0001641398
true
8-K/A
0001641398
2023-09-26
2023-09-26
iso4217:USD
xbrli:shares
iso4217:USD
xbrli:shares
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
AMENDMENT NO.1 TO
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of report (Date of
earliest event reported): September 26, 2023
GD Culture Group Limited
(Exact name of Company as specified in charter)
Nevada |
|
001-37513 |
|
47-3709051 |
(State or other jurisdiction
of incorporation) |
|
(Commission File No.) |
|
(IRS Employer
Identification No.) |
22F - 810 Seventh
Avenue,
New York, NY 10019 |
(Address of Principal
Executive Offices) (Zip code)
+1-347-2590292
(Company’s Telephone number, including
area code)
Check the appropriate box
below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the Company under any of the following provisions
(see General Instruction A.2. below):
☐ |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
☐ |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
☐ |
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
☐ |
Pre-commencement communications pursuant to Rule 13e-4© under the Exchange Act (17 CFR 240.13(c)) |
Indicate by check mark whether
the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule
12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company,
indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial
accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Securities registered pursuant
to Section 12(b) of the Act:
Title of each class |
|
Trading Symbol(s) |
|
Name of each exchange on which registered |
Common Stock, par value $0.0001 |
|
GDC |
|
Nasdaq Capital Market |
Explanatory Note
On September 26, 2023, GD Culture Group Limited
(the “Company”) filed with the United States Securities and Exchange Commission a Current Report on Form 8-K (the “8-K
Report”) reporting the termination of certain VIE agreements between Shanghai Highlight Entertainment Co., Ltd., an indirect subsidiary
of the Company (“Highlight WFOE”), Shanghai Highlight Media Co., Ltd., a PRC company (“Highlight Media”), and
the shareholders of Shanghai Highlight (the “Highlight Media Shareholders”) on September 26, 2023. As
a result of such termination, the Company will no longer treat Highlight Media as a consolidated affiliated entity or consolidate the
financial results and balance sheet of Highlight Media in the Company’s consolidated financial statements under U.S. GAAP.
This Amendment is being filed to file the
unaudited Pro Forma Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) of the Company for the six
months ended June 30, 2023 and 2022 and the unaudited Pro Forma Condensed Consolidated Balance Sheets of the Company as of June
30, 2023 required by Item 9.01 of Form 8-K, and this Amendment should be read in conjunction with the 8-K Report.
Item 9.01 Financial Statements and Exhibits.
(b) Pro forma financial
information.
(d) Exhibits.
SIGNATURES
Pursuant to the requirements
of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto
duly authorized.
|
GD CULTURE GROUP LIMITED |
|
|
Date: September 29, 2023 |
By: |
/s/ Xiao Jian Wang |
|
Name: |
Xiao Jian Wang |
|
Title: |
Chief Executive Officer, President and
Chairman of the Board |
3
Exhibit 99.1
GD CULTURE GROUP LIMITED AND SUBSIDIARIES
PROFORMA CONDENSED DECONSOLIDATED BALANCE SHEETS
AT JUNE 30, 2023
| |
| | |
less: | | |
| | |
| |
| |
GDC
CONS | | |
Highlight
Media | | |
ADJUSTMENTS | | |
GDC
DECONS | |
ASSETS | |
| | |
| | |
| | |
| |
CURRENT ASSETS | |
| | |
| | |
| | |
| |
Cash and cash equivalents | |
$ | 7,400,739 | | |
| 62,615 | | |
| - | | |
$ | 7,338,124 | |
Accounts receivable, net | |
| 218,077 | | |
| 68,077 | | |
| - | | |
| 150,000 | |
Other receivables, net | |
| 1,178,684 | | |
| 78,684 | | |
| 100,000 | | |
| 1,200,000 | |
Prepayments | |
| 173,334 | | |
| 303 | | |
| - | | |
| 173,031 | |
Total current assets | |
| 8,970,834 | | |
| 209,679 | | |
| 100,000 | | |
| 8,861,155 | |
| |
| | | |
| | | |
| | | |
| | |
NON-CURRENT ASSETS | |
| | | |
| | | |
| - | | |
| - | |
Plant and equipment, net | |
| 5,032 | | |
| 478 | | |
| | | |
| 4,554 | |
Goodwill | |
| 2,083,518 | | |
| - | | |
| (2,083,518 | ) | |
| - | |
Intangible assets, net | |
| 750,000 | | |
| - | | |
| | | |
| 750,000 | |
| |
| | | |
| | | |
| | | |
| | |
Total non-current assets | |
| 2,838,550 | | |
| 478 | | |
| (2,083,518 | ) | |
| 754,554 | |
| |
| | | |
| | | |
| | | |
| | |
Total assets | |
$ | 11,809,384 | | |
| 210,157 | | |
| (1,983,518 | ) | |
$ | 9,615,709 | |
| |
| | | |
| | | |
| | | |
| | |
LIABILITIES AND SHAREHOLDERS’ EQUITY | |
| | | |
| | | |
| | | |
| | |
| |
| | | |
| | | |
| | | |
| | |
CURRENT LIABILITIES | |
| | | |
| | | |
| | | |
| | |
Accounts payable | |
$ | 4,961 | | |
| 4,961 | | |
| - | | |
$ | - | |
Other payables and accrued liabilities | |
| 1,739 | | |
| 1,739 | | |
| - | | |
| - | |
Other payables - related parties | |
| 35,188 | | |
| 35,188 | | |
| - | | |
| - | |
Customer deposits | |
| 68,953 | | |
| 68,953 | | |
| - | | |
| - | |
Taxes payable | |
| 269 | | |
| 269 | | |
| - | | |
| - | |
Total current liabilities | |
| 111,110 | | |
| 111,110 | | |
| - | | |
| - | |
| |
| | | |
| | | |
| | | |
| | |
Total liabilities | |
| 111,110 | | |
| 111,110 | | |
| - | | |
| - | |
| |
| | | |
| | | |
| | | |
| | |
COMMITMENTS AND CONTINGENCIES | |
| | | |
| | | |
| | | |
| | |
| |
| | | |
| | | |
| | | |
| | |
SHAREHOLDERS’ EQUITY | |
| | | |
| | | |
| | | |
| | |
Preferred stock, $0.0001 par value, 20,000,000 shares authorized, no shares issued and outstanding as of June 30, 2023 and December 31, 2022, respectively | |
| - | | |
| - | | |
| - | | |
| - | |
Common stock, $0.0001 par value, 200,000,000 shares authorized, 3,053,563 and 1,844,877 shares issued and outstanding as of June 30, 2023 and December 31, 2022, respectively | |
| 305 | | |
| - | | |
| - | | |
| 305 | |
Additional paid-in capital | |
| 68,644,206 | | |
| - | | |
| - | | |
| 68,644,206 | |
Statutory reserves | |
| 4,467 | | |
| 4,467 | | |
| - | | |
| | |
Accumulated deficit | |
| (57,017,881 | ) | |
| 106,121 | | |
| (1,983,518 | ) | |
| (59,107,520 | ) |
Accumulated other comprehensive income | |
| 67,177 | | |
| (11,541 | ) | |
| - | | |
| 78,718 | |
Total shareholders’ equity | |
| 11,698,274 | | |
| 99,047 | | |
| (1,983,518 | ) | |
| 9,615,709 | |
| |
| | | |
| | | |
| | | |
| | |
Total liabilities and shareholders’ equity | |
$ | 11,809,384 | | |
| 210,157 | | |
| (1,983,518 | ) | |
$ | 9,615,709 | |
GD CULTURE GROUP LIMITED AND SUBSIDIARIES
PROFORMA CONDENSED DECONSOLIDATED
STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
FOR THE SIX MONTHS ENDED
JUNE 30, 2023
| |
| | |
less: | | |
| | |
| |
| |
GDC
CONS | | |
Highlight Media | | |
ADJUSTMENTS | | |
GDC
DECONS | |
REVENUES | |
| | |
| | |
| | |
| |
Enterprise brand management services | |
$ | 132,173 | | |
$ | 132,173 | | |
$ | - | | |
$ | - | |
Software copyright | |
| 150,000 | | |
| - | | |
| - | | |
| 150,000 | |
| |
| - | | |
| - | | |
| - | | |
| - | |
TOTAL REVENUES | |
| 282,173 | | |
| 132,173 | | |
| - | | |
| 150,000 | |
| |
| | | |
| | | |
| | | |
| | |
COST OF REVENUES | |
| | | |
| | | |
| | | |
| | |
Enterprise brand management services | |
| 97,562 | | |
| 97,562 | | |
| - | | |
| - | |
TOTAL COST OF REVENUES | |
| 97,562 | | |
| 97,562 | | |
| - | | |
| - | |
| |
| | | |
| | | |
| | | |
| | |
GROSS PROFIT | |
| 184,611 | | |
| 34,611 | | |
| - | | |
| 150,000 | |
| |
| | | |
| | | |
| | | |
| | |
OPERATING EXPENSES (INCOME) | |
| | | |
| | | |
| | | |
| | |
Selling, general and administrative | |
| 362,107 | | |
| 86,171 | | |
| - | | |
| 275,936 | |
| |
| | | |
| | | |
| | | |
| | |
TOTAL OPERATING EXPENSES | |
| 362,107 | | |
| 86,171 | | |
| - | | |
| 275,936 | |
| |
| | | |
| | | |
| | | |
| | |
LOSS FROM OPERATIONS | |
| (177,496 | ) | |
| (51,560 | ) | |
| - | | |
| (125,936 | ) |
| |
| | | |
| | | |
| | | |
| | |
OTHER INCOME (EXPENSE) | |
| | | |
| | | |
| | | |
| | |
Interest income | |
| 222 | | |
| 43 | | |
| - | | |
| 179 | |
Interest expense | |
| (82 | ) | |
| (82 | ) | |
| - | | |
| - | |
Other income, net | |
| 663 | | |
| 663 | | |
| - | | |
| - | |
| |
| | | |
| | | |
| | | |
| | |
Total other income, net | |
| 803 | | |
| 624 | | |
| - | | |
| 179 | |
| |
| | | |
| | | |
| | | |
| | |
LOSS BEFORE INCOME TAXES FROM CONTINUING OPERATIONS | |
| (176,693 | ) | |
| (50,936 | ) | |
| - | | |
| (125,757 | ) |
| |
| | | |
| | | |
| | | |
| | |
PROVISION FOR INCOME TAXES | |
| 114 | | |
| 114 | | |
| - | | |
| - | |
| |
| | | |
| | | |
| | | |
| | |
LOSS FROM CONTINUING OPERATIONS | |
| (176,807 | ) | |
| (51,050 | ) | |
| - | | |
| (125,757 | ) |
| |
| | | |
| | | |
| | | |
| | |
Discontinued operations: | |
| | | |
| | | |
| | | |
| | |
Loss on disposal, net of taxes | |
| - | | |
| - | | |
| (1,983,518 | ) | |
| (1,983,518 | ) |
| |
| | | |
| | | |
| | | |
| | |
Net Loss | |
| (176,807 | ) | |
| (51,050 | ) | |
| (1,983,518 | ) | |
| (2,109,275 | ) |
| |
| | | |
| | | |
| | | |
| | |
OTHER COMPREHENSIVE INCOME | |
| | | |
| | | |
| | | |
| | |
Foreign currency translation adjustment | |
| (112,283 | ) | |
| (11,541 | ) | |
| - | | |
| (100,742 | ) |
| |
| | | |
| | | |
| | | |
| | |
COMPREHENSIVE LOSS | |
$ | (289,090 | ) | |
$ | (62,591 | ) | |
| (1,983,518 | ) | |
$ | (2,210,017 | ) |
| |
| | | |
| | | |
| | | |
| | |
WEIGHTED AVERAGE NUMBER OF COMMON SHARES | |
| | | |
| | | |
| | | |
| | |
Basic and diluted on proforma basis | |
| 2,137,653 | | |
| - | | |
| - | | |
| 2,137,653 | |
| |
| | | |
| | | |
| | | |
| | |
Loss per share from continuing operations | |
| | | |
| | | |
| | | |
| | |
Basic and diluted | |
| (0.08 | ) | |
| - | | |
| - | | |
| (0.06 | ) |
| |
| | | |
| | | |
| | | |
| | |
Loss per share from discontinued operations | |
| | | |
| | | |
| | | |
| | |
Basic and diluted | |
| - | | |
| - | | |
| - | | |
| (0.93 | ) |
| |
| | | |
| | | |
| | | |
| | |
Loss per share available to common shareholders | |
| | | |
| | | |
| | | |
| | |
Basic and diluted on a proforma basis | |
$ | (0.08 | ) | |
$ | - | | |
| - | | |
$ | (0.99 | ) |
GD CULTURE GROUP LIMITED AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
AND COMPREHENSIVE LOSS
FOR THE SIX MONTHS ENDED JUNE 30, 2022
| |
| | |
| | |
less: | | |
| | |
| |
| |
GDC
CONS | | |
less:
WUGE | | |
Highlight
Media | | |
ADJUSTMENTS | | |
GDC
DECONS | |
REVENUES | |
| | | |
| | | |
| | | |
| | | |
| | |
Wuge digital door signs | |
$ | 7,616,615 | | |
$ | 7,616,615 | | |
$ | - | | |
$ | - | | |
$ | - | |
| |
| - | | |
| - | | |
| - | | |
| - | | |
| - | |
TOTAL REVENUES | |
| 7,616,615 | | |
| 7,616,615 | | |
| - | | |
| - | | |
| - | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
COST OF REVENUES | |
| | | |
| | | |
| | | |
| | | |
| | |
Wuge digital door signs | |
| 5,527,950 | | |
| 5,527,950 | | |
| - | | |
| - | | |
| - | |
TOTAL COST OF REVENUES | |
| 5,527,950 | | |
| 5,527,950 | | |
| - | | |
| - | | |
| - | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
GROSS PROFIT | |
| 2,088,665 | | |
| 2,088,665 | | |
| - | | |
| - | | |
| - | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
OPERATING EXPENSES (INCOME) | |
| | | |
| | | |
| | | |
| | | |
| | |
Selling, general and administrative | |
| 8,341,973 | | |
| 1,605,935 | | |
| - | | |
| - | | |
| 6,736,038 | |
Provision for doubtful accounts | |
| 12,949,329 | | |
| - | | |
| - | | |
| - | | |
| 12,949,329 | |
TOTAL OPERATING EXPENSES | |
| 21,291,302 | | |
| 1,605,935 | | |
| - | | |
| - | | |
| 19,685,367 | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
LOSS FROM OPERATIONS | |
| (19,202,637 | ) | |
| 482,730 | | |
| - | | |
| - | | |
| (19,685,367 | ) |
| |
| | | |
| | | |
| | | |
| | | |
| | |
OTHER INCOME (EXPENSE) | |
| | | |
| | | |
| | | |
| | | |
| | |
Interest income | |
| 65,251 | | |
| 65,251 | | |
| - | | |
| - | | |
| - | |
Interest expense | |
| (935 | ) | |
| (935 | ) | |
| - | | |
| - | | |
| - | |
Other income, net | |
| 70,830 | | |
| 70,830 | | |
| - | | |
| - | | |
| - | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Total other income, net | |
| 135,146 | | |
| 135,146 | | |
| - | | |
| - | | |
| - | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
LOSS BEFORE INCOME TAXES FROM CONTINUING OPERATIONS | |
| (19,067,491 | ) | |
| 617,876 | | |
| - | | |
| - | | |
| (19,685,367 | ) |
| |
| | | |
| | | |
| | | |
| | | |
| | |
PROVISION FOR INCOME TAXES | |
| 314,787 | | |
| 314,787 | | |
| - | | |
| - | | |
| - | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
LOS FROM CONTINUING OPERATIONS | |
| (19,382,278 | ) | |
| 303,089 | | |
| - | | |
| - | | |
| (19,685,367 | ) |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Discontinued operations: | |
| | | |
| | | |
| | | |
| | | |
| | |
Loss on disposal, net of taxes | |
| - | | |
| - | | |
| - | | |
| (246,369 | ) | |
| (246,369 | ) |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Net Los | |
| (19,382,278 | ) | |
| 303,089 | | |
| - | | |
| (246,369 | ) | |
| (19,931,736 | ) |
| |
| | | |
| | | |
| | | |
| | | |
| | |
OTHER COMPREHENSIVE INCOME | |
| | | |
| | | |
| | | |
| | | |
| | |
Foreign currency translation adjustment | |
| (935 | ) | |
| 204,195 | | |
| - | | |
| - | | |
| (205,130 | ) |
| |
| | | |
| | | |
| | | |
| | | |
| | |
COMPREHENSIVE LOSS | |
$ | (19,383,213 | ) | |
$ | 507,284 | | |
| - | | |
| (246,369 | ) | |
$ | (20,136,866 | ) |
| |
| | | |
| | | |
| | | |
| | | |
| | |
WEIGHTED AVERAGE NUMBER OF COMMON SHARES | |
| | | |
| | | |
| | | |
| | | |
| | |
Basic and diluted on proforma basis | |
| 41,065,559 | | |
| - | | |
| - | | |
| (4,000,000 | ) | |
| 37,065,559 | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Loss per share from continuing operations | |
| | | |
| | | |
| | | |
| | | |
| | |
Basic and diluted | |
| (0.47 | ) | |
| - | | |
| - | | |
| - | | |
| (0.53 | ) |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Loss per share from discontinued operations | |
| | | |
| | | |
| | | |
| | | |
| | |
Basic and diluted | |
| - | | |
| - | | |
| - | | |
| - | | |
| (0.01 | ) |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Loss per share available to common shareholders | |
| | | |
| | | |
| | | |
| | | |
| | |
Basic and diluted on a proforma basis | |
$ | (0.47 | ) | |
$ | - | | |
| - | | |
| - | | |
$ | (0.54 | ) |
GD CULTURE GROUP LIMITED AND SUBSIDIARIES
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS
Note
1 – Nature of business and organization
GD Culture Group Limited (“GDC” or
the “Company”), formerly known as Code Chain New Continent Limited, TMSR Holding Company Limited and JM Global Holding Company
is a Nevada corporation and a holding company that has no material operation of its own. The Company’s current and previous subsidiaries,
Citi Profit Investment Holding Limited (“Citi Profit”), TMSR Holdings Limited (“TMSR HK”), Highlights Culture
Holding Co., Limited (“Highlight HK”), Shanghai Highlight Entertainment Co., Ltd. (“Highlight WFOE”), and Makesi
IoT Technology (Shanghai) Co., Ltd. (“Makesi WFOE”) are also holding companies with no material operations.
Highlight WFOE has a series of contractual arrangement
with Shanghai Highlight Media Co., Ltd. (“Highlight Media”) that established a VIE structure. For accounting purposes, Highlight
WFOE is the primary beneficiary of Highlight Media. Accordingly, under U.S. GAAP, GDC treats Highlight Media as the consolidated affiliated
entity and has consolidated Highlight Media’s financial results in GDC’s financial statements. Highlight Media was founded
in 2016. It is an integrated marketing service agency, focusing on enterprise brand management, crisis public relations, intelligent public
opinion monitoring, media PR, financial and economic we-media operation, digital face application, large-scale exhibition services and
other businesses. It is committed to becoming a modern science and technology media organization that fully empowers the development of
customer enterprises in the era of artificial intelligence and big data.
The VIE structure involves unique risks to investors.
The VIE agreements have not been tested in a court of law and the Chinese regulatory authorities could disallow this VIE structure, which
would likely result in a material change in our operations and the value of our securities, including that it could cause the value of
such securities to significantly decline or become worthless.
AI Catalysis Corp. (“AI Catalysis“)
is a Nevada corporation, incorporated on May 18, 2023. AI Catalysis is expected to bridge the realms of the internet, media, and artificial
intelligence (“AI”) technologies. Positioned at the crossroads of traditional and streaming media, AI Catalysis plans to elevate
the experience of media with AI-based interactive and smart content, aiming to transform the whole media landscape. At present, AI Catalysis'
primary focus is the application of AI digital human technology with the sectors of e-commerce and entertainment to improve the interaction
experiences online. AI Catalysis strives to deliver stable interactive livestreaming products to AI Catalysis' users. AI Catalysis foresees
future expansion to a variety of business sectors with AI applications in different scenarios. AI Catalysis plans to enter into the livestreaming
market with a focus on e-commerce and livestreaming interactive game.
Prior to September 28, 2022, we also conducted
business through Sichuan Wuge Network Games Co., Ltd. (“Wuge”). Makesi WFOE had a series of contractual arrangement with Wuge
that established a VIE structure. Wuge focused its business on research, development and application of Internet of Things (IoT) and electronic
tokens Wuge digital door signs. On September 28, 2022, Makesi WFOE entered into a termination agreement with Wuge and the shareholders
of Wuge to terminate the VIE Agreements and to cancel the Shares, based on the average closing price of $0.237 per share of the Company
during the 30 trading days immediately prior to the date of the termination agreement. As a result of such termination, the Company no
longer treats Wuge as a consolidated affiliated entity or consolidates the financial results and balance sheet of Wuge in the Company’s
consolidated financial statements under U.S. GAAP.
Prior to June 26, 2023, we had a subsidiary TMSR
HK, which owns 100% equity interest in Makesi WFOE. Makesi WFOE had a series of contractual arrangement with Shanghai Yuanma Food
and Beverage Management Co., Ltd. (“Yuanma”) that established a VIE structure. For accounting purposes, Makesi WFOE was the
primary beneficiary of Yuanma. Accordingly, under U.S. GAAP, GDC treated Yuanma as the consolidated affiliated entity and has consolidated
Yuanma’s financial results in GDC’s financial statements prior to June 26, 2023. On June 26, 2023, GDC entered into a share
purchase agreement with a buyer unaffiliated with the Company. Pursuant to the agreement, the Company agreed to sell and the buyer agreed
to purchase all the issued and outstanding equity interest in TMSR HK. The purchase price for the transaction contemplated by the Agreement
was $100,000. TMSR The sale of TMSR HK included the sale of Makesi WFOE and Yuanma. None of TMSR HK, Makesi WFOE or Yuanma had any assets,
employees or operation. The sale of TMSR HK did not have any material impact on the Company’s consolidated financial statements.
On September 26, 2023, Highlight WFOE entered
into a termination agreement (the “Termination Agreement”) with Highlight Media, the Highlight Media Shareholders and a third
party to terminate the VIE Agreements and for the third party to pay the Company $100,000 as consideration to the termination of the VIE
Agreements. As a result of such termination, the Company will no longer treat Highlight Media as a consolidated affiliated entity or consolidate
the financial results and balance sheet of Highlight Media in the Company’s consolidated financial statements under U.S. GAAP.
Note 2 – Summary of significant accounting
policies
Basis of presentation
These proforma financial statements, accompanying
notes, and related disclosures have been prepared on an as-if basis assuming that the disposition transaction between the
Company, Highlight Media, and a third party has been in effect since the beginning of the period presented. The financial position
and results of operations are deconsolidated using historical financial statements. Actual deconsolidated results may have differed from
those presented herein. The information included in this Form 8-K should be read in conjunction with information included in the
Company’s annual report on Form 10-Q for the six months ended June 30, 2023, filed with the Securities and Exchange Commission
on August 14, 2023.
Use of estimates and assumptions
The preparation of the accompanying proforma financial
statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets
and liabilities and disclosures of contingent assets and liabilities as of the date of the financial statements and the reported amounts
of revenues and expenses during the periods presented. Significant accounting estimates reflected in the Company’s proforma financial
statements include the useful lives of intangible assets, plant and equipment and collectability of receivable. Actual results could differ
from these estimates.
Foreign currency translation and transaction
The reporting currency of the Company is the U.S.
dollar. The Company’s subsidiaries and VIEs in China conduct businesses in the local currency, Renminbi (RMB), as its functional
currency. Assets and liabilities are translated at the unified exchange rate as quoted by the People’s Bank of China at the end
of the period. The statement of income accounts is translated at the average translation rates and the equity accounts are translated
at historical rates. Translation adjustments resulting from this process are included in accumulated other comprehensive income. Transaction
gains and losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency
are included in the results of operations as incurred.
The PRC government imposes significant exchange
restrictions on fund transfers out of the PRC that are not related to business operations. These restrictions have not had a material
impact on the Company because it has not engaged in any significant transactions that are subject to the restrictions.
NOTE 3 – PROFORMA ADJUSTMENTS
Entry No. | |
Description | |
Dr. | | |
Cr. | |
1 | |
Other receivables, net | |
$ | 100,000 | | |
| | |
| |
Loss on disposal, net of taxes | |
| 1,983,518 | | |
| | |
| |
Goodwill | |
| | | |
$ | 2,083,518 | |
| |
De-consolidation adjustment including removal of loss on inter-company balances written off between GDC and Highlight Media. | |
| | | |
| | |
5
v3.23.3
Cover
|
Sep. 26, 2023 |
Cover [Abstract] |
|
Document Type |
8-K/A
|
Amendment Flag |
true
|
Amendment Description |
On September 26, 2023, GD Culture Group Limited
(the “Company”) filed with the United States Securities and Exchange Commission a Current Report on Form 8-K (the “8-K
Report”) reporting the termination of certain VIE agreements between Shanghai Highlight Entertainment Co., Ltd., an indirect subsidiary
of the Company (“Highlight WFOE”), Shanghai Highlight Media Co., Ltd., a PRC company (“Highlight Media”), and
the shareholders of Shanghai Highlight (the “Highlight Media Shareholders”) on September 26, 2023. As
a result of such termination, the Company will no longer treat Highlight Media as a consolidated affiliated entity or consolidate the
financial results and balance sheet of Highlight Media in the Company’s consolidated financial statements under U.S. GAAP.
|
Document Period End Date |
Sep. 26, 2023
|
Entity File Number |
001-37513
|
Entity Registrant Name |
GD Culture Group Limited
|
Entity Central Index Key |
0001641398
|
Entity Tax Identification Number |
47-3709051
|
Entity Incorporation, State or Country Code |
NV
|
Entity Address, Address Line One |
22F - 810 Seventh
Avenue
|
Entity Address, City or Town |
New York
|
Entity Address, State or Province |
NY
|
Entity Address, Postal Zip Code |
10019
|
City Area Code |
+1-347
|
Local Phone Number |
2590292
|
Written Communications |
false
|
Soliciting Material |
false
|
Pre-commencement Tender Offer |
false
|
Pre-commencement Issuer Tender Offer |
false
|
Title of 12(b) Security |
Common Stock, par value $0.0001
|
Trading Symbol |
GDC
|
Security Exchange Name |
NASDAQ
|
Entity Emerging Growth Company |
false
|
X |
- DefinitionDescription of changes contained within amended document.
+ References
+ Details
Name: |
dei_AmendmentDescription |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:stringItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionBoolean flag that is true when the XBRL content amends previously-filed or accepted submission.
+ References
+ Details
Name: |
dei_AmendmentFlag |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:booleanItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionFor the EDGAR submission types of Form 8-K: the date of the report, the date of the earliest event reported; for the EDGAR submission types of Form N-1A: the filing date; for all other submission types: the end of the reporting or transition period. The format of the date is YYYY-MM-DD.
+ References
+ Details
Name: |
dei_DocumentPeriodEndDate |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:dateItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionThe type of document being provided (such as 10-K, 10-Q, 485BPOS, etc). The document type is limited to the same value as the supporting SEC submission type, or the word 'Other'.
+ References
+ Details
Name: |
dei_DocumentType |
Namespace Prefix: |
dei_ |
Data Type: |
dei:submissionTypeItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionAddress Line 1 such as Attn, Building Name, Street Name
+ References
+ Details
Name: |
dei_EntityAddressAddressLine1 |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:normalizedStringItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- Definition
+ References
+ Details
Name: |
dei_EntityAddressCityOrTown |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:normalizedStringItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionCode for the postal or zip code
+ References
+ Details
Name: |
dei_EntityAddressPostalZipCode |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:normalizedStringItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionName of the state or province.
+ References
+ Details
Name: |
dei_EntityAddressStateOrProvince |
Namespace Prefix: |
dei_ |
Data Type: |
dei:stateOrProvinceItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionA unique 10-digit SEC-issued value to identify entities that have filed disclosures with the SEC. It is commonly abbreviated as CIK.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Exchange Act -Number 240 -Section 12 -Subsection b-2
+ Details
Name: |
dei_EntityCentralIndexKey |
Namespace Prefix: |
dei_ |
Data Type: |
dei:centralIndexKeyItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionIndicate if registrant meets the emerging growth company criteria.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Exchange Act -Number 240 -Section 12 -Subsection b-2
+ Details
Name: |
dei_EntityEmergingGrowthCompany |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:booleanItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionCommission file number. The field allows up to 17 characters. The prefix may contain 1-3 digits, the sequence number may contain 1-8 digits, the optional suffix may contain 1-4 characters, and the fields are separated with a hyphen.
+ References
+ Details
Name: |
dei_EntityFileNumber |
Namespace Prefix: |
dei_ |
Data Type: |
dei:fileNumberItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionTwo-character EDGAR code representing the state or country of incorporation.
+ References
+ Details
Name: |
dei_EntityIncorporationStateCountryCode |
Namespace Prefix: |
dei_ |
Data Type: |
dei:edgarStateCountryItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionThe exact name of the entity filing the report as specified in its charter, which is required by forms filed with the SEC.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Exchange Act -Number 240 -Section 12 -Subsection b-2
+ Details
Name: |
dei_EntityRegistrantName |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:normalizedStringItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionThe Tax Identification Number (TIN), also known as an Employer Identification Number (EIN), is a unique 9-digit value assigned by the IRS.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Exchange Act -Number 240 -Section 12 -Subsection b-2
+ Details
Name: |
dei_EntityTaxIdentificationNumber |
Namespace Prefix: |
dei_ |
Data Type: |
dei:employerIdItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionLocal phone number for entity.
+ References
+ Details
Name: |
dei_LocalPhoneNumber |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:normalizedStringItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionBoolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Exchange Act -Number 240 -Section 13e -Subsection 4c
+ Details
Name: |
dei_PreCommencementIssuerTenderOffer |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:booleanItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionBoolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Exchange Act -Number 240 -Section 14d -Subsection 2b
+ Details
Name: |
dei_PreCommencementTenderOffer |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:booleanItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionTitle of a 12(b) registered security.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Exchange Act -Number 240 -Section 12 -Subsection b
+ Details
Name: |
dei_Security12bTitle |
Namespace Prefix: |
dei_ |
Data Type: |
dei:securityTitleItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionName of the Exchange on which a security is registered.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Exchange Act -Number 240 -Section 12 -Subsection d1-1
+ Details
Name: |
dei_SecurityExchangeName |
Namespace Prefix: |
dei_ |
Data Type: |
dei:edgarExchangeCodeItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionBoolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as soliciting material pursuant to Rule 14a-12 under the Exchange Act.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Exchange Act -Section 14a -Number 240 -Subsection 12
+ Details
Name: |
dei_SolicitingMaterial |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:booleanItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionTrading symbol of an instrument as listed on an exchange.
+ References
+ Details
Name: |
dei_TradingSymbol |
Namespace Prefix: |
dei_ |
Data Type: |
dei:tradingSymbolItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionBoolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as written communications pursuant to Rule 425 under the Securities Act.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Securities Act -Number 230 -Section 425
+ Details
Name: |
dei_WrittenCommunications |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:booleanItemType |
Balance Type: |
na |
Period Type: |
duration |
|
GD Culture (NASDAQ:GDC)
과거 데이터 주식 차트
부터 5월(5) 2024 으로 6월(6) 2024
GD Culture (NASDAQ:GDC)
과거 데이터 주식 차트
부터 6월(6) 2023 으로 6월(6) 2024