Business
MMTEC, INC. Announces 2019 Year-End Financial Results
BEIJING, May 22, 2020 /PRNewswire/-- MMTEC, Inc. (NasdaqCM:MTC) ("MMTec" or the "Company") a China based technology company that provides access to the U.S.
About this update from Mmtec, Inc.
[{"type":"text","content":"BEIJING, May 22, 2020 /PRNewswire/-- MMTEC, Inc. (NasdaqCM:MTC) (\"MMTec\" or the \"Company\") a China based technology company that provides access to the U.S. financial markets announced its financial results for the year ended December 31, 2019.\nComparison of Results of Operations for the Years Ended December 31, 2019 and 2018\nRevenue. Revenues increased from $26,882 in 2018 to $200,797, or 647%, in 2019 due to the increase in the revenue of the original market data service business and the addition of the IR business, as well as the acquisition of MMBD Trading brings increased commission income. For the years ended December 31, 2019 and 2018, our revenue from performing market data services for our customers increased to $75,044 from $26,882, respectively. In additional, we have expanded our investor relations management services business to help maintain the relationship between listed companies and the company's equity, debt investors or potential investors. Our revenue from investor relations management services was $86,788 for the year ended December 31, 2019. Following our acquisition of MMBD Trading and its wholly-owned subsidiary and a securities broker-dealer, we received $33,680 in commission revenue and other related revenue of $5,285 for the year ended December 31, 2019.\nCost of Revenue. For the years ended December 31, 2019 and 2018, our cost of revenue was $90,890 and $16,308, respectively. Due to the increase in revenue, the corresponding business cost has increased.\nGross Profit and Gross Margin. Our gross profit was $109,907 for the year ended December 31, 2019, representing gross margin of 54.7%. Gross profit was $10,574 for the year ended December 31, 2018, representing gross margin of 39.3%.\nLoss from Operations. As a result of business expansion and increase in NASDAQ data service fee for the year ended December 31, 2019, loss from operations amounted to $2,940,776, as compared to $2,327,540 for the year ended December 31, 2018, an increase of $613,236, or 26.3%.\nOther Income (Expense). Other income (expense) mainly includes interest income from bank deposits, other miscellaneous expense, government subsidies, foreign currency transaction gain (loss) and loss on equity method investment controlled by major shareholders. Other income, net, totaled $697,542 for the year ended December 31, 2019, as com...