Wed, Apr 16, 8:00 PM (36 days ago)
**Wewards, Inc. (Ticker: None) Q1 2025 Financial Summary** **Financial Health & Performance:** - **Revenue:** $0 for Q1 2025, consistent with Q1 2024. - **Profit Margins:** Negative, with a net loss of $138,291 for Q1 2025, slightly improved from $140,514 in Q1 2024. - **Cash Flow:** Negative cash flow from operations at $46,352 for the nine months ending February 28, 2025, an improvement from $118,029 in the same period of 2024. - **Earnings Changes:** Net loss decreased by $2,223 or 2% in Q1 2025 compared to Q1 2024. **Quarterly Performance Discussion:** - **Operating Expenses:** Decreased by $766 or 5% in Q1 2025, primarily due to reduced general and administrative expenses. - **Interest Expense:** Decreased slightly due to one less day of interest in Q1 2025 compared to the leap year period in 2024. - **Rent Expense:** Significantly reduced due to lease termination effective October 31, 2023. **Trends & Uncertainties:** - **Revenue Generation:** The company has not generated any revenue and is dependent on licensing agreements for future revenue. - **Cash Position:** As of February 28, 2025, the company had $717,853 in cash, but negative working capital of $3,194,162, raising concerns about sustainability. - **Going Concern:** The company faces substantial doubt about its ability to continue as a going concern due to recurring losses and negative working capital. **Future Operations Impact:** - **Dependence on Related Party Financing:** The company relies heavily on financing from its CEO and majority shareholder, Mr. Pei, which may not be sustainable. - **Need for Additional Financing:** The company will require additional funds to repay related party debts and sustain operations. - **Material Weaknesses:** The company has identified material weaknesses in internal control over financial reporting, which may affect financial reporting reliability. **Conclusion:** Wewards, Inc. faces significant financial challenges, including recurring losses, negative cash flow, and dependence on related party financing. The company's ability to continue as a going concern is uncertain, and it will need to secure additional financing and address material weaknesses in its internal controls to sustain operations and achieve profitability.