Mon, Sep 30, 6:24 PM (90 days ago)
First America Resources Corporation reported a modest revenue increase to $3,920 for the fiscal year ended June 30, 2024, compared to no revenue in the previous year. However, the company faced significant costs of goods sold amounting to $13,369, leading to a gross loss of $9,449. Operating expenses rose to $31,382 from $19,121, resulting in a net loss of $40,831, up from $19,121 the prior year. The company's current ratio decreased sharply from 972.26 to 17.03, indicating liquidity concerns. Total liabilities increased slightly to $232,445, with a stockholders' deficit of $471,962. The company continues to rely on loans from its president, Jian Li, totaling $228,933. Future growth hinges on a planned acquisition of FAMCe, a scrap metal recycling company, which could enhance its market position. However, substantial doubt exists regarding the company's ability to continue as a going concern due to ongoing losses and insufficient revenue generation. The lack of effective internal controls further complicates its financial condition.