Wed, Oct 2, 6:15 PM (79 days ago)
Tofla Megaline Inc. reported a revenue of $63,700 for the fiscal year ending July 31, 2024, a slight increase from $61,350 in 2023. However, operating expenses surged to $88,240 from $60,701, primarily due to increased general and administrative costs and higher server rental expenses, resulting in a net loss of $24,540 compared to a profit of $649 the previous year. As of July 31, 2024, the company had no cash on hand and negative working capital of $85,801, indicating liquidity challenges. Total assets increased to $101,611, driven by intangible assets, while total liabilities rose to $125,001, predominantly from related party loans. The company continues to rely on its CEO for financial support, with a consolidated loan agreement totaling $124,701. Tofla's market position remains precarious due to high competition in the software development sector and a lack of insurance coverage. The outlook is uncertain, contingent on revenue growth and securing additional financing. Internal control weaknesses raise concerns about financial reporting accuracy, necessitating improvements to ensure compliance and operational sustainability.