Fri, Sep 6, 1:04 PM (106 days ago)
Fuss Brands Corp. reported significant financial challenges for the third quarter ending July 31, 2024. The company generated no revenue, maintaining an accumulated deficit of $15,406,336 and negative working capital of $658,408. Operating expenses surged to $2,722,695 for the nine-month period, primarily due to administrative costs, resulting in a net loss of $2,726,490. The company's balance sheet shows total assets of $236,662 and liabilities of $895,070, indicating a precarious financial position. Cash flow remains a concern, with cash decreasing from $9,448 to $9,007. The company has deferred revenue of $176,658, linked to a luggage order valued at $925,000, suggesting potential future income. However, uncertainties persist regarding the ability to sustain operations without additional financing, as existing cash flow is insufficient. Management's focus includes exploring business combinations and potential acquisitions, though no discussions have been initiated. The company faces operational risks, including reliance on related-party loans and the absence of effective internal controls, which were noted as material weaknesses. The ongoing need for funding and the lack of revenue generation pose substantial risks to future operations.