Company Summary: SMC Entertainment, Inc.

Overview

SMC Entertainment, Inc. ("SMC" or "the Company") is a Nevada-incorporated holding company that primarily focuses on acquiring and supporting proven, commercialized fintech and technology companies. Its core business is now centered around its wholly owned subsidiary, Fyniti Global Equities EBT Inc., which develops and delivers AI-driven financial technology solutions.

Core Business Activities

• FinTech Development and Offering:
  • Specializes in AI-enabled wealth management and quantitative investing technologies.
  • Operates the FYNN AI platform, which integrates proprietary AI and machine learning algorithms for financial decision-making.
  • Owns the IQ Engine and EBT Technology, providing AI-driven quantitative investing and basket trading.
• AI and ML Capabilities:
  • Analyzes vast datasets, including market data, economic indicators, news sentiment, fundamental company data, and alternative datasets (e.g., buy-now-pay-later, credit card usage, FED data).
  • Utilizes supervised, unsupervised, and reinforcement learning algorithms.
  • Offers customizable investment baskets called Fyniti Blocks, which differ from ETFs by allowing real-time trend analysis, personalized weights, and dynamic portfolio adjustments.
• Services and Platforms:
  • Provides SaaS solutions for wealth management professionals, RIAs, hedge funds, and financial institutions.
  • Focus on features such as tax-loss harvesting, reduced fees, one-click order execution, direct indexing, trend-based investing, and high liquidity akin to individual stocks.

Customers

• Target clients include:
  • Registered Investment Advisors (RIAs)
  • Hedge fund managers
  • Financial institutions, including banks and broker/dealers
  • CPA firms
• The platform aims to be deployed in a beta testing phase with early adopters prior to product launch (anticipated in Q2/2025).

Employees and Contractors

• Number of Employees: 5 full-time employees
• Number of Contractors: 7 full-time contractors
• Officers work approximately 35 hours/week.

Revenue

• The Company had no revenue for the fiscal years ended December 31, 2024, and 2023.

Financial Performance

• Net Loss:
  • 2024: $8,430,308 (significant increase from prior)
  • 2023: $1,493,558
• Operating Expenses:
  • For 2024: $798,253
  • Driven largely by transaction expenses related to abandoned acquisitions and high-interest expense.
• Other Income/Expenses:
  • Interest expense was $301,111 in 2024.
  • Gain on extinguishment of debt: $150,384.
  • Significant transaction expenses of $8,037,500 relate to an abandoned acquisition.

Financial Condition

• As of December 31, 2024:
  • Current assets: $11,661
  • Current liabilities: $11,075,904
  • Working capital deficit: $11,064,243
  • Cash increased slightly to $11,661 from previous year.
• The Company relies on external financing (equity and debt offerings) to fund operations.
• Significant recurring losses and net liabilities raise substantial doubt about the company's ability to continue as a going concern.

Other Important Details

• The company operates as a small reporting company and is listed on the OTC Pink market with the ticker SMCE.
• There is no current active market for its stock, which is considered a penny stock.
• Management is in the process of expanding its governance and internal controls, though internal controls in 2024 are deemed ineffective.

Strategic Focus

• Develop and commercialize AI-driven financial tools for portfolio management.
• Capitalize on market trends to create customizable baskets that outperform traditional ETFs.
• Seek product beta testing with early adopters to validate technology before full launch.

Note: The company's financials are characterized by a reliance on future capital raises, significant losses, and ongoing efforts to refine its governance and internal control systems.