Mon, Jul 15, 12:00 PM (54 days ago)
BlackStar Enterprise Group, Inc. reported a net loss of $499,072 for Q1 2024, significantly higher than the $117,204 loss in Q1 2023. The company had no revenue in both periods. The increase in net loss was driven by higher legal and professional fees, which rose to $363,253 from $44,652, primarily due to litigation costs related to convertible debt issues. General and administrative expenses also increased to $23,285 from $12,252. Interest expenses rose to $65,534 from $25,410 due to debt-related costs. As of March 31, 2024, BlackStar had a working capital deficit of $1,934,762 and cash of $17,433, down from $33,550 at the end of 2023. The company raised $114,000 in new loans during the quarter but continued to face significant liquidity challenges. BlackStar plans to raise $5 million in the next year to support its operations and digital trading platform development. The company’s ability to continue as a going concern is uncertain, dependent on securing additional financing and achieving profitable operations.