Next Technology Holdings Inc. (formerly WeTrade Group, Inc.) reported significant financial developments in its 10-Q filing for the period ending September 30, 2024. The company, which focuses on AI-enabled software development and bitcoin acquisition, demonstrated a notable turnaround in profitability compared to the previous fiscal period.

As of September 30, 2024, total current assets increased to $66.0 million from $48.9 million at the end of 2023. Digital assets also saw a substantial rise, reaching $53.0 million, up from $35.1 million. Total assets surged to $79.4 million, reflecting a strong recovery in the company's financial position. The number of common shares outstanding rose dramatically to 6,976,410 from 2,625,130, with a corresponding increase in stockholder equity to $74.1 million, up from $44.7 million.

Revenue for the nine months ended September 30, 2024, was reported at $0, a decline from $1.5 million in the same period of 2023. The company incurred general and administrative expenses of $1.2 million, significantly higher than $537,576 in the prior year. Despite these expenses, Next Technology Holdings achieved a net profit of $14.0 million for the nine months ended September 30, 2024, a stark contrast to a net loss of $13.7 million in the previous year. This increase in profitability was primarily attributed to gains from digital assets, which totaled $17.9 million for the current period.

For the three months ended September 30, 2024, the company reported a net profit of $1.4 million, compared to a net loss of $13.4 million in the same quarter of 2023. Earnings per share from continuing operations improved to $0.20, up from a loss of $9.47 per share in the prior year.

Strategically, the company has been active in its bitcoin acquisition strategy. On September 24, 2024, it entered into an Amended and Restated BTC Trading Contract, allowing for the purchase of up to 5,167 BTC at a price of $30,000 per BTC over a 12-month period. The company plans to finance this acquisition through a combination of cash and the issuance of common stock, which could significantly dilute existing shareholders.

The company also faced legal challenges, including a derivative lawsuit dismissed in October 2023 and ongoing litigation related to loan guarantees. Management has acknowledged weaknesses in internal controls and is planning to implement improvements.

Overall, Next Technology Holdings Inc. has shown a remarkable recovery in profitability and asset value, despite challenges in revenue generation and increased operational expenses.