Fri, Aug 23, 9:21 PM (144 days ago)
KeyStar Corp. filed an amended Form 10-Q/A for the quarter ended March 31, 2024, to restate financial statements due to errors in derivative liability calculation and liability accruals. The company reported a significant net loss of $22,145,586 for the nine months, up from $7,803,163 in the prior year, primarily due to increased operational costs associated with launching its sports betting operations in Tennessee. Revenues were negligible, with a net gaming loss of $2,203,866 for the period. Current assets decreased to $907,122 against current liabilities of $14,535,560, resulting in a working capital deficit of $13,628,438. Cash flow from operations was negative at $8,937,228, reflecting higher losses and interest expenses. The company continues to rely on related-party financing, increasing its line of credit to $10 million, with significant reliance on future fundraising to sustain operations. The restatement highlights the financial uncertainties facing KeyStar, particularly in its transition to a gaming-focused business model, raising concerns about its ability to continue as a going concern without additional capital.