Overview of Eco Bright’s Financial Performance

Eco Bright, a company focused on developing blockchain-based solutions, has faced significant financial challenges in recent years. The key points from the financial report are as follows:

1. Going Concern: As of December 31, 2024, Eco Bright had $84,733 in assets and an accumulated deficit of $178,971. The company’s current liquidity resources are not sufficient to fund its anticipated level of operations for at least the next 12 months, raising substantial doubt about its ability to continue as a going concern.

2. Revenues and Expenses: Eco Bright generated $0 in consulting revenue in 2024, compared to $32,132 in 2023. Operating expenses increased significantly from $18,716 in 2023 to $169,033 in 2024, primarily due to higher professional fees and general and administrative expenses related to the Universa Hub Africa acquisition.

3. Net Income (Loss): As a result of the revenue decline and increased expenses, Eco Bright reported a net loss of $166,378 in 2024, compared to a net income of $13,131 in 2023. The company expects losses from operations to continue in the near future as it adds staff and incurs legal and accounting expenses associated with maintaining a reporting company.

4. Liquidity and Capital Resources: Eco Bright had a working capital deficit of $586,113 as of December 31, 2024, compared to a working capital of $6,532 at the end of 2023. The company’s cash and other current assets totaled $84,733 in 2024, up from $17,400 in 2023. However, the company also had $650,226 in notes payable to related parties, contributing to the overall working capital deficit.

5. Investing Activities: Eco Bright invested $430,306 in software development costs and intangible assets during 2024, a significant increase from the previous year when there were no investing activities.

6. Financing Activities: The company received $650,226 in cash from related party advances in 2024 to fund its operations and investments.

Strengths and Weaknesses

Strengths:

• Eco Bright has been able to secure funding from related parties to support its operations and investments in software development.
• The company has made significant investments in developing its blockchain-based solutions, which could potentially generate revenue in the future.

Weaknesses:

• Eco Bright’s financial performance has been poor, with a significant net loss in 2024 and a working capital deficit.
• The company’s ability to continue as a going concern is in doubt, as it lacks sufficient liquidity resources to fund its anticipated level of operations for the next 12 months.
• The company’s revenue-generating capabilities are limited, as it has not been able to generate meaningful revenue from its consulting services or blockchain-based solutions.

Outlook for the Future

Eco Bright’s future outlook is uncertain. The company will need to secure additional equity or debt financing to continue its operations and achieve profitability. Without a significant improvement in its financial performance and liquidity position, Eco Bright’s ability to continue as a going concern is in jeopardy. The company’s success will depend on its ability to generate and grow revenue from its blockchain-based solutions, as well as its ability to effectively manage its operating expenses.