Fri, Aug 16, 10:06 AM (337 days ago)
Ezagoo Limited reported a challenging second quarter for 2024, with revenues of $20,706, down 45% from $37,543 in Q2 2023, and a 49% decline in six-month revenues to $64,222. The gross loss for Q2 was $3,383, with total operating expenses significantly impacting profitability, leading to a net loss of $157,140 for the quarter and $251,805 for the first half of 2024. Cash flow from operations also worsened, with a net cash outflow of $274,670 compared to $592,854 in the prior year, reflecting reduced accounts payable and customer advances. The company’s working capital deficit increased to $3,314,677, raising concerns about its ability to continue as a going concern. Despite a slight improvement in cash equivalents to $228,838, total liabilities are high at $3,578,107, primarily due to related party loans. The company continues to rely on shareholder support and external financing to meet obligations. Management has identified material weaknesses in internal controls, which could hinder financial reporting accuracy. Looking forward, the focus will be on stabilizing operations and improving profitability amidst significant uncertainties in the market.