What changed in this filing

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Item 7. Management’s Discussion and Analysis

2024-05-10 compared with 2023-03-30 · 49 added, 92 removed, 129 unchanged (52% of the section changed)

22 unchanged sentences

purpose of SEATech Ventures (HK) Limited is to become the current regional hub for business activities and to engage in operational functions.

SEATech Ventures (HK) Limited owns 100% of SEATech CVC Sdn Bhd and SEATech Ventures Sdn

Bhd respectively , which both companies are in Malaysia, as part of our business development initiative.

our physical office in in Bangsar South with address 11-05 & 11-06, Tower A, Ave 3 Vertical Business Suite, Jalan Kerinchi, Bangsar

South, 59200 Kuala Lumpur, Wilayah Persekutuan Kuala Lumpur, Malaysia.

SEATech Ventures (HK) Limited owns 100% of SEATech CVC Sdn.

and SEATech Ventures Sdn.

respectively , which both companies are in Malaysia, as part of our business development initiative.

our physical office is in B-23A-02, G-Vestor Tower, Pavilion Embassy, 200, Jalan Ampang, 50450 Kuala

Lumpur, Malaysia.

Group business activities are mainly providing business mentoring services, nurturing and incubation services relating to client businesses

20 unchanged sentences

Company generated revenue of $328,340 and $548,095 for the year ended December 31, 2023 and 2022.

The revenue represented income from

provision of business mentoring, nurturing and incubation services relating to client businesses and corporate development advisory services.

The revenue represented income

from provision of business mentoring, nurturing and incubation services relating to client businesses and corporate development

advisory services.

A decrease of revenue was due to lower revenue deal flow during the year

ended December 31, 2023.

of Revenue and Gross Margin

the year ended December 31, 2023 and 2022, cost incurred in providing corporate development advisory services is $251,700 and

The Company generates gross profits of $94,042 and $75,540 for the year ended December 31, 2022 and 2021.

The decrease of cost of revenue is associated with the decrease in revenue for the year ended December 31, 2023.

Company generates gross profits of $76,640 and $94,042 for the year ended December 31, 2023 and 2022.

and Distribution Expenses

2 unchanged sentences

expenses on website and website maintenance, marketing and networking event.

The decrease of selling and distribution expenses is associated with lesser marketing expenses incurred for the year

ended December 31, 2023.

and Administrative Expenses

2 unchanged sentences

are comprised of salary, professional fee, compliance fee, office and operation expenses.

The increase of general and administrative expenses is mainly due to the provision for credit loss allowance for

the year ended December 31, 2023.

Company recorded an amount of $0 and $1,936 as other income for the year ended December 31, 2023 and 2022 respectively.

is derived from the foreign exchange gain.

This income is

derived from the foreign exchange gain.

Loss and Net Loss Margin

The net loss was $94,157 for the year ended December 31, 2022 as compared to $101,650 for the year ended December 31, 2021.

in net loss of $7,493 was contributed to the higher revenue generated for the year ended December 31, 2022.

Taking into the loss for the

year ended December 31, 2022, the accumulated loss for the Company has increased from $499,923 to $594,080.

The net loss was $302,829 for the year ended December 31, 2023 as compared

to $94,157 for the year ended December 31, 2022.

The increase in net loss of $208,672 was contributed to the higher general and administrative

expenses incurred for the year ended December 31, 2023.

Taking into the loss for the year ended December 31, 2023, the accumulated loss

for the Company has increased from $594,080 to $896,909.

and Capital Resources

1 unchanged sentence

We expect increased levels of operations going forward will result

in more significant cash flow and in turn working.

in more significant cash flow and in turn working capital.

depend substantially on operating activities to provide us with the liquidity and capital resources we need to meet our working capital

1 unchanged sentence

Used in Operating Activities

For the year ended December 31, 2022 and 2021, net cash used in operating activities was $59,529 and $85,051.

the year ended December 31, 2023 and 2022, net cash used in operating activities was $124,661 and $59,529.

The cash used in operating

2 unchanged sentences

the year ended December 31, 2023, net cash provided by financing activities was $20,000.

For the year ended December 31, 2021, net cash provided

by financing activities was $300.

The financing cash flow performance primarily reflects the borrowing repayment to director.

Provided by / (Used in) Investing Activities

the financial year ended December 31, 2022, the net cash provided by investing activities was $200.

For the year ended December 31, 2022, net cash

provided by financing activities was $0.

The financing cash flow performance primarily reflects the share subscription received in advance.

(Used in) / Provided by Investing Activities

the financial year ended December 31, 2023, the net cash used in investing activities was $650.

For the financial year ended December

31, 2021, the net cash used in investing activities was $4,250.

31, 2022, the net cash provided by investing activities was $200.

The investing cash flow performance primarily reflects the investment

in other companies in the ICT industry.

in other companies.

do not have any credit facilities or other access to bank credit.

Accounting Policies and Estimates

of presentation

consolidated financial statements for SEATech Ventures Corp.

and its subsidiaries for the year ended December 31, 2022 is prepared in

accordance with accounting principles generally accepted in the United States of America (“US GAAP”) and include the accounts

of SEATech Ventures Corp.

and its wholly owned subsidiaries, SEATech Ventures Corp., SEATech Ventures (HK) Limited, SEATech CVC Sdn.

and SEATech Ventures Sdn.

Intercompany accounts and transactions have been eliminated on consolidation.

The Company has adopted

December 31 as its fiscal year end.

of consolidation

consolidated financial statements include the accounts of the Company and its subsidiaries.

All inter-company accounts and transactions

have been eliminated upon consolidation.

uses estimates and assumptions in preparing these financial statements in accordance with US GAAP.

3 unchanged sentences

Actual results may differ from these estimates.

and cash equivalents

and cash equivalents are carried at cost and represent cash on hand, demand deposits placed with banks or other financial institutions

and all highly liquid investments with an original maturity of three months or less as of the purchase date of such investments.

Accounts receivable

Accounts receivable are recorded at the invoiced amount less an allowance

for any uncollectible accounts.

Management reviews the adequacy of the allowance for doubtful accounts on an ongoing basis, using historical

collection trends and aging of receivables.

Management also periodically evaluates individual customer’s financial condition, credit

history and the current economic conditions to make an adjustment to the allowance when it is considered necessary.

Account balances are

charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote.

Accounting Standards Board, or FASB, issued ASC 606.

5 unchanged sentences

ICT and technology-based companies.

of revenue includes the cost of services and product in providing business mentoring, nurturing, incubating and corporate development

advisory services

taxes are determined in accordance with the provisions of ASC Topic 740, “ Income Taxes ” (“ASC Topic 740”).

12 unchanged sentences

being realized upon ultimate settlement with the tax authority assuming full knowledge of the position and relevant facts.

income/(loss) per share

Company calculates net loss per share in accordance with ASC Topic 260 “Earnings per share”.

Basic loss per share is computed

by dividing the net loss by the weighted average number of common shares outstanding during the period.

Diluted loss per share is computed

similar to basic loss per share except that the denominator is increased to include the number of additional common shares that would

have been outstanding if the potential common stock equivalents had been issued and if the additional common shares were dilutive.

currencies translation

2 unchanged sentences

economic environment in which these entities operate.

denominated in currencies other than the functional currency are translated into the functional currency at the exchange rates prevailing

at the dates of the transaction.

Monetary assets and liabilities denominated in currencies other than the functional currency are translated

into the functional currency using the applicable exchange rates at the balance sheet dates.

The resulting exchange differences are recorded

in the statements of operations.

denominated in currencies other than the functional currency are translated into the functional currency at the exchange rates

prevailing at the dates of the transaction.

Monetary assets and liabilities denominated in currencies other than the functional

currency are translated into the functional currency using the applicable exchange rates at the balance sheet dates and the equity accounts are translated at historical rates .

The resulting

exchange differences are recorded in the statements of operations.

general, for consolidation purposes, assets and liabilities of its subsidiary whose functional currency is not the US$ are translated

6 unchanged sentences

of amounts from MYR and HK$ into US$1 has been made at the following exchange rates for the respective periods:

of and for the year ended December 31,

As of and for the year ended December 31,

Year-end MYR :

10 unchanged sentences

considered to be related if they are subject to common control or common significant influence.

value of financial instruments:

carrying value of the Company’s financial instruments:

cash and cash equivalents, accounts payable and accrued liabilities, and

amount due to a director approximate at their fair values because of the short-term nature of these financial instruments.

Company also follows the guidance of the ASC Topic 820-10, “Fair Value Measurements and Disclosures” (“ASC 820-10”),

with respect to financial assets and liabilities that are measured at fair value.

ASC 820-10 establishes a three-tier fair value hierarchy

that prioritizes the inputs used in measuring fair value as follows:

Observable inputs such as quoted prices in active markets;

Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly;

Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions.

accounting pronouncements

Company has reviewed all recently issued, but not yet effective, accounting pronouncements and do not believe the future adoption of

any such pronouncements may be expected to cause a material impact on its financial condition or the results of its operations.

In May 2019, the FASB issued ASU

2019-05, which is an update to ASU Update No.

2016-13, Financial Instruments—Credit Losses (Topic 326):

Measurement of Credit Losses

on Financial Instruments, which introduced the expected credit losses methodology for the measurement of credit losses on financial assets

measured at amortized cost basis, replacing the previous incurred loss methodology.

The amendments in Update 2016-13 added Topic 326,

Financial Instruments—Credit Losses, and made several consequential amendments to the Codification.

The amendments in this Update

address those stakeholders’ concerns by providing an option to irrevocably elect the fair value option for certain financial assets

previously measured at amortized cost basis.

For those entities, the targeted transition relief will increase comparability of financial

statement information by providing an option to align measurement methodologies for similar financial assets.

Furthermore, the targeted

transition relief also may reduce the costs for some entities to comply with the amendments in Update 2016-13 while still providing financial

statement users with decision-useful information.

In November 2019, the FASB issued ASU No.

2019-10, which to update the effective date

2016-13 for private companies, not-for-profit organizations and certain smaller reporting companies applying for credit losses,

leases, and hedging standard.

The new effective date for these preparers is for fiscal years beginning after December 15, 2022.

is effective for the Company for annual and interim reporting periods beginning January 1, 2023 as the Company is qualified as a smaller

reporting company.

The Company is currently evaluating the impact ASU 2019-05 may have on its consolidated financial statements.

Sheet Arrangements

7 unchanged sentences

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-K

Item 7. Management’s Discussion and Analysis