Thu, Apr 10, 10:17 AM (16 days ago)
**ZHANLING INTERNATIONAL LIMITED (ZHANLING) - Q1 2025 FINANCIAL SUMMARY** **Financial Health:** Zhanling International Limited (ZHANLING) reported a challenging quarter, with significant financial uncertainties. The company has a stockholders' deficit of $32,535,000 and an accumulated deficit of $414,371,000 as of February 28, 2025. The company's financial statements were prepared under the going concern basis, indicating substantial doubt about its ability to continue operations within the next year. **Performance Metrics:** - **Revenue:** ZHANLING reported no revenue for the three and nine months ended February 28, 2025. - **Profit Margins:** The company incurred a net loss of $7,595,000 for the three months ended February 28, 2025, and $24,161,000 for the nine months ended February 28, 2025. - **Cash Flow:** Net cash used in operating activities was $30,336,000 for the nine months ended February 28, 2025. Financing activities provided $30,336,000, primarily through loans from the CEO and a non-related party. **Earnings Changes:** - **Q1 2025 vs. Q1 2024:** The net loss decreased by $3,253,000 (30%) compared to the same period in 2024. - **Nine Months 2025 vs. 2024:** The net loss increased by $2,762,000 (13%) compared to the same period in 2024. **Quarterly Performance Discussion:** ZHANLING's primary expenses are professional fees, including audit and Falcon services fees. The company has no operations or revenues and relies on director loans and potential equity financing to continue operations. The ability to raise additional capital is crucial for the company's survival. **Trends and Uncertainties:** - **Going Concern:** The company faces significant financial challenges and substantial doubt about its ability to continue as a going concern. - **Capital Raising:** ZHANLING plans to seek additional capital through private placements of common stock or further director loans. - **Operational Uncertainties:** The company has no assurance of commencing profitable operations or raising sufficient funding. **Future Operations Impact:** ZHANLING's future operations depend on securing additional financing. Failure to raise sufficient capital may result in the company's inability to continue operations, leading to potential liquidation or restructuring. The company's financial statements do not include adjustments for potential asset recoverability or liability classification if it cannot continue as a going concern.