Tue, May 14, 3:32 PM (73 days ago)
SMC Entertainment, Inc.'s Form 10-Q for the quarter ended March 31, 2024, provides an overview of the company's financial performance and condition. Key points include: 1. **Financial Health**: The company reported total assets of $368,416, slightly down from $371,463 as of December 31, 2023. Current liabilities decreased from $3,700,524 to $3,464,864, resulting in a stockholders' deficit of $3,096,448. 2. **Revenue and Expenses**: No revenue was reported for the quarter. General and administrative expenses increased to $87,083 from $42,275 in the same period last year. Compensation expenses to related parties decreased to $117,800 from $144,350. 3. **Net Income**: The company posted a net income of $155,813, primarily due to a $376,447 gain from the change in fair value of derivatives, compared to a net loss of $430,907 in the prior year. 4. **Cash Flow**: Net cash used in operating activities was $13,001, slightly improved from $13,312 used in the prior period. Cash at the end of the period was $4,222. 5. **Convertible Notes**: The company has convertible notes, including accrued interest, totaling $1,337,002, and notes payable to related parties of $1,111,460. 6. **Going Concern**: The report expresses substantial doubt about the company's ability to continue as a going concern due to recurring losses and negative cash flows from operations. Overall, the financial condition remains challenging with a significant stockholders' deficit and ongoing liquidity concerns.