10-Q - Hartford Creative Group, Inc. (0001482554) (Filer)

Mon, Dec 16, 9:31 PM (32 days ago)

Hartford Creative Group, Inc. (HFUS) reported a significant turnaround in its financial performance for the quarter ending October 31, 2024, generating revenue of $467,462, a notable increase from zero in the same period last year. This growth was attributed to its new focus on social media advertising services, launched in January 2024. The company's operating income reached $192,072, compared to a loss of $20,192 in Q4 2023. Net income was $127,269, reversing last year's loss of $25,456, indicating improved profit margins. However, HFUS faces challenges, including a working capital deficit of $3,482,524 and an accumulated deficit of $5,783,574, raising doubts about its ability to continue as a going concern. Cash flow from operations was positive at $348,049, but cash used in investing activities reached $675,826 due to short-term loans to unrelated parties. The company is actively seeking further financing and aims to enhance its advertising services amid market uncertainties. Future operations may be influenced by its evolving business model and the need for additional capital to sustain growth.