GBT Technologies Inc. reported a significant turnaround in its financial performance for the fiscal year ending December 31, 2024, achieving a net income of $20.7 million compared to a net loss of $17.8 million in the previous year. This improvement was primarily driven by a substantial increase in other income, which rose to $21.3 million from a loss of $16 million in 2023. The company attributed this increase to a gain from debt extinguishment and a favorable change in the fair value of derivative liabilities. Operating expenses also decreased significantly, falling by 63% to $644,697, reflecting cost-cutting measures across various categories.
In terms of operational changes, GBT Technologies has undergone strategic shifts, including the termination of its Revenue Sharing Agreement with Mahaser Ltd. in July 2023, which was part of its efforts to streamline operations. The company has also focused on expanding its intellectual property portfolio, particularly in microchip technology, through its joint ventures, including the 2023 Tokenize Agreement with Magic Internacional Argentina FC, S.L. This agreement aims to enhance GBT's technology offerings and market presence.
The company reported a working capital deficit of $9.9 million and an accumulated deficit of $295.3 million as of December 31, 2024. Despite these challenges, GBT Technologies has plans to seek additional capital through private placements of debt and equity securities to support its growth initiatives. The company has not generated any revenues from its operations in the past two fiscal years, which raises concerns about its ability to sustain operations without external financing.
As of the end of 2024, GBT Technologies employed three full-time staff members and utilized outside consultants as needed. The company continues to face uncertainties related to market conditions and its ability to attract and retain key personnel, which are critical for its future growth. The management has indicated that while the outlook remains cautious, they are optimistic about leveraging their technology portfolio to create new market opportunities.
Looking ahead, GBT Technologies aims to diversify its technology offerings and expand its market reach, particularly in the Internet of Things (IoT) and artificial intelligence (AI) sectors. The company is actively pursuing partnerships and collaborations to enhance its product development and market penetration, although it acknowledges the inherent risks and uncertainties associated with its business model and the evolving technology landscape.
About GBT Technologies Inc.
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