Fri, Jul 12, 5:05 PM (57 days ago)
E-Smart Corp.'s Q3 2024 10-Q report reveals a challenging financial situation. The company reported a net loss of $26,929 for the nine months ending May 31, 2024, and a net loss of $7,668 for the three months ending the same date. Revenues were modest at $6,906 for the nine months and $4,006 for the three months. Operating expenses for the nine-month period totaled $33,864, with significant contributions from general and administrative expenses and depreciation. The balance sheet shows total assets of $157,197, primarily composed of intangible assets related to website development. Current liabilities are significantly higher at $180,604, resulting in a stockholder’s deficit of $23,408. Cash flow from operating activities was negative $11,514, and investing activities used $157,300, primarily for intangible assets. Financing activities provided $168,594 through a related party loan. The company faces substantial doubt about its ability to continue as a going concern and is dependent on additional investment capital to fund operations. The report highlights the need for future financing to sustain operations and develop its digital platform further.