FDCTECH, INC. Annual Report - How They Did This Year

I am writing this guide to help you understand FDCTECH, INC.’s performance. My goal is to break down complex financial filings into simple terms so you can decide if this company fits your investment goals.

1. What does this company do?

Think of FDCTECH as the "plumbing" for the financial world. They provide software and services that help other firms trade stocks, currencies, and digital assets. They operate as a global holding company with four main business lines:

• Brokerage: They help firms trade across Europe, the UK, and Asia through subsidiaries like ADM Securities.
• Wealth Management: They manage over $530 million in client assets in Australia, earning management and performance fees.
• Tech Provider: They license their "Condor" trading platform, which includes trading interfaces, back-office tools, and risk-management software.
• Payments: They are building "Xoala Asia," a digital wallet and payment system in Mauritius to help with cross-border payments.

2. The "Big Picture"

FDCTECH is growing by buying other companies. They want to be a "one-stop shop" for entrepreneurs starting a brokerage. Instead of building their own tech or getting licenses from scratch, new firms use FDCTECH’s "plug-and-play" package. They hope that by lowering barriers for others, they will become the backbone of new financial firms. Their strategy relies on earning licensing fees from brokers and commissions from their end-users.

3. Financial health: The "Related Party" Web

This is the most important part for you to watch. The company’s health relies on internal loans and agreements between the parent company and its subsidiaries.

• The Risk: Much of their operating cash comes from loans provided by management. If these people withdraw support or demand repayment, the company may lack the cash to keep running.
• The Numbers: As of mid-2025, the company was worth roughly $20.3 million. They have over 423 million shares issued. Because the share price is very low, this high share count means your ownership percentage could be reduced if they issue more shares. Revenue is also inconsistent, and they often wait a long time to collect payments from their own clients.

4. Major wins and challenges

• The Competition: FDCTECH is a small player. In software, they compete against MetaQuotes, which holds most of the market. In brokerage, they compete against giants like IG Group and Saxo Bank, which have billions in capital.
• Regulatory Hurdles: They operate in strictly regulated markets like the UK and Australia. Compliance is expensive. If they fail to meet capital requirements, regulators could stop them from trading or managing client funds.

5. Key risks for your wallet

• Complexity: The company’s structure is complicated, making it hard to track how money moves. They often report "non-cash" gains that look like profit but do not actually add cash to the bank.
• Insider Dependency: The company relies on agreements with its own executives. If these leaders leave or change their strategy, the company’s finances could collapse.
• Speculative Growth: They are betting on new projects like payment processing. These projects are in early stages and have not yet proven they can make a profit.

6. Future outlook

FDCTECH wants to prove it can become a stable, global player. Success depends on whether their "Condor" software can attract outside customers to generate steady, independent income.

Investor Checklist: Before making a decision, watch their balance sheet for two specific indicators:

1. A reduction in "money owed by related parties": This shows the company is relying less on internal loans and more on actual business revenue.
2. An increase in "cash from operations": This is the gold standard for health, proving the company is generating enough profit from its daily activities to sustain itself without needing outside help.