Overview of Financial Performance

The financial report provides an overview of the company’s financial performance for the fiscal years ended June 30, 2024 and June 30, 2023. The key points are:

• Revenues decreased from $25,000 in fiscal year 2023 to $5,000 in fiscal year 2024, a decline of $20,000.
• Total operating expenses increased from $1,025,623 in fiscal year 2023 to $1,162,772 in fiscal year 2024, an increase of $137,149. This was primarily due to a $305,740 increase in development costs for the Asia Diamond Exchange, offset by decreases in salaries, general/administrative expenses, and professional services.
• The company had a loss from operations of $1,157,772 in fiscal year 2024, compared to a loss of $1,000,623 in fiscal year 2023, an increase of $157,149 in losses.
• Net other expenses increased from $4,608,523 in fiscal year 2023 to $7,037,608 in fiscal year 2024, an increase of $2,429,085. This was mainly due to a loss on note conversions, penalties on loans/notes, and higher financing costs.
• The company had a net loss of $8,195,380 in fiscal year 2024, compared to a net loss of $5,609,146 in fiscal year 2023, an increase of $2,586,234 in net losses.
• Cash and cash equivalents decreased from $17,765 at the end of fiscal year 2023 to $303 at the end of fiscal year 2024.
• Net cash used in operating activities increased from $1,572,400 in fiscal year 2023 to $1,967,750 in fiscal year 2024.
• Net cash provided by financing activities increased from $1,520,712 in fiscal year 2023 to $1,949,682 in fiscal year 2024.

Revenue and Profit Trends

The company experienced a significant decline in revenues, going from $25,000 in fiscal year 2023 to only $5,000 in fiscal year 2024, a 80% decrease. This drop in revenues, combined with an increase in operating expenses, led to a larger loss from operations, which grew from $1,000,623 in fiscal year 2023 to $1,157,772 in fiscal year 2024.

The company also saw a substantial increase in net other expenses, which grew from $4,608,523 in fiscal year 2023 to $7,037,608 in fiscal year 2024. This was primarily due to losses on note conversions, penalties on loans/notes, and higher financing costs. As a result, the company’s net loss increased from $5,609,146 in fiscal year 2023 to $8,195,380 in fiscal year 2024, a 46% increase.

Strengths and Weaknesses

Strengths:

• The company has secured an equity line of credit for up to $10 million with an institutional investor, which could provide much-needed capital to fund its business plans.
• The company is pursuing various growth initiatives, such as commercializing geomagnetic energy technology, advancing its Philux Global Select Growth Fund, and developing the Asia Diamond Exchange and International Financial Center in Vietnam.
• The company continues to provide advisory and consulting services through its subsidiaries, which could generate some revenue.

Weaknesses:

• The company has experienced significant declines in revenues, going from $25,000 in fiscal year 2023 to only $5,000 in fiscal year 2024.
• Operating expenses have increased, leading to larger losses from operations.
• Net other expenses have grown substantially, primarily due to losses on note conversions, penalties on loans/notes, and higher financing costs.
• The company’s cash and cash equivalents have dwindled, going from $17,765 at the end of fiscal year 2023 to only $303 at the end of fiscal year 2024.
• The company is heavily reliant on financing activities to fund its operations, as evidenced by the increase in net cash provided by financing activities.

Outlook for the Future

The company’s outlook for the future appears to be heavily dependent on its ability to secure additional financing and successfully execute on its various growth initiatives. The company has stated that it aims to focus on commercializing the geomagnetic energy technology, advancing the Philux Global Select Growth Fund, developing the Asia Diamond Exchange and International Financial Center in Vietnam, and carrying out merger and acquisition activities.

To support these plans, the company is working on securing multiple financing agreements with international investor groups, as reported in various SEC filings. The company intends to use these funds to finance its various initiatives and meet its capital needs for investments and acquisitions.

However, the company’s recent financial performance, characterized by declining revenues, increasing expenses, and growing net losses, raises concerns about its ability to execute on its ambitious plans. The company will need to address these challenges and demonstrate a clear path to profitability and sustainable growth in order to inspire confidence in its future prospects.