Fri, Jun 13, 8:31 PM (31 days ago)
**Hartford Creative Group, Inc. (HFUS, OTC Markets Group) Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** Q1 2025 revenue surged to $354,791, up 204% from Q1 2024's $116,640. For the nine months, revenue reached $1,200,290, a 570% increase from the previous year. - **Profit Margins:** Operating income for Q1 2025 was $184,904, a 509% increase from Q1 2024. Net income for Q1 2025 was $90,957, up 69% from the previous year. - **Cash Flow:** Operating activities provided $24,708 in cash for the nine months, compared to $18,498 in 2024. Investing activities used $527,047, primarily due to short-term loan receivables. - **Liquidity:** As of April 30, 2025, the company had a working capital deficit of $3,125,623 and an accumulated deficit of $5,548,602, indicating liquidity challenges. **Trends and Uncertainties:** - **Business Shift:** The company transitioned to social media advertising in January 2024, leading to significant revenue growth. - **Market Concentration:** A few customers and contractors represent a significant portion of the company's revenue and expenses, posing concentration risks. - **Going Concern:** The company faces substantial doubt about its ability to continue as a going concern due to working capital deficits and accumulated losses. **Future Operations and Impact:** - **Mini-Drama Business:** The company plans to expand into the mini-drama business, aiming to capture market interest and enhance revenue streams. - **Funding Needs:** The company requires over $2,000,000 for the next twelve months and is seeking additional financing through related parties' loans and potential uplisting to the Nasdaq exchange. - **Internal Controls:** The company identified material weaknesses in its internal controls over financial reporting, which may impact the reliability of its financial statements.