value of property, plant and equipment, impairment of long-lived assets, provision for staff benefit, recognition and measurement of deferred income taxes and valuation allowance for deferred tax assets. Although these estimates are based on management’s knowledge of current events and actions management may undertake in the future, actual results may ultimately differ from those estimates and such differences may be material to the Company’s condensed consolidated financial statements.
Going Concern
The Company’s financial statements are prepared assuming that the Company will continue as a going concern.
The Company incurred operating losses and had
negative operating cash flows and may continue to incur operating losses and generate negative cash flows as the Company implements its
future business plan. The Company’s operating losses from continuing operations amounted to $
The ability of the Company to continue as a going concern is dependent upon its ability to successfully execute its new business strategy and eventually attain profitable operations. The accompanying financial statements do not include any adjustments that may be necessary if the Company is unable to continue as a going concern.
8
Impairment of Long-Lived Assets
In accordance with the ASC 360-10, Accounting for the Impairment or Disposal of Long-Lived Assets, long-lived assets, such as property, plant and equipment and purchased intangibles subject to amortization are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable, or it is reasonably possible that these assets could become impaired as a result of technological or other industrial changes. The determination of recoverability of assets to be held and used is made by comparing the carrying amount of an asset to future undiscounted cash flows to be generated by the assets.
If such assets are considered to be impaired, the impairment to be recognized is measured as the amount by which the carrying amount of the assets exceeds the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount or fair value less cost to sell.
Fair Value of Financial Instruments
The Company has adopted FASB ASC Topic on Fair Value Measurements and Disclosures (“ASC 820”), which defines fair value, establishes a framework for measuring fair value in GAAP, and expands disclosures about fair value measurements. ASC 820 establishes a three-level valuation hierarchy of valuation techniques based on observable and unobservable input, which may be used to measure fair value and include the following:
Level 1 - Quoted prices in active markets for identical assets or liabilities.
Level 2 - Input other than Level 1 that is observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other input that is observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.
Level 3 - Unobservable input that is supported by little or no market activity and that is significant to the fair value of the assets or liabilities.
The Company’s cash and cash equivalents and restricted cash and short-term investments are classified within level 1 of the fair value hierarchy because they are valued using quoted market prices.
Earnings Per Share
Under ASC 260-10, Earnings Per Share, basic EPS excludes dilution for Common Stock equivalents and is calculated by dividing net income (loss) available to common stockholders by the weighted-average number of Common Stock outstanding for the period.
9
Diluted EPS is calculated by using the treasury stock method, assuming conversion of all potentially dilutive securities, such as stock options and warrants. Under this method, (i) exercise of options and warrants is assumed at the beginning of the period and shares of Common Stock are assumed to be issued, (ii) the proceeds from exercise are assumed to be used to purchase Common Stock at the average market price during the period, and (iii) the incremental shares (the difference between the number of shares assumed issued and the number of shares assumed purchased) are included in the denominator of the diluted EPS computation. The numerators and denominators used in the computations of basic and diluted EPS are presented in the following table.
For the nine months ended September 30, 2025:
| Income (Loss) | Share | Pre-share amount | ||||||||||
| Loss from continuing operations attributable to Future Fintech Group, Inc. | $ | ( | ) | $ | ( | ) | ||||||
| Income from discontinued operations attributable to Future Fintech Group, Inc. | $ | $ | ||||||||||
| Basic EPS: | ||||||||||||
| Loss to common stockholders from continuing operations | $ | ( | ) | $ | ( | ) | ||||||
| Income available to common stockholders from discontinued operations | $ | $ | ||||||||||
| Diluted EPS: | ||||||||||||
| Warrants | ||||||||||||
| Diluted loss per share is calculated by taking net loss, divided by the diluted weighted average common shares outstanding. Diluted net loss per share equals basic net loss per share because the effect of securities convertible into common shares is anti-dilutive from continuing operations attributable to Future Fintech Group, Inc. | $ | ( | ) | $ | ( | ) | ||||||
| Diluted earnings per share is calculated by taking net income, divided by the diluted weighted average common shares outstanding from discontinued operations | $ | $ | ||||||||||
For the nine months ended September 30, 2024:
| Loss | Share | Pre-share amount | ||||||||||
| Loss from continuing operations attributable to Future Fintech Group, Inc. | $ | ( | ) | $ | ( | ) | ||||||
| Loss from discontinued operations attributable to Future Fintech Group, Inc. | $ | ( | ) | $ | ( | ) | ||||||
| Basic EPS: | ||||||||||||
| Loss to common stockholders from continuing operations | $ | ( | ) | $ | ( | ) | ||||||
| Loss available to common stockholders from discontinued operations | $ | ( | ) | $ | ( | ) | ||||||
| Diluted EPS: | ||||||||||||
| Warrants | ||||||||||||
| Diluted loss per share is calculated by taking net loss, divided by the diluted weighted average common shares outstanding. Diluted net loss per share equals basic net loss per share because the effect of securities convertible into common shares is anti-dilutive from continuing operations attributable to Future Fintech Group, Inc. | $ | ( | ) | $ | ( | ) | ||||||
| Diluted loss per share is calculated by taking net loss, divided by the diluted weighted average common shares outstanding from discontinued operations | $ | ( | ) | $ | ( | ) | ||||||
10
For the three months ended September 30, 2025:
| Loss | Share | Pre-share amount | ||||||||||
| Loss from continuing operations attributable to Future Fintech Group, Inc. | $ | ( | ) | $ | ( | ) | ||||||
| Loss from discontinued operations attributable to Future Fintech Group, Inc. | $ | $ | ||||||||||
| Basic EPS: | ||||||||||||
| Loss to common stockholders from continuing operations | $ | ( | ) | $ | ( | ) | ||||||
| Loss to common stockholders from discontinued operations | $ | $ | ||||||||||
| Diluted EPS: | ||||||||||||
| Warrants | ||||||||||||
| Diluted loss per share is calculated by taking net loss, divided by the diluted weighted average common shares outstanding. Diluted net loss per share equals basic net loss per share because the effect of securities convertible into common shares is anti-dilutive from continuing operations attributable to Future Fintech Group, Inc. | $ | ( | ) | $ | ( | ) | ||||||
| Diluted loss per share is calculated by taking net loss, divided by the diluted weighted average common shares outstanding from discontinued operations | $ | $ | ||||||||||
For the three months ended September 30, 2024:
| Loss | Share | Pre-share amount | ||||||||||
| Loss from continuing operations attributable to Future Fintech Group, Inc. | $ | ( | ) | $ | ( | ) | ||||||
| Loss from discontinued operations attributable to Future Fintech Group, Inc. | $ | ( | ) | $ | ( | ) | ||||||
| Basic EPS: | ||||||||||||
| Loss available to common stockholders from continuing operations | $ | ( | ) | $ | ( | ) | ||||||
| Loss available to common stockholders from discontinued operations | $ | ( | ) | $ | ( | ) | ||||||
| Diluted EPS: | ||||||||||||
| Warrants | ||||||||||||
| Diluted loss per share is calculated by taking net loss, divided by the diluted weighted average common shares outstanding. Diluted net loss per share equals basic net loss per share because the effect of securities convertible into common shares is anti-dilutive | $ | ( | ) | $ | ( | ) | ||||||
| Diluted loss per share is calculated by taking net loss, divided by the diluted weighted average common shares outstanding. | $ | ( | ) | $ | ( | ) | ||||||
11
Cash and Cash Equivalents
Cash and cash equivalents included cash on hand and demand deposits placed with banks or other financial institutions, which are unrestricted as to withdrawal and use and with an original maturity of three months or less.
Deposits in banks in the PRC are only insured
by the government up to RMB
The Company believes the probability of a bank failure, causing loss to the Company, is remote.
Cash that is restricted as to withdrawal for use or pledged as security is reported separately on the face of the unaudited condensed consolidated balance sheets, and is not included in the total cash and cash equivalents in the unaudited condensed consolidated statements of cash flows.
Receivable and Credit Losses
Accounts receivable are recognized and carried at the original invoice amounts less an allowance for any uncollectible amount. The Company has a policy of reserving for uncollectible accounts based on the Company’s best estimate of the amount of probable credit losses in the Company’s existing accounts receivable. The Company performs ongoing credit evaluations of the Company’s customers and maintains an allowance for potential bad debts if required.
Other receivables, and loan receivables are recognized and carried at the initial amount when occurred less an allowance for credit losses. The Company has a policy of reserving for uncollectible accounts based on the Company’s best estimate of the amount of probable impairment losses in the Company’s existing receivables.
Allowances for credit losses are maintained for expected credit losses resulting from the Company’s customers’ inability to make required payments. The allowances are based on the Company’s regular assessment of various factors, including the credit-worthiness and financial condition of specific customers, historical experience with bad debts and customer deductions, receivables aging, current economic conditions, reasonable and supportable forecasts of future economic conditions, and other factors that may affect the Company’s ability to collect from customers. The Company maintains an allowance for credit losses in accordance with ASC Topic 326, Credit Losses (“ASC 326”) and records the allowance for credit losses as an offset to accounts receivable and contract assets, and the estimated credit losses charged to the allowance is classified as “Allowance for (net recovery of) credit losses/doubtful accounts” in the unaudited condensed consolidated statements of comprehensive income (loss). The Company determines whether an allowance for doubtful accounts is required by evaluating specific accounts where information indicates the customers may have an inability to meet financial obligations. In these cases, the Company uses assumptions and judgment, based on the best available facts and circumstances, to record a specific allowance for those customers against amounts due to reduce the receivable to the amount expected to be collected. These specific allowances are re-evaluated and adjusted as additional information is received. The amounts calculated are analyzed to determine the total amount of the allowance. The Company may also record a general allowance as necessary.
Direct write-offs are taken in the period when the Company has exhausted the Company’s efforts to collect overdue and unpaid receivables or otherwise evaluate other circumstances that indicate that the Company should abandon such efforts.
The Company has assessed its accounts receivable
including credit terms and corresponding all its accounts receivables as of September 30, 2025. Allowance for credit losses for accounts
receivable amounted to $
12
Revenue Recognition
The Company applies the five steps defined under ASC 606: (i) identify the contract(s) with a customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations in the contract, and (v) recognize revenue when (or as) the entity satisfies a performance obligation. The Company assesses its revenue arrangements against specific criteria in order to determine if it is acting as principal or agent. Revenue arrangements with multiple performance obligations are divided into separate distinct goods or services. The Company allocates the transaction price to each performance obligation based on the relative standalone selling price of the goods or services provided. Revenue is recognized upon the transfer of control of promised goods or services to a customer. Control is generally transferred when the Company has a present right to payment and title and the significant risks and rewards of ownership of products or services are transferred to its customers.
The Company does not make any significant judgment in evaluating when control is transferred. Revenue is recorded net of value-added tax.
Revenue recognition is as follows:
Sales of fast-moving consumer goods
The Company operates an e-commerce platform specializing
in fast-moving consumer goods. For sales transacted through the Company’s online stores in mainland China, the standard return policy
permits customers to return eligible products within seven days of purchase. Historically, customer returns were immaterial. Revenue from
sales of fast-moving consumer goods was $
Provision of trading commission and consulting service
The Company provides stock trading and consulting
services and charges commission and service fees to its customers. The Company recognizes revenue when such services was rendered to the
customer. Revenue from provision of trading commission and consulting service was $
Sales of coal, aluminum ingots, sand and steel
The Company recognizes revenue when the receipt
of merchandise is confirmed by the customers, which is the point that the title of the goods is transferred to the customer. Revenue from
sales of coal, aluminum ingots, sand and steel was $
13
Property and Equipment
Property and equipment are stated at cost less accumulated depreciation and any impairment losses. Depreciation is computed using the straight-line method over the useful lives of the assets. Major renewals and betterments are capitalized and depreciated; maintenance and repairs that do not extend the life of the respective assets are expensed as incurred. Upon disposal of assets, the cost and related accumulated depreciation are removed from the accounts and any gain or loss is included in the unaudited condensed consolidated statements of operations and comprehensive income (loss).
The Company estimated that the residual value
of the Company’s property and equipment ranges from
| Office equipment, fixtures and furniture | ||
| Vehicle | ||
| Leasehold improvements |
Construction in progress includes property, plant and equipment in the course of construction for production or for its own use purposes. Construction in progress is carried at cost less any recognized impairment loss. Construction in progress is classified to the appropriate category of property, plant and equipment when completed and ready for intended use. Depreciation of these assets, on the same basis as other property assets, commences when the assets are ready for their intended use.
Intangible Assets
Acquired intangible assets are recognized based
on their cost to the Company, which generally includes the transaction costs of the asset acquisition, and no gain or loss is recognized
unless the fair value of noncash assets given as consideration differs from the assets’ carrying amounts on the Company’s
book. These assets are amortized over their useful lives if the assets are deemed to have a finite life and they are reviewed for impairment
by testing for recoverability whenever events or changes in circumstances indicate that its carrying amount may not be recoverable. The
fair value of an intangible asset is the amount that would be determined if the entity used the assumptions that market participants would
use if they were pricing the intangible asset. The useful life of the Company’s intangible assets is
14
Foreign Currency and Other Comprehensive Income (Loss)
The financial statements of the Company’s foreign subsidiaries are measured using the local currency as the functional currency; however, the reporting currency of the Company is the USD. Assets and liabilities of the Company’s foreign subsidiaries have been translated into USD using the exchange rate at the balance sheet dates, while equity accounts are translated using the historical exchange rate.
The exchange rate the Company used to convert
RMB to USD was
The exchange rate the Company used to convert
HKD to USD was
Translation adjustments are reported separately and accumulated in a separate component of equity (cumulative translation adjustment).
Government subsidies
Government subsidies primarily consist of financial subsidies received from provincial and local governments for operating a business in their jurisdictions and compliance with specific policies promoted by the local governments. For certain government subsidies, there are no defined rules and regulations to govern the criteria necessary for companies to receive such benefits, and the amount of financial subsidy is determined at the discretion of the relevant government authorities. The government subsidies of operating nature with no further conditions to be met are recorded of operating expenses in “Other income” in the unaudited condensed consolidated statements of operations and comprehensive income (loss) when received.
The amendments in this update require disclosures about transactions with a government that have been accounted for by analogizing to a grant or contribution accounting model to increase transparency about (1) the types of transactions, (2) the accounting for the transactions, and (3) the effect of the transactions on an entity’s financial statements.
15
Income Taxes
The Company uses the asset and liability method of accounting for income taxes in accordance with ASC Topic 740, “Income Taxes.” Under this method, income tax expense is recognized for the amount of: (i) taxes payable or refundable for the current year and (ii) deferred tax consequences of temporary differences resulting from matters that have been recognized in an entity’s financial statements or tax returns. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the results of operations in the period that includes the enactment date. A valuation allowance is provided to reduce the deferred tax assets reported if based on the weight of the available positive and negative evidence, it is more likely than not some portion or all of the deferred tax assets will not be realized.
ASC Topic 740-10-30 clarifies the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements and prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. ASC Topic 740-10-25 provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition. The Company has no material uncertain tax positions for any of the reporting periods presented.
Short-term investments
Short-term investments consist primarily of investments
in fixed deposits with original maturities between three months and one year and certain investments in wealth management products and
other investments that the Company has the intention to redeem within one year. Fair valued or carried at amortized costs. As of September
30, 2025 and December 31, 2024, the short-term investments amounted to $
Long-term investments
Long-term investments consist primarily of investments
in debt investment with original maturities between three years and more. Fair valued or carried at amortized costs. As of September 30,
2025 and December 31, 2024, the long-term investments amounted to $
16
Lease
The Company follows ASU No. 2016-02, Leases (Topic 842), or ASC 842. The Company determines if an arrangement is a lease or contains a lease at lease inception. For operating leases, the Company recognizes a right-of-use (“ROU”) asset and a lease liability based on the present value of the lease payments over the lease term on the unaudited condensed consolidated balance sheets at commencement date. As most of the Company’s leases do not provide an implicit rate, the Company estimates the incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. The incremental borrowing rate is estimated to approximate the interest rate on a collateralized basis with similar terms and payments, and in economic environments where the leased asset is located. The ROU assets also include any lease payments made, net of lease incentives. Lease expense is recorded on a straight-line basis over the lease term. The Company’s leases often include options to extend and lease terms include such extended terms when the Company is reasonably certain to exercise those options. Lease terms also include periods covered by options to terminate the leases when the Company is reasonably certain not to exercise those options.
Share-based compensation
The Company awards share options and other equity-based instruments to its employees, directors and consultants (collectively “share-based payments”). Compensation cost related to such awards is measured based on the fair value of the instrument on the grant date. The Company recognizes the compensation cost over the period the employee is required to provide service in exchange for the award, which generally is the vesting period. The amount of cost recognized is adjusted to reflect the expected forfeiture prior to vesting. When no future services are required to be performed by the employee in exchange for an award of equity instruments, and if such award does not contain a performance or market condition, the cost of the award is expensed on the grant date. The Company recognizes compensation cost for an award with only service conditions that has a graded vesting schedule on a straight-line basis over the requisite service period for the entire award, provided that the cumulative amount of compensation cost recognized at any date at least equals the portion of the grant-date value of such award that is vested at that date.
New Accounting Pronouncements
In December 2023, the FASB issued ASU No. 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures”. This ASU requires additional quantitative and qualitative income tax disclosures to enable financial statements users better assess how an entity’s operations and related tax risks and tax planning and operational opportunities affect its tax rate and prospects for future cash flows. The ASU is effective for annual reporting periods beginning after December 15, 2024, with early adoption permitted and can be applied on either a prospective or retroactive basis. The Company adopted this guidance effective July 1, 2025 and the Company is currently evaluating the impact of adopting this ASU on its financial statements.
17
In November 2024, the FASB issued ASU No. 2024-03, “Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures. This ASU requires entities to 1. disclose amounts of (a) purchase of inventory, (b) employee compensation, (c) depreciation, (d) intangible asset amortization, and, (e) depreciation, depletion, and amortization recognized as part of oil-and gas-producing activities, 2. include certain amounts that are already required to be disclosed under current Generally Accepted Accounting Principles in the same disclosures as other disaggregation requirements, 3. disclose a qualitative description of the amounts remaining in relevant expense captions that are not necessarily disaggregated quantitatively, and 4. disclose the total amount of selling expenses, in annual reporting periods, an entity’s definition of selling expense. The ASU is effective for annual reporting periods beginning after December 15, 2026 and interim reporting periods beginning after December 15, 2027. Additionally, in January 2025, the FASB issued ASU No. 2025-01 to clarify the effective date of ASU 2024-03. The standard provides guidance to expand disclosures related to the disaggregation of income statement expenses. The standard requires, in the notes to the financial statements, disclosure of specified information about certain costs and expenses which includes purchases of inventory, employee compensation, depreciation, and intangible asset amortization included in each relevant expense caption. This guidance is effective for fiscal years beginning after December 15, 2026, and interim periods within annual reporting periods beginning after December 15, 2027, on a retrospective or prospective basis, with early adoption permitted. The Company is in the process of evaluating the impact of adopting this new guidance on its consolidated financial statements.
In November 2024, the FASB issued ASU No. 2024-04, “Debt—Debt with Conversion and Other Options (Subtopic 470-20): Induced Conversions of Convertible Debt Instruments”. The amendments provide guidance on accounting for induced conversions of convertible debt instruments. The amendments are effective for annual reporting periods beginning after December 15, 2025, and interim reporting periods within those annual reporting periods. Early adoption is permitted for entities that have adopted the amendments in ASU 2020-06. Early adoption is permitted. The Company plans to adopt this guidance effective July 1, 2026 and the Company is currently evaluating the impact of adopting this ASU on its financial statements.
In May 2025, the FASB issued ASU No. 2025-03, “Business Combinations (Topic 805) and Consolidation (Topic 810): Accounting Acquirer in a Business Combination Involving a Variable Interest Entity”. This ASU clarifies that when a business that is a VIE is acquired primarily with equity interests, the determination of the accounting acquirer should follow ASC 805 rather than defaulting to the primary beneficiary under ASC 810. The standard is effective for fiscal years beginning after December 15, 2026, including interim periods within those fiscal years. Early adoption is permitted. The Company plans to adopt this guidance effective July 1, 2027 and the Company is currently evaluating the impact of adopting this ASU on its financial statements.
In May 2025, the FASB issued ASU No. 2025-04, “Compensation—Stock Compensation (Topic 718) and Revenue from Contracts with Customers (Topic 606)”: Clarifications to Share-Based Consideration Payable to a Customer. This ASU clarifies how entities account for share-based consideration payable to a customer. The ASU requires customer awards with vesting conditions tied to purchases to be treated as performance conditions, eliminates the forfeiture policy election, and states that the variable consideration constraint under ASC 606 does not apply to these awards. The standard is effective for annual periods beginning after December 15, 2026, with early adoption permitted. The Company plans to adopt this guidance effective July 1, 2027 and the Company is currently evaluating the impact of adopting this ASU on its financial statements.
18
In July 2025, the FASB issued ASU No. 2025 05, “Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets”. This ASU provides a practical expedient for all entities related to the estimation of expected credit losses for current accounts receivable and current contract assets that arise from transactions accounted for under Topic 606. The standard is effective for annual periods beginning after December 15, 2025. Early adoption of ASU 2025-05 is permitted and should be applied prospectively. The Company plans to adopt this guidance effective July 1, 2026 and the Company is currently evaluating the impact of adopting this ASU on its financial statements.
Management does not believe that any other recently issued, but not yet effective accounting pronouncements, if adopted, would have a material impact on the accompanying unaudited condensed consolidated financial statements.
3. ACCOUNTS RECEIVABLE, NET
Accounts receivable, net, consist of the following:
| September 30, | December 31, | |||||||
| 2025 | 2024 | |||||||
| Supply Chain Financing/Trading | $ | $ | ||||||
| Trading Commission and Consulting service | ||||||||
| Fast-Moving Consumer Goods | ||||||||
| Total accounts receivable, net | $ | $ | ||||||
The following table sets forth the Company’s concentration of accounts receivable, net of specific allowances for credit losses.
| September 30, | December 31, | |||||||
| 2025 | 2024 | |||||||
| Debtor A | % | % | ||||||
| Debtor B | % | % | ||||||
| Debtor C | % | % | ||||||
| Total accounts receivable, net | % | % | ||||||
4. OTHER RECEIVABLES, NET
As of September 30, 2025, the balance of other
receivables, net was $
As of December 31, 2024, the balance of other receivables, net was
$
19
5. INVESTMENT FUNDS
As of September 30, 2025, the balance of investment
funds was $
6. LOAN RECEIVABLES
As of September 30, 2025, the balance of loan
receivables was $
On July 14, 2022, Future Private Equity Fund Management
(Hainan) Co., Limited entered into a “Loan Agreement” with a third party. Pursuant to the Loan Agreement, Future Private Equity
Fund Management (Hainan) Co., Limited loaned an amount of $
On
December 8, 2023, Future Private Equity Fund Management (Hainan) Co., Limited entered into a “Loan Agreement” with a third
party. Pursuant to the Loan Agreement, Future Private Equity Fund Management (Hainan) Co., Limited loaned an amount of $
As of December 31, 2024, the balance of loan receivables
was $
On July 14, 2022, Future Private Equity Fund Management
(Hainan) Co., Limited entered into a “Loan Agreement” with a third party. Pursuant to the Loan Agreement, Future Private Equity
Fund Management (Hainan) Co., Limited loaned an amount of $
On
December 8, 2023, Future Private Equity Fund Management (Hainan) Co., Limited entered into a “Loan Agreement” with a third
party. Pursuant to the Loan Agreement, Future Private Equity Fund Management (Hainan) Co., Limited loaned an amount of $
On August 29, 2024, Future Supply Chain (Xi’an)
Co., Ltd entered into a “Loan Agreement” with a third party. Pursuant to the Loan Agreement, Future Supply Chain (Xi’an)
Co., Ltd loaned an amount of $
20
7. ADVANCES TO SUPPLIERS AND OTHER CURRENT ASSETS, NET
The amount of advances to suppliers and other current assets, net consisted of the following:
| September 30, | December 31, | |||||||
| 2025 | 2024 | |||||||
| Prepayments for Supply Chain Financing/Trading | $ | $ | ||||||
| Prepaid expenses | ||||||||
| Others | ||||||||
| Total | $ | $ | ||||||
8. LEASES
The Company’s non-cancellable operating
leases consist of leases for office space. The Company is the lessee under the terms of the operating leases. For the nine months ended
September 30, 2025, the operating lease cost was $
The Company’s operating leases have remaining
lease terms of approximately
Maturities of lease liabilities were as follows:
| Operating | ||||
| As of September 30, | Lease | |||
| From October 1, 2025 to September 30, 2026 | $ | |||
| From October 1, 2026 to September 30, 2027 | ||||
| Total | $ | |||
| Less: amounts representing interest | $ | |||
| Present Value of future minimum lease payments | ||||
| Less: Current obligations | ||||
| Long term obligations | $ | |||
The Company leases office space and equipment under various short-term operating leases. As permitted by ASC 842, the Company has elected the practical expedient for short-term leases, whereby lease assets and lease liabilities are not recognized on the balance sheet. Short term leases cost was for the nine months ended September 30, 2025.
21
9. PROPERTY AND EQUIPMENT, NET
Property and equipment, net consist of the following:
| September 30, | December 31, | |||||||
| 2025 | 2024 | |||||||
| Office equipment, fixtures and furniture | $ | $ | ||||||
| Vehicle | ||||||||
| Leasehold improvements | ||||||||
| Subtotal | ||||||||
| Less: accumulated depreciation | ( | ) | ( | ) | ||||
| Construction in progress | ||||||||
| Impairment | ( | ) | ( | ) | ||||
| Total | $ | $ | ||||||
Depreciation expense included in general and administration
expenses for the nine months ended September 30, 2025 and 2024 was $
10. INTANGIBLE ASSETS, NET
Intangible assets, net consist of the following:
| September 30, | December 31, | |||||||
| 2025 | 2024 | |||||||
| Trading rights of license plates | $ | $ | ||||||
| System and software | ||||||||
| Subtotal | ||||||||
| Less: accumulated amortization | ( | ) | ( | ) | ||||
| Total | $ | $ | ||||||
Amortization expense included in general and administration
expenses for the nine months ended September 30, 2025 and 2024 was $
22
The estimated future amortization is as follows:
| As of September 30, | Estimated amortization expense | |||
| From October 1, 2025 to September 30, 2026 | $ | |||
| From October 1, 2026 to September 30, 2027 | ||||
| From October 1, 2027 to September 30, 2028 | ||||
| From October 1, 2028 to September 30, 2029 | ||||
| From October 1, 2029 to September 30, 2030 | ||||
| Thereafter | ||||
| Total | $ | |||
Type 1 and Type 2 licenses by Hong Kong Securities
and Futures Commission have no expiration date and do not require amortization, the amount was $
11. ACCOUNT PAYABLES
The amount of account payables consisted of the following:
| September 30, | December 31, | |||||||
| 2025 | 2024 | |||||||
| Trading Commission and Consulting service payment | $ | $ | ||||||
| Fast-Moving Consumer Goods payment | ||||||||
| Supply Chain Financing/Trading payment | ||||||||
| Total | $ | $ | ||||||
12. ACCRUED EXPENSES AND OTHER PAYABLES
The amount of accrued expenses and other payables consisted of the following:
| September 30, | December 31, | |||||||
| 2025 | 2024 | |||||||
| Legal fee and other professionals | $ | $ | ||||||
| Wages and employee reimbursement | ||||||||
| Provision for legal case | ||||||||
| Accruals | ||||||||
| Others | ||||||||
| Total | $ | $ | ||||||
23
In January 2021, FT Global Capital, Inc. (“FT
Global”), a former placement agent of the Company filed a lawsuit against the Company in the Superior Court of Fulton County, Georgia.
FT Global served the complaint upon the Company in January 2021. In the complaint, FT Global alleges claims, most of which attempt to
hold the Company liable under legal theories that relate back to an alleged breach of an exclusive placement agent agreement between FT
Global and the Company in July 2020 which had a term of three months. FT Global claims that the Company failed to compensate FT Global
for securities purchase transactions between December 2020 and April 2021, pursuant to the terms of the expired exclusive placement agent
agreement. On April 11, 2024, on which date the jury returned a verdict in favor of FT Global and the Court entered a judgment awarding
FT Global $
13. CONVERTIBLE NOTES PAYABLE
The amount of convertible notes payable consisted of the following:
| September 30, | December 31, | |||||||
| 2025 | 2024 | |||||||
| Beginning | $ | $ | ||||||
| Addition | ||||||||
| Interest expenses | ||||||||
| Payment | ||||||||
| Conversion | ( | ) | ( | ) | ||||
| Balance | $ | $ | ||||||
Convertible notes payable I
On December 27, 2023, the Company issued a convertible promissory
note with a principal amount of $
24
Convertible notes payable II
On July 28, 2025(“Beginning Date”),
the Company entered into a Convertible notes Agreement (“Agreement”) with an institutional investor (the “Investor”),
pursuant to which the Investor desires to purchase from the Company one or more pre-paid purchases (each a “Pre-Paid Purchase”
and together the “Pre-Paid Purchases”) in the aggregate purchase amount of up to $
On
July 28, 2025, the Company received its first funding of $
On September 22, 2025, the Company received its
second funding of $
Concurrently, on September 22, 2025, the Company
has issued
The Company assessed the convertible note payable II under ASC 815, identifying there is embedded conversion features and concluded that the conversion feature satisfied the requirement of “fixed-to-fixed” criterion and is considered indexed to the Company’s own stock. Therefore, the conversion feature eligible for a scope exception from derivative accounting in accordance with ASC815-10-15-74 and the Company would not bifurcate the conversion feature, and accounts for the convertible note payable II as a liability in its entirety.
The Company recognized the issuance costs and
the discount of convertible note payable II of $
As of September 30, 2025, the Company has received
an aggregate of $
As of September 30, 2025, the Company issued a
total of
25
14. RELATED PARTY TRANSACTION
As of September 30, 2025, the amounts due from the related parties were consisted of the following:
| Name | Amount (US$) | Relationship | Note | |||||
| Kai Li | $ | |||||||
| Chao Li | ||||||||
| Total | $ | |||||||
As of September 30, 2025, the amounts due to the related parties were consisted of the following:
| Name | Amount | Relationship | Note | |||||
| Shanchun Huang | $ | |||||||
| Total | $ | |||||||
As of December 31, 2024, the amount due from the related parties was consisted of the following:
| Name | Amount | Relationship | Note | |||||
| Hu Li | $ | |||||||
| Total | $ | |||||||
| * |
As of December 31, 2024, the amount due to the related parties was consisted of the following:
| Name | Amount | Relationship | Note | |||||
| Ting Alina Oyang | $ | |||||||
| Total | $ | |||||||
26
15. INCOME TAX
The Company is incorporated in the United States
of America and is subject to United States federal taxation. The applicable tax rate is
The Company evaluates the level of authority for each uncertain tax position (including the potential application of interest and penalties) based on the technical merits, and measures the unrecognized benefits associated with the tax positions. For the years ended September 30, 2025, the Company had unrecognized tax benefits. Due to uncertainties surrounding future utilization, the Company estimates there will not be sufficient future income to realize the deferred tax assets for certain subsidiaries.
The amount of unrecognized deferred tax liabilities for temporary differences related to the dividend from foreign subsidiaries is not determined because such determination is not practical.
The Company has not provided deferred taxes on undistributed earnings attributable to its PRC subsidiaries as they are to be permanently reinvested.
The Company has not provided deferred taxes on undistributed earnings attributable to its PRC and Hong Kong subsidiaries as they are to be permanently reinvested.
The Company had no material adjustments to its liabilities for unrecognized income tax benefits according to the provisions of ASC Topic 740, Income Taxes. Since the Company intends to reinvest its earnings to further expand its businesses in mainland China, its PRC subsidiaries do not intend to declare dividends to their immediate foreign holding companies in the foreseeable future. Accordingly, the Company has not recorded any deferred taxes in relation to US tax on the cumulative amount of undistributed retained earnings since January 1, 2008.
Effective on January 1, 2008, the PRC Enterprise
Income Tax Law, EIT Law, and Implementing Rules imposed a unified enterprise income tax rate of
Future FinTech (Hong Kong) Limited is incorporated
in Hong Kong and is subject to Hong Kong Profits Tax on the taxable income as reported in its statutory financial statements adjusted
in accordance with relevant Hong Kong tax laws. The applicable tax rate is
27
Reconciliation of the differences between the statutory EIT rate applicable to profits of the consolidated entities and the income tax expenses of the Company:
| September 30, 2025 | September 30, 2024 | |||||||
| Loss before taxation | $ | ( | ) | $ | ( | ) | ||
| PRC statutory tax rate | % | % | ||||||
| Computed expected benefits | ( | ) | ( | ) | ||||
| Others, primarily the differences in tax rates | ( | ) | ( | ) | ||||
| Deferred tax assets losses not recognized | ||||||||
| Total | $ | $ | ||||||
16. SHARE BASED COMPENSATION
On March 10, 2025, the Compensation Committee
of the Board of Directors of the Company granted
On October 4, 2024, the Compensation Committee
of the Board of Directors of the Company granted
28
17. COMMON STOCK
Securities Purchase Agreement
On December 24, 2020, the Company entered into
a securities purchase agreement with certain purchasers, pursuant to which the Company sold to the purchasers in a registered direct offering,
an aggregate of
| Underlying | Weighted Average Exercise | Weighted Average Term | ||||||||||
| Shares | Price | (Years) | ||||||||||
| Options outstanding at December 31, 2024 | $ | |||||||||||
| Granted | - | |||||||||||
| Forfeited | - | |||||||||||
| Cancelled | - | |||||||||||
| Options outstanding at September 30, 2025 | $ | |||||||||||
| Options exercisable at September 30, 2025 | $ | |||||||||||
On January 5, 2024, the Company entered into a
securities purchase agreement with certain purchasers, pursuant to which the Company sold to the purchasers in a private placement, an
aggregate of
Common stocks issued in connection with the convertible notes
On December 27, 2023, the Company entered into
a Securities Purchase Agreement with Streeterville Capital, LLC, a Utah limited liability company (the “Lender”), pursuant
to which the Company sold and issued to the Lender a Convertible Promissory Note (the “Note”) in the principal amount of $
29
On July 3, 2024, that Lender elected to redeem
a portion of the Note in redemption conversion shares. Lender redemption conversion shares
On July 18, 2024, that Lender elected to redeem
a portion of the Note in redemption conversion shares. Lender redemption conversion shares
On August 26, 2024, that Lender elected to redeem
a portion of the Note in redemption conversion shares. Lender redemption conversion shares
On October 24, 2024, that Lender elected to redeem
a portion of the Note in redemption conversion shares. Lender redemption conversion shares
On November 11, 2024, that Lender elected to redeem
a portion of the Note in redemption conversion shares. Lender redemption conversion shares
On November 14, 2024, that Lender elected to redeem
a portion of the Note in redemption conversion shares. Lender redemption conversion shares
On December 18, 2024, that Lender elected to redeem
a portion of the Note in redemption conversion shares. Lender redemption conversion shares
On January 7, 2025, that Lender elected to redeem
a portion of the Note in redemption conversion shares. Lender redemption conversion shares
On January 24, 2025, that Lender elected to redeem
a portion of the Note in redemption conversion shares. Lender redemption conversion shares
On March 27, 2025, the Company effected a 1-for-10
reverse stock split of the Company’s issued shares and its authorized shares of common stock from
On September 10 and 11, 2025, that Lender elected
to redeem the entire balance of the Note through the issuance of
30
18. STATUTORY RESERVES AND RESTRICTED NET ASSETS
PRC laws and regulations permit payments of dividends
by the Company’s subsidiaries incorporated in the PRC only out of their retained earnings, if any, as determined in accordance with
PRC accounting standards and regulations. In addition, the Company’s subsidiaries incorporated in the PRC are required to annually
appropriate
19. DISCONTINUED OPERATIONS
On March 7, 2024, Chain Cloud Mall Network and Technology (Tianjin) Co., Limited was dissolved and deregistered.
On September 4, 2024, Tianjin Future Private Equity
Fund Management Partnership (Ltd Partnership) was dissolved and deregistered. The loss on disposal was $
On October 18, 2024, Nice Talent Asset Management
Limited (“NTAM”) was disposed of for a consideration of $
On December 6, 2024, FTFT Super Computing Inc.
was disposed of for a consideration of US$
On February 3, 2025, FTFT UK LIMITED, FTFT Finance
UK Limited, Future Fintech Digital Number One US, LP, Future Fintech Digital Number One Offshore, LLC(Cayman), Future Fintech Digital
Number One GP, LLC (USA), FTFT Digital Number One, Ltd.(Cayman), Future FinTech Labs Inc, Future Fintech Digital Capital, FTFT CAPITAL
INVESTMENTS, DigiPay FinTech Limited, DCON DigiPay Limited-JPN and Global Key Shared Mall Ltd were disposed of for a consideration of
US$
31
Loss from discontinued operations for the nine months ended September 30, 2025 and 2024 was as follows:
| For the three months ended September 30, | For the nine months ended September 30, | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| REVENUES | $ | $ | $ | $ | ||||||||||||
| COST OF SALES | ||||||||||||||||
| GROSS PROFIT | ||||||||||||||||
| OPERATING EXPENSES: | ||||||||||||||||
| General and administrative | ||||||||||||||||
| Research and development expenses | ||||||||||||||||
| Selling expenses | ||||||||||||||||
| Allowance for (net recovery of) credit losses /doubtful accounts | ( | ) | ||||||||||||||
| Total | ||||||||||||||||
| OTHER INCOME (EXPENSE) | ||||||||||||||||
| Interest income | ||||||||||||||||
| Interest expense | ( | ) | ||||||||||||||
| Other income (expense) | ( | ) | ||||||||||||||
| Total | ( | ) | ||||||||||||||
| Loss from discontinued operations before income tax | ( | ) | ( | ) | ||||||||||||
| Income tax provision | ||||||||||||||||
| Loss from discontinued operation before non-controlling interest | ||||||||||||||||
| Gain on disposal of discontinued operations | ( | ) | ||||||||||||||
| Less: net income (loss) attributable to non-controlling interests | ( | ) | ( | ) | ||||||||||||
| INCOME (LOSS) FROM DISCONTINUED OPERATION | $ | $ | ( | ) | $ | $ | ( | ) | ||||||||
32
The major components of assets and liabilities related to discontinued operations are summarized below:
| September 30, 2025 | December 31, 2024 | |||||||
| Cash and cash equivalents | $ | $ | ||||||
| Other receivables, net | ||||||||
| Advances to suppliers and other current assets, net | ||||||||
| Property and equipment, net | ||||||||
| Right of use assets - operation lease | ||||||||
| Total assets related to discontinued operations | $ | $ | ||||||
| Accrued expenses and other payables | $ | $ | ||||||
| Amount due to related parties | ||||||||
| Lease liability - operation lease | ||||||||
| Total liabilities related to discontinued operations | $ | $ | ||||||
20. SEGMENT REPORTING
The Company began to provide supply chain financing services during the second quarter of 2021. The Company began to provide sand and steel supply chain financing services during the first quarter of 2023. The Company began to provide brokerage services in October 2023. During the first quarter of fiscal year 2025, the Company commenced operations in the Fast-Moving Consumer Goods (FMCG) sector.
Some of the Company’s operations might not individually meet the quantitative thresholds for determining reportable segments and the Company determines the reportable segments based on the discrete financial information provided to the chief operating decision maker. The chief operating decision maker evaluates the results of each segment in assessing performance and allocating resources among the segments. Since there is an overlap of services and products between different subsidiaries of the Company, the Company does not allocate operating expenses and assets based on the product segments. Therefore, operating expenses and asset information by segment are not presented. Segment profit represents the gross profit of each reportable segment.
33
Three months ended September 30, 2025
| Fast-Moving Consumer Goods | Trading Commission and Consulting service | Supply Chain Financing/ Trading | Total | |||||||||||||
| Reportable segment revenue | $ | $ | $ | $ | ||||||||||||
| Inter-segment loss | ||||||||||||||||
| Revenue from external customers | ||||||||||||||||
| Segment gross profit | $ | $ | $ | $ | ||||||||||||
Three months ended September 30, 2024
| Fast-Moving Consumer Goods | Trading Commission and Consulting service | Supply Chain Financing/ Trading | Total | |||||||||||||
| Reportable segment revenue | $ | $ | $ | $ | ||||||||||||
| Inter-segment loss | ||||||||||||||||
| Revenue from external customers | ||||||||||||||||
| Segment gross profit | $ | $ | $ | $ | ||||||||||||
Nine months ended September 30, 2025
| Fast-Moving Consumer Goods | Trading Commission and Consulting service | Supply Chain Financing/ Trading | Total | |||||||||||||
| Reportable segment revenue | $ | $ | $ | $ | ||||||||||||
| Inter-segment loss | ||||||||||||||||
| Revenue from external customers | ||||||||||||||||
| Segment gross profit | $ | $ | $ | $ | ||||||||||||
34
Nine months ended September 30, 2024
| Fast-Moving Consumer Goods | Trading Commission and Consulting service | Supply Chain Financing/ Trading | Total | |||||||||||||
| Reportable segment revenue | $ | $ | $ | $ | ||||||||||||
| Inter-segment loss | ||||||||||||||||
| Revenue from external customers | ||||||||||||||||
| Segment gross profit | $ | $ | $ | $ | ||||||||||||
Loss before Income Tax:
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Supply Chain Financing/Trading | $ | $ | $ | $ | ||||||||||||
| Fast-Moving Consumer Goods | ||||||||||||||||
| Trading Commission and Consulting service | ||||||||||||||||
| Corporate and Unallocated | ||||||||||||||||
| Total operating expenses and other expenses | ||||||||||||||||
| Loss before income tax | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||
Segment assets as of September 30, 2025 and December 31, 2024:
| September 30, 2025 | December 31, 2024 | |||||||
| Supply Chain Financing/Trading | $ | $ | ||||||
| Fast-Moving Consumer Goods | ||||||||
| Trading Commission and Consulting service | ||||||||
| Corporate and Unallocated | ||||||||
| Assets related to discontinued operation | ||||||||
| Total assets | $ | $ | ||||||
35
21. DEBT RESTRUCTURING
During the nine months ended September 30, 2025,
the Company entered into troubled debt restructurings with FT Global (“the Creditor”) due to financial difficulties. On June
17, 2025, the Company entered into a settlement and forbearance agreement (“the Agreement”) with FT Global. Pursuant to the
Agreement, the company was required to pay an aggregate settlement amount of $
The Company derecognized the amount previously
due to FT Global, and recognized the present value of total settlement amount including the above-mentioned cash payments and common stocks
in paid in capital and other payables on the unaudited condensed consolidated balance sheets. Upon the debt restructurings, the Company
recognized a gain of $
22. COMMITMENTS AND CONTINGENCIES
Legal case with FT Global Litigation
In January 2021, FT Global Capital, Inc. (“FT
Global”), a former placement agent of the Company filed a lawsuit against the Company in the Superior Court of Fulton County, Georgia.
FT Global served the complaint upon the Company in January 2021. In the complaint, FT Global alleges claims, most of which attempt to
hold the Company liable under legal theories that relate back to an alleged breach of an exclusive placement agent agreement between FT
Global and the Company in July 2020 which had a term of three months. FT Global claims that the Company failed to compensate FT Global
for securities purchase transactions between December 2020 and April 2021, pursuant to the terms of the expired exclusive placement agent
agreement. Allegedly, the exclusive placement agent agreement required the Company to pay FT Global for capital received during the term
of the agreement and for the 12-month period following the termination of the agreement involving any investors that FT Global introduced
and/or wall-crossed to the Company. However, the Company believes the securities purchase transactions at issue did not involve the one
investor which FT Global introduced or wall-crossed to the Company during the term of the agreement. FT Global claims approximately $
The Company timely removed the case to the United
States District Court for the Northern District of Georgia (the (“Court”) on February 9, 2021 based on diversity of jurisdiction.
On March 9, 2021, the Company filed a motion to dismiss based on FT Global’s failure to state a claim which is pending before the
Court. On November 10, 2021, the Court entered an Order granting the Company’s motion to dismiss FT Global’s fraud claim and
breach of contract claim as to the disclosure of its confidential and proprietary information. The Court denied the Company’s motion
to dismiss FT Global’s i) breach of contract claim for failure to pay FT Global pursuant to the terms of the exclusive placement
agent agreement; ii) claim for breach of the covenant of good faith and fair dealing; and iii) claim for attorney’s fees, and the
court concluded that additional information can be obtained through discovery. The trial began on April 8, 2024 and ended on April 11,
2024, on which date the jury returned a verdict in favor of FT Global. On April 11, 2024, the Court entered a judgment awarding FT Global
$
36
FT Global has registered the Court’s judgment
in the United States District Court for the Southern District of New York (“NY Court”), where FT Global has brought a motion
requiring the Company to turn over its stock in its subsidiary companies. On August 28, 2024, NY Court granted FT Global’s motion
for turnover of Defendant’s shares in Defendant’s wholly-owned subsidiaries as Defendant 1) failed to satisfy the $
On June 17, 2025, the Company entered into a settlement and forbearance agreement with FT Global. (See Note 20. DEBT RESTRURING)
Shareholders Lawsuit (LaBelle and Janzen)
The LaBelle case is a putative securities class action filed in January 2024 and is pending in the District of New Jersey. Denise LaBelle (“Plaintiff”) alleges that the Company and certain of its officers violated Sections 10(b) and 20(a) of the Securities Exchange Act by making materially false or misleading statements in the company’s public filings and disclosures relating to the former Chief Executive Officer of the Company, Mr. Shanchun Huang and charges filed by the SEC against Mr. Shanchun Huang with manipulative trading in the stock of the Company using an offshore account shortly before he became the Company’s CEO in 2020 and failing to disclose his beneficial ownership. Mr. Huang has denied the allegations of trading before he became CEO. Plaintiff claims that these alleged misstatements caused the Company’s stock to trade at artificially inflated prices, harming investors when the truth was revealed. The lead plaintiff and lead counsel were appointed in September 2024. The Company was served in September 2024, and the Plaintiff is currently seeking substituted service on the individual defendants. Once the service is resolved, the Plaintiff is expected to file an amended complaint, which the Company and other defendants intend to move to dismiss.
The Janzen action is a consolidated shareholder derivative case filed by Jeff Janzen on May 31, 2024, also pending in the District of New Jersey, brought nominally on behalf of Future FinTech. Plaintiff alleges that certain current and former officers and directors breached fiduciary duties by allowing or failing to prevent the same alleged misconduct at issue in LaBelle, including mismanagement and misleading public disclosures. The derivative case has been stayed by stipulation, pending resolution of the anticipated motion to dismiss in LaBelle, but plaintiff has reserved the right to participate in mediation and settlement discussions relating to the class action.
37
23. RISKS AND UNCERTAINTIES
PRC Regulations
There are substantial uncertainties regarding the interpretation and application of PRC laws and regulations, including, but not limited to, the laws and regulations governing the Company’s business and the enforcement and performance of the Company’s arrangements with customers in certain circumstances. The Company is considered foreign persons or foreign funded enterprises under PRC laws and, as a result, the Company is required to comply with PRC laws and regulations related to foreign persons and foreign funded enterprises. These laws and regulations are sometimes vague and may be subject to future changes, and their official interpretation and enforcement may involve substantial uncertainty. The effectiveness of newly enacted laws, regulations or amendments may be delayed, resulting in detrimental reliance. New laws and regulations that affect existing and proposed future businesses may also be applied retroactively. The Company cannot predict what effect the interpretation of existing or new PRC laws or regulations may have on the Company’s business.
Customer concentration risk
For the nine months ended September 30, 2025,
two customers accounted for
Vendor concentration risk
For the nine months ended September 30, 2025,
two vendors accounted for
24. SUBSEQUENT EVENTS
The Company has evaluated subsequent events through the date of the issuance of the unaudited condensed consolidated financial statements and did not identify any subsequent events except those disclosed above that would have required adjustment or disclosure in the financial statements.
38
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.
This quarterly report on Form 10-Q and other reports filed by the Company from time to time with the SEC (collectively the “Filings”) contain or may contain forward-looking statements and information that are based upon beliefs of, and information currently available to, Company’s management as well as estimates and assumptions made by Company’s management. Readers are cautioned not to place undue reliance on these forward-looking statements, which are only predictions and speak only as of the date hereof. When used in the Filings, the words “may”, “will”, “should”, “would”, “anticipate”, “believe”, “estimate”, “expect”, “future”, “intend”, “plan”, or the negative of these terms and similar expressions as they relate to the Company or its management identify forward-looking statements. Such statements reflect the current view of the Company with respect to future events and are subject to risks, uncertainties, assumptions, and other factors (including the statements in the section “results of operations” below), and any businesses that the Company may acquire. Should one or more of these risks or uncertainties materialize, or should the underlying assumptions prove incorrect, actual results may differ significantly from those anticipated, believed, estimated, expected, intended, or planned. Factors that might cause or contribute to such a discrepancy include, but are not limited to, those listed under the heading “Risk Factors” and those listed in our Annual Report on Form 10-K for the year ended December 31, 2024 (the “2024 Form 10-K”) and in this Form 10-Q. The following discussion should be read in conjunction with our Financial Statements and related Notes thereto included elsewhere in this report and in our 2024 Form 10-K.
Although the Company believes that the expectations reflected in the forward-looking statements are based on reasonable assumptions, the Company cannot guarantee future results, levels of activity, performance, or achievements. Except as required by applicable law, including the securities laws of the United States, the Company does not intend to update any of the forward-looking statements to conform these statements to actual results. Readers are urged to carefully review and consider the various disclosures made throughout the entirety of this report, which attempts to advise interested parties of the risks and factors that may affect our business, financial condition, results of operations, and prospects.
Overview of Our Business
Future FinTech Group Inc. is a Florida holding company with no material operations of its own. We conduct substantially all of our business through subsidiaries, and this structure involves unique risks for investors. We are not a Chinese operating company, although we have had significant operations in China and Hong Kong.
Historically, our business was focused on fruit juice manufacturing and distribution in China. Due to rising production costs and stricter environmental laws, we shifted our operations toward supply chain financing and trading in China, asset management in Hong Kong, cross-border money transfer services in the United Kingdom, brokerage and investment banking in Hong Kong, and cryptocurrency mining in the United States. Most of these activities have since been reduced or exited.
Recent strategic changes include:
| ● | Exit from Variable Interest Entity (“VIE”) operations in China – Our VIE, E-Commerce Tianjin, generated minimal revenue since 2021 and was deregistered on March 7, 2024. |
| ● | Disposal of Hong Kong asset management operations – In November 2024, we sold our remaining 42.86% interest in Nice Talent Asset Management Limited for approximately $300,000 and ceased asset management activities in Hong Kong. |
| ● | Sale of cryptocurrency mining operations – On December 9, 2024, we sold FTFT Super Computing Inc., including the assumption of approximately $973,000 in liabilities and $1.0 million applied toward a litigation judgment. |
| ● | Disposition of multiple subsidiaries – On December 18, 2024, we sold Future Fintech Digital Capital Management LLC, FTFT UK Limited, DigiPay FinTech Limited, Global Key Shared Mall Ltd., Future Fintech Labs Inc., and Future Fintech Digital Number One GP, LLC through a court-ordered auction for $25,000. |
| ● | Closure of Paraguay cryptocurrency venture – FTFT Paraguay S.A., acquired in 2022, was dissolved in December 2023 after we were unable to develop planned operations. |
39
As of September 30, 2025, our principal business operations consist of: sale of fast-moving consumer goods; commission-based trading and consulting services; and supply chain financing and trading.
We currently have one directly controlled subsidiary, Future FinTech (Hong Kong) Limited.
Supply Chain Financing Service and Trading in China
Since the second quarter of 2021, we have engaged in the coal supply chain financing service and trading business. Since the third quarter of 2021, we have engaged in aluminum ingots supply chain financing service and trading business. Since the first quarter of 2023, we have engaged in sand and steel supply chain financing service and trading business.
Our supply chain finance business mainly serves the receivables and payables of industrial customers, obtains the creditor’s rights or commodity goods rights of large state-owned enterprises through trade execution, provides customers with working capital, accelerates capital turnover, and then expands the business scale and improves the industrial value.
Through our supply chain service ability and customer resources, we can tap into low-risk assets, flexibly carry out financial services around the actual financial needs of certain industries, and reduce the overall risk of the business by using the control of business flow, goods logistics and capital flow in the process of commodity circulation.
We focus on bulk commodity goods such as coal, aluminum ingots, sand and steel and take large state-owned or listed companies as the core service targets; we use our own funds as the operation basis, actively uses a variety of channels and products for financing, such as banks, commercial factoring companies, accounts receivable, asset-backed securities, and other innovative financing methods to obtain sufficient funds.
We sign purchase and sale agreements with suppliers and buyers. The suppliers are responsible for the supply and transportation of goods to the end users’ designated freight yard or transfer the title to us in certain warehouses. We also provide trading service as we don’t take control over the ownership of the goods but receive agent service fee for the transaction. For the sale of goods where we obtain control of the goods before transferring it to the customer, we recognize revenue based on the gross revenue amount billed to customers as sales of goods. We consider multiple factors when determining whether we obtain control of the goods, including evaluating if we can establish the price of the goods, retain inventory risk for tangible goods or have the responsibility for ensuring acceptability of the goods. We recognize net revenue as agent services for the sales of coals, aluminum ingots, and steel when no control is obtained throughout the transactions. We select the customers and suppliers that have good credit and reputation.
FTFT International Securities and Futures Limited, a company we acquired in November 2023, provides brokerage and investment banking services in Hong Kong. FTFT International Securities and Futures Limited holds Type 1 “Securities Trading”, Type 2 “Futures Contract Trading” and Type 4 “Securities Consulting” financial licenses issued by the Hong Kong Securities and Futures Commission.
Results of Operations
Comparison of Three Months Ended September 30, 2025 and 2024:
Revenue
The following table sets forth the breakdown of our revenues for the three months ended September 30, 2025 and 2024, respectively:
| Three months ended September 30, | ||||||||||||||||
| 2025 | 2024 | Change | ||||||||||||||
| Amount | Amount | Amount | % | |||||||||||||
| Fast-Moving Consumer Goods (“FMCG”) | $ | 1,196,141 | $ | 342 | $ | 1,195,799 | 349,648.83 | % | ||||||||
| Trading Commission and Consulting service | 128,492 | 598,245 | (469,753 | ) | (78.52 | )% | ||||||||||
| Supply Chain Financing/Trading | - | 428,533 | (428,533 | ) | (100.00 | )% | ||||||||||
| Total revenue | $ | 1,324,633 | $ | 1,027,120 | $ | 297,513 | 28.97 | % | ||||||||
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For the three months ended September 30, 2025 and 2024, revenue from sales of FMCG was $1,196,141 and $342, respectively, representing an increase of $1,195,799, or 349,648.83%. The increase was primarily attributable to the Company’s strategic expansion into the FMCG sector in September 2024, which significantly contributed to our revenue growth during the three months ended September 30, 2025.
For the three months ended September 30, 2025 and 2024, revenue from trading commission and consulting service was $128,492 and $598,245, respectively, representing a decrease of $469,753, or 78.52%. The decrease was mainly because a major project, which boosted revenue from consulting service during the three months ended September 30, 2024, did not recur in the same period this year.
For the three months ended September 30, 2025 and 2024, revenue from supply chain financing/trading was nil and $428,533, respectively, representing a decrease of $428,533, or 100.00%. The decrease was due to our management’s decision to temporarily suspend these operations resulting from lower coal prices and reduced market demand in China during the three months ended September 30, 2025.
Gross Profit
The following table sets forth the breakdown of the gross profit for the three months ended September 30, 2025 and 2024, respectively:
| Three months ended September 30, | Variance | |||||||||||||||||||||||
| 2025 | % | 2024 | % | Amount | % | |||||||||||||||||||
| Fast-Moving Consumer Goods (“FMCG”) | $ | 7,066 | 5.78 | % | $ | 13 | - | % | $ | 7,053 | 54,253.85 | % | ||||||||||||
| Trading Commission and Consulting service | 115,271 | 94.22 | % | 586,080 | 94.10 | % | (470,809 | ) | (80.33 | )% | ||||||||||||||
| Supply Chain Financing/Trading | - | - | % | 36,764 | 5.90 | % | (36,764 | ) | (100.00 | )% | ||||||||||||||
| Total gross profit | $ | 122,337 | 100.00 | % | $ | 622,857 | 100.00 | % | $ | (500,520 | ) | (80.36 | )% | |||||||||||
Overall gross profit decreased by $500,520, or 80.36%, to $122,337 for the three months ended September 30, 2025 from $622,857 for the same period last year. The decrease was primarily due to the decrease in gross profit from trading commission and consulting service which was in line with the decrease in revenue for this business segment during the three months ended September 30, 2025. Although revenue from FMCG segment increased significantly for the three months ended September 30, 2025, gross profit from this business segment did not increase simultaneously due to its low gross margin. Overall gross margin as a percentage of revenue was 9.24% for the three months ended September 30, 2025, representing a decrease of 51.41 percentage points from 60.64% for the same period last year, mainly due to the decrease in gross margin for debt recovery consulting service fee, and our gross margin was further eroded by that of the FMCG segment, which accounted for a majority portion of total revenue during the three months ended September 30, 2025.
Operating Expenses
The following table sets forth the breakdown of our operating expenses and operating expenses as a percentage of revenue for the three months ended September 30, 2025 and 2024, respectively:
| Three months ended September 30, | ||||||||||||||||
| 2025 | 2024 | |||||||||||||||
| Amount | % of revenue | Amount | % of revenue | |||||||||||||
| General and administrative expenses | $ | 1,324,770 | 100.01 | % | $ | 1,580,568 | 153.88 | % | ||||||||
| Selling expenses | 240,805 | 18.18 | % | 103,794 | 10.11 | % | ||||||||||
| Allowance for credit losses/doubtful accounts | 654,222 | 49.39 | % | 3,386,630 | 329.72 | % | ||||||||||
| Total operating expenses | $ | 2,219,797 | 167.58 | % | $ | 5,070,992 | 493.71 | % | ||||||||
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For the three months ended September 30, 2025, our general and administrative expenses were $1,324,770, representing a decrease of $255,798, or 16.18%, as compared to the same period last year. The decrease was primarily attributable to reduced salary, employee benefit and bonus expenses as a result of the implementation of cost-control measures, as well as a decrease in commission expenses caused by decreased consulting service revenue. The decrease was partially offset by an increase in business entertainment expenses driven by our new business expansion.
For the three months ended September 30, 2025, our selling expenses were $240,805, representing an increase of $137,011, or 132.00%, as compared to the same period last year. The increase was primarily attributable to increased business entertainment expenses, traveling costs and sales team performance incentives, resulting from our initiatives to expand into new business segments and acquire new customers.
For the three months ended September 30, 2025, our allowance for credit losses/doubtful accounts was $654,222, representing a decrease of $2,732,408, or 80.68%, as compared to the same period last year. The decrease was primarily due to the management’s efforts to collection of long overdue receivables from our customers, resulting in a smaller allowance for credit losses during the three months ended September 30, 2025.
Other Income, Net
For the three months ended September 30, 2025, our net other income was $132,148, representing a decrease of $99,225, or 42.89%, as compared to the same period last year. The decrease was primarily due to reduced interest income during the three months ended September 30, 2025, resulting from a decreased loan receivable balance.
Net loss from continuing operations
For the three months ended September 30, 2025, our net loss from continuing operations was $1,965,312, representing a decrease of $2,251,450, or 53.39%, as compared to the same period last year. The decrease was primarily due to the decrease in operating expenses, as discussed above.
Comparison of Nine Months Ended September 30, 2025 and 2024:
Revenue
The following table sets forth the breakdown of our revenues for the nine months ended September 30, 2025 and 2024, respectively:
| Nine months ended September 30, | ||||||||||||||||
| 2025 | 2024 | Change | ||||||||||||||
| Amount | Amount | Amount | % | |||||||||||||
| Fast-Moving Consumer Goods (“FMCG”) | $ | 2,060,276 | $ | 342 | $ | 2,059,934 | 602,319.88 | % | ||||||||
| Supply Chain Financing/Trading | 1,341 | 934,971 | (933,630 | ) | (99.86 | )% | ||||||||||
| Trading Commission and Consulting service | 421,275 | 1,039,985 | (618,710 | ) | (59.49 | )% | ||||||||||
| Total revenue | $ | 2,482,892 | $ | 1,975,298 | $ | 507,594 | 25.70 | % | ||||||||
For the nine months ended September 30, 2025 and 2024, revenue from sales of FMCG was $2,060,276 and $342, respectively, representing an increase of $2,059,934, or 602,319.88%. The increase was primarily attributable to the Company’s strategic expansion into the FMCG sector in September 2024, which significantly contributed to revenue growth during the nine months ended September 30,2025.
For the nine months ended September 30, 2025 and 2024, revenue from supply chain financing/trading was $1,341 and $934,971, respectively, representing a decrease of $933,630, or 99.86%. The decrease was due to our management’s decision to temporarily suspend these operations resulting from lower coal prices and reduced market demand in China during the nine months ended September 30, 2025.
For the nine months ended September 30, 2025 and 2024, revenue from trading commission and consulting service was $421,275 and $1,039,985, respectively, representing a decrease of $618,710, or 59.49%. The decrease was mainly because a major project, which boosted revenue from consulting service during the nine months ended September 30, 2024, did not recur in the same period this year.
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Gross Profit
The following table sets forth the breakdown of the gross profit for the nine months ended September 30, 2025 and 2024, respectively:
| Nine months ended September 30, | Variance | |||||||||||||||||||||||
| 2025 | % | 2024 | % | Amount | % | |||||||||||||||||||
| Fast-Moving Consumer Goods (FMCG) | $ | 26,251 | 6.77 | % | $ | 13 | - | % | $ | 26,237.6 | 100.00 | % | ||||||||||||
| Supply Chain Financing/Trading | 1,341 | 0.34 | % | 142,866 | 12.36 | % | (141,525 | ) | (99.06 | )% | ||||||||||||||
| Trading Commission and Consulting service | 360,135 | 92.88 | % | 1,012,893 | 87.64 | % | (652,758 | ) | (64.44 | )% | ||||||||||||||
| Total Amount | $ | 387,727 | 100.00 | % | $ | 1,155,772 | 100.00 | % | $ | (768,045 | ) | (66.45 | )% | |||||||||||
Overall gross profit decreased by $768,045, or 66.45%, to $387,727 for the nine months ended September 30, 2025 from $1,155,772 for the same period last year. The decrease was primarily due to the decrease in gross profit from trading commission and consulting service, and supply chain financing/trading which were in line with the decrease in revenue for these two business segments during the nine months ended September 30, 2025. Although revenue from FMCG segment increased significantly for the nine months ended September 30, 2025, gross profit from this business segment did not increase simultaneously due to its low gross margin. Overall gross margin as a percentage of revenue was 15.62% for the nine months ended September 30, 2025, representing a decrease of 42.90 percentage points from 58.51% for the same period last year, mainly due to the decrease in gross margin for debt recovery consulting service fee, and our gross margin was further eroded by that of the FMCG segment, which accounted for a majority portion of total revenue during the nine months ended September 30, 2025.
Operating Expenses
The following table sets forth the breakdown of our operating expenses and operating expenses as a percentage of revenue for the nine months ended September 30, 2025 and 2024, respectively:
| Nine months ended September 30, | ||||||||||||||||
| 2025 | 2024 | |||||||||||||||
| Amount | % of revenue | Amount | % of revenue | |||||||||||||
| General and administrative expense | $ | 3,757,862 | 151.35 | % | $ | 4,195,166 | 212.38 | % | ||||||||
| Stock compensation expense | 1,085,000 | 43.70 | % | - | - | |||||||||||
| Selling expenses | 681,483 | 27.45 | % | 522,000 | 26.43 | % | ||||||||||
| Allowance for credit losses/doubtful accounts | 29,416,788 | 1,184.78 | % | 3,829,724 | 193.88 | % | ||||||||||
| Total operating expenses | $ | 34,941,133 | 1,407.28 | % | $ | 8,546,890 | 432.69 | % | ||||||||
For the nine months ended September 30, 2025, our general and administrative expenses were $3,757,862, representing a decrease of $437,304, or 10.42%, as compared to the same period last year. The decrease was primarily attributable to reduced salary, employee benefit and bonus expenses as a result of the implementation of cost-control measures, as well as a decrease in commission caused by decreased consulting service revenue during the nine months ended September 30, 2025.
For the nine months ended September 30, 2025, our stock compensation expense was $1,085,000, representing an increase of $1,085,000, as compared to the same period last year. On March 10, 2025, the Compensation Committee of the Board of Directors of the Company granted 500,000 shares of common stock, pursuant to the Company’s 2024 Omnibus Equity Plan, to certain officers and employees of the Company and its subsidiaries. As the closing price of the Company stock was $2.17 on March 10, 2025, the Company recorded an expense of $1.09 million in the first quarter of fiscal year 2025.
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For the nine months ended September 30, 2025, our selling expenses were $681,483, representing an increase of $159,483, or 30.55%, as compared to the same period last year. The increase was primarily attributable to increased business entertainment expenses, resulting from our initiatives to expand into new business segments and acquire new customers.
For the nine months ended September 30, 2025, our allowance for credit losses/doubtful accounts was $29,416,788, representing an increase of $25,587,064, or 668.12%, as compared to the same period last year. The increase was primarily due to a provision for bad debts on related party receivables in connection with the disposal of a subsidiary during the nine months ended September 30, 2025.
Other Income (Expense), Net
For the nine months ended September 30, 2025, our net other income was $3,494,470, representing an increase of $4,470,763, as compared to the same period last year. The increase was primarily due to the gain on debt restructuring during the nine months ended September 30, 2025. On June 17, 2025, we entered into a settlement and forbearance agreement (“the Agreement”) with FT Global. Pursuant to the Agreement, we were required to pay an aggregate settlement amount of $2.0 million and issue a total of 1,700,000 shares of common stock. Upon the debt restructurings, we recognized a gain of $3.07 million which was recorded as gain on debt restructuring on the unaudited condensed consolidated statement of operations and comprehensive loss. The increase in net other income was also attributable to the absence of litigation-related compensation paid to FT Global during the nine months ended September 30, 2024, and no such cost was incurred during same period this year.
Net loss from continuing operations
For the nine months ended September 30, 2025, our net loss from continuing operations was $31,058,936, representing an increase of $22,691,525, or 271.19%, as compared to the same period last year. The increase was primarily due to the increase in operating expenses, as discussed above.
Gain on disposal of discontinued operations
Gain on disposal of discontinued operation was $28.24 million for the nine months ended September 30, 2025, which was related to the transfer of FTFT UK LIMITED, FTFT Finance UK Limited, Future Fintech Digital Number One US, LP, Future Fintech Digital Number One Offshore, LLC(Cayman), Future Fintech Digital Number One GP, LLC (USA), FTFT Digital Number One, Ltd.(Cayman), Future FinTech Labs Inc, Future Fintech Digital Capital, FTFT CAPITAL INVESTMENTS, DigiPay FinTech Limited, DCON DigiPay Limited-JPN and Global Key Shared Mall Ltd.
Earnings (loss) per Share
For the nine months ended September 30, 2025, basic and diluted loss per share from continuing operations were both $8.03, as compared to loss per share of $4.20 (both basic and diluted) for the same period last year. For the nine months ended September 30, 2025, basic and diluted earnings per share from discontinued operations was $6.82 and $6.81, respectively, as compared to loss per share of $0.80 (both basic and diluted) for the same period last year.
Liquidity and Capital Resources
We currently finance our business operations primarily through convertible notes and the sale of our common stock. Our current cash primarily consists of cash on hand and cash in bank. As of September 30, 2025, we had cash and cash equivalents of $6.89 million, representing an increase of $2.13 million from $4.77 million as of December 31, 2024.
Working Capital
Our working capital has historically been generated from our operating cash flows, advances from our customers and convertible notes. Our working capital was $40.54 million as of September 30, 2025, an increase of $32.94 million from working capital of $7.60 million as of December 31, 2024, mainly due to the increase in current assets, such as cash and cash equivalent and investment funds, and decrease in current liabilities, such as accrued expenses and other payables.
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Cash Flows
The following table sets forth a summary of our cash flows for the periods indicated:
| Nine months ended September 30, | ||||||||
| 2025 | 2024 | |||||||
| Net cash used in operating activities from continuing operations | $ | (28,707,319 | ) | $ | (15,915,005 | ) | ||
| Net cash provided by operating activities from discontinued operations | 28,349,426 | 2,971,055 | ||||||
| Net cash used in investing activities from continuing operations | (29,035,242 | ) | (1,025,101 | ) | ||||
| Net cash provided by financing activities from continuing operations | 31,828,548 | 2,409,280 | ||||||
| Effect of exchange rate change on cash and cash equivalents | (310,054 | ) | 471,090 | |||||
| Net increase (decrease) in cash and cash equivalents | 2,125,359 | (11,088,681 | ) | |||||
| Cash and cash equivalents, beginning of period | 4,765,865 | 16,159,657 | ||||||
| Cash and cash equivalents, end of period | $ | 6,891,224 | $ | 5,070,976 | ||||
Operating Activities
Net cash used in operating activities from continuing operations amounted to $28.71 million for the nine months ended September 30, 2025, primarily due to i) a net loss from continuing operations of $31.06 million adjusted for non-cash activities including allowance for credit losses/doubtful accounts of $29.42 million, gain on debt restructuring of $3.07 million and share-based payments of $1.09 million, and ii) net changes in our operating assets and liabilities, which mainly include a) an increase in other receivables of $27.60 million, b) a decrease in accrued expenses and other payables of $1.52 million, which was partially offset by a) an increase in accounts payable of $1.36 million, b) an increase in advances from customers of $0.98 million, c) an increase in other non-current liabilities of $1.09 million, d) a decrease in accounts receivable of $0.59 million.
Net cash used in operating activities from continuing operations amounted to $15.92 million for the nine months ended September 30, 2024, primarily due to i) a net loss from continuing operations of $8.37 million adjusted for non-cash activities including allowance for credit losses/doubtful accounts of $3.83 million, and ii) net changes in our operating assets and liabilities, which mainly include a) an increase in advances to suppliers and other current assets of $8.11 million, b) an increase in other receivables of $5.25 million, c) a decrease in accounts payable of $1.54 million, which was partially offset by a decrease in accounts receivable of $2.74 million.
Investing Activities
Net cash used in investing activities from continuing operations amounted to $29.04 million for the nine months ended September 30, 2025, primarily due to prepayment for a business acquisition of $29.87 million, which was partially offset by repayment from debt investment of $0.70 million.
Net cash used in investing activities from continuing operations amounted to $1.03 million for the nine months ended September 30, 2024, primarily due to payment for debt investments of $1.80 million, which was partially offset by repayment from short term investment of $0.95 million.
Financing Activities
Net cash provided by financing activities from continuing operations amounted to $31.83 million for the nine months ended September 30, 2025, primarily consisting of i) proceeds from the issuance of common stock, net of issuance costs of $30.00 million, ii) proceeds from convertible notes payables of $1.80 million.
Net cash provided by financing activities from continuing operations amounted to $2.41 million for the nine months ended September 30, 2024, primarily consisting of proceeds from the issuance of common stock, net of issuance costs of $2.58 million, which was partially offset by repayment of amounts due to related parties of $0.10 million.
Contractual Obligations
The Company has no long-term fixed contractual obligations or commitments other than leases that are disclosed in Note 8 in the notes to our consolidated financial statements.
Off-balance sheet arrangements
As of September 30, 2025, we did not have any off-balance sheet arrangements.
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Item 3. Quantitative and Qualitative Disclosures about Market Risk
Not applicable.
Item 4. Controls and Procedures
Disclosure of Controls and Procedures
Our management, with the participation of our Chief Executive Officer and Chief Financial Officer, our principal executive officer and principal interim financial officer, respectively, evaluated the effectiveness of our disclosure controls and procedures as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act, as of the end of the period covered by this report. Disclosure controls and procedures include, without limitation, controls and procedures designed to provide reasonable assurance that information we are required to disclose in reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure. Based on this evaluation, our Chief Executive Officer and Chief Financial Officer concluded that, as of September 30, 2025, our disclosure controls and procedures were not effective due to a material weakness in our internal control over financial reporting. Specifically, we currently lack sufficient accounting personnel with the appropriate level of knowledge, experience and training in U.S. GAAP and SEC reporting requirements.
We have taken, and are taking, certain actions to remediate the material weakness related to our lack of U.S. GAAP experience. We have engaged an outside consultant with U.S. GAAP knowledge and experience to supplement our current internal accounting personnel and assist us in the preparation of our financial statements to ensure that our financial statements are prepared in accordance with U.S. GAAP. We have adopted and are continuously implementing policies, procedures and practices recommended in the report of the consultant and have arranged internal control training for our employees and management on disclosure controls and procedures. We believe the measures described above will remediate the material weakness from the quarter identified above. The Company continues to make efforts to implement its existing and newly adopted procedures to improve our disclosure controls and internal controls over financing reporting. As we continue to evaluate and work to improve our internal control over financial reporting, we may determine that additional measures are necessary.
Changes to Internal Control over Financial Reporting
Other than discussed above, there were no changes in our internal control over financial reporting (as defined in Rule 13a-15(f) and 15d-15(f) of the Exchange Act) that occurred during the period covered by this report that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
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PART II. OTHER INFORMATION
Item 1. Legal Proceedings
None.
Item 1A. Risk Factors
As a smaller reporting company as defined by Rule 12b-2 of the Securities Exchange Act of 1934, as amended, and in item 10(f)(1) of Regulation S-K, we are electing scaled disclosure reporting obligations and therefore are not required to provide the information requested by this item. In any event, there have been no material changes in our risk factors from those previously disclosed in our Annual Report on Form 10-K filed with the SEC on April 15, 2025.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
The Company did not make any sales of unregistered securities during the nine months ended September 30, 2025 that were not previously disclosed in a quarterly report on Form 10-Q or a current report on Form 8-K.
Item 3. Defaults upon Senior Securities
None.
Item 4. Mine Safety Disclosure
Not applicable.
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Item 5. Other Information
Item 6. Exhibits
| * | filed herewith |
| + | Furnished herewith |
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
| FUTURE FINTECH GROUP INC. | ||
| By: | /s/ Hu Li | |
| Hu Li | ||
| Chief Executive Officer | ||
| (Principal Executive Officer) | ||
| November 14, 2025 | ||
| By: | /s/ Ting Alina Oyang | |
| Ting Alina Oyang | ||
| Chief Financial Officer | ||
| (Principal Financial and Accounting Officer) | ||
| November 14, 2025 | ||
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