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Name | Symbol | Market | Type |
---|---|---|---|
Lion Group Holding Ltd | NASDAQ:LGHL | NASDAQ | Depository Receipt |
Price Change | % Change | Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.0033 | 1.37% | 0.245 | 0.233 | 0.274 | 0.273936 | 0.2325 | 0.241 | 3,804,221 | 05:00:17 |
HONG KONG, April 28, 2023 /PRNewswire/ -- Lion Group Holding Ltd. ("Lion" or "the Company") (NASDAQ: LGHL), operator of an all-in-one trading platform that offers a wide spectrum of products and services, today announced its unaudited financial results for the full year ended December 31, 2022.
Mr. Chunning (Wilson) Wang, CEO of Lion, commented, "In 2022, the unprecedented combination of global financial market fluctuation and volatility, pandemic-driven excessive restrictions, and customers' compounded reluctance to invest and trade created enormous headwinds for our various business lines, affecting earnings and margins. Although we are still suffering losses in CFD (contract for difference) and TRS (total return swap) trading business due to unpredictable market events, we have seen reversal begin in the second half of 2022. Thanks to our conservative trading strategies, we have also seen positive signs of revenue improvement in the second half of 2022 as well as in the last few months of 2023."
"At the same time, we are prudently managing operating leverage amidst weak market-wide demand to reduce margin pressure. Our general and administrative expenses decreased by 39.1% year-over-year in 2022 as a result of our internal cost control efforts. We will continue to focus on operating leverage management and enhancing operational efficiency."
"With the lifting of the COVID-zero policy in China, we are seeing macroeconomic recovery and business improvements, while we are watching the macroeconomic risks carefully. As we look at 2023, we are confident that the operating environment will improve and the global financial market will be stabilized, and we continue to diligently manage the business in order to best position the Company for future growth and value creation," Mr. Wang concluded.
FINANCIAL RESULTS
For the Full Year ended December 31, 2022
Revenues
Total revenue for the year ended December 31, 2022 was largely affected by trading losses in CFD and TRS trading services, resulting in revenues (losses) of US$(2.5) million, compared to total revenues of US$25.0 million for the full year ended December 31, 2021. Total number of revenue-generating customer accounts decreased to 4,526 as of December 31, 2022, from 5,261 as of December 31, 2021 mainly due to the decline in Lion's insurance business.
Year ended December 31, | |||||||||
2022 | 2021 | ||||||||
US$ | % | US$ | % | ||||||
Revenues | |||||||||
CFD trading services | (6,694,312) | 269.6 | 8,700,009 | 34.8 | |||||
TRS trading services | (595,871) | 24.0 | 13,182,716 | 52.7 | |||||
Futures and securities brokerage services | 3,284,729 | (132.3) | 2,800,543 | 11.2 | |||||
Others | 1,522,954 | (61.3) | 309,444 | 1.3 | |||||
Total | (2,482,500) | 100.0 | 24,992,712 | 100.0 |
Expenses
Our total expenses increased by 22.2% from US$25.8 million for the year ended December 31, 2021 to US$31.5 million for the year ended December 31, 2022, primarily due to increases in research and development, communication and technology expenses, marketing expenses, depreciation and impairment of mining equipment, partially offset by the decrease in service fees, compensation expenses, change in fair value of warrants liabilities, and cost of crypto mining.
Income Tax Expenses
Income tax expenses decreased from US$54,367 for the year ended December 31, 2021 to US$3,419 for the year ended December 31, 2022, primarily due to the taxes paid in 2021 as a result of IRS examination of PAAC's tax return for the period ended September 30, 2019.
Net (loss) income
As a result of the above, net loss was US$34.0 million for the year ended December 31, 2022, compared to a net loss of US$0.8 million for the year ended December 31, 2021. Diluted net loss per ADS was US$0.70 for the year ended December 31, 2022, compared to a diluted net loss per ADS of US$0.27 for the year ended December 31, 2021.
For the full year of 2022, the Company's weighted average number of ADSs used in calculating diluted net loss per ADS, was 45,974,492, compared to 30,088,087 in the prior year period.
Non-GAAP financial results
Non-GAAP net loss, which excludes change in fair value of warrant liabilities, stock-based compensation expenses, amortization of debt discounts, depreciation expenses and impairment of fixed assets was US$27.1 million for the year ended December 31, 2022, compared to non-GAAP net income of US$3.0 million for the year ended December 31, 2021. Non-GAAP diluted net loss per ADS was US$0.59 for the year of 2022, compared to non-GAAP diluted net income per ADS of US$0.09 in the prior year period.
Liquidity
As of December 31, 2022, the Company's cash and restricted cash were US$14.4 million, compared to US$15.8 million as of December 31, 2021. Net cash used in operating activities was US$4.0 million. Net cash used in investing activities was US$7.1 million. Net cash provided by financing activities was US$9.8 million.
Non-GAAP Financial Measures
This press release includes reconciliations of the most comparable financial measures calculated and presented in accordance with accounting principles generally accepted in the U.S. ("GAAP") to non-GAAP financial measures. The Company's calculation of Non-GAAP (loss) income (net loss or income before change in fair value of warrant liabilities, stock-based compensation, amortization of debt discounts, depreciation expenses and impairment of fixed assets) and Non-GAAP EPS differs from EPS based on net (loss) income because it does not include change in fair value of warrant liabilities, stock-based compensation, amortization of debt discounts, depreciation expenses and impairment of fixed assets, which are non-cash charges. The Company believes that these measures help the management identify underlying trends in the Company's business that could otherwise be distorted by the effect of certain expenses that the Company includes in net loss. The Company believes that these measures provide useful information about its operating results, enhance the overall understanding of its past performance and future prospects, and allow for greater comparability with respect to key metrics used by its management in its financial and operational decision-making.
For more information on the non-GAAP financial measures, please see the table, titled "Unaudited Reconciliations of Non-GAAP and GAAP Financial Results," set forth at the end of this press release.
About Lion
Lion Group Holding LTD. (Nasdaq: LGHL) operates an all-in one, state-of-the-art trading platform that offer a wide spectrum of products and services, including (i) Total Return Service (TRS) Trading, (ii) Contract-for-difference (CFD) trading, (iii) Insurance Brokerage and (iv) Futures and Securities Brokerage.
Additional information may be found at http://ir.liongrouphl.com.
Forward-Looking Statements
This press release contains, "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Lion's actual results may differ from their expectations, estimates and projections and consequently, you should not rely on these forward-looking statements as predictions of future events. Words such as "expect," "estimate," "project," "budget," "forecast," "anticipate," "intend," "plan," "may," "will," "could," "should," "believes," "predicts," "potential," "might" and "continues," and similar expressions are intended to identify such forward-looking statements. These forward-looking statements include, but are not limited to, statements about: Lion's goals and strategies; our ability to retain and increase the number of users, members and advertising customers, and expand its service offerings; Lion's future business development, financial condition and results of operations; expected changes in Lion's revenues, costs or expenditures; the impact of the COVID-19 pandemic; competition in the industry; relevant government policies and regulations relating to our industry; general economic and business conditions globally and in China, Hong Kong, and Southeast Asia; and assumptions underlying or related to any of the foregoing. Lion cautions that the foregoing list of factors is not exclusive. Lion cautions readers not to place undue reliance upon any forward-looking statements, which speak only as of the date made. Lion does not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in its expectations or any change in events, conditions or circumstances on which any such statement is based, subject to applicable law. Additional information concerning these and other factors that may impact our expectations and projections can be found in Lion's periodic filings with the SEC, including Lion's Annual Report on Form 20-F for the fiscal year ended December 31, 2022. Lion's SEC filings are available publicly on the SEC's website at www.sec.gov.
Contacts
Lion Group Holding
Tel: +852 2820 9011
Email: ir@liongrouphl.com
ICR, LLC
William Zima
Tel: +1 203 682 8233
Email: ir@liongrouphl.com
Lion Group Holding Limited | |||||||||||
Consolidated Statements of Operations and Comprehensive Income (Loss) | |||||||||||
(in dollar amount) | |||||||||||
Years Ended December 31, | |||||||||||
2022 | 2021 | ||||||||||
Revenues (losses) | |||||||||||
Insurance brokerage commissions | $ 455,394 | $ 542,795 | |||||||||
Securities brokerage commissions and fees | 3,412,644 | 3,188,684 | |||||||||
Market making commissions and fees | 781,878 | 4,324,650 | |||||||||
Interest income | 3,229,716 | 1,351,318 | |||||||||
Trading (loss) gains | (11,467,969) | 13,379,146 | |||||||||
Other income | 1,105,837 | 2,206,119 | |||||||||
(2,482,500) | 24,992,712 | ||||||||||
Expenses and others | |||||||||||
Commissions and fees | 3,198,934 | 3,317,692 | |||||||||
Compensation and benefits | 3,620,506 | 4,069,203 | |||||||||
Occupancy | 826,254 | 778,881 | |||||||||
Communication and technology | 3,392,794 | 1,929,981 | |||||||||
Cost of crypto mining | - | 1,163,846 | |||||||||
General and administrative | 1,228,572 | 2,016,582 | |||||||||
Professional fees | 3,716,839 | 3,836,817 | |||||||||
Research and development | 4,693,995 | 1,205,040 | |||||||||
Services fees | 1,956,785 | 3,574,579 | |||||||||
Interest | 2,334,598 | 1,608,100 | |||||||||
Depreciation | 2,032,386 | 916,916 | |||||||||
Marketing | 3,743,567 | 913,675 | |||||||||
Payment service charge | (12,407) | (181,249) | |||||||||
Impairment of fixed assets | 1,690,028 | - | |||||||||
Impairment of cryptocurrencies | 293,619 | - | |||||||||
Change in fair value of warrant liabilities | (1,260,354) | 470,804 | |||||||||
Other operating | 32,406 | 144,175 | |||||||||
31,488,522 | 25,765,042 | ||||||||||
Loss before income taxes | (33,971,022) | (772,330) | |||||||||
Income tax expense | (3,419) | (54,367) | |||||||||
Net loss | $ (33,974,441) | $ (826,697) | |||||||||
Net loss attributable to non-controlling interests | (2,411,158) | (849,479) | |||||||||
Net (loss) gain attributable to LGHL | $ (31,563,283) | $ 22,782 | |||||||||
Deemed dividend on the effect of the down round features | - | (6,354,500) | |||||||||
Dividends and deemed dividends on preferred shares | (595,208) | (1,810,204) | |||||||||
Net loss attributable to LGHL ordinary shareholders | $ (32,158,491) | $ (8,141,922) | |||||||||
Loss per share for both Class A and Class B | |||||||||||
- basic and diluted | $ (0.70) | $ (0.27) | |||||||||
Weighted average Class A ordinary shares outstanding | |||||||||||
- basic and diluted | 40,438,604 | 26,046,212 | |||||||||
Weighted average Class B ordinary shares outstanding | |||||||||||
- basic and diluted | 5,535,888 | 4,041,875 | |||||||||
Lion Group Holding Limited | |||||||||
Consolidated Balance Sheets | |||||||||
(in dollar amount) | |||||||||
December 31, | |||||||||
2022 | 2021 | ||||||||
Assets | |||||||||
Current Assets | |||||||||
Cash and cash equivalents | $ 11,159,610 | $ 15,098,151 | |||||||
Restricted cash-bank balances held on behalf of customers | 3,242,989 | 653,324 | |||||||
Securities owned, at fair value | 11,104,047 | 15,900,369 | |||||||
Receivables from broker-dealers and clearing organizations | 33,342,254 | 87,938,377 | |||||||
Short-term loans receivable | 7,126,021 | - | |||||||
Other receivables | 534,437 | 67,352 | |||||||
Prepaids, deposits and other | 2,534,684 | 8,741,735 | |||||||
Total current assets | 69,044,042 | 128,399,308 | |||||||
Long term investment | 1,436,142 | 1,550,314 | |||||||
Fixed assets, net | 13,786,344 | 17,507,742 | |||||||
Right-of-use assets | 1,160,563 | - | |||||||
Other assets | 1,207,293 | 1,459,467 | |||||||
Total Assets | $ 86,634,384 | $ 148,916,831 | |||||||
Liabilities, Mezzanine Equity and Stockholders' Equity | |||||||||
Liabilities | |||||||||
Current Liabilities | |||||||||
Payables to customers | $ 23,829,192 | $ 35,959,925 | |||||||
Payables to broker-dealers and clearing organizations | 24,963,524 | 53,101,820 | |||||||
Accrued expenses and other payables | 1,923,305 | 1,623,354 | |||||||
Derivative liabilities, at fair value | 2,292,056 | 554,710 | |||||||
Short-term borrowings | 110,000 | 110,000 | |||||||
Lease liability - current | 601,531 | - | |||||||
Due to director | 146,671 | 161,044 | |||||||
Total current liabilities | 53,866,279 | 91,510,853 | |||||||
Lease liability - noncurrent | 618,705 | - | |||||||
Convertible debentures | 4,061,735 | - | |||||||
Warrant liabilities | 675,000 | 1,940,625 | |||||||
Total Liabilities | 59,221,719 | 93,451,478 | |||||||
Commitments and Contingencies | |||||||||
Mezzanine Equity | |||||||||
Series B Convertible Preferred Shares - 4,000 shares authorized, | |||||||||
stated value of $1,000 per share, nil and 4,000 shares issued and outstanding | |||||||||
at December 31, 2022 and 2021, respectively | - | 1,222,771 | |||||||
Stockholders' Equity | |||||||||
Preferred shares, $0.0001 par value, 50,000,000 shares authorized | |||||||||
Series A Convertible Preferred Shares - 345,000 shares authorized, | |||||||||
stated value of $1,000 per share, nil and 6,500 shares issued and outstanding | |||||||||
at December 31, 2022 and 2021, respectively | - | 3,929,206 | |||||||
Class A ordinary shares, $0.0001 par value, 300,000,000 shares | |||||||||
authorized, 48,761,596 and 29,677,969 shares issued and outstanding | |||||||||
at December 31, 2022 and 2021, respectively | 4,876 | 2,968 | |||||||
Class B ordinary shares, $0.0001 par value, 150,000,000 shares | |||||||||
authorized, 9,843,096 shares issued and outstanding | |||||||||
at December 31, 2022 and 2021, respectively | 984 | 984 | |||||||
Additional paid in capital | 63,660,939 | 54,057,211 | |||||||
Accumulated deficit | (34,492,863) | (2,929,580) | |||||||
Accumulated other comprehensive losses | (303,213) | (57,532) | |||||||
Total LGHL shareholders' equity | 28,870,723 | 55,003,257 | |||||||
Non-controlling interest | (1,458,058) | (760,675) | |||||||
Total shareholders' equity | 27,412,665 | 54,242,582 | |||||||
Total Liabilities, Mezzanine Equity and Shareholders' Equity | $ 86,634,384 | $ 148,916,831 |
Lion Group Holding Limited | ||||||
Summary of Condensed Consolidated Statement of Cash Flows Data | ||||||
(in dollar amount) | ||||||
Year ended December 31, | ||||||
2022 | 2021 | |||||
Net cash used in operating activities | $ | (3,940,552) | $ | (20,482,499) | ||
Net cash used in investing activities | (7,093,339) | (12,104,687) | ||||
Net cash provided by financing activities | 9,808,775 | 43,578,397 | ||||
Effect of exchange rate changes on cash | (123,760) | (33,833) | ||||
Net (decrease) increase in cash and restricted cash | (1,348,876) | 10,957,378 | ||||
Cash and restricted cash at beginning of year | 15,751,475 | 4,794,097 | ||||
Cash and restricted cash at end of year | $ | 14,402,599 | $ | 15,751,475 |
Lion Group Holding Limited | ||||
Reconciliations of Non-GAAP and GAAP Financial Results | ||||
(in dollar amount) | ||||
Year ended December 31, | ||||
2022 | 2021 | |||
US$ | US$ | |||
Net (loss) income attributable to LGHL | $ (31,563,283) | $ 22,782 | ||
Stock-based compensation | 1,300,550 | 381,800 | ||
Amortization of debt discounts | 658,680 | 783,994 | ||
Depreciation expenses | 2,032,386 | 1,295,470 | ||
Impairment of fixed assets | 1,690,028 | - | ||
Change in fair value of warrant liabilities | (1,260,354) | 470,804 | ||
Non-GAAP (loss) income attributable to LGHL before change in | $ (27,141,993) | $ 2,954,850 | ||
Non-GAAP (losses) earnings per share for both Class A and Class B | ||||
- basic | $ (0.59) | $ 0.10 | ||
- diluted | $ (0.59) | $ 0.09 | ||
Weighted average Class A ordinary shares outstanding | ||||
- basic | 40,438,604 | 26,046,212 | ||
- diluted | 40,438,604 | 29,145,497 | ||
Weighted average Class B ordinary shares outstanding | ||||
- basic and diluted | 5,535,888 | 4,041,875 | ||
Year ended December 31, | ||||||||
2022 | 2021 | |||||||
Basic | Fully Diluted | Basic | Fully Diluted | |||||
Earnings (Loss) attributable to LGHL per share for | $ (0.69) | $ (0.69) | $ 0.00 | $ 0.00 | ||||
Stock-based compensation | 0.03 | 0.03 | 0.01 | 0.01 | ||||
Amortization of debt discounts | 0.01 | 0.01 | 0.03 | 0.02 | ||||
Depreciation expenses | 0.04 | 0.04 | 0.04 | 0.04 | ||||
Impairment of fixed assets | 0.04 | 0.04 | - | - | ||||
Change in fair value of warrant liabilities | (0.03) | (0.03) | 0.02 | 0.01 | ||||
Non-GAAP earnings (losses) per share for both | $ (0.59) | $ (0.59) | $ 0.10 | $ 0.09 |
View original content:https://www.prnewswire.com/news-releases/lion-announces-unaudited-full-year-2022-financial-results-301811212.html
SOURCE Lion Group Holding Ltd.
Copyright 2023 PR Newswire
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