[10-Q] GD Culture Group Ltd Quarterly Earnings Report
GD Culture Group (GDC) reported a sharp turnaround to profit, posting Q3 2025 net income of $12,088,469, driven primarily by an $16,230,431 unrealized gain from fair value changes of its digital assets.
The company acquired Pallas on September 29, 2025, adding 7,500 units of Bitcoin held as long-term reserve; the Bitcoin’s fair value was $857,735,191 as of September 30, 2025. For the nine months, net income was $9,611,905 after $1,664,903 of income tax expense. Total assets rose to $865,999,639 with shareholders’ equity of $862,156,751.
Liquidity remains tight with cash of $225,072 and a working capital deficit of approximately $2.3 million, though management believes liquidity is sufficient for the next 12 months. In 2025, GDC raised capital via offerings, including $910,000 net in March and $4,143,657 net by September from a May deal, largely for working capital. Subsequent events include increasing authorized shares to 10,000,000,000 common and 1,000,000,000 preferred, and a private placement of 1,333,334 shares for $2.8 million on October 24, 2025 for working capital.
- None.
- None.
Insights
Profit driven by Bitcoin fair value gains; liquidity remains tight.
GDC’s Q3 profit stems largely from a
Operational cash usage persisted (operating cash outflow of
Future results are sensitive to Bitcoin prices since gains are recognized immediately in earnings. Capital actions continued after quarter-end, including an authorized share increase and a
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
For the quarterly period
ended
For the transition period from __________ to __________
Commission File Number:
(Exact name of registrant as specified in its charter)
| (State or other jurisdiction of | (I.R.S. Employer | |
| incorporation or organization) | Identification Number) |
| 10019 | ||
| (Address of principal executive offices) | (Zip Code) |
Registrant’s telephone
number, including area code: +1-347-
Not applicable
(Former name or former address, if changed since last report)
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||
Indicate by check mark
whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days.
Indicate by check mark
whether the registrant has submitted electronically every Interactive Date File required to be submitted pursuant to Rule 405 of Regulation
S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit
such files).
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
| Large accelerated filer | ☐ | Accelerated filer | ☐ |
| ☒ | Smaller reporting company | ||
| 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. ☐
Indicate by check mark
whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No
As of November 3, 2025,
there were
TABLE OF CONTENTS
| Page | |||
| PART I. | FINANCIAL INFORMATION | 1 | |
| ITEM 1. | FINANCIAL STATEMENTS (UNAUDITED) | 1 | |
| ITEM 2. | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS | 2 | |
| ITEM 3. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK | 9 | |
| ITEM 4. | CONTROLS AND PROCEDURES | 10 | |
| PART II. | OTHER INFORMATION | 11 | |
| ITEM 1. | LEGAL PROCEEDINGS | 11 | |
| ITEM 1A. | RISK FACTORS | 11 | |
| ITEM 2. | UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS | 11 | |
| ITEM 3. | DEFAULTS UPON SENIOR SECURITIES | 12 | |
| ITEM 4. | MINE SAFETY DISCLOSURES | 12 | |
| ITEM 5. | OTHER INFORMATION | 12 | |
| ITEM 6. | EXHIBITS | 12 |
i
CAUTIONARY NOTE REGARDING
FORWARD-LOOKING STATEMENTS
This Quarterly Report on Form 10-Q contains statements that may be deemed to be “forward-looking statements” within the meaning of the federal securities laws. These statements relate to anticipated future events, future results of operations and or future financial performance. In some cases, you can identify forward-looking statements by their use of terminology such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “future,” “intend,” “may,” “ought to,” “plan,” “possible,” “potentially,” “predicts,” “project,” “should,” “will,” “would,” negatives of such terms or other similar terms. These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. The forward-looking statements in this Quarterly Report on Form 10-Q include, without limitation, statements relating to:
| ● | our goals and strategies; |
| ● | our future business development, results of operations and financial condition; |
| ● | our estimates regarding expenses, future revenues, capital requirements and our need for additional financing; |
| ● | our estimates regarding the market opportunity for our services; |
| ● | the impact of government laws and regulations; |
| ● | our ability to recruit and retain qualified personnel; |
| ● | our failure to comply with regulatory guidelines; |
| ● | uncertainty in industry demand; |
| ● | general economic conditions and market conditions in the financial services industry; |
| ● | future sales of large blocks or our securities, which may adversely impact our share price; and |
| ● | depth of the trading market in our securities. |
The preceding list is not intended to be an exhaustive list of all of our forward-looking statements. Forward-looking statements reflect our current views with respect to future events and are based on assumptions and subject to risks and uncertainties, including those described in Item 1A “Risk Factors” of our Annual Report on Form 10-K for the fiscal year ended December 31, 2024 and elsewhere in this Quarterly Report on Form 10-Q.
You should not unduly rely on any forward-looking statements. Although we believe that the expectations reflected in the forward- looking statements are reasonable, we cannot guarantee that future results, levels of activity, performance and events and circumstances reflected in the forward-looking statements will be achieved or will occur. Except as required by law, we undertake no obligation to update publicly any forward-looking statements for any reason after the date of this Quarterly Report on Form 10-Q, to conform these statements to actual results or to changes in our expectations.
ii
PART I — FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS (UNAUDITED)
UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
Index to unaudited interim condensed consolidated financial statements
| Page | ||
| Consolidated Financial Statements: | ||
| Consolidated Balance Sheets as of September 30, 2025 (Unaudited) and December 31, 2024 | F-1 | |
| Unaudited Interim Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) for the Three and Nine Months Ended September 30, 2025 and 2024 | F-2 | |
| Unaudited Interim Condensed Consolidated Statements of Changes in Shareholders’ Equity for the Three and Nine Months Ended September 30, 2025 and 2024 | F-3 – F-4 | |
| Unaudited Interim Condensed Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2025 and 2024 | F-5 | |
| Notes to Unaudited Interim Condensed Consolidated Financial Statements | F-6 |
1
GD CULTURE GROUP LIMITED AND ITS SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
| September 30, | December 31, | |||||||
| 2025 | 2024 | |||||||
| (unaudited) | ||||||||
| ASSETS | ||||||||
| CURRENT ASSETS | ||||||||
| Cash and cash equivalents | $ | $ | ||||||
| Other receivables, net | ||||||||
| Prepaid and other current assets | - | |||||||
| Total current assets | ||||||||
| EQUIPMENT, NET | ||||||||
| RIGHT-OF-USE ASSETS, NET | ||||||||
| OTHER ASSETS | ||||||||
| Intangible assets, net | ||||||||
| Other assets | ||||||||
| Digital assets | - | |||||||
| Total other assets | ||||||||
| Total assets | $ | $ | ||||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
| CURRENT LIABILITIES | ||||||||
| Other payables and accrued liabilities | $ | $ | ||||||
| Other payables - related parties | ||||||||
| Lease liabilities - current | ||||||||
| Income tax payable | ||||||||
| Total current liabilities | ||||||||
| OTHER LIABILITIES | ||||||||
| Lease liabilities – non-current | ||||||||
| Deferred tax liabilities | - | |||||||
| Total other liabilities | ||||||||
| Total liabilities | ||||||||
| COMMITMENTS AND CONTINGENCIES | ||||||||
| SHAREHOLDERS’ EQUITY | ||||||||
| Preferred stock, $ | - | - | ||||||
| Common stock, $ | ||||||||
| Additional paid-in capital | ||||||||
| Subscription receivable | ( | ) | - | |||||
| Accumulated deficit | ( | ) | ( | ) | ||||
| Accumulated other comprehensive income | ||||||||
| Total GD Culture Group Limited shareholders’ equity (deficits) | ( | ) | ||||||
| Noncontrolling interest | ||||||||
| Total shareholders’ equity | ||||||||
| Total liabilities and shareholders’ equity | $ | $ | ||||||
The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.
F-1
GD CULTURE GROUP LIMITED AND ITS SUBSIDIARIES
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
| For the three months ended | For the nine months ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| OPERATING EXPENSES | ||||||||||||||||
| Selling and marketing expenses | $ | - | $ | ( | ) | $ | ( | ) | $ | ( | ) | |||||
| General and administrative expenses | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
| Research and development expenses | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
| Other-than-temporary impairment losses | - | ( | ) | - | ( | ) | ||||||||||
| TOTAL OPERATING EXPENSES | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
| LOSS FROM OPERATIONS | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
| OTHER INCOME | ||||||||||||||||
| Interest income | ||||||||||||||||
| Unrealized gain on fair value changes of digital assets | - | - | ||||||||||||||
| TOTAL OTHER INCOME | ||||||||||||||||
| INCOME (LOSS) BEFORE INCOME TAX (EXPENSES) BENEFITS | ( | ) | ( | ) | ||||||||||||
| INCOME TAX (EXPENSES) BENEFITS | ( | ) | ( | ) | ||||||||||||
| NET INCOME (LOSS) | $ | $ | ( | ) | $ | $ | ( | ) | ||||||||
| Net loss attributable to noncontrolling interest | - | ( | ) | - | ( | ) | ||||||||||
| Net income (loss) attributable to shareholders of common stock | ( | ) | ( | ) | ||||||||||||
| OTHER COMPREHENSIVE INCOME (LOSS) | ||||||||||||||||
| - Foreign currency translation adjustment | ( | ) | ||||||||||||||
| - Fair value changes of convertible note receivables | - | ( | ) | - | ( | ) | ||||||||||
| OTHER COMPREHENSIVE INCOME (LOSS), net of tax | ( | ) | ||||||||||||||
| COMPREHENSIVE INCOME (LOSS), net of tax | $ | $ | ( | ) | $ | $ | ( | ) | ||||||||
| Comprehensive income (loss) attributable to noncontrolling interest | - | ( | ) | ( | ) | |||||||||||
| Comprehensive income (loss) attributable to shareholders of common stock | ( | ) | ( | ) | ||||||||||||
| BASIC WEIGHTED AVERAGE NUMBER OF COMMON STOCKS | ||||||||||||||||
| Basic earnings (loss) per share available to common shareholders | $ | $ | ( | ) | $ | $ | ( | ) | ||||||||
| DILUTED WEIGHTED AVERAGE NUMBER OF COMMON STOCKS | ||||||||||||||||
| Diluted earnings (loss) per share available to common shareholders | $ | $ | ( | ) | $ | $ | ( | ) | ||||||||
The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.
F-2
GD CULTURE GROUP LIMITED AND ITS SUBSIDIARIES
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY
For the Three and Nine Months Ended September 30, 2025
| Attributable to GD Culture Group Limited Shareholders | ||||||||||||||||||||||||||||||||||||||||||||
| Total | ||||||||||||||||||||||||||||||||||||||||||||
| Accumulated | GD Culture Group | Total | ||||||||||||||||||||||||||||||||||||||||||
| Preferred Stock | Common Stock | Additional Paid-in | Subscription | Accumulated | Other Comprehensive | Limited Shareholders’ | Non controlling | Shareholders’ Equity | ||||||||||||||||||||||||||||||||||||
| Shares | Amount | Shares | Amount | Capital | Receivable | Deficit | Income | Deficits | Interest | (Deficit) | ||||||||||||||||||||||||||||||||||
| Balance, January 1, 2025 | - | $ | - | $ | $ | $ | - | $ | ( | ) | $ | $ | ( | ) | $ | $ | ||||||||||||||||||||||||||||
| Net loss | - | - | - | - | - | - | ( | ) | - | ( | ) | - | ( | ) | ||||||||||||||||||||||||||||||
| Issuance of common stock for cash | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||||
| Foreign currency translation | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||||||
| Balance, March 31, 2025 (unaudited) | - | $ | - | $ | $ | $ | - | $ | ( | ) | $ | $ | ( | ) | $ | $ | ( | ) | ||||||||||||||||||||||||||
| Net loss | - | - | - | - | - | - | ( | ) | - | ( | ) | - | ( | ) | ||||||||||||||||||||||||||||||
| Issuance of common stock for cash | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||||
| Issuance of prefunded warrants for cash | - | - | - | - | ( | ) | - | - | - | |||||||||||||||||||||||||||||||||||
| Exercise of November 2023 Registered Warrants | - | - | ( | ) | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||
| Issuance of common stock for acquisition of certain software | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||||
| Foreign currency translation | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||||||
| Balance, June 30, 2025 (unaudited) | - | $ | - | $ | $ | $ | ( | ) | $ | ( | ) | $ | $ | $ | $ | |||||||||||||||||||||||||||||
| Net income | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||
| Issuance of common stock for acquisition of Pallas | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||||
| Capital contribution from related party | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||
| Foreign currency translation | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||
| Balance, September 30, 2025 (unaudited) | - | $ | - | $ | $ | $ | ( | ) | $ | ( | ) | $ | $ | $ | $ | |||||||||||||||||||||||||||||
The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.
F-3
GD CULTURE GROUP LIMITED AND ITS SUBSIDIARIES
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY
For the Three and Nine Months Ended September 30, 2024
| Attributable to GD Culture Group Limited Shareholders | ||||||||||||||||||||||||||||||||||||||||
| Total GD Culture | ||||||||||||||||||||||||||||||||||||||||
| Preferred Stock | Common Stock | Additional Paid-in | Accumulated | Accumulated Other Comprehensive | Group Limited Shareholders’ | Non controlling | Total Shareholders’ | |||||||||||||||||||||||||||||||||
| Shares | Amount | Shares | Amount | Capital | Deficit | Income | Equity | Interest | Equity | |||||||||||||||||||||||||||||||
| Balance, January 1, 2024 | - | $ | - | $ | $ | $ | ( | ) | $ | $ | $ | $ | ||||||||||||||||||||||||||||
| Net loss | - | - | - | - | - | ( | ) | - | ( | ) | ( | ) | ( | ) | ||||||||||||||||||||||||||
| Issuance of common stock for Cash | - | - | - | - | - | |||||||||||||||||||||||||||||||||||
| Issuance of common stock for acquisition of | - | - | - | - | ( | ) | - | |||||||||||||||||||||||||||||||||
| Exercise of pre-funded warrants | - | - | - | - | - | |||||||||||||||||||||||||||||||||||
| Exercise of November 2023 Registered Warrants | - | - | ( | ) | - | - | - | - | - | |||||||||||||||||||||||||||||||
| Foreign currency translation | - | - | - | - | - | - | ( | ) | ( | ) | ||||||||||||||||||||||||||||||
| Fair value changes of convertible notes receivable | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||
| Balance, March 31, 2024 | - | $ | - | $ | $ | $ | ( | ) | $ | $ | $ | $ | ||||||||||||||||||||||||||||
| Net loss | - | - | - | - | - | ( | ) | - | ( | ) | ( | ) | ( | ) | ||||||||||||||||||||||||||
| Issuance of common stock for acquisition of copyright | - | - | - | - | - | |||||||||||||||||||||||||||||||||||
| Foreign currency translation | - | - | - | - | - | - | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||||||||||||||||||||
| Fair value changes of convertible notes receivable | - | - | - | - | - | - | ( | ) | ( | ) | - | ( | ) | |||||||||||||||||||||||||||
| Balance, June 30, 2024 | - | $ | - | $ | $ | $ | ( | ) | $ | $ | $ | $ | ||||||||||||||||||||||||||||
| Net loss | - | - | - | - | - | ( | ) | - | ( | ) | ( | ) | ( | ) | ||||||||||||||||||||||||||
| Exercise of pre-funded warrants | - | - | ( | ) | - | - | - | - | - | |||||||||||||||||||||||||||||||
| Exercise of February 2021 Registered Warrants | - | - | ( | ) | - | - | - | - | - | |||||||||||||||||||||||||||||||
| Foreign currency translation | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||
| Fair value changes of convertible notes receivable | - | - | - | - | - | - | ( | ) | ( | ) | - | ( | ) | |||||||||||||||||||||||||||
| Balance, September 30, 2024 | - | $ | - | $ | $ | $ | ( | ) | $ | $ | $ | $ | ||||||||||||||||||||||||||||
The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.
F-4
GD CULTURE GROUP LIMITED AND ITS SUBSIDIARIES
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Nine Months ended September 30, | ||||||||
| 2025 | 2024 | |||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
| Net income (loss) | $ | $ | ( | ) | ||||
| Adjustments to reconcile net income (loss) to net cash used in operating activities: | ||||||||
| Depreciation of equipment | ||||||||
| Amortization of intangible assets | ||||||||
| Amortization of right-of-use assets | ||||||||
| Unrealized gain from fair value changes of digital assets | ( | ) | - | |||||
| Deferred income tax | ( | ) | ( | ) | ||||
| Other-than-temporary impairment losses from convertible note receivables | - | |||||||
| Other-than-temporary impairment losses from intangible assets | - | |||||||
| Changes in operating assets and liabilities | ||||||||
| Other receivables | - | ( | ) | |||||
| Prepaid and other current assets | ( | ) | ||||||
| Other payables and accrued liabilities | ||||||||
| Lease liabilities | ( | ) | ( | ) | ||||
| Taxes payable | - | |||||||
| Other payables - related party | ||||||||
| Net cash used in operating activities | ( | ) | ( | ) | ||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
| Loan to a third party | - | ( | ) | |||||
| Collection from loan to a third party | - | |||||||
| Net cash used in investing activities | - | ( | ) | |||||
| CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
| Proceeds from issuance of common stock | ||||||||
| Proceeds from issuance of prefunded warrants | - | |||||||
| Proceeds from exercise of prefunded warrants | - | |||||||
| Proceeds from related party loan | - | |||||||
| Proceeds from shareholder loan | - | |||||||
| Repayments to a related party | ( | ) | - | |||||
| Net cash provided by financing activities | ||||||||
| EFFECT OF EXCHANGE RATE CHANGE ON CASH AND CASH EQUIVALENTS | ||||||||
| NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | ( | ) | ||||||
| CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | ||||||||
| CASH AND CASH EQUIVALENTS, END OF PERIOD | $ | $ | ||||||
| SUPPLEMENTAL CASH FLOW INFORMATION: | ||||||||
| Cash paid for income tax | $ | $ | - | |||||
| Cash paid for interest | $ | - | $ | - | ||||
| NON-CASH TRANSACTIONS OF INVESTING AND FINANCING ACTIVITIES | ||||||||
| Issuance of common stock for acquisition right, title, and interest in and to the certain software | $ | $ | ||||||
| Initial recognition of right-of-use assets and lease liability | $ | - | $ | |||||
| Issuance of common stock for | $ | - | $ | |||||
| Exercise of November 2023 Registered Warrants | $ | $ | ||||||
| Exercise of pre-funded warrants pursuant to the Warrant Exchange Agreements | $ | - | $ | |||||
| Exercise of February 2021 Registered Warrants | $ | - | $ | |||||
| Issuance of common stock for acquisition of Pallas | $ | $ | - | |||||
| Capital contribution from a related party | $ | $ | - | |||||
The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.
F-5
GD CULTURE GROUP LIMITED AND SUBSIDIARIES
NOTES TO UNAUDITED INTERIM 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, is a Nevada corporation and a holding company. The Company currently conducts its operations on virtual content production (the “Virtual Content Production”) through the Company and two subsidiaries, AI Catalysis corp. (“AI Catalysis”) and Shanghai Xianzhui Technology Co., Ltd. (“SH Xianzhui”). The Company focuses its business mainly on: 1) AI-driven digital human creation and customization, and 2) Live streaming and e-commerce. The Company has relentlessly been focusing on serving its customers and creating value for them through the continual innovation and optimization of its products and services. Currently, the Company’s subsidiaries, Citi Profit Investment Holding Limited (“Citi Profit BVI”), Highlights Culture Holding Co., Limited (“Highlight HK”), Shanghai Highlight Entertainment Co., Ltd. (“Highlight WFOE”) are holding companies with no material operations.
SH Xianzhui was incorporated by Highlight
WFOE and two other shareholders on August 10, 2023. SH Xianzhui is principally engaged in the provision of social media marketing agency
service. Highlight WFOE initially owned
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 primarily focused on 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.
Acquisition of Pallas
On September 8, 2025, the Company (the “Acquirer”), Pallas
Capital Holding Ltd, a British Virgin Islands company incorporated on June 30, 2025 (“Pallas” or the “Target”),
and the shareholders of the Target (each a “Seller” and collectively, the “Sellers”) executed an agreement and
plan of securities exchange (the “Share Exchange Agreement”, and the transactions contemplated thereby, collectively, the
“Pallas Transaction”), pursuant to which, the Sellers wish to sell to the Acquirer, and the Acquirer wishes to purchase from
the Sellers,
Pallas was established for the primary purpose
of holding digital assets as a long-term reserve, with the objective of achieving potential appreciation in value. As of September 30,
2025, Pallas held
Two shareholders of the Company, who beneficially
own
Referring to FASB ASC Topic 805-10-55-5, the Company applied two steps (including step 1, screen test and step 2, evaluation of process and input) in evaluating whether the acquisition was an asset acquisition or a business combination. Pallas had no operations except for holding Bitcoin as a reserve, and substantially all of the fair value of the gross assets acquired is concentrated in its Bitcoin. Therefore, the Company decided that Pallas cannot constitute a business and such Pallas Transaction should be accounted for as an asset acquisition. The purchase consideration is measured based on the fair value of the Company’s common stock issued and the consideration is further allocated to the value of the asset acquired in the transaction. Given the related party nature of the Pallas Transaction and the fact that the acquired digital assets are highly liquid and have observable market prices, which indicated that the fair value of the assets acquired is far higher than the fair value of the common stock issued, management concluded that the such Pallas transaction indicated a capital contribution from the shareholders. Accordingly, the excess of the fair value of the digital assets acquired over the fair value of the common stock issued should be recorded as an increase in additional paid-in capital and the value of the assets acquired, which was concurrently with the determination of the value of the assets acquired under asset acquisition.
F-6
Subsidiaries of the Company
The accompanying unaudited interim condensed consolidated financial statements reflect the activities of GDC and each of the following entities:
| Name | Background | Ownership | |||
| Citi Profit BVI | ● | ||||
| Highlight HK | ● | ||||
| ● | |||||
| Highlight WFOE
| ● | ||||
| ● | |||||
| AI Catalysis | ● | ||||
| ● | |||||
| SH Xianzhui | ● | ||||
| ● | |||||
| Pallas | ● | ||||
| ● | |||||
As of the date of this report, the Company’s primary operations are focused on the live streaming market with focus on e-commerce in the United States. The Company is also working on the development of a mobile and web platform for interactive fiction—story experiences where readers make choices that branch the plot and lead to multiple endings.
Liquidity and Capital Resources
As of September 30, 2025, the Company had $
On January 23, 2025,
Green Oasis Limited, a shareholder holding less than
On March 4, 2025, the Company sold
On
May 2, 2025, the Company completed a securities offering in which it agreed to sell (i)
On October 24, 2025, the Company sold
F-7
The Company expects to continue incurring significant operating cash outflows to support its operations. Additional financing may be required to sustain the business. Management will make its best efforts to secure the necessary funding to support the Company’s operations.
The Company evaluated its ability to continue as a going concern in accordance with ASC Subtopic 205-40, Presentation of Financial Statements—Going Concern, which requires management to assess whether there is substantial doubt about the Company’s ability to continue as a going concern within one year after the date the financial statements are issued. The management assessed its liquidity position and concluded that the Company will have sufficient liquidity to meet its obligations as they become due for at least the next twelve months from the date the unaudited interim condensed consolidated financial statements are issued.
Note 2 – Summary of Significant Accounting Policies
Basis of Presentation
The accompanying unaudited interim condensed consolidated financial statements reflect all adjustments that, in the opinion of management, are of a normal recurring nature and are necessary to fairly present the financial statements for the interim periods. The unaudited interim condensed consolidated financial statements are presented in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and have been prepared in accordance with the regulations of the Securities and Exchange Commission (“SEC”) for interim financial statements. Results for the interim periods are not necessarily indicative of results to be expected for the full year. These unaudited interim condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related notes thereto included in the Company’s annual report on Form 10-K for the year ended December 31, 2024, which was filed with the SEC on March 18, 2025.
Principles of Consolidation
The unaudited interim condensed consolidated financial statements of the Company include the accounts of GDC and its wholly owned subsidiaries. All intercompany transactions and balances are eliminated upon consolidation.
Use of Estimates and Assumptions
The preparation of unaudited interim condensed consolidated 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 unaudited interim condensed consolidated financial statements and the reported amounts of revenues and expenses during the periods presented. Significant accounting estimates reflected in the Company’s unaudited interim condensed consolidated financial statements include the useful lives of intangible assets and equipment, impairment of long-lived assets, collectability of receivables, discount rate used to measure present value of lease liabilities and valuation allowance for deferred tax assets. Actual results could differ from these estimates.
Foreign Currency Translation and Transactions
The reporting currency of the Company is the U.S. dollar. The PRC subsidiaries of the Company conduct their businesses in the local currency, Renminbi (RMB), as its functional currency. Assets and liabilities are translated at the unified exchange rate as quoted set forth in the H.10 statistical release of the Federal Reserve Board at the end of the period. The statements of operations accounts are 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.
F-8
Translation adjustments included in accumulated
other comprehensive income amounted to $
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.
Cash and Cash Equivalents
As of September 30, 2025 and December 31, 2024, the Company did not have any cash equivalents. All cash were unrestricted as to withdrawal and use and were demand deposits placed with commercial banks.
Prepaid and Other Current Assets
Prepaid and other current assets are advances paid to outside vendors for services purchases. The Company has legally binding contracts with its vendors, which require any outstanding prepayments to be returned to the Company when the contract ends.
Equipment
Equipment was stated at cost less accumulated
depreciation. Depreciation is computed using the straight-line method after consideration of the estimated useful lives of the assets
and estimated residual value.
| Useful Life | Estimated Residual Value | |||||
| Office equipment and furnishing | % | |||||
The cost and related accumulated depreciation of assets sold or otherwise retired are eliminated from the accounts and any gain or loss is included in the unaudited interim condensed consolidated statements of operations. Expenditure for maintenance and repairs are charged to earnings as incurred, while additions, renewals and betterments, which are expected to extend the useful life of assets, are capitalized. The Company also re-evaluates the periods of depreciation to determine whether subsequent events and circumstances warrant revised estimates of useful lives.
Intangible Assets
Intangible assets represent software copyright
that are stated at cost, less accumulated amortization. Research and development costs associated with internally developed patents are
expensed when incurred. Amortization expense is recognized on the straight-line basis over the estimated useful lives of the assets. The
software copyrights have finite useful lives and are amortized using a straight-line method that reflects the estimated pattern in which
the economic benefits of the intangible asset are to be consumed. The Company amortizes the cost of software copyrights, over their useful
life using the straight-line method. The Company also re-evaluates the periods of amortization to determine whether subsequent events
and circumstances revised estimates of useful lives.
| Useful Life | ||
| Software copyrights |
F-9
Lease
The Company determines if an arrangement is a lease at inception. Leases that transfer substantially all of the benefits and risks incidental to the ownership of assets are accounted for as finance leases as if there was an acquisition of an asset and incurrence of an obligation at the inception of the lease. All other leases are accounted for as operating leases. The Company has no significant finance leases.
The Company recognizes lease liabilities and corresponding right-of-use assets on the balance sheet for leases. Operating lease right- of-use assets (the “ROU”) are disclosed as non-current assets in the Company’s consolidated balance sheets. Current maturities of operating lease liabilities are classified as operating lease liabilities - current, and operating lease liabilities that will be due in more than one year are disclosed as non-current liabilities on the consolidated balance sheets. Operating lease right-of-use assets and operating lease liabilities are initially recognized based on the present value of future lease payments at lease commencement. The operating lease right-of-use asset also includes any lease payments made prior to lease commencement and the initial direct costs incurred by the lessee and is recorded net of any lease incentives received. As the interest rates implicit in most of the leases are not readily determinable, the Company uses the incremental borrowing rates based on the information available at lease commencement to determine the present value of the future lease payments. Operating lease expenses are recognized on a straight-line basis over the term of the lease.
Most leases have initial terms ranging from
The Company evaluates the carrying value of ROU assets if there are indicators of impairment and reviews the recoverability of the related asset group.
The Company reassesses of a contract is or contains a leasing arrangement and re-measures ROU assets and lease liabilities upon modification of the contract. The Company will derecognize ROU assets and lease liabilities, with differences recognized in the income statement on the contract termination.
Impairment for Long-lived Assets
The Company’s determination of whether or
not an indication of impairment exists at the cash generating unit level requires significant management judgment pertaining to intangible
assets, including a software copyright of AI Box, which is used for online living-stream and a software copyright of Chat Box, which is
used for online interactive entertainment scenarios, as well as the operating Right-of-use (“ROU”) assets, including the offices
of the Company. Management considers both external and internal sources of information in assessing whether there are any indications
that the Company’s intangible assets and ROU assets are impaired. Based on the evaluation, the Company recognized impairment losses
in long-lived assets of nil and $
Digital Assets
The Company holds digital assets primarily for investment and treasury purposes rather than for use in the ordinary course of business. In accordance with ASU 2023-08, Intangibles—Goodwill and Other—Crypto Assets, digital assets are accounted for as intangible assets measured at fair value, with changes in fair value recognized immediately in earnings. Digital assets are initially recorded at cost, including acquisition-related fees. Subsequent to initial recognition, digital assets are measured at fair value at each reporting date, and unrealized gains and losses are included in the statement of operations. Upon disposal, the difference between proceeds and carrying amount is recognized as a gain or loss in earnings. The Company discloses the number of units held, cost basis, fair value, and any significant restrictions on the ability to sell or transfer digital assets in the Note 3 to the consolidated financial statements.
Assets Acquisition
The Company evaluates each transaction to determine whether it should be accounted for as a business combination or an asset acquisition in accordance with ASC 805, Business Combinations. A transaction is accounted for as an asset acquisition when substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or a group of similar identifiable assets, and the acquired set does not include a substantive process capable of producing outputs.
In assessing whether substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset, the Company considers the nature of the assets, their risks and characteristics, and whether they represent a group of similar assets as defined under ASC 805-10-55-5A through 55-5C.
For transactions accounted for as asset acquisitions, the purchase consideration is measured based on the fair value of the consideration transferred, which generally consists of the fair value of equity securities or other assets issued. The acquired assets and assumed liabilities are recognized based on their relative fair values, and no goodwill is recognized.
F-10
Fair Value Measurement
The accounting standard regarding fair value of financial instruments and related fair value measurements defines financial instruments and requires disclosure of the fair value of financial instruments held by the Company. The Company considers the carrying amount of cash, other receivables, other payables and accrued liabilities to approximate their fair values because of their short-term nature.
The accounting standards define fair value, establish a three-level valuation hierarchy for disclosures of fair value measurement and enhance disclosure requirements for fair value measures. The three levels are defined as follow:
| ● | Level 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. |
| ● | Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the assets or liability, either directly or indirectly, for substantially the full term of the financial instruments. |
| ● | Level 3 inputs to the valuation methodology are unobservable and significant to the fair value. |
As of September 30, 2025 and December 31, 2024, the carrying values of cash, other receivables and other payables approximate their fair values due to the short-term nature of the instruments.
Selling and Marketing Expenses
Selling and marketing expenses mainly consist of marketing related expenses.
General and Administrative Expenses
General and administrative expenses mainly consist of (i) staff cost, rental and depreciation related to general and administrative personnel, (ii) professional expenses.
Research and Development Expenses
Research and development expenses mainly consist of outsourced research and development expenses. Research and development expenses are expensed as incurred.
Income Taxes
The Company accounts for income taxes in accordance with U.S. GAAP. The charge for taxation is based on the results for the fiscal year as adjusted for items, which are non-assessable or disallowed. It is calculated using tax rates that have been enacted or substantively enacted by the balance sheet date.
Deferred taxes are accounted for using the asset and liability method in respect of temporary differences arising from differences between the carrying amount of assets and liabilities in the unaudited interim condensed consolidated financial statements and the corresponding tax basis used in the computation of assessable tax profit. In principle, deferred tax liabilities are recognized for all taxable temporary differences. Deferred tax assets are recognized to the extent that it is probable that taxable profit will be available against which deductible temporary differences can be utilized. Deferred tax is calculated using tax rates that are expected to apply to the period when the asset is realized or the liability is settled. Deferred tax is charged or credited in the income statement, except when it is related to items credited or charged directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Current income taxes are provided for in accordance with the laws of the relevant taxing authorities.
An uncertain tax position is recognized as a benefit
only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination
being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than
F-11
Interest
Interest income is mainly generated from bank deposits and other interest earning financial assets and is recognized on an accrual basis using the effective interest method.
Net Income (Loss) per Common Stock
Basic income (loss) per share is computed by dividing income (loss) available to common shareholders of the Company by the weighted average common stocks outstanding during the period. Diluted income (loss) per share takes into account the potential dilution that could occur if securities or other contracts to issue common stocks were exercised and converted into common stocks.
In May 2023, November 2023 and May 2025, the Company issued and sold
pre-funded warrants that are exercisable for shares of common stock at a nominal exercise price. In accordance with ASC 260, these prefunded
warrants are considered to be common stock equivalents and are included in the calculation of basic and diluted earnings per share when
the inclusion is dilutive. As the exercise price of the prefunded warrants is nominal and substantially all conditions necessary to exercise
the warrants have been met, the prefunded warrants are included in the weighted average shares outstanding for both basic and diluted
income (loss) per share. As of September 30, 2025,
For the nine months ended September 30, 2025 and
2024,
Comprehensive Income (Loss)
Comprehensive income (loss) is defined as the changes in equity of the Company during a year from transactions and other events and circumstances excluding transactions resulting from investments by owners and distributions to owners. Accumulated other comprehensive income of the Company includes the foreign currency translation adjustments and unrealized gains or losses on available-for-sale investments.
Reclassification
Certain prior period amounts have been reclassified to conform to the current period presentation.
Recently Accounting Pronouncements
In November 2023, the FASB issued ASU 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures”, which is intended to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The purpose of the amendment is to enable investors to better understand an entity’s overall performance and assess potential future cash flows. The guidance is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. The guidance is to be applied retrospectively to all prior periods presented in the financial statements. The Company adopted ASU 2023-07 for the year ended December 31, 2024. The adoption has no significant impact on the Company’s financial statements and disclosure.
In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (ASU 2023-09), which requires disclosure of incremental income tax information within the rate reconciliation and expanded disclosures of income taxes paid, among other disclosure requirements. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024. Early adoption is permitted. The Company’s management does not believe the adoption of ASU 2023-09 will have a material impact on its financial statements and disclosures.
F-12
In November 2024, the FASB issued ASU No. 2024-03, Disaggregation of Income Statement Expenses. This new guidance is designed to improve the disclosures about the types of expenses, including employee compensation, depreciation, and amortization, and costs incurred related to inventory and manufacturing activities. ASU 2024-03 is effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027 on a prospective basis with optional retrospective application. Early adoption is permitted. The Company is currently assessing the impact that adopting this new accounting standard will have on its consolidated financial statements.
The Company does not believe other recently issued but not yet effective accounting standards, if currently adopted, would have a material effect on the Company’s unaudited interim condensed consolidated balance sheets, unaudited interim condensed consolidated statements of operations and comprehensive income (loss) and unaudited interim condensed consolidated statements of cash flows.
Note 3 – Fair Value of Financial Instruments
ASC 820, Fair Value Measurements states that fair
value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly
transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions
that market participants would use in pricing an asset or a liability. The three-tiered fair value hierarchy, which prioritizes which
inputs should be used in measuring fair value, is comprised of: (Level I) observable inputs such as quoted prices in active markets; (Level
II) inputs other than quoted prices in active markets that are observable either directly or indirectly and (Level III) unobservable inputs
for which there is little or no market data. The fair value hierarchy requires the use of observable market data when available in determining
fair value.
September 30, 2025 (Unaudited) | December 31, 204 | |||||||||||||||||||||||||||||||
| Fair Value | Level I | Level II | Level III | Fair Value | Level I | Level II | Level III | |||||||||||||||||||||||||
| Digital assets (1) | $ | $ | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
| Total | $ | $ | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
As of September 30, 2025, the Company’s digital assets were comprised
of
The fair value of Bitcoin is determined based on quoted prices in active markets. The Company does not apply amortization to digital assets. Gains and losses resulting from changes in fair value are presented within “Other income” in the consolidated statements of operations.
As of September 30, 2025, the fair value of the Company’s Bitcoin
holdings was $
F-13
Note 4 – Prepaid and Other Current Assets
Prepaid and other current assets consisted of the following as of September 30, 2025 and December 31, 2024:
| September 30, 2025 | December 31, 2024 | |||||||
| (unaudited) | ||||||||
| Prepayments of operating lease | $ | $ | - | |||||
| Prepaid offering costs | - | |||||||
| Prepaid research and development fee* | - | |||||||
| Other prepayments | - | |||||||
| Total prepaid and other current assets | $ | $ | - | |||||
| * |
Note 5 – Equipment, net
Equipment, net consisted of the following as of September 30, 2025 and December 31, 2024:
| September 30, 2025 | December 31, 2024 | |||||||
| (unaudited) | ||||||||
| Office equipment and furniture | $ | $ | ||||||
| Subtotal | ||||||||
| Less: accumulated depreciation | ( | ) | ( | ) | ||||
| Total | $ | $ | ||||||
Depreciation expense for the three months ended
September 30, 2025 and 2024 amounted to $
Note 6 – Intangible Assets, net
Intangible assets consisted of the following as of September 30, 2025 and December 31, 2024:
| September 30, 2025 | December 31, 2024 | |||||||
| (unaudited) | ||||||||
| Software | $ | $ | ||||||
| Add: purchase of software* | - | |||||||
| Subtotal | ||||||||
| Less: accumulated amortization | ( | ) | ( | ) | ||||
| Accumulated impairment | ( | ) | ( | ) | ||||
| Total | $ | $ | ||||||
| * |
F-14
Amortization expenses for the three months ended
September 30, 2025 and 2024 were $
As of September 30, 2025, the net book value of
software copyrights was $
Future amortization of intangible assets are as follows:
| Amortization | ||||
| Remaining of FY2025 | ||||
| FY2026 | ||||
| FY2027 | ||||
| FY2028 | ||||
| FY2029 | ||||
| FY2030 | ||||
| Total future amortization of intangible assets | $ | |||
Note 7 – Other Payables and Accrued Liabilities
Other payables and accrued liabilities consisted of the following as of September 30, 2025 and December 31, 2024:
| September 30, | December 31, | |||||||
| 2025 | 2024 | |||||||
| (unaudited) | ||||||||
| Professional service fee | $ | $ | ||||||
| Payroll | ||||||||
| Advance from an investor (1) | - | |||||||
| Amounts due to shareholder (2) | - | |||||||
| Others | ||||||||
| Total | $ | $ | ||||||
| (1) |
| (2) |
Note 8 – Related Party Balances and Transactions
Other payables – related parties:
| Name of related party | Relationship | Nature | September 30, 2025 | December 31, 2024 | ||||||||
| (unaudited) | ||||||||||||
| Xiaojian Wang | $ | $ | ||||||||||
| Xiaojian Wang | - | |||||||||||
| Xiaojian Wang | ||||||||||||
| Zihao Zhao | ||||||||||||
| Zihao Zhao | ||||||||||||
| Total | $ | $ | ||||||||||
| * |
Related Party Transaction
As disclosed in Note 1, the Company purchased
F-15
As of September 30, 2025 and December 31, 2024,
the balance of other payables - related parties were $
For the three months ended September 30, 2025
and 2024, the Company recorded compensation expenses to its officers amounted to $
For the nine months ended September 30, 2025 and
2024, the Company recorded compensation expenses to its officers amounted to $
Note 9 – Leases
Leases are classified as operating leases or finance
leases in accordance with ASC 842 Leases. The Company’s operating leases mainly related to the rights to use building and
office facilities. For leases with terms greater than 12 months, the Company records the related asset and liability at the present
value of lease payments over the term.
| September 30, 2025 | December 31, 2024 | |||||||
| (unaudited) | ||||||||
| Weighted average remaining lease term: | ||||||||
| Operating lease | ||||||||
| Weighted average discount rate: | ||||||||
| Operating lease | % | % | ||||||
The balances for the operating leases where the Company is the lessee are presented as follows within the consolidated balance sheets:
| September 30, 2025 | December 31, 2024 | |||||||
| (unaudited) | ||||||||
| Operating lease right-of-use assets, net | ||||||||
| Operating lease | $ | $ | ||||||
| Lease liabilities | ||||||||
| Current portion of operating lease liabilities | ||||||||
| Non-current portion of operating lease liabilities | ||||||||
| $ | $ | |||||||
F-16
Future lease payments under operating leases as of September 30, 2025 were as follows:
| Operating Leases | ||||
| Remaining of FY2025 | ||||
| FY2026 | ||||
| FY2027 | ||||
| FY2028 | ||||
| FY2029 | ||||
| Total lease payments | $ | |||
| Less: imputed interest | ||||
| Present value of lease liabilities (1) | $ | |||
| (1) |
Lease expense for all the Company’s operating
leases for the three months ended September 30, 2025 and 2024 were $
Lease expense for all the Company’s operating
leases for the nine months ended September 30, 2025 and 2024 were $
For the three and nine months ended September
30, 2025, the Company incurred $
Note 10 – Taxes
Income Tax
United States
GDC and AIC are corporations organized in the state of Nevada and operate primarily in the state of New York. As a result, they are subject to U.S. federal corporate income tax as well as state and local income taxes in New York.
For the nine months ended September 30, 2025 and 2024, the applicable statutory tax rates were as follows:
| ● | Federal corporate income tax rate: |
| ● | New York State corporate income tax rate: |
| ● | New York City business corporation tax rate: |
| ● | Metropolitan Transportation Business Tax Surcharge (MTA Tax): |
The Company’s effective tax rate may differ from the statutory rates due to various factors, including non-deductible expenses, tax credits, valuation allowances, and the impact of state and local taxes. Additionally, the Company evaluates uncertain tax positions in accordance with ASC 740, recognizing tax benefits only if it is more likely than not that the position will be sustained upon examination.
F-17
British Virgin Islands
Citi Profit BVI and Pallas are incorporated in the British Virgin Islands and are not subject to tax on income or capital gains under current British Virgin Islands law. In addition, upon payments of dividends by these entities to their shareholders, no British Virgin Islands withholding tax will be imposed.
Hong Kong
Highlight HK is incorporated in Hong Kong and
are subject to Hong Kong Profits Tax on the taxable income as reported in its statutory financial statements adjusted in accordance with
relevant Hong Kong tax laws. Highlight HK is subject to Hong Kong profit tax at a rate of
PRC
Highlight WFOE and SH Xianzhui are governed by
the income tax laws of the PRC and the income tax provision in respect to operations in the PRC is calculated at the applicable tax rates
on the taxable income for the periods based on existing legislation, interpretations and practices in respect thereof. Under the Enterprise
Income Tax Laws of the PRC (the “EIT Laws”), qualified small and micro enterprises with annual taxable income not exceeding
RMB
The current and deferred components of income tax expenses from continuing operations appearing in the unaudited interim condensed consolidated statements of operations are as follows:
| For the nine months ended September 30, | ||||||||
| 2025 | 2024 | |||||||
| Current tax expenses | (unaudited) | (unaudited) | ||||||
| Federal | $ | ( | ) | $ | - | |||
| State | ( | ) | - | |||||
| Total current tax expenses | $ | ( | ) | $ | - | |||
| Deferred tax benefits | ||||||||
| Federal | $ | $ | ||||||
| State | - | - | ||||||
| Total deferred tax benefits | $ | $ | ||||||
| Total (expenses) benefits for income taxes | $ | ( | ) | |||||
F-18
The Company is subject to U.S. federal income
tax as well as state income tax in certain jurisdictions. The tax years 2022 to 2024 remain open to examination by the major taxing
jurisdictions to which the Company is subject.
| For the nine months ended September 30, 2025 | For the nine months ended September 30, 2024 | |||||||
| (unaudited) | (unaudited) | |||||||
| Statutory tax rate | ||||||||
| Federal | % | % | ||||||
| State (net of federal benefit) | ( | )% | - | |||||
| Foreign tax | ( | )% | ( | )% | ||||
| Amortization of intangible assets | % | - | ||||||
| Change in valuation allowance | % | ( | )% | |||||
| State capital base tax | ( | )% | - | % | ||||
| Others | % | ( | )% | |||||
| Effective tax rate | ( | )% | ( | )% | ||||
As of September 30, 2025 and December 31, 2024, income tax payable
to US tax authorities was $
The principal components of the Company’s deferred income tax assets and liabilities as of September 30, 2025 and December 31, 2024 were as follows:
| September 30, | December 31, | |||||||
| 2025 | 2024 | |||||||
| (unaudited) | ||||||||
| Deferred tax assets | ||||||||
| Net operating losses carried forward | $ | $ | ||||||
| Provision of credit loss on note receivable and loan receivable | ||||||||
| Impairment loss of intangible assets | ||||||||
| Amortization of intangible assets | - | |||||||
| Lease liability | ||||||||
| Total deferred tax assets | $ | $ | ||||||
| Less: Valuation allowance | ( | ) | ( | ) | ||||
| Deferred tax assets, net of valuation allowance | $ | $ | ||||||
| Deferred tax liabilities | ||||||||
| Right - Of - Use assets | $ | ( | ) | $ | ( | ) | ||
| Amortization of intangible assets | - | ( | ) | |||||
| Total deferred tax liabilities | $ | ( | ) | $ | ( | ) | ||
| Total deferred tax liabilities, net | $ | - | $ | ( | ) | |||
As of September 30, 2025, the Group had tax losses carry forwards of
approximately $
Management believes that the realization of the
benefits from these losses appears uncertain due to the Company’s operating history and continued losses in the United States. Accordingly,
the Company has provided a
F-19
Note 11 – Concentration of Credit Risk
Financial instruments that potentially subject the Company to concentration of credit risk consist principally of cash deposits.
Accounts at each institution
are insured by the Federal Deposit Insurance Corporation (“FDIC”) up to $
Note 12 – Equity
Statutory Reserves and Restricted Net Assets
In accordance with the PRC Regulations on Enterprises
with Foreign Investment, an enterprise established in the PRC with foreign investment is required to make appropriations to certain statutory
reserves, namely a general reserve fund, an enterprise expansion fund, a staff welfare fund and a bonus fund, all of which are appropriated
from net profit as reported in its PRC statutory accounts. A foreign invested enterprise is required to allocate at least
In addition, under PRC laws and regulations, the Company’s PRC subsidiaries are restricted in their ability to transfer their net assets to the Company in the form of dividend payments, loans or advances. Amounts of restricted net assets include paid up capital and statutory reserve funds of the Company’s PRC subsidiaries. As of September 30, 2025 and December 31, 2024, the Company did not have any restricted net assets.
Furthermore, cash transfers from the Company’s PRC subsidiaries to the Company’s subsidiaries outside of the PRC are subject to the PRC government control of currency conversion. Shortages in the availability of foreign currency may restrict the ability of the Company’s PRC subsidiaries to remit sufficient foreign currency to pay dividends or other payments to the Company, or otherwise satisfy their foreign currency denominated obligations.
Common Stock
On January 11, 2024, the Company issued the
In March 2024, the Company entered into a placement agency agreement (the “March 2024 Placement Agency Agreement”), with Univest Securities, LLC (“Univest”), pursuant to which, Univest agrees to use its reasonable best efforts to sell the Company’s common stock in a registered direct offering and a concurrent private placement (the “March 2024 Offering”). Univest has no obligation to buy any of the securities from the Company or to arrange for the purchase or sale of any specific number or dollar amount of securities.
Pursuant to the March 2024 Offering, an aggregate
of
F-20
On May 31, 2024, the Company entered into a software
purchase agreement with Shanxi Gangdong Cultural Media Co., Ltd., a seller unaffiliated with the Company (the “SGCM”). Pursuant
to the agreement, the Company agreed to purchase and SGCM agreed to sell all of SGCM’s right, title, and interest in and to the
certain software. The purchase price of the software shall be $
From February 2024 to October 2024,
From March 2024 to October 2024,
In August 2024,
On February 10, 2025, the Company entered into
an At-The-Market Issuance Sales Agreement (the “ATM Agreement”) with Univest as the sales agent (the “February 2025
Offering”). Pursuant to the ATM Agreement, the Company may issue and sell from time to time, shares of its common stock having an
aggregate offering price of not more than $
On March 4, 2025, the Company entered into a securities
purchase agreement (the “March 2025 Securities Purchase Agreement”) with certain investors for the sale of
On May 2, 2025, the Company entered into a securities
purchase agreement (the “May 2025 Securities Purchase Agreement”) with certain investors for the sale of
On April 28, 2025, the Company entered into a
software purchase agreement (the “Agreement”) with Gongzheng Xu and Qing Wang, who are unaffiliated with the Company at the
time (collectively, the “GXQW”). Pursuant to the Agreement, the Company agreed to purchase and the GXQW agreed to sell all
of GXQW’s right, title, and interest in and to the certain software (the “Chat Box”). The purchase price of the software
shall be payable in the form of issuance of
F-21
On September 8 2025, the Company, Pallas and the
Sellers executed the Share Exchange Agreement, pursuant to which, the Sellers wish to sell to the Acquirer, and the Acquirer wishes to
purchase from the Sellers,
As of September 30, 2025 and December 31, 2024,
the total outstanding shares of the Company’s common stock were
Warrants
Placement Agent Warrants
In March 2024, the Company entered into a placement agency agreement (the “March 2024 Placement Agency Agreement”), with Univest, pursuant to which, Univest agrees to use its reasonable best efforts to sell the Company’s common stock in a registered direct offering and a concurrent private placement (the “March 2024 Offering”). Univest has no obligation to buy any of the securities from the Company or to arrange for the purchase or sale of any specific number or dollar amount of securities.
In connection with the March 2024 Offering, the
Company issued
As of September 30, 2025 and December 31, 2024,
Prefunded Warrants
In connection with the May 2025 Offering, the
Company issued
From February 2024 to October 2024, holders of
As of September 30, 2025 and December 31, 2024,
Registered Warrants
On March 26, 2024, October 16, 2024 and October
17, 2024, holders of
As of September 30, 2025 and December 31, 2024,
February 2021 Registered and Unregistered Warrants
In August 2024, holders of
The summary of warrant activities for the nine months ended September 30, 2025 were as follows:
| Warrants | Exercisable Into Number of | Weighted Average Exercise | Average Remaining Contractual | |||||||||||||
| Outstanding | Shares | Price | Life | |||||||||||||
| December 31, 2024 | $ | |||||||||||||||
| Granted | - | |||||||||||||||
| Exercised | - | - | ||||||||||||||
| September 30, 2025 (unaudited) | $ | |||||||||||||||
F-22
The summary of warrant activities for the nine months ended September 30, 2024 were as follows:
| Warrants | Exercisable Into Number of | Weighted Average Exercise | Average Remaining Contractual | |||||||||||||
| Outstanding | Shares | Price | Life | |||||||||||||
| December 31, 2023 | $ | |||||||||||||||
| Granted | ||||||||||||||||
| Exercised | - | - | ||||||||||||||
| September 30, 2024 (unaudited) | $ | |||||||||||||||
Note 13 – Commitments and Contingencies
Contingencies
From time to time, the Company may be subject to certain legal proceedings, claims and disputes that arise in the ordinary course of business. Although the outcomes of these legal proceedings cannot be predicted, the Company does not believe these actions, in the aggregate, will have a material adverse impact on its financial position, results of operations or liquidity.
Note 14 – Segment Reporting
In November 2023, the FASB issued ASU 2023-07 Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (“ASU 2023-07”), which improved the reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses enabling investors to better understand an entity’s overall performance and assess potential future cash flows. ASU 2023-07 requires entities with a single reportable segment to provide all the disclosures required by the amendments in ASU 2023-07 and all existing segment disclosures in Segment Reporting (Topic 280). ASU 2023-07 is effective for annual periods on January 1, 2024, and interim periods beginning on January 1, 2025. The Group adopted this standard for its 2024 annual financial statements and applied this standard retrospectively for all prior periods presented in the financial statements. ASU 2023-07 has no material impact on the Group’s consolidated financial statements.
The Company operates and manages its business
as a single segment and has
The Company concluded that consolidated net income (loss) reported in the consolidated statements of operations and comprehensive income (loss) is the measure of segment profitability, and consolidated total assets reported in the consolidated balance sheets is the measure of segment assets. The CODM refers to consolidated operating results and financial condition when addressing strategic and operational matters and allocating resources. Significant expense categories regularly provided to and reviewed by the CODM are those presented in the consolidated statements of operations and comprehensive income (loss). As substantially all of the Company’s long-lived assets are located in the United States, and substantially all of the Company’s expenses are derived from within the United States, no geographical segments are presented.
Note 15 – Subsequent events
The Company evaluated subsequent events and transactions that occurred after the balance sheet date up to November 3, 2025, which is the date that the unaudited interim condensed consolidated financial statements were available to be issued. Based on this review, other than disclosed below, the Company did not identify any subsequent event that would have required adjustment or disclosure in the unaudited interim condensed consolidated financial statements.
On October 8, 2025, the Company filed an amendment
to its Articles of Incorporation to increase its authorized capital stock. The number of authorized shares of common stock was increased
from
On October 24, 2025, the Company entered into
securities purchase agreements (the “October 2025 Securities Purchase Agreement”) with certain accredited investor, pursuant
to which the Company agreed to issue and sell, in a private placement (the “October 2025 Private Placement”), an aggregate
of
Pursuant to the October 2025 Securities Purchase Agreement, the Company has agreed to use commercially reasonable efforts to, within sixty (60) calendar days after the date of the October 2025 Securities Purchase Agreement, file a registration statement on the appropriate form providing for the resale by the Investor of the Shares.
In connection with the October 2025 Private Placement, on October 24,
2025, the Company entered into a placement agency agreement (the “October 2025 Placement Agency Agreement”) with Univest (the
“Placement Agent”). The Company agreed to pay the Placement Agent a total cash fee equal to seven percent (
F-23
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The following discussion and analysis of the results of our operations and financial condition should be read in conjunction with our unaudited condensed financial statements, and the notes to those unaudited condensed financial statements that are included elsewhere in this Report. All monetary figures are presented in U.S. dollars, unless otherwise indicated.
Our Management’s Discussion and Analysis contains not only statements that are historical facts, but also statements that are forward-looking. Forward-looking statements are, by their very nature, uncertain and risky. These risks and uncertainties include international, national, and local general economic and market conditions; our ability to sustain, manage, or forecast growth; our ability to successfully make and integrate acquisitions; new product development and introduction; existing government regulations and changes in, or the failure to comply with, government regulations; adverse publicity; competition; the loss of significant customers or suppliers; fluctuations and difficulty in forecasting operating results; change in business strategy or development plans; business disruptions; the ability to attract and retain qualified personnel; the ability to protect technology; the risk of foreign currency exchange rate; and other risks that might be detailed from time to time in our filings with the SEC.
Although the forward-looking statements in this Report reflect the good faith judgment of our management, such statements can only be based on facts and factors currently known by them. Consequently, and because forward-looking statements are inherently subject to risks and uncertainties, the actual results and outcomes may differ materially from the results and outcomes discussed in the forward-looking statements. You are urged to carefully review and consider the various disclosures made by us in this report as we attempt to advise interested parties of the risks and factors that may affect our business, financial condition, and results of operations and prospects.
Overview
GD Culture Group Limited, formerly known as Code Chain New Continent Limited, is a Nevada corporation and a holding company. The Company currently conducts its operations on virtual content production (the “Virtual Content Production”) through the Company and two subsidiaries, AI Catalysis and Shanghai Xianzhui. The Company focuses its business mainly on 1) AI-driven digital human creation and customization; and 2) Live streaming and e-commerce. The company has relentlessly been focusing on serving its customers and creating value for them through the continual innovation and optimization of its products and services. The Company’s current subsidiaries, Citi Profit, Highlight HK, Highlight WFOE are holding companies with no material operations.
SyncWaveX is an AI-powered web-based video generation tool, engineered to enable users to synthesize virtual human videos with precise lip synchronization. Utilization involves text input and selection from a library of integrated character models and auditory profiles. The core technological foundation is comprised of speech synthesis, facial expression emulation, and lip-synchronization algorithms. This solution is primarily directed towards content creators, facilitating the rapid production of spoken-word videos; educational and corporate entities, for the transformation of curricular materials into illustrative video content; e-commerce vendors, for the provision of 24-hour digital broadcast capabilities; and individual users, for the creation of engaging social media content. Foundational functionalities are accessible at no cost, subject to daily generative output constraints. The principal revenue model is predicated upon personalized customization services, wherein users may upload photographic and vocal data to cultivate proprietary digital replicas. Upon depletion of complimentary allocation, a tiered fee structure, contingent on temporal duration or generative frequency, is instituted. The platform also accommodates horizontal and vertical aspect ratios, ensuring cross-platform compatibility, thereby fostering the pervasive integration of AI-driven digital human technology across creative and commercial landscapes.
The Company aims to generate revenue from customization services subscriptions.
The Company is also working on the development of a mobile and web platform for interactive fiction—story experiences where readers make choices that branch the plot and lead to multiple endings.
2
Recent Development
Offering
On March 26, 2024, the Company issued 810,277 shares of common stock in a registered direct offering. See Note 12 of the notes to the unaudited interim condensed consolidated financial statements.
On February 10, 2025, the Company entered into an At-The-Market Issuance Sales Agreement (the “ATM Agreement”) with Univest as the sales agent (the “February 2025 Offering”). Pursuant to the ATM Agreement, the Company may issue and sell from time to time, shares of its common stock having an aggregate offering price of not more than $10,000,000 through the sales agent or any of its sub-agent(s) or other designees, acting as sales agent. Up to the date the unaudited interim condensed consolidated financial statements were issued, the Company has not issued or sold any shares under the ATM Agreement.
On March 4, 2025, the Company entered into a securities purchase agreement (the “March 2025 Securities Purchase Agreement”) with certain investor for the sale of 1,115,600 shares of common stock at $0.896379 per share (the “March 2025 Offering”), generating gross proceeds in the amount of $1,000,000, before deducting underwriter’s fees and accountable expenses and other estimated expenses. The Company used the proceeds from the offering for working capital purposes. Upon closing of the March 2025 Offering, the Company paid $90,000 cash for underwriting, which consists of a total cash fee of $70,000, equal to seven percent (7%) of the aggregate gross proceeds raised in the March 2025 Offering and reimbursement of reasonable fees and expenses of $20,000 for the underwriter’s legal counsel and due diligence analysis expenses.
On May 2, 2025, the Company entered into a securities purchase agreement (the “May 2025 Securities Purchase Agreement”) with certain investors for the sale of 1,115,600 shares of common stock at approximately $0.524 per share and 9,380,582 pre-funded warrants (the “May 2025 Pre-Funded Warrants”) at approximately $0.523 per warrant (the “May 2025 Offering”). Up to the date of the unaudited condensed interim financial statements were issued, The Company received $4,478,000 in proceeds for subscription of 1,115,600 shares of its common stock and 7,468,536 pre-funded warrants. The offering remains ongoing and has not yet been fully completed. Transaction costs incurred through the reporting date included underwriter’s fees of $313,460 and a $20,000 reimbursement for the underwriter’s legal counsel and due diligence expenses. Net proceeds from the offering, after deducting these expenses, will be $5,095,000. As of September 30, 2025, the Company used the proceeds from the offering for working capital purposes.
Pursuant to the May 2025 Securities Purchase Agreement, the Company has agreed to use commercially reasonable efforts to, within sixty (60) calendar days after the date of the May 2025 Securities Purchase Agreement, file a registration statement on the appropriate form providing for the resale by the investors of the May 2025 Offering.
On May 11, 2025, the Company entered into a Common Stock Purchase Agreement with an investor, pursuant to which the Company shall have the right to require the investor to purchase, from time to time, up to a cumulative total of $300,000,000 worth of the Company’s common stock. The Company plans to use the proceeds from the offering, if any, to invest in Bitcoin and OFFICIAL TRUMP and for general corporate purposes. The common stock will be issued and sold by the Company to the investor pursuant to a registration statement effective under the Securities Act of 1933, as amended (the “Securities Act”) or, if there is no effective registration statement registering, or no current prospectus available for the issuance of the common stock issuable pursuant to the Agreement, in reliance upon the exemptions from the registration requirements of the Securities Act afforded by Section 4(a)(2) of the Securities Act and Rule 506(b) of Regulation D promulgated thereunder. On September 29, 2025, the Company issued 39,189,344 shares of common stock for acquisition of Bitcoin, as disclosed below, in section “Acquisition of Pallas”.
On October 24, 2025, the Company entered into securities purchase agreements (the “October 2025 Securities Purchase Agreement”) with certain accredited investor, pursuant to which the Company agreed to issue and sell, in a private placement (the “October 2025 Private Placement”), an aggregate of 1,333,334 shares of the Company’s common stock at a purchase price of $2.10 per share, for gross proceeds in the amount of $2,800,000. The Company plans to use the process for working capital and general corporate purposes.
Pursuant to the October 2025 Securities Purchase Agreement, the Company has agreed to use commercially reasonable efforts to, within sixty (60) calendar days after the date of the October 2025 Securities Purchase Agreement, file a registration statement on the appropriate form providing for the resale by the Investor of the Shares.
In connection with the October 2025 Private Placement, on October 24, 2025, the Company entered into a placement agency agreement (the “October 2025 Placement Agency Agreement”) with Univest (the “Placement Agent”). The Company agreed to pay the Placement Agent a total cash fee equal to seven percent (7%) of the aggregate gross proceeds raised in the October 2025 Private Placement. The Company has also agreed to reimburse the Placement Agent for all reasonable and out-of-pocket expenses incurred in connection with the Private Placement, including reasonable fees and expenses of the Placement Agent’s legal counsel and due diligence analysis up to $20,000. The Company also paid $40,000 legal fee to third party upon closing of the October 2025 Private Placement.
3
Nasdaq Compliance
On May 13, 2024, the Company received a written notice from the Listing Qualifications Department of the Nasdaq Stock Market, LLC (“Nasdaq”) notifying the Company that, based on the closing bid price of the Company’s common stock was below $1.00 for the last 30 consecutive trading days, the Company no longer complies with the minimum bid price requirement (the “Minimum Bid Price Requirement”) for continued listing on the Nasdaq Capital Market as set forth in Nasdaq Listing Rule 5450(a)(1). Pursuant to Nasdaq Listing Rule 5810(c)(3)(A), the Company has an initial compliance period of 180 calendar days, or until November 11, 2024, to regain compliance with the Minimum Bid Price Requirement. Between June 11, 2025 to June 25, 2025, the Company has maintained a market value of $35 million or greater for ten (10) consecutive business days. On June 26, 2025, the Staff confirmed that the Company meets the $35 million market value standard as required by the Nasdaq Capital Market set forth in Listing Rule 5550(b)(2). Accordingly, this matter is now closed.
On June 18, 2024, the Company received a letter from Nasdaq stating that because the Company’s common stock had a closing bid price at or above $1.00 per share for 10 consecutive business days, the Company had regained compliance with the Minimum Bid Price Requirement on June 18, 2024, and that the matter is now closed.
Software Purchase Agreement
On April 28, 2025, the Company entered into a software purchase agreement (the “Agreement”) with Gongzheng Xu and Qing Wang (the “GXQW”), who are unaffiliated with the Company. Pursuant to the Agreement, the Company agreed to purchase and the GXQW agreed to sell all of GXQW’s right, title, and interest in and to the certain software (the “Chat Box”). The purchase price of the software shall be payable in the form of an issuance of 2,444,295 shares of the Company’s common stock. On April 28, 2025, the Company issued 2,444,295 shares of its common stock to GXQW and the transaction was completed. The Company plans to use the software to develop its AI business.
Acquisition of Pallas
On September 8 2025, the Company (the “Acquirer”), Pallas Capital Holding Ltd, a British Virgin Islands company incorporated on June 30, 2025 ( “Pallas” or the “Target”), and the shareholders of the Target (each a “Seller” and collectively, the “Sellers”) executed an agreement and plan of securities exchange (the “Share Exchange Agreement”, and the transactions contemplated thereby, collectively, the “Transaction”), pursuant to which, the Sellers wish to sell to the Acquirer, and the Acquirer wishes to purchase from the Sellers, 100% interest in and to the ordinary shares of the Target (the “Target Shares”). In exchange for the Target Shares, the Acquirer shall issue an aggregate of 39,189,344 shares of the Company’s common stock (the “GDC Shares”), of the Acquirer in book entry form in such amount and to such Sellers. On September 29, 2025, the Sellers transferred to Acquirer 10,000 shares of Target Shares, being all of the issued and outstanding ordinary shares of the Target, and received in exchange certificates representing the 39,189,344 GDC Shares. Thereafter, Pallas became a wholly-owned subsidiary of the Company.
Pallas was established for the primary purpose of holding digital assets as a long-term reserve, with the objective of achieving potential appreciation in value. As of September 30, 2025, Pallas held 7,500 units of Bitcoin.
The Transaction is accounted for as an asset acquisition, as the Target’s assets primarily consist of digital assets (Bitcoin). The purchase consideration is measured based on the fair value of the Company’s common stock issued as consideration.
Two shareholders of the Company, who beneficially own 11.4%, in the aggregate, of the outstanding shares of common stock of the Company, immediately before the execution of the Transaction, are the directors and share voting and dispositive power over the shares issued by the Target. Accordingly, the Transaction constitutes a related party transaction for the Company pursuant to Item 404 of Regulation S-K. Given the related party nature of the Transaction and the fact that the acquired digital assets are highly liquid and have observable market prices, management concluded that the fair value of the assets acquired is more reliably measurable than the fair value of the common stock issued as consideration.
As a result, management determined that the Transaction lacks commercial substance and, in substance, represents a capital contribution from the related shareholders. Accordingly, the excess of the fair value of the digital assets acquired over the fair value of the common stock issued is recorded as an increase in investment with a corresponding credit to additional paid-in capital.
Key Factors that Affect Operating Results
Competition
E-commerce and live streaming are a competitive industry. Our competition varies and includes content creators on TikTok and other social media platforms. Each of these competitors competes with us based on quality of content, activeness and responsiveness on the social placement, product selection, product quality, customer service, price, store format, location, or a combination of these factors. Some of these competitors may have been in business longer, may have more experience, or may have greater financial or marketing resources than us. As competition intensifies, our results of operations may be negatively impacted through a loss of sales and decrease in market share.
Retention of Key Management Team Members
Our management team comprises executives with extensive experience in technology and content creation. The management team has led us to take leaps in deploying AI technology in live-steaming, e-commerce, gaming and other sectors. The loss of any of our key executive team members might affect our business and our result of operation.
4
Our Ability to Grow Market Presence and Penetrate New Markets
We are still in an early development stage. We intend to expand our presence on social media to increase the market presence. If we cannot grow our market presence and penetrate new markets in an effective and cost-efficient way, our results of operation will be negatively impacted.
Results of Operations
Three Months Ended September 30, 2025 vs. September 30, 2024
| For Three Months Ended September 30, | Amount | Percentage | ||||||||||||||
| 2025 | 2024 | Change | Change | |||||||||||||
| Selling and marketing expenses | $ | - | $ | (2,909 | ) | $ | 2,909 | (100.0 | )% | |||||||
| General and administrative | (1,229,826 | ) | (873,067 | ) | (356,759 | ) | 40.9 | % | ||||||||
| Research and development expense | (1,236,333 | ) | (217,500 | ) | (1,018,833 | ) | 468.4 | % | ||||||||
| Other-than-temporary impairment losses | - | (2,756,986 | ) | 2,756,986 | (100.0 | )% | ||||||||||
| Loss from operations | (2,466,159 | ) | (3,850,462 | ) | 1,384,303 | (36.0 | )% | |||||||||
| Other income | ||||||||||||||||
| Interest income | 2,179 | 10,381 | (8,202 | ) | (79.0 | )% | ||||||||||
| Unrealized gain from digital assets | 16,230,431 | - | 16,230,431 | - | % | |||||||||||
| Other income | 16,232,610 | 10,381 | 16,222,229 | 156,268.5 | % | |||||||||||
| Income (loss) before income tax | 13,766,451 | (3,840,081 | ) | 17,606,532 | (458.5 | )% | ||||||||||
| (Provision for) benefit from income taxes | (1,677,982 | ) | 748 | (1,678,730 | ) | (224,429.1 | )% | |||||||||
| Net income (loss) | 12,088,469 | (3,839,333 | ) | 15,927,802 | (414.9 | )% | ||||||||||
| Net loss attributable to noncontrolling interest | - | (98,134 | ) | 98,134 | (100.0 | )% | ||||||||||
| Net income (loss) attributable to GD Culture Group Limited | 12,088,469 | (3,741,199 | ) | 15,829,668 | (423.1 | )% | ||||||||||
Operating Expenses
The Company’s operating expenses include selling and marketing (“S&M”) expenses, general and administrative (“G&A”) expenses, research and development (“R&D”) expenses. S&M expenses decreased to nil for the three months ended September 30, 2025, as compared to $2,909 for the three months ended September 30, 2024. The decrease was mainly due to the Company’s decreased inputs on brand marketing expenses. G&A expenses increased by $356,759 from $873,067 for the three months ended September 30, 2024 to $1,229,826 for the three months ended September 30, 2025, primarily due to the increase in short-term rental expenses, amortization of intangible assets and travel expenses. R&D expenses increased by $1,018,833, from $217,500 for the three months ended September 30, 2024 to $1,236,333 for the three months ended September 30, 2025. The increase was mainly attributable to research and development support activities for the newly purchased software, Chat Box and expenses incurred for development of AI immersive reading platform. This increase was partially offset by decreased inputs in research and development related to the Company’s artificial intelligence-based digital human application.
Other Income
The Company’s other income increased by $16,222,229, from $10,381 for the three months ended September 30, 2024, to $16,232,610, during the three months ended September 30, 2025. The increase was mainly due to the unrealized gain of $16,230,431 arising from fair value changes of digital assets, partially offset by the absence of interest income for the three months ended September 30, 2025, which had been earned from a loan to a third party in 2024.
Net Income (Loss)
The Company achieved profitability during the three months ended September 30, 2025, generating net income of $12,088,469, compared to a net loss of $3,839,333 for the three months ended September 30, 2024. The improvement in results was primarily attributable to an unrealized gain of $16,230,431 arising from fair value changes of digital assets and the absence of other-than-temporary impairment losses on intangible assets for the three months ended September 30, 2025, as compared to the same period in 2024.
5
Nine Months Ended September 30, 2025 vs. September 30, 2024
| For Nine Months Ended September 30, | Amount | Percentage | ||||||||||||||
| 2025 | 2024 | Change | Change | |||||||||||||
| Selling and marketing expenses | $ | (300,000 | ) | $ | (2,402,909 | ) | $ | 2,102,909 | (87.5 | )% | ||||||
| General and administrative | (3,190,433 | ) | (4,345,438 | ) | 1,155,005 | (26.6 | )% | |||||||||
| Research and development expense | (1,469,666 | ) | (652,500 | ) | (817,166 | ) | 125.2 | % | ||||||||
| Other-than-temporary impairment losses | - | (4,256,986 | ) | 4,256,986 | (100.0 | )% | ||||||||||
| Loss from operations | (4,960,099 | ) | (11,657,833 | ) | 6,697,734 | (57.5 | )% | |||||||||
| Other income | ||||||||||||||||
| Interest income | 6,476 | 45,383 | (38,907 | ) | (85.7 | )% | ||||||||||
| Unrealized gain from digital assets | 16,230,431 | - | 16,230,431 | - | % | |||||||||||
| Other income | 16,236,907 | 45,383 | 16,191,524 | 35,677.5 | % | |||||||||||
| Income (loss) before income tax | 11,276,808 | (11,612,450 | ) | 22,889,258 | (197.1 | )% | ||||||||||
| Benefit from (provision for) income taxes | (1,664,903 | ) | 22,666 | (1,687,569 | ) | (7,445.4 | )% | |||||||||
| Net income (loss) | 9,611,905 | (11,589,784 | ) | 21,201,689 | (182.9 | )% | ||||||||||
| Net income (loss) attributable to noncontrolling interest | - | (284,776 | ) | 284,776 | (100.0 | )% | ||||||||||
| Net income (loss) attributable to GD Culture Group Limited | 9,611,905 | (11,305,008 | ) | 20,916,913 | (185.0 | )% | ||||||||||
Operating Expenses
The Company’s operating expenses include selling and marketing (“S&M”) expenses, general and administrative (“G&A”) expenses, research and development (“R&D”) expenses. S&M expenses decreased to $300,000 for the nine months ended September 30, 2025, compared to $2,402,909 for the nine months ended September 30, 2024. The decrease was mainly due to the Company decreased inputs on digital human and e-commerce live streaming marketing and advertising due to the uncertainty surrounding TikTok’s potential exit from the U.S. G&A expenses decreased by $1,155,005 from $4,345,438 for the nine months ended September 30, 2024 to $3,190,433 for the nine months ended September 30, 2025. The decrease was mainly due to the decrease in the professional service fee, partially offset by the increase in amortization of intangible assets and short-term lease expenses. R&D expenses increased to $1,469,666 for the nine months ended September 30, 2025, compared to $652,500 for the nine months ended September 30, 2024. The increase was mainly due to research and development support activities for the newly purchased software, Chat Box and expenses incurred for development of AI immersive reading platform. This increase was partially offset by the decreased inputs on research and development about our artificial intelligence based digital human application.
Other Income
The Company’s other income increased by $16,191,524 during the nine months ended September 30, 2025, from $45,383 for the nine months ended September 30, 2024, to $16,236,907 for the nine months ended September 30, 2025. The increase was mainly due to the unrealized gain of $16,230,431 arising from fair value changes of digital assets, partially offset by the absence of interest income for the nine months ended September 30, 2025, which had been earned from a loan to a third party in 2024.
Net Income (Loss)
The Company achieved profitability during the nine months ended September 30, 2025, generating net income of $9,611,905, compared to a net loss of $11,589,784 for the three months ended September 30, 2024. The improvement in results was mainly driven by an increase in the unrealized gain arising from fair value changes of digital assets, the absence of other-than-temporary impairment losses on intangible assets and convertible notes for the nine months ended September 30, 2025, as compared to the same period in 2024.
6
Liquidity and Capital Resources
As of September 30, 2025, the Company had $225,072 in its operating bank accounts and working capital deficit of approximately $2.3 million. From September 2024 to January 2025, Mr. Xiaojian Wang, the Chief Executive Officer of the Company (“CEO”), lent $399,485 to the Company through six loan agreements, for working capital purposes. Pursuant to the loan agreements, these loans are non-interest bearing and will be due from September 2025 to January 2026, respectively. From March 2025 to May 2025, the Company repaid $399,485 in full to the CEO. Up to the date of the unaudited interim condensed consolidated financial statements were issued, there was no outstanding loan from the CEO.
On January 23, 2025, the Green Oasis Limited, a shareholder holding less than a 5% ownership shares in the Company, provided a $100,000 loan to the Company for working capital purposes. Pursuant to the loan agreement, this loan is non-interest bearing and was due on April 23, 2025. On April 25, 2025, Green Oasis Limited and the Company extended the maturity date to July 23, 2025, which was further extended to July 23, 2026 through an amendment agreement signed on July 30, 2025.
On March 4, 2025, the Company sold 1,115,600 shares of common stock at $0.896379 per share, generating gross proceeds of $1,000,000. The Company received net proceeds of $910,000 after deducting underwriter’s fees of $70,000 and a $20,000 reimbursement for the underwriter’s legal counsel and due diligence analysis expenses. The Company used the proceeds from the offering for working capital purposes.
On May 2, 2025, the Company completed a securities offering in which it agreed to sell (i) 1,115,600 shares of its common stock at a purchase price of approximately $0.524 per share and (ii) 9,380,582 pre-funded warrants at a purchase price of approximately $0.523 per warrant. Up to the date of the unaudited condensed interim financial statements were issued, The Company received $4,478,000 in proceeds for subscription of 1,115,600 shares of its common stock and 7,468,536 pre-funded warrants, with $17,390 still outstanding and receivable from the investor. The offering remains ongoing and has not yet been fully completed. Transaction costs incurred through September 30, 2025 included underwriter’s fees of $313,343 and a $20,000 reimbursement for the underwriter’s legal counsel and due diligence expenses. After deducting these expenses, net proceeds from the offering (excluding the receivable of $17,390 from the investor) amounted to $4,143,657. As of September 30, 2025, the Company used the proceeds from the offering for working capital purposes.
On October 24, 2025, the Company sold 1,333,334 shares of common stock at $2.1 per share, generating gross proceeds of $2.8 million. The Company received net proceeds of approximately $2.5 million after deducting underwriter’s fees of $196,000 and other offering costs of $60,000. The Company plans to use the proceeds from the offering for working capital purposes.
The Company evaluated its ability to continue as a going concern in accordance with ASC Subtopic 205-40, Presentation of Financial Statements—Going Concern, which requires management to assess whether there is substantial doubt about the Company’s ability to continue as a going concern within one year after the date the financial statements are issued.
Considering the impact of the financing and the Company’s projected operating cash flows as described above, management concluded that the Company will have sufficient liquidity to meet its obligations as they become due for at least the next twelve months from the date the financial statements are issued.
The following summarizes the key components of the Company’s cash flows for the nine months ended September 30, 2025 and 2024.
| For the Nine Months Ended September 30, | ||||||||
| 2025 | 2024 | |||||||
| Net cash used in operating activities | $ | (4,601,671 | ) | $ | (5,324,096 | ) | ||
| Net cash used in investing activities | - | (650,000 | ) | |||||
| Net cash provided by financing activities | 4,804,172 | 830,533 | ||||||
| Effect of exchange rate change on cash and cash equivalents | 33 | 14 | ||||||
| Net change in cash and cash equivalents | $ | 202,534 | $ | (5,143,549 | ) | |||
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Operating activities
Net cash used in operating activities was approximately $4.6 million for the nine months ended September 30, 2025, as compared to approximately $5.3 million net cash used in operating activities for the nine months ended September 30, 2024. Net income for the nine months ended September 30, 2025 was approximately $9.6 million, as compared to a net loss of approximately $11.6 million for the nine months ended September 30, 2024. Adjustments to reconcile net income (loss) to net cash used in operating activities decreased by approximately $20.5 million for the nine months ended September 30, 2025, as compared to the nine months ended September 30, 2024, mainly due to (i) the unrealized gain arising from fair value changes of digital assets for the nine months ended September 30, 2025 of approximately $16.2 million, (ii) the decreased other-than-temporary impairment losses from convertible note and intangible assets of approximately $4.3 million. Changes in operating assets and liabilities remained relatively flat for the nine months ended September 30, 2025, as compared to the nine months ended September 30, 2024. Specifically, the decrease in prepaid expenses and other current assets was largely offset by the increase in income taxes payable, resulting in minimal net impact on operating cash flows.
Investing activities
Net cash used in investing activities was nil for the nine months ended September 30, 2025, as compared to approximately $0.7 million for the nine months ended September 30, 2024. The decrease in net cash used in investing activities was due to the absence of the loan to a third party for the nine months ended September 30, 2025, as compared to the same period of 2024.
Financing activities
Net cash provided by financing activities was approximately $4.8 million for the nine months ended September 30, 2025, compared to approximately $0.8 million for the nine months ended September 30, 2024. The increase was mainly caused by i) an increase in proceeds from issuance of common stock, which rose by approximately $0.7 million to approximately $1.5 million for the nine months ended September 30, 2025, compared to approximately $0.8 million in the same period of 2024; ii) proceeds from issuance of prefunded warrants, which totaled approximately $3.6 million in the nine months ended September 30, 2025, compared to nil for the nine months ended September 30, 2024. These increase in the cash provided by financing activities were partially offset by a repayment to a related party of $0.4 million.
Critical Accounting Policies and Estimates
The Company prepares its unaudited interim condensed consolidated financial statements in accordance with U.S. GAAP. The preparation of these unaudited interim condensed consolidated financial statements requires the Company to make estimates, assumptions and judgments that can significantly impact the amounts the Company reports as assets, liabilities, revenue, costs and expenses and the related disclosures. The Company bases its estimates on historical experience and other assumptions that it believes are reasonable under the circumstances. The Company’s actual results could differ significantly from these estimates under different assumptions and conditions. The Company identified the following critical accounting estimates.
Impairment of long-lived assets
The Company’s determination of whether or not an indication of impairment exists at the cash generating unit level requires significant management judgment pertaining to intangible assets, including a software copyright of AI Box, which is used for online living-stream and a software copyright of Chat Box, which is used for online interactive entertainment scenarios, as well as the operating Right-of-use (“ROU”) assets, including the offices of the Company. Management considers both external and internal sources of information in assessing whether there are any indications that the Company’s intangible assets and ROU assets are impaired. Based on the evaluation, the Company recognized impairment losses in long-lived assets of nil and $2,756,986, respectively, for the nine months ended September 30, 2025 and 2024.
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Recently Issued Accounting Pronouncements
In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (ASU 2023-09), which requires disclosure of incremental income tax information within the rate reconciliation and expanded disclosures of income taxes paid, among other disclosure requirements. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024. Early adoption is permitted. The Company’s management does not believe the adoption of ASU 2023-09 will have a material impact on its financial statements and disclosures.
In November 2023, the FASB issued ASU 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures,” which is intended to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The purpose of the amendment is to enable investors to better understand an entity’s overall performance and assess potential future cash flows. The guidance is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. The guidance is to be applied retrospectively to all prior periods presented in the financial statements. The Company adopted ASU 2023-07 for the year ending December 31, 2024.
In November 2024, the FASB issued ASU No. 2024-03, Disaggregation of Income Statement Expenses. This new guidance is designed to improve the disclosures about the types of expenses, including employee compensation, depreciation, and amortization, and costs incurred related to inventory and manufacturing activities. ASU 2024-03 is effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027 on a prospective basis with optional retrospective application. Early adoption is permitted. The Company is currently assessing the impact that adopting this new accounting standard will have on its consolidated financial statements.
We do not believe other recently issued but not yet effective accounting standards, if currently adopted, would have a material effect on our consolidated balance sheets, statements of operations and comprehensive income (loss) and statements of cash flows.
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
Credit Risk
Credit risk is one of the most significant risks for the Company’s business.
Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash and accounts receivable. Cash held at major financial institutions located in the PRC are not insured by the government. While we believe that these financial institutions are of high credit quality, it also continually monitors their credit worthiness.
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Inflation Risk
The Company is also exposed to inflation risk. Inflationary factors, such as increases in raw material and overhead costs, could impair our operating results. Although we do not believe that inflation has had a material impact on our financial position or results of operations to date, a high rate of inflation in the future may have an adverse effect on our ability to maintain current levels of gross margin and operating expenses as a percentage of sales revenue if the selling prices of our products do not increase with such increased costs.
Foreign Currency Risk
A majority of the Company’s operating activities and a significant portion of the Company’s assets and liabilities are denominated in RMB, which is not freely convertible into foreign currencies. All foreign exchange transactions take place either through the Peoples’ Bank of China (“PBOC”) or other authorized financial institutions at exchange rates quoted by PBOC. Approval of foreign currency payments by the PBOC or other regulatory institutions requires submitting a payment application form together with suppliers’ invoices and signed contracts. The value of RMB is subject to changes in central government policies and to international economic and political developments affecting supply and demand in the China Foreign Exchange Trading System market.
ITEM 4. CONTROLS AND PROCEDURES
Under the supervision and with the participation of our management, including our Chief Executive Officer, President and Chief Financial Officer (the “Certifying Officers”), we carried out an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act. Based on the foregoing, our Certifying Officers concluded that our disclosure controls and procedures were not effective as of the end of the period covered by this Report.
Disclosure controls and procedures are controls and other procedures designed to ensure that information required to be disclosed in our reports filed or submitted under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed in our reports filed or submitted under the Exchange Act is accumulated and communicated to management, including our Certifying Officers, or persons performing similar functions, as appropriate, to allow timely decisions regarding required disclosure.
There were no changes in our internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) of the Exchange Act) during the most recent fiscal quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
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PART II — OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
None.
ITEM 1A. RISK FACTORS
Investing in our common stock involves a high degree of risk. You should carefully consider the information included in this Quarterly Report on Form 10-Q and the risk factors discussed in Part I, “Item 1A. Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024 before making an investment in our common stock. Our business, financial condition, results of operations, or prospects could be materially and adversely affected if any of these risks occurs, and as a result, the market price of our common stock could decline and you could lose all or part of your investment. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially adversely affect our business, financial condition and/or operating results. There are no material changes to the risk factors described in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024. This Quarterly Report on Form 10-Q also contains forward-looking statements that involve risks and uncertainties. See “Cautionary Note Regarding Forward-Looking Statements.” Our actual results could differ materially and adversely from those anticipated in these forward-looking statements as a result of certain factors, including those set forth below.
ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
On March 4, 2025, the Company issued 1,115,600 shares of common stock at $0.896379 per share pursuant to a securities purchase agreement with certain investor dated March 4, 2025. The Company received gross proceeds in the amount of $1,000,000, before deducting placement agent’s fees and accountable expenses and other estimated expenses, and used the proceeds from the offering for working capital purposes. The securities were issued and sold by the Company to the investor in reliance upon the exemptions from the registration requirements of the Securities Act afforded by Section 4(a)(2) of the Securities Act and Rule 506(b) of Regulation D promulgated thereunder.
On April 28, 2025, the Company entered into a software purchase agreement with Gongzheng Xu and Qing Wang, who are unaffiliated with the Company. Pursuant to the agreement, the Company purchased and the seller sold all of the sellers’ right, title, and interest in and to the certain software (the “Chat Box”). The purchase price of the software was $5,768,536.20, payable in the form of issuance of 2,444,295 shares of common stock of the Company, valued at $2.36 per share, the closing bid price of the Company’s common stock on April 25, 2025. The Company plans to use the Chat Box to develop its AI business. On April 28, 2025, the Company issued 2,444,295 shares of common stock and the transaction was completed. The common stock were issued and sold by the Company in reliance upon the exemptions from the registration requirements of the Securities Act afforded by Section 4(a)(2) of the Securities Act and Regulation S promulgated thereunder.
On May 2, 2025, the Company entered into a securities purchase agreement with certain investors, pursuant to which the Company agreed to sell 1,115,600 shares of common stock at $0.524 per share and 9,380,582 pre-funded warrants at $0.523 per warrant. The Company completed its first closing of the Shares and 7,468,536 pre-funded warrants on May 8, 2025, and received gross proceeds in the amount of $4,478,000 before deducting placement agent’s fees and accountable expenses and other estimated expenses. The Company used the proceeds from the offering for working capital purposes. The common stock and pre-funded warrants were issued and sold by the Company in reliance upon the exemptions from the registration requirements of the Securities Act afforded by Section 4(a)(2) of the Securities Act and Rule 506(b) of Regulation D promulgated thereunder.
On September 8 2025, the Company, Pallas, and the shareholders of Pallas (each a “Seller” and collectively, the “Sellers”) executed an agreement and plan of securities exchange (the “Share Exchange Agreement”, and the transactions contemplated thereby, collectively, the “Transaction”), pursuant to which, the Sellers wish to sell to the Company, and the Company wishes to purchase from the Sellers, 100% interest in and to the ordinary shares of the Target (the “Target Shares”). In exchange for the Target Shares, the Company shall issue an aggregate of 39,189,344 shares of the Company’s common stock (the “GDC Shares”), of the Company in book entry form in such amount and to such Sellers. On September 29, 2025, the Sellers transferred to the Company 10,000 ordinary shares, being all of the issued and outstanding ordinary shares of the Target, and received in exchange certificates representing the 39,189,344 GDC Shares. Thereafter, Pallas became a wholly-owned subsidiary of the Company. Pursuant to the Share Exchange Agreement, the Company’s issuances of GDC Shares were exempt from the registration requirements of the Securities Act pursuant to Section 4(a)(2) thereof, and Regulation D for transactions not involving a public offering or Regulation S thereunder, as applicable. Each Seller was required to represent that it is (i) either an “accredited investor” as defined in Rule 501 of Regulation D under the Securities Act or, in the case of the shares of common stock sold outside the United States, not a “U.S. person” in accordance with Regulation S under the Securities Act and (ii) acquired the securities for investment only and not with a view towards, or for resale in connection with, the public sale or distribution thereof. The Company did not engage in general solicitation or advertising and did not offer securities to the public in connection with the issuance and sale of GDC Shares.
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ITEM 3. DEFAULTS UPON SENIOR SECURITIES
None.
ITEM 4. MINE SAFETY DISCLOSURES
Not applicable.
ITEM 5. OTHER INFORMATION
ITEM 6. EXHIBITS
The following exhibits are filed as part of, or incorporated by reference into, this Quarterly Report on Form 10-Q.
| Exhibit Number |
Description | |
| 31.1 | Certification of the Chief Executive Officer required by Rule 13a-14(a) or Rule 15d-14(a). | |
| 31.2 | Certification of the Chief Financial Officer required by Rule 13a-14(a) or Rule 15d-14(a). | |
| 32.1 | Certification of the Chief Executive Officer required by Rule 13a-14(b) or Rule 15d-14(b) and 18 U.S.C. 1350. | |
| 32.2 | Certification of the Chief Financial Officer required by Rule 13a-14(b) or Rule 15d-14(b) and 18 U.S.C. 1350. | |
| 101.INS | Inline XBRL Instance Document. | |
| 101.SCH | Inline XBRL Taxonomy Extension Schema Document. | |
| 101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document. | |
| 101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document. | |
| 101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document. | |
| 101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document. | |
| 104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101). |
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SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned, thereunto duly authorized on November 3, 2025.
| GD CULTURE GROUP LIMITED | ||
| Date: November 3, 2025 | By: | /s/ Xiaojian Wang |
| Name: | Xiaojian Wang | |
| Title: | Chief Executive Officer, President and | |
| Chairman of the Board | ||
| Date: November 3, 2025 | By: | /s/ Zihao Zhao |
| Name: | Zihao Zhao | |
| Title: | Chief Financial Officer and Secretary | |
| (Principal Financial Officer and Principal Accounting Officer) | ||
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FAQ
What drove GDC’s Q3 2025 profit?
How many Bitcoin does GDC hold and what was the value?
What are GDC’s assets, equity, and cash position?
What capital raises did GDC complete in 2025?
Did GDC change its authorized shares?
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What post‑quarter transaction occurred on October 24, 2025?
