What changed in this filing

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Item 2. Management’s Discussion and Analysis

2024-12-23 compared with 2024-12-12 · 141 added, 86 removed, 3 unchanged (99% of the section changed)

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

following discussion and analysis of financial condition and results of operations should be read in conjunction with our financial statements

and related notes included elsewhere in this report.

This discussion contains forward-looking statements that involve risks, uncertainties

and assumptions.

See “Cautionary Note Regarding Forward-Looking Statements.” Our actual results could differ materially from

those anticipated in the forward-looking statements as a result of certain factors discussed elsewhere in this report.

Technology Holdings Inc (formerly known as “WeTrade Group, Inc”) was incorporated in the State of Wyoming on March 28, 2019.

DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion and analysis of financial

condition and results of operations should be read in conjunction with our financial statements and related notes included elsewhere

in this report.

This discussion contains forward-looking statements that involve risks, uncertainties and assumptions.

See “Cautionary

Note Regarding Forward-Looking Statements.” Our actual results could differ materially from those anticipated in the forward-looking

statements as a result of certain factors discussed elsewhere in this report.

Next Technology Holding Inc.

(formerly known

as “WeTrade Group Inc.”) was incorporated in the State of Wyoming on March 28, 2019.

We currently pursue two corporate strategies.

One business strategy is to continue providing software development services, and the other

strategy is to acquire and hold bitcoin.

provide AI-enabled software development services to our customers, which include developing, designing, and implementing various SAAS

software solutions for businesses of all types, including industrial and other businesses.

Acquisition Strategy

bitcoin acquisition strategy generally involves acquiring bitcoin with our liquid assets that exceed working capital requirements, and

from time to time, subject to market conditions, issuing debt or equity securities or engaging in other capital raising transactions

with the objective of using the proceeds to purchase bitcoin.

view our bitcoin holdings as long-term holdings and expect to continue to accumulate bitcoin.

We have not set any specific target for

the amount of bitcoin we seek to hold, and we will continue to monitor market conditions in determining whether to engage in additional

financings to purchase additional bitcoin.

overall strategy also contemplates that we may (i) periodically sell bitcoin for general corporate purposes, including to generate cash

for treasury management or in connection with strategies that generate tax benefits in accordance with applicable law, (ii) enter into

additional capital raising transactions that are collateralized by our bitcoin holdings, and (iii) consider pursuing additional strategies

to create income streams or otherwise generate funds using our bitcoin holdings.

believe that, due to its limited supply, bitcoin offers the opportunity for appreciation in value if its adoption increases and has the

potential to serve as a hedge against inflation in the long-term.

of Operations

of Operations for the Six-month Period Ended June 30, 2024 and 2023

following tables provide a comparison of a summary of our results of operations for the six months period ended June 30, 2024 and 2023.

from digital assets

and administrative expenses

profit/ (loss) before income tax

profit/ (loss)

from Operations

the six-month period ended June 30, 2024 and 2023, total revenue were $nil respectively.

Administrative Expenses

the six-month period ended June 30, 2024 and 2023, general and administrative expenses were $675,144 and $302,775 respectively.

is mainly due to increase in BTC consulting fee during the period.

other income of $15,595,778 is mainly due to gain from digital assets during the period.

a result of the factors described above, there was a net profit of $12,619,286 and net loss of $302,775 for the period ended June 30,

2024 and 2023, respectively.

The increase in net profit is mainly due to gain from digital assets during the period.

of Operations for the Three-month Period Ended June 30, 2024 and 2023

following tables provide a comparison of a summary of our results of operations for the three-month period ended June 30, 2024 and 2023.

from digital assets

and administrative expenses

profit/ (loss) before income tax

from Operations

the three-month period ended June 30, 2024 and 2023, total revenue were $nil respectively.

Administrative Expenses

the three-month period ended June 30, 2024 and 2023, general and administrative expenses were $344,999 and $136,480 respectively.

increase is mainly due to increase in BTC consulting fee during the period.

other loss of $8,423,621 is mainly due to loss from digital assets during the period.

a result of the factors described above, there was a net loss of $6,927,209 and net loss of $136,480 for the period ended June 30, 2024

and 2023, respectively.

The increase in net loss is mainly due to loss from digital assets during the period.

and Capital Resources

As of June 30,

2024, we had cash on hand of $668,387.

One business strategy is to continue providing software development services, and the other strategy is to acquire and hold bitcoin.

Software development

We provide AI-enabled software development services

to our customers, which include developing, designing, and implementing various SAAS software solutions for businesses of all types,

including industrial and other businesses.

Bitcoin Acquisition Strategy

Our bitcoin acquisition strategy generally involves

acquiring bitcoin with our liquid assets that exceed working capital requirements, and from time to time, subject to market conditions,

issuing debt or equity securities or engaging in other capital raising transactions with the objective of using the proceeds to purchase

We view our bitcoin holdings as long-term holdings

and expect to continue to accumulate bitcoin.

We have not set any specific target for the amount of bitcoin we seek to hold, and we will

continue to monitor market conditions in determining whether to engage in additional financing to purchase additional bitcoin.

This overall strategy also contemplates that

we may (i) periodically sell bitcoin for general corporate purposes, including to generate cash for treasury management or in connection

with strategies that generate tax benefits in accordance with applicable law, (ii) enter into additional capital raising transactions

that are collateralized by our bitcoin holdings, and (iii) consider pursuing additional strategies to create income streams or otherwise

generate funds using our bitcoin holdings.

We believe that, due to its limited supply, bitcoin

offers the opportunity for appreciation in value if its adoption increases and has the potential to serve as a hedge against inflation

in the long-term.

Results of Operations

Results of Operations for the Nine-month Period

Ended September 30, 2024 and 2023

The following tables provide a comparison of

a summary of our results of operations for the nine-month period ended September 30, 2024 and 2023.

Service revenue

Cost of Revenue

Operating Expenses:

Other income/ (expenses)

(14,406,396 )

General and administrative expenses

Net profit/ (loss) before income tax

(13,714,836 )

Income tax expenses

Net profit/ (loss)

$ (13,714,836 )

Revenue from Operations

the nine-month period ended September 30, 2024 and 2023, total revenue were $nil and $1,500,000 respectively.

The decrease is mainly

due to decrease in AI SAAS revenue during the period.

General and Administrative Expenses

For the nine-month period ended September 30,

2024 and 2023, general and administrative expenses were $1,242,128 and $537,576 respectively.

The increase is mainly due to an

increase in BTC consulting fee and legal fees during the period.

Other Income/ (expenses)

The other income of $17,899,568 is mainly due

to an increase in gain from digital assets during the period as compared to the provision for bad debts of $11,347,054 in prior period.

Net Profit/ (loss)

As a result of the factors described above, there

was a net profit of $13,991,362 and net loss of $13,714,836 for the period ended September 30, 2024 and 2023, respectively.

in net profit is mainly due to gain from digital assets during the period.

Results of Operations for the Three-month Period

Ended September 30, 2024 and 2023

The following tables provide a comparison of

a summary of our results of operations for the three-month period ended September 30, 2024 and 2023.

September 30,

Service revenue

Cost of Revenue

Operating Expenses:

Other income/ (expenses)

(14,406,397 )

General and administrative expenses

Net profit/ (loss) before income tax

(13,412,061 )

Income tax income

$ (13,412,061 )

Revenue from Operations

the three-month period ended September 30, 2024 and 2023, total revenue was $nil and $1,500,000 respectively.

The decrease is mainly

due to decrease in AI SAAS system revenue during the period.

General and Administrative Expenses

For the three-month period ended September 30,

2024 and 2023, general and administrative expenses were $566,983 and $234,800 respectively.

The increase is mainly due to an increase

in BTC consulting fee and legal fees during the period.

Other income/ (expenses)

The other income of $2,303,789 is mainly due

to loss from digital assets during the period.

The other expenses of $14,406,397 were mainly for fair value loss of digital assets of

$3.05 million and provision for bad debts of $11.3 million in prior reporting period.

As a result of the factors described above, there

was a net profit of $1,372,076 and net loss of $13,412,061 for the period ended September 30, 2024 and 2023, respectively.

in net profit is mainly due to loss from digital assets and no provision for bad debts were incurred during the period.

Liquidity and Capital Resources

As of September 30, 2024, we had cash on hand

There is no change in cash held during the period.

As of June 30,

2024, our cash flow used in operating activities is $529 for the period ended June 30, 2024 as compared to the cash flow used in operating

activities of $648,252 in prior period.

The decrease was mainly due to increase in deferred tax liabilities during the period.

Cash provided

by our financing activities was $634 for the period ended June 30, 2024 as compared to cash provided by financing activities of $318,000.

The decrease is mainly due to lesser in shareholders’ advance during the period as compare to the prior period.

does not materially affect our business or the results of our operations.

Sheet Arrangements

do not have any off-balance sheet arrangements.

Accounting Policies

prepare our financial statements in accordance with generally accepted accounting principles of the United States (“GAAP”).

GAAP represents a comprehensive set of accounting and disclosure rules and requirements.

The preparation of our financial statements

requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent

assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting

Our actual results could differ from those estimates.

Operating activities

of September 30, 2024, our cash flow used in operating activities is $81,332 for the period ended September 30, 2024 as compared to the

net cash flow from operating activities of $11,886,808 in

prior period.

The decrease was mainly due to the turnaround of the net profit of $13.9 million from the net losses of $13.7 million in

prior reporting period.

Investing activities

Cash provided used in investing activities was

$nil for the period ended September 30, 2024 as compared to cash used in investing activities of $37,115,500 in prior period.

is mainly due to no digital assets being purchased during the period.

Financing activities

Cash provided by our financing activities was

$81,332 for the period ended September 30, 2024 as compared to cash provided by financing activities of $17,203,894.

The decrease is

mainly due to lesser in shareholders’ advance and no issuance of stock during the period as compared to the prior period.

Inflation does not materially affect our business

or the results of our operations.

Off-Balance Sheet Arrangements

We do not have any off-balance sheet arrangements.

Critical Accounting Policies

We prepare our financial statements in accordance

with generally accepted accounting principles of the United States (“GAAP”).

GAAP represents a comprehensive set of accounting

and disclosure rules and requirements.

The preparation of our financial statements requires management to make estimates and assumptions

that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial

statements, and the reported amounts of revenues and expenses during the reporting period.

Our actual results could differ from those

We use historical data to assist in the forecast of our future results.

Deviations from our projections are addressed when our financials are reviewed on a monthly basis.

This allows us to be proactive in

our approach to managing our business.

It also allows us to rely on proven data rather than having to make assumptions regarding our

Accounting Pronouncements

have reviewed all the recently issued, but not yet effective, accounting pronouncements and we do not believe any of these pronouncements

will have a material impact on the Company financial statements.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

are a “smaller reporting company” as defined by Item 10(f)(1) of Regulation S-K, and as such are not required to provide

the information contained in this item pursuant to Item 305 of Regulation S-K.

Deviations from our projections are addressed when

our financials are reviewed on a monthly basis.

This allows us to be proactive in our approach to managing our business.

It also allows

us to rely on proven data rather than having to make assumptions regarding our estimates.

Recent Accounting Pronouncements

We have reviewed all the recently issued, but

not yet effective, accounting pronouncements and we do not believe any of these pronouncements will have a material impact on the Company

financial statements.

QUANTITATIVE AND

QUALITATIVE DISCLOSURES ABOUT MARKET RISK

We are a “smaller reporting company”

as defined by Item 10(f)(1) of Regulation S-K, and as such are not required to provide the information contained in this item pursuant

to Item 305 of Regulation S-K.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q/A

Item 2. Management’s Discussion and Analysis