Fri, Jul 12, 11:04 AM (57 days ago)
CXJ Group Co., Limited's Form 10-Q for the quarter ended August 31, 2023, highlights a significant decline in revenue to $504,517 from $982,097 in the same period in 2022, primarily due to decreased sales of motor oil and auto parts. The company reported a net loss of $502,944 compared to a net profit of $34,013 in the previous year. This was driven by increased general and administrative expenses, which rose to $634,930 from $227,369, largely due to higher consultancy fees and amortization of intangible assets. Cash flow from operations turned positive at $100,463, a substantial improvement from a negative $863,432 the previous year, mainly due to increased advanced receipts and accrued liabilities. The company’s financial position remains precarious, with an accumulated deficit of $3,835,813 and significant current liabilities of $3,539,849. The disposal of a 51% equity interest in a subsidiary and ongoing efforts to restructure liabilities indicate attempts to stabilize operations. However, substantial doubts about the company's ability to continue as a going concern persist.