Blue Hat Interactive Entertainment Technology (“Blue Hat” or the “Company”) (NASDAQ: BHAT), primarily a company of commodity trading in China, today announced its audited financial results for the fiscal year ended December 31, 2023 (“Fiscal Year 2023”), reflecting a remarkable surge in the revenue.

Fiscal Year 2023 Financial Highlights

Blue Hat achieved a revenue of $73.68 million in 2023, increasing 33 times than the previous year. This extraordinary achievement is credited to the company's robust expansion of its commodity trading business, particularly in the realms of jewelry and gold trading, since the fourth quarter of 2022. However, despite the substantial revenue growth, the company incurred a net loss of $21.72 million for the Fiscal Year 2023. The primary reasons for the loss include bad debts and asset impairment resulting from divested businesses. Notably, the Company’s new business line, commodity trading, contributed a profit of nearly $1.2 million to the company for the Fiscal Year 2023.

Management Commentary

Mr. Chen Xiaodong, CEO of Blue Hat, stated at the Company's annual summary meeting: "Our achievements in 2023 represent not only a breakthrough in financial data, but also a resounding affirmation of Blue Hat's business strategy transition. In 2024, we will continue leveraging on the technology and experience we have accumulated in past few years. We will deepen our commodity trading in jewelry, especially the diamond and gold trading, and meanwhile expanding online gold derivatives trading, which aim to deliver excellent performance and reward our investors. Furthermore, we are committed to embracing the era of artificial intelligence and inspired to set a new benchmark as a 'smart' gold trader."

Fiscal Year 2023 Financial Results

Please refer to Blue Hat’s annual report on Form 20-F for the fiscal year ended December 31, 2023 filed with the Securities and Exchange Commission on April 30, 2024 for a detailed analysis of Blue Hat’s financial results.

About Blue Hat

Blue Hat was formerly a provider of communication services and IDC business, as well as a producer, developer, and operator of AR interactive entertainment games, toys, and educational materials in China. Leveraging years of technological accumulation and unique patented technology, Blue Hat is expanding its business to commodity trading, aiming to become a leading intelligent commodity trader worldwide. For more information, please visit the Company’s investor relations website at http://ir.bluehatgroup.com. The Company routinely provides important information on its website.

Forward-Looking Statements

This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. All forward-looking statements are inherently uncertain as they are based on current expectations and assumptions concerning future events or future performance of the Company. 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. In evaluating such statements, prospective investors should review carefully various risks and uncertainties identified in this release and matters set in the Company’s SEC filings. These risks and uncertainties could cause the Company’s actual results to differ materially from those indicated in its forward-looking statements.

Contacts:

Blue Hat Interactive Entertainment TechnologyPhone: +86 (592) 228-0010Email: ir@bluehatgroup.net

 
CONSOLIDATED BALANCE SHEETS
         
    December 31,   December 31,
    2023   2022
        (Restated)
         
ASSETS                
Current assets:                
Cash and cash equivalents   $ 407,588     $ 69,273  
Restricted cash     1,587       1,129  
Inventories     17,545,153        
Accounts receivable, net     15,157,384       9,170,996  
Accounts receivable, related party     9,571        
Other receivables, net     4,182,706       4,704,455  
Other receivables, related party     1,941,723       1,427,829  
Prepayments, net     36,588       80,834  
Assets related to discontinued operation           6,077,554  
Total current assets     39,282,300       21,532,070  
Non-current assets:                
Operating lease, right-of-use asset     2,353,083       40,596  
Prepayments     2,388,435       2,495,570  
Property, plant and equipment, net     3,544,751       3,817,015  
Intangible assets, net           1,368,424  
Long-term investments     1,694,269       1,722,999  
Assets related to discontinued operation           3,300,184  
Total non-current assets     9,980,538       12,744,788  
Total assets   $ 49,262,838     $ 34,276,858  
                 
LIABILITIES AND EQUITY                
Current liabilities:                
Short-term loans - banks   $ 273,713     $ 473,825  
Taxes payable     805,577       841,334  
Accounts payable     318,729       324,991  
Other payables and accrued liabilities     4,027,883       9,014,057  
Other payables - related party           22,643  
Operating lease liabilities - current     235,470       11,261  
Customer deposits     3,020       19,629  
Liability related to discontinued operation           6,700,468  
Total current liabilities     5,664,392       17,408,208  
Non-current liabilities:                
Operating lease liability     2,141,421       31,041  
Long-term loans banks            
Long-term loans – related party     834,950       914,771  
Convertible notes payable           1,393,499  
Total other liabilities     2,976,371       2,339,311  
Total liabilities     8,640,763       19,747,519  
Shareholder’s equity                
Ordinary shares, $0.01 par value, 500,000,000 shares authorized, 58,398,281 shares issued and outstanding as of December 31, 2023, 9,894,734 shares issued and outstanding as of December 31, 2022     583,982       98,947  
Additional paid-in capital     93,828,090       44,145,826  
Statutory reserves     2,143,252       2,143,252  
Retained earnings     (56,832,015 )     (35,113,598 )
Accumulated other comprehensive loss     898,766       834,513  
Total Blue Hat Interactive Entertainment Technology shareholders’ equity     40,622,075       12,108,940  
Non-controlling interests           2,420,399  
Total Equity     40,622,075       14,529,339  
                 
Total liabilities and shareholders’ equity   $ 49,262,838     $ 34,276,858  

 
CONSOLIDATED STATEMENTS OF INCOME (LOSS) AND COMPREHENSIVE INCOME (LOSS)
             
    Year ended   Year ended   Year ended
    December 31,   December 31,   December 31,
    2023   2022   2021
        (Restated)   (Restated)
             
Revenues   $ 73,686,733     $ 2,195,954     $ 12,139,500  
Cost of revenue     (72,532,882 )     (958,438 )     (5,782,664 )
Gross profit     1,153,851       1,237,516       6,356,836  
Operating expenses:                        
Selling     (7,677 )     (159,937 )     (315,600 )
Research and development     (2,570,158 )     (2,734,982 )     (11,233,806 )
General and administrative expenses     (13,766,487 )     (6,224,674 )     (31,335,421 )
Impairment loss     (13,693,305 )     (33,397 )     (14,632,931 )
Total operating expenses     (30,037,627 )     (9,152,990 )     (57,517,758 )
                         
(Loss)/Income from operations     (28,883,776 )     (7,915,474 )     (51,160,922 )
Other income (expense)                        
Interest income     7       374       156,038  
Interest expense     (222,057 )     (133,882 )     (229,985 )
Other finance expenses     (62,025 )     (15,264 )     (65,344 )
Other income (expense), net     66,205       39,080       (191,499 )
Total other expense, net     (217,870 )     (109,692 )     (330,790 )
                         
(Loss)/ income from Continuing Operations before income taxes     (29,101,646 )     (8,025,166 )     (51,491,712 )
Provision for income taxes     (6,081 )     (1,097,888 )     (1,104 )
(Loss)/ income from continuing operations     (29,107,727 )     (9,123,054 )     (51,492,816 )
                         
Discontinued Operations (Note 19)                        
Gain on disposal of discontinued operations     7,389,310             1,493,945  
(Loss) from discontinued operations           (282,027 )     (10,055,749 )
                         
Net Income (Loss)     (21,718,417 )     (9,405,081 )     (60,054,620 )
Less: Net (loss) income attributable to non-controlling interest     (2,420,399 )     (40,025 )     (2,918,680 )
                         
Net (Loss) Income attributable to Blue Hat Interactive Entertainment Technology     (19,298,018 )     (9,365,056 )     (57,135,940 )
                         
Other comprehensive (loss) income                        
Net (loss)/ Income from continued operations     (29,107,727 )     (9,123,054 )     (51,492,816 )
Foreign currency translation adjustment continued operation     (199,032 )     (1,883,571 )     651,272  
                         
Comprehensive (loss) income - continued operation   $ (29,306,759 )   $ (11,006,625 )   $ (50,841,544 )
Income (loss) from discontinued operation     7,389,310       (282,027 )     (8,561,804 )
Foreign currency translation adjustment - discontinued operation     263,285       258,828       66,288  
Comprehensive income (Loss) - discontinued operation   $ 7,652,595     $ (23,199 )   $ (8,495,516 )
                         
Comprehensive (loss) income   $ (21,654,164 )   $ (11,029,824 )   $ (59,337,060 )
                         
Less: Net (loss) income attributable to non-controlling interest     (2,420,399 )     (40,025 )     (2,918,680 )
                         
Comprehensive income (loss) attributable to Blue Hat Interactive Entertainment shareholders     (19,233,765 )     (10,989,799 )     (56,418,380 )
                         
Weighted average number of ordinary shares                        
Basic     29,722,950       7,639,482       5,053,727  
Diluted     30,975,275       8,565,163       5,800,048  
                         
Earnings per share                        
Basic (loss) earnings per share from continued operation   $ (0.98 )   $ (1.19 )   $ (10.19 )
Basic earnings per share from discontinued operation     0.33       (0.04 )     (1.12 )
                         
Diluted Earnings per share:                        
Diluted (loss) earnings per share from continued operation   $ (0.98 )   $ (1.19 )   $ (10.19 )
Diluted earnings per share from discontinued operation     0.33       (0.04 )     (1.12 )

 

CONSOLIDATED STATEMENTS OF CASH FLOW
             
    Year ended   Year ended   Year ended
    December 31,   December 31,   December 31,
    2023   2022   2021
        (Restated)   (Restated)
             
CASH FLOWS FROM OPERATING ACTIVITIES:                        
Net (loss) income   $ (21,718,417 )   $ (9,405,081 )   $ (60,054,620 )
Net income (loss) from discontinued operation     7,389,310       (282,027 )     (8,561,804 )
Net (loss) from continuing operation     (29,107,727 )     (9,123,054 )     (51,492,816 )
Adjustments to reconcile net income to net cash used in operating activities:                        
Depreciation of property, plant and equipment     260,883       185,083       241,265  
Amortization of intangible assets     159,579       169,149       1,557,016  
Impairment of goodwill           3,681       14,537  
Impairment of intangible assets     1,075,997             14,632,931  
Impairment of Property, plant and equipment     17,308       29,716        
Impairment of inventory     12,600,000                  
Interest expenses related to convertible note     146,322       100,314        
Share-based payments     3,659,080       4,043,550        
Issuance of common stock to pay for goods     42,420,000              
Provision for doubtful accounts     10,246,270       (1,060,782 )     (29,661,273 )
Deferred income taxes                 119,127  
Changes in operating assets and liabilities:                        
Accounts receivable     (14,915,499 )     4,762,503       9,091,390  
Accounts receivables related party                 1,906,101  
Other receivables     (1,208,861 )     385,779       24,850,497  
Inventories     (17,545,153 )     116,115       (41,460 )
Prepayments     41,367       (773,671 )     14,189,940  
Operating lease assets     22,102       276       (13,025 )
Accounts payable     (6,260 )     (21,891 )     134,526  
Other payables and accrued liabilities     (4,986,175 )     92,607       5,179,130  
Customer deposits     (16,609 )     12,549       5,532  
Taxes payable     (35,756 )     (395,191 )     (5,337,785 )
Net cash (used in) generated from operating activities - continued operation     (9,773,132 )     (1,473,267 )     (14,624,367 )
Net cash (used in) generated from operating activities - discontinued operation     7,661,561       281,780       (5,488,297 )
CASH FLOWS FROM INVESTING ACTIVITIES:                        
Purchases of property and equipment           (3,429 )     (140,962 )
Proceeds from disposal of equipment           9,760       52,799  
Purchase of intangible assets                 (16,385,451 )
Proceeds from disposal of intangible assets                 12,985,106  
Disposal of a subsidiary     (15,380 )           (866,075 )
Acquisition of subsidiaries, net of cash received           5       (162,326 )
Net cash from investing activities – continued operation     (15,380 )     6,336       (4,516,909 )
Net cash from investing activities  – discontinued operation                 (1,952 )
CASH FLOWS FROM FINANCING ACTIVITIES:                        
Proceeds from issuance of new shares     2,998,397       88,592       12,830,780  
Gross proceeds from issuance of convertible note           1,550,000        
Repayment of convertible note     (449,999 )           (739,189 )
Proceeds (Repayment) from other payables - related party           905,171       6,406  
(Repayment) from loan payables - related party     (102,464 )           (14,117 )
Change in restricted cash     (1,587 )     (1,129 )      
Repayments of short-term loans - banks     (138,393 )           (4,663,292 )
Net cash generated from financing activities – continued operation     2,305,954       2,542,634       7,420,588  
Net cash generated from financing activities – discontinued operation     (52,322 )     (11,960 )     154,260  
EFFECT OF EXCHANGE RATES ON CASH     210,505       (1,319,437 )     1,439,535  
NET CHANGES IN CASH AND CASH EQUIVALENTS     337,186       26,086       (15,617,142 )
CASH AND CASH EQUIVALENTS, beginning of year     70,402       50,449       15,752,704  
CASH AND CASH EQUIVALENTS, end of year   $ 407,588     $ 76,535     $ 135,562  
                         
Less: cash and cash equivalents from the discontinued operations, end of year           (7,262 )     (85,113 )
CASH AND CASH EQUIVALENT, FROM THE CONTINUING OPERATIONS, end of year   $ 407,588     $ 69,273     $ 50,449  
SUPPLEMENTAL CASH FLOW INFORMATION:                        
                         
Cash and cash equivalents   $ 407,588     $ 76,535     $ 135,562  
CASH AND CASH EQUIVALENTS, end of year   $ 407,588     $ 76,535     $ 135,562  
                         
Provision for doubtful trade receivables   $ (8,929,110 )   $ (1,035,345 )   $ (6,037,274 )
Provision for doubtful other receivables     (1,207,145 )     (22,869 )     (13,484,319 )
Reversal for doubtful prepayments     (110,014 )     4,925       (10,166,240 )
Allowance for inventory           (7,492 )     26,561  
(Reversal)/Provision for doubtful accounts   $ (10,246,269 )   $ (1,060,781 )   $ (29,661,272 )
                         
Cash paid for income tax   $ 6,081     $ 1,097,888     $ 1,529,850  
                         
Cash paid for interest   $ 222,057     $ 133,882     $ 229,985  
                         
SUPPLEMENTAL NON-CASH INVESTING INFORMATION:                        
Additional of operating lease, right-of-use asset   $ 2,353,083     $ 40,596     $ 118,272  
                         
SUPPLEMENTAL NON-CASH FINANCING INFORMATION:                        
Operating lease liabilities   $ 235,470     $ 11,261     $ 57,645  
Grafico Azioni Blue Hat Interactive Ent... (NASDAQ:BHAT)
Storico
Da Nov 2024 a Dic 2024 Clicca qui per i Grafici di Blue Hat Interactive Ent...
Grafico Azioni Blue Hat Interactive Ent... (NASDAQ:BHAT)
Storico
Da Dic 2023 a Dic 2024 Clicca qui per i Grafici di Blue Hat Interactive Ent...