Company Overview of Global Interactive Technologies, Inc.

Business Focus

• Type of Business: Technology-driven platform company specializing in digital content, social media, community engagement, and e-commerce related to Korean pop culture (K-Culture, Hallyu).
• Main Platform: FANING (formerly Fanatoo), an interactive all-in-one ecosystem designed for fans of Korean entertainment and culture.

Key Platform Features

• Facilitates content discovery, monetization, user-generated content, and community engagement.
• Supports live chat, multimedia sharing, and virtual community creation (clubs, forums, open communities).
• Includes reward points (FANING Points, FP) system where users earn rewards from activities and advertising revenue sharing.
• Offers multilingual real-time translation (17 languages) for global accessibility.
• Provides commerce services via the FANING Shop, including:
  • Fan merchandise, concert tickets, gifts, digital items (emojis, stickers, AR filters).
  • User-to-user transactions with a transaction fee ranging between 7% and 15% depending on the item.
• Content Types: User-generated content such as fanart, web novels, webtoons, and fan-created merchandise.
• Company-created original content: Web series, shows, live concerts, and exclusive web content.

Customer Base and Reach

• As of December 31, 2024:
  • Total Users: Over 26.6 million registered users worldwide.
  • Main Age Groups: 20-29 and 30-39 years old (~80% of users), median age 27.
  • Regions: Significant user base in South Korea, U.S., Southeast Asia (e.g., Thailand, Indonesia, Japan, Vietnam, Philippines, Brazil). No operations in China or Hong Kong due to regulatory restrictions.
  • User Engagement: Monthly active users (MAUs) peaked around 795,159 in October 2024, with fluctuations throughout the year.

Employees

• Number of Employees (as of December 31, 2024):
  • 5 full-time employees directly employed by Global Interactive Technologies.
  • 7 full-time employees through its subsidiary Faning Korea, LLC.
  • Occasional contract workers.
• Management Change: On February 26, 2024, the CEO was terminated for cause; also appointed an interim CEO.

Revenue and Income

• 2024:
  • No revenue from continuing operations; revenue from discontinued operations was approximately $196.
  • Loss from operations: $888,363.
  • Net loss: $6,171,969.
  • Negative net equity (accumulated deficit): approximately $37.9 million.
• 2023:
  • Revenue from discontinued operations was approximately $827,489.
  • Loss from operations: $2,005,925.
  • Net loss: $9,407,635.
  • Negative net equity (accumulated deficit): approximately $38.9 million.

Financial and Operational Status

• As of December 31, 2024:
  • Current Assets: $2,987 (primarily cash and receivables, heavily decreased from prior year).
  • Current Liabilities: $668,339.
  • The company has a working capital deficit, indicating financial instability.
  • The company is a development-stage company with no positive revenue and ongoing operational losses.
  • Management considers its financial condition as raising substantial doubt about ongoing viability as a going concern.
  • The company is actively seeking additional capital via equity and debt to fund operations.

Strategic and Growth Initiatives

• Launched FANING platform in May 2021, targeting global K-Pop and Korean culture fans.
• Completed IPO on Nasdaq on July 31, 2023, raising approximately $8.77 million.
• Restructured subsidiaries, divested non-core assets, and acquired Faning Korea in December 2024.
• Focused on platform upgrades, content innovation, international expansion (U.S. and U.K.), and community growth.
• No current revenue; future growth tied to user expansion, content monetization, advertising, and e-commerce.

Summary

• Main Activities: Operating an online social community platform centered on Korean pop culture fandom, integrating multimedia content, community building, translation, and e-commerce services.
• Customer Base: Over 26.6 million registered worldwide users, primarily young adults heavily engaged in fan communities.
• Employees: 12 full-time employees plus contractors.
• Financials: No revenue from ongoing operations; large net losses (~$6.2 million in 2024); assets are minimal, liabilities substantial.
• Current Status: In early growth and development phase, with significant financial challenges and actively raising capital to sustain future operations.