Wed, May 15, 9:08 PM (305 days ago)
HWH International Inc. reported a net loss of $1,336,519 for the quarter ended March 31, 2024, compared to a net income of $171,849 in the same period of 2023. The company's total revenue increased to $286,110 from $200,562, driven by higher food and beverage sales. However, the cost of revenue also rose, resulting in a gross profit of $163,297, up from $122,793. Operating expenses surged to $1,495,383 from $736,391, mainly due to increased general and administrative costs and professional fees associated with filings. The company's cash balance dropped significantly from $22,505,969 at the end of 2023 to $999,506 at the end of Q1 2024. Liabilities increased to $5,526,158, and total assets decreased to $2,558,159. The company believes it has sufficient cash and financing availability to fund operations for the next 12 months, despite the substantial cash outflow and increased liabilities. Significant activities included a merger with HWH Nevada, resulting in a recapitalization and changes in the fiscal year. The company also entered into various agreements, including a credit facility with Alset Inc. for up to $1,000,000 to support operations. Future operations will focus on expanding the Hapi Café business and implementing a new membership model, although uncertainties remain regarding the execution of these plans. The company is also addressing internal control weaknesses by planning to appoint additional qualified financial personnel.