$MTC
MMTEC, INC.
CIK:0001742518|SEC Filings
Consolidated Statements of Cash Flows - USD ($) |
12 Months Ended | ||
|---|---|---|---|
Dec. 31, 2025 |
Dec. 31, 2024 |
Dec. 31, 2023 |
|
| CASH FLOWS FROM OPERATING ACTIVITIES: | |||
| Net (loss) income | $ (56,075,245) | $ (91,168,280) | $ 45,419,381 |
| Less: Net income from discontinued operations | 53,267,761 | ||
| Net loss from continuing operations | (56,075,245) | (91,168,280) | (7,848,380) |
| Adjustments to reconcile net loss from operations to Net cash used in operating activities: | |||
| Depreciation expense | 83,928 | 46,759 | 45,782 |
| Accrued taxes | 24,525 | ||
| Allowance for credit losses - notes receivable | 23,887,304 | 90,236,242 | |
| Allowance for (recovery from) bad debts | 164,800 | (550,000) | |
| Recovery of impairment on long-term investment | (439,111) | ||
| Non-cash lease expense | 403,415 | 422,343 | 395,616 |
| Imputed interest expense on convertible promissory notes | 8,685,630 | 2,272,292 | 4,200,000 |
| Interest income on notes receivable | (1,363,050) | (4,470,940) | (50,301) |
| Foreign currency transaction (gain) loss | 3,376 | (7,252) | (4,723) |
| Loss on sale of notes receivable | 21,292,430 | ||
| Changes in operating assets and liabilities: | |||
| Operating lease liabilities | (426,704) | (430,273) | (398,841) |
| Accounts receivable | 92,040 | 108,302 | |
| Notes receivable | 5,141,058 | ||
| Security deposit | 3,948 | 587 | (431) |
| Prepaid expenses and other current assets | (23,039) | 105,321 | (240,743) |
| Advance from customer | 100,000 | ||
| Salary payable | (142,801) | 28,863 | (62,536) |
| Accrued liabilities and other payables | (122,847) | (1,735,232) | (181,304) |
| NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES FROM CONTINUING OPERATIONS | (3,693,655) | 722,853 | (5,026,670) |
| NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES FROM DISCONTINUED OPERATIONS | (124,838) | ||
| NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES | (3,693,655) | 722,853 | (5,151,508) |
| CASH FLOWS FROM INVESTING ACTIVITIES: | |||
| Purchase of property and equipment | (5,036) | (970) | |
| Proceeds from disposal of property and equipment | 7,771 | ||
| Cash received from return of long-term investment | 439,111 | ||
| Cash paid for business acquisition | (87,083,160) | ||
| Loan repayment from third parties | 634,576 | 878,469 | |
| Cash repayment from notes receivable | 4,000,000 | ||
| Cash proceeds from sale of notes receivable | 5,000,000 | ||
| NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES FROM CONTINUING OPERATIONS | 9,000,000 | 629,540 | (85,758,779) |
| NET CASH USED IN INVESTING ACTIVITIES FROM DISCONTINUED OPERATIONS | (779,770) | ||
| NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES | 9,000,000 | 629,540 | (86,538,549) |
| CASH FLOWS FROM FINANCING ACTIVITIES: | |||
| Proceeds from issuance of convertible promissory notes | 88,000,000 | ||
| Proceeds from short-term loans and other payable | 1,671,750 | ||
| Repayment of short-term loan to third parties | (241,750) | ||
| NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES FROM CONTINUING OPERATIONS | (241,750) | 89,671,750 | |
| NET CASH USED IN FINANCING ACTIVITIES FROM DISCONTINUED OPERATIONS | (5,000) | ||
| NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES | (241,750) | 89,666,750 | |
| EFFECT OF EXCHANGE RATE ON CASH AND CASH EQUIVALENTS | 9,916 | (1,188) | (27,104) |
| NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 5,316,261 | 1,109,455 | (2,050,411) |
| CASH AND CASH EQUIVALENTS - beginning of year | 2,869,241 | 1,759,786 | 3,825,477 |
| CASH AND CASH EQUIVALENTS - end of year | 8,185,502 | 2,869,241 | 1,775,066 |
| LESS: CASH, CASH EQUIVALENTS AND RESTRICTED CASH FROM DISCONTINUED OPERATIONS | 15,280 | ||
| CASH, CASH EQUIVALENTS AND RESTRICTED CASH FROM CONTINUING OPERATIONS | 8,185,502 | 2,869,241 | 1,759,786 |
| Cash paid for: | |||
| Interest | |||
| Income taxes | 36,501 | ||
| NON-CASH INVESTING AND FINANCING ACTIVITIES: | |||
| Acquisition by issuing convertible promissory notes | 7,000,000 | ||
| Conversion of bond and interest to equity | 43,970,960 | 705,000 | 76,770,000 |
| Notes receivable on disposal of Alpha Mind | 153,050,301 | ||
| Operating lease right-of-use assets obtained in exchange for operating lease liabilities | $ 467,080 | $ 213,451 | |
Consolidated Balance Sheets - USD ($) |
Dec. 31, 2025 |
Dec. 31, 2024 |
||
|---|---|---|---|---|
| CURRENT ASSETS: | ||||
| Cash and cash equivalents | $ 8,185,502 | $ 2,869,241 | ||
| Security deposits - Current | 8,089 | 8,040 | ||
| Prepaid expenses and other current assets | 169,716 | 143,265 | ||
| Total current assets | 8,363,307 | 3,020,546 | ||
| NON-CURRENT ASSETS: | ||||
| Security deposits - Non-current | 135,781 | 137,281 | ||
| Property and equipment, net | 2,506 | 85,849 | ||
| Notes receivable | 9,409,560 | 62,226,244 | ||
| Operating lease right-of-use asset | 507,251 | 436,937 | ||
| Total non-current assets | 10,055,098 | 62,886,311 | ||
| Total assets | 18,418,405 | 65,906,857 | ||
| CURRENT LIABILITIES: | ||||
| Salary payable | 194,100 | 335,597 | ||
| Advance from customer | 100,000 | |||
| Accrued liabilities and other payables | 84,399 | 6,601,942 | ||
| Operating lease liabilities - Current | 290,703 | 383,153 | ||
| Total current liabilities | 669,202 | 7,320,692 | ||
| NON-CURRENT LIABILITIES: | ||||
| Operating lease liabilities - Non-current | 180,046 | 41,170 | ||
| Convertible promissory notes | 3,050,000 | 31,941,830 | ||
| Total non-current liabilities | 3,230,046 | 31,983,000 | ||
| Total liabilities | 3,899,248 | 39,303,692 | ||
| Commitments and Contingencies | ||||
| SHAREHOLDERS’ EQUITY: | ||||
| Common shares ($0.08 par value, 625,000,000 shares authorized; 99,587,811 and 25,186,864 shares issued and outstanding at December 31, 2025 and December 31, 2024) | [1] | 7,967,024 | 2,014,949 | |
| Additional paid-in capital | 130,728,219 | 92,709,334 | ||
| Accumulated profits (deficit) | (123,994,872) | (67,919,627) | ||
| Accumulated other comprehensive loss | (181,214) | (201,491) | ||
| Total shareholders’ equity | 14,519,157 | 26,603,165 | ||
| Total liabilities and shareholders’ equity | $ 18,418,405 | $ 65,906,857 | ||
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