BEIJING, April 24, 2021 /PRNewswire/ -- MMTEC, Inc. (NASDAQ: MTC) ("MMTEC", "we", "our" or the "Company"), a China based technology company that provides access to the U.S. financial markets, today announced its financial results for the year ended December 31, 2020.
Comparison of Results of Operations for the Years Ended December 31, 2020 and 2019.
Revenue. Revenues increased from $200,797 in 2019 to $742,125 in 2020. For the years ended December 31, 2020 and 2019, we had revenue from performing market data services for our customer of $73,524 and $75,044, respectively. As a result of strategy adjustment, our Company had investor relations management services revenue of $21,113 and $86,788 for the years ended December 31, 2020 and 2019 respectively. As a result of our acquisition of MMBD Trading Limited, which has a fully owned subsidiary, MM Global Securities, INC., that engages in a single line of business as a securities broker-dealer, our Company also had commissions revenue of $643,145 and $33,680, and other related revenue of $4,343 and $5,285, for the years ended December 31, 2020 and 2019 respectively.
Cost of Revenue. Cost of revenue consists primarily of internal labor cost and related benefits, and other overhead costs that are directly attributable to services provided. For the years ended December 31, 2020 and 2019, cost of revenue was $7,405 and $90,890, respectively.
Gross Profit and Gross Margin. Our gross profit was $734,720 for the year ended December 31, 2020, representing gross margin of 99.0%. Gross profit was $109,907 for the year ended December 31, 2019, representing gross margin of 54.7%. Our gross margin increased was primarily attributable to the increased in commissions revenue and commissions revenue disclosed net revenue without cost.
Loss from Operations. As a result of the foregoing, for the year ended December 31, 2020, loss from operations amounted to $3,184,151, as compared to $2,940,776 for the year ended December 31, 2019, an increase of $243,375, or 8.3%.
Other Income (Expense). Other income (expense) mainly includes interest income from bank deposits, other income (expense), government subsidies, foreign currency transaction gain (loss) and loss on equity method investment. Other income, net, totaled $2,555 for the year ended December 31, 2020, as compared to other income of $697,542 for the year ended December 31, 2019, a change of $694,987, which was mainly attributable to a decrease in interest income from bank deposits of $6,892, a decrease in government subsidy of $724,795, a decrease in loss on equity method investment of $3,308, an increase in foreign currency transaction loss of $35,248 and an increase in other income of $68,640.
Net Loss. As a result of the factors described above, our net loss was $3,181,596, or $0.16 per share (basic and diluted), for the year ended December 31, 2020. Our net loss was $2,243,234, or $0.11 per share (basic and diluted), for the year ended December 31, 2019.
About MMTEC, Inc.
Headquartered in Beijing, China, our Company develops and deploys a series of platforms, such as the ETN Counter Business System, the PTN Private Fund Investment Management System, which comprise a business chain that enables Chinese language speaking hedge funds, mutual funds, registered investment advisors, proprietary trading groups, and brokerage firms to engage in securities market transactions and settlements globally. In 2020, the company used internally designed and built system with the US brokerage license and the Cayman fund management qualification to form a series of MOM funds, with the main goal of discovering small and medium-sized institutional investors and helping them set up the fund to issue securities fund products.
More information about the Company can be found at: www.51mm.com
Forward-Looking Statements
This press release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements that are other than statements of historical facts. When the Company uses words such as "may", "will", "intend", "should", "believe", "expect", "anticipate", "project", "estimate" or similar expressions that do not relate solely to historical matters, it is making forward-looking statements. Specifically, the Company's statements regarding its continued growth, business outlook, and other similar statements are forward-looking statements. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties that may cause the actual results to differ materially from the Company's expectations discussed in the forward-looking statements. These statements are subject to uncertainties and risks including, but not limited to, the following: the Company's goals and strategies; the Company's future business development; product and service demand and acceptance; changes in technology; economic conditions; reputation and brand; the impact of competition and pricing; government regulations; fluctuations in general economic and business conditions in China and assumptions underlying or related to any of the foregoing and other risks contained in reports filed by the Company with the Securities and Exchange Commission, including the Company's most recently filed Annual Report on Form 20-F and its subsequent filings. For these reasons, among others, investors are cautioned not to place undue reliance upon any forward-looking statements in this press release. Additional factors are discussed in the Company's filings with the U.S. Securities and Exchange Commission, which are available for review at www.sec.gov. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof.
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