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Comprehensive Income Statements

From 2024-02-01 To 2024-03-01


CONTENT

  • Comprehensive Income Statements
  • Note To Comprehensive Income Statements

Comprehensive Income Statements

Summary of Risk Factors

Our business is subject to various risks and uncertainties, including those detailed below. The most significant risks include:

  • Our total revenue largely depends on the prices of cryptocurrencies and the volume of transactions on our platform. A decline in these could negatively affect our business, operating results, and financial condition.
  • Our net revenue may be concentrated in a few areas. A significant portion comes from transactions in Bitcoin and Ethereum and interest income from USDT. If these revenue sources decline and are not replaced by new demand, our business could be negatively affected.
  • We have formed, and may form in the future, partnerships or strategic alliances with third parties. If these relationships are unsuccessful or these third parties fail to deliver certain services, our business could be negatively affected.
  • Fluctuations in interest rates could have a negative impact on us.
  • The future growth of cryptocurrency is subject to unpredictable factors. If crypto doesn't grow as we expect, our business could be negatively affected.
  • Cyberattacks and security breaches could harm our brand and reputation and negatively affect our business.
  • We operate in a complex and uncertain regulatory landscape. Any adverse changes or failure to comply with laws and regulations could negatively affect our business.
  • We operate in a highly competitive industry and compete against unregulated companies and companies with greater resources. If we can't effectively respond to our competitors, our business could be negatively affected.
  • We compete against a growing number of decentralized and noncustodial platforms. Failure to compete effectively against them could negatively affect our business.
  • As we expand internationally, our obligations to comply with various jurisdictions' laws will increase, and we may be subject to inquiries, investigations, and enforcement actions.
  • We are subject to material litigation, including individual and class action lawsuits, as well as investigations and enforcement actions. These matters can be expensive and time-consuming, and if resolved adversely, could harm our business.
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Comprehensive Income Statements

  • If we can't keep pace with rapid industry changes to provide new and innovative products and services, our net revenue could decline, negatively impacting our business.
  • The status of a particular cryptocurrency as a "security" is highly uncertain. If we incorrectly characterize a cryptocurrency, we may face regulatory scrutiny, investigations, fines, and other penalties.
  • We rely on third-party service providers for certain operations. Any service interruptions from these third parties may impair our ability to support our customers.
  • Loss of a critical banking or insurance relationship could negatively affect our business.
  • Any significant disruption in our products, services, IT systems, or any of the blockchain networks we support could result in a loss of customers or funds and negatively impact our brand and reputation.
  • Our failure to safeguard and manage our and our customers' fiat currencies and cryptocurrencies could negatively impact our business.
  • The theft, loss, or destruction of private keys required to access any cryptocurrencies held in custody for our own account or for our customers may be irreversible. If we are unable to access our private keys or if we experience a hack or other data loss, it could cause regulatory scrutiny, reputational harm, and other losses.
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Comprehensive Income Statements

Comprehensive Income Statements

Comprehensive Income Statements - USD ($)30 Days Ended Mar. 1,
$ in ThousandsMar. 1, 2024Feb. 1, 2024
Revene:
B011 Trading fee$ —$ —
B012 Spread Fee
B005 Withdrawal fee
B001 Deposit fee
B013 Liquidation fee
B014 Guaranteed stop-loss fee
B029 Total revenue$ —$ —
Cost:
B008 Technical supplier costs$ —$ —
B015 Market data supplier costs
B016 New coin listing cost
B030 Total cost$ —$ —
Operating expenses:
B017 Employee salaries$ —$ —
B018 Rent
B019 Marketing
B020 Rebate expenses
B031 Total operating expenses$ —$ —
Financial costs:
B021 Interest expense$ —$ —
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Comprehensive Income Statements

B022 Cryptocurrency forex losses
B023 Fiat to cryptocurrency conversion losses
B024 Cryptocurrency to fiat conversion losses
B025 Fiat to fiat conversion losses
B032 Total financial costs$ —$ —
Total other gains/losses:
B026 Investment gains$ —$ —
B027 Forex gains
B028 Cryptocurrency gains
B033 Total other gains
B004 Net profit$ —$ —

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Comprehensive Income Statements

Note To Comprehensive Income Statements

1. Nature of Operations

TideBit DeFi is a decentralized financial exchange that provides accessible financial services to a broad range of users. As a part of the burgeoning decentralized finance (DeFi) sector, TideBit DeFi leverages blockchain technology to offer financial services that are open, transparent, and free from the control of traditional financial intermediaries like banks and brokerages.

Operating on a global scale, TideBit DeFi's platform allows users to trade a variety of digital assets in a secure and decentralized manner. This means that rather than relying on a central authority to facilitate transactions, trades are executed directly between users through smart contracts on the blockchain. This not only enhances security but also increases transaction speed and reduces costs.

By harnessing the power of blockchain technology and the principles of decentralization, TideBit DeFi is democratizing access to financial services and providing users with greater control over their financial destiny.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Foundation for Presentation and Consolidation Principles

The attached financial statements of the Company are not audited. These non-audited financial statements are prepared following the United States Generally Accepted Accounting Principles ("GAAP") in the same manner as the audited financial statements. In the management's view, they include all necessary adjustments, which are only regular, recurring adjustments, for a fair representation of the Company's financial statements for the periods shown. The non-audited operational results for the 30 days ending March 1, 2024, may not necessarily predict the results for the full year or any other period.

Use of estimates

The creation of these financial statements in accordance with GAAP requires management to make estimates and assumptions. Significant estimates and assumptions include the

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Comprehensive Income Statements

fair value of customer cryptocurrencies and liabilities.

3. REVENUE, EXPENSES AND COSTS ANALYSIS

Revenue recognition

The organization establishes the process of acknowledging income from customer contracts through the subsequent stages:

  • Pinpointing the agreement, or agreements, made with the client;
  • Recognizing the duties to be performed as stated in the agreement;
  • Calculating the price of the transaction;
  • Distributing the transaction price to the duties to be performed as per the agreement;
  • Acknowledging the income when the organization fulfills a duty to be performed.

Revenue is recognized when the control of the promised products or services is handed over to the clients, in a quantity that mirrors the payment the organization anticipates to receive in return for those products or services.

It is essential to provide our investors with a granular view of our financial activities. By breaking down each revenue and cost category associated with fiat currencies and cryptocurrencies, we aim to offer a comprehensive understanding of our operations and financial health. This detailed approach ensures that our stakeholders can make informed decisions based on a thorough analysis of our income streams and expenditures. Below, you'll find specific breakdowns for each category:

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Comprehensive Income Statements

Trading fee

The table below provides a detailed breakdown of the trading fees we have collected. It contrasts the data from March 1, 2024, with that of February 1, 2024, showcasing the amount, cost value, and percentage of total fees for each currency.

B011 Trading feeMar. 1, 2024Feb. 1, 2024
(Cost Value in thousands)AmountCost ValuePercentage of TotalAmountCost ValuePercentage of Total
USD (B052, B053)$ —— %$ —— %
Bitcoin (B048, B049)— %— %
Ethereum (B046, B047)— %— %
USDT (B050, B051)— %— %
Total Trading fee$ —— %$ —— %

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Comprehensive Income Statements

Spread fee

The table below provides a detailed breakdown of the spread fees we have collected. It contrasts the data from March 1, 2024, with that of February 1, 2024, showcasing the amount, cost value, and percentage of total fees for each currency.

B012 Spread feeMar. 1, 2024Feb. 1, 2024
(Cost Value in thousands)AmountCost ValuePercentage of TotalAmountCost ValuePercentage of Total
USD (B060, B061)$ —— %$ —— %
Bitcoin (B056, B057)— %— %
Ethereum (B054, B055)— %— %
USDT (B058, B059)— %— %
Total Spread fee$ —— %$ —— %

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Comprehensive Income Statements

Withdrawal fee

This section offers insights into the fees associated with customer withdrawals. The table compares the withdrawal fee data from March 1, 2024, to that of February 1, 2024.

B005 Withdrawal feeMar. 1, 2024Feb. 1, 2024
(Cost Value in thousands)AmountCost ValuePercentage of TotalAmountCost ValuePercentage of Total
USD (B044, B045)$ —— %$ —— %
Bitcoin (B042, B043)— %— %
Ethereum (B040, B041)— %— %
USDT (B006, B007)— %— %
Total Withdrawal fee$ —— %$ —— %

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09

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Comprehensive Income Statements

Deposit fee

Here, we present a comprehensive overview of the fees collected from customer deposits. The table contrasts the figures from March 1, 2024, with those from February 1, 2024.

B001 Deposit feeMar. 1, 2024Feb. 1, 2024
(Cost Value in thousands)AmountCost ValuePercentage of TotalAmountCost ValuePercentage of Total
USD (B038, B039)$ —— %$ —— %
Bitcoin (B036, B037)— %— %
Ethereum (B034, B035)— %— %
USDT (B002, B003)— %— %
Total Deposit fee$ —— %$ —— %

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10

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Comprehensive Income Statements

Liquidation fee

This table provides a detailed view of the fees collected from liquidation activities. It compares the data from March 1, 2024, to that of February 1, 2024, highlighting the amount, cost value, and percentage of total fees for each currency.

B013 Liquidation feeMar. 1, 2024Feb. 1, 2024
(Cost Value in thousands)AmountCost ValuePercentage of TotalAmountCost ValuePercentage of Total
USD (B068, B069)$ —— %$ —— %
Bitcoin (B064, B065)— %— %
Ethereum (B062, B063)— %— %
USDT (B066, B067)— %— %
Total Liquidation fee$ —— %$ —— %

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Comprehensive Income Statements

Guaranteed stop loss fee

Below is a representation of the fees associated with the guaranteed stop loss feature. The table contrasts the data from March 1, 2024, with that of February 1, 2024.

B014 Guaranteed stop-loss feeMar. 1, 2024Feb. 1, 2024
(Cost Value in thousands)AmountCost ValuePercentage of TotalAmountCost ValuePercentage of Total
USD (B076, B077)$ —— %$ —— %
Bitcoin (B072, B073)— %— %
Ethereum (B070, B071)— %— %
USDT (B074, B075)— %— %
Total Guaranteed stop-loss fee$ —— %$ —— %

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Comprehensive Income Statements

Rebate expenses

This section offers a comprehensive view of the expenses related to rebates provided to our customers. The table contrasts the figures from March 1, 2024, with those from February 1, 2024.

B020 Rebate expensesMar. 1, 2024Feb. 1, 2024
(Cost Value in thousands)AmountCost ValuePercentage of TotalAmountCost ValuePercentage of Total
USD (B084, B085)$ —— %$ —— %
Bitcoin (B080, B081)— %— %
Ethereum (B078, B079)— %— %
USDT (B082, B083)— %— %
Total Rebate expenses$ —— %$ —— %

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Comprehensive Income Statements

Cryptocurrency forex losses

The table below provides insights into the losses incurred from cryptocurrency forex activities. It contrasts the data from March 1, 2024, with that of February 1, 2024, showcasing the amount, cost value, and percentage of total losses for each currency.

B022 Cryptocurrency forex lossesMar. 1, 2024Feb. 1, 2024
(Cost Value in thousands)AmountCost ValuePercentage of TotalAmountCost ValuePercentage of Total
USD (B092, B093)$ —— %$ —— %
Bitcoin (B088, B089)— %— %
Ethereum (B086, B087)— %— %
USDT (B090, B091)— %— %
Total Cryptocurrency forex losses$ —— %$ —— %

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Comprehensive Income Statements

Technical supplier costs

The table below provides insights into the losses incurred from technical supplier costs. It contrasts the data from March 1, 2024, with that of February 1, 2024, showcasing the amount, cost value, and percentage of total losses for each currency.

B008 Technical supplier costsMar. 1, 2024Feb. 1, 2024
(Cost Value in thousands)AmountCost ValuePercentage of TotalAmountCost ValuePercentage of Total
USD (B098, B099)$ —— %$ —— %
Bitcoin (B094, B095)— %— %
Ethereum (B009, B010)— %— %
USDT (B096, B097)— %— %
Total Technical supplier costs$ —— %$ —— %

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Comprehensive Income Statements

Cryptocurrency gains

The table below provides insights into the gains incurred from cryptocurrency. It contrasts the data from March 1, 2024, with that of February 1, 2024, showcasing the amount, cost value, and percentage of total losses for each currency.

B028 Cryptocurrency gainsMar. 1, 2024Feb. 1, 2024
(Cost Value in thousands)AmountCost ValuePercentage of TotalAmountCost ValuePercentage of Total
USD (B106, B107)$ —— %$ —— %
Bitcoin (B104, B105)— %— %
Ethereum (B102, B103)— %— %
USDT (B100, B101)— %— %
Total Cryptocurrency gains$ —— %$ —— %

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Comprehensive Income Statements

4. Results of Operations

The following table summarizes the historical statement of income data:

Comprehensive Income Statements - USD ($)30 Days Ended Mar. 1,
shares in Thousands, $ in Thousands20242023
Revene:
B011 Trading fee$ —$ —
B012 Spread Fee
B005 Withdrawal fee
B001 Deposit fee
B013 Liquidation fee
B014 Guaranteed stop-loss fee
B029 Total revenue$ —$ —
Cost:
B008 Technical supplier costs$ —$ —
B015 Market data supplier costs
B016 New coin listing cost
B030 Total cost$ —$ —
Operating expenses:
B017 Employee salaries$ —$ —
B018 Rent
B019 Marketing
B020 Rebate expenses
B031 Total operating expenses$ —$ —
Financial costs:
B021 Interest expense$ —$ —
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Comprehensive Income Statements

B022 Cryptocurrency forex losses
B023 Fiat to cryptocurrency conversion losses
B024 Cryptocurrency to fiat conversion losses
B025 Fiat to fiat conversion losses
B032 Total financial costs$ —$ —
Total other gains/losses:
B026 Investment gains$ —$ —
B027 Forex gains
B028 Cryptocurrency gains
B033 Total other gains
B004 Net profit$ —$ —

Comparison of the 30 days ended July 30, 2023 and 2022

30 Days Ended Mar. 1,
20242023% Change

Net revenue

(in thousands)

B011 Trading fee$ —$ —— %
B012 Spread Fee— %
B005 Withdrawal fee— %
B001 Deposit fee— %
B001 Liquidation fee— %
B014 Guaranteed stop-loss fee— %
B029 Total revenue$ —$ —— %
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5. Exchange rate

The table represents the exchange rates at 00:00 in the UTC+0 time zone. The exchange rates are used in revenue recognization.

Quoted DateBTC to USDETH to USDUSDT to USD
BuySellBuySellBuySell
2024-02-01000000
2024-02-02000000
2024-02-03000000
2024-02-04000000
2024-02-05000000
2024-02-06000000
2024-02-07000000
2024-02-08000000
2024-02-09000000
2024-02-10000000
2024-02-11000000
2024-02-12000000
2024-02-13000000
2024-02-14000000
2024-02-15000000
2024-02-16000000
2024-02-17000000
2024-02-18000000
2024-02-19000000
2024-02-20000000
2024-02-21000000
2024-02-22000000
2024-02-23000000
2024-02-24000000
2024-02-25000000
2024-02-26000000
2024-02-27000000
2024-02-28000000
2024-02-29000000
2024-03-01000000
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Comprehensive Income Statements

Please note that the values are approximate and may vary slightly due to market fluctuations.

6. Market price risk of cryptocurrencies

Our revenue model primarily hinges on transaction fees, which can be a flat fee or calculated as a percentage of the transaction value. The exact fee may fluctuate depending on the payment type and the transaction value.

However, it's important to be cognizant of the risks associated with cryptocurrency price volatility, which could negatively impact our operational results. Market prices of Bitcoin, Ethereum, and other cryptocurrencies play a crucial role in determining our future profitability. These prices have shown significant fluctuation month over month, matching the pattern of our operational results, and there is no certainty that they will follow historical trends.

A downturn in the market price of Bitcoin, Ethereum, and other cryptocurrencies could negatively affect our earnings, the carrying value of our cryptocurrencies, and our projected future cash flows. It could also pose a challenge to our liquidity and capability to fulfill ongoing obligations.

In terms of accounting procedures, we record impairment charges on our cryptocurrencies when the market prices fall below the assets' carrying value.

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