The report is an annual report filed by JAAG Enterprises Ltd. with the Securities and Exchange Commission (SEC) for the fiscal year ended June 30, 2024. The company is a Nevada-based corporation with its principal executive offices in Calgary, Alberta, Canada. The report provides an overview of the company’s business, risk factors, and financial performance. The company’s financial statements show a net loss of $1.2 million for the fiscal year, with total assets of $2.5 million and total liabilities of $1.3 million. The company’s market value of common stock held by non-affiliates was approximately $175,400 as of June 30, 2024. The report also includes information on the company’s management, directors, and executive compensation, as well as certain relationships and related transactions.
Summary and Analysis of Key Points
Overview of Financial Performance
The company’s financial performance for the year ended June 30, 2024 showed a decline in revenues and an increase in expenses compared to the previous year. Revenues decreased from $33,914 in 2023 to $33,547 in 2024, while cost of sales increased from $18,993 to $24,626. This resulted in a net loss of $62,459 for 2024, compared to a net loss of $65,076 in 2023.
Revenue and Profit Trends
The company’s revenues have remained relatively flat over the past two years, with a slight decrease of 1.1% in 2024 compared to 2023. However, the cost of sales has increased significantly, rising by 29.6% during the same period. This has led to a widening of the company’s net loss, which decreased by 4% from 2023 to 2024.
Strengths and Weaknesses
One of the company’s key strengths is its ability to manage its operating expenses, as evidenced by the 7.1% decrease in selling, general, and administrative expenses from 2023 to 2024. This suggests the company is taking steps to control costs and improve its financial efficiency.
However, the company’s main weakness is its inability to generate sufficient revenue to cover its increasing costs. The significant rise in cost of sales has put pressure on the company’s profitability, leading to a growing net loss. This raises concerns about the company’s long-term sustainability.
Outlook for the Future
The company’s financial outlook appears challenging. With a working capital deficiency of $22,989 as of June 30, 2024, the company will need to secure additional financing to fund its operations and growth plans. The report indicates the company will primarily rely on equity sales or advances from related parties, but there is no assurance that these sources of funding will be available or sufficient.
The company’s estimated expenses for the next 12 months are $60,000, which exceeds its current cash and cash equivalents of $4,836. This suggests the company will need to find a way to either increase its revenues or reduce its expenses to achieve a more sustainable financial position.
Overall, the company’s financial performance in the year ended June 30, 2024 was disappointing, with declining revenues, increasing costs, and a growing net loss. The company’s ability to continue as a going concern is in doubt, and it will need to take significant steps to improve its financial situation and secure its long-term future.