10-Q - Sound Cave Technology Inc. (0001912540) (Filer)

Mon, Jun 30, 10:01 AM (19 days ago)

**Summary of Sound Cave Technology Inc. (SCTI) Q1 2025 Financial Report** Sound Cave Technology Inc. (SCTI), a wearable tech company, reported no revenue for Q1 2025, with total operating expenses of $17,358,000, including $3,408,000 in general and administrative expenses and $13,950,000 in professional fees. This resulted in a net loss of $17,358,000, compared to a net loss of $33,000 in Q1 2024. The company had a cash balance of $1,299,000 as of March 31, 2025, down from $1,332,000 at the end of 2024. Total liabilities increased to $78,745,000, with a significant portion owed to the related party, Christopher Campbell, the founder and director. The company's working capital deficit widened to $77,246,000. SCTI received $11,025,000 from the director for operating expenses, but faces substantial doubt about its ability to continue as a going concern due to lack of revenue and increasing liabilities. The company's financial statements were prepared under the assumption of a going concern, but its continuation depends on further financial support and achieving profitable operations. There were no significant changes in internal controls or legal proceedings. The company did not identify any new accounting standards that would materially impact its financial position. (Word count: 200)