Tue, Jan 14, 9:33 PM (31 days ago)
E-Smart Corp. (Ticker: ESMT) reported its Q1 results for the period ending November 30, 2024, highlighting a revenue of $4,451, a notable increase from zero in the prior year. Despite the revenue growth, the company incurred a net loss of $14,514, primarily driven by operating expenses totaling $16,579, which included significant amortization costs of $8,690. The accumulated deficit rose to $56,729. Cash and cash equivalents improved to $3,945 from $546, while total assets increased to $162,518, reflecting a rise in prepaid expenses. Total liabilities stood at $182,533, indicating ongoing financial strain. The company’s equity remains negative at $(20,015), underscoring challenges in achieving profitability. Management indicated reliance on additional capital to sustain operations, citing substantial doubt regarding its ability to continue as a going concern without securing further funding. The company aims to enhance its platform connecting tattoo artists with clients, leveraging an API service for monetization. Future operations may be influenced by market acceptance and the effectiveness of ongoing marketing strategies. E-Smart Corp. continues to face uncertainties typical of emerging growth companies, including limited operating history and the need for additional capital.