Mon, May 19, 8:50 PM (35 days ago)
**SMC Entertainment, Inc. (SMC: OTC)** **Q1 2025 Financial Summary:** SMC Entertainment, Inc. reported a significant turnaround in Q1 2025, with net income of $7,588,731, compared to $155,813 in Q1 2024. This substantial increase was primarily due to a gain on extinguishment of debt of $8,308,360. Revenue for the quarter was $43,653, generated from management fees from the newly acquired Bateau Asset Management Pty, Ltd. **Key Financial Metrics:** - **Revenue:** $43,653 (Q1 2025) vs. $0 (Q1 2024) - **Net Income:** $7,588,731 (Q1 2025) vs. $155,813 (Q1 2024) - **Operating Expenses:** $233,856 (Q1 2025) vs. $204,883 (Q1 2024) - **Cash Used in Operations:** $128,757 (Q1 2025) vs. $13,001 (Q1 2024) - **Cash from Investing Activities:** $19,113 (Q1 2025) vs. $0 (Q1 2024) - **Cash from Financing Activities:** $113,633 (Q1 2025) vs. $9,954 (Q1 2024) **Profit Margins:** - **Operating Margin:** -436.5% (Q1 2025) vs. -100% (Q1 2024) - **Net Margin:** 174.0% (Q1 2025) vs. 100% (Q1 2024) **Cash Flow:** - **Operating Cash Flow:** -$128,757 (Q1 2025) vs. -$13,001 (Q1 2024) - **Investing Cash Flow:** $19,113 (Q1 2025) vs. $0 (Q1 2024) - **Financing Cash Flow:** $113,633 (Q1 2025) vs. $9,954 (Q1 2024) **Earnings Changes:** - **Earnings per Share (EPS):** $0.01 (Q1 2025) vs. $0.00 (Q1 2024) **Quarterly Performance Discussion:** SMC's Q1 2025 performance was significantly impacted by the acquisition of Bateau Asset Management Pty, Ltd., which contributed to revenue and increased operating expenses. The company also recognized a substantial gain on extinguishment of debt, which greatly improved net income. However, the company continues to face challenges, including substantial debt and going concern uncertainties. **Trends and Uncertainties:** - **Positive Trends:** Acquisition of Bateau and gain on extinguishment of debt. - **Uncertainties:** Substantial debt, going concern uncertainties, and reliance on external financing. **Future Operations Impact:** SMC plans to consolidate its technologies under the FYNN AI platform, aiming to streamline product offerings and reduce development costs. The company will also continue to seek external financing to support its operations and potential future acquisitions. **Going Concern Uncertainty:** Despite the positive net income, SMC faces substantial doubt about its ability to continue as a going concern due to recurring losses, a significant accumulated deficit, and reliance on external financing. The company's ability to generate positive cash flows from operations remains uncertain.