FDCTech restates 2024 interim financial statements citing accounting errors
FDCTech's board concluded on June 23, 2026, that the company's unaudited condensed consolidated financial statements for the three months ended March 31, 2024, the three and six months ended June 30, 2024, and the three and nine months ended September 30, 2024, should no longer be relied upon. The errors, which also affected the fiscal year 2024 audited financials restated in June 2026, include misclassification of client funds, related party cash credits, subscription receivables, and restricted cash held by brokerage subsidiaries, as well as omission of 500,000 common shares issued in October 2021 and foreign currency translation errors. Restated comparative information will appear in the company's amended fiscal year 2025 quarterly reports; the company does not intend to file separate amendments to the 2024 quarterly reports.
Key facts
- Affected periods: three months ended March 31, 2024; three and six months ended June 30, 2024; three and nine months ended September 30, 2024
- Non-reliance determination date: June 23, 2026
- 500,000 shares of common stock omitted, recognized retrospectively, issued October 2021
- LAO Professionals (PCAOB Firm ID: 7057) is current independent registered public accounting firm, engaged April 3, 2025
- Errors include misclassification of client funds of Alchemy Prime Limited and Alchemy Markets Ltd.; related party cash credits; subscription receivable as current asset rather than contra-equity; intercompany elimination errors; restricted cash segregation; foreign currency translation errors
- Material weaknesses in internal control over financial reporting identified; remediation plan in Item 9A of amended annual reports and Item 4 of amended quarterly reports
- Restated comparative information presented in fiscal year 2025 quarterly reports as amended for three months ended March 31, 2025; three and six months ended June 30, 2025; three and nine months ended September 30, 2025
Why it matters
The company's 2024 interim periods are now unreliable, requiring investors to rely solely on restated comparative information embedded in amended 2025 quarterly filings; material internal control weaknesses suggest broader accounting governance failures requiring monitored remediation.
Developing story
- NT 10-K
- 8-Kthis filing
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Derived from 8-K filed 2026-06-23. Not investment advice. View the source filing on SEC.gov →