Wed, Sep 11, 2:27 PM (125 days ago)
Arax Holdings Corp. reported significant financial changes for the quarter ending April 30, 2024, showing a revenue increase of 33% to $301,750 compared to $226,886 in the same quarter of 2023. For the six months, revenue rose 16% to $528,636 from $453,772, driven by enhanced offerings in its Blockchain-as-a-Platform (BaaP) services. Operating expenses decreased dramatically by 97% to $88,000 from $2.7 million year-over-year, primarily due to reduced general and administrative costs and stock compensation. This led to a net income of $213,328, contrasting with a loss of $1.8 million in the prior year quarter. However, the company faces liquidity challenges, reporting a working capital deficit of approximately $397,000. Cash flow from operations was negative at $183,558, necessitating additional financing to sustain operations. Despite the improvements in revenue and cost management, uncertainties persist regarding future capital requirements and operational viability, compounded by the need for a robust internal control system. The company’s ability to continue as a going concern remains in question without securing further funding.