10-Q - Leet Technology Inc. (0001586495) (Filer)

Mon, May 20, 11:48 AM (200 days ago)

Leet Technology Inc.'s Q1 2024 10-Q report indicates significant financial challenges and operational updates. Key points include: 1. **Financial Health**: The company reported a net loss of $123,070 for Q1 2024, a reduction from $510,821 in Q1 2023. However, the working capital deficit increased to $4,050,064, and the accumulated deficit reached $12,548,928, raising substantial doubt about the company's ability to continue as a going concern. 2. **Revenue and Expenses**: Revenue surged to $196,653 from $49,260 year-over-year, primarily driven by a white label project with Smart Communications, Inc. Cost of revenue rose to $156,986, while general and administrative expenses decreased significantly to $168,471 from $375,330, contributing to the lower net loss. 3. **Cash Flow**: Cash used in operating activities was $330,168, with minimal cash used in investing activities and $347,515 provided by financing activities, mainly from advances from related parties. 4. **Liquidity**: Cash on hand was $18,847, insufficient to fund operations for the next twelve months without additional financing. The company is seeking further financial support but faces uncertainty in securing necessary funds. 5. **Related Party Transactions**: Significant transactions with related parties included consultancy fees, platform server rent, and network bandwidth expenses. 6. **Uncertainties**: The company faces political, economic, and exchange rate risks due to its operations in Malaysia and Bangladesh. Overall, while Leet Technology Inc. showed revenue improvement, its financial stability remains precarious, necessitating urgent financing to sustain operations.