Thu, Dec 12, 12:33 PM (67 days ago)
For the quarter ending October 31, 2024, Phoenix Plus Corp. (PXPC) reported a significant decline in revenue, generating $30,707 compared to $444,071 in the same quarter the previous year, primarily due to project delays and increased costs. The cost of revenue rose to $46,299, resulting in a gross loss of $15,592. General and administrative expenses increased to $113,781, contributing to a net loss of $96,200, up from $43,820 in Q4 2023. Cash and cash equivalents decreased to $337,394, with net cash used in operating activities of $80,854. The firm continues to face challenges with an accumulated deficit of $2,683,631, raising concerns about its ability to operate as a going concern. The company has no credit facilities and relies on shareholder support for future financing. Management has identified weaknesses in internal controls, which could impact financial reporting. The firm’s future operations may be influenced by ongoing legal proceedings and the need to stabilize its financial health amidst rising operational costs and decreasing revenues.