Thu, Oct 17, 4:38 PM (77 days ago)
UPAY, Inc. (UPAY) reported significant financial challenges in its 10-Q for the quarter ended August 31, 2024. Revenue dropped to $168,071 from $364,042 year-over-year, primarily due to decreased transactional activity in South Africa. The net loss increased to $191,324 from $174,618, reflecting a worsening financial position. Total expenses were reduced to $302,897, down from $373,834, largely due to lower administrative costs. As of August 31, 2024, UPAY's working capital was negative at ($281,627), worsening from ($229,865) at the previous fiscal year's end. Cash flow from operations deteriorated significantly, with a net cash outflow of ($651,056) compared to ($79,847) in the prior year. The company continues to rely on equity financing to support operations, raising concerns about its ability to sustain operations without adequate revenue generation. The balance sheet reflects total assets of $206,683 against liabilities of $523,347, resulting in a stockholders' deficit of $316,664. The company’s future operations face uncertainties, particularly regarding the adaptability of its services to the U.S. market and the overall demand for its software solutions. Overall, UPAY's financial health indicates a precarious situation requiring strategic intervention to avoid further losses.