Financial Performance Overview

The financial report highlights the key results of operations for the company over the past two fiscal years, ending December 31, 2024 and 2023. The report provides insights into the company’s revenue, operating expenses, net losses, liquidity, and capital resources.

Revenues The company’s revenues have increased significantly, from $28,319 in 2023 to $40,723 in 2024, representing a substantial growth in the company’s business activity.

Operating Expenses The company’s total operating expenses have also increased substantially, from $29,791 in 2023 to $95,748 in 2024. This increase was primarily driven by higher amortization expenses, general and administrative expenses, and professional fees. The rise in general and administrative expenses was mainly due to increased server rental and marketing expenses.

Net Losses The company’s net losses have increased from $1,472 in 2023 to $55,025 in 2024, reflecting the significant growth in operating expenses outpacing the revenue growth.

Liquidity and Capital Resources As of December 31, 2024, the company’s total assets were $56,556, primarily consisting of cash ($226) and intangible assets ($56,330). The company’s total liabilities were $101,394, including deferred revenue ($1,978) and a loan from a director ($99,416). The company’s shareholders’ equity has decreased from $10,187 in 2023 to a deficit of $44,838 in 2024.

The company’s net cash flows used in operating activities were $55,025 in 2024, compared to $1,472 in 2023. The company generated $12,000 and $54,120 in cash from investing activities in 2024 and 2023, respectively. The company also generated $44,371 and $34,746 in cash from financing activities in 2024 and 2023, respectively.

Off-Balance Sheet Arrangements The company did not have any off-balance sheet arrangements as of December 31, 2024 that could have a material impact on its financial condition, operations, or capital resources.

Limited Operating History and Need for Additional Capital The company is in the start-up stage and has generated limited revenues. The company’s business is subject to risks inherent in establishing a new enterprise, including limited capital resources and potential cost overruns. The company has no assurance that future financing will be available on acceptable terms, and if financing is not available, the company may be unable to continue, develop, or expand its operations. Equity financing could result in additional dilution to existing shareholders.

In summary, the financial report highlights the company’s significant revenue growth, but also its substantial increase in operating expenses, leading to a significant net loss. The company’s liquidity and capital resources position remain challenging, with a need for additional financing to support its ongoing operations and future growth.