10-Q - Transit Pro Tech Inc. (0002016167) (Filer)

Thu, May 15, 12:39 PM (40 days ago)

**Transit Pro Tech Inc. (Ticker: N/A) Q1 2025 Financial Summary** **Financial Health & Performance:** - **Revenue:** $70.5K for Q1 2025, up from $0 in Q1 2024, primarily from related party licensing fees. - **Gross Profit:** $53K for Q1 2025, with a gross margin of approximately 75%. - **Net Loss:** $121.3K for Q1 2025, narrower than the $257.8K loss in Q1 2024. - **Cash Flow:** Net cash used in operations was $100.7K for the six months ended March 31, 2025. - **Cash Position:** $265.7K as of March 31, 2025, but not adequate for full-year operations. - **Shareholders' Deficit:** $387.2K as of March 31, 2025, indicating a need for additional financing. **Profit Margins & Earnings:** - **Gross Margin:** Approximately 75% for Q1 2025. - **Operating Margin:** Negative, with operating losses of $125.1K for Q1 2025. - **Net Margin:** Negative, with a net loss of $121.3K for Q1 2025. **Trends & Uncertainties:** - **Revenue Growth:** Positive trend with new revenue streams from licensing agreements. - **Expense Management:** General and administrative expenses decreased by $37.4K in Q1 2025 compared to Q1 2024. - **Going Concern:** Substantial doubt about the ability to continue as a going concern due to cash flow and financing needs. - **Financing:** Reliant on related party financing and potential equity or debt offerings. **Future Operations & Impact:** - **Capital Raising:** Plans to raise additional capital through equity or debt offerings. - **Expansion:** Intends to recruit additional personnel and expand operations. - **Market Focus:** Primarily targeting the U.S. market but has licensing agreements in China. **Management's Discussion:** - **Liquidity:** Needs more than cash on hand and expected royalties to meet expenses. - **Capital Requirements:** Anticipates incurring at least $750K in expenses over the next twelve months. - **Risk Factors:** Dependence on related party financing and the ability to raise additional capital. **Conclusion:** Transit Pro Tech Inc. shows signs of revenue growth but faces significant financial challenges. The company needs to secure additional financing to support its operations and achieve profitability. The going concern uncertainty highlights the need for strategic financial planning and successful capital raising efforts.