WeTrade disclosed that the third quarter financial statements released by WeTrade Group Inc. (“WeTrade” or the “Company”) (NASDAQ:WETG) were not signed and released by the current management of the company. The data disclosed in the statements is not true, as follows:
1. On page 1 of the financial report, the announcement disclosed that the main administrative office area is Room 519, 5th floor, Building T3, Unit 2, Qianhai Excellence Financial Center, Guiwan District, Nanshan District, Shenzhen, China. However, regardless of the company’s announcement or data from Chinese Qichacha, the company has never had any registration information at this address. The actual address of the company is Room 101, 1st floor, Building 8, Courtyard 18, Kechuang 10th Street, Beijing Economic and Technological Development Zone.
2. In the financial report regarding cash and cash equivalents, as of September 30, 2023, the company held cash in bank in the amount of $1,416,885 in the bank, with a US account of 0.In fact, the company’s US bank account deposit is $163.
3. In the financial report, other comprehensive income in the consolidated operating statements is 0. But on July 21, 2023, WeTrade’s wholly-owned subsidiary in China, Yueshang Information Technology (Beijing) Limited., received a cash of 6 million RMB from China’s business and financial services policy.This does not match the announcement that other comprehensive income is 0.
4. The financial statements officially released the BTC strategy, but it did’t disclose the source of funds for the company’s purchase of BTC.
5. According to the financial report, on September 29, 2023, the Company’s Board of Directors passed a resolution to dissolve the operation of WeTrade Information System Limited and its wholly owned subsidiaries, resulting in a gain on disposal of $1,124,675.
In fact, as of September 30th, there are still employees in the Chinese business who have not been paid, and they have not been informed of this news and subsequent processing methods.
6. On page 17 of the financial report, as of September 30, 2023, a total of 2,625,130 shares of issued capital have been issued.But in all public information, as of November 21, 2023, the total share capital is still 1.055 million shares. And as of now, the company has not received any additional funds for stock issuance in any bank account.
7. According to the financial report, the cost of income includes employee wages and employee benefits. However, as of September 30, 2023, the company has not paid any wages to its employees for July, August, or September. How can we determine the cost of income that includes employee wages and employee benefits.
8. The financial report shows that WeTrade launched a new artificial intelligence SAAS business in the third quarter, but did not report to the senior management on the arrangement and distribution of business orientation. Moreover, no description of this new business was presented in the announcement.
9. According to the financial report, as of September 30, 2023, there were no legal proceedings.However, in July 2023, there were still legal lawsuits filed by the company regarding contract disputes, which were also presented in Chinese Qichacha.And meanwhile,The former management, current management, and shareholders have been in multiple lawsuits since September, with the latest hearing date being December 5, 2023.
