Thu, Sep 5, 10:03 AM (131 days ago)
THC Therapeutics, Inc. reported a significant decline in financial performance for the quarter ending January 31, 2024. The company recorded no revenues, continuing from the previous year, and incurred a net loss of $571,975 compared to a net income of $1,685,852 in the same quarter last year. This loss was primarily driven by a substantial decrease in other income, specifically a $2.4 million decline in gains on derivative liabilities. Operating expenses decreased by 69% to $85,151, largely due to reduced professional fees and general administrative costs. For the six months ending January 31, 2024, the net loss increased to $634,460, reflecting ongoing challenges in generating revenue. Cash on hand was reported at $3,511, with a working capital deficit of $3.8 million, raising substantial doubt about the company's ability to continue as a going concern. The company plans to mitigate cash flow issues through potential equity financing and operational improvements but faces uncertainties regarding future capital availability. The overall financial health remains precarious, with significant reliance on related party advances for liquidity.