FDCTech (OTCQB:FDCT) Inc posted 2022 fiscal year results that saw its full-year revenue leap 1,310% year-over-year after the successful integration of its rapidly growing wealth management and enhanced technology businesses.
For the year ending December 31, 2022, the Irvine, California-based financial technology company reported revenue of $6,453,732, compared to $457,661 in revenue in 2021.
FDC also noted that its technology revenue was the highest contributor to the revenue pie.
The company also posted a massive 2,310% increase in gross margin to $1,018,940 for its 2022 fiscal year, compared to $42,277 in the earlier fiscal year.
FDC had $264,829 in cash at the end of December 2022. Subsequently, the company has paid off the outstanding balance of $550,000 and accrued interest related to the AJB note in February this year.
FDC, which specializes in buying small to mid-size legacy financial services companies, walked investors through its latest acquisitions:
- CIM Securities LLC: On July 19, 2022, FDC signed a non-binding letter of intent to acquire a 51% equity interest in broker-dealer CIM Securities. Later in September, it signed a definitive agreement and paid a $20,000 non-refundable deposit and transferred $180,000 to the escrow account to complete the deal.
- NSFX Ltd: In December last year, FDC disclosed a sale purchase agreement to acquire a 50.10% equity interest in New Star Capital Trading Limited, and its operating subsidiary NSFX Ltd, an online trading brokerage firm. FDC will assume a business acquisition loan liability of $350,000 to purchase the controlling interest in NSFX. The NSFX trading platform allows customers to trade in currency, commodity, equity, and cryptocurrency-linked derivatives in real-time.
- AD Advisory Services Private Ltd (ADSL): The fintech company earlier said it had completed the pivotal acquisition of ASDL. In a nutshell, FDC got a 51% equity interest in ADSL in a stock-for-stock transaction. The acquisition enables FDC to provide financial services in Australia and gain access to the country’s large wealth management market.
FDC noted that the efficient integration of its wealth management and enhanced technology businesses has built “a strong foundation” for the fintech company’s expansion and profitability this year.
In addition to its many acquisitions, FDC delivers a suite of technology infrastructure solutions to forex, crypto, wealth management, and other financial sectors.
Contact the author Uttara Choudhury at uttara@proactiveinvestors.com
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