GD Culture Group Ltd. Files Q1 2024 10-Q

Ticker: GDC · Form: 10-Q · Filed: May 20, 2024 · CIK: 1641398

Sentiment: neutral

Topics: 10-Q, quarterly-report, company-information

TL;DR

GD Culture Group Ltd. (formerly Code Chain) filed its Q1 2024 10-Q. Based in NY, NV corp.

AI Summary

GD Culture Group Ltd. filed its quarterly report for the period ending March 31, 2024. The company, formerly known as Code Chain New Continent Ltd and TMSR HOLDING Co Ltd, is incorporated in Nevada and headquartered in New York. Its primary business appears to be in wholesale trade, specifically metals and minerals, excluding petroleum.

Why It Matters

This filing provides investors with an update on GD Culture Group Ltd.'s financial performance and operational status for the first quarter of 2024.

Risk Assessment

Risk Level: low — This is a standard quarterly filing providing basic company information and financial reporting, with no immediate red flags apparent in the provided snippet.

Key Players & Entities

FAQ

What is the primary business of GD Culture Group Ltd?

GD Culture Group Ltd. is classified under Standard Industrial Classification 5050, which pertains to Wholesale - Metals, Minerals (no petroleum).

When was GD Culture Group Ltd. previously known by other names?

The company was formerly known as Code Chain New Continent Ltd (name change effective May 18, 2020), TMSR HOLDING Co Ltd (name change effective February 7, 2018), and JM Global Holding Co (name change effective May 5, 2015).

What is the filing date of this 10-Q report?

This 10-Q report was filed on May 20, 2024.

Where is GD Culture Group Ltd. incorporated?

GD Culture Group Ltd. is incorporated in Nevada.

What is the fiscal year end for GD Culture Group Ltd.?

The fiscal year end for GD Culture Group Ltd. is December 31.

Filing Stats: 4,461 words · 18 min read · ~15 pages · Grade level 17.1 · Accepted 2024-05-20 16:15:34

Key Financial Figures

Filing Documents

FINANCIAL STATEMENTS (UNAUDITED)

FINANCIAL STATEMENTS (UNAUDITED) 1 ITEM 2.

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF O PERATIONS

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF O PERATIONS 32 ITEM 3.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 38 ITEM 4.

CONTROLS AND PROCEDURES

CONTROLS AND PROCEDURES 39 PART II. OTHER INFORMATION 40 ITEM 1.

LEGAL PROCEEDINGS

LEGAL PROCEEDINGS 40 ITEM 1A.

RISK FACTORS

RISK FACTORS 40 ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS 40 ITEM 3. DEFAULTS UPON SENIOR SECURITIES 40 ITEM 4. MINE SAFETY DISCLOSURES 40 ITEM 5. OTHER INFORMATION 40 ITEM 6. EXHIBITS 41 i CAUTIONARY NOTE REGARDING

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS This Quarterly Report on Form 10-Q contains statements that may be deemed to be "forward-looking statements" within the meaning of the federal securities laws. These statements relate to anticipated future events, future results of operations and or future financial performance. In some cases, you can identify

forward-looking statements by their use of terminology such as "anticipate," "believe," "could," "estimate,"

forward-looking statements by their use of terminology such as "anticipate," "believe," "could," "estimate," "expect," "future," "intend," "may," "ought to," "plan," "possible," "potentially," "predicts," "project," "should," "will," "would," negatives of such terms or other similar terms. These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. The forward-looking statements in this Quarterly Report on Form 10-Q include, without limitation, statements relating to: our goals and strategies; our future business development, results of operations and financial condition; our estimates regarding expenses, future revenues, capital requirements and our need for additional financing; our estimates regarding the market opportunity for our services; the impact of government laws and regulations; our ability to recruit and retain qualified personnel; our failure to comply with regulatory guidelines; uncertainty in industry demand; general economic conditions and market conditions in the financial services industry; future sales of large blocks or our securities, which may adversely impact our share price; and depth of the trading market in our securities. The preceding list is not intended to be an exhaustive list of all of our forward-looking statements. Forward-looking statements reflect our current views with respect to future events and are based on assumptions and subject to risks and uncertainties, including those described in Item 1A "Risk Factors" of our Annual Report on Form 10-K for the fiscal year ended December 31, 2023 and elsewhere in this Quarterly Report on Form 10-Q. You should not unduly rely on any forward-looking

— FINANCIAL INFORMATION

PART I — FINANCIAL INFORMATION

FINANCIAL STATEMENTS (UNAUDITED)

ITEM 1. FINANCIAL STATEMENTS (UNAUDITED) UNAUDITED INTERIM condensed consolidated financial statements AND SUPPLEMENTARY DATA Index to unaudited interim condensed consolidated financial statements Page Unaudited Interim Condensed Consolidated Financial Statements: Unaudited Interim Condensed Consolidated Balance Sheet as of March 31, 2024 and Condensed Consolidated Balance Sheet as of December 31, 2023 2 Unaudited Interim Condensed Consolidated Statements of Operations and Comprehensive Loss For the three months ended March 31, 2024 and 2023 3 Unaudited Interim Condensed Consolidated Statements of Changes in Shareholders' Equity For the three months ended March 31, 2024 and 2023 4 Unaudited Interim Condensed Consolidated Statements of Cash Flows For the three months ended March 31, 2024 and 2023 6 Notes to Unaudited Interim Condensed Consolidated Financial Statements 7 1 GD CULTURE GROUP LIMITED AND ITS SUBSIDIARIES UNAUDITED INTERIM CONDENSED CONSOLIDATED BALANCE SHEET AS OF MARCH 31, 2024 AND CONDENSED CONSOLIDATED BALANCE SHEET AS OF DECEMBER 31, 2023 March 31, December 31, 2024 2023 (Unaudited) ASSETS CURRENT ASSETS Cash and cash equivalents $ 486,201 $ 5,175,518 Loan receivable 1,919,781 - Other receivables, net 9,195 9,459 Convertible notes receivable 2,656,877 2,602,027 Prepaid and other current assets 1,053,329 1,290,890 Total current assets 6,125,383 9,077,894 EQUIPMENT, NET 11,328 12,511 RIGHT-OF-USE ASSETS, NET 1,566,003 1,561,058 OTHER ASSETS Intangible assets, net 3,119,244 3,307,949 Other assets 250,740 250,740 Total other assets 3,369,984 3,558,689 Total assets $ 11,072,698 $ 14,210,152 LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES Other payables and accrued liabilities $ 193,422 $ 23,338 Other payables - related parties 40,833 20,833 Lease liabilities - current 308,419 358,998 Total current liabilities 542,674 403,169 OTHER LIAB

financial statements were issued, the Company owns 73.3333 % of the total equity interest of SH Xianzhui

financial statements were issued, the Company owns 73.3333 % of the total equity interest of SH Xianzhui. AI Catalysis is a Nevada corporation, incorporated on May 18, 2023. AI Catalysis is expected to bridge the realms of the internet, media, and artificial intelligence ("AI") technologies. Positioned at the crossroads of traditional and streaming media, AI Catalysis plans to elevate the experience of media with AI-based interactive and smart content, aiming to transform the whole media landscape. At present, AI Catalysis primarily focused on the application of AI digital human technology with the sectors of e-commerce and entertainment to improve the interaction experiences online. AI Catalysis strives to deliver stable interactive livestreaming products to AI Catalysis' users. AI Catalysis foresees future expansion to a variety of business sectors with AI applications in different scenarios. AI Catalysis plans to enter into the livestreaming market with a focus on e-commerce and livestreaming interactive game. Prior to June 26, 2023, the Company had a subsidiary TMSR HK, which owns 100 % equity interest in Makesi WFOE. Makesi WFOE had a series of contractual arrangement with Shanghai Yuanma Food and Beverage Management Co., Ltd. ("Yuanma") that established a variable interest entity (the "VIE") structure. For accounting purposes, Makesi WFOE was the primary beneficiary of Yuanma. Accordingly, under U.S. GAAP, GDC treated Yuanma as the consolidated affiliated entity and has consolidated Yuanma's financial results in GDC's financial statements prior to June 26, 2023. On June 26, 2023, GDC entered into a share purchase agreement with a buyer unaffiliated with the Company. Pursuant to the agreement, the Company agreed to sell, and the buyer agreed to purchase all the issued and outstanding equity interest in TMSR HK. The sale of TMSR HK did not have any material impact on the Company's unaudited interim condensed consolidated financial statements. 7 Prior to Se

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