Wed, Apr 30, 7:36 PM (22 days ago)
**Business Warrior Corporation (BZWR) Q1 2024 Financial Summary** **Financial Health and Performance:** - **Revenue:** Q1 2024 revenue was $555,129, down from $910,719 in Q1 2023, primarily due to the loss of marketing agency revenue from the Helix division. - **Profit Margins:** The company reported a net loss of $1,627,912 for Q1 2024, compared to a net loss of $249,300 in Q1 2023. The increase in net loss is mainly due to higher other expenses, including interest expenses and changes in the fair value of a derivative liability. - **Cash Flow:** The company used $845,045 in cash from operating activities in Q1 2024, an improvement from the $1,149,391 used in Q1 2023. This improvement is attributed to non-cash adjustments, including amortization of debt discount and changes in the fair value of derivative liabilities. **Operational Metrics:** - **Operating Expenses:** Q1 2024 operating expenses were $694,994, a 12% decrease from $787,932 in Q1 2023, due to operational efficiencies and cost-cutting measures. - **Segment Performance:** The Helix division experienced a decrease in marketing agency revenue, while the Alchemy division faced challenges due to the loss of clients and misrepresentation of inherited product development. **Trends and Uncertainties:** - **Revenue Trends:** The company anticipates continued revenue growth from its PayPlan product, which showed a net positive increase of $297,500 in Q1 2024. - **Liquidity:** The company's total current assets decreased to $212,591 in Q1 2024, primarily due to an increase in accounts receivables collected. Total current liabilities were $5,935,003, reflecting an increase in accounts payable and accrued liabilities. - **Going Concern:** The company's financial statements indicate substantial doubt about its ability to continue as a going concern within one year after the date of issuance. Management plans to meet near-term obligations with existing funding options and improve profitability. **Future Operations Impact:** - **Strategic Initiatives:** The company is focusing on scaling PayPlan, improving financial performance, and working towards SEC filing regulations and recommencing trading. - **Legal Settlements:** Recent settlements have resolved ongoing disputes, reducing contingent liabilities and allowing the company to focus on core operations. **Conclusion:** Business Warrior Corporation faces significant financial challenges but is taking steps to improve its operational efficiency and revenue streams. The company's focus on its PayPlan product and strategic initiatives may help mitigate its current financial difficulties and position it for future growth. However, the substantial doubt about its ability to continue as a going concern highlights the need for continued vigilance and strategic planning.