FDCTech Inc (OTCQB:FDCT), which specializes in buying and integrating small to midsize legacy financial services companies, posted its latest financial results that saw nine months of revenue jump by 1,980% year-over-year due to the successful integration of its wealth management business.
For the nine-month period ended September 30, 2022, the Irvine, California-based financial technology company, reported revenue of nearly $4.59 million, compared to $221,003 in the nine-month period ended September 30, 2021.
According to the company’s SEC filing, it clocked up total revenue of $1.53 million for its third quarter ended 30 September 2022, with its technology and software business contributing $92,500, while the wealth management division brought in the lion’s share of $1.44 million in revenue.
READ: FDCTech to acquire 80% equity interest in US investment bank CIM Securities
The company increased its cash on hand to $246,000 at the end of September this year from $94,000 on December 31, 2021.
FDCTech reported a net loss of close to $1.0 million during the nine-month period, but in a big positive, the firm's net loss as a percentage of revenue shrunk from 442.5% to 21.8%.
Strategic acquisition
On July 19, 2022, FDCTech signed a non-binding letter of intent to acquire 80% equity interest in independent investment bank CIM Securities LLC. FDTTech said in its latest financial statement that in end-September it paid a $20,000 non-refundable deposit and transferred $180,000 to the escrow account to complete the transaction.
FDCTech noted that FINRA Rule 1017 requires the company to file continuing membership applications (CMAs) as it plans to apply for changes in ownership, control, and business operations. The company expects to file the CMA form by the end of the fiscal year 2022.
The strategic acquisition of CIM Securities, licensed to operate in at least 49 US states and territories, aligns with FDCTech’s growth strategy through mergers and acquisitions.
FDCTch develops and delivers a full suite of technology infrastructure solutions to forex, crypto, wealth management, and other future-proof financial sectors.
Contact the author Uttara Choudhury at uttara@proactiveinvestors.com
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