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FTFT Future FinTech Group Inc

0,8001

0,0388 (5,10%)

31 Mai 2024 - Fechado

Atrasado em 15 minutos

Form 10-Q - Quarterly report [Sections 13 or 15(d)]

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2024

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ____ to ____

Commission file number: 001-34502

Future FinTech Group Inc.

(Exact name of registrant as specified in its charter)

Florida		98-0222013
(State or other jurisdiction of		(I.R.S. Employer
incorporation or organization)		Identification Number)

Americas Tower, 1177 Avenue of The Americas

Suite 5100, New York, NY

(Address of principal executive offices including zip code)

888-622-1218

(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
Common Stock, par value $0.001 per share		FTFT		Nasdaq Stock Market

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. ☒ Yes ☐ No

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). ☒ Yes ☐ No

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	☐
Non-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 ☒ No.

Class		Outstanding at May 17, 2024
Common Stock, $0.001 par value per share		19,985,410

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	27
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	35
Item 4.	Controls and Procedures	35
PART II. OTHER INFORMATION		36
Item 1.	Legal Proceedings	36
Item 1A.	Risk Factors	37
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	37
Item 3.	Defaults upon Senior Securities	37
Item 4.	Mine Safety Disclosure	37
Item 5.	Other Information	37
Item 6.	Exhibits	37
SIGNATURES		38

i

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

FUTURE FINTECH GROUP INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

		March 31, 2024				December 31, 2023

ASSETS

CURRENT ASSETS
Cash and cash equivalents		$	14,886,541			$	19,032,278
Short - term investment			-				959,028
Accounts receivable, net			4,618,861				5,705,877
Notes receivable			648,344				-
Advances to suppliers and other current assets			18,391,419				3,837,752
Loan receivables			14,882,847				14,895,086
Other receivables, net			101,098				10,048,297
Amount due from related party			86,832				12,151
TOTAL CURRENT ASSETS		$	53,615,942			$	54,490,469

Property, plant and equipment, net		$	4,608,429			$	4,579,188
Right of use assets - operation lease			1,111,533				1,282,111
Intangible assets			574,548				588,982
TOTAL NON-CURRENT ASSETS			6,294,510				6,450,281
TOTAL ASSETS		$	59,910,452			$	60,940,750

LIABILITIES

CURRENT LIABILITIES
Accounts payable		$	2,245,287			$	3,320,061
Accrued expenses and other payables			13,189,384				11,997,481
Advances from customers			53,494				306,315
Convertible notes payables			1,122,663				1,100,723
Lease liability - operation lease			382,172				498,736
Amounts due to related parties			546,753				505,046
TOTAL CURRENT LIABILITIES		$	17,539,753			$	17,728,362

NON-CURRENT LIABILITIES
Lease liability - operation lease			746,265				797,344
TOTAL NON-CURRENT LIABILITIES			746,265				797,344
TOTAL LIABILITIES		$	18,286,018			$	18,525,706
Commitments and contingencies (Note 22)
STOCKHOLDER’S EQUITY

Future FinTech Group, Inc, Stockholders’ equity
Common stock, $0.001 par value; 60,000,000 shares authorized; 19,985,410 shares and 17,834,874 shares issued and outstanding as of March 31, 2024 and December 31, 2023 respectively		$	19,985			$	17,835
Additional paid-in capital			236,469,490				233,890,997
Statutory reserve			98,357				98,357
Accumulated deficits			(189,256,870	)			(185,929,662	)
Accumulated other comprehensive loss			(4,141,900	)			(4,094,276	)
Total Future FinTech Group, Inc. stockholders’ equity			43,189,062				43,983,251
Non-controlling interests			(1,564,628	)			(1,568,207	)
TOTAL STOCKHOLDERS’ EQUITY			41,624,434				42,415,044
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY			59,910,452				60,940,750

The accompanying notes are an integral part of these condensed consolidated financial statements.

1

FUTURE FINTECH GROUP INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

(Unaudited)

		Three Months Ended March 31,
		2024				2023
Revenue		$	5,122,967			$	3,364,450
Cost of revenues - third party			3,036,055				1,800,876
Cost of revenues-related party			135,640				361,958
Gross profit			1,951,272				1,201,616

Operating Expenses
General and administrative expenses			3,421,472				3,375,828
Research and development expenses			645				205,999
Selling expenses			266,685				127,162
Provision of doubtful debts			794,355				16,826
Total operating expenses			4,483,157				3,725,815

Loss from operations			(2,531,885	)			(2,524,199	)

Other (expenses) income
Interest income			305,267				455,453
Interest expenses			(24,216	)			-
Other expenses, net			(1,718,232	)			(44,729	)
Total other expense, net			(1,437,181	)			410,724

Loss before Income Tax			(3,969,066	)			(2,113,475	)
Income tax provision			-				(25,674	)

Loss from Continuing Operations		$	(3,969,066	)		$	(2,139,149	)

Discontinued Operations (Note 20)
Loss from discontinued operations			-				(108,328	)
Gain on disposal of discontinued operations			645,437				-

Net Loss			(3,323,629	)			(2,247,477	)
Less: Net Loss attributable to non-controlling interests			3,579				(71,013	)
Net loss attributable to Future Fintech Group, Inc.		$	(3,327,208	)		$	(2,176,464	)

Other comprehensive income (loss)
Loss from continued operations		$	(3,969,066	)		$	(2,139,149	)
Unrealized holding gains/(losses) on available-for-sale securities			-				180,851
Foreign currency translation – continued operations			(47,624	)			377,772
Comprehensive loss - continued operation			(4,016,690	)			(1,580,526	)
Gain from discontinued operations			645,437				(108,328	)
Foreign currency translation - discontinued operation			-				26,317
Comprehensive Gain - discontinued operation			645,437				(82,011	)

Comprehensive Loss			(3,371,253	)			(1,662,537	)
Less: Net loss attributable to non-controlling interests			3,579				(71,013	)
COMPREHENSIVE LOSS ATTRIBUTABLE TO FUTURE FINTECH GROUP INC. STOCKHOLDERS		$	(3,374,832	)			(1,591,524	)

Loss per share:
Basic loss per share from continued operation		$	(0.20	)		$	(0.14	)
Basic loss per share from discontinued operation			0.03				(0.01	)
			(0.17	)			(0.15	)
Diluted loss per share:
Diluted loss per share from continued operation		$	(0.20	)		$	(0.14	)
Diluted loss per share from discontinued operation			0.03				(0.01	)
			(0.17	)			(0.15	)
Weighted average number of shares outstanding
Basic			19,867,249				14,645,653
Diluted			19,909,357				14,856,179

The accompanying notes are an integral part of these condensed consolidated financial statements.

2

Future Fintech Group, Inc.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(Unaudited)

Three Months ended March 31, 2023

																						Accumulative
										Additional												Other				Non-
		Common Stock								paid-in				Statutory				Accumulated				comprehensive				controlling
		Shares				Amount				capital				reserve				Deficits				income				interests				Total
Balance at December 31, 2022			14,645,653			$	14,646			$	222,751,657				98,357			$	(152,276,434	)		$	(3,623,005	)		$	(1,279,580	)		$	65,685,641
Net loss from continued operation			-				-				-				-				(2,068,136	)			-				(71,013	)			(2,139,149	)
Net loss from discontinued operations			-				-				-				-				(108,328	)			-				-				(108,328	)
Unrealized holding gains/(losses) on available-for-sale securities			-				-				-				-				-				180,851				-				180,851
Disposition of discontinued operation			-				-				-				-				-				26,317				-				26,317
Foreign currency translation adjustment							-				-				-				-				377,772				-				(377,772	)
Balance at March 31, 2023			14,645,653			$	14,646			$	222,751,657				98,357			$	(154,452,898	)		$	(3,038,065	)		$	(1,350,593	)		$	64,023,104

Three Months ended March 31, 2024

																						Accumulative
										Additional												Other				Non-
		Common Stock								paid-in				Statutory				Accumulated				comprehensive				controlling
		Shares				Amount				capital				reserve				Deficits				income				interests				Total
Balance at December 31, 2023			17,834,874			$	17,835			$	233,890,997			$	98,357			$	(185,929,662	)		$	(4,094,276	)		$	(1,568,207	)		$	42,415,044
Net loss from continued operation			-				-				-				-				(3,972,645	)			-				3,579				(3,969,066	)
Issuance of common stocks-cash			2,150,536				2,150				2,578,493				-				-				-				-				2,580,643
Disposition of discontinued operation			-				-				-				-				645,437				-				-				645,437
Foreign currency translation adjustment			-				-				-				-				-				(47,624	)			-				(47,624	)
Balance at March 31, 2024			19,985,410			$	19,985			$	236,469,490				98,357			$	(189,256,870	)		$	(4,141,900	)		$	(1,564,628	)		$	41,624,434

The accompanying notes are an integral part of these condensed consolidated financial statements.

3

FUTURE FINTECH GROUP INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

		For the Three Months Ended March 31,
		2024				2023

CASH FLOWS FROM OPERATING ACTIVITIES
Net loss		$	(3,323,629	)		$	(2,247,477	)
Net gain (loss) from discontinued operation			645,437				(108,328	)
Net loss from continuing operations			(3,969,066	)			(2,139,149	)
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation			66,859				71,397
Amortization			14,259				14,259
Provision of doubtful debts			794,355				16,826
Investment loss			12,058				-
Interest expenses related to convertible note			21,940				-
Changes in operating assets and liabilities
Accounts receivable			1,127,255				3,461,950
Notes receivable			(648,344	)			-
Other receivable			9,112,605				(2,874,474	)
Advances to suppliers and other current assets			(14,553,667	)			(10,555,514	)
Operating lease assets and liabilities			2,935				-
Accounts payable			(1,074,774	)			(1,970,579	)
Accrued expenses			1,191,903				(668,773	)
Advances from customers			(252,821	)			4,370,386
Net Cash Used in Operating Activities – Continued Operations			(8,154,503	)			(10,273,671	)
Net Cash Provided in Operating Activities – Discontinued Operations			645,437				31,916

CASH FLOWS FROM INVESTING ACTIVITIES
Additions to property, plant and equipment			(145,709	)			(17,010	)
Disposal of property and equipment			1,369				-
Repayment for loan receivable			-				224,970
Payment for short term investment			946,970				-
Disposal of a subsidiary, net of cash			-				(10,720	)
Net Cash Provided by Investing Activities from Continued Operations			802,630				197,240
Net Cash Used in Investing Activities from Discontinued Operations							(51,960	)

CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from the issuance of common stock, net of issuance costs			2,580,643				-
Proceeds from amounts due from related parties, net			243,725				46,860
Repayment of amounts due to related parties, net			(275,792	)			(104,156	)
Net cash provided by financing activities from continued operations			2,548,576				(57,297	)

Effect of change in exchange rate			12,123				305,321

NET DECREASE IN CASH AND RESTRICTED CASH			(4,145,737	)			(9,848,450	)
Cash and cash equivalents, from the continuing operations beginning of year			19,032,278				29,648,236
Less: Cash and cash equivalents from the discontinued operations, end of year			-				(10,720	)
Cash and cash equivalents, from the continuing operations end of year		$	14,886,541			$	19,789,066

SUPPLEMENTARY DISCLOSURE OF SIGNIFICANT NON-CASH TRANSACTION
Issuance of common stocks (Note 19)		$	2,580,644			$	-
SUPPLEMENTAL CASH FLOW INFORMATION
Cash paid for income taxes		$	6,208			$	63,162

The accompanying notes are an integral part of these condensed consolidated financial statements.

4

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 historically 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 had 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, asset management business in Hong Kong and cross-border money transfer service in UK. The Company also expanded into brokerage and investment banking business in Hong Kong and cryptocurrency mining farm in the U.S. The Company had a contractual arrangements 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 authority on March 7, 2024.

On February 27, 2023, Future FinTech (Hong Kong) Limited (“Buyer”), a company incorporated in Hong Kong and a wholly owned subsidiary of Future FinTech Group Inc. (the “Company”) entered into a Share Transfer Agreement (the “Agreement”) with Alpha Financial Limited, a company incorporated in Hong Kong (“Seller”) and sole owner and shareholder of Alpha International Securities (Hong Kong) Limited, a company incorporated in Hong Kong (“Alpha HK”) and Alpha Information Service (Shenzhen) Co., Ltd., a company incorporated in China (“Alpha SZ”). Alpha HK 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. Alpha SZ provides technical support services to Alpha HK. The share transfer transaction was approved by the Securities and Futures Commission of Hong Kong (“SFC”) in August 2023 and the acquisition was closed on November 7, 2023. The names of the two entities were also changed to ‘FTFT International Securities and Futures Limited’ and ‘FTFT Information Services (Shenzhen) Co. Ltd.’ in November 2023, respectively.

The Company’s business and operations are principally conducted by its subsidiaries in the PRC and Hong Kong.

On January 26, 2023, 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 1-for-5 reverse stock split of the Company’s authorized shares of common stock from 300,000,000 shares to 60,000,000 shares, accompanied by a corresponding decrease in the Company’s issued and outstanding shares of common stock (the “Reverse Stock Split”). The common stock continues to be $0.001 par value. The Company rounded up to the next full share of the Company’s shares of common stock any fractional shares that resulted from the Reverse Stock Split and no fractional shares was issued in connection with the Reverse Stock Split and no cash or other consideration was paid in connection with any fractional shares that would otherwise have resulted from the Reverse Stock Split. No changes were made to the number of preferred shares of the Company which remain as 10,000,000 preferred shares as authorized but not issued. The amendment to the Articles of Incorporation of the Company took effect on February 1, 2023. The Reverse Stock Split and Amendment were authorized and approved by the Board of Directors of the Company without shareholders’ approval, pursuant to 607.10025 of the Florida Business Corporation Act of the State of Florida.

The reverse stock split would be reflected in our March 31, 2024 and December 31, 2023 statements of changes in stockholders’ equity, and in per share data for all periods presented.

5

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 March 31, 2024 and the results of operations and cash flows for the periods ended March 31, 2024 and 2023. 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 months ended March 31, 2024 are not necessarily indicative of the results to be expected for any subsequent periods or for the entire year ending December 31, 2024. The balance sheet at December 31, 2023 has been derived from the audited financial statements at that date.

Our contractual arrangements with the VIE and their respective shareholders allow us to (i) exercise effective control over the VIE, (ii) receive substantially all of the economic benefits of the VIE, and (iii) have an exclusive option to purchase all or part of the equity interests in the VIE when and to the extent permitted by PRC law.

As a result of our direct ownership in our wholly owned subsidiary and the contractual arrangements with the VIE, we are regarded as the primary beneficiary of the VIE, and we treat it and its subsidiaries as our consolidated affiliated entities under U.S. GAAP. We have consolidated the financial results of the VIE in our condensed consolidated financial statements in accordance with U.S. GAAP

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 our audited financial statements and notes thereto for the year ended December 31, 2023 as included in our Annual Report on Form 10-K.

Discontinued Operations

On June 16, 2023, QR (HK) Limited was dissolved and deregistered.

On December 5, 2023, FTFT PARAGUAY S.A. was dissolved.

On March 7, 2024, Chain Cloud Mall Network and Technology (Tianjin) Co., Limited was dissolved and deregistered.

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.

Segment Information Reclassification

The Company classified business segment into supply chain financing and trading and asset management services, and others.

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 not limited to, the allowance for doubtful receivable, 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 our condensed consolidated financial statements.

6

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 amounted $3.97 million, and it had negative operating cash flows amounted $8.15 million as of March 31, 2024. These factors raise substantial doubts about the Company’s ability to continue as a going concern. The Company has raised funds through issuance of convertible notes and common stock.

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.

Research and development

Research and development expenses include salaries, contracted services, as well as the related expenses for our research and product development team, and expenditures relating to our efforts to develop, design, and enhance our service to our clients. The Company expenses research and development costs as they are incurred.

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.

Our cash and cash equivalents and restricted cash and short-term investments are classified within level 1 of the fair value hierarchy because they are value using quoted market price.

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.

7

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.

As of March 31, 2024:

		Income				Share				Pre-share amount

Loss from continued operations attributable to Future Fintech Group, Inc.		$	(3,972,645	)			19,867,249			$	(0.20	)
Income from discontinued operations attributable to Future Fintech Group, Inc.			645,437				19,867,249				0.03

Basic EPS:
Loss to common stockholders from continuing operations			(3,972,645	)			19,867,249				(0.20	)
Income available to common stockholders from discontinued operations		$	645,437				19,867,249			$	0.03

Dilutive EPS:

Warrants			-				42,108				-
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 continued operations attributable to Future Fintech Group, Inc.			(3,972,645	)			19,909,357				(0.20	)
Diluted earnings per share is calculated by taking net loss, divided by the diluted weighted average common shares outstanding from discontinued operations			645,437				19,909,357				0.03

As of March 31, 2023:

		Income				Share				Pre-share amount

Loss from continued operations attributable to Future Fintech Group, Inc.		$	(2,068,136	)			14,645,653			$	(0.14	)
Income from discontinued operations attributable to Future Fintech Group, Inc.			(108,328	)			14,645,653				(0.01	)

Basic EPS:
Loss to common stockholders from continuing operations			(2,068,136	)			14,645,653				(0.14	)
Loss available to common stockholders from discontinued operations		$	(108,328	)			14,645,653			$	(0.01	)

Dilutive EPS:

Warrants			-				210,526
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 continued operations attributable to Future Fintech Group, Inc.			(2,068,136	)			14,856,179				(0.14	)
Diluted loss per share is calculated by taking net loss, divided by the diluted weighted average common shares outstanding from discontinued operations			(108,328	)			14,856,179				(0.01	)

8

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 RMB500,000, in the HK are only insured by the government up to HKD500,000, in the United Kingdom are only insured by the government up to GBP18,000, in the United States of America are only insured by the Federal Deposit Insurance Corporation up to USD250,000, and are consequently exposed to risk of loss.

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 consolidated balance sheets, and is not included in the total cash and cash equivalents in the consolidated statements of cash flows.

Receivable and Allowances

Accounts receivable are recognized and carried at the original invoice amounts less an allowance for any uncollectible amount. We have a policy of reserving for uncollectible accounts based on our best estimate of the amount of probable credit losses in our existing accounts receivable. We perform ongoing credit evaluations of our customers and maintain 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 any uncollectible amount. We have a policy of reserving for uncollectible accounts based on our best estimate of the amount of probable impairment losses in our existing receivable.

Allowances for doubtful accounts 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 “Bad debt expense” in the consolidated statements of comprehensive income. We determine 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, we use 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. We may also record a general allowance as necessary.

Direct write-offs are taken in the period when we have exhausted our efforts to collect overdue and unpaid receivable or otherwise evaluate other circumstances that indicate that we should abandon such efforts.

The Company has assessed its accounts receivable including credit term and corresponding all its accounts receivables as of March 31, 2024. Bad debt expense was $794,355 and $16,826 during the three months ended March 31, 2024 and 2023, respectively. Accounts receivables of $1.79 million and $0.97 million have been outstanding for over 90 days as of March 31, 2024 and December 31, 2023, respectively.

Revenue Recognition

We apply 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. We assess 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. We allocate 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.

9

We do not make any significant judgment in evaluating when control is transferred. Revenue is recorded net of value-added tax.

Revenue recognitions are as follows:

Sales of coals, aluminum ingots, sand and steel

The Company recognize 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 was $0.40 million and nil during the three months ended March 31, 2024 and 2023, respectively.

Sales agent services for coals, aluminum ingots, sand and steel

For the sale of third-party products where the Company obtains control of the product before transferring it to the customer, the Company recognizes revenue based on the gross amount billed to customers. The Company considers multiple factors when determining whether it obtains control of third-party products, including evaluating if it can establish the price of the product, retains inventory risk for tangible products or has the responsibility for ensuring acceptability of the product. The Company recognizes net revenue from sales agent service fees of coals, aluminum ingots, sand and steel when no control obtained throughout the transactions. Revenue was $0.04 million and $0.11 million during the three months ended March 31, 2024 and 2023, respectively.

Asset Management Service

The Company recognizes service revenue when a service is rendered, the Company issues bills to its customers and recognizes revenue according to the bills.

Property, Plant and Equipment

Property, plant 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 consolidated statements of income and comprehensive income.

Depreciation related to property, plant and equipment used in production is reported in cost of sales, and includes amortized amounts related to capital leases. We estimated that the residual value of the Company’s property and equipment ranges from 3% to 5%. Property, plant and equipment are depreciated over their estimated useful lives as follows:

Machinery and equipment		5-10 years
Building		30 years
Furniture and office equipment		3-5 years
Motor vehicles		5 years

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 ten year, which is determined by using the time period that an intangible is estimated to contribute directly or indirectly to a Company’s future cash flows.

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Foreign Currency and Other Comprehensive Income (Loss)

The financial statements of the Company’s foreign subsidiaries and VIE 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 historical exchange rate.

The exchange rate we used to convert RMB to USD was 7.10:1 and 7.08:1 at the balance sheet dates of March 31, 2024 and December 31, 2023, respectively. The average exchange rate for the period has been used to translate revenues and expenses. The average exchange rates we used to convert RMB to USD were 7.10:1 and 6.67:1 for three months ended March 31, 2024 and 2023, respectively.

The exchange rate we used to convert HKD to USD was 7.83:1 and 7.82:1 at the balance sheet dates of March 31, 2024 and December 31, 2023. The average exchange rate for the period has been used to translate revenues and expenses. The average exchange rates we used to convert HKD to USD were 7.82:1 and 7.84:1 for three months ended March 31, 2024 and 2023, respectively.

The exchange rate we used to convert GBP to USD was 0.79:1 and 0.78:1 at the balance sheet dates of March 31, 2024 and December 31, 2023. The average exchange rate for the period has been used to translate revenues and expenses. The average exchange rates we used to convert GBP to USD were 0.79:1 and 0.82:1 for three months ended March 31, 2024 and 2023, respectively.

The exchange rate we used to convert AED to USD was 3.66:1 and 3.66:1 at the balance sheet dates of March 31, 2024 and December 31, 2023. The average exchange rate for the period has been used to translate revenues and expenses. The average exchange rates we used to convert AED to USD were 3.67:1 and 3.67:1 for three months ended March 31 2024 and 2023, respectively.

The exchange rate we used to convert PYG to USD was 7393.74:1 and 7298.63:1 at the balance sheet dates of March 31, 2024 and December 31, 2023. The average exchange rate for the period has been used to translate revenues and expenses. The average exchange rate we used to convert PYG to USD was 7290.28:1 and 7275.55:1 for three months ended March 31 2024 and 2023, respectively.

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 consolidated statements 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.

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Income Taxes

We use 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. We have no material uncertain tax positions for any of the reporting periods presented.

Goodwill

The Company tests goodwill for impairment for its reporting units on an annual basis, or when events occur or circumstances indicate the fair value of a reporting unit is below its carrying value. If the fair value of a reporting unit is less than its carrying value, an impairment loss is recorded to the extent that implied fair value of the goodwill within the reporting unit is less than its carrying value.

The Company’s evaluation of goodwill for impairment involves the comparison of the fair value of the reporting unit to its carrying value. The Company uses the discounted cash flow model to estimate fair value, which requires management to make significant estimates and assumptions related to forecasts of future revenue and operating margin. In addition, the discounted cash flow model requires the Company to select an appropriate weighted average cost of capital based on current market conditions as of March 31, 2024 and December 31, 2023. A high degree of auditor judgment and an increased extent of effort were required when performing audit procedures to evaluate the reasonableness of management’s estimates and assumptions related to the forecasts. Based upon the assessment, the Company has concluded that goodwill was nil as of March 31, 2024 and December 31, 2023.

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 March 31, 2024 and December 31, 2023, the short-term investments amounted to nil and $0.96 million, respectively. On March 5, 2024, the Company sold the short – term investments at the amount of $0.95 million, investment loss $0.01 million. Due to fluctuations of the quoted shares included in its investment portfolios, the Company unrealized holding gains on available-for-sale securities of nil and $0.18 million on March 31, 2024 and 2023.

Lease

We adopted ASU No. 2016-02, Leases (Topic 842), or ASC 842, from January 1, 2020. We determine if an arrangement is a lease or contains a lease at lease inception. For operating leases, we recognize 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 consolidated balance sheets at commencement date. As most of our leases do not provide an implicit rate, we estimate our 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. Our leases often include options to extend and lease terms include such extended terms when we are reasonably certain to exercise those options. Lease terms also include periods covered by options to terminate the leases when we are reasonably certain not to exercise those options.

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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 June 2016, the FASB issued ASU No. 2016-13 (“ASU 2016-13”) “Financial Instruments - Credit Losses” (“ASC 326”): Measurement of Credit Losses on Financial Instruments” which requires the measurement and recognition of expected credit losses for financial assets held at amortized cost. ASU 2016-13 replaces the existing incurred loss impairment model with an expected loss model which requires the use of forward-looking information to calculate credit loss estimates. It also eliminates the concept of other-than-temporary impairment and requires credit losses related to available-for-sale debt securities to be recorded through an allowance for credit losses rather than as a reduction in the amortized cost basis of the securities. These changes will result in earlier recognition of credit losses. In November 2019, the FASB issued ASU 2019-10 “Financial Instruments – Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842)” (“ASC 2019-10”), which defers the effective date of ASU 2016-13 to fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, for public entities which meet the definition of a smaller reporting company. The Company adopt ASU 2016-13 effective January 1, 2023. Management adopted of ASU 2016-13 on the consolidated financial statements. The effect will largely depend on the composition and credit quality of our investment portfolio and the economic conditions at the time of adoption.

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 consolidated financial statements.

3. ACCOUNTS RECEIVABLE

Accounts receivable, net consist of the following:

		March 31,				December 31,
		2024				2023

Supply Chain Financing/Trading		$	1,848,841			$	3,251,822
Asset management service		$	1,858,231			$	1,250,613
Others		$	911,789			$	1,203,442
Total accounts receivable, net		$	4,618,861			$	5,705,877

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The following table sets forth our concentration of accounts receivable, net of specific allowances for doubtful accounts.

		March 31,				December 31,
		2024				2023

Debtor A			32.58	%			21.11	%
Debtor B			19.93	%			15.35	%
Debtor C			9.91	%			15.25	%
Total accounts receivable, net			62.42	%			51.71	%

4. NOTE RECEIVABLES

As of March 31, 2024, the balance of note receivables was $0.65 million, which was from a third party.

The Company accepted $0.65 million (RMB4.60 million) bank acceptance drafts from a third party, interest free of accounts receivable. The acceptance draft was issued on January 24, 2024 and has a maturity date of July 26, 2024.

5. OTHER RECEIVABLES

As of March 31, 2024, the balance of other receivables was $0.10 million.

As of December 31, 2023, the balance of other receivables was $10.05 million.

As of April 22, 2022 and January 31, 2023, FTFT Super Computing Inc. entered into a “Electricity Sales and Purchase Agreement” with a third-party seller. FTFT Super Computing Inc. provided an initial amount of Adequate Assurance to the seller in the form of a cash deposit in the amount of $1.86 million and has receivables from pre purchase electricity $0.07 million.

On February 3, 2023, Future Fintech Group Inc. entered into a “Consulting Agreement” with a third party for its professional service of potential acquisition projects. Future Fintech Group Inc. provided initial amount of cash deposit to the third party in the amount of $2.40 million.

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On December 6, 2023, Future Fintech (Hong Kong) Limited entered into a “Mobile Software Application Development Agreement” with a third-party. Future Fintech (Hong Kong) Limited shall pay $4.00 million. Future Fintech (Hong Kong) Limited provided initial amount of cash deposit to the third party in the amount of $2.00 million. Development shall take 250 man-days.

On December 6, 2023, Future Fintech (Hong Kong) Limited entered into a “Augmented Reality (AR) Group Development and Service Agreement” with a third-party. Future Fintech (Hong Kong) Limited shall pay $5.00 million. Future Fintech (Hong Kong) Limited provided initial amount of cash deposit to the third party in the amount of $2.50 million. Development shall take 180 man-days.

In addition, other receivables included total $1.22 million deposit paid and prepayments to third parties.

6. LOAN RECEIVABLES

As of March 31, 2024, the balance of loan receivables was $14.88 million, which were from third parties.

On March 10, 2022, Future FinTech (Hong Kong) Limited (“FTFT HK”), a wholly owned subsidiary of the Company, entered into a “Loan Agreement” with a third party. Pursuant to the Loan Agreement, FTFT HK loaned an amount of $5.00 million to the third party at the annual interest rate of 10% from March 10, 2022 to September 9, 2024. To strengthen the liquidity, the Company negotiated with the borrower to early settle part of the loan. As of May 13, 2024, the Company has received repayment $2.16 million.

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 $7.05 million (RMB50 million) to the third party at the annual interest rate of 8% from July 15, 2022 to July 14, 2024, guarantee by Junde Chen. To strengthen the liquidity, the Company negotiated with the borrower to early settle part of the loan. As of April 17, 2023, the Company has received repayment $4.93 million (RMB35 million). The amount of $2.11 million (RMB15 million) will be repaid before July 14, 2024.

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 $4.93 million (RMB35 million) to the third party at the annual interest rate of 5% from December 8, 2022 to December 8, 2024.

On December 8, 2023, Future Fin Tech (Hong Kong) Limited entered into a “Loan Agreement” with a third party. Pursuant to the Loan Agreement, Future Fin Tech (Hong Kong) Limited loaned an amount of $5.00 million to the third party at the annual interest rate of 5% from December 8, 2022 to December 8, 2024.

As of December 31, 2023, the balance of loan receivables was $14.90 million, which was from a third party.

On March 10, 2022, FTFT HK entered into a “Loan Agreement” with a third party. Pursuant to the Loan Agreement, FTFT HK loaned an amount of $5.00 million to the third party at the annual interest rate of 10% from March 10, 2022 to September 9, 2024. To strengthen the liquidity, the Company negotiated with the borrower to early settle part of the loan. As of April 17, 2023, the Company has received repayment $2.16 million.

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 $7.28 million (RMB50 million) to the third party at the annual interest rate of 8% from July 15, 2022 to July 14, 2024, guarantee by Junde Chen. To strengthen the liquidity, the Company negotiated with the borrower to early settle part of the loan. As of April 17, 2023, the Company has received repayment $5.09 million (RMB35 million). The amount of $2.12 million (RMB15 million) will be repaid before July 14, 2024.

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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 $4.94 million (RMB35 million) to the third party at the annual interest rate of 5% from December 8, 2023 to December 8, 2024.

On December 8, 2023, Future Fin Tech (Hong Kong) Limited entered into a “Loan Agreement” with a third party. Pursuant to the Loan Agreement, Future Fin Tech (Hong Kong) Limited loaned an amount of $5.00 million to the third party at the annual interest rate of 5% from December 8, 2023 to December 8, 2024.

7. SHORT - TERM INVESTMENT

As of March 31, 2024, the balance of short - term investments was nil. On March 5, 2024, the Company sold the short – team investments amount of $0.95 million, with an investment loss $0.01 million.

As of December 31, 2023, the balance of short - term investments was $0.96 million. On September 6, 2021, Future Private Equity Fund Management (Hainan) Co., Ltd. invested $1.87 million (RMB13,000,000) to entrust Shanghai Yuli Enterprise Management Consulting Firm to invest in various types of investment portfolios. According to the market value, the Company’s balance of the short - term investments was $ 0.98 on December 31, 2023. Due to fluctuations of the quoted shares included in its investment portfolios, the Company recognized an impairment to the investment portfolio of $12,633 million for the years ended December 31, 2023.

8. OTHER CURRENT ASSETS

The amount of other current assets consisted of the followings:

		March 31,				December 31,
		2024				2023

Prepayments for Supply Chain Financing/Trading		$	4,016,482			$	2,743,539
Prepaid expenses			9,823,422				29,694
Deposit			3,246,774				-
Others			1,304,741				1,064,519
Total		$	18,391,419			$	3,837,752

As of March 31, 2024, prepaid expenses were 9.82 million.

On February 3, 2023, Future Fintech Group Inc. entered into a “Consulting Agreement” with a third party for its professional service of potential acquisition projects. Future Fintech Group Inc. provided initial amount of cash deposit to the third party in the amount of $2.40 million.

On December 6, 2023, Future Fintech (Hong Kong) Limited entered into a “Mobile Software Application Development Agreement” with a third-party. Future Fintech (Hong Kong) Limited shall pay $4.00 million. Future Fintech (Hong Kong) Limited provided initial amount of cash deposit to the third party in the amount of $2.00 million. Development shall take 250 man-days.

On December 6, 2023, Future Fintech (Hong Kong) Limited entered into a “Augmented Reality (AR) Group Development and Service Agreement” with a third-party. Future Fintech (Hong Kong) Limited shall pay $5.08 million. Future Fintech (Hong Kong) Limited provided initial amount of cash deposit to the third party in the amount of $2.50 million. Development shall take 180 man-days. On March 8, 2024, the Company pays the remaining balance $2.58 million.

In addition, other receivables included total $0.34 million prepayments to a third party.

9. ACQUISITION

Alpha International Securities (Hong Kong) Limited

On November 7, 2023, Future FinTech (Hong Kong) Limited, a wholly owned subsidiary of the Company completed the acquisition ("Acquisition Date”) of 100% equity interest of Alpha International Securities (Hong Kong) Limited a company incorporated in Hong Kong for $1,791,174 (HKD14,010,421). Alpha International Securities (Hong Kong) Limited is in the securities business in Hong Kong. The Company has changed its name from Alpha International Securities (Hong Kong) Limited to FTFT International Securities and Futures Limited in November 2023.

Alpha Information Services (Shenzhen) Co., Ltd

On November 7, 2023, Future FinTech (Hong Kong) Limited, a wholly owned subsidiary of the Company acquired 100% equity interest of Alpha Information Services (Shenzhen) Co., Ltd. for $210,788 (HKD1,649,528). Alpha Information Services (Shenzhen) Co., Ltd provides information services for FTFT International Securities and Futures Limited. The Company has changed its name from Alpha Information Services (Shenzhen) Co., Ltd to Future information service (Shenzhen) Co., Ltd in November 2023.

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The following table summarizes the allocation of estimated fair values of net assets acquired and liabilities assumed:

Accounts receivable		$	1,526,360
Other current assets			171,038
Property, plant and equipment, net			1,458
Intangible assets			127,846
Right of use assets			8,875
Lease liability-current			(8,875	)
Accounts payable			(4,123,903	)
Accrued expenses and other payables			(552,484	)
Net identifiable assets acquired		$	(2,849,685	)
Add: goodwill			172,213
Total purchase price for acquisition net of $4,679,434 of cash		$	(2,677,472	)

The Company has included the operating results of FTFT International Securities and Futures Limited in its consolidated financial statements since the Acquisition Date. US$294,437 in net sales and US$88,408 in net income of FTFT International Securities and Futures Limited were included in the consolidated financial statements for the years ended December 31, 2023.

The Company has included the operating results of Future information service (Shenzhen) Co., Ltd in its consolidated financial statements since the Acquisition Date. US$1,390 in net sales and US$50,80 in net loss of Future information service (Shenzhen) Co., Ltd were included in the consolidated financial statements for the years ended December 31, 2023.

10. 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 three months ended March 31, 2024, the operating lease cost was $0.18 million.

The Company’s operating leases have remaining lease terms of approximately 53 months. As of March 31, 2024, the weighted average remaining lease term and weighted average discount rate were 3.56 years and 4.75%, respectively.

Maturities of lease liabilities were as follows:

		Operating
As of March 31,		Lease
From April 1, 2024 to March 31, 2025		$	435,223
From April 1, 2025 to March 31, 2026			254,858
From April 1, 2026 to March 31, 2027			241,275
From April 1, 2027 to March 31, 2028			200,526
From April 1, 2028 to March 31, 2029			83,553
Total		$	1,215,435
Less: amounts representing interest		$	86,998
Present Value of future minimum lease payments			1,128,437
Less: Current obligations			382,172
Long term obligations		$	746,265

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 $1,979 for three months ended March 31, 2024.

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11. PROPERTY AND EQUIPMENT

Property and equipment consist of the following:

		March 31,				December 31,
		2024				2023

Office equipment, fixtures and furniture		$	638,345			$	633,936
Vehicle			728,201				730,998
Building			162,328				146,053
Subtotal			1,528,874				1,510,987
Less: accumulated depreciation and amortization			(778,667	)			(716,828	)
Construction in progress			3,863,806				3,790,623
Impairment			(5,584	)			(5,594	)
Total		$	4,608,429			$	4,579,188

Depreciation expense included in general and administration expenses for the three months ended March 31, 2024 and 2023 was $66,859 and $71,397, respectively. Depreciation expense included in cost of sales for the three months ended March 31, 2024 and 2023 was $0 and $0, respectively.

12. INTANGIBLE ASSETS

Intangible assets consist of the following:

		March 31,				December 31,
		2024				2023

Trademarks		$	128,619				847
System and software			2,506,301				2,730,549
Subtotal			2,634,920				2,731,396
Less: accumulated depreciation and amortization			(318,934	)			(311,131	)
Less: impairment			(1,741,438	)			(1,831,283	)
Total		$	574,548			$	588,982

Amortization expense included in general and administration expenses for the three months ended March 31, 2024 and 2023 was $14,259 and $14,259, respectively. Amortization expense included in cost of sales for the three months ended March 31, 2024 and 2023 was $0 and $0, respectively.

The estimated amortization is as follows:

As of March 31,		Estimated amortization expense
From April 1, 2024 to March 31, 2025		$	57,035
From April 1, 2025 to March 31, 2026			57,035
From April 1, 2026 to March 31, 2027			57,035
From April 1, 2027 to March 31, 2028			57,035
From April 1, 2028 to March 31, 2029			57,035
Thereafter			161,600
Total		$	446,775

Type 1 and Type 2 licenses by Hong Kong Securities and Futures Commission have no expiration date and do not require amortization, amount was $127,773.

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13. ACCOUNT PAYABLES

The amount of account payables were consisted of the followings:

		March 31,				December 31,
		2024				2023

Supply Chain Financing/Trading payment		$	118,274			$	728,010
Others			2,127,013				2,592,051
Total		$	2,245,287			$	3,320,061

14. ACCRUED EXPENSES AND OTHER PAYABLES

The amount of accrued expenses and other payables consisted of the followings:

		March 31,				December 31,
		2024				2023

Legal fee and other professionals		$	1,055,018			$	832,263
Wages and employee reimbursement			165,550				509,288
Provision for legal case			10,598,380				8,875,265
Suppliers			841,874				731,521
Accruals			528,562				1,049,144
Total		$	13,189,384			$	11,997,481

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 $8,875,265. On April 16, 2024, the Court issued an amended judgment, awarding FT Global $10,598,379.93, which includes $7,895,265.31 in damages, $1,723,114.62 in prejudgment interest, and $980,000.00 in attorney’s fees.

15. CONVERTIBLE NOTES PAYABLE

The amount of convertible notes payable consisted of the followings:

		March 31,				December 31,
		2024				2023

Beginning		$	1,100,723			$	-
Addition			-				1,100,723
Interest expenses			21,940				-
Payment			-				-
Conversion			-				-
Balance		$	1,122,663			$	1,100,723

16. RELATED PARTY TRANSACTION

As of March 31, 2024, the amounts due to the related parties were consisted of the followings:

Name		Amount (US$)				Relationship		Note
Chan Siu Kei			431,757			NTAM’s Director		Other payables, interest free and payment on demand.
JKNDC Ltd			114,996			A company owned by the minority shareholder of NTAM		Other payables, interest free and payment on demand.
Total		$	546,753

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As of March 31, 2024, the amounts due from the related parties were consisted of the followings:

Name		Amount (US$)				Relationship		Note
Xiaochen Zhao			929			Corporate legal representative		Prepaid expenses, interest free and payment on demand.
Hu Li			20,000			Corporate Secretary		Prepaid expenses, interest free and payment on demand.
Chao Li			2,115			Corporate legal representative		Prepaid expenses, interest free and payment on demand.
Ming Yi			63,788			Chief Financial Officer of the Company		Prepaid expenses, interest free and payment on demand.
Total		$	86,832

During three months ended March 31, 2024, the Company had the following transactions with related parties:

Name		Amount				Relationship		Note
JKNDC Limited		$	1,918			A company owned by the minority shareholder of NTAM		Other expenses
JKNDC Limited			135,640			A company owned by the minority shareholder of NTAM		Cost of revenue- Asset management service
Nice Talent Partner Limited			115,087			A company owned by the minority shareholder of NTAM		Consultancy fee

As of December 31, 2023, the amount due to the related parties was consisted of the followings:

Name		Amount				Relationship		Note
Chao Li		$	73,893			Corporate legal representative		Other payables, interest free and payment on demand.
Ming Yi			29,513			Chief Financial Officer of the Company		Accrued expenses, interest free and payment on demand.
Xiaochen Zhao			124			Corporate legal representative		Accrued expenses, interest free and payment on demand.
Chan Siu Kei			401,516			NTAM’s Director		Other payables, interest free and payment on demand.
Total		$	505,046

As of December 31, 2023, the amount due from the related parties was consisted of the followings:

Name		Amount				Relationship		Note
Kai Xu		$	12,151			Deputy General Manager of a subsidiary of the Company		Loan receivables*, interest free and payment on demand.
Total		$	12,151

During three months ended March 31, 2023, the Company had the following transactions with related parties:

Name		Amount				Relationship		Note
JKNDC Limited		$	1,914			A company owned by the minority shareholder of NTAM		Other expenses
JKNDC Limited			361,958			A company owned by the minority shareholder of NTAM		Cost of revenue- Asset management service
Alpha Yield Limited			178,913			A director of the Company is a shareholder of this company		Consultancy fee
Nice Talent Partner Limited			76,542			A company owned by the minority shareholder of NTAM		Consultancy fee

*

The related party transactions have been approved by the Company’s Audit Committee.

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17. 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 21% in 2024 and 2023. No provisions for income taxes have been made, as the Company had no U.S. taxable income for the three months ended March 31, 2024 and 2023. For the three months ended March 31, 2024 and 2023, the Company had current income tax expenses of nil and $25,674, respectively.

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 March 31, 2024, the Company had no 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 and a VIE.

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 25% on all domestic-invested enterprises and foreign-invested enterprises in the PRC, unless they qualify under certain limited exceptions. The tax rate for pre-tax profits below RMB 1 million is 2.5%; the tax rate for pre-tax profits between RMB1 million to RMB 3 million is 10% and the tax rate for pre-tax profits over RMB 3 million is 25%. E-Commerce Tianjin, Future Supply (Chengdu) Co., Ltd. and Future Big Data (Chengdu) Co., Ltd. were subject to an enterprise income tax rate of 2.5% and 10%. Other subsidiaries and VIE were subject to an enterprise income tax rate of 25%.

Future Fin Tech (HongKong) Limited, QR (HK) Limited and Nice Talent Asset Management 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 16.5% in Hong Kong.

FTFT UK Limited and FTFT Finance UK Limited are incorporated in United Kingdom and are subject to United Kingdom Profits Tax on the taxable income as reported in its statutory financial statements adjusted in accordance with relevant United Kingdom tax laws. The applicable tax rate is 19% in United Kingdom.

FTFT Capital investments L.L.C is incorporated in Dubai, United Arab Emirates. The applicable tax rate is nil in Dubai, United Arab Emirates.

Digipay Fintech Limited is incorporated in British Virgin Island. The applicable tax rate is nil in British Virgin Island.

Reconciliation of the differences between the statutory EIT rate applicable to profits of the consolidated entities and the income tax expenses of the Company:

		March 31, 2024				March 31, 2023

Loss before taxation		$	(3,969,066	)		$	(2,113,475	)
PRC statutory tax rate			25	%			25	%
Computed expected benefits			(992,267	)			(528,369	)
Others, primarily the differences in tax rates			263,975				50,866
Deferred tax assets losses not recognized			728,292				503,177
Total		$	-			$	25,674

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18. SHARE BASED COMPENSATION

On February 1, 2023, the Company effected a 1-for-5 reverse stock split of the Company’s issued and authorized shares and its total authorized shares of common stock reduced from 300,000,000 shares to 60,000,000 shares.

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 10% of their net income to the statutory reserve prior to payment of any dividends, unless the reserve has reached 50% of their respective registered capital. Furthermore, registered share capital and capital reserve accounts are also restricted from distribution. As a result of the restrictions described above and elsewhere under PRC laws and regulations, the Company’s subsidiaries incorporated in the PRC are restricted in their ability to transfer a portion of their net assets to the Company in the form of dividends. The restriction amounted to $24.83 million (RMB176,144,932) as of March 31, 2024. Except for the above or disclosed elsewhere, there is no other restriction on the use of proceeds generated by the Company’s subsidiaries to satisfy any obligations of the Company.

Payments-omnibus equity plan

On October 12, 2023, the Compensation Committee of the Board of Directors of the Company granted 2,890,000 shares of common stock of the Company, par value $0.001, pursuant to the Company’s 2023 Omnibus Equity Plan, to certain officers and employees of the Company and its subsidiaries (the “Grantees”). As the closing price of the Company stock was $1.20 on December 23, 2023, the Company recorded an expense of $3.47 million in the third quarter of fiscal year 2023. As of the date of this report, the Shares have been issued to the Grantees.

19. 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 4,210,530 units, each consisting of one share of our common stock and a warrant to purchase 1 share of our Common Stock, at a purchase price of $1.90 per unit, for aggregate gross proceeds to the Company of $8,000,007, before deducting fees to the placement agent and other offering expenses payable by the Company. On December 29, 2020, the Company issued Units consisting of an aggregate of 4,210,530 shares of our Common Stock and warrants to purchase up to an aggregate of 4,210,530 shares of our Common Stock at an exercise price of $2.15 per share (the “Investors’ Warrants”). The Investors’ Warrants have a term of five years and are exercisable by the holder at any time after the date of issuance. In connection with the offering, the Company also issued placement agent a warrant to purchase 210,526 shares of our Common Stock (the “Placement Agent Warrant”) on substantially the same terms as the Investors’ Warrants, except that the Placement Agent Warrant has an exercise price of $2.375 per share and are not exercisable until June 24, 2021. The share numbers in the descriptions above are pre reverse split on February 1, 2023. As of December 31, 2023, outstanding warrant has 42,108 underlying shares of our Common Stock.

On August 6, 2021, the Company, through its wholly owned subsidiary Future FinTech (Hong Kong) Limited., completed its acquisition of 90% of the issued and outstanding shares of Nice Talent Asset Management Limited from Joy Rich Enterprises Limited (the “Nice Shares”) for HK$144,000,000 (the “Purchase Price”) which shall be paid in the shares of common stock of the Company (the “Company Shares”). 60% of the purchase price ($11.22 million) was paid in 2,244,156 pre reverse split shares of common stock of the Company on August 4, 2021, at a price of $5 per share. 40% of the Purchase Price ($7.39 million) was paid in 299,221 shares of common stock of the Company on October 17, 2023.

On January 5, 2024, the Company entered into a securities purchase agreement with certain purchasers identified on the signature page thereto, pursuant to which the Company sold to the purchasers in a private placement, an aggregate of 2,150,536 share of its common stock, par value $0.001 per share at a purchase price of $1.20 per share, for aggregate net proceeds to the Company of $2,580,644. On January 18, 2024, the Company issued 2,150,536 shares of common stock pursuant to this Agreement.

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20. DISCONTINUED OPERATIONS

On June 16, 2023, QR (HK) Limited was dissolved and deregistered.

On December 5, 2023, FTFT PARAGUAY S.A. was dissolved.

On March 7, 2024, Chain Cloud Mall Network and Technology (Tianjin) Co., Limited was dissolved and deregistered.

Loss from discontinued operations for the three months ended March 31, 2024 and 2023 was as follows:

		December 31,				March 31,
		2024				2023
REVENUES		$	-			$	29,515
COST OF SALES			-				23,494
GROSS PROFIT			-				6,021

OPERATING EXPENSES:
General and administrative			-				102,572
Research and Development expenses			-				2,724
Selling expenses			-				5,277
Total			-				110,573

OTHER INCOME (EXPENSE)
Interest income			-				4
Interest expense			-				(2,842	)
Other expense			-				(938	)
Total			-				(3,776	)
Loss from discontinued operations before income tax			-				(108,328	)
Income tax provision			-				-
Loss from discontinued operation before noncontrolling interest		$	-				-
Gain on disposal of discontinued operations			645,437				-
Less: Net loss attributable to non-controlling interests			-				-
INCOME (LOSS) FROM DISCONTINUED OPERATION		$	645,437			$	(108,328	)

The major components of assets and liabilities related to discontinued operations are summarized below:

			December 31, 2024				December 31, 2023
Cash and cash equivalents		$	-			$	-
Total assets related to discontinued operations		$	-			$	-
Total liabilities related to discontinued operations		$	-			$	-

21. SEGMENT REPORTING

In its operation of the business, management, including our chief operating decision maker, who is our Chief Executive Officer, reviews certain financial information, including segmented internal profit and loss statements prepared on a basis consistent with GAAP. The Company operates in three segments starting in fiscal 2021: “supply chain financing service and trading business”, “asset management service” and “others”.

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The Company began to provide coal and aluminum ingots supply chain financing services during the second quarter of 2021 and the Company acquired Nice Talent and started to provide asset management services since August 2021. The Company began to provide sand and steel supply chain financing services during the first quarter of 2023.

Some of our operation might not individually meet the quantitative thresholds for determining reportable segments and we determine 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.

As of March 31, 2024:

		Supply Chain Financing/ Trading				Asset management service				Others				Total
Reportable segment revenue		$	441,764			$	4,372,870			$	308,333			$	5,122,967
Inter-segment loss			-				-				-				-
Revenue from external customers			441,764				4,372,870				308,333				5,122,967
Segment gross profit		$	44,073			$	1,676,704			$	230,495			$	1,951,272

As of March 31, 2023:

		Supply Chain Financing/ Trading				Asset management service				Others				Total
Reportable segment revenue		$	110,798			$	3,163,064			$	90,588			$	3,364,450
Inter-segment loss			-				-				-				-
Revenue from external customers			110,798				3,163,064				90,588				3,364,450
Segment gross profit		$	105,854			$	1,056,307			$	39,455			$	1,201,616

Loss before Income Tax:

		Three months Ended, March 31
		2024				2023
Supply chain financing/trading			208,580				219,179
Asset management service			1,617,278				782,177
Others			1,276,117				(7,467	)
Corporate and Unallocated			2,818,363				2,321,202
Total operating expenses and other expense			5,920,338				3,315,091
Loss before Income Tax			(3,969,066	)			(2,113,475	)

Segment assets:

		March 31, 2024				December 31, 2023
Supply chain financing/trading			12,365,266				12,437,136
Asset management service			4,367,036				3,640,811
Others			20,084,577				23,855,261
Corporate and Unallocated			23,093,573				21,007,542
Total assets			59,910,452				60,940,750

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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 $7,000,000 in damages and attorneys’ fees.

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 March 23, 2021, FT Global filed its response to the Company’s motion to dismiss. FT Global argues that the Court should deny the Company’s motion to dismiss. However, if the Court is inclined to grant the Company’s motion to dismiss, FT Global requested that the Court permit it to file an amended complaint. On April 8, 2021, the parties filed a Joint Preliminary Report and Discovery Plan. On April 12, 2021, the Court approved the Joint Preliminary Report and Discovery Plan and issued a Scheduling Order placing this case on a six-month discovery tract. On April 30, 2021, the Company served FT Global with its Initial Disclosures. On May 6, 2021, FT Global served the Company with its Initial Disclosures. On May 17, 2021, FT Global served the Company with its First Amended Initial Disclosures. 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 Company timely filed an answer and defenses to FT Global’s complaint on November 24, 2021. On January 3, 2022 the Company propounded discovery requests upon FT Global, including interrogatories and requests for production of documents. On March 23, 2022, the Company propounded requests for admission upon FT Global. On March 24, 2022, FT Global propounded discovery requests upon the Company, including requests for production of documents and requests for admission. On April 1, 2022, FT Global served its response to the Company’s requests for production of documents. On May 13, 2022, FT Global served its responses to the Company’s interrogatories and requests for admissions. On May 13, 2022, FT Global produced documents in response to the Company’s requests for production of documents. On June 3, 2022, the Company produced documents in response to FT Global’s requests for production of documents. On August 3, 2022, the Company took the deposition of FT Global. On August 4, 2022, FT Global took the deposition of the Company. On August 3, 2022, the Court granted the parties’ Consent Motion to Extend Discovery Period extending the discovery period from August 5, 2022 to September 14, 2022 and the deadline to file dispositive motions to October 12, 2022. On October 12, 2022, the Company filed a motion for summary judgment on all claims asserted by FT Global in this lawsuit. On November 2, 2022, FT Global filed its opposition to the Company’s motion for summary judgment. On November 16, 2022, the Company filed its reply in support of its motion for summary judgment on all claims asserted by FT Global in this lawsuit. On August 31, 2023, the Court entered an Order denying the Company’s motion for summary judgment. On September 20, 2023, the parties filed a joint motion to extend the deadline to file the consolidated pretrial order pending mediation of the case by the parties. On September 21, 2023, the Court granted the parties’ joint motion to extend the deadline to file the consolidated pretrial order to October 27, 2023. On October 16, 2023, the parties mediated the case. On October 24, 2023, the parties filed another joint motion to extend the deadline to file the consolidated pretrial order. On October 27, 2023, the Court granted the parties’ joint motion to extend the deadline to file the consolidated pretrial order to November 17, 2023 and set the case for trial on January 8, 2024. Subsequently, the Court approved an extension of the deadline to file a pretrial order to December 1, 2023. The Court has also rescheduled the trial to commence on April 8, 2024. 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 and the Court entered a judgment awarding FT Global $8,875,265.31. On April 16, 2024, the Court issued an amended judgment, awarding FT Global $10,598,379.93, which includes $7,895,265.31 in damages, $1,723,114.62 in prejudgment interest, and $980,000.00 in attorney’s fees. The Company filed a post-trial motion challenging the judgment on May 9, 2024 and will continue to vigorously defend the action against FT Global, including by appealing the judgment to the United States Court of Appeals for the Eleventh Circuit if necessary.

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23. RISKS AND UNCERTAINTIES

Impact of COVID 19

In December 2019, a novel strain of coronavirus was reported and has spread throughout China and other parts of the world. On March 11, 2020, the World Health Organization characterized the outbreak as a “pandemic”. In early 2020, Chinese government took emergency measures to combat the spread of the virus, including quarantines, travel restrictions, and the temporary closure of office buildings and facilities in China. In response to the evolving dynamics related to the COVID-19 outbreak, the Company was following the guidelines of local authorities as it prioritizes the health and safety of its employees, contractors, suppliers and business partners. Our offices in China were closed and the employees worked from home at the end of January 2020 until late March 2020. The quarantines, travel restrictions, and the temporary closure of office buildings have materially negatively impacted our business. The outbreak has had and might continue to have disruption to our supply chain, logistics providers, customers or our marketing activities with the new variants of COVID-19, which could materially adversely impact our business and results of operations. There were outbreaks in various cities and provinces in China due to Omicron variant, such as Xi’an city, Hong Kong, Shanghai, Beijing and other cities in 2022, which have resulted quarantines, travel restrictions, and temporary closure of office buildings and facilities in these cities. In December 2022, the Chinese government eased its strict zero COVID-19 policy which resulted in a surge of new COVID-19 cases during December 2022 and January 2023, which has disrupted our business operations in China. The Company’s promotion strategy of CCM Shopping Mall previously mainly relied on the training of members and distributors through meetings and conferences. Chinese government put a restriction on large gatherings in 2020 and 2021, which made the promotion strategy for our online e-commerce platforms difficult to implement and the Company experienced difficulties to subscribe new members for its online e-commerce platforms. Since 2021, CCM generated minimal revenue and business for the Company. The Company started a process to close it down in November 2023 and completed deregistration and dissolution of the VIE with local authority on March 7, 2024.

While the potential economic impact brought by new variants of COVID-19 may be difficult to assess or predict, a widespread pandemic could result in significant disruption of global financial markets, reducing our ability to access capital, which could negatively affect our liquidity. Further, as we do not have access to a revolving credit facility, there can be no assurance that we would be able to secure commercial debt financing in the future in the event that we require additional capital. In the event that we do need to raise capital in the future and there is any outbreak due to new variants, outbreak-related instability in the securities markets could adversely affect our ability to raise additional capital.

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 our business and the enforcement and performance of our arrangements with customers in certain circumstances. We are considered foreign persons or foreign funded enterprises under PRC laws and, as a result, we are 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. We cannot predict what effect the interpretation of existing or new PRC laws or regulations may have on our business.

Customer concentration risk

For three months ended March 31, 2024, one customer accounted for 78.25% of the Company’s total revenues. For three months ended March 31, 2023, one customer accounted for 85.53% of the Company’s total revenues.

Vendor concentration risk

For three months ended March 31, 2024, three vendors accounted for 20.94%, 19.02% and 13.59% of the Company’s total purchases. For three months ended March 31, 2023, four vendors accounted for 35.48%, 16.37%, 12.28% and 11.28% of the Company’s total purchases.

24. SUBSEQUENT EVENTS

The Company has evaluated subsequent events through the date of the issuance of the condensed consolidated financial statements and no subsequent event is identified.

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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 Company or Company’s management identify forward-looking statements. Such statements reflect the current view of 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 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, 2023 (the “2023 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 2023 Form 10-K.

Although the Company believes 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 is a holding company incorporated under the laws of the State of Florida. The Company historically 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 had 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, asset management business in Hong Kong and cross-border money transfer service in UK. The Company also expanded into brokerage and investment banking business in Hong Kong and cryptocurrency mining farm in the U.S. The Company had contractual arrangements 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 authority on March 7, 2024.

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There are legal and operational risks associated with being based in and having a substantial majority of operations in China and Hong Kong. These risks could result in a material change in our operations and/or the value of our common stock or could significantly limit or completely hinder our ability to offer or continue to offer securities to investors and cause the value of our shares to significantly decline or be worthless. In the past few years, the PRC government initiated a series of regulatory actions and statements to regulate business operations in China with little advance notice, including cracking down on illegal activities in the securities market, enhancing supervision over China-based companies listed overseas using variable interest entity structure, adopting new measures to extend the scope of cybersecurity reviews, and expanding the efforts in anti-monopoly enforcement. On July 6, 2021, the General Office of the Communist Party of China Central Committee and the General Office of the State Council jointly issued an announcement to crack down on illegal activities in the securities market and promote the high-quality development of the capital market, which, among other things, requires the relevant governmental authorities to strengthen cross-border oversight of law-enforcement and judicial cooperation, to enhance supervision over China-based companies listed overseas, and to establish and improve the system of extraterritorial application of the PRC securities laws. On February 15, 2022, Cybersecurity Review Measures published by Cyberspace Administration of China or the CAC, National Development and Reform Commission, Ministry of Industry and Information Technology, Ministry of Public Security, Ministry of State Security, Ministry of Finance, Ministry of Commerce, People’s Bank of China, State Administration of Radio and Television, China Securities Regulatory Commission (“CSRC”), State Secrecy Administration and State Cryptography Administration became effective, which provides that, Critical Information Infrastructure Operators (“CIIOs”) that intend to purchase internet products and services and Online Platform Operators engaging in data processing activities that affect or may affect national security shall be subject to the cybersecurity review by the Cybersecurity Review Office. On November 14, 2021, CAC published the Administration Measures for Cyber Data Security (Draft for Public Comments), or the “Cyber Data Security Measure (Draft)”, which requires cyberspace operators with personal information of more than 1 million users who want to list abroad to file a cybersecurity review with the Office of Cybersecurity Review. On July 7, 2022, CAC promulgated the Measures for the Security Assessment of Data Cross-border Transfer, effective on September 1, 2022, which requires the data processors to apply for data cross-border security assessment coordinated by the CAC under the following circumstances: (i) any data processor transfers important data to overseas; (ii) any critical information infrastructure operator or data processor who processes personal information of over 1 million people provides personal information to overseas; (iii) any data processor who provides personal information to overseas and has already provided personal information of more than 100,000 people or sensitive personal information of more than 10,000 people to overseas since January 1st of the previous year; and (iv) other circumstances under which the data cross-border transfer security assessment is required as prescribed by the CAC. On February 17, 2023, the CSRC released New Overseas Listing Rules with five interpretive guidelines, which took effect on March 31, 2023. The New Overseas Listing Rules require Chinese domestic enterprises to complete filings with CSRC and report related information under certain circumstances, such as: a) an issuer making an application for initial public offering and listing in an overseas market; b) an issuer making an overseas securities offering after having been listed on an overseas market; c) a domestic company seeking an overseas direct or indirect listing of its assets through single or multiple acquisition(s), share swap, transfer of shares or other means. According to the Notice on Arrangements for Overseas Securities Offering and Listing by Domestic Enterprises, published by the CSRC on February 17, 2023, a company that (i) has already completed overseas listing or (ii) has already obtained the approval for the offering or listing from overseas securities regulators or exchanges but has not completed such offering or listing before effective date of the new rules and also completes the offering or listing before September 30, 2023 are considered as an existing listed company and is not required to make any filing until it conducts a new offering in the future. Furthermore, upon the occurrence of any of the material events specified below after an issuer has completed its offering and listed its securities on an overseas stock exchange, the issuer shall submit a report thereof to the CSRC within 3 business days after the occurrence and public disclosure of the event: (i) change of control; (ii) investigations or sanctions imposed by overseas securities regulatory agencies or other competent authorities; (iii) change of listing status or transfer of listing segment; or (iv) voluntary or mandatory delisting. The New Overseas Listing Rules stipulate the legal consequences to the companies for breaches, including failure to fulfill filing obligations or filing documents having false statement or misleading information or material omissions, which may result in a fine ranging from RMB1 million to RMB10 million, and in cases of severe violations, the relevant responsible persons may also be barred from entering the securities market. On February 24, 2023, the CSRC, the Ministry of Finance, the National Administration of State Secretes Protection and the National Archives Administration released the Provisions on Strengthening the Confidentiality and Archives Administration Related to the Overseas Securities Offering and Listing by Domestic Companies, or the Confidentiality and Archives Administration Provisions, which took effect on March 31, 2023. PRC domestic enterprises seeking to offer securities and list in overseas markets, either directly or indirectly, shall establish and improve the system of confidentiality and archives work, and shall complete approval and filing procedures with competent authorities, if such PRC domestic enterprises or their overseas listing entities provide or publicly disclose documents or materials involving state secrets and work secrets of state organs to relevant securities companies, securities service institutions, overseas regulatory agencies and other entities and individuals. It further stipulates that (i) providing or publicly disclosing documents and materials which may adversely affect national security or public interests, and accounting records or photocopies thereof to relevant securities companies, securities service institutions, overseas regulatory agencies and other entities and individuals shall be subject to corresponding procedures in accordance with relevant laws and regulations; and (ii) any working papers formed in the territory of the PRC by securities companies and securities service agencies that provide domestic enterprises with securities services relating to overseas securities issuance and listing shall be stored in the territory of the PRC, the outbound transfer of which shall be subject to corresponding procedures in accordance with relevant laws and regulations. As of the date of this report, these new laws and guidelines that became effective have not impacted the Company’s ability to conduct its business, accept foreign investment or list on a U.S. or other foreign stock exchange except for the filing requirement under New Overseas Listing Rules. The Company is still processing the filings with CSRC for its offerings since the effective of New Overseas Listing Rules and has not complied the filing requirements yet which would subject the Company to fines and other penalties for violation of New Overseas Listing Rules. In addition, new rules and regulations could be adopted and there are uncertainties in the interpretation and enforcement of existing laws and guidelines, which could materially and adversely impact our business and financial outlook and may impact our ability to accept foreign investments or continue to list on a U.S. or other foreign stock exchange. Any change in foreign investment regulations, and other policies in China or related enforcement actions by China government could result in a material change in our operations and the value of our securities and could significantly limit or completely hinder our ability to offer our securities to investors or cause the value of our securities to significantly decline or be worthless.

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In March 2022, FTFT UK Limited received approval to operate as an Electronic Money Directive (“EMD”) Agent and has been registered as such with the Financial Conduct Authority (FCA), a UK regulator. This status grants FTFT UK Limited the ability to distribute or redeem e-money and provide certain financial services on behalf of an e-money institution (registration number 903050).

On April 14, 2022, the Company established Future Trading (Chengdu) Co., Ltd. Its business is bulk commodities supply chain financing services and trading.

On April 18, 2022, the Company and Future Fintech (Hong Kong) Limited, a wholly owned subsidiary of the Company jointly acquired 100% equity interest of KAZAN S.A., a company incorporated in Republic of Paraguay for $288. Kazan S.A. has no operation before the acquisition. The Company tried to develop bitcoin and other cryptocurrency mining and related service business in Paraguay. The Company has changed its name from KAZAN S.A to FTFT Paraguay S.A. on July 28, 2022 and it was dissolved in December 2023 as the Company was not able to develop the business in Paraguay as planned.

On September 29, 2022, FTFT UK Limited completed its acquisition of 100% of the issued and outstanding shares of Khyber Money Exchange Ltd., a company incorporated in England and Wales, from Rahim Shah, a resident of United Kingdom for a total of Euros €685,000 (“Purchase Price”), pursuant to a Share Purchase Agreement (the “Agreement”) dated September 1, 2021. Khyber Money Exchange Ltd. is a money transfer company with a platform for transferring money through one of its agent locations or via its online portal, mobile platform or over the phone. Khyber Money Exchange Ltd. is regulated by the UK Financial Conduct Authority (FCA) and the parties received approval by the FCA before the formal closing of the transaction. On October 11, 2022, the Company changed the name of Khyber Money Exchange Ltd. to FTFT Finance UK Limited.

On February 27, 2023, Future FinTech (Hong Kong) Limited (“Buyer”), a company incorporated in Hong Kong and a wholly owned subsidiary of Future FinTech Group Inc. (the “Company”) entered into a Share Transfer Agreement (the “Agreement”) with Alpha Financial Limited, a company incorporated in Hong Kong (“Seller”) and sole owner and shareholder of Alpha International Securities (Hong Kong) Limited, a company incorporated in Hong Kong (“Alpha HK”) and Alpha Information Service (Shenzhen) Co., Ltd., a company incorporated in China (“Alpha SZ”). Alpha HK 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. Alpha SZ provides technical support services to Alpha HK. The share transfer transaction was approved by the Securities and Futures Commission of Hong Kong (“SFC”) in August 2023 and the acquisition was closed on November 7, 2023. The names of the two entities were also changed to ‘FTFT International Securities and Futures Limited’ and ‘FTFT Information Services (Shenzhen) Co. Ltd.’, respectively.

On January 26, 2023, 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 1-for-5 reverse stock split of the Company’s authorized shares of common stock from 300,000,000 shares to 60,000,000 shares, accompanied by a corresponding decrease in the Company’s issued and outstanding shares of common stock (the “Reverse Stock Split”). The common stock continues to be $0.001 par value. The Company rounded up to the next full share of the Company’s shares of common stock any fractional shares that result from the Reverse Stock Split and no fractional shares were issued in connection with the Reverse Stock Split and no cash or other consideration were paid in connection with any fractional shares that would otherwise have resulted from the Reverse Stock Split. No changes have been made to the number of preferred shares of the Company which remain as 10,000,000 preferred shares as authorized but not issued. The amendment to the Articles of Incorporation of the Company took effect on February 1, 2023. The Reverse Stock Split and Amendment were authorized and approved by the Board of Directors of the Company without shareholders’ approval, pursuant to 607.10025 of the Florida Business Corporation Act of the State of Florida.

The Company operated a blockchain based online shopping platform, Chain Cloud Mall (“CCM”) Chain Cloud Mall through its VIE and its business was materially and negatively affected by outbreak of COVID-19 since early 2020 because the Company was unable to implement its promotion strategy to enroll new members through training of such members and distributors via meetings and conferences which was not possible during the outbreak of COVID-19. CCM has generated minimal revenue and business since 2021, despite the Company transformed the member-based business model of CCM to a sale agent based “Enterprise Communication as A Service” or eCAAS platform during the second quarter of 2021. The Company started a process to close it down in November 2023 and completed deregistration and dissolution of the VIE with local authority on March 7, 2024.

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The Company currently has nine directly controlled subsidiaries: DigiPay FinTech Limited (“DigiPay”), a company incorporated under the laws of the British Virgin Islands, Future FinTech (Hong Kong) Limited, a company incorporated under the laws of Hong Kong, GlobalKey Shared Mall Limited, a company incorporated under the laws of Cayman Islands (“GlobalKey Shared Mall”), Tianjin Future Private Equity Fund Management Partnership, a Limited Partnership under the laws of China, FTFT UK Limited, a company incorporated under the laws of United Kingdom, Future Fintech Digital Capital Management, LLC, a company incorporated under the laws of Connecticut, Future Fintech Digital Number One GP, LLC, a company incorporated under the laws of Connecticut, Future FinTech Labs Inc., a company incorporated under the laws of New York, and FTFT SuperComputing Inc. a company incorporated under the laws of Ohio.

Supply Chain Financing Service and Trading in China

Since the second quarter of 2021, we started coal supply chain financing service and trading business. Since the third quarter of 2021, we started aluminum ingots supply chain financing service and trading business. Since the first quarter of 2023, we started 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, sand and steel when no control obtained throughout the transactions. We select the customers and suppliers that have good credit and reputation.

Asset Management Service, Brokerage and Investment Banking Services in Hong Kong.

NTAM engages assets management and advisory services. NTAM’s main revenue is generated from providing professional advice to customers and management fees for managing the investment of the clients. NTAM is licensed under the Securities and Futures Commission of Hong Kong (SFC) for carrying out regulated activities in “Advising on Securities” and “Asset Management”. NTAM offers diversified asset management portfolio for professional investors. Assets of NTAM’s clients are held in banks, where clients gave the banks their authorization allowing NTAM to place trading instructions on behalf of the clients in order to manage the clients’ assets.

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NTAM mainly engages in following asset management services for its clients:

(1) Equity Investment

NTAM manages clients’ investment portfolio in stocks of the companies listed on the international markets with strong liquidity. At the same time, it selects companies that have unique or differentiated businesses, realizing above average profit growth.

(2) Debt investment

When NTAM manages clients’ investment portfolio in bonds that are denominated in major international currencies such as US dollar, euro and sterling, the issuer of debts shall have good credit rating and asset liability ratio. Through active management, NTAM focuses on bonds with higher yield to maturity among bonds with the same maturity and credit rating.

(3) Precious metals and currencies investment

NTAM also manages clients’ investment portfolio in major international currencies and precious metals, including US dollar, euro, British pound, Japanese yen, Australian dollar and offshore Chinese yuan. Precious metals include gold, platinum and silver. With research on the fundamentals of market supply and demand to predict the trend of commodity prices, NTAM endeavors to improve the rate of return for clients through dual currency investment, options and structured products.

(4) Derivative Investment

NTAM also manages clients’ investment portfolio in financial derivatives in different asset classes, such as options and structured products.

(5) External Asset Management Services (EAM)

This business takes customer demand as the service purpose, cooperates with several private banks which provide asset custody services, and innovatively introduces the function of investment bank to provide exclusive private solutions for our clients.

NTAM’s main revenue is generated from providing professional advice to clients and management fees for managing the investment of the clients. As of March 31, 2024, NTAM has approximately US$359 million assets under its management.

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.

Money Transfer Business

FTFT Finance UK Limited (“FTFT Finance”) formerly known as Khyber Money Exchange Ltd. was acquired by FTFT UK Limited in September 2022. It is regulated by UK Financial Conduct Authority (“FCA”) for its cross-border money transfer systems and service. FTFT Finance was incorporated in 2009 and is a pioneer in the UK for money remittance services. FTFT Finance provides money transfer services through its platform to transfer money around the world via one of its agent locations or its online portal, mobile platform, or over the phone. FTFT Finance is headquartered in the UK and it has a trade name of FTFT Pay. FTFT Finance’s plan is to develop products and services across different regions of the world.

FTFT Finance is a financial platform that enables its customers to send their hard-earned money to their country of origin, or any other country of their liking, with ease and at a reasonable cost, transparent exchange rate and without any hidden charges. We believe our customers and their diverse backgrounds that have helped FTFT Finance to become a credible and trustworthy money remittance business.

Remittance service is a highly saturated market in the United Kingdom and there are many companies that offer remittance services. FTFT Finance has an edge over companies like wise in different ways, for example, FTFT Finance offers competitive rates for its services and does not charge customer fees for remittance to Pakistan as it receives its rebate from local banks. This approach provides gives us an advantage over our competitors.

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Impact of COVID-19 on our business

In December 2019, a novel strain of coronavirus was reported and has spread throughout China and other parts of the world. On March 11, 2020, the World Health Organization characterized the outbreak as a “pandemic”. In early 2020, Chinese government took emergency measures to combat the spread of the virus, including quarantines, travel restrictions, and the temporary closure of office buildings and facilities in China. In response to the evolving dynamics related to the COVID-19 outbreak, the Company was following the guidelines of local authorities as it prioritizes the health and safety of its employees, contractors, suppliers and business partners. Our offices in China were closed and the employees worked from home at the end of January 2020 until late March 2020. The quarantines, travel restrictions, and the temporary closure of office buildings have materially negatively impacted our business. The outbreak has had and might continue to have disruption to our supply chain, logistics providers, customers or our marketing activities with the new variants of COVID-19, which could materially adversely impact our business and results of operations. There were outbreaks in various cities and provinces in China due to Omicron variant, such as Xi’an city, Hong Kong, Shanghai, Beijing and other cities in 2022, which have resulted quarantines, travel restrictions, and temporary closure of office buildings and facilities in these cities. In December 2022, the Chinese government eased its strict zero COVID-19 policy which resulted in a surge of new COVID-19 cases during December 2022 and January 2023, which has disrupted our business operations in China. The Company’s promotion strategy of CCM Shopping Mall previously mainly relied on the training of members and distributors through meetings and conferences. Chinese government put a restriction on large gatherings in 2020 and 2021, which made the promotion strategy for our online e-commerce platforms difficult to implement and the Company experienced difficulties to subscribe new members for its online e-commerce platforms. Since 2021, CCM generated minimal revenue and business for the Company. The Company started a process to close it down in November 2023 and completed deregistration and dissolution of the VIE with local authority on March 7, 2024.

While the potential economic impact brought by new variants of COVID-19 may be difficult to assess or predict, a widespread pandemic could result in significant disruption of global financial markets, reducing our ability to access capital, which could negatively affect our liquidity. Further, as we do not have access to a revolving credit facility, there can be no assurance that we would be able to secure commercial debt financing in the future in the event that we require additional capital. In the event that we do need to raise capital in the future and there is any outbreak due to new variants, outbreak-related instability in the securities markets could adversely affect our ability to raise additional capital.

Results of Operations

Comparison of Three Months ended March 31, 2024 and 2023:

Revenue

The following table presents our consolidated revenues for the three months ended March 31, 2024 and 2023, respectively:

		Three months ended March 31,								Change
		2024				2023				Amount				%
Asset management service			4,372,870				3,163,064				1,209,806				38.25	%
Supply Chain Financing/Trading			441,764				110,798				330,966				298.71	%
Others			308,333				90,588				217,745				240.37	%
Total		$	5,122,967			$	3,364,450			$	1,758,517				52.27	%

The increase in revenue for the three months ended March 31, 2024 was primarily due to more revenue from asset management service, as the Company hired more seasoned account managers to boost the assets under management (“AUM”) and thus improved the revenue.

Supply chain financing/trading increased $0.33 million from $0.11million for the three months ended March 31, 2023 to $0.44 million for the same period of 2024. It was due to the Company sold more bulk goods with ownership during first quarter of 2024 than as an agent during the same period of 2023.

Other revenues increased from $0.09 million for the three months ended March 31, 2023 to $0.31 million for the same period of 2024, mainly due to the increased debt recovery consulting service fee as well as U.S. dollar bond service income of approximately $0.24 million, as we did not have such income in first quarter 2023.

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Gross Profit and Margin

The following table presents the consolidated gross profit of each of our main products and services and the consolidated gross profit margin, which is gross profit as a percentage of the related revenues, for the three months ended March 31, 2024 and 2023, respectively:

		Three months ended March 31,
		2024								2023
		Gross profit				Gross margin				Gross profit				Gross margin
Asset management service			1,676,704				38.3	%			1,056,307				33.4	%
Supply Chain Financing/Trading			44,073				10.0	%			105,854				95.5	%
Others			230,495				74.8	%			39,455				43.6	%
Total		$	1,951,272				38.1	%		$	1,201,616				35.7	%

Overall gross profit increased to $1.95 million for three months ended March 31, 2024 from $1.20 million for the same period of 2023. The increase is mainly due to the increase of gross profits from asset management service business and others which is in line with the increase of revenues for these two business segments during the first quarter of 2024. Overall gross margin as a percentage of revenue was 38.1% for the three months ended March 31, 2024, an increase of 2.4% from 35.7% for the same period of last fiscal year, mainly due to increase in profit margin for our asset management business as it has more large clients which was offset by the decrease in profit margin for our supply chain financing/trading business as its revenue mostly came from sales of goods with ownership during three months ended March 31, 2024, which has much lower profit margin than the revenue from agent service fees that we mostly generated from the same period of 2023.

Operating Expenses

The following table presents our consolidated operating expenses and operating expenses as a percentage of revenue for the three months ended March 31, 2024 and 2023, respectively: (in thousands)

		First quarter of 2024								First quarter of 2023
		Amount				% of revenue				Amount				% of revenue
General and administrative		$	3,421				66.8	%		$	3,376				100.4	%
Research and Development expenses			1				-	%			206				6.1	%
Selling expenses			267				5.2	%			127				3.8	%
Bad debt provision			794				15.5	%			17				0.5	%
Total operating expenses		$	4,483				87.5	%		$	3,726				110.8	%

General and administrative expenses increased by $0.05 million, or 1.4%, to $3.42 million for the three months ended March 31, 2024 from $3.37 million for the same period of last fiscal year. The increase in general and administrative expenses was mainly due to increased business trip expenses during the three months ended March 31, 2024.

Selling expenses increased by $0.14 million during the three months ended March 31, 2024, compared to the same period of last fiscal year. The increase in selling expenses was mainly due to increased employee bonuses.

Bad debt provision increased by $0.78 million during the three months ended March 31, 2024, compared to the same period of last fiscal year. The increase was due to different bad debt provision methods in 2024.

The Company recorded $0.01 million of research and development expenses. Research and development expenses include salaries, contracted services, as well as the related expenses of our research and product development team, and expenditures relating to our efforts to develop, design new products and services, and enhance our existing products and services to our clients. Research and development expenses decreased by $0.21 million during the three months ended March 31, 2024, compared to the same period of last fiscal year. The decrease in research and development expenses was mainly due to decreased salaries.

Other Income (Expense), Net

Other expenses, net increased by $1.67 million to $1.72 million for the three months ended March 31, 2024 from $0.04 million in the same period of the last fiscal year, primarily due to legal fees of litigation with FT Global.

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Income Tax

Tax provision decreased by $0.03 million for the three months ended March 31, 2024, primarily due to decreased revenue.

Non-controlling Interests

Nature Worldwide Resources Ltd. holds 40% interest in DCON DigiPay Limited (“DCON Digipay”). Each of Bin Wu and Lixiong Huang holds 25% and 20% interest in FTFT Capital Investments L.L.C., respectively. Aspenwood Capital Partner Limited holds 9.52%, Lau kwai Chun holds 9.05%, Cheung Hiu Tung holds 1.9% and Choi Tsz Leung holds 2.38% of equity interest of NATM. Yaohua Dai holds 20% equity interest of Future Fintech Digital Capital.

Net loss from continue operation

Net loss from continue operation increased by $1.83 million from $2.14 million for the three months ended March 31, 2023 to $3.97 million for the same period of 2024 mainly due to the increase in operating expenses, as discussed above.

Gain on disposal of discontinued operations

Gain on disposal of discontinued operation was $0.65 million for the three months ended March 31, 2024, which was related to the dissolution and deregistration of Chain Cloud Mall Network and Technology (Tianjin) Co., Limited.

Loss per Share

Basic and diluted loss per share from continuing operations were $0.20 and $0.20 for the three months ended March 31, 2024, respectively, as compared to a loss of $0.14 and $0.14 for the same periods of 2023, respectively. Basic and diluted income per share attributable to discontinued operations was $0.03 and $0.03 for the three months ended March 31, 2024, respectively. Basic and diluted earnings per share attributable to discontinued operations was $0.01 and $0.01 for the three months ended March 31, 2023, respectively.

Liquidity and Capital Resources

As of March 31, 2024, we had cash and restricted cash of $14.89 million, as compared to $19.03 million as of December 31, 2023. The decrease in cash, cash equivalents and restricted cash was mainly due to increased other receivables from the first quarter of 2024.

Our working capital has historically been generated from our operating cash flows, advances from our customers and loans from bank facilities. Our working capital was $36.78 million as of March 31, 2024, a decrease of $0.69 million from working capital of $36.76 million as of March 31, 2023, mainly due to the decrease in current assets and an increase in current liabilities.

Net cash used in operating activities decreased by $2.12 million to $8.15 million for the three months ended March 31, 2024 from $10.33 million for the same period of the last fiscal year. The decrease in net cash used by operating activities was primarily due to decrease in other receivable.

Net cash used in investing activities increased $0.61 million to $0.80 million for the three months ended March 31, 2024 from $0.20 million for the same period of the last fiscal year. It was due to increase in payment for short term investment.

Net cash provided in financing activities for the three months ended March 31, 2024 was $2.55 million representing an increase of $2.61 million, as compared to cash used in financing activities of $0.06 million during the three months ended March 31, 2023. The increase in cash provided by financing activities was mainly due to proceeds from the issuance of common stock from a private placement, net of issuance costs.

Off-balance sheet arrangements

As of March 31, 2024, 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 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 March 31, 2024, 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 also engaged an internal control consulting firm in July 2023 to review, test and improve our internal accounting controls and internal control over financial reporting which has issued a report in early January 2024. We have adopted and are implementing policies, procedures and practices recommended in the report of the consultant and have arranged training of internal control 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 implementing 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.

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

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 $7,000,000 in damages and attorneys’ fees.

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 March 23, 2021, FT Global filed its response to the Company’s motion to dismiss. FT Global argues that the Court should deny the Company’s motion to dismiss. However, if the Court is inclined to grant the Company’s motion to dismiss, FT Global requested that the Court permit it to file an amended complaint. On April 8, 2021, the parties filed a Joint Preliminary Report and Discovery Plan. On April 12, 2021, the Court approved the Joint Preliminary Report and Discovery Plan and issued a Scheduling Order placing this case on a six-month discovery tract. On April 30, 2021, the Company served FT Global with its Initial Disclosures. On May 6, 2021, FT Global served the Company with its Initial Disclosures. On May 17, 2021, FT Global served the Company with its First Amended Initial Disclosures. 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 Company timely filed an answer and defenses to FT Global’s complaint on November 24, 2021. On January 3, 2022 the Company propounded discovery requests upon FT Global, including interrogatories and requests for production of documents. On March 23, 2022, the Company propounded requests for admission upon FT Global. On March 24, 2022, FT Global propounded discovery requests upon the Company, including requests for production of documents and requests for admission. On April 1, 2022, FT Global served its response to the Company’s requests for production of documents. On May 13, 2022, FT Global served its responses to the Company’s interrogatories and requests for admissions. On May 13, 2022, FT Global produced documents in response to the Company’s requests for production of documents. On June 3, 2022, the Company produced documents in response to FT Global’s requests for production of documents. On August 3, 2022, the Company took the deposition of FT Global. On August 4, 2022, FT Global took the deposition of the Company. On August 3, 2022, the Court granted the parties’ Consent Motion to Extend Discovery Period extending the discovery period from August 5, 2022 to September 14, 2022 and the deadline to file dispositive motions to October 12, 2022. On October 12, 2022, the Company filed a motion for summary judgment on all claims asserted by FT Global in this lawsuit. On November 2, 2022, FT Global filed its opposition to the Company’s motion for summary judgment. On November 16, 2022, the Company filed its reply in support of its motion for summary judgment on all claims asserted by FT Global in this lawsuit. On August 31, 2023, the Court entered an Order denying the Company’s motion for summary judgment. On September 20, 2023, the parties filed a joint motion to extend the deadline to file the consolidated pretrial order pending mediation of the case by the parties. On September 21, 2023, the Court granted the parties’ joint motion to extend the deadline to file the consolidated pretrial order to October 27, 2023. On October 16, 2023, the parties mediated the case. On October 24, 2023, the parties filed another joint motion to extend the deadline to file the consolidated pretrial order. On October 27, 2023, the Court granted the parties’ joint motion to extend the deadline to file the consolidated pretrial order to November 17, 2023 and set the case for trial on January 8, 2024. Subsequently, the Court approved an extension of the deadline to file a pretrial order to December 1, 2023. The Court has also rescheduled the trial to commence on April 8, 2024. 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 and the Court entered a judgment awarding FT Global $8,875,265.31. On April 16, 2024, the Court issued an amended judgment, awarding FT Global $10,598,379.93, which includes $7,895,265.31 in damages, $1,723,114.62 in prejudgment interest, and $980,000.00 in attorney’s fees. The Company filed a post-trial motion challenging the judgment on May 9, 2024 and will continue to vigorously defend the action against FT Global, including by appealing the judgment to the United States Court of Appeals for the Eleventh Circuit if necessary.

36

Item 1A. Risk Factors

Not applicable.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

The Company did not make any sales of unregistered securities during the three months ended March 31, 2024 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.

Item 5. Other Information

None.

Item 6. Exhibits

Exhibit No.		Description
31.1		Certification of Principal Executive Officer pursuant to Rule 13a-14(a) and Rule15d-14(a) of the Securities Exchange Act of 1934, as amended*
31.2		Certification of Principal Financial Officer pursuant to Rule 13a-14(a) and Rule 15d-14(a) of the Securities Exchange Act of 1934, as amended*
32.1		Certification of Principal Executive Officer, pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002+
32.2		Certification of Principal Financial Officer, pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002+
101.INS		Inline XBRL Instance Document*
101.SCH		Inline XBRL Taxonomy Extension Schema Document*
101.CAL		Inline XBRL Taxonomy Extension Calculation Linkbase Document*
101.DEF		Inline XBRL Taxonomy Extension Definition Linkbase Document*
101.LAB		Inline XBRL Taxonomy Extension Label Linkbase Document*
101.PRE		Inline XBRL Taxonomy Extension Presentation Linkbase Document*
104		Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

*	filed herewith

+	Furnished herewith

37

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/ Shanchun Huang
		Shanchun Huang
		Chief Executive Officer
		(Principal Executive Officer)

		May 20, 2024

	By:	/s/ Ming Yi
		Ming Yi
		Chief Financial Officer
		(Principal Financial and Accounting Officer)

		May 20, 2024

38

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us-gaap:CustomerConcentrationRiskMember 2024-01-01 2024-03-31 0001066923 ftft:VendorOneMember us-gaap:SalesRevenueNetMember us-gaap:CustomerConcentrationRiskMember 2023-01-01 2023-03-31 0001066923 ftft:VendorTwoMember us-gaap:SalesRevenueNetMember us-gaap:CustomerConcentrationRiskMember 2023-01-01 2023-03-31 0001066923 ftft:VendorThreeMember us-gaap:SalesRevenueNetMember us-gaap:CustomerConcentrationRiskMember 2023-01-01 2023-03-31 0001066923 ftft:VendorFourMember us-gaap:SalesRevenueNetMember us-gaap:CustomerConcentrationRiskMember 2023-01-01 2023-03-31 xbrli:shares iso4217:USD iso4217:USD xbrli:shares iso4217:HKD xbrli:pure iso4217:CNY iso4217:GBP

Exhibit 31.1

RULE 13a-14(a) CERTIFICATION FOR FORM 10-Q (CEO) CERTIFICATION

I, Shanchun Huang, certify that:

1.

I have reviewed this quarterly report on Form 10-Q of Future FinTech Group Inc.;

2.

Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.

Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.

The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a.

Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to the Company by others within those entities, particularly during the period in which this report is being prepared;

b.

Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c.

Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d.

Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.

The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a.

All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b.

Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal controls over financial reporting.

Date: May 20, 2024	By:	/s/ Shanchun Huang
		Shanchun Huang
		Chief Executive Officer

Exhibit 31.2

RULE 13a-14(a) CERTIFICATION FOR FORM 10-Q (CFO) CERTIFICATION

I, Ming Yi, certify that:

1.

I have reviewed this quarterly report on Form 10-Q of Future FinTech Group Inc.;

2.

Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.

Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.

The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a.

Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to the Company by others within those entities, particularly during the period in which this report is being prepared;

b.

Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c.

Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d.

Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.

The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a.

All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b.

Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal controls over financial reporting.

Date: May 20, 2024	By:	/s/ Ming Yi
		Ming Yi
		Chief Financial Officer

Exhibit 32.1

SECTION 1350 CERTIFICATION (CEO)

FUTURE FINTECH GROUP INC.

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Future FinTech Group Inc. (the “Company”) on Form 10-Q for the fiscal quarter ended March 31, 2024, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Shanchun Huang, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1)

The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)

The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: May 20, 2024	/s/Shanchun Huang
	Shanchun Huang
	Chief Executive Officer

Exhibit 32.2

SECTION 1350 CERTIFICATION (CFO)

FUTURE FINTECH GROUP INC.

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Future FinTech Group Inc. (the “Company”) on Form 10-Q for the fiscal quarter ended March 31, 2024, as filed with the Securities and Exchange Commission on the date hereof, the “Report”, I, Ming Yi, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1)

The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)

The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: May 20, 2024	/s/ Ming Yi
	Ming Yi
	Chief Financial Officer

Cover - shares	3 Months Ended
Cover - shares	Mar. 31, 2024	May 17, 2024
Document Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Transition Report	false
Entity Interactive Data Current	Yes
Amendment Flag	false
Document Period End Date	Mar. 31, 2024
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q1
Entity Information [Line Items]
Entity Registrant Name	Future FinTech Group Inc.
Entity Central Index Key	0001066923
Entity File Number	001-34502
Entity Tax Identification Number	98-0222013
Entity Incorporation, State or Country Code	FL
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Shell Company	false
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Contact Personnel [Line Items]
Entity Address, Address Line One	Americas Tower
Entity Address, Address Line Two	1177 Avenue of The Americas
Entity Address, Address Line Three	Suite 5100
Entity Address, City or Town	New York
Entity Address, State or Province	NY
Entity Address, Postal Zip Code	1177
Entity Phone Fax Numbers [Line Items]
City Area Code	888
Local Phone Number	622-1218
Entity Listings [Line Items]
Title of 12(b) Security	Common Stock, par value $0.001 per share
Trading Symbol	FTFT
Security Exchange Name	NASDAQ
Entity Common Stock, Shares Outstanding		19,985,410

Condensed Consolidated Balance Sheets (Unaudited) ¥ in Thousands	Mar. 31, 2024 USD ($)	Dec. 31, 2023 USD ($)
CURRENT ASSETS
Cash and cash equivalents	$ 14,886,541	$ 19,032,278
Short - term investment		959,028
Accounts receivable, net	4,618,861	5,705,877
Notes receivable	650,000
Advances to suppliers and other current assets	18,391,419	3,837,752
Loan receivables	14,882,847	14,895,086
Other receivables, net	101,098	10,048,297
TOTAL CURRENT ASSETS	53,615,942	54,490,469
Property, plant and equipment, net	4,608,429	4,579,188
Right of use assets - operation lease	1,111,533	1,282,111
Intangible assets	574,548	588,982
TOTAL NON-CURRENT ASSETS	6,294,510	6,450,281
TOTAL ASSETS	59,910,452	60,940,750
CURRENT LIABILITIES
Accounts payable	2,245,287	3,320,061
Accrued expenses and other payables	13,189,384	11,997,481
Advances from customers	53,494	306,315
Convertible notes payables	1,122,663	1,100,723
Lease liability - operation lease	382,172	498,736
TOTAL CURRENT LIABILITIES	17,539,753	17,728,362
NON-CURRENT LIABILITIES
Lease liability - operation lease	746,265	797,344
TOTAL NON-CURRENT LIABILITIES	746,265	797,344
TOTAL LIABILITIES	18,286,018	18,525,706
Commitments and contingencies (Note 22)
Future FinTech Group, Inc, Stockholders’ equity
Common stock, $0.001 par value; 60,000,000 shares authorized; 19,985,410 shares and 17,834,874 shares issued and outstanding as of March 31, 2024 and December 31, 2023 respectively	19,985	17,835
Additional paid-in capital	236,469,490	233,890,997
Statutory reserve	98,357	98,357
Accumulated deficits	(189,256,870)	(185,929,662)
Accumulated other comprehensive loss	(4,141,900)	(4,094,276)
Total Future FinTech Group, Inc. stockholders’ equity	43,189,062	43,983,251
Non-controlling interests	(1,564,628)	(1,568,207)
TOTAL STOCKHOLDERS’ EQUITY	41,624,434	42,415,044
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	59,910,452	60,940,750
Related Party
CURRENT ASSETS
Amount due from related party	86,832	12,151
CURRENT LIABILITIES
Amounts due to related parties	$ 546,753	$ 505,046

Condensed Consolidated Balance Sheets (Unaudited) (Parentheticals) - $ / shares	Mar. 31, 2024	Dec. 31, 2023
Statement of Financial Position [Abstract]
Common stock, par value (in Dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized	60,000,000	60,000,000
Common stock, shares issued	19,985,410	17,834,874
Common stock, shares outstanding	19,985,410	17,834,874

Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Revenue	$ 5,122,967	$ 3,364,450
Gross profit	1,951,272	1,201,616
Operating Expenses
General and administrative expenses	3,421,472	3,375,828
Research and development expenses	645	205,999
Selling expenses	266,685	127,162
Provision of doubtful debts	794,355	16,826
Total operating expenses	4,483,157	3,725,815
Loss from operations	(2,531,885)	(2,524,199)
Other (expenses) income
Interest income	305,267	455,453
Interest expenses	(24,216)
Other expenses, net	(1,718,232)	(44,729)
Total other expense, net	(1,437,181)	410,724
Loss before Income Tax	(3,969,066)	(2,113,475)
Income tax provision		(25,674)
Loss from Continuing Operations	(3,969,066)	(2,139,149)
Discontinued Operations (Note 20)
Loss from discontinued operations		(108,328)
Gain on disposal of discontinued operations	645,437
Net Loss	(3,323,629)	(2,247,477)
Less: Net Loss attributable to non-controlling interests	3,579	(71,013)
Net loss attributable to Future Fintech Group, Inc.	(3,327,208)	(2,176,464)
Other comprehensive income (loss)
Loss from continued operations	(3,969,066)	(2,139,149)
Unrealized holding gains/(losses) on available-for-sale securities		180,851
Foreign currency translation – continued operations	(47,624)	377,772
Comprehensive loss - continued operation	(4,016,690)	(1,580,526)
Gain from discontinued operations	645,437	(108,328)
Foreign currency translation - discontinued operation		26,317
Comprehensive Gain - discontinued operation	645,437	(82,011)
Comprehensive Loss	(3,371,253)	(1,662,537)
Less: Net loss attributable to non-controlling interests	3,579	(71,013)
COMPREHENSIVE LOSS ATTRIBUTABLE TO FUTURE FINTECH GROUP INC. STOCKHOLDERS	$ (3,374,832)	$ (1,591,524)
Loss per share:
Basic loss per share from continued operation (in Dollars per share)	$ (0.2)	$ (0.14)
Basic loss per share from discontinued operation (in Dollars per share)	0.03	(0.01)
Diluted loss per share:
Diluted loss per share from continued operation (in Dollars per share)	(0.2)	(0.14)
Diluted loss per share from discontinued operation (in Dollars per share)	0.03	(0.01)
Diluted loss per share (in Dollars per share)	$ (0.17)	$ (0.15)
Weighted average number of shares outstanding
Basic (in Shares)	19,867,249	14,645,653
Diluted (in Shares)	19,909,357	14,856,179
Third party
Cost of revenues - third party	$ 3,036,055	$ 1,800,876
Cost of revenues-related party	$ 3,036,055	$ 1,800,876
Loss per share:
Basic loss per share from discontinued operation (in Dollars per share)	$ 0.03	$ (0.01)
Related party
Cost of revenues - third party	$ 135,640	$ 361,958
Cost of revenues-related party	$ 135,640	$ 361,958
Loss per share:
Basic loss per share (in Dollars per share)	$ (0.17)	$ (0.15)

Condensed Consolidated Statements of Stockholders’ Equity (Unaudited) - USD ($)	Common Stock	Additional paid-in capital	Statutory reserve	Accumulated Deficits	Accumulative Other comprehensive income	Non-controlling interests	Total
Balance at Dec. 31, 2022	$ 14,646	$ 222,751,657	$ 98,357	$ (152,276,434)	$ (3,623,005)	$ (1,279,580)	$ 65,685,641
Balance (in Shares) at Dec. 31, 2022	14,645,653
Net loss from continued operation				(2,068,136)		(71,013)	(2,139,149)
Net loss from discontinued operations				(108,328)			(108,328)
Unrealized holding gains/(losses) on available-for-sale securities					180,851		180,851
Disposition of Discontinued operation					26,317		26,317
Foreign currency translation adjustment					377,772		(377,772)
Balance at Mar. 31, 2023	$ 14,646	222,751,657	98,357	(154,452,898)	(3,038,065)	(1,350,593)	64,023,104
Balance (in Shares) at Mar. 31, 2023	14,645,653
Balance at Dec. 31, 2023	$ 17,835	233,890,997	98,357	(185,929,662)	(4,094,276)	(1,568,207)	$ 42,415,044
Balance (in Shares) at Dec. 31, 2023	17,834,874						17,834,874
Net loss from continued operation				(3,972,645)		3,579	$ (3,969,066)
Issuance of common stocks-non cash	$ 2,150	2,578,493					2,580,643
Issuance of common stocks-non cash (in Shares)	2,150,536
Net loss from discontinued operations
Unrealized holding gains/(losses) on available-for-sale securities
Disposition of Discontinued operation				645,437			645,437
Foreign currency translation adjustment					(47,624)		(47,624)
Balance at Mar. 31, 2024	$ 19,985	$ 236,469,490	$ 98,357	$ (189,256,870)	$ (4,141,900)	$ (1,564,628)	$ 41,624,434
Balance (in Shares) at Mar. 31, 2024	19,985,410						19,985,410

Condensed Consolidated Statements of Cash Flows (Unaudited)	3 Months Ended
	Mar. 31, 2024 USD ($)	Mar. 31, 2023 USD ($)
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$ (3,323,629)	$ (2,247,477)
Net gain (loss) from discontinued operation	645,437	(108,328)
Net loss from continuing operations	(3,969,066)	(2,139,149)
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation	66,859	71,397
Amortization	14,259	14,259
Provision of doubtful debts	794,355	16,826
Investment loss	12,058
Interest expenses related to convertible note	21,940
Changes in operating assets and liabilities
Accounts receivable	1,127,255	3,461,950
Notes receivable	(648,344)
Other receivable	9,112,605	(2,874,474)
Advances to suppliers and other current assets	(14,553,667)	(10,555,514)
Operating lease assets and liabilities	2,935
Accounts payable	(1,074,774)	(1,970,579)
Accrued expenses	1,191,903	(668,773)
Advances from customers	(252,821)	4,370,386
Net Cash Used in Operating Activities – Continued Operations	(8,154,503)	(10,273,671)
Net Cash Provided in Operating Activities – Discontinued Operations	645,437	31,916
CASH FLOWS FROM INVESTING ACTIVITIES
Additions to property, plant and equipment	(145,709)	(17,010)
Disposal of property and equipment	1,369
Repayment for loan receivable		224,970
Payment for short term investment	946,970
Disposal of a subsidiary, net of cash		(10,720)
Net Cash Provided by Investing Activities from Continued Operations	802,630	197,240
Net Cash Used in Investing Activities from Discontinued Operations	0	(51,960)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from the issuance of common stock, net of issuance costs	2,580,643
Proceeds from amounts due from related parties, net	243,725	46,860
Repayment of amounts due to related parties, net	(275,792)	(104,156)
Net cash provided by financing activities from continued operations	2,548,576	(57,297)
Effect of change in exchange rate	12,123	305,321
NET DECREASE IN CASH AND RESTRICTED CASH	(4,145,737)	(9,848,450)
Cash and cash equivalents, from the continuing operations beginning of year	19,032,278	29,648,236
Less: Cash and cash equivalents from the discontinued operations, end of year		(10,720)
Cash and cash equivalents, from the continuing operations end of year	14,886,541	19,789,066
SUPPLEMENTARY DISCLOSURE OF SIGNIFICANT NON-CASH TRANSACTION
Issuance of common stocks	2,580,644
SUPPLEMENTAL CASH FLOW INFORMATION
Cash paid for income taxes	$ 6,208	$ 63,162

Corporate Information

3 Months Ended

Mar. 31, 2024

Corporate Information [Abstract]

CORPORATE INFORMATION

1. CORPORATE INFORMATION

Future FinTech Group Inc. (the “Company”) is a holding company incorporated under the laws of the State of Florida. The Company historically 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 had 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, asset management business in Hong Kong and cross-border money transfer service in UK. The Company also expanded into brokerage and investment banking business in Hong Kong and cryptocurrency mining farm in the U.S. The Company had a contractual arrangements 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 authority on March 7, 2024.

On February 27, 2023, Future FinTech (Hong Kong) Limited (“Buyer”), a company incorporated in Hong Kong and a wholly owned subsidiary of Future FinTech Group Inc. (the “Company”) entered into a Share Transfer Agreement (the “Agreement”) with Alpha Financial Limited, a company incorporated in Hong Kong (“Seller”) and sole owner and shareholder of Alpha International Securities (Hong Kong) Limited, a company incorporated in Hong Kong (“Alpha HK”) and Alpha Information Service (Shenzhen) Co., Ltd., a company incorporated in China (“Alpha SZ”). Alpha HK 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. Alpha SZ provides technical support services to Alpha HK. The share transfer transaction was approved by the Securities and Futures Commission of Hong Kong (“SFC”) in August 2023 and the acquisition was closed on November 7, 2023. The names of the two entities were also changed to ‘FTFT International Securities and Futures Limited’ and ‘FTFT Information Services (Shenzhen) Co. Ltd.’ in November 2023, respectively.

The Company’s business and operations are principally conducted by its subsidiaries in the PRC and Hong Kong.

On January 26, 2023, 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 1-for-5 reverse stock split of the Company’s authorized shares of common stock from 300,000,000 shares to 60,000,000 shares, accompanied by a corresponding decrease in the Company’s issued and outstanding shares of common stock (the “Reverse Stock Split”). The common stock continues to be $0.001 par value. The Company rounded up to the next full share of the Company’s shares of common stock any fractional shares that resulted from the Reverse Stock Split and no fractional shares was issued in connection with the Reverse Stock Split and no cash or other consideration was paid in connection with any fractional shares that would otherwise have resulted from the Reverse Stock Split. No changes were made to the number of preferred shares of the Company which remain as 10,000,000 preferred shares as authorized but not issued. The amendment to the Articles of Incorporation of the Company took effect on February 1, 2023. The Reverse Stock Split and Amendment were authorized and approved by the Board of Directors of the Company without shareholders’ approval, pursuant to 607.10025 of the Florida Business Corporation Act of the State of Florida.

The reverse stock split would be reflected in our March 31, 2024 and December 31, 2023 statements of changes in stockholders’ equity, and in per share data for all periods presented.

Summary of Significant Accounting Policies

3 Months Ended

Mar. 31, 2024

Summary of Significant Accounting Policies [Abstract]

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

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 March 31, 2024 and the results of operations and cash flows for the periods ended March 31, 2024 and 2023. 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 months ended March 31, 2024 are not necessarily indicative of the results to be expected for any subsequent periods or for the entire year ending December 31, 2024. The balance sheet at December 31, 2023 has been derived from the audited financial statements at that date.

Our contractual arrangements with the VIE and their respective shareholders allow us to (i) exercise effective control over the VIE, (ii) receive substantially all of the economic benefits of the VIE, and (iii) have an exclusive option to purchase all or part of the equity interests in the VIE when and to the extent permitted by PRC law.

As a result of our direct ownership in our wholly owned subsidiary and the contractual arrangements with the VIE, we are regarded as the primary beneficiary of the VIE, and we treat it and its subsidiaries as our consolidated affiliated entities under U.S. GAAP. We have consolidated the financial results of the VIE in our condensed consolidated financial statements in accordance with U.S. GAAP

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 our audited financial statements and notes thereto for the year ended December 31, 2023 as included in our Annual Report on Form 10-K.

Discontinued Operations

On June 16, 2023, QR (HK) Limited was dissolved and deregistered.

On December 5, 2023, FTFT PARAGUAY S.A. was dissolved.

On March 7, 2024, Chain Cloud Mall Network and Technology (Tianjin) Co., Limited was dissolved and deregistered.

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.

Segment Information Reclassification

The Company classified business segment into supply chain financing and trading and asset management services, and others.

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 not limited to, the allowance for doubtful receivable, 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 our 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 amounted $3.97 million, and it had negative operating cash flows amounted $8.15 million as of March 31, 2024. These factors raise substantial doubts about the Company’s ability to continue as a going concern. The Company has raised funds through issuance of convertible notes and common stock.

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.

Research and development

Research and development expenses include salaries, contracted services, as well as the related expenses for our research and product development team, and expenditures relating to our efforts to develop, design, and enhance our service to our clients. The Company expenses research and development costs as they are incurred.

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.

Our cash and cash equivalents and restricted cash and short-term investments are classified within level 1 of the fair value hierarchy because they are value using quoted market price.

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.

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.

As of March 31, 2024:

		Income				Share				Pre-share amount

Loss from continued operations attributable to Future Fintech Group, Inc.		$	(3,972,645	)			19,867,249			$	(0.20	)
Income from discontinued operations attributable to Future Fintech Group, Inc.			645,437				19,867,249				0.03

Basic EPS:
Loss to common stockholders from continuing operations			(3,972,645	)			19,867,249				(0.20	)
Income available to common stockholders from discontinued operations		$	645,437				19,867,249			$	0.03

Dilutive EPS:

Warrants			-				42,108				-
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 continued operations attributable to Future Fintech Group, Inc.			(3,972,645	)			19,909,357				(0.20	)
Diluted earnings per share is calculated by taking net loss, divided by the diluted weighted average common shares outstanding from discontinued operations			645,437				19,909,357				0.03

As of March 31, 2023:

		Income				Share				Pre-share amount

Loss from continued operations attributable to Future Fintech Group, Inc.		$	(2,068,136	)			14,645,653			$	(0.14	)
Income from discontinued operations attributable to Future Fintech Group, Inc.			(108,328	)			14,645,653				(0.01	)

Basic EPS:
Loss to common stockholders from continuing operations			(2,068,136	)			14,645,653				(0.14	)
Loss available to common stockholders from discontinued operations		$	(108,328	)			14,645,653			$	(0.01	)

Dilutive EPS:

Warrants			-				210,526
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 continued operations attributable to Future Fintech Group, Inc.			(2,068,136	)			14,856,179				(0.14	)
Diluted loss per share is calculated by taking net loss, divided by the diluted weighted average common shares outstanding from discontinued operations			(108,328	)			14,856,179				(0.01	)

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 RMB500,000, in the HK are only insured by the government up to HKD500,000, in the United Kingdom are only insured by the government up to GBP18,000, in the United States of America are only insured by the Federal Deposit Insurance Corporation up to USD250,000, and are consequently exposed to risk of loss.

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 consolidated balance sheets, and is not included in the total cash and cash equivalents in the consolidated statements of cash flows.

Receivable and Allowances

Accounts receivable are recognized and carried at the original invoice amounts less an allowance for any uncollectible amount. We have a policy of reserving for uncollectible accounts based on our best estimate of the amount of probable credit losses in our existing accounts receivable. We perform ongoing credit evaluations of our customers and maintain 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 any uncollectible amount. We have a policy of reserving for uncollectible accounts based on our best estimate of the amount of probable impairment losses in our existing receivable.

Allowances for doubtful accounts 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 “Bad debt expense” in the consolidated statements of comprehensive income. We determine 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, we use 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. We may also record a general allowance as necessary.

Direct write-offs are taken in the period when we have exhausted our efforts to collect overdue and unpaid receivable or otherwise evaluate other circumstances that indicate that we should abandon such efforts.

The Company has assessed its accounts receivable including credit term and corresponding all its accounts receivables as of March 31, 2024. Bad debt expense was $794,355 and $16,826 during the three months ended March 31, 2024 and 2023, respectively. Accounts receivables of $1.79 million and $0.97 million have been outstanding for over 90 days as of March 31, 2024 and December 31, 2023, respectively.

Revenue Recognition

We apply 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. We assess 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. We allocate 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.

We do not make any significant judgment in evaluating when control is transferred. Revenue is recorded net of value-added tax.

Revenue recognitions are as follows:

Sales of coals, aluminum ingots, sand and steel

The Company recognize 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 was $0.40 million and nil during the three months ended March 31, 2024 and 2023, respectively.

Sales agent services for coals, aluminum ingots, sand and steel

For the sale of third-party products where the Company obtains control of the product before transferring it to the customer, the Company recognizes revenue based on the gross amount billed to customers. The Company considers multiple factors when determining whether it obtains control of third-party products, including evaluating if it can establish the price of the product, retains inventory risk for tangible products or has the responsibility for ensuring acceptability of the product. The Company recognizes net revenue from sales agent service fees of coals, aluminum ingots, sand and steel when no control obtained throughout the transactions. Revenue was $0.04 million and $0.11 million during the three months ended March 31, 2024 and 2023, respectively.

Asset Management Service

The Company recognizes service revenue when a service is rendered, the Company issues bills to its customers and recognizes revenue according to the bills.

Property, Plant and Equipment

Property, plant 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 consolidated statements of income and comprehensive income.

Depreciation related to property, plant and equipment used in production is reported in cost of sales, and includes amortized amounts related to capital leases. We estimated that the residual value of the Company’s property and equipment ranges from 3% to 5%. Property, plant and equipment are depreciated over their estimated useful lives as follows:

Machinery and equipment		5-10 years
Building		30 years
Furniture and office equipment		3-5 years
Motor vehicles		5 years

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 ten year, which is determined by using the time period that an intangible is estimated to contribute directly or indirectly to a Company’s future cash flows.

Foreign Currency and Other Comprehensive Income (Loss)

The financial statements of the Company’s foreign subsidiaries and VIE 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 historical exchange rate.

The exchange rate we used to convert RMB to USD was 7.10:1 and 7.08:1 at the balance sheet dates of March 31, 2024 and December 31, 2023, respectively. The average exchange rate for the period has been used to translate revenues and expenses. The average exchange rates we used to convert RMB to USD were 7.10:1 and 6.67:1 for three months ended March 31, 2024 and 2023, respectively.

The exchange rate we used to convert HKD to USD was 7.83:1 and 7.82:1 at the balance sheet dates of March 31, 2024 and December 31, 2023. The average exchange rate for the period has been used to translate revenues and expenses. The average exchange rates we used to convert HKD to USD were 7.82:1 and 7.84:1 for three months ended March 31, 2024 and 2023, respectively.

The exchange rate we used to convert GBP to USD was 0.79:1 and 0.78:1 at the balance sheet dates of March 31, 2024 and December 31, 2023. The average exchange rate for the period has been used to translate revenues and expenses. The average exchange rates we used to convert GBP to USD were 0.79:1 and 0.82:1 for three months ended March 31, 2024 and 2023, respectively.

The exchange rate we used to convert AED to USD was 3.66:1 and 3.66:1 at the balance sheet dates of March 31, 2024 and December 31, 2023. The average exchange rate for the period has been used to translate revenues and expenses. The average exchange rates we used to convert AED to USD were 3.67:1 and 3.67:1 for three months ended March 31 2024 and 2023, respectively.

The exchange rate we used to convert PYG to USD was 7393.74:1 and 7298.63:1 at the balance sheet dates of March 31, 2024 and December 31, 2023. The average exchange rate for the period has been used to translate revenues and expenses. The average exchange rate we used to convert PYG to USD was 7290.28:1 and 7275.55:1 for three months ended March 31 2024 and 2023, respectively.

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 consolidated statements 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.

Income Taxes

We use 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. We have no material uncertain tax positions for any of the reporting periods presented.

Goodwill

The Company tests goodwill for impairment for its reporting units on an annual basis, or when events occur or circumstances indicate the fair value of a reporting unit is below its carrying value. If the fair value of a reporting unit is less than its carrying value, an impairment loss is recorded to the extent that implied fair value of the goodwill within the reporting unit is less than its carrying value.

The Company’s evaluation of goodwill for impairment involves the comparison of the fair value of the reporting unit to its carrying value. The Company uses the discounted cash flow model to estimate fair value, which requires management to make significant estimates and assumptions related to forecasts of future revenue and operating margin. In addition, the discounted cash flow model requires the Company to select an appropriate weighted average cost of capital based on current market conditions as of March 31, 2024 and December 31, 2023. A high degree of auditor judgment and an increased extent of effort were required when performing audit procedures to evaluate the reasonableness of management’s estimates and assumptions related to the forecasts. Based upon the assessment, the Company has concluded that goodwill was nil as of March 31, 2024 and December 31, 2023.

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 March 31, 2024 and December 31, 2023, the short-term investments amounted to nil and $0.96 million, respectively. On March 5, 2024, the Company sold the short – term investments at the amount of $0.95 million, investment loss $0.01 million. Due to fluctuations of the quoted shares included in its investment portfolios, the Company unrealized holding gains on available-for-sale securities of nil and $0.18 million on March 31, 2024 and 2023.

Lease

We adopted ASU No. 2016-02, Leases (Topic 842), or ASC 842, from January 1, 2020. We determine if an arrangement is a lease or contains a lease at lease inception. For operating leases, we recognize 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 consolidated balance sheets at commencement date. As most of our leases do not provide an implicit rate, we estimate our 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. Our leases often include options to extend and lease terms include such extended terms when we are reasonably certain to exercise those options. Lease terms also include periods covered by options to terminate the leases when we are 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 June 2016, the FASB issued ASU No. 2016-13 (“ASU 2016-13”) “Financial Instruments - Credit Losses” (“ASC 326”): Measurement of Credit Losses on Financial Instruments” which requires the measurement and recognition of expected credit losses for financial assets held at amortized cost. ASU 2016-13 replaces the existing incurred loss impairment model with an expected loss model which requires the use of forward-looking information to calculate credit loss estimates. It also eliminates the concept of other-than-temporary impairment and requires credit losses related to available-for-sale debt securities to be recorded through an allowance for credit losses rather than as a reduction in the amortized cost basis of the securities. These changes will result in earlier recognition of credit losses. In November 2019, the FASB issued ASU 2019-10 “Financial Instruments – Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842)” (“ASC 2019-10”), which defers the effective date of ASU 2016-13 to fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, for public entities which meet the definition of a smaller reporting company. The Company adopt ASU 2016-13 effective January 1, 2023. Management adopted of ASU 2016-13 on the consolidated financial statements. The effect will largely depend on the composition and credit quality of our investment portfolio and the economic conditions at the time of adoption.

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 consolidated financial statements.

Accounts Receivable

3 Months Ended

Mar. 31, 2024

Accounts Receivable [Abstract]

ACCOUNTS RECEIVABLE

3. ACCOUNTS RECEIVABLE

Accounts receivable, net consist of the following:

		March 31,				December 31,
		2024				2023

Supply Chain Financing/Trading		$	1,848,841			$	3,251,822
Asset management service		$	1,858,231			$	1,250,613
Others		$	911,789			$	1,203,442
Total accounts receivable, net		$	4,618,861			$	5,705,877

The following table sets forth our concentration of accounts receivable, net of specific allowances for doubtful accounts.

		March 31,				December 31,
		2024				2023

Debtor A			32.58	%			21.11	%
Debtor B			19.93	%			15.35	%
Debtor C			9.91	%			15.25	%
Total accounts receivable, net			62.42	%			51.71	%

Note Receivables

3 Months Ended

Mar. 31, 2024

Note Receivables [Abstract]

NOTE RECEIVABLES

4. NOTE RECEIVABLES

As of March 31, 2024, the balance of note receivables was $0.65 million, which was from a third party.

The Company accepted $0.65 million (RMB4.60 million) bank acceptance drafts from a third party, interest free of accounts receivable. The acceptance draft was issued on January 24, 2024 and has a maturity date of July 26, 2024.

Other Receivables

3 Months Ended

Mar. 31, 2024

Other Receivables [Abstract]

OTHER RECEIVABLES

5. OTHER RECEIVABLES

As of March 31, 2024, the balance of other receivables was $0.10 million.

As of December 31, 2023, the balance of other receivables was $10.05 million.

As of April 22, 2022 and January 31, 2023, FTFT Super Computing Inc. entered into a “Electricity Sales and Purchase Agreement” with a third-party seller. FTFT Super Computing Inc. provided an initial amount of Adequate Assurance to the seller in the form of a cash deposit in the amount of $1.86 million and has receivables from pre purchase electricity $0.07 million.

On February 3, 2023, Future Fintech Group Inc. entered into a “Consulting Agreement” with a third party for its professional service of potential acquisition projects. Future Fintech Group Inc. provided initial amount of cash deposit to the third party in the amount of $2.40 million.

On December 6, 2023, Future Fintech (Hong Kong) Limited entered into a “Mobile Software Application Development Agreement” with a third-party. Future Fintech (Hong Kong) Limited shall pay $4.00 million. Future Fintech (Hong Kong) Limited provided initial amount of cash deposit to the third party in the amount of $2.00 million. Development shall take 250 man-days.

On December 6, 2023, Future Fintech (Hong Kong) Limited entered into a “Augmented Reality (AR) Group Development and Service Agreement” with a third-party. Future Fintech (Hong Kong) Limited shall pay $5.00 million. Future Fintech (Hong Kong) Limited provided initial amount of cash deposit to the third party in the amount of $2.50 million. Development shall take 180 man-days.

In addition, other receivables included total $1.22 million deposit paid and prepayments to third parties.

Loan Receivables

3 Months Ended

Mar. 31, 2024

Loan Receivables [Abstract]

LOAN RECEIVABLES

6. LOAN RECEIVABLES

As of March 31, 2024, the balance of loan receivables was $14.88 million, which were from third parties.

On March 10, 2022, Future FinTech (Hong Kong) Limited (“FTFT HK”), a wholly owned subsidiary of the Company, entered into a “Loan Agreement” with a third party. Pursuant to the Loan Agreement, FTFT HK loaned an amount of $5.00 million to the third party at the annual interest rate of 10% from March 10, 2022 to September 9, 2024. To strengthen the liquidity, the Company negotiated with the borrower to early settle part of the loan. As of May 13, 2024, the Company has received repayment $2.16 million.

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 $7.05 million (RMB50 million) to the third party at the annual interest rate of 8% from July 15, 2022 to July 14, 2024, guarantee by Junde Chen. To strengthen the liquidity, the Company negotiated with the borrower to early settle part of the loan. As of April 17, 2023, the Company has received repayment $4.93 million (RMB35 million). The amount of $2.11 million (RMB15 million) will be repaid before July 14, 2024.

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 $4.93 million (RMB35 million) to the third party at the annual interest rate of 5% from December 8, 2022 to December 8, 2024.

On December 8, 2023, Future Fin Tech (Hong Kong) Limited entered into a “Loan Agreement” with a third party. Pursuant to the Loan Agreement, Future Fin Tech (Hong Kong) Limited loaned an amount of $5.00 million to the third party at the annual interest rate of 5% from December 8, 2022 to December 8, 2024.

As of December 31, 2023, the balance of loan receivables was $14.90 million, which was from a third party.

On March 10, 2022, FTFT HK entered into a “Loan Agreement” with a third party. Pursuant to the Loan Agreement, FTFT HK loaned an amount of $5.00 million to the third party at the annual interest rate of 10% from March 10, 2022 to September 9, 2024. To strengthen the liquidity, the Company negotiated with the borrower to early settle part of the loan. As of April 17, 2023, the Company has received repayment $2.16 million.

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 $7.28 million (RMB50 million) to the third party at the annual interest rate of 8% from July 15, 2022 to July 14, 2024, guarantee by Junde Chen. To strengthen the liquidity, the Company negotiated with the borrower to early settle part of the loan. As of April 17, 2023, the Company has received repayment $5.09 million (RMB35 million). The amount of $2.12 million (RMB15 million) will be repaid before July 14, 2024.

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 $4.94 million (RMB35 million) to the third party at the annual interest rate of 5% from December 8, 2023 to December 8, 2024.

On December 8, 2023, Future Fin Tech (Hong Kong) Limited entered into a “Loan Agreement” with a third party. Pursuant to the Loan Agreement, Future Fin Tech (Hong Kong) Limited loaned an amount of $5.00 million to the third party at the annual interest rate of 5% from December 8, 2023 to December 8, 2024.

Short - Term Investments

3 Months Ended

Mar. 31, 2024

Short-Term Investments [Abstract]

SHORT - TERM INVESTMENTS

7. SHORT - TERM INVESTMENT

As of March 31, 2024, the balance of short - term investments was nil. On March 5, 2024, the Company sold the short – team investments amount of $0.95 million, with an investment loss $0.01 million.

As of December 31, 2023, the balance of short - term investments was $0.96 million. On September 6, 2021, Future Private Equity Fund Management (Hainan) Co., Ltd. invested $1.87 million (RMB13,000,000) to entrust Shanghai Yuli Enterprise Management Consulting Firm to invest in various types of investment portfolios. According to the market value, the Company’s balance of the short - term investments was $ 0.98 on December 31, 2023. Due to fluctuations of the quoted shares included in its investment portfolios, the Company recognized an impairment to the investment portfolio of $12,633 million for the years ended December 31, 2023.

Other Current Assets

3 Months Ended

Mar. 31, 2024

Other Current Assets [Abstract]

OTHER CURRENT ASSETS

8. OTHER CURRENT ASSETS

The amount of other current assets consisted of the followings:

		March 31,				December 31,
		2024				2023

Prepayments for Supply Chain Financing/Trading		$	4,016,482			$	2,743,539
Prepaid expenses			9,823,422				29,694
Deposit			3,246,774				-
Others			1,304,741				1,064,519
Total		$	18,391,419			$	3,837,752

As of March 31, 2024, prepaid expenses were 9.82 million.

On February 3, 2023, Future Fintech Group Inc. entered into a “Consulting Agreement” with a third party for its professional service of potential acquisition projects. Future Fintech Group Inc. provided initial amount of cash deposit to the third party in the amount of $2.40 million.

On December 6, 2023, Future Fintech (Hong Kong) Limited entered into a “Mobile Software Application Development Agreement” with a third-party. Future Fintech (Hong Kong) Limited shall pay $4.00 million. Future Fintech (Hong Kong) Limited provided initial amount of cash deposit to the third party in the amount of $2.00 million. Development shall take 250 man-days.

On December 6, 2023, Future Fintech (Hong Kong) Limited entered into a “Augmented Reality (AR) Group Development and Service Agreement” with a third-party. Future Fintech (Hong Kong) Limited shall pay $5.08 million. Future Fintech (Hong Kong) Limited provided initial amount of cash deposit to the third party in the amount of $2.50 million. Development shall take 180 man-days. On March 8, 2024, the Company pays the remaining balance $2.58 million.

In addition, other receivables included total $0.34 million prepayments to a third party.

Acquisition

3 Months Ended

Mar. 31, 2024

Acquisition [Abstract]

9. ACQUISITION

Alpha International Securities (Hong Kong) Limited

On November 7, 2023, Future FinTech (Hong Kong) Limited, a wholly owned subsidiary of the Company completed the acquisition ("Acquisition Date”) of 100% equity interest of Alpha International Securities (Hong Kong) Limited a company incorporated in Hong Kong for $1,791,174 (HKD14,010,421). Alpha International Securities (Hong Kong) Limited is in the securities business in Hong Kong. The Company has changed its name from Alpha International Securities (Hong Kong) Limited to FTFT International Securities and Futures Limited in November 2023.

Alpha Information Services (Shenzhen) Co., Ltd

On November 7, 2023, Future FinTech (Hong Kong) Limited, a wholly owned subsidiary of the Company acquired 100% equity interest of Alpha Information Services (Shenzhen) Co., Ltd. for $210,788 (HKD1,649,528). Alpha Information Services (Shenzhen) Co., Ltd provides information services for FTFT International Securities and Futures Limited. The Company has changed its name from Alpha Information Services (Shenzhen) Co., Ltd to Future information service (Shenzhen) Co., Ltd in November 2023.

The following table summarizes the allocation of estimated fair values of net assets acquired and liabilities assumed:

Accounts receivable		$	1,526,360
Other current assets			171,038
Property, plant and equipment, net			1,458
Intangible assets			127,846
Right of use assets			8,875
Lease liability-current			(8,875	)
Accounts payable			(4,123,903	)
Accrued expenses and other payables			(552,484	)
Net identifiable assets acquired		$	(2,849,685	)
Add: goodwill			172,213
Total purchase price for acquisition net of $4,679,434 of cash		$	(2,677,472	)

The Company has included the operating results of FTFT International Securities and Futures Limited in its consolidated financial statements since the Acquisition Date. US$294,437 in net sales and US$88,408 in net income of FTFT International Securities and Futures Limited were included in the consolidated financial statements for the years ended December 31, 2023.

The Company has included the operating results of Future information service (Shenzhen) Co., Ltd in its consolidated financial statements since the Acquisition Date. US$1,390 in net sales and US$50,80 in net loss of Future information service (Shenzhen) Co., Ltd were included in the consolidated financial statements for the years ended December 31, 2023.

Leases

3 Months Ended

Mar. 31, 2024

Leases [Abstract]

10. 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 three months ended March 31, 2024, the operating lease cost was $0.18 million.

The Company’s operating leases have remaining lease terms of approximately 53 months. As of March 31, 2024, the weighted average remaining lease term and weighted average discount rate were 3.56 years and 4.75%, respectively.

Maturities of lease liabilities were as follows:

		Operating
As of March 31,		Lease
From April 1, 2024 to March 31, 2025		$	435,223
From April 1, 2025 to March 31, 2026			254,858
From April 1, 2026 to March 31, 2027			241,275
From April 1, 2027 to March 31, 2028			200,526
From April 1, 2028 to March 31, 2029			83,553
Total		$	1,215,435
Less: amounts representing interest		$	86,998
Present Value of future minimum lease payments			1,128,437
Less: Current obligations			382,172
Long term obligations		$	746,265

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 $1,979 for three months ended March 31, 2024.

Property and Equipment

3 Months Ended

Mar. 31, 2024

Property and Equipment [Abstract]

PROPERTY AND EQUIPMENT

11. PROPERTY AND EQUIPMENT

Property and equipment consist of the following:

		March 31,				December 31,
		2024				2023

Office equipment, fixtures and furniture		$	638,345			$	633,936
Vehicle			728,201				730,998
Building			162,328				146,053
Subtotal			1,528,874				1,510,987
Less: accumulated depreciation and amortization			(778,667	)			(716,828	)
Construction in progress			3,863,806				3,790,623
Impairment			(5,584	)			(5,594	)
Total		$	4,608,429			$	4,579,188

Depreciation expense included in general and administration expenses for the three months ended March 31, 2024 and 2023 was $66,859 and $71,397, respectively. Depreciation expense included in cost of sales for the three months ended March 31, 2024 and 2023 was $0 and $0, respectively.

Intangible Assets

3 Months Ended

Mar. 31, 2024

Intangible Assets [Abstract]

INTANGIBLE ASSETS

12. INTANGIBLE ASSETS

Intangible assets consist of the following:

		March 31,				December 31,
		2024				2023

Trademarks		$	128,619				847
System and software			2,506,301				2,730,549
Subtotal			2,634,920				2,731,396
Less: accumulated depreciation and amortization			(318,934	)			(311,131	)
Less: impairment			(1,741,438	)			(1,831,283	)
Total		$	574,548			$	588,982

Amortization expense included in general and administration expenses for the three months ended March 31, 2024 and 2023 was $14,259 and $14,259, respectively. Amortization expense included in cost of sales for the three months ended March 31, 2024 and 2023 was $0 and $0, respectively.

The estimated amortization is as follows:

As of March 31,		Estimated amortization expense
From April 1, 2024 to March 31, 2025		$	57,035
From April 1, 2025 to March 31, 2026			57,035
From April 1, 2026 to March 31, 2027			57,035
From April 1, 2027 to March 31, 2028			57,035
From April 1, 2028 to March 31, 2029			57,035
Thereafter			161,600
Total		$	446,775

Type 1 and Type 2 licenses by Hong Kong Securities and Futures Commission have no expiration date and do not require amortization, amount was $127,773.

Account Payables

3 Months Ended

Mar. 31, 2024

Account Payables [Abstract]

ACCOUNT PAYABLES

13. ACCOUNT PAYABLES

The amount of account payables were consisted of the followings:

		March 31,				December 31,
		2024				2023

Supply Chain Financing/Trading payment		$	118,274			$	728,010
Others			2,127,013				2,592,051
Total		$	2,245,287			$	3,320,061

Accrued Expenses and Other Payables

3 Months Ended

Mar. 31, 2024

Accrued Expenses and Other Payables [Abstract]

ACCRUED EXPENSES AND OTHER PAYABLES

14. ACCRUED EXPENSES AND OTHER PAYABLES

The amount of accrued expenses and other payables consisted of the followings:

		March 31,				December 31,
		2024				2023

Legal fee and other professionals		$	1,055,018			$	832,263
Wages and employee reimbursement			165,550				509,288
Provision for legal case			10,598,380				8,875,265
Suppliers			841,874				731,521
Accruals			528,562				1,049,144
Total		$	13,189,384			$	11,997,481

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 $8,875,265. On April 16, 2024, the Court issued an amended judgment, awarding FT Global $10,598,379.93, which includes $7,895,265.31 in damages, $1,723,114.62 in prejudgment interest, and $980,000.00 in attorney’s fees.

Convertible Notes Payable

3 Months Ended

Mar. 31, 2024

Convertible Notes Payable [Abstract]

CONVERTIBLE NOTES PAYABLE

15. CONVERTIBLE NOTES PAYABLE

The amount of convertible notes payable consisted of the followings:

		March 31,				December 31,
		2024				2023

Beginning		$	1,100,723			$	-
Addition			-				1,100,723
Interest expenses			21,940				-
Payment			-				-
Conversion			-				-
Balance		$	1,122,663			$	1,100,723

Related Party Transaction

3 Months Ended

Mar. 31, 2024

Related Party Transaction [Abstract]

RELATED PARTY TRANSACTION

16. RELATED PARTY TRANSACTION

As of March 31, 2024, the amounts due to the related parties were consisted of the followings:

Name		Amount (US$)				Relationship		Note
Chan Siu Kei			431,757			NTAM’s Director		Other payables, interest free and payment on demand.
JKNDC Ltd			114,996			A company owned by the minority shareholder of NTAM		Other payables, interest free and payment on demand.
Total		$	546,753

As of March 31, 2024, the amounts due from the related parties were consisted of the followings:

Name		Amount (US$)				Relationship		Note
Xiaochen Zhao			929			Corporate legal representative		Prepaid expenses, interest free and payment on demand.
Hu Li			20,000			Corporate Secretary		Prepaid expenses, interest free and payment on demand.
Chao Li			2,115			Corporate legal representative		Prepaid expenses, interest free and payment on demand.
Ming Yi			63,788			Chief Financial Officer of the Company		Prepaid expenses, interest free and payment on demand.
Total		$	86,832

During three months ended March 31, 2024, the Company had the following transactions with related parties:

Name		Amount				Relationship		Note
JKNDC Limited		$	1,918			A company owned by the minority shareholder of NTAM		Other expenses
JKNDC Limited			135,640			A company owned by the minority shareholder of NTAM		Cost of revenue- Asset management service
Nice Talent Partner Limited			115,087			A company owned by the minority shareholder of NTAM		Consultancy fee

As of December 31, 2023, the amount due to the related parties was consisted of the followings:

Name		Amount				Relationship		Note
Chao Li		$	73,893			Corporate legal representative		Other payables, interest free and payment on demand.
Ming Yi			29,513			Chief Financial Officer of the Company		Accrued expenses, interest free and payment on demand.
Xiaochen Zhao			124			Corporate legal representative		Accrued expenses, interest free and payment on demand.
Chan Siu Kei			401,516			NTAM’s Director		Other payables, interest free and payment on demand.
Total		$	505,046

As of December 31, 2023, the amount due from the related parties was consisted of the followings:

Name		Amount				Relationship		Note
Kai Xu		$	12,151			Deputy General Manager of a subsidiary of the Company		Loan receivables*, interest free and payment on demand.
Total		$	12,151

During three months ended March 31, 2023, the Company had the following transactions with related parties:

Name		Amount				Relationship		Note
JKNDC Limited		$	1,914			A company owned by the minority shareholder of NTAM		Other expenses
JKNDC Limited			361,958			A company owned by the minority shareholder of NTAM		Cost of revenue- Asset management service
Alpha Yield Limited			178,913			A director of the Company is a shareholder of this company		Consultancy fee
Nice Talent Partner Limited			76,542			A company owned by the minority shareholder of NTAM		Consultancy fee

*

The related party transactions have been approved by the Company’s Audit Committee.

Income Tax

3 Months Ended

Mar. 31, 2024

Income Tax [Abstract]

17. 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 21% in 2024 and 2023. No provisions for income taxes have been made, as the Company had no U.S. taxable income for the three months ended March 31, 2024 and 2023. For the three months ended March 31, 2024 and 2023, the Company had current income tax expenses of nil and $25,674, respectively.

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 March 31, 2024, the Company had no 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 and a VIE.

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 25% on all domestic-invested enterprises and foreign-invested enterprises in the PRC, unless they qualify under certain limited exceptions. The tax rate for pre-tax profits below RMB 1 million is 2.5%; the tax rate for pre-tax profits between RMB1 million to RMB 3 million is 10% and the tax rate for pre-tax profits over RMB 3 million is 25%. E-Commerce Tianjin, Future Supply (Chengdu) Co., Ltd. and Future Big Data (Chengdu) Co., Ltd. were subject to an enterprise income tax rate of 2.5% and 10%. Other subsidiaries and VIE were subject to an enterprise income tax rate of 25%.

Future Fin Tech (HongKong) Limited, QR (HK) Limited and Nice Talent Asset Management 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 16.5% in Hong Kong.

FTFT UK Limited and FTFT Finance UK Limited are incorporated in United Kingdom and are subject to United Kingdom Profits Tax on the taxable income as reported in its statutory financial statements adjusted in accordance with relevant United Kingdom tax laws. The applicable tax rate is 19% in United Kingdom.

FTFT Capital investments L.L.C is incorporated in Dubai, United Arab Emirates. The applicable tax rate is nil in Dubai, United Arab Emirates.

Digipay Fintech Limited is incorporated in British Virgin Island. The applicable tax rate is nil in British Virgin Island.

Reconciliation of the differences between the statutory EIT rate applicable to profits of the consolidated entities and the income tax expenses of the Company:

		March 31, 2024				March 31, 2023

Loss before taxation		$	(3,969,066	)		$	(2,113,475	)
PRC statutory tax rate			25	%			25	%
Computed expected benefits			(992,267	)			(528,369	)
Others, primarily the differences in tax rates			263,975				50,866
Deferred tax assets losses not recognized			728,292				503,177
Total		$	-			$	25,674

Share Based Compensation

3 Months Ended

Mar. 31, 2024

Share Based Compensation [Abstract]

SHARE BASED COMPENSATION

18. SHARE BASED COMPENSATION

On February 1, 2023, the Company effected a 1-for-5 reverse stock split of the Company’s issued and authorized shares and its total authorized shares of common stock reduced from 300,000,000 shares to 60,000,000 shares.

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 10% of their net income to the statutory reserve prior to payment of any dividends, unless the reserve has reached 50% of their respective registered capital. Furthermore, registered share capital and capital reserve accounts are also restricted from distribution. As a result of the restrictions described above and elsewhere under PRC laws and regulations, the Company’s subsidiaries incorporated in the PRC are restricted in their ability to transfer a portion of their net assets to the Company in the form of dividends. The restriction amounted to $24.83 million (RMB176,144,932) as of March 31, 2024. Except for the above or disclosed elsewhere, there is no other restriction on the use of proceeds generated by the Company’s subsidiaries to satisfy any obligations of the Company.

Payments-omnibus equity plan

On October 12, 2023, the Compensation Committee of the Board of Directors of the Company granted 2,890,000 shares of common stock of the Company, par value $0.001, pursuant to the Company’s 2023 Omnibus Equity Plan, to certain officers and employees of the Company and its subsidiaries (the “Grantees”). As the closing price of the Company stock was $1.20 on December 23, 2023, the Company recorded an expense of $3.47 million in the third quarter of fiscal year 2023. As of the date of this report, the Shares have been issued to the Grantees.

Common Stock

3 Months Ended

Mar. 31, 2024

Common Stock [Abstract]

19. 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 4,210,530 units, each consisting of one share of our common stock and a warrant to purchase 1 share of our Common Stock, at a purchase price of $1.90 per unit, for aggregate gross proceeds to the Company of $8,000,007, before deducting fees to the placement agent and other offering expenses payable by the Company. On December 29, 2020, the Company issued Units consisting of an aggregate of 4,210,530 shares of our Common Stock and warrants to purchase up to an aggregate of 4,210,530 shares of our Common Stock at an exercise price of $2.15 per share (the “Investors’ Warrants”). The Investors’ Warrants have a term of five years and are exercisable by the holder at any time after the date of issuance. In connection with the offering, the Company also issued placement agent a warrant to purchase 210,526 shares of our Common Stock (the “Placement Agent Warrant”) on substantially the same terms as the Investors’ Warrants, except that the Placement Agent Warrant has an exercise price of $2.375 per share and are not exercisable until June 24, 2021. The share numbers in the descriptions above are pre reverse split on February 1, 2023. As of December 31, 2023, outstanding warrant has 42,108 underlying shares of our Common Stock.

On August 6, 2021, the Company, through its wholly owned subsidiary Future FinTech (Hong Kong) Limited., completed its acquisition of 90% of the issued and outstanding shares of Nice Talent Asset Management Limited from Joy Rich Enterprises Limited (the “Nice Shares”) for HK$144,000,000 (the “Purchase Price”) which shall be paid in the shares of common stock of the Company (the “Company Shares”). 60% of the purchase price ($11.22 million) was paid in 2,244,156 pre reverse split shares of common stock of the Company on August 4, 2021, at a price of $5 per share. 40% of the Purchase Price ($7.39 million) was paid in 299,221 shares of common stock of the Company on October 17, 2023.

On January 5, 2024, the Company entered into a securities purchase agreement with certain purchasers identified on the signature page thereto, pursuant to which the Company sold to the purchasers in a private placement, an aggregate of 2,150,536 share of its common stock, par value $0.001 per share at a purchase price of $1.20 per share, for aggregate net proceeds to the Company of $2,580,644. On January 18, 2024, the Company issued 2,150,536 shares of common stock pursuant to this Agreement.

Discontinued Operations

3 Months Ended

Mar. 31, 2024

Discontinued Operations [Abstract]

DISCONTINUED OPERATIONS

20. DISCONTINUED OPERATIONS

On June 16, 2023, QR (HK) Limited was dissolved and deregistered.

On December 5, 2023, FTFT PARAGUAY S.A. was dissolved.

On March 7, 2024, Chain Cloud Mall Network and Technology (Tianjin) Co., Limited was dissolved and deregistered.

Loss from discontinued operations for the three months ended March 31, 2024 and 2023 was as follows:

		December 31,				March 31,
		2024				2023
REVENUES		$	-			$	29,515
COST OF SALES			-				23,494
GROSS PROFIT			-				6,021

OPERATING EXPENSES:
General and administrative			-				102,572
Research and Development expenses			-				2,724
Selling expenses			-				5,277
Total			-				110,573

OTHER INCOME (EXPENSE)
Interest income			-				4
Interest expense			-				(2,842	)
Other expense			-				(938	)
Total			-				(3,776	)
Loss from discontinued operations before income tax			-				(108,328	)
Income tax provision			-				-
Loss from discontinued operation before noncontrolling interest		$	-				-
Gain on disposal of discontinued operations			645,437				-
Less: Net loss attributable to non-controlling interests			-				-
INCOME (LOSS) FROM DISCONTINUED OPERATION		$	645,437			$	(108,328	)

The major components of assets and liabilities related to discontinued operations are summarized below:

			December 31, 2024				December 31, 2023
Cash and cash equivalents		$	-			$	-
Total assets related to discontinued operations		$	-			$	-
Total liabilities related to discontinued operations		$	-			$	-

Segment Reporting

3 Months Ended

Mar. 31, 2024

Segment Reporting [Abstract]

SEGMENT REPORTING

21. SEGMENT REPORTING

In its operation of the business, management, including our chief operating decision maker, who is our Chief Executive Officer, reviews certain financial information, including segmented internal profit and loss statements prepared on a basis consistent with GAAP. The Company operates in three segments starting in fiscal 2021: “supply chain financing service and trading business”, “asset management service” and “others”.

The Company began to provide coal and aluminum ingots supply chain financing services during the second quarter of 2021 and the Company acquired Nice Talent and started to provide asset management services since August 2021. The Company began to provide sand and steel supply chain financing services during the first quarter of 2023.

Some of our operation might not individually meet the quantitative thresholds for determining reportable segments and we determine 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.

As of March 31, 2024:

		Supply Chain Financing/ Trading				Asset management service				Others				Total
Reportable segment revenue		$	441,764			$	4,372,870			$	308,333			$	5,122,967
Inter-segment loss			-				-				-				-
Revenue from external customers			441,764				4,372,870				308,333				5,122,967
Segment gross profit		$	44,073			$	1,676,704			$	230,495			$	1,951,272

As of March 31, 2023:

		Supply Chain Financing/ Trading				Asset management service				Others				Total
Reportable segment revenue		$	110,798			$	3,163,064			$	90,588			$	3,364,450
Inter-segment loss			-				-				-				-
Revenue from external customers			110,798				3,163,064				90,588				3,364,450
Segment gross profit		$	105,854			$	1,056,307			$	39,455			$	1,201,616

Loss before Income Tax:

		Three months Ended, March 31
		2024				2023
Supply chain financing/trading			208,580				219,179
Asset management service			1,617,278				782,177
Others			1,276,117				(7,467	)
Corporate and Unallocated			2,818,363				2,321,202
Total operating expenses and other expense			5,920,338				3,315,091
Loss before Income Tax			(3,969,066	)			(2,113,475	)

Segment assets:

		March 31, 2024				December 31, 2023
Supply chain financing/trading			12,365,266				12,437,136
Asset management service			4,367,036				3,640,811
Others			20,084,577				23,855,261
Corporate and Unallocated			23,093,573				21,007,542
Total assets			59,910,452				60,940,750

Commitments and Contingencies

3 Months Ended

Mar. 31, 2024

Commitments and Contingencies [Abstract]

COMMITMENTS AND CONTINGENCIES

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 $7,000,000 in damages and attorneys’ fees.

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 March 23, 2021, FT Global filed its response to the Company’s motion to dismiss. FT Global argues that the Court should deny the Company’s motion to dismiss. However, if the Court is inclined to grant the Company’s motion to dismiss, FT Global requested that the Court permit it to file an amended complaint. On April 8, 2021, the parties filed a Joint Preliminary Report and Discovery Plan. On April 12, 2021, the Court approved the Joint Preliminary Report and Discovery Plan and issued a Scheduling Order placing this case on a six-month discovery tract. On April 30, 2021, the Company served FT Global with its Initial Disclosures. On May 6, 2021, FT Global served the Company with its Initial Disclosures. On May 17, 2021, FT Global served the Company with its First Amended Initial Disclosures. 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 Company timely filed an answer and defenses to FT Global’s complaint on November 24, 2021. On January 3, 2022 the Company propounded discovery requests upon FT Global, including interrogatories and requests for production of documents. On March 23, 2022, the Company propounded requests for admission upon FT Global. On March 24, 2022, FT Global propounded discovery requests upon the Company, including requests for production of documents and requests for admission. On April 1, 2022, FT Global served its response to the Company’s requests for production of documents. On May 13, 2022, FT Global served its responses to the Company’s interrogatories and requests for admissions. On May 13, 2022, FT Global produced documents in response to the Company’s requests for production of documents. On June 3, 2022, the Company produced documents in response to FT Global’s requests for production of documents. On August 3, 2022, the Company took the deposition of FT Global. On August 4, 2022, FT Global took the deposition of the Company. On August 3, 2022, the Court granted the parties’ Consent Motion to Extend Discovery Period extending the discovery period from August 5, 2022 to September 14, 2022 and the deadline to file dispositive motions to October 12, 2022. On October 12, 2022, the Company filed a motion for summary judgment on all claims asserted by FT Global in this lawsuit. On November 2, 2022, FT Global filed its opposition to the Company’s motion for summary judgment. On November 16, 2022, the Company filed its reply in support of its motion for summary judgment on all claims asserted by FT Global in this lawsuit. On August 31, 2023, the Court entered an Order denying the Company’s motion for summary judgment. On September 20, 2023, the parties filed a joint motion to extend the deadline to file the consolidated pretrial order pending mediation of the case by the parties. On September 21, 2023, the Court granted the parties’ joint motion to extend the deadline to file the consolidated pretrial order to October 27, 2023. On October 16, 2023, the parties mediated the case. On October 24, 2023, the parties filed another joint motion to extend the deadline to file the consolidated pretrial order. On October 27, 2023, the Court granted the parties’ joint motion to extend the deadline to file the consolidated pretrial order to November 17, 2023 and set the case for trial on January 8, 2024. Subsequently, the Court approved an extension of the deadline to file a pretrial order to December 1, 2023. The Court has also rescheduled the trial to commence on April 8, 2024. 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 and the Court entered a judgment awarding FT Global $8,875,265.31. On April 16, 2024, the Court issued an amended judgment, awarding FT Global $10,598,379.93, which includes $7,895,265.31 in damages, $1,723,114.62 in prejudgment interest, and $980,000.00 in attorney’s fees. The Company filed a post-trial motion challenging the judgment on May 9, 2024 and will continue to vigorously defend the action against FT Global, including by appealing the judgment to the United States Court of Appeals for the Eleventh Circuit if necessary.

Risks and Uncertainties

3 Months Ended

Mar. 31, 2024

Risks and Uncertainties [Abstract]

RISKS AND UNCERTAINTIES

23. RISKS AND UNCERTAINTIES

Impact of COVID 19

In December 2019, a novel strain of coronavirus was reported and has spread throughout China and other parts of the world. On March 11, 2020, the World Health Organization characterized the outbreak as a “pandemic”. In early 2020, Chinese government took emergency measures to combat the spread of the virus, including quarantines, travel restrictions, and the temporary closure of office buildings and facilities in China. In response to the evolving dynamics related to the COVID-19 outbreak, the Company was following the guidelines of local authorities as it prioritizes the health and safety of its employees, contractors, suppliers and business partners. Our offices in China were closed and the employees worked from home at the end of January 2020 until late March 2020. The quarantines, travel restrictions, and the temporary closure of office buildings have materially negatively impacted our business. The outbreak has had and might continue to have disruption to our supply chain, logistics providers, customers or our marketing activities with the new variants of COVID-19, which could materially adversely impact our business and results of operations. There were outbreaks in various cities and provinces in China due to Omicron variant, such as Xi’an city, Hong Kong, Shanghai, Beijing and other cities in 2022, which have resulted quarantines, travel restrictions, and temporary closure of office buildings and facilities in these cities. In December 2022, the Chinese government eased its strict zero COVID-19 policy which resulted in a surge of new COVID-19 cases during December 2022 and January 2023, which has disrupted our business operations in China. The Company’s promotion strategy of CCM Shopping Mall previously mainly relied on the training of members and distributors through meetings and conferences. Chinese government put a restriction on large gatherings in 2020 and 2021, which made the promotion strategy for our online e-commerce platforms difficult to implement and the Company experienced difficulties to subscribe new members for its online e-commerce platforms. Since 2021, CCM generated minimal revenue and business for the Company. The Company started a process to close it down in November 2023 and completed deregistration and dissolution of the VIE with local authority on March 7, 2024.

While the potential economic impact brought by new variants of COVID-19 may be difficult to assess or predict, a widespread pandemic could result in significant disruption of global financial markets, reducing our ability to access capital, which could negatively affect our liquidity. Further, as we do not have access to a revolving credit facility, there can be no assurance that we would be able to secure commercial debt financing in the future in the event that we require additional capital. In the event that we do need to raise capital in the future and there is any outbreak due to new variants, outbreak-related instability in the securities markets could adversely affect our ability to raise additional capital.

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 our business and the enforcement and performance of our arrangements with customers in certain circumstances. We are considered foreign persons or foreign funded enterprises under PRC laws and, as a result, we are 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. We cannot predict what effect the interpretation of existing or new PRC laws or regulations may have on our business.

Customer concentration risk

For three months ended March 31, 2024, one customer accounted for 78.25% of the Company’s total revenues. For three months ended March 31, 2023, one customer accounted for 85.53% of the Company’s total revenues.

Vendor concentration risk

For three months ended March 31, 2024, three vendors accounted for 20.94%, 19.02% and 13.59% of the Company’s total purchases. For three months ended March 31, 2023, four vendors accounted for 35.48%, 16.37%, 12.28% and 11.28% of the Company’s total purchases.

Subsequent Events

3 Months Ended

Mar. 31, 2024

Subsequent Events [Abstract]

SUBSEQUENT EVENTS

24. SUBSEQUENT EVENTS

The Company has evaluated subsequent events through the date of the issuance of the condensed consolidated financial statements and no subsequent event is identified.

Pay vs Performance Disclosure - USD ($)	3 Months Ended
Pay vs Performance Disclosure - USD ($)	Mar. 31, 2024	Mar. 31, 2023
Pay vs Performance Disclosure
Net Income (Loss)	$ (3,327,208)	$ (2,176,464)

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	Mar. 31, 2024
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

Accounting Policies, by Policy (Policies)

3 Months Ended

Mar. 31, 2024

Summary of Significant Accounting Policies [Abstract]

Basis of presentation

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 March 31, 2024 and the results of operations and cash flows for the periods ended March 31, 2024 and 2023. 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 months ended March 31, 2024 are not necessarily indicative of the results to be expected for any subsequent periods or for the entire year ending December 31, 2024. The balance sheet at December 31, 2023 has been derived from the audited financial statements at that date.

Our contractual arrangements with the VIE and their respective shareholders allow us to (i) exercise effective control over the VIE, (ii) receive substantially all of the economic benefits of the VIE, and (iii) have an exclusive option to purchase all or part of the equity interests in the VIE when and to the extent permitted by PRC law.

As a result of our direct ownership in our wholly owned subsidiary and the contractual arrangements with the VIE, we are regarded as the primary beneficiary of the VIE, and we treat it and its subsidiaries as our consolidated affiliated entities under U.S. GAAP. We have consolidated the financial results of the VIE in our condensed consolidated financial statements in accordance with U.S. GAAP

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 our audited financial statements and notes thereto for the year ended December 31, 2023 as included in our Annual Report on Form 10-K.

Discontinued Operations

Discontinued Operations

On June 16, 2023, QR (HK) Limited was dissolved and deregistered.

On December 5, 2023, FTFT PARAGUAY S.A. was dissolved.

On March 7, 2024, Chain Cloud Mall Network and Technology (Tianjin) Co., Limited was dissolved and deregistered.

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.

Segment Information Reclassification

Segment Information Reclassification

The Company classified business segment into supply chain financing and trading and asset management services, and others.

Uses of Estimates in the Preparation of Financial Statements

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 not limited to, the allowance for doubtful receivable, 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 our 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 amounted $3.97 million, and it had negative operating cash flows amounted $8.15 million as of March 31, 2024. These factors raise substantial doubts about the Company’s ability to continue as a going concern. The Company has raised funds through issuance of convertible notes and common stock.

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.

Research and development

Research and development

Research and development expenses include salaries, contracted services, as well as the related expenses for our research and product development team, and expenditures relating to our efforts to develop, design, and enhance our service to our clients. The Company expenses research and development costs as they are incurred.

Impairment of Long-Lived Assets

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

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.

Our cash and cash equivalents and restricted cash and short-term investments are classified within level 1 of the fair value hierarchy because they are value using quoted market price.

Earnings (Loss) Per Share

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.

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.

As of March 31, 2024:

		Income				Share				Pre-share amount

Loss from continued operations attributable to Future Fintech Group, Inc.		$	(3,972,645	)			19,867,249			$	(0.20	)
Income from discontinued operations attributable to Future Fintech Group, Inc.			645,437				19,867,249				0.03

Basic EPS:
Loss to common stockholders from continuing operations			(3,972,645	)			19,867,249				(0.20	)
Income available to common stockholders from discontinued operations		$	645,437				19,867,249			$	0.03

Dilutive EPS:

Warrants			-				42,108				-
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 continued operations attributable to Future Fintech Group, Inc.			(3,972,645	)			19,909,357				(0.20	)
Diluted earnings per share is calculated by taking net loss, divided by the diluted weighted average common shares outstanding from discontinued operations			645,437				19,909,357				0.03

As of March 31, 2023:

		Income				Share				Pre-share amount

Loss from continued operations attributable to Future Fintech Group, Inc.		$	(2,068,136	)			14,645,653			$	(0.14	)
Income from discontinued operations attributable to Future Fintech Group, Inc.			(108,328	)			14,645,653				(0.01	)

Basic EPS:
Loss to common stockholders from continuing operations			(2,068,136	)			14,645,653				(0.14	)
Loss available to common stockholders from discontinued operations		$	(108,328	)			14,645,653			$	(0.01	)

Dilutive EPS:

Warrants			-				210,526
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 continued operations attributable to Future Fintech Group, Inc.			(2,068,136	)			14,856,179				(0.14	)
Diluted loss per share is calculated by taking net loss, divided by the diluted weighted average common shares outstanding from discontinued operations			(108,328	)			14,856,179				(0.01	)

Cash and Cash Equivalents

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 RMB500,000, in the HK are only insured by the government up to HKD500,000, in the United Kingdom are only insured by the government up to GBP18,000, in the United States of America are only insured by the Federal Deposit Insurance Corporation up to USD250,000, and are consequently exposed to risk of loss.

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 consolidated balance sheets, and is not included in the total cash and cash equivalents in the consolidated statements of cash flows.

Receivable and Allowances

Receivable and Allowances

Accounts receivable are recognized and carried at the original invoice amounts less an allowance for any uncollectible amount. We have a policy of reserving for uncollectible accounts based on our best estimate of the amount of probable credit losses in our existing accounts receivable. We perform ongoing credit evaluations of our customers and maintain 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 any uncollectible amount. We have a policy of reserving for uncollectible accounts based on our best estimate of the amount of probable impairment losses in our existing receivable.

Allowances for doubtful accounts 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 “Bad debt expense” in the consolidated statements of comprehensive income. We determine 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, we use 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. We may also record a general allowance as necessary.

Direct write-offs are taken in the period when we have exhausted our efforts to collect overdue and unpaid receivable or otherwise evaluate other circumstances that indicate that we should abandon such efforts.

The Company has assessed its accounts receivable including credit term and corresponding all its accounts receivables as of March 31, 2024. Bad debt expense was $794,355 and $16,826 during the three months ended March 31, 2024 and 2023, respectively. Accounts receivables of $1.79 million and $0.97 million have been outstanding for over 90 days as of March 31, 2024 and December 31, 2023, respectively.

Revenue Recognition

Revenue Recognition

We apply 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. We assess 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. We allocate 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.

We do not make any significant judgment in evaluating when control is transferred. Revenue is recorded net of value-added tax.

Revenue recognitions are as follows:

Sales of coals, aluminum ingots, sand and steel

The Company recognize 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 was $0.40 million and nil during the three months ended March 31, 2024 and 2023, respectively.

Sales agent services for coals, aluminum ingots, sand and steel

For the sale of third-party products where the Company obtains control of the product before transferring it to the customer, the Company recognizes revenue based on the gross amount billed to customers. The Company considers multiple factors when determining whether it obtains control of third-party products, including evaluating if it can establish the price of the product, retains inventory risk for tangible products or has the responsibility for ensuring acceptability of the product. The Company recognizes net revenue from sales agent service fees of coals, aluminum ingots, sand and steel when no control obtained throughout the transactions. Revenue was $0.04 million and $0.11 million during the three months ended March 31, 2024 and 2023, respectively.

Asset Management Service

The Company recognizes service revenue when a service is rendered, the Company issues bills to its customers and recognizes revenue according to the bills.

Property, Plant and Equipment

Property, Plant and Equipment

Property, plant 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 consolidated statements of income and comprehensive income.

Depreciation related to property, plant and equipment used in production is reported in cost of sales, and includes amortized amounts related to capital leases. We estimated that the residual value of the Company’s property and equipment ranges from 3% to 5%. Property, plant and equipment are depreciated over their estimated useful lives as follows:

Machinery and equipment		5-10 years
Building		30 years
Furniture and office equipment		3-5 years
Motor vehicles		5 years

Intangible Assets

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 ten year, which is determined by using the time period that an intangible is estimated to contribute directly or indirectly to a Company’s future cash flows.

Foreign Currency and Other Comprehensive Income (Loss)

Foreign Currency and Other Comprehensive Income (Loss)

The financial statements of the Company’s foreign subsidiaries and VIE 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 historical exchange rate.

The exchange rate we used to convert RMB to USD was 7.10:1 and 7.08:1 at the balance sheet dates of March 31, 2024 and December 31, 2023, respectively. The average exchange rate for the period has been used to translate revenues and expenses. The average exchange rates we used to convert RMB to USD were 7.10:1 and 6.67:1 for three months ended March 31, 2024 and 2023, respectively.

The exchange rate we used to convert HKD to USD was 7.83:1 and 7.82:1 at the balance sheet dates of March 31, 2024 and December 31, 2023. The average exchange rate for the period has been used to translate revenues and expenses. The average exchange rates we used to convert HKD to USD were 7.82:1 and 7.84:1 for three months ended March 31, 2024 and 2023, respectively.

The exchange rate we used to convert GBP to USD was 0.79:1 and 0.78:1 at the balance sheet dates of March 31, 2024 and December 31, 2023. The average exchange rate for the period has been used to translate revenues and expenses. The average exchange rates we used to convert GBP to USD were 0.79:1 and 0.82:1 for three months ended March 31, 2024 and 2023, respectively.

The exchange rate we used to convert AED to USD was 3.66:1 and 3.66:1 at the balance sheet dates of March 31, 2024 and December 31, 2023. The average exchange rate for the period has been used to translate revenues and expenses. The average exchange rates we used to convert AED to USD were 3.67:1 and 3.67:1 for three months ended March 31 2024 and 2023, respectively.

The exchange rate we used to convert PYG to USD was 7393.74:1 and 7298.63:1 at the balance sheet dates of March 31, 2024 and December 31, 2023. The average exchange rate for the period has been used to translate revenues and expenses. The average exchange rate we used to convert PYG to USD was 7290.28:1 and 7275.55:1 for three months ended March 31 2024 and 2023, respectively.

Translation adjustments are reported separately and accumulated in a separate component of equity (cumulative translation adjustment).

Government subsidies

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 consolidated statements 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.

Income Taxes

We use 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. We have no material uncertain tax positions for any of the reporting periods presented.

Goodwill

The Company tests goodwill for impairment for its reporting units on an annual basis, or when events occur or circumstances indicate the fair value of a reporting unit is below its carrying value. If the fair value of a reporting unit is less than its carrying value, an impairment loss is recorded to the extent that implied fair value of the goodwill within the reporting unit is less than its carrying value.

The Company’s evaluation of goodwill for impairment involves the comparison of the fair value of the reporting unit to its carrying value. The Company uses the discounted cash flow model to estimate fair value, which requires management to make significant estimates and assumptions related to forecasts of future revenue and operating margin. In addition, the discounted cash flow model requires the Company to select an appropriate weighted average cost of capital based on current market conditions as of March 31, 2024 and December 31, 2023. A high degree of auditor judgment and an increased extent of effort were required when performing audit procedures to evaluate the reasonableness of management’s estimates and assumptions related to the forecasts. Based upon the assessment, the Company has concluded that goodwill was nil as of March 31, 2024 and December 31, 2023.

Short-term investments

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 March 31, 2024 and December 31, 2023, the short-term investments amounted to nil and $0.96 million, respectively. On March 5, 2024, the Company sold the short – term investments at the amount of $0.95 million, investment loss $0.01 million. Due to fluctuations of the quoted shares included in its investment portfolios, the Company unrealized holding gains on available-for-sale securities of nil and $0.18 million on March 31, 2024 and 2023.

Lease

We adopted ASU No. 2016-02, Leases (Topic 842), or ASC 842, from January 1, 2020. We determine if an arrangement is a lease or contains a lease at lease inception. For operating leases, we recognize 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 consolidated balance sheets at commencement date. As most of our leases do not provide an implicit rate, we estimate our 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. Our leases often include options to extend and lease terms include such extended terms when we are reasonably certain to exercise those options. Lease terms also include periods covered by options to terminate the leases when we are reasonably certain not to exercise those options.

Share-based compensation

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

New Accounting Pronouncements

In June 2016, the FASB issued ASU No. 2016-13 (“ASU 2016-13”) “Financial Instruments - Credit Losses” (“ASC 326”): Measurement of Credit Losses on Financial Instruments” which requires the measurement and recognition of expected credit losses for financial assets held at amortized cost. ASU 2016-13 replaces the existing incurred loss impairment model with an expected loss model which requires the use of forward-looking information to calculate credit loss estimates. It also eliminates the concept of other-than-temporary impairment and requires credit losses related to available-for-sale debt securities to be recorded through an allowance for credit losses rather than as a reduction in the amortized cost basis of the securities. These changes will result in earlier recognition of credit losses. In November 2019, the FASB issued ASU 2019-10 “Financial Instruments – Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842)” (“ASC 2019-10”), which defers the effective date of ASU 2016-13 to fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, for public entities which meet the definition of a smaller reporting company. The Company adopt ASU 2016-13 effective January 1, 2023. Management adopted of ASU 2016-13 on the consolidated financial statements. The effect will largely depend on the composition and credit quality of our investment portfolio and the economic conditions at the time of adoption.

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 consolidated financial statements.

Summary of Significant Accounting Policies (Tables)

3 Months Ended

Mar. 31, 2024

Summary of Significant Accounting Policies [Abstract]

Schedule of Numerators and Denominators Used in the Computations of Basic and Diluted EPS

The numerators and denominators used in the computations of basic and diluted EPS are presented in the following table.

		Income				Share				Pre-share amount

Loss from continued operations attributable to Future Fintech Group, Inc.		$	(3,972,645	)			19,867,249			$	(0.20	)
Income from discontinued operations attributable to Future Fintech Group, Inc.			645,437				19,867,249				0.03

Basic EPS:
Loss to common stockholders from continuing operations			(3,972,645	)			19,867,249				(0.20	)
Income available to common stockholders from discontinued operations		$	645,437				19,867,249			$	0.03

Dilutive EPS:

Warrants			-				42,108				-
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 continued operations attributable to Future Fintech Group, Inc.			(3,972,645	)			19,909,357				(0.20	)
Diluted earnings per share is calculated by taking net loss, divided by the diluted weighted average common shares outstanding from discontinued operations			645,437				19,909,357				0.03

		Income				Share				Pre-share amount

Loss from continued operations attributable to Future Fintech Group, Inc.		$	(2,068,136	)			14,645,653			$	(0.14	)
Income from discontinued operations attributable to Future Fintech Group, Inc.			(108,328	)			14,645,653				(0.01	)

Basic EPS:
Loss to common stockholders from continuing operations			(2,068,136	)			14,645,653				(0.14	)
Loss available to common stockholders from discontinued operations		$	(108,328	)			14,645,653			$	(0.01	)

Dilutive EPS:

Warrants			-				210,526
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 continued operations attributable to Future Fintech Group, Inc.			(2,068,136	)			14,856,179				(0.14	)
Diluted loss per share is calculated by taking net loss, divided by the diluted weighted average common shares outstanding from discontinued operations			(108,328	)			14,856,179				(0.01	)

Schedule of Property, Plant and Equipment are Depreciated Estimated Useful Lives

Property, plant and equipment are depreciated over their estimated useful lives as follows:

Machinery and equipment		5-10 years
Building		30 years
Furniture and office equipment		3-5 years
Motor vehicles		5 years

Accounts Receivable (Tables)

3 Months Ended

Mar. 31, 2024

Accounts Receivable [Abstract]

Schedule of Accounts Receivable, Net

Accounts receivable, net consist of the following:

		March 31,				December 31,
		2024				2023

Supply Chain Financing/Trading		$	1,848,841			$	3,251,822
Asset management service		$	1,858,231			$	1,250,613
Others		$	911,789			$	1,203,442
Total accounts receivable, net		$	4,618,861			$	5,705,877

Schedule of Concentration of Accounts Receivable Net of Specific Allowance for Doubtful Accounts

The following table sets forth our concentration of accounts receivable, net of specific allowances for doubtful accounts.

		March 31,				December 31,
		2024				2023

Debtor A			32.58	%			21.11	%
Debtor B			19.93	%			15.35	%
Debtor C			9.91	%			15.25	%
Total accounts receivable, net			62.42	%			51.71	%

Other Current Assets (Tables)

3 Months Ended

Mar. 31, 2024

Other Current Assets [Abstract]

Schedule of Other Current Assets

The amount of other current assets consisted of the followings:

		March 31,				December 31,
		2024				2023

Prepayments for Supply Chain Financing/Trading		$	4,016,482			$	2,743,539
Prepaid expenses			9,823,422				29,694
Deposit			3,246,774				-
Others			1,304,741				1,064,519
Total		$	18,391,419			$	3,837,752

Acquisition (Tables)

3 Months Ended

Mar. 31, 2024

Acquisition [Abstract]

Schedule of Estimated Fair Values of Net Assets Acquired and Liabilities Assumed

The following table summarizes the allocation of estimated fair values of net assets acquired and liabilities assumed:

Accounts receivable		$	1,526,360
Other current assets			171,038
Property, plant and equipment, net			1,458
Intangible assets			127,846
Right of use assets			8,875
Lease liability-current			(8,875	)
Accounts payable			(4,123,903	)
Accrued expenses and other payables			(552,484	)
Net identifiable assets acquired		$	(2,849,685	)
Add: goodwill			172,213
Total purchase price for acquisition net of $4,679,434 of cash		$	(2,677,472	)

Leases (Tables)

3 Months Ended

Mar. 31, 2024

Leases [Abstract]

Schedule of Maturities of Lease Liabilities

Maturities of lease liabilities were as follows:

		Operating
As of March 31,		Lease
From April 1, 2024 to March 31, 2025		$	435,223
From April 1, 2025 to March 31, 2026			254,858
From April 1, 2026 to March 31, 2027			241,275
From April 1, 2027 to March 31, 2028			200,526
From April 1, 2028 to March 31, 2029			83,553
Total		$	1,215,435
Less: amounts representing interest		$	86,998
Present Value of future minimum lease payments			1,128,437
Less: Current obligations			382,172
Long term obligations		$	746,265

Property and Equipment (Tables)

3 Months Ended

Mar. 31, 2024

Property and Equipment [Abstract]

Schedule of Property and Equipment

Property and equipment consist of the following:

		March 31,				December 31,
		2024				2023

Office equipment, fixtures and furniture		$	638,345			$	633,936
Vehicle			728,201				730,998
Building			162,328				146,053
Subtotal			1,528,874				1,510,987
Less: accumulated depreciation and amortization			(778,667	)			(716,828	)
Construction in progress			3,863,806				3,790,623
Impairment			(5,584	)			(5,594	)
Total		$	4,608,429			$	4,579,188

Intangible Assets (Tables)

3 Months Ended

Mar. 31, 2024

Intangible Assets Disclosure [Abstract]

Schedule of Intangible Assets

Intangible assets consist of the following:

		March 31,				December 31,
		2024				2023

Trademarks		$	128,619				847
System and software			2,506,301				2,730,549
Subtotal			2,634,920				2,731,396
Less: accumulated depreciation and amortization			(318,934	)			(311,131	)
Less: impairment			(1,741,438	)			(1,831,283	)
Total		$	574,548			$	588,982

Schedule of Estimated Amortization

The estimated amortization is as follows:

As of March 31,		Estimated amortization expense
From April 1, 2024 to March 31, 2025		$	57,035
From April 1, 2025 to March 31, 2026			57,035
From April 1, 2026 to March 31, 2027			57,035
From April 1, 2027 to March 31, 2028			57,035
From April 1, 2028 to March 31, 2029			57,035
Thereafter			161,600
Total		$	446,775

Account Payables (Tables)

3 Months Ended

Mar. 31, 2024

Account Payables [Abstract]

Schedule of Account Payables

The amount of account payables were consisted of the followings:

		March 31,				December 31,
		2024				2023

Supply Chain Financing/Trading payment		$	118,274			$	728,010
Others			2,127,013				2,592,051
Total		$	2,245,287			$	3,320,061

Accrued Expenses and Other Payables (Tables)

3 Months Ended

Mar. 31, 2024

Accrued Expenses and Other Payables [Abstract]

Schedule of Accrued Expenses and Other Payables

The amount of accrued expenses and other payables consisted of the followings:

		March 31,				December 31,
		2024				2023

Legal fee and other professionals		$	1,055,018			$	832,263
Wages and employee reimbursement			165,550				509,288
Provision for legal case			10,598,380				8,875,265
Suppliers			841,874				731,521
Accruals			528,562				1,049,144
Total		$	13,189,384			$	11,997,481

Convertible Notes Payable (Tables)

3 Months Ended

Mar. 31, 2024

Convertible Notes Payable [Abstract]

Schedule of Convertible Debt

The amount of convertible notes payable consisted of the followings:

		March 31,				December 31,
		2024				2023

Beginning		$	1,100,723			$	-
Addition			-				1,100,723
Interest expenses			21,940				-
Payment			-				-
Conversion			-				-
Balance		$	1,122,663			$	1,100,723

Related Party Transaction (Tables)

3 Months Ended

Mar. 31, 2024

Related Party Transaction [Abstract]

Schedule of Due to Related Parties

As of March 31, 2024, the amounts due to the related parties were consisted of the followings:

Name		Amount (US$)				Relationship		Note
Chan Siu Kei			431,757			NTAM’s Director		Other payables, interest free and payment on demand.
JKNDC Ltd			114,996			A company owned by the minority shareholder of NTAM		Other payables, interest free and payment on demand.
Total		$	546,753

Name		Amount				Relationship		Note
Chao Li		$	73,893			Corporate legal representative		Other payables, interest free and payment on demand.
Ming Yi			29,513			Chief Financial Officer of the Company		Accrued expenses, interest free and payment on demand.
Xiaochen Zhao			124			Corporate legal representative		Accrued expenses, interest free and payment on demand.
Chan Siu Kei			401,516			NTAM’s Director		Other payables, interest free and payment on demand.
Total		$	505,046

Schedule of Due from Related Parties

As of March 31, 2024, the amounts due from the related parties were consisted of the followings:

Name		Amount (US$)				Relationship		Note
Xiaochen Zhao			929			Corporate legal representative		Prepaid expenses, interest free and payment on demand.
Hu Li			20,000			Corporate Secretary		Prepaid expenses, interest free and payment on demand.
Chao Li			2,115			Corporate legal representative		Prepaid expenses, interest free and payment on demand.
Ming Yi			63,788			Chief Financial Officer of the Company		Prepaid expenses, interest free and payment on demand.
Total		$	86,832

Name		Amount				Relationship		Note
Kai Xu		$	12,151			Deputy General Manager of a subsidiary of the Company		Loan receivables*, interest free and payment on demand.
Total		$	12,151

*

The related party transactions have been approved by the Company’s Audit Committee.

Schedule of Due from Related Parties

During three months ended March 31, 2024, the Company had the following transactions with related parties:

Name		Amount				Relationship		Note
JKNDC Limited		$	1,918			A company owned by the minority shareholder of NTAM		Other expenses
JKNDC Limited			135,640			A company owned by the minority shareholder of NTAM		Cost of revenue- Asset management service
Nice Talent Partner Limited			115,087			A company owned by the minority shareholder of NTAM		Consultancy fee

Name		Amount				Relationship		Note
JKNDC Limited		$	1,914			A company owned by the minority shareholder of NTAM		Other expenses
JKNDC Limited			361,958			A company owned by the minority shareholder of NTAM		Cost of revenue- Asset management service
Alpha Yield Limited			178,913			A director of the Company is a shareholder of this company		Consultancy fee
Nice Talent Partner Limited			76,542			A company owned by the minority shareholder of NTAM		Consultancy fee

Income Tax (Tables)

3 Months Ended

Mar. 31, 2024

Income Tax [Abstract]

Schedule of Statutory EIT Rate Applicable to Profits of the Consolidated Entities and the Income Tax Expenses

Reconciliation of the differences between the statutory EIT rate applicable to profits of the consolidated entities and the income tax expenses of the Company:

		March 31, 2024				March 31, 2023

Loss before taxation		$	(3,969,066	)		$	(2,113,475	)
PRC statutory tax rate			25	%			25	%
Computed expected benefits			(992,267	)			(528,369	)
Others, primarily the differences in tax rates			263,975				50,866
Deferred tax assets losses not recognized			728,292				503,177
Total		$	-			$	25,674

Discontinued Operations (Tables)

3 Months Ended

Mar. 31, 2024

Discontinued Operations [Abstract]

Schedule of Loss from Discontinued Operations

Loss from discontinued operations for the three months ended March 31, 2024 and 2023 was as follows:

		December 31,				March 31,
		2024				2023
REVENUES		$	-			$	29,515
COST OF SALES			-				23,494
GROSS PROFIT			-				6,021

OPERATING EXPENSES:
General and administrative			-				102,572
Research and Development expenses			-				2,724
Selling expenses			-				5,277
Total			-				110,573

OTHER INCOME (EXPENSE)
Interest income			-				4
Interest expense			-				(2,842	)
Other expense			-				(938	)
Total			-				(3,776	)
Loss from discontinued operations before income tax			-				(108,328	)
Income tax provision			-				-
Loss from discontinued operation before noncontrolling interest		$	-				-
Gain on disposal of discontinued operations			645,437				-
Less: Net loss attributable to non-controlling interests			-				-
INCOME (LOSS) FROM DISCONTINUED OPERATION		$	645,437			$	(108,328	)

Schedule of Loss from Discontinued Operations

The major components of assets and liabilities related to discontinued operations are summarized below:

			December 31, 2024				December 31, 2023
Cash and cash equivalents		$	-			$	-
Total assets related to discontinued operations		$	-			$	-
Total liabilities related to discontinued operations		$	-			$	-

Segment Reporting (Tables)

3 Months Ended

Mar. 31, 2024

Segment Reporting [Abstract]

Schedule of Segment Gross Profit Reportable Segment

As of March 31, 2024:

		Supply Chain Financing/ Trading				Asset management service				Others				Total
Reportable segment revenue		$	441,764			$	4,372,870			$	308,333			$	5,122,967
Inter-segment loss			-				-				-				-
Revenue from external customers			441,764				4,372,870				308,333				5,122,967
Segment gross profit		$	44,073			$	1,676,704			$	230,495			$	1,951,272

		Supply Chain Financing/ Trading				Asset management service				Others				Total
Reportable segment revenue		$	110,798			$	3,163,064			$	90,588			$	3,364,450
Inter-segment loss			-				-				-				-
Revenue from external customers			110,798				3,163,064				90,588				3,364,450
Segment gross profit		$	105,854			$	1,056,307			$	39,455			$	1,201,616

Schedule of Segment Assets

Loss before Income Tax:

		Three months Ended, March 31
		2024				2023
Supply chain financing/trading			208,580				219,179
Asset management service			1,617,278				782,177
Others			1,276,117				(7,467	)
Corporate and Unallocated			2,818,363				2,321,202
Total operating expenses and other expense			5,920,338				3,315,091
Loss before Income Tax			(3,969,066	)			(2,113,475	)

		March 31, 2024				December 31, 2023
Supply chain financing/trading			12,365,266				12,437,136
Asset management service			4,367,036				3,640,811
Others			20,084,577				23,855,261
Corporate and Unallocated			23,093,573				21,007,542
Total assets			59,910,452				60,940,750

Corporate Information (Details)	Oct. 30, 2023 HKD ($)	Jan. 26, 2023 $ / shares shares	Mar. 31, 2024 $ / shares shares	Dec. 31, 2023 $ / shares shares
Entity Information [Line Items]
Common stock, shares authorized			60,000,000	60,000,000
Common stock par value (in Dollars per share) \| $ / shares			$ 0.001	$ 0.001
Preferred shares as authorized but not issued		10,000,000
Alpha International Securities (HONG KONG) [Member]
Entity Information [Line Items]
Incorporated amount (in Dollars) \| $	$ 14,010,421
Maximum [Member]
Entity Information [Line Items]
Common stock, shares authorized		300,000,000
Minimum [Member]
Entity Information [Line Items]
Common stock, shares authorized		60,000,000
Board of Director [Member]
Entity Information [Line Items]
Reverse stock split authorized		607.10025
Common Stock [Member]
Entity Information [Line Items]
Common stock par value (in Dollars per share) \| $ / shares		$ 0.001

Summary of Significant Accounting Policies (Details)		3 Months Ended
Summary of Significant Accounting Policies (Details)	Mar. 05, 2024 USD ($)	Mar. 31, 2024 USD ($)	Mar. 31, 2023 USD ($)	Mar. 31, 2024 HKD ($)	Mar. 31, 2024 CNY (¥)	Mar. 31, 2024 GBP (£)	Dec. 31, 2023 USD ($)
Summary of Significant Accounting Policies [Line Items]
Operating losses (in Dollars)		$ (3,969,066)	$ (2,139,149)
Operating activities (in Dollars)		(8,154,503)	(10,273,671)
Insured by government				$ 500,000	¥ 500,000	£ 18,000
Federal deposit insurance corporation (in Dollars)		250,000
Bad debt expense (in Dollars)		794,355	16,826
Accounts receivables (in Dollars)		1,790,000					$ 970,000
Revenue (in Dollars)		40,000.00	110,000
Short-term investments (in Dollars)							$ 959,028
Investment loss (in Dollars)	$ 10,000.00	(12,058)
Unrealized holding gains on available-for-sale securities (in Dollars)			$ 180,851
Minimum [Member]
Summary of Significant Accounting Policies [Line Items]
Property and equipment ranges		3.00%		3.00%	3.00%	3.00%
Maximum [Member]
Summary of Significant Accounting Policies [Line Items]
Property and equipment ranges		5.00%		5.00%	5.00%	5.00%
Intangible assets useful life		10 years		10 years	10 years	10 years
RMB [Member]
Summary of Significant Accounting Policies [Line Items]
Exchange rate		7.1	6.67	7.1	7.1	7.1	7.08
GBP [Member] \| Minimum [Member]
Summary of Significant Accounting Policies [Line Items]
Exchange rate		0.79		0.79	0.79	0.79
GBP [Member] \| Maximum [Member]
Summary of Significant Accounting Policies [Line Items]
Exchange rate			0.82
GBP [Member]
Summary of Significant Accounting Policies [Line Items]
Average exchange rate			3.67
PYG [Member]
Summary of Significant Accounting Policies [Line Items]
Exchange rate		7,290.28	7,275.55	7,290.28	7,290.28	7,290.28
PYG [Member] \| Minimum [Member]
Summary of Significant Accounting Policies [Line Items]
Exchange rate		7,393.74		7,393.74	7,393.74	7,393.74
PYG [Member] \| Maximum [Member]
Summary of Significant Accounting Policies [Line Items]
Exchange rate							7,298.63
Goodwill [Member]
Summary of Significant Accounting Policies [Line Items]
Goodwill (in Dollars)
Foreign Currency and Other Comprehensive Income (Loss) [Member] \| RMB [Member]
Summary of Significant Accounting Policies [Line Items]
Exchange rate		7.83		7.83	7.83	7.83	7.82
Foreign Currency and Other Comprehensive Income (Loss) [Member] \| GBP [Member]
Summary of Significant Accounting Policies [Line Items]
Exchange rate							3.66
Average exchange rate		3.67		3.67	3.67	3.67
Foreign Currency and Other Comprehensive Income (Loss) [Member] \| GBP [Member] \| Minimum [Member]
Summary of Significant Accounting Policies [Line Items]
Exchange rate		3.66		3.66	3.66	3.66
VIE [Member] \| RMB [Member] \| Minimum [Member]
Summary of Significant Accounting Policies [Line Items]
Exchange rate		7.82		7.82	7.82	7.82
VIE [Member] \| RMB [Member] \| Maximum [Member]
Summary of Significant Accounting Policies [Line Items]
Exchange rate			7.84
VIE [Member] \| GBP [Member]
Summary of Significant Accounting Policies [Line Items]
Exchange rate		0.79		0.79	0.79	0.79	0.78
Sales Agent Services of Coals, Aluminum Ingots, Sand and Steel [Member]
Summary of Significant Accounting Policies [Line Items]
Revenue (in Dollars)		$ 400,000
Exchange rate		7.1		7.1	7.1	7.1
Short-Term Investments [Member]
Summary of Significant Accounting Policies [Line Items]
Short-term investments (in Dollars)	$ 0.95						$ 960,000
Unrealized holding gains on available-for-sale securities (in Dollars)			$ 180,000

Summary of Significant Accounting Policies (Details) - Schedule of Numerators and Denominators Used in the Computations of Basic and Diluted EPS - USD ($)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Schedule of Numerators and Denominators Used in the Computations of Basic And Diluted Eps [Abstract]
Loss from continued operations, Income	$ (3,972,645)	$ (2,068,136)
Loss from continued operations, Share	19,867,249	14,645,653
Loss from continued operations, Pre-share amount	$ (0.2)	$ (0.14)
Income from discontinuing operations, Income	$ 645,437	$ (108,328)
Income from discontinuing operations, Share	19,867,249	14,645,653
Income from discontinuing operations, Pre-share amount	$ 0.03	$ (0.01)
Basic EPS:
Loss to common stockholders from continuing operations, Income	$ (3,972,645)	$ (2,068,136)
Loss to common stockholders from continuing operations, Share	19,867,249	14,645,653
Loss to common stockholders from continuing operations, Pre-share amount	$ (0.2)	$ (0.14)
Income (loss) available to common stockholders from discontinuing operations, Income	$ 645,437	$ (108,328)
Income (loss) available to common stockholders from discontinuing operations, Share	19,867,249	14,645,653
Income (loss) available available to common stockholders from discontinuing operations, Pre-share amount	$ 0.03	$ (0.01)
Warrants, Income
Warrants, Share	42,108	210,526
Warrants, Pre-share amount
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 continued operations attributable to Future Fintech Group, Inc., Income	$ (3,972,645)	$ (2,068,136)
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 continued operations attributable to Future Fintech Group, Inc., Share	19,909,357	14,856,179
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 continued operations attributable to Future Fintech Group, Inc., Pre-share amount	$ (0.2)	$ (0.14)
Diluted earnings (loss) per share is calculated by taking net loss, divided by the diluted weighted average common shares outstanding from discontinued operations , Income	$ 645,437	$ (108,328)
Diluted earnings (loss) per share is calculated by taking net loss, divided by the diluted weighted average common shares outstanding from discontinued operations, Share	19,909,357	14,856,179
Diluted earnings (loss) per share is calculated by taking net loss, divided by the diluted weighted average common shares outstanding from discontinued operations, Pre-share amount	$ 0.03	$ (0.01)

Summary of Significant Accounting Policies (Details) - Schedule of Property, Plant and Equipment are Depreciated Estimated Useful Lives	Mar. 31, 2024
Building [Member]
Public Utility, Property, Plant and Equipment [Line Items]
Estimated useful lives	30 years
Motor vehicles [Member]
Public Utility, Property, Plant and Equipment [Line Items]
Estimated useful lives	5 years
Minimum [Member] \| Machinery and equipment [Member]
Public Utility, Property, Plant and Equipment [Line Items]
Estimated useful lives	5 years
Minimum [Member] \| Furniture and office equipment [Member]
Public Utility, Property, Plant and Equipment [Line Items]
Estimated useful lives	3 years
Maximum [Member] \| Machinery and equipment [Member]
Public Utility, Property, Plant and Equipment [Line Items]
Estimated useful lives	10 years
Maximum [Member] \| Furniture and office equipment [Member]
Public Utility, Property, Plant and Equipment [Line Items]
Estimated useful lives	5 years

Accounts Receivable (Details) - Schedule of Accounts Receivable, Net - USD ($)	Mar. 31, 2024	Dec. 31, 2023
Schedule of Accounts Receivable, Net [Line Items]
Total accounts receivable, net	$ 4,618,861	$ 5,705,877
Supply Chain Financing/Trading [Member]
Schedule of Accounts Receivable, Net [Line Items]
Total accounts receivable, net	1,848,841	3,251,822
Asset management service [Member]
Schedule of Accounts Receivable, Net [Line Items]
Total accounts receivable, net	1,858,231	1,250,613
Others [Member]
Schedule of Accounts Receivable, Net [Line Items]
Total accounts receivable, net	$ 911,789	$ 1,203,442

Accounts Receivable (Details) - Schedule of Concentration of Accounts Receivable Net of Specific Allowance for Doubtful Accounts - Debtor Concentration Risk [Member] - Accounts Receivable [Member]	3 Months Ended	12 Months Ended
	Mar. 31, 2024	Dec. 31, 2023
Debtor A [Member]
Concentration Risk [Line Items]
Total accounts receivable, net	32.58%	21.11%
Debtor B [Member]
Concentration Risk [Line Items]
Total accounts receivable, net	19.93%	15.35%
Debtor C [Member]
Concentration Risk [Line Items]
Total accounts receivable, net	9.91%	15.25%
Debtor [Member]
Concentration Risk [Line Items]
Total accounts receivable, net	62.42%	51.71%

Note Receivables (Details) ¥ in Thousands	Mar. 31, 2024 USD ($)	Mar. 31, 2024 CNY (¥)	Dec. 31, 2023 USD ($)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Note receivable	$ 650,000	¥ 4,600
Third Party [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Note receivable	$ 650,000

Other Receivables (Details) - USD ($) $ in Thousands	3 Months Ended
Other Receivables (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023	Dec. 06, 2023	Feb. 03, 2023	Jan. 31, 2023	Apr. 22, 2022
Other receivables [Line Items]
Other receivables	$ 100	$ 10,050
Deposit			$ 2,500	$ 2,400
Related Party [Member]
Other receivables [Line Items]
Deposit paid and prepayments	$ 1,220
Hong Kong [Member]
Other receivables [Line Items]
Deposit			2,000
Electricity Sales and Purchase Agreement [Member]
Other receivables [Line Items]
Deposit					$ 1,860	$ 1,860
Resale of Electricity [Member]
Other receivables [Line Items]
Deposit					$ 70
Mobile Software Application Development Agreement [Member]
Other receivables [Line Items]
Deposit			4,000
Augmented Reality Group Development and Service Agreement [Member]
Other receivables [Line Items]
Deposit			$ 5,000

Loan Receivables (Details) $ in Thousands, ¥ in Millions				3 Months Ended
Loan Receivables (Details) $ in Thousands, ¥ in Millions	May 13, 2024 USD ($)	Apr. 17, 2023 USD ($)	Apr. 17, 2023 CNY (¥)	Mar. 31, 2024 USD ($)	Dec. 31, 2023 USD ($)	Dec. 08, 2023 USD ($)	Dec. 08, 2023 CNY (¥)	Jul. 14, 2022 USD ($)	Jul. 14, 2022 CNY (¥)	Mar. 10, 2022 USD ($)
Loan Receivables [Line Items]
Loan receivables				$ 14,880
Annual interest rate						5.00%	5.00%
Loan receivables term description				July 15, 2022 to July 14, 2024
Received repayment amount \| ¥			¥ 35
Repayment of loans \| ¥			15
FTFT HK [Member]
Loan Receivables [Line Items]
Loan receivables					$ 14,900					$ 5,000
Annual interest rate										10.00%
Loan receivables term description				March 10, 2022 to September 9, 2024
Received repayment amount		$ 2,160
FUCE Future Supply Chain (Xi’an) Co., Ltd. [Member]
Loan Receivables [Line Items]
Received repayment amount	$ 2,160
Future Private Equity Fund Management (Hainan) Co., Limited One [Member]
Loan Receivables [Line Items]
Loan receivables						$ 4,940	¥ 35	$ 7,050	¥ 50
Annual interest rate						5.00%	5.00%	8.00%	8.00%
Loan receivables term description				July 15, 2022 to July 14, 2024
Received repayment amount		4,930	35
Repayment of loans		2,120
Future Private Equity Fund Management (Hainan) Co., Limited [Member]
Loan Receivables [Line Items]
Loan receivables								$ 7,280	¥ 50
Annual interest rate						5.00%	5.00%	8.00%	8.00%
Received repayment amount		5,090
Repayment of loans		$ 2,110	¥ 15
Loan Agreement [Member]
Loan Receivables [Line Items]
Loan receivables						$ 4,930	¥ 35
Loan receivables term description				December 8, 2023 to December 8, 2024
Future FinTech (Hong Kong) [Member]
Loan Receivables [Line Items]
Loan receivables						$ 5,000
Annual interest rate						5.00%	5.00%
Loan receivables term description				December 8, 2022 to December 8, 2024
FTFT HK One [Member]
Loan Receivables [Line Items]
Loan receivables										$ 5,000
Annual interest rate										10.00%
Future Fin Tech (Hong Kong) Limited [Member] \| Future Private Equity Fund Management (Hainan) Co., Limited One [Member]
Loan Receivables [Line Items]
Loan receivables term description				December 8, 2023 to December 8, 2024
Future Fin Tech (Hong Kong) Limited [Member] \| Loan Agreement [Member]
Loan Receivables [Line Items]
Loan receivables						$ 5,000

Short - Term Investments (Details)		3 Months Ended		12 Months Ended
Short - Term Investments (Details)	Mar. 05, 2024 USD ($)	Mar. 31, 2024 USD ($)	Mar. 31, 2023 USD ($)	Dec. 31, 2023 USD ($)	Sep. 06, 2021 USD ($)	Sep. 06, 2021 CNY (¥)
Short - Term Investments (Details) [Line Items]
Short term investments				$ 959,028
Investment loss	$ 10,000.00	$ (12,058)
Short-Term Investments [Member]
Short - Term Investments (Details) [Line Items]
Short term investments	950,000
Investment loss	$ 10,000.00
Shanghai Yuli Enterprise Management [Member]
Short - Term Investments (Details) [Line Items]
Short term investments				980,000
Shanghai Yuli Enterprise Management Consulting Firm [Member]
Short - Term Investments (Details) [Line Items]
Equity fund invests					$ 1,870,000	¥ 13,000,000
Investments [Member]
Short - Term Investments (Details) [Line Items]
Impairment to the investment				$ 12,633

Other Current Assets (Details) - USD ($)	Mar. 31, 2024	Mar. 08, 2024	Dec. 31, 2023	Dec. 06, 2023	Feb. 03, 2023
Other Current Assets [Line Items]
Prepaid expenses	$ 9,820,000
Cash deposit third party amount	3,246,774				$ 2,400,000
Cash deposit remaining amount		$ 2,580,000
Other receivables	100,000		$ 10,050,000.00
Prepayments to Third Party [Member]
Other Current Assets [Line Items]
Other receivables	$ 340,000
HONG KONG
Other Current Assets [Line Items]
Cash deposit third party amount				$ 4,000,000
Initial cash deposit				2,000,000
HONG KONG \| Augmented Reality Group Development and Service Agreement [Member]
Other Current Assets [Line Items]
Cash deposit third party amount				5,080,000.00
Initial cash deposit				$ 2,500,000

Other Current Assets (Details) - Schedule of Other Current Assets - USD ($)	Mar. 31, 2024	Dec. 31, 2023	Feb. 03, 2023
Schedule of Other Current Assets [Line Items]
Prepayments for Supply Chain Financing/Trading	$ 4,016,482	$ 2,743,539
Prepaid expenses	9,823,422	29,694
Deposit	3,246,774		$ 2,400,000
Others	1,304,741	1,064,519
Total	$ 18,391,419	$ 3,837,752

Acquisition (Details)			12 Months Ended
Acquisition (Details)	Oct. 30, 2023 USD ($)	Oct. 30, 2023 HKD ($)	Dec. 31, 2023 USD ($)
Acquisition [Line Items]
Equity interest price	$ 1,791,174	$ 14,010,421
Net gain (loss)			$ 5,080
FTFT International Securities and Futures Limited [Member]
Acquisition [Line Items]
Net sales			294,437
Future information service (Shenzhen) Co., Ltd [Member]
Acquisition [Line Items]
Net sales			1,390
Alpha Information Services (Shenzhen) Co., Ltd [Member]
Acquisition [Line Items]
Equity interest price	$ 210,788	$ 1,649,528
Alpha Information Services (Shenzhen) Co., Ltd [Member]
Acquisition [Line Items]
Net gain (loss)			$ 88,408
Alpha International Securities (Hong Kong) Limited [Member] \| Business Combination [Member]
Acquisition [Line Items]
Equity interest	100.00%	100.00%
Alpha Information Services (Shenzhen) Co., Ltd [Member]
Acquisition [Line Items]
Equity interest	100.00%	100.00%

Acquisition (Details) - Schedule of Estimated Fair Values of Net Assets Acquired and Liabilities Assumed - Alpha Information Services (Shenzhen) Co., Ltd [Member]	Mar. 31, 2024 USD ($)
Schedule of Estimated Fair Values of Net Assets Acquired and Liabilities Assumed [Line Items]
Accounts receivable	$ 1,526,360
Other current assets	171,038
Property, plant and equipment, net	1,458
Intangible assets	127,846
Right of use assets	8,875
Lease liability-current	(8,875)
Accounts payable	(4,123,903)
Accrued expenses and other payables	(552,484)
Net identifiable assets acquired	(2,849,685)
Add: goodwill	172,213
Total purchase price for acquisition net of cash	$ (2,677,472)

Acquisition (Details) - Schedule of Estimated Fair Values of Net Assets Acquired and Liabilities Assumed (Parentheticals)	3 Months Ended
	Mar. 31, 2024 USD ($)
Alpha Information Services (Shenzhen) Co., Ltd [Member]
Schedule of Estimated Fair Values of Net Assets Acquired and Liabilities Assumed [Line Items]
Acquisition net of cash	$ 4,679,434

Leases (Details)	3 Months Ended
Leases (Details)	Mar. 31, 2024 USD ($)
Leases [Abstract]
Operating lease cost	$ 180,000
Remaining lease term	53 months
Weighted average remaining lease term	3 years 6 months 21 days
Weighted average discount rate	4.75%
Short term leases cost	$ 1,979

Leases (Details) - Schedule of Maturities of Lease Liabilities - USD ($)	Mar. 31, 2024	Dec. 31, 2023
Schedule of Maturities of Lease Liabilities [Abstract]
From April 1, 2024 to March 31, 2025	$ 435,223
From April 1, 2025 to March 31, 2026	254,858
From April 1, 2026 to March 31, 2027	241,275
From April 1, 2027 to March 31, 2028	200,526
From April 1, 2028 to March 31, 2029	83,553
Total	1,215,435
Less: amounts representing interest	86,998
Present Value of future minimum lease payments	1,128,437
Less: Current obligations	382,172	$ 498,736
Long term obligations	$ 746,265	$ 797,344

Property and Equipment (Details) - USD ($)	3 Months Ended
Property and Equipment (Details) - USD ($)	Mar. 31, 2024	Mar. 31, 2023
Property and Equipment [Line Items]
Depreciation expense	$ 66,859	$ 71,397
Depreciation expense cost of sales	0	0
General and Administrative Expense [Member]
Property and Equipment [Line Items]
Depreciation expense	$ 66,859	$ 71,397

Property and Equipment (Details) - Schedule of Property and Equipment - USD ($)	Mar. 31, 2024	Dec. 31, 2023
Schedule of Property and Equipment [Line Items]
Property and equipment, gross	$ 1,528,874	$ 1,510,987
Less: accumulated depreciation and amortization	(778,667)	(716,828)
Construction in progress	3,863,806	3,790,623
Impairment	(5,584)	(5,594)
Total	4,608,429	4,579,188
Office equipment, fixtures and furniture [Member]
Schedule of Property and Equipment [Line Items]
Property and equipment, gross	638,345	633,936
Vehicle [Member]
Schedule of Property and Equipment [Line Items]
Property and equipment, gross	728,201	730,998
Building [Member]
Schedule of Property and Equipment [Line Items]
Property and equipment, gross	$ 162,328	$ 146,053

Intangible Assets (Details) - USD ($)	3 Months Ended
Intangible Assets (Details) - USD ($)	Mar. 31, 2024	Mar. 31, 2023
Intangible Assets [Abstract]
Amortization expense	$ 14,259	$ 14,259
Amortization expense	0	$ 0
Amortization amount	$ 127,773

Intangible Assets (Details) - Schedule of Intangible Assets - USD ($)	Mar. 31, 2024	Dec. 31, 2023
Schedule of Intangible Assets [Line Items]
Subtotal	$ 2,634,920	$ 2,731,396
Less: accumulated depreciation and amortization	(318,934)	(311,131)
Less: impairment	(1,741,438)	(1,831,283)
Total	574,548	588,982
Trademarks [Member]
Schedule of Intangible Assets [Line Items]
Subtotal	128,619	847
System and software [Member]
Schedule of Intangible Assets [Line Items]
Subtotal	$ 2,506,301	$ 2,730,549

Intangible Assets (Details) - Schedule of Estimated Amortization	Mar. 31, 2024 USD ($)
Schedule of Estimated Amortization [Abstract]
From April 1, 2024 to March 31, 2025	$ 57,035
From April 1, 2025 to March 31, 2026	57,035
From April 1, 2026 to March 31, 2027	57,035
From April 1, 2027 to March 31, 2028	57,035
From April 1, 2028 to March 31, 2029	57,035
Thereafter	161,600
Total	$ 446,775

Account Payables (Details) - Schedule of Account Payables - USD ($)	Mar. 31, 2024	Dec. 31, 2023
Schedule of Account Payables [Abstract]
Supply Chain Financing/Trading payment	$ 118,274	$ 728,010
Others	2,127,013	2,592,051
Total	$ 2,245,287	$ 3,320,061

Accrued Expenses and Other Payables (Details) - USD ($)	Apr. 16, 2024	Apr. 11, 2024	Apr. 11, 2024
Subsequent Event [Member]
Accrued Expenses and Other Payables (Details) [Line Items]
Judgment awarding amount		$ 8,875,265
Forecast [Member]
Accrued Expenses and Other Payables (Details) [Line Items]
Judgment award	$ 10,598,379.93		$ 8,875,265.31
Damages	7,895,265.31
Prejudgment interest	1,723,114.62
Attorney’s fees	$ 980,000

Accrued Expenses and Other Payables (Details) - Schedule of Accrued Expenses and Other Payables - USD ($)	Mar. 31, 2024	Dec. 31, 2023
Schedule of Accrued Expenses and Other Payables [Abstract]
Legal fee and other professionals	$ 1,055,018	$ 832,263
Wages and employee reimbursement	165,550	509,288
Provision for legal case	10,598,380	8,875,265
Suppliers	841,874	731,521
Accruals	528,562	1,049,144
Total	$ 13,189,384	$ 11,997,481

Convertible Notes Payable (Details) - Schedule of Convertible Debt - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Schedule of Convertible Debt [Abstract]
Beginning	$ 1,100,723
Addition			1,100,723
Interest expenses	21,940
Payment
Conversion
Balance	$ 1,122,663		$ 1,100,723

Related Party Transaction (Details) - Schedule of Due to Related Parties - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2024	Dec. 31, 2023
Chan Siu Kei [Member]
Related Party Transaction [Line Items]
Amount	$ 431,757	$ 401,516
Relationship	NTAM’s Director	NTAM’s Director
Note	Other payables, interest free and payment on demand.	Other payables, interest free and payment on demand.
JKNDC Ltd [Member]
Related Party Transaction [Line Items]
Amount	$ 114,996
Relationship	A company owned by the minority shareholder of NTAM
Note	Other payables, interest free and payment on demand.
Related Party [Member]
Related Party Transaction [Line Items]
Amount	$ 546,753	$ 505,046
Chao Li [Member]
Related Party Transaction [Line Items]
Amount		$ 73,893
Relationship		Corporate legal representative
Note	Prepaid expenses, interest free and payment on demand.	Other payables, interest free and payment on demand.
Ming Yi [Member]
Related Party Transaction [Line Items]
Amount		$ 29,513
Relationship		Chief Financial Officer of the Company
Note	Prepaid expenses, interest free and payment on demand.	Accrued expenses, interest free and payment on demand.
Xiaochen Zhao [Member]
Related Party Transaction [Line Items]
Amount		$ 124
Relationship		Corporate legal representative
Note	Prepaid expenses, interest free and payment on demand.	Accrued expenses, interest free and payment on demand.

Related Party Transaction (Details) - Schedule of Due from Related Parties - USD ($)

3 Months Ended

12 Months Ended

Mar. 31, 2024

Dec. 31, 2023

Xiaochen Zhao [Member]

Related Party Transaction [Line Items]

$ 929

Corporate legal representative

Prepaid expenses, interest free and payment on demand.

Accrued expenses, interest free and payment on demand.

Related Party Transaction [Line Items]

$ 20,000

Corporate Secretary

Prepaid expenses, interest free and payment on demand.

Chao Li [Member]

Related Party Transaction [Line Items]

$ 2,115

Corporate legal representative

Prepaid expenses, interest free and payment on demand.

Other payables, interest free and payment on demand.

Ming Yi [Member]

Related Party Transaction [Line Items]

$ 63,788

Chief Financial Officer of the Company

Prepaid expenses, interest free and payment on demand.

Accrued expenses, interest free and payment on demand.

Related Party [Member]

Related Party Transaction [Line Items]

$ 86,832

$ 12,151

Kai Xu [Member]

Related Party Transaction [Line Items]

^[1]

$ 12,151

^[1]

Deputy General Manager of a subsidiary of the Company

^[1]

Loan receivables*, interest free and payment on demand.

[1]	The related party transactions have been approved by the Company’s Audit Committee.

Related Party Transaction (Details) - Schedule of Company Transactions with Related Parties - USD ($)	3 Months Ended	9 Months Ended
	Mar. 31, 2024	Sep. 30, 2023
JKNDC Limited [Member]
Related Party Transaction [Line Items]
Amount	$ 1,918	$ 1,914
Relationship	A company owned by the minority shareholder of NTAM	A company owned by the minority shareholder of NTAM
Note	Other expenses	Other expenses
JKNDC Limited [Member]
Related Party Transaction [Line Items]
Amount	$ 135,640	$ 361,958
Relationship	A company owned by the minority shareholder of NTAM	A company owned by the minority shareholder of NTAM
Note	Cost of revenue- Asset management service	Cost of revenue- Asset management service
Nice Talent Partner Limited [Member]
Related Party Transaction [Line Items]
Amount	$ 115,087	$ 76,542
Relationship	A company owned by the minority shareholder of NTAM	A company owned by the minority shareholder of NTAM
Note	Consultancy fee	Consultancy fee
Alpha Yield Limited [Member]
Related Party Transaction [Line Items]
Amount		$ 178,913
Relationship		A director of the Company is a shareholder of this company
Note		Consultancy fee

Income Tax (Details) ¥ in Millions	3 Months Ended
Income Tax (Details) ¥ in Millions	Mar. 31, 2024 USD ($)	Mar. 31, 2024 CNY (¥)	Mar. 31, 2023 USD ($)
Income Tax [Line Items]
Tax rate	25.00%	25.00%
Current income tax expenses (in Dollars) \| $			$ 25,674
Pre tax profits percentage	10.00%	10.00%
Enterprise income tax rate	25.00%	25.00%
PRC Enterprise Income Tax Law [Member]
Income Tax [Line Items]
Pre-tax profits \| $	$ 3,000,000
Pre tax profits percentage	25.00%	25.00%
Minimum [Member]
Income Tax [Line Items]
Pre-tax profits		¥ 1
PRC Enterprise Income Tax Law [Member]
Income Tax [Line Items]
Pre tax profits percentage	2.50%	2.50%
PRC Enterprise Income Tax Law [Member] \| Minimum [Member]
Income Tax [Line Items]
Pre-tax profits		¥ 1
PRC Enterprise Income Tax Law [Member] \| Maximum [Member]
Income Tax [Line Items]
Pre-tax profits		¥ 3
Future Big Data [Member]
Income Tax [Line Items]
Tax rate	2.50%	2.50%	10.00%
United States of America [Member]
Income Tax [Line Items]
Tax rate	21.00%	21.00%	21.00%
Hong Kong [Member] \| Maximum [Member]
Income Tax [Line Items]
Tax rate	16.50%	16.50%
United Kingdom [Member]
Income Tax [Line Items]
Tax rate	19.00%	19.00%
United Arab Emirates [Member]
Income Tax [Line Items]
Tax rate
British Virgin Island [Member]
Income Tax [Line Items]
Tax rate

Income Tax (Details) - Schedule of Statutory EIT Rate Applicable to Profits of the Consolidated Entities and the Income Tax Expenses - USD ($)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Income Tax [Abstract]
Loss before taxation	$ (3,969,066)	$ (2,113,475)
PRC statutory tax rate	25.00%	25.00%
Computed expected benefits	$ (992,267)	$ (528,369)
Others, primarily the differences in tax rates	263,975	50,866
Deferred tax assets losses not recognized	728,292	503,177
Total		$ 25,674

Share Based Compensation (Details) $ / shares in Units, $ in Thousands			3 Months Ended
	Dec. 23, 2023 $ / shares	Feb. 01, 2023 shares	Mar. 31, 2024 USD ($) shares	Sep. 30, 2023 USD ($)	Mar. 31, 2024 CNY (¥) shares	Dec. 31, 2023 shares	Oct. 12, 2023 $ / shares shares	Jan. 26, 2023 shares	Aug. 04, 2021 $ / shares
Share Based Compensation [Line Items]
Reverse stock split		1-for-5
Authorized shares of common stock			60,000,000		60,000,000	60,000,000
Net income percentage		10.00%
Payment dividends percentage			50.00%
Restriction amounted			$ 24,830		¥ 176,144,932
Share price (in Dollars per share) \| $ / shares									$ 5
Maximum [Member]
Share Based Compensation [Line Items]
Authorized shares of common stock								300,000,000
Minimum [Member]
Share Based Compensation [Line Items]
Authorized shares of common stock								60,000,000
2020 Omnibus Equity Plan [Member]
Share Based Compensation [Line Items]
Stock price (in Dollars per share) \| $ / shares	$ 1.2
Expenses (in Dollars) \| $				$ 3,470
2020 Omnibus Equity Plan [Member] \| Board of Directors [Member]
Share Based Compensation [Line Items]
Granted shares of common stock							2,890,000
2020 Omnibus Equity Plan [Member] \| Common Stock [Member]
Share Based Compensation [Line Items]
Share price (in Dollars per share) \| $ / shares							$ 0.001
Common Stock [Member] \| Maximum [Member]
Share Based Compensation [Line Items]
Authorized shares of common stock		300,000,000
Common Stock [Member] \| Minimum [Member]
Share Based Compensation [Line Items]
Authorized shares of common stock		60,000,000

Common Stock (Details)									3 Months Ended
Common Stock (Details)	Jan. 18, 2024 shares	Jan. 05, 2024 USD ($) $ / shares shares	Oct. 17, 2023 USD ($) shares	Oct. 17, 2023 shares	Aug. 06, 2021 HKD ($)	Aug. 04, 2021 USD ($) $ / shares shares	Dec. 29, 2020 $ / shares shares	Dec. 24, 2020 USD ($) $ / shares shares	Mar. 31, 2024 USD ($) $ / shares shares	Mar. 31, 2023 USD ($)
Common Stock [Line Items]
Shares issued							4,210,530	4,210,530
Purchase price, per share (in Dollars per share) \| $ / shares		$ 1.2						$ 1.9
Purchase price			$ 7,390,000		$ 144,000,000	$ 11,220,000			$ 2,580,643
Exercise price per share (in Dollars per share) \| $ / shares									$ 2.375
Issued and outstanding, percentage					90.00%
Purchase price percentage						60.00%
Shares of common stock			299,221	299,221
price per share (in Dollars per share) \| $ / shares						$ 5
Purchase, price percentage				40.00%
Sale of stock units		2,150,536
Common stock, par value (in Dollars per share) \| $ / shares		$ 0.001
Aggregate net proceeds (in Dollars) \| $		$ 2,580,644
Common stock, shares issued	2,150,536
Securities Purchase Agreement [Member]
Common Stock [Line Items]
Purchase price \| $								$ 8,000,007
Warrant [Member]
Common Stock [Line Items]
Shares issued							4,210,530
Exercise price per share (in Dollars per share) \| $ / shares							$ 2.15
Placement Agent Warrants [Member]
Common Stock [Line Items]
Shares issued									210,526
Common Stock [Member]
Common Stock [Line Items]
Shares issued								1
Shares of common stock						2,244,156
Common Stock [Member] \| Securities Purchase Agreement [Member]
Common Stock [Line Items]
Warrant outstanding									42,108

Discontinued Operations (Details) - Schedule of Loss from Discontinued Operations - USD ($)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Schedule of Loss from Discontinued Operations [Abstract]
REVENUES		$ 29,515
COST OF SALES		23,494
GROSS PROFIT		6,021
OPERATING EXPENSES:
General and administrative		102,572
Research and Development expenses		2,724
Selling expenses		5,277
Total		110,573
OTHER INCOME (EXPENSE)
Interest income		4
Interest expense		(2,842)
Other expense		(938)
Total		(3,776)
Loss from discontinued operations before income tax		(108,328)
Income tax provision
Loss from discontinued operation before noncontrolling interest
Gain on disposal of discontinued operations	645,437
Less: Net loss attributable to non-controlling interests
INCOME (LOSS) FROM DISCONTINUED OPERATION	$ 645,437	$ (108,328)

Discontinued Operations (Details) - Schedule of Assets and Liabilities Related to Discontinued Operations - USD ($)	Dec. 31, 2024	Dec. 31, 2023
Discontinued Operations (Details) - Schedule of Assets and Liabilities Related to Discontinued Operations [Line Items]
Cash and cash equivalents
Total assets related to discontinued operations
Total liabilities related to discontinued operations
Forecast [Member]
Discontinued Operations (Details) - Schedule of Assets and Liabilities Related to Discontinued Operations [Line Items]
Cash and cash equivalents
Total assets related to discontinued operations
Total liabilities related to discontinued operations

Segment Reporting (Details)	3 Months Ended
Segment Reporting (Details)	Mar. 31, 2024
Segment Reporting [Abstract]
Number of reporting segments	3

Segment Reporting (Details) - Schedule of Segment Gross Profit Reportable Segment - USD ($)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Segment Reporting Information [Line Items]
Reportable segment revenue	$ 5,122,967	$ 3,364,450
Inter-segment loss
Revenue from external customers	5,122,967	3,364,450
Segment gross profit	1,951,272	1,201,616
Supply Chain Financing/Trading [Member]
Segment Reporting Information [Line Items]
Reportable segment revenue	441,764	110,798
Inter-segment loss
Revenue from external customers	441,764	110,798
Segment gross profit	44,073	105,854
Asset Management Services [Member]
Segment Reporting Information [Line Items]
Reportable segment revenue	4,372,870	3,163,064
Inter-segment loss
Revenue from external customers	4,372,870	3,163,064
Segment gross profit	1,676,704	1,056,307
Others [Member]
Segment Reporting Information [Line Items]
Reportable segment revenue	308,333	90,588
Inter-segment loss
Revenue from external customers	308,333	90,588
Segment gross profit	$ 230,495	$ 39,455

Segment Reporting (Details) - Schedule of Segment Assets - USD ($)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Segment Reporting Information [Line Items]
Loss before Income Tax	$ (3,969,066)	$ (2,113,475)
Total assets	59,910,452		$ 60,940,750
Supply Chain Financing/Trading [Member]
Segment Reporting Information [Line Items]
Loss before Income Tax	208,580	219,179
Total assets	12,365,266		12,437,136
Asset Management Services [Member]
Segment Reporting Information [Line Items]
Loss before Income Tax	1,617,278	782,177
Total assets	4,367,036		3,640,811
Others [Member]
Segment Reporting Information [Line Items]
Loss before Income Tax	1,276,117	(7,467)
Total assets	20,084,577		23,855,261
Corporate and Unallocated [Member]
Segment Reporting Information [Line Items]
Loss before Income Tax	2,818,363	2,321,202
Total assets	23,093,573		$ 21,007,542
Operating expenses and other expense [Member]
Segment Reporting Information [Line Items]
Loss before Income Tax	$ 5,920,338	$ 3,315,091

Commitments and Contingencies (Details) - USD ($)			3 Months Ended
Commitments and Contingencies (Details) - USD ($)	Apr. 16, 2024	Apr. 11, 2024	Mar. 31, 2024
Loss Contingencies [Line Items]
Damages and attorneys’ fees			$ 7,000,000
Forecast [Member]
Loss Contingencies [Line Items]
Damages and attorneys’ fees	$ 7,895,265.31
Judgment award	10,598,379.93	$ 8,875,265.31
prejudgment interest	1,723,114.62
Attorney’s fees	$ 980,000

Risks and Uncertainties (Details) - Customer Concentration Risk [Member] - Revenue Benchmark [Member]	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Customers One [Member]
Risks And Uncertainties [Line Items]
Concentration risk percentage	78.25%	85.53%
Vendor one [Member]
Risks And Uncertainties [Line Items]
Concentration risk percentage	20.94%	35.48%
Vendor two [Member]
Risks And Uncertainties [Line Items]
Concentration risk percentage	19.02%	16.37%
Vendor three [Member]
Risks And Uncertainties [Line Items]
Concentration risk percentage	13.59%	12.28%
Vendor four [Member]
Risks And Uncertainties [Line Items]
Concentration risk percentage		11.28%

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Notícias Future FinTech Group Inc

Form 10-Q - Quarterly report [Sections 13 or 15(d)]
Segunda, 20 de Maio de 2024 (2 semanas atrás) • Edgar (US Regulatory)

Form NT 10-Q - Notification of inability to timely file Form 10-Q or 10-QSB
Quarta, 15 de Maio de 2024 (3 semanas atrás) • Edgar (US Regulatory)

Future FinTech Enters into New Bitcoin Mining Hosting Agreement for its Cryptocurrency Farm in Norwalk, Ohio
Terça, 30 de Abril de 2024 (1 mês atrás) • PR Newswire (US)

Future FinTech Enters into Bitcoin Mining Hosting Agreement for its Cryptocurrency Farm in Norwalk, Ohio
Terça, 26 de Março de 2024 (2 meses atrás) • PR Newswire (US)

Form SC 13D - General statement of acquisition of beneficial ownership
Quinta, 22 de Fevereiro de 2024 (3 meses atrás) • Edgar (US Regulatory)

Form 8-K - Current report
Quarta, 14 de Fevereiro de 2024 (4 meses atrás) • Edgar (US Regulatory)

Shanchun Huang Responds to SEC Allegations
Quarta, 17 de Janeiro de 2024 (5 meses atrás) • PR Newswire (US)

Future FinTech Responds to Inquiry of CEO
Terça, 16 de Janeiro de 2024 (5 meses atrás) • PR Newswire (US)

Form 8-K - Current report
Segunda, 8 de Janeiro de 2024 (5 meses atrás) • Edgar (US Regulatory)

Form D - Notice of Exempt Offering of Securities
Segunda, 8 de Janeiro de 2024 (5 meses atrás) • Edgar (US Regulatory)

Form 8-K - Current report
Quinta, 4 de Janeiro de 2024 (5 meses atrás) • Edgar (US Regulatory)

Form 4 - Statement of changes in beneficial ownership of securities
Terça, 2 de Janeiro de 2024 (5 meses atrás) • Edgar (US Regulatory)

Mais Notícias de Future FinTech Group Inc

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