12/12/2024 | Press release | Distributed by Public on 12/12/2024 16:31
Item 4.02 Non-reliance on previously issued financial statements
On December 10, 2024, The audit committee of Next Technology Holding Inc (formerly known as WeTrade Group Inc. (the "Company")), after discussion with the management of the Company, and in consultation with the Company's independent registered public accounting firm, concluded that the Company's previously issued financial statements for the quarter ended March 31, 2024 filed with the Securities and Exchange Commission (the "SEC") on May 20, 2024 (the "Original Filing") should no longer be relied upon as a result of incorrect accounting treatment in other income and prior year accumulated deficits, understatement of tax expenses , tax payable and deferred tax liabilities.
The revised Form 10-Q/A that was filed on September 12, 2024 (the "Amendment No.1") has been reviewed by the auditor and was filed to adjust: (i) $4,142,759 in tax expenses, deferred tax liabilities and accumulated retained profit due to under-provision for tax expenses and deferred tax liabilities; (ii) adjustment of $194,622 in other income due to incorrect accounting treatment, (ii) adjustment of $2 in general and administrative expenses due to rounding error, (iii) adjustment of $263,948 in digital assets due to incorrect computation of fair value, (iv) adjustment of $12,000 in amount due to related parties due to over-provision for related parties loan, (v) reclassification of $50,020 from accrued expenses to other payables and adjustment of $520 in other payables due to error recording, (vi) prior year adjustment of $211,738 in accumulated deficit due to increase in loss of discontinued operation that affected the financial statement as follow:
The amount adjusted in Amended Statement of Operation for the three months ended March 31, 2024 and 2023 (filed on September 12, 2024):
Nature of Error | Item: | Amount |
March 31, 2024 (Amendment No.1 Filed on September 12, 2024) |
March 31, 2024 (Original filed on May 20, 2024) |
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Under-provision of tax expenses | Income tax expenses | $ | (4,142,759 | ) | $ | (4,142,759 | ) | $ | - | |||||
Over statement of other income | Other income | $ | (194,622 | ) | $ | 24,019,399 | $ | 24,214,021 | ||||||
Rounding error | General and administrative expenses | $ | (2 | ) | $ | (330,145 | ) | $ | (330,143 | ) |
Nature of Error | Item: | Amount |
March 31, 2023 (Amendment No.1 Filed on September 12, 2024) |
March 31, 2023 (Original filed on May 20, 2024) |
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Overstatement of expenses | General and administrative expenses | $ | 45,899 | $ | (166,295 | ) | $ | (212,194 | ) |