Tue, Apr 15, 5:32 PM (11 days ago)
**Eline Entertainment Group, Inc. (OTC: EEGI) 2024 Annual Report Summary** **Financial Performance:** - **Revenue:** $0 for 2024 and 2023. - **Net Income:** Net loss of $32,877,000 for 2024, compared to $53,931,000 for 2023. - **Operating Expenses:** $35,627,000 for 2024, down from $53,931,000 in 2023. - **Earnings Per Share:** Basic and diluted loss per share was $0.000 for both years. **Strategic Overview:** - **Business Plan:** Focuses on mergers and acquisitions of operating companies. - **Current Status:** Developmental stage company with no significant operations. - **Future Outlook:** Seeking capital or target companies for acquisition. **Risk Factors:** - **Financial Condition:** Substantial doubt about the ability to continue as a going concern due to recurring losses and the need for additional capital. - **Market Position:** Limited liquidity and no established public trading market for shares. **Financial Condition:** - **Cash Flow:** Negative cash flows from operations, with cash used in operating activities totaling $37,220,000 for 2024. - **Liabilities:** Total liabilities of $89,309,000 as of December 31, 2024. - **Stockholders' Deficit:** Deficit of $89,309,000 for 2024. **Market Position Changes:** - **Share Price:** Closed at $0.0003 per share as of April 14, 2025. - **Shareholders:** Approximately 93 holders of 8,524,529,727 shares of common stock. **Future Outlook:** - **Capital Needs:** Requires additional funding to meet ongoing obligations and fund anticipated operating losses. - **Strategic Moves:** Plans to raise capital through equity or debt financing and advances from related parties. **Risk Factors:** - **Operational Risks:** Dependence on raising capital and finding suitable merger candidates. - **Market Risks:** Competition from other entities in locating suitable transactions. **Management and Governance:** - **Executive Team:** Includes Chi Ching Hung (Chairwoman and Director), Shing Hei Lee (CEO, CFO, President, Treasurer, Director), and Timothy Chee Yau Lam (Secretary). - **Board Composition:** Two directors, neither of whom qualifies as independent under NASDAQ rules. **Financial Statements:** - **Auditor's Opinion:** Going concern opinion due to recurring losses and the need for additional capital. - **Internal Controls:** Management concluded that internal controls were not effective as of December 31, 2024. **Conclusion:** Eline Entertainment Group, Inc. faces significant financial challenges and operational risks. The company's ability to continue as a going concern is dependent on raising additional capital and successfully implementing its business plan. Investors should be aware of the substantial risks involved.