MMTEC, INC. Announces 2019 Year-End Financial Results
BEIJING, May 23, 2020 /PRNewswire/-- MMTEC, Inc. (NasdaqCM:MTC) ("MMTec" or the "Company") a China based technology company that provides access to the U.S. financial markets announced its financial results for the year ended December 31, 2019.
Comparison of Results of Operations for the Years Ended December 31, 2019 and 2018
Revenue. Revenues increased from $26,882 in 2018 to $200,797, or 647%, in 2019 due to the increase in the revenue of the original market data service business and the addition of the IR business, as well as the acquisition of MMBD Trading brings increased commission income. For the years ended December 31, 2019 and 2018, our revenue from performing market data services for our customers increased to $75,044 from $26,882, respectively. In additional, we have expanded our investor relations management services business to help maintain the relationship between listed companies and the company's equity, debt investors or potential investors. Our revenue from investor relations management services was $86,788 for the year ended December 31, 2019. Following our acquisition of MMBD Trading and its wholly-owned subsidiary and a securities broker-dealer, we received $33,680 in commission revenue and other related revenue of $5,285 for the year ended December 31, 2019.
Cost of Revenue. For the years ended December 31, 2019 and 2018, our cost of revenue was $90,890 and $16,308, respectively. Due to the increase in revenue, the corresponding business cost has increased.
Gross Profit and Gross Margin. Our gross profit was $109,907 for the year ended December 31, 2019, representing gross margin of 54.7%. Gross profit was $10,574 for the year ended December 31, 2018, representing gross margin of 39.3%.
Loss from Operations. As a result of business expansion and increase in NASDAQ data service fee for the year ended December 31, 2019, loss from operations amounted to $2,940,776, as compared to $2,327,540 for the year ended December 31, 2018, an increase of $613,236, or 26.3%.
Other Income (Expense). Other income (expense) mainly includes interest income from bank deposits, other miscellaneous expense, government subsidies, foreign currency transaction gain (loss) and loss on equity method investment controlled by major shareholders. Other income, net, totaled $697,542 for the year ended December 31, 2019, as compared to other expense of $21,462 for the year ended December 31, 2018, a change of $719,004, which was mainly attributable to an increase in interest income from bank deposits of $36,887, an increase in government subsidy of $724,795, an increase in other expenses of $13,972, an decrease in loss on equity method investment controlled by major shareholders of $12,463, and a decrease in foreign currency transaction loss of $41,181.
Net Loss. As a result of the factors described above, our net loss was $2,243,234, or $0.11 per share (basic and diluted), for the year ended December 31, 2019. Our net loss was $2,349,002, or $0.06 per share (basic and diluted), for the year ended December 31, 2018.
ABOUT MMTEC, INC.
Headquartered in Beijing, China, our Company was founded on January 4, 2018. We have developed and deployed a series of platforms, including the ETN Counter Business System, the PTN Private Fund Investment Management System, the Personal Mobile Transaction Client System, the PC Transaction Client System, the Individual and Institutional Integrated Account Management System, and the Quantitative Investment Transaction Platform, which comprise a business chain that enables Chinese language speaking hedge funds, mutual funds, registered investment advisors, proprietary trading groups, and brokerage firms to engage in securities market transactions and settlements globally. For additional information about the Company please refer to its corporate website at http://www.51mm.com.
This press release may contain certain "forward-looking statements" relating to the business of MMTEC, Inc. and its subsidiary companies. All statements other than statements of historical fact included herein are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding the Company's the general ability of the Company to achieve its commercial objectives, the business strategy, plans and objectives of the Company and its subsidiaries, and any other statements of non-historical information. These forward-looking statements are often identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions, involve known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on its website at http://www.sec.gov. All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.
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